saving is taking over at deutsche bank. he germans are going to meaningfully think about? or is this just another bank causing trouble? guest: it is good to see you getting excited about it. it is big news in germany but there are larger issues surrounding it. and larger issue surrounding the european banks. what we are seeing today is something to get excited about. the more important issue is the great outlook and the inflation outlook as well as the economic outlook. something we have seen in the last two and a half months where we have had a streak of macro activity. bank on,bably cannot european banks, cannot bank on quickly rising rates. qean aggressive exit from which introduces new challenges or new challenges relative to what the market was pricing three or four months ago. three or four months ago, we saw one year forward. -- one pricedhike 2019 butrch or june that has been taken out already. introducing new challenges that i think over the course of today, this ceo news may be dominating the headlines but over the

guy: i am here covering deutsche bank. sting time in cutting costs and refocusing the bank. i will speak to the cfo later in the day. lower,e bank is called cash trade less than 30 minutes away. ♪ matt: a stitch in time. deutsche

it is a step change for deutsche bank, definitely. s a clear signal that the bank is making farther progress on its promise to become more and as i said, he is the first german to lead the bank as co-ceo since the days more than a decade ago. he is a retail man. he is known to want to balance the bank. less retail business. he said in a message today that he is taking a deep look at the investment bank and wants to cut away those businesses that are unprofitable. francine: what do investors think? a new executive needs to complete the task that john cryan did by this much faster. steven: that is right. he has actually suggested that the strategy, strategic shift, they are asking for clarification, especially about the future strategy of the investment bank him about right now, his message today, he wants cost target ofhe costllion euros, adjusted in 2018. no matter what, that is really important to him. investors seem to give him the benefit of the doubt. the share price when up by almost as much as 5% this morning. it has come down a

this is deutsche bank lagging. u agree with that as a bold strategy option to right the ship and rewrite the stock? learn.ink deutsche can into a core- focus strength area, there's no reason why you can't be profitable. i think they should accept the u.s. has become a competitive market, ahead of the game. they can pay time the way you can't because of various reasons. the time has come to focus on what your identity is. a similar to what lawyers have been doing in the u.k. to focus on core strengths. the u.s. is not their strength. ahmed, chief investment strategist, staying with us. a lot more to talk about, including trade tensions and impact on the market. let's get the bloomberg business flash with juliette saly. bank'sr: deutsche supervisory board has named a new ceo to replace john cryan and need a wide overhaul of senior management. sewing, currently heading deep private and commercial arms, will take over immediately. reorganization, garth ritchie is promoted to soul head of the securities unit and will bec

of course this is the top job at deutsche bank i'm not sure if it's very any of you go one bearing in mind that in twenty sixteen it was considered the most dangerous bank in the world off the i.m.f. found a potential collapse of don't you posed a risk to the global financial system is it still in such a tough position. i think it's still to some extent it's a set a dangerous bank i think the current levels of capital are relatively thin also given a given stock price that we have and a couple increases is not really possible these days so i think the bank is still in a very vulnerable position and needs to return back to profitability and prove its performance such that at some point in time of a possible. account for the rez might might might be on the horizon or isis in a risky bank within capital a big task ahead of the c.e.o. sasha steffen at the frankfurt school of finance thank you german exports have posted the biggest monthly drop since twenty fifteen or february that's despite expectations that actually increase with the economy in good shape the federal system is office her

can deutsche bank stay in the u.s.? it compete with the likes of goldman sachs and morgan stanley here? hans-peter: that is a difficult because these banks make great profits in the united states because the competitive situation and united states is much more positive for these kind of banks. it is much easier for them to make profit. deutsche bank has not got a strong basis. it has not made a profit for three years now. the capital basis seems to be very weak. i have some doubt about the united states perspective for deutsche bank. on the other hand, it must stay the international bank of germany. it should not have links in the market market. it should be into the global capital market. vonnie: citigroup is saying today the new ceo but the same old problems. just because there is a new ceo, will that make it easier to come up with some kind of winning strategy or to implement that strategy, professor? hans-peter: it might because the people working at deutsche bank need some positivity. they need to have the feeling t

deutsche bank now -- down nearly 4%. ly reduced the workforce, goldman sachs just put out a week set of results. the bank is saying pay attention to that conference call and of course your in for an -- interview with the ceo. shell reporting earnings down 2%. this properseen from shell since oil was at $100 a barrel. traders are pointing to week cash flow -- weak cash flow. that could be why we see the stock under some pressure this morning. finally, nokia on the downs i've. -- downside. the company is seeing momentum, it is betting big on the 5g. it looks like this report shows a bit of a slump in demand at the moment. actually, i will pick it up there. let's talk about another one that was down today. covestro ceo preparing to ramp up investments. he wants to bolster -- bolster growth. he joins us from germany for his first interview of the day. thanks for joining us. it looks like your stock was rising pretty strong into the beginning of this year and then came down with the rest of the market in february amid volatili

bank is int deutsche the u.s. is largely an investment bank.ing what affect the u.s. business. -- would affect the u.s. business. david: daniel regli of mainfirst in zurich, thank you. today, we spoke with the home depot chairman and ceo. he shared his views on the benefits of tax reform. there are some highlights. standpoint, icut think we are just beginning to feel the benefit of that. i don't think that has started yet. i think overall, you are seeing wage growth around the country. it varies by market. i think tax cuts is a good thing for the u.s. consumer. the consumer has more money in their pocket. we believe that translates to positive for our business. they were talking about that for the last 10 minutes. congratulations for not mentioning that. something about a circus that happened. you have the trump administration wants 3% to 4% growth with these tax cuts. what kind of growth do you see going forward? >> we use gdp as the foundation base for our growth. that is projected to be 2.7% and then we look at the housing. that has been wor

plus, the future of deutsche bank. eing matt james to be replacing the ceo. will he be the man to fix germany's largest bank? good morning. i'm matt miller in berlin alongside guy johnson. guy: we have only four trading days this week in europe for the stoxx 600. it is up. today, it is softer, but nevertheless, on the weeks, trading higher. the two stocks leading this morning. we show you what is going on on the downside. it is largely that story that is dominating. , that is why we are seeing what we are seeing. the take away this morning is that the european stocks this week are higher, not lower, despite what we are seeing on the trade front. let's get a bloomberg first word news update. >> donald trump has said a deal in ae reached soon revamped nafta while playing down that the announcement of me take place next week. -- the announcement may take place next week. he may make the announcement at a summit next week. south korea's former president park geun-hye has been sentenced to 24 years in prison. the sentence ha

deutsche bank ceo john cry on is out. r tapping the head of the retail bank for the job. >>> sticking in germany, german exports fell 3.2% in february. that's the biggest drop in 2.5 years. novartis making a big bet on gene therapy acquiring avexis for $8.7 billion today

. ♪ talking about deutsche bank. ♪ francine: deutsche's is downsizing. haul of investment bank. we will speak to the chief financial officer shortly. draghi's test of faith. how confident is the central bank's president in the euro economy? investors like facebook again. is it too early to see the true impact of the data privacy scandal? good morning. this is "bloomberg surveillance." i am francine lacqua in london. tom keene is in new york. and a lot of the show will be , especially banks european ones and if they can compete with the wall street giants. a little bit of momentum is being gained by deutsche bank. a big overhaul as the new chief executive wants to make a play that there is a new man in charge and he is accelerating some of the retrenching from u.s. markets. the bloomberg news article on deutsche bank is stunning. i will say now that it is the end of an era. francine: it is. 11:30 a.m. london time we will bring you our interview with the deutsche bank chief financial officer. france's president believes that president trump will pull out of

time when investment banking businesses are picking up is this going to be the right focus for deutsche bank? the market is giving them the benefit of the doubt perhaps the market opportunity in europe and in the retail banking sector in europe is not there anymore. >> the questions that you ask are terrific ones. we won't know the answers until this all comes out in the wash in the fullness of time. it does raise issues as to what the next couple of quarters will look like for the bank i would imagine the phones are ringing off the hook at the financial head hunters around the city this morning. anybody who sat in the markets business is thinking if i'm going any way, i just need to start looking to my future here and i need to make my own arrangements perhaps i can ease back a gear or two on delivers for the bank. they talk about de-layering layers of management which will bring them a boost in terms of reducing costs, but the fact they talked about running down some of these other business lines, i think that means increasingly it will be difficult to believe they can profit from ongoing

meanwhile in london five traders from deutsche bank and british bank barclays take to the stand today in the first euro bore wreaking trial now hirable is the benchmark interest rate is set in brussels and banks charge it to each other to lend your ears the trade is a charge with manipulating that rate to their advantage at the height of the global financial crisis. the past is catching up to do it to bank again the german lender had hoped the euro bourses candle was over allegations of rigging the average interbank interest rate has already cost deutsche bank billions of dollars in penalties in the u.s. u.k. and in the e.u. in the last two years that some traders involved are going on trial is throwing the bank back into the spotlight deutsche bank is one of the banks that set the europe or rate that rate is calculated by the european money market institute in brussels twenty banks from all over europe send their daily interest rates to the e m m i the institute calculates the weighted average of these rates to produce euro bore this interbank lending rate applies to all european ban

britain, the royal bank of scotland, ba rclays, deutsche bank britain, the royal bank of scotlandshrink back to look at retail in country, but for deutsche bank that is difficult because retail in germany is mostly down to the other bank. its direction after the other bank. its direction after the crisis has been very difficult. it was a global big investment bank, wa nts to it was a global big investment bank, wants to shrink down, but it seems to be unclear where it wants to get to. he was brought in to execute the new strategy in 2015, there seems to have been a clash with the board, with the chairman in particular about the speed of execution, not the cerri the strategy, but deutsche bank itself seems to be riven by a few internal battles between trading, commercial banking, in retail banking, frankfurt versus london. all these things have bubbled up, the board has decided it needs a new personality top and they have gone for this new chief executive, who has a retail bank background, almost a life within deutsche bank itself. but it doesn't a nswer deutsche bank itself. but i

rumors become a reality deutsche bank would definitely become a big more deutsche again you know concentrating a bit more on the markets here in germany with its corporate customers with its private banking division and getting out of this business anglo-saxon business of investment banking that's also very expensive you have to pay those people a lot of money and that's been a problem recently for deutsche bank. they'll also be in new german operations boss the new c.e.o. will that make more german again and is that a good thing you think. well yes the name is frank. he will succeed kim hammond's you know that's the woman who called deutsche bank to be the most dysfunctional company she ever worked for frank now frank in germany he is close to christians even the new c.e.o. both have been working for deutsche bank for many decades and this is probably the qualification that counts more here than the german passports of both men. knew cuts will have to be implemented at deutsche bank new enormous changes in the i.t. division and it's probably a good idea to have people here in charge who know

at -- iam looking pulled up the screen of deutsche bank stock versus commerce bank stock.orange outperforming deutsche bank, which is return with invested dividends, it is negative 53%. is there still support of the shore hurlers -- shareholders of deutsche bank. is not entirely clear he does. i have heard from several investors that they still support him despite their unhappiness with how he handled the ouster of john cryan. they still support him, they do not want to see anymore turmoil at the top of deutsche bank. they want to see some calm returned to deutsche bank, so they will not start a rebellion. but they are dissatisfied. the share has not been a happy development for them. they have all lost money on deutsche bank. many of them have asked very critical questions recently, and i am sure they will continue to ask those questions if results do not finally start picking up. up inarth ritchie grew the cash equity business. what does it say that this is the business for the cuts given that he is now in charge of the whole operation? what does that indicate about the

deutsche bank is taking the reins of europe's investment bank after weeks of turmoil.hrough its current chaos? russian markets tumble after a new wave of u.s. sanctions leave the kremlin scrambling to help its tycoons. an exclusive interview with another finance minister. his views on the future of europe. have a look at what is happening to european equities right now. we will get to the chart. mixed fair for europe. we

alix: that was the deutsche bank cfo speaking to guy johnson. is allison williams, who covers all banking for bloomberg intelligence, a senior banking analysts. from frankfurt is david kohl. start withwant to you. i feel at the conversation is, who is going to be left for investment banking in europe? >> if you look at the announcement by deutsche bank today, i would say it was more of a pivot than a change. they said they want asset management, the retail is nice, and banking -- business, and banking to be about 65% of revenue by 2021. 2017. basically 63% in first quarter was 59%, that there is a seasonal trend. we're talking about the ib going from 37 to 35. alix: why don't markets see it like that? one of which is the investment bank and how big deutsche bank has become has been a big question mark over time, especially since the crisis. they were one of the foreign banks that came into the u.s. a made a lot of progress, but since the crisis come a when we started to see differentiation in terms of capital strength, u.s. bank scout their prob

deutsche bank could make big cuts to its u.s. equities business. to be in? aogle spending soars without solid payoff. david: i'm david westin with alix steel. in washington the president of france is visiting president trump. yesterday we had a really big event. alix: they planted a tree. thank goodness they planted that treat. jobd: they do a very good with those shovels. if you watch it long enough afterwards they try to pose for photos and the president realizes the tree is between him and the camera. alix: they should have their marks and where they are supposed to stand. they need you. you are a theater director. alix:

and that means he'll have to untangle his predecessor's mistakes most experts think that means deutsche bank will be returning to its roots in the traditional banking sector let's see what hans capable of things are banking at analyst at the university of whole time investors have welcomed the arrival of this new c.e.o. shares rallying as i pointed out but you celebrated. well not really but i want to give new people a fair chance and i think you will have a fair chance he's got to condition to get deutsche bank moving now as a worst hopefully is over. so with his fair chance there's a real good perspective that dr bank will at least have a profit not a big profit but a profits as you know is that all you're giving him a fair chance i mean do you really think he can do it or do what crying couldn't cry and did manage to make the lender profitable me again but he did manage to one tie in tangled doj of firms to make extremely naughty legal situations well that's what it is it has got to go to its merits although maybe people will accept it's only later at the moment they're mainly negative ab

christiane's even has seen the dire strait of germany's largest bank from the inside deutsche bank's w c.e.o. started out as a financial advisor at one of its branches since then he's climbed the ranks to join the board of directors so he knows what he's getting into georgia bank had hoped to make a name for itself in investment banking but the reality turned out quite different in securities trading the bank is still a straggler its investment bankers contribute too little to the bottom line while soaking up billions in bonuses each year but they've cost the bank a fortune in fines and penalties over the years and us president donald trump's tax reform will likely cost billions. and that's why a bank is in a permanent state of crisis it's been hemorrhaging money for the past three years stanching those losses as christiane's even as top priority and that means he'll have to untangle he's previous answers mistakes. and we can bring in steffen now from the frankfurt school of finance to talk to stephan di going to seen three top leader ship appointments in six years amid pressure from

deutsche bank has named christian as the new ceo. e veteran replaces john cryan who relieved -- who leaves the bank after three years in charge. su keenan has more. amidstllenge to the ceo of this huge management shakeup for deutsche bank. su: the future of germany's biggest lender is at stake, and there was pressure on the top to make a change. the supervisory board met in the most recent hours and decided it is christian, a lifetime career executive at deutsche bank. began as an apprentice come a work his way up to coed of investment banks, and he becomes ceo immediately. the former ceo john cryan, removed after three years at the top, amid mounting concerns about the future direction of the bank. there have been a number of challenges facing him. john cryan was charged with a turnaround that has had increasing crosswinds. the stock year to date is down 28%. it depends in large part on trading revenue which has been under enormous pressure, and 2015, since then there has been a significant drop in trading revenue. that has increased

that is something that deutsche bank is lacking. able alternative business to the investment banking business. for credit suisse, clearly there been helped by this but also importantly by the rundown in the strategic resolution unit which is a non-call unit. 30%ax losses, they're still of group pretax profit. it is still a significant drag but it is this menacing desperate it is diminishing. guy: as well as the crawlspace. tidjane thiam came in and said we need to deal with this. you got to take a step back and look at where they came from. arjun: we have seen that in an banks.or a number of the reason there been them to cut costs is very impressive. guy: tomorrow, we are going to talk to the deutsche cfo. i'm curious to know -- we are in a situation where the numbers are going to be a sideshow. what is this bank going to be? ubs make vivid. cs is making a pivot. it seems to be working. what is the pivot at deutsche bank? arjun: that is a very good question. they are struggling to find an answer to that. they don't have a big attract

and that means he'll have to untangle his predecessor's mistakes most experts think that means deutsche bank will be returning to its roots in the traditional banking sector. let's go of the daniel franco correspondent to talk about this daniel we've been talking about cried for years and how he needed more time he obviously brand out of that but was it mission impossible for the c.e.o. . oban one crime came he was hired to reform and to restructure and i guess and that's also what analysts are telling me in many ways he did implemented reforms at germany's biggest lender when you talk about the integration of the pos bank for example and he also did many very unpopular reforms of the local branches them at the end i feel his biggest problem was most likely paul light that he's the chairman of the supervisory board both had big arguments what would be the next steps and when the first news was breaking that i was already looking for a new c.e.o. investors here at the stock market were sure that it would be a just a matter of days until a crime would be packing his suit cases here in frankfur

if you want to hear it about the change of the boss at the deutsche bank, lots more details on oui’ deutschee. a fall afall in a fall in police numbers has likely linked to increases in crime, according to a home office and. the home office says it won't comment, and will set out measures to tackle crime later. jessica parker has more details. a boy goes out to sell drugs in derbyshire. gangs get young, vulnerable people to traffic drugs out of the cities to sell in the counties using dedicated mobile phones known as lions, it leads to explication and violent. after falling out with the gang, the body alongside his girlfriend is chased by gang members. he escapes. a police investigation seized nearly two d oze n police investigation seized nearly two dozen people sentenced. the network was designed to protect those higher up in the chain. the organised crime group individuals hold none of the risk. they are not going out and dealing drugs, not having to interact with other dealers and they haven't got drugs on their person. government has announced a creation of a new centre to co—ordinate a

jim, what is your view on deutsche bank and german bank in general and how they kind of the fit intouropean banking picture? >> i think the thing i would add to his comments about the succession of deutsche bank would be the ideal new person would also be some sort of a change agent. why do i say that? if i look at the period when deutsche bank was doing particularly well in market share terms, they were very aggressive. they were aggressive on trading, they were aggressive on the investment banking products they were offering. aggressive quite highly leveraged. secondly, if a look at european banks in general and deutsche bank by extinct -- extension, they are not well capitalized. the low performing loans were not dealt with after the crisis. i would think that the new chief executive, if there is a new one at deutsche bank, will have to look very carefully at how to shrink some activities, notably in the aggressive in. they don't really need to compete with goldman, they need to be much more satisfying their base in germany. also to look at the capital situation. there is going to

the other one was deutsche bank.ou covered this in the finance section. >> the deutsche bank story has been one of the wall street stories to kick around. it is a story of a company that tried to get really big. it was intended to be a european version of goldman sachs. ever since the financial crisis, it has been receiving. the latest news came out last weekend. it was about the board reconsidering its ceo. and potentially replacing john cryan, which happened. our story picked that up, taylor: they focused on the new ceo who has grown in the ranks. >> he is a homegrown guy. it could not get more local than this. there is reporting about people internally. it is an interesting choice. deutsche bank has always been hamstrung on this need to have a german ceo, or someone who could speak german. it feels like there are boxes that have to be checked, and this guy checked all of them. maybe it wasn't the best, but it is the next step. carol: it is interesting. the company has gone through a lot. a revolving door. the ques

deutsche bank is in a permanent state of crisis under korean's tenure the banks struggle to contain itsses cutting those losses is kristan savings top priority now and that means he'll have to untangle his predecessors mistakes most experts think that means deutsche bank will be returning to its roots in the traditional banking sector. and our financial correspondent is at the door to bank headquarters for us in frankfurt today daniel and the man at the top job effective immediately was the market reaction. now you might be surprised when you have a closer look at your trading av a big plus this morning all for percentage of buying among the top performers in the blue chip index tax and this certainly has not been the case in the past just during the last one year the share price of dogs has tumbled by more than twenty five percent and within the last three years and even went down more than sixty percent it seems that investors are optimistic that dodge of buying might be again on the right track so they like the sound of the new c.e.o. but he has not done anything yet so what's his fi

deutsche bank is in a permanent state of crisis under koreans tenure the bank struggle to contain its losses cutting those losses is kristan the savings top priority now and that means he'll have to untangle his predecessors mistakes most experts think that means deutsche bank will be returning to its roots in the traditional banking sector. well financial correspondent daniel cope is then frankfurt at the frankfurt souci exchange good to see you daniel so we've got a new man in the top job at deutsche bank effective immediately is he telling investors there with confidence and reza seem to appreciate that at least something is now going to change as a daughter of bank shares of georgia bank have been one of the strongest performers here at the blue chip index starts with right now plus off about two percent or even a class of two percent and it's not that much when you compare this to other companies it is a lot for a daughter bond because when we look at the share price of daughter buying this year it went down by almost twenty six percent in the last year almost sixty one per cent

deutsche bank is in a permanent state of crisis. der cryan's tenure, the bank struggle to maintain its losses. cutting losses is the new top priority and that means you have to untangle his predecessor's mistakes. most experts think that means deutsche bank will be returning to its roots in the traditional banking sector. traveling to turkey is quite a good deal these days. the exchange rate of the turkish lira is hitting all-time lows in advance of new stimulus measures. this monday, a euro was worth more than five liras for the first time in history, despite a strong turkish economy. rates rivaled those in china. the most recent gdp figure was a whopping 7.4%. but experts warn two credits could lead to an overheated economy. president at ondwdwan is pumping money into the programs. turkey is at risk of a recession. sanctions'imposed by the u.s. government to vladimir putins buses circle and their companies are hitting some of the country's private businesses. the latest round of sanctions are related to charges of russian meddling

when you look at deutsche bank and the product they delivered, they're a bank from basel 2, and they have to move on, which they have not done yet. i don't think they're like the rest of the european investment banks. >> clearly they're trading at a deep discount relative to their counterpart, but at the same time will investors buy into that story is it an attractive proposition for deutsche bank to go back and be more of a retail bank and a german investment bank >> it's a big move they tack about integrating deutsche bank bank, but that's been on the table for five years basically. it's not a question of strategic plans, but executing it properly for now it's an open question. deutsche bank is cheap, but profitability is week. they have a long restructuring process. it might be an attractive proposition, but the cycle will change maybe at that point regulation will have slightly changed and made it more attractive in terms of return equity >> can i ask you what your top picks are? we've seen a growth in the eurozone it's pretty broad, despite what mr. draghi was saying yesterday t

of deutsche bank. the investment banking has been a cash cow for a long time not in the real recent years but for a long time for those about is it conceivable do you think that gets out of investment banking altogether. not altogether this would sort of change the whole business model of deutsche bank but this is if those rumors become a reality deutsche bank would definitely become a big more deutsche again you know concentrating a bit more on the markets here in germany with its corporate customers with its private banking division and getting out of this business this anglo-saxon business of investment banking that's also very expensive you have to pay those people a lot of money and that's been a problem recently for deutsche bank. they'll also be in new german operations boss the new c.e.o. will that make more german again and is that a good thing you think. well yes the name is frank. he will succeed kim hammond's you know that's the woman who called deutsche bank to be the most dysfunctional com

deutsche bank is giving up its be ation -- ambition to top global securities firm . and barking on what may be the most sweeping overhaul. spokehe bank ceo about how the firm will look at the completion of its restructuring. is not that significant of shift in terms of strategy for the company. corporate lead, global investment bank with global reach. there is this three scaling of our inventions, particularly internationally. aling of oura resc ambitions. this is particularly internationally. >> let's focus on the u.s. for a moment. u.s. business look like after this restructuring? >> obviously, smaller. we have an inefficient use of the balance sheet and some of our business in the u.s. the starting point is to reduce that leverage exposure. others strategic discipline here is making sure that when we and activity in the u.s., it has to have some connection with the unique selling with this company. their activities in the u.s. outside of that perimeter, that is where we would take it back. preciset want to be too about what that means, but there is some obvious can

bank. carol: there was a great headline, more deutsche, less bank.laughter] >> and it's going to be a really boring bank. [laughter] across the financial landscape, that is the take away that is happening. it is what the future of banking looks like. only this version is like almost especially born. [laughter] taylor: you mentioned takeaways. i am wondering what they can learn from other european lenders? you talked about ubs which has focused on their wealth management unit. what is deutsche bank's strategy? >> credit suisse is another one. so, all of these choices are really meta-strategy choices. where are we going to go? where can we find stability and return on investments that can stabilize our business going forward? and deutsche bank has had some acquisitions that they made that they have to wrestle with. and it sees its domestic market being the strongest place to grow from. and that growth is small. carol: more deutsche. taylor: what is not small is instagram. we heard from mark zuckerberg on capitol hill this week. walk us through instagra

let's talk deutsche bank. they have told us their profits have dipped 79%. is going wrong? they have been cutting bank on the number of staff and trying to turn the ship. many people are reporting record profits. that is a huge difference. they are not making as much money with savings and deposits as us banks would be. they have rising interest rates in the us. it also seems that some of the offering that deutsche bank has is just not fit exactly for what the market needs. they want to scale back their investments, scaleback bonds and focus on german corporate and corporate banking which used to be one of their historic strengths before they embarked on this expansion mission. let's move on and talk about our final story in the sun. i'm sure it is close to your heart as a german. wembley. the scene of so many great victories. apparently, there is a lot of fury. selling wembley stadium to the owner shahid khan. i'm sure you care. to be honest, i'm not really a football fan but i have been to wembley stadium. england against lithuania. that was an english vict

deutsche bank is one of the lenders. es,at banks there seems to be a lot of our appetite toa lot of do this deal. 8 billion is not a small amount when it comes to any kind of loan. mark: thank you. up, the latest on cvs, viacom -- cbs viacom. vonnie: time for the bloomberg quick take. in south africa the new president has rekindled hopes in the country by cleaning house. foreign investors have piled into the country. whole show the fortunes are looking up ahead of the national elections. toer taking office he began crack down on corruption. it could take years to undo jacob zuma's legacy. unemployment will likely stay high. it leaves millions without marketable skills. they are also working to calm investors rattled by the decision to allow land grabs without compensation. majority in every election since the end of apartheid. his allies dominated the top leadership. support slip to an all-time low. voters ventured their anger on corruption and unemployment. pressured zuma to resign in february. there are some simple step

cheryl: coming up, deutsche bank has a new ceo but can he turn the biggest bank around?fbi agent] you're a brave man, mr. stevens. your testimony will save lives. mr. stevens? this is your new name. this is your new house. and a perfectly inconspicuous suv. you must become invisible. [hero] i'll take my chances. cheryl: european traders looking at a possible u.s. retaliation against syria for a suspected chemical attack against its own people that happened over the weekend. peter dixon at commerce bank joins us now. what are their reaction from traders bear about the escalation if you will between the u.s. and syria? >> you know, we've been here before and generally markets tend to be viewed as something which has been a sideshow to be honest. quite a big deal politically for those involved. the thing to watch is the barometer for middle eastern issues and over the course of the last couple days, at the end of last week. lauren: you know peter, look at deutsche bank shares here up about 5% this morning. some changes going on at the top. what do you make of him being out

deutsche bank is in a permanent state of crisis under cry and ten year the bank struggled to containits losses cutting those losses is christian savings top priority and that means he'll have to untangle his predecessor's mistakes most experts think that means deutsche bank will be returning to its roots in the traditional banking sector are you didn't monday night's bundesliga match leipzig locked horns with labor who isn't only separated by a point in the standings both clubs currently qualify for europe but both are keen to climb to the top of it the champions league next season it was a four goal thriller the last time these two faced off let's see if tonight's clash was just as exciting. leipzig drew first blood with their fearsome attack marcel beats or firing in a rocket in the seventeenth minutes. leverkusen keeper banjul a no no match for this one. but just before half time laver cousins chi habits netted a beauty of his own to level the score at one all leon bailey with the assist and a fine finish from have it. and soon after the restart leverkusen struck again you only ha

deutsche bank is in a permanent state of crisis under cry and ten year the bank struggled to containits losses cutting those losses is christian savings top priority and that means he'll have to untangle his predecessor's mistakes most experts think that means deutsche bank will be returning to its roots in the traditional banking sector which night police in germany say that three people are still in critical condition after saturday's deadly van attack in the western city of munster investigators say the driver did not have a permit for the gun which he used to kill himself at the driving into a crowd outside a bar in the old town two people were killed dozens more injured police say the forty eight year old attacker appears to have had mental health problems. all right in sunday's buddhist league action a dortmund take on stuttgart looking for redemption after losing six no to buy in munich last weekend but as for that he said later they hadn't expected to win in munich anyway so i don't mean went into yesterday's game home game against a gut feeling confident despite the fact tha

the new ceo of deutsche bank says the bank needs the help of u.s. clients internationally.ents abroad. gone all green. the company says all of its sites worldwide are being powered by clean energy from data centers to retail stores. apple has renewable energy plants around the world. 15 more being built. look at single best chart right now. we're going to look at the dow in the moment -- in a moment. colleaguet as if his briefed the cbo yesterday. this is the backdrop to your work. this is not infirm payrolls back 30 years and it's an extraordinary statement by cbo. here's the average before the crisis. theme isartners major the struggle of the animal spirit. of nominal gdp. folding your market study out two years, three years, four years with the idea that cbo says job formation is going to not be there. our earnings going to be there? interesting thing about what we are looking at is we are much less concerned with what the fundamentals and the backdrop is saying and more concerned with how price reacts to that and i think we are seeing that now. earnings are still pretty

great story on such a big day for deutsche bank. what have you uncovered? t and as you pointed said earlier in the day, they will pull back from parts of the corporate investment bank, and that will focus to a large extent on the u.s., and what we is is a first indication on how big that richard will be apparent so, sources say they will let go of more than 10% of the workforce, and that will affect whether 1000 people, so we are looking at that scale. we may find out at a later point that it is even bigger. vonnie: where will they come from, these playoffs, and how much bigger than a typical layoff with this be? steven: these layoffs will focus on equities, corporate finance, and they also said they are looking at u.s. rates. they will not focus so much on real estate lending. we obtained a memo from the head of the investment bank, who has singled out various parts of the investment bank, ones he wants to put more money into, and lending is one of them. fx is another one. they will be exempt. it does look like a bigger call then it usually undertakes. we r

directionless deutsche bank. deutsche bank could make big cuts to its u.s., raising the question, what businesses does the german bank want to be in. david: welcomes a bloomberg daybreak. welcome toto 2 -- bloomberg daybreak. there is a state dinner, the first ever. we now have the menu. they are going to serve french food. they say it comes from new orleans and is kind of cajun style but has a lot of french words in it. i am told it is based on new orleans. alix: i did make my first creme brulee this weekend. it was not very good necessarily. i had my own little blowtorch. david: something else happening before the state dinner, a joint news conference for the presidents of france and the united states at 11:45 this morning. alix: two things moving the equity markets. killer earnings out of the industrials and you wind up having 10 year yields backing up off of that 10% level. the dollar a little bit softer on the day. a german read, a little weaker as well. the euro seems to be responding to those rollovers in european data. levels, still the level to watc

this is deutsche bank now.utsche bank is one of the banks that will be reporting. we have talked about the different banks that have reported so far really coming in strong with cost-cutting and trading revenue. deutsche bank will be of particular interest because they have had the recent change at the top, and their u.s. strategy will be in focus. look at the other companies that are reporting. oil companies are first among the area of focus, shell chevron, and if we go into the recent chart of oil year to date, you can see the trajectory where we are at the highest level of oil prices that we have seen. there should be a chart there possibly. you can see why with oil coming close to $70, there is talk of $80, a lot of rush into oil. a lot of focus on what the ceo's of the companies are seeing in terms of profits ahead. yvonne: and we are also about to hear from more banks and companies, coca-cola and starbucks which has been in the news. both of these have struggled when it comes to turnaround plans. su: yeah

they are very focused on it. -- i was you surprised just talking to matt about deutsche bank. ny called and it was clear that the whole replacement process -- i am not asking you to comment on deutsche, was disorderly. would you say this was disorderly as well question mark ell?oes not -- w it doesn't do the best for german business is being smooth and ordered when it comes to the process of replacing executives a lot of good, does it, when you see to executives replaced in such a manner? it seems disorderly per what do you think of the process? i think the folks clearly need someone to step up right away. volkswagen is not a company in crisis mode anymore. mr. miller has done a fantastic job getting volkswagen through these difficult times. as i said earlier, this is a management session that would have been on the cart in the next two or three years anyway. the fact that it is accelerated in might happen this week, i think takes away from the uncertainty. this is not really disorderly and not disruptive. an outperform rating. 12 month price targets to 10 10os, is that right q

go to deutsche bank. you have a report about how donald trump was ready to fire bob mueller because he had heard reports that mueller was going to investigate his holdings and his actions in deutsche bank. and it wasn't until his aides said well wait, that's false, he's not going to deutsche bank yet that donald trump relented and decided not to fire bob mueller. any idea, any reporting on what activity donald trump engaged in, with deutsche bank that is so horrific that it would make him risk his presidency? to try to stop law enforcement authorities from finding out exactly what he did wrong in dealing with deutsche bank? >> deutsche bank, we haven't had a lot of insight, in part because congress has not been willing to subpoena deutsche bank for records that they have. that's one of the things that -- >> why not? >> because it's a republican-controlled congress and i don't think they're willing to push that far. that's something that i think if you saw a change in you know, the democrats came into powe

meaning, deutsche bank is strong on global cash management. . nt banking equity, m&a from the u.s. because you cannot compete with profit.al he makes price the net profit year of markets today. the fact that you think you so, what iain -- think, it will convince me if the significant shrink costs the investment banks and we will refocus on the core business, which has nothing to do with u.s. investment banking. footage is your favorite stock right now? we own jpmorgan and yesterday you said they could grow regardless of the economic activity. when it was the $40 target price around $100, we still own it. milbank in the world actually has the numbers, not even ubs. so, it's the highest quality earnings you could find today. he will continue elsewhere on our london disk. c capitalith rb markets. let me show you the bank of america chart. down we go, under 11-y euros. there was a jump back and pulled back today. we will do it right on bloomberg surveillance. there are those who panic when the market moves forward. us, you you are like can focus on a

i think that is an indication of the ongoing turmoil within deutsche bank in terms of what is the beste next. maybe compete more in the u.s. or refocus back on banking in europe. having and, meissner corporate investing banking for aound, zames is known jamiesor possibly for dimon at j.p. morgan chase, but that obviously did not pan out. as you said, they are very different potential candidates in their background. alix: that is what we heard earlier from michael haefele. here's what he said to bloomberg. >> investors need to decide what kind of bank they want. so far what i can see is still split views. i think that is the position of john cryan, who was to significantly reduce the size of investment banks in the u.s., and probably the view of the chairman who wants to keep presence there. that deutsche bank to get out of the u.s. altogether. iporter: one of the questions had is what is the digital fallout of this going on for a long time. you are almost hoping some of this news is leaking out in terms of the potential candidates, but that they are really close because for employees a