banking at deutsche is tied to investment is inadequate. we need to see more adaptation of strategy. when you look around europe, do you see another bank that maybe has the right kind of ?rofile some of the french banks maybe? guy: deutsche bank has no strong business competitor their counterparts. perspective, there is no strong revenue base to stabilize investment bank area ingo: we have to admit -- bank. ingo: we have to admit that deutsche bank is a specific animal and the changes the past have not been enough. we have to a the strategy now. now is the time. adapt the strategy now. now is the time. guy: what happens in the doesn't happen now? -- happens if it doesn't happen now? admitfirst we have to what would wrong 20 years ago and two years ago. it depends on interest-rate level, it depends on the and ifnt of the market , the economy.mple it depends what business they are in and if they cut costs. the big problem is in the past year they haven't done enough and they weren't able to build up enough capital in the balance sheet. you hav

what kind of role can deutsche bank play? y would like to see the banks being stronger, healthier, and more competitive. i do not think there is too much appetite for banks to be getting much bigger, because two weak banks does not make a strong bank. it is a combination on the firms need to be stronger but they have to be the right conditions. guy: if there is a refocusing on europe by deutsche bank, what kind of bank does deutsche bank need to be? elisa: they want to focus on europe and that does make some sense. it is difficult to compete with the u.s. and that they operate with an environment -- in that they operate with an environment that is more regulatory friendly. it will be helpful to europe to have strong european banks that can help that process happen and loansompanies use fewer and turn to security markets to fund their businesses. tight -- and that i want to ask about the german economy -- how tight is deutsche bank to the german economy? is it a champion or do they need good exporters? elisa: they are tight wit

able to show that he has what it takes to be able to take the tough decisions needed to steer deutsche bank a back to profitability as such dortch of bank shares jumped on the news although they've since gone back down but how they really feel about this move will be made plain tomorrow during that shareholders meeting that you mentioned for now it's worth bearing in mind that one of the key reasons that his predecessor john cry and had to go last month was because shareholders were dissatisfied at the pace and the depth of the restructure i made three last banking years for deutsche bank so in the last years

the markets suggest it's deutsche bank specific i obviously don't know anything about deutsche bank'ses book but if it is set up to be short volatility, the longer it goes higher, the worse this is going to do. they could be as profitable as they want, this has everything to do with their derivatives book. >> the derivatives book is the one part that's still very attractive that i think other investment banks, if it's plausible to chop up parts of it, would like to try and pick up because it still drives a huge amount of volume and market share for them in terms of systemic risk, italy was the issue this week. if you look at european banks week to date, they have recovered far less than u.s. banks. so people are saying it doesn't affect u.s. banks so much. european banks are still a question mark. >>> more pain ahead for troubled deutsche bank. mike, what did you see >> we saw ten times the average daily put volume today most of that activity was concentrated in the august 7 puts over 11,000 traded, including a block of 10,000 purchased for 14 cents. so that seems to be a disaster pro

deutsche bank is a problem bank. i think it needs to shrink dramatically.- the people reading these stories on the bloomberg are fascinated by this. it is amazing to see how much interest there is in this story. does the market care what mr. eisman has to say? are there any surprises in this? >> i would not say there are surprises. he does say he thinks the bank needs to raise capital next year. that would be a big surprise.the bank does not have plans that i know about. this is someone who has spent his money on sinking deutsche bank share prices. does the market care? the market will open soon, we will find out. he is a famous person and if he talks about deutsche bank, people will listen to him. guy: briefly, they seem to be making comments on asia. is that a surprise? >> not really. ceo says they want to remain strong in asia. it is not really a surprise, but it is an indication that he, the ceo, is traveling the globe to let the staff and clients know that deutsche bank will still be there because they are locked in a restructuring program once again,

it's on shuffle one thing that most people can agree with is that something needs to change at deutsche bank as most bang for i need a bank that is competitive on both a national and international level and that's not the case now. the moment. for our cause is simply too high they need to go down dortch a bank has lost its edge in recent here is an issue its c.e.o. is determined to address your muscle is going to shift the balance in our business so that our results fluctuate less this is the only way we will be able to sustain profitability and build on our strengths and what else i ignore cuffed. bot. after three consecutive years of losses the new boss is intent on shaking things up he wants to focus on the german market coupling innovation with old fashioned banking. but our correspondent covering the story for us at headquarters in fine. speech went down the stuff and. he's it reiterated basically these announced plans to cut more than seven thousand seven thousand jobs in order to bring costs down he's advocated a return to boring for the bank which is quite normally an unusual name fo

definitely deutsche bank is number one >> let's talk about it the deutsche bank is not the local bankdoor this was the biggest bank in europe their obligations are massive. that stock chart looks like a bad internet stock from 1999 what is going to be the ultimate outcome of deutsche bank this is a huge story >> above all, as a former lehman trader, i wrote the lehman book, "colossal failure of common sense" i spent a lot of time on this subject what equity investors have to realize, when they see a stock like deutsche bank, only 25 billion of equity, but the balance sheet is 1.7 trillion. 1.7 trillion with only 25 billion of equity. >> that's why we're talking about it and wanted you on >> so much debt relative to the equity the equity is an after thought the thinking is they'll wipe out the du the -- angela merkel, in her view at some point they could wipe out the equity, then rebuild the bank from a debt perspective. that would obviously create side effects around the world where people think who's next. >> let me ask you a difficult question i want to be careful asking you this be

think the broader question for the market is we really need some clarity on the way forward at deutsche bank maybe we will get it at this meeting. but the bigger question, really, is what is the end game here what kind of bank does deutsche bank want to be after this turnaround is complete i had an interesting conversation earlier today with annette on european "squawk box" and i raised the question of the derivatives that runs into the trillions of dollars i was wondering if it was still a story now. annette said a lot of these legacy issues have not been fully laid to rest that's an issue when you dom forensically examining this company and asking the question whether it is worth the sum of its parts and the share price. we may possibly see a further re-rating because something of an existential crisis going on here >> the new management, the direction they take will be crucial to the investment case going forward. we're getting some lines from the chairman saying u.s. banker, john thain has agreed to head a new strategy committee on the bank's supervisory board and the bank's chairman say

deutsche bank is slashing over 7000 jobs, part of an overhaul with the new ceo. and here is why. 2012, deutsche was the world's second-largest investment bank. since then, it has slipped to number eight. credit suisse from switzerland and barclays from britain, a steep decline in revenue, falling from $33 billion to -- 33 billion euros to 26.4 billion euros. they are directing their anger against the supervisory board chief, in the position since 2012 and accused of steering the bank in the wrong direction. the new ceo's plan to cut jobs isn't saving the bank any money. deutsche bank stock prices has fallen to its lowest rate in months, and it is not just investors who are not happy. reporter: they came to express contempt for deutsche bank, protesters at the shareholder meeting see germany's largest lender is an example of everything wrong with the financial world. the announcement of more than 7000 job cuts comes weeks after the bank reported -- the bank appointed a new boss. >> the current results leave us no other choice. we need to set in place conditions in order to sustain

onht now, i want to focus deutsche bank because of that bank may deepen its u.s. job cuts.tter say headcounts could be slashed by a fifth or 20% in the u.s. toomberg reported last month cover 20%. there are no such plans. right now, i want to go to stephen and get the story. he covers deutsche bank for us in frankfurt. they essentially denying that they are planning on cutting headcount by 10 or 20% in the u.s.? the spokesman certainly denied that there are any such plans. the we are seeing is that cuts could ultimately lead to a reduction in the workforce of 20%. we're not saying that the targeted cut his by 20%, but the bank is going through all the units they are going to cut grade and is applying a each of those units. a reduction could lead to one in five people in the u.s.. there are a lot of unknowns us ronnie deutsche bank and a lot of those are effecting people who actually work at the business. seeing a trickle of high-profile names departing a business. how significant is this? that seems to be the case. month new ceo said last was announced a restructuring of th

bank. of course the big knock on deutsche as opposed to some of the swiss banks, not huge in wealth managementnot stable businesses there. >> mike, the other problem we had in 2016 when deutsche went below $10 coco bonds, what they had to issue back after the crisis are you hearing anybody worried about that, have you to short the stock to hedge the bond. >> i haven't heard that being a theme this time around maybe it's not that much of an issue. maybe they had the near beth experience with them and kind of got through it i don't know what we're talking about in terms of capital raise or anything else if you read research on deutsche bank, you talk about low single digits return on tangible equity next year. it's really not operating at a level that's earning its cost to capital. i don't know exactly how dramatic tomorrow's news has to be to change the story. >> this new ceo has got his work cut out for him. that's for sure. >> the bar is low, if you think about it. >> that's true >> here is what i think about european banks that under performed. eufn, underperformed 1700 basis points year ove

well this is the essential question right i mean deutsche bank is clearly stepping away from its globalistmbitions because it has to but at the same time it can't make any kind of claim of regional dominance either there are enough european banks that are able to service german wilton nationals and they're probably a safer bet than deutsche bank when it comes to corporate services or investment banking now i was actually talking to someone who worked at deutsche bank earlier today and he said that the mood there is very grim not just because of the job cuts but because of skepticism at the strategy they know that deutsche bank has slept through important industry developments that would have given them a fighting chance against other banks today the i.t. infrastructure is apparently terrible and we can't forget that the banking industry especially is seeing so much change due to digital video tell ization and automation so they're wondering how deutsche bank could possibly compete this is going to be important to german multinationals as well as they play catch up themselves now reports of

more problems for deutsche bank. the german lenders business was put on a u.s. st of problem banks. deutsche bank has been added to a group of troubled banks monitored i the federal -- monitored by the fdic. supporting the federal reserve's plan for gradual interest hike. taking a look at consumer spending, it rose in april by the most in five months. it was up .6%. the fed's prefer on inflation gauge how the central bank's target. it rose 2% from a year ago. global news more than 24 hours -- global news 24 hours a day. this is bloomberg. vonnie: lots more ahead on bloomberg. next come the latest on the political turmoil in spain. conservatives say the party will back a note confidence motion -- no-confidence motion that could spell the end of rajoy's leadership. at the top of the hour we will be talking the trade, budgets, and daca. later on we have a nice was an interview with federal bank president jim bullard. this is bloomberg. ♪ ♪ vonnie: live from new york i am vonnie quinn. mark: live from london i am mark barton. let's get to italy. bonds rising for a se

germany's that leading lender deutsche bank is slashing over seven thousand jobs it's part of an overhaul under new c.e.o. christian saving his wife back in two thousand and twelve was the world's second largest investment bank but since then it slipped all the way down to number eight that's coming after the u.s. banks credit suisse from switzerland and britain's barclays there's been a steep decline in revenue to fall in from over thirty three billion down to twenty six point four billion euros what i now wonder shareholders are up in arms many are directing their anger at supervisory board chief. he's been in the positions and twenty twelve and is accused of steering the bank in the wrong direction bought christians savings plan to cut jobs isn't saving the bank any money as share price for ling on wednesday to its lowest in seventeen months and it's not just the investors who are unhappy. they came to express their contempt for deutsche bank protesters who gathered outside the annual shareholders meeting in front foot to see germany's largest lender as an example of everything that's

deutsche bank is a problem bank. the uae energy minister has said opec has enough spare production capacity to cushion the oil markets should the u.s. reimpose sanctions on iran. bloombergsident told three big producers can offer an adequate buffer, adding that the cartel has dealt with similar situations in the past. >> we've been there before and i tonk opec has been resilient deal with that in the past. some of the member countries have definitely a spare capacity that can be used when required. taylor: the ceo of siemens has told bloomberg he's not planning an ipo. speaking in abu dhabi, joe kaser said the company is looking at the u.s. sanctions on iran to assess any potential impact on siemens. we need to look at what the sanctions actually mean. it is clear that it is a political governmental decision. that is exactly what we're going to do. taylor: and that is your bloomberg business flash. nejra: taylor riggs in new york. let's get to one of today's top stories. donald trump has ordered the commerce departme

german sure is that industry, germany needs deutsche bank which is a very strong bank forneeds the banko financing its projects in europe and abroad. therefore, the only issue we have right now is that the costs and thee down very fast bank must regain, let's say, it's strength of the past. vonnie: very much appreciate it and thank you for your time. mark: let's look at what happened to the european equities at the end of this session. it's a two day drop. it's the first two day drop since april 25. the last month is primarily seen gains in european stocks but not the case today. it was all tilted on the decision by president trump not to hold that summit with the a monthrean leader in or so. sentiment was dictated by that move. also the trump administration conducted though look into tariffs. the biggest importers are germany and german automakers are among the big decliners today. that was the mood on this thursday session. we have had some retail sales in the u k and we had a rebound, %ore than expected, up by 1.6 in consumer confidence luring customers back into stores. great britai

reporting so far seems to indicate that the cuts will be everywhere and all the regions where deutsche bankoperates across all levels of the operation so retail banking investment banking assets asset management it's a subsidiary of post a bank it's also it's already working on cutting its activities on u.s. equities but it's also started to reduce operations elsewhere like in central europe africa and the middle east so the supervisory board is apparently getting together tonight in order to consult on these plans and these targets with the results being presented tomorrow at that shareholders meeting where i will also be monitoring the developments as they unfold ok i will be going over to you live thank you very much. they're all those crossed the board cuts. to the soaring trade in illegal animal trophies it's thanks to the internet you can forget any progress conservationists thought they were making the demand is there and your purchase of an exotic parrot or some rhino horns have been devastated and now due to a surge in poaching they're facing extinction in the wild national parks h

every time he comes on, we seem to talk about deutsche bank. there a shareholder meeting taking place. we are to see headlines coming out. headcount by about 25%. confirming post-tax return on tangible equity gold. this follows some reporting that bloomberg yesterday that they were can -- considering 10,000 globe cut. manus: let's put it in context. the headline about 10,000 jobs, previously set a target of 9000 job cuts. this never you are looking at is full-time positions will fall below 90,000. they are affirming a target of about 10 percent posted tax return. they can make a double-digit return on equity. 10% would be the number that was flagged up yesterday. they are going to reduce the cost of the business by 22% -- 22 billion from 2019. to a certain extent, the real issue is the chairman is still there. have had for ceos in six years and that seems to be the angst at deutsche bank. can the chairman clear the ship and saving the ceo to do that. without have we got? anna: no further significant disposal plan. more development at deutsche b

anythey said not to expect and the partnerships, long-term strategy and what it is, and deutsche banki was telling us how the bank is looking at cutting down its staff in the united states by 20%, and that is a steeper retrenchment than what had been reported earlier, which was about one in 10. it looks like it will be one in 10 staffers. joe? the day,ds higher on bonds, not a ton of movement, and the 10-year is hovering a little bit below the 3% mark, getting closer up to 2.97. i want to look at a long-term chart thomas stepping away from the united states, of an argentinian item. they were announcing they were going to market with a 100-year bond, and, you know, that sort of signified that it would take up a lot of excitement and exuberance towards argentina, and we know in recent days, we have seen argentine assets gets imf, in talks now with the and it has been tumbling, so the very long-term, risky assets taking it on the chin with concerns about argentina and its currency. now, i want to turn to commodities, kind of at the center of the action today within news today on the iran

>> as you were pointing out, the latest earnings release shows that deutsche bank has fallen further stment banking, particularly in the u.s.. so this decision to restructure the union is -- unit is basically the acknowledgment they cannot compete in all of these areas and they need to cut back some. they are trying now to figure out how much they can do this without engendering too many negative side effects for other parts of the business. we have already heard from clients that they are not particularly happy, that some of them are thinking about shifting away because parts of the business are not there anymore. it will be a very tricky balancing act for deutsche bank to cut in a way that will not drive away the client. that is what they are trying to figure out right now. stephen erin, thank you so much. vonnie? later today, uber's ceo speaks to bloomberg at the uber elevates summit, which is taking place in los angeles. tomorrow, a special european close from washington, d.c.. germany's ambassador to the u.s. with reaction to the u.s. decision to pull out of the iran nuclear deal

and more on those job cuts at deutsche bank, and bank, germany's biggest lender. profit. the bank said it would reduce global staffing levels from just over 97,000 to "well below 90,000". the bank employs 8500 people in the uk and about 66,000 people in europe — including 42,000 in germany. it has 21,000 staff in asia and about 10,000 in north america. it's not yet revealed which countries would be affected by thejob cuts. neil wilson, chief market analyst at markets.com, can give us some more insight on this story. do we know anything more about the specifics? at the melody we're looking at some in the uk but may be largely us focused because what the bank is doing is retention from the us market, it has suffered at the hands of the big us investment they have gone toe to toe with them and really failed so it is retrenching out of the us and i think we will see the majority of the job losses over there. the bank had already flagged up there. the bank had already flagged up thatjob cuts were on the way, that they would be painful and unavoidable, the words of the c

give us your view on the investments you made in deutsche bank? g the strategies today. it is a step in the right direction. clarityto have far more and we need more data points, how they want to restructure the investment bank and just looking at the cost, it is not enough. david: in my experience, you can never cut yourself to success. why haven't they come up with a plan for the investment bank thus far? ingo: they have to look to the u.s. the big issues are the u.s., they want to focus -- refocus on europe and be closer to their core market, back to the roots and shrink the investment banking unit. they have to drive investment banking down because 75% of production is tied to investment banking. 50% of the profits are generated in this unit. we have to wait and see what the bank wants to do. -- it are you in favor has been reported they're going to be dialing back in the u.s. like you said. can they do that and not affect topline? you need to figure out ways to cut the cost without losing revenue. ingo: at some point in time, you also have to

then, deutsche bank on the retreat. from equityull markets around the world, including some in europe. including 10,000 job cuts. president is set to meet with the law profess being pushed by populists for next prime minister. that is all in the next 16 minutes. caroline, what are equities doing? in the last few minutes, 30 minutes of trade, we are seeing a down day. the worst day we've had in the stoxx 600 in more than two months. more than 100 billion -- in terms of market capitalization, all to do with what we've talked about in the headlines. isck out how the dax performing after seeing the german weakness and growth. above, italytly trading on the back of political concern -- individual stories coming out on the banks. we started the day with the report on barclays, a potential tie up between these companies. ,hifts remaining in the green that particular speculation by bloomberg news reporting. investors and analysts see this as merely having no strategic rationale, but also look at deutsche bank. about one hour ag

deutsche bank's new ceo has said the lender is committed to america, seeking to dispel what he calls he contrary that the firm has cut back. they say the bank may retreat from a couple of small business areas, but fundamentally, the u.s. is the most important market. the comments, as the employees wait for the outcome of sweeping job cuts amidst large trail restructuring of their investment bank division. matt: thanks very much. let's get more on deutsche bank, with our bureau chief chad. i know you guys are very busy in berlin, give us the latest on the creditworthiness of deutsche bank. chad: of course we are waiting to hear a review of their creditworthiness. really, if they were to cut the rating, that will put pressure on the share for share trading. basically wiped out all of the gains that we saw on the shares last year. really, watching to see what they are going to say and what they have to say about this new, this review they started. they said deutsche bank has changed ceos so many times in recent years that they are concerned about the long-term strategy. see whatody waiti

deutsche bank is a problem bank. david: not a ringing endorsement.: steve eiseman, for fans of the big short, this is the character who is played by steve carell in the movie adaptation of the big short. largelyit -- called it subprime mortgage crisis. he is the voice. alone.he is very much this is not a huge surprise. julia: he did said it will have to raise capital as well next year. performanceesent from banks. mentioned, this is a constant theme. deutsche bank is coming up almost every day one we are talking about what wall street is talking about, and not in a good way. people are not buzzing about deutsche bank just kill and it -- killing it these days. that only beats the drum even louder for some. exactly right. the only way to break in there is move. read story ont reallyomberg is this nice package with a lot of graphics and charts about where is" and it "really is not on wall street anymore. what you have seen, and the story lay this out is that wall street started and then moved to midtown and now is largely moving west to hudson yards. co

looking at the other subunits, the capital markets business is not doing too well, but we heard from deutsche bankly on last month that this special unit is very -- is doing poorly, so to say. all in all, one can argue the retail business is still a competitive market in germany with more banks even coming into the market to attract -- to try to do business with german customers. the likes of goldman sachs, they are also entering the market going forward it will be more competitive most likely than it is now as you were saying, the bank is clearly a play on higher sbr interest rates, that's what they're saying as well in case interest rates rise, it will also be very good for their earnings so far shares have still a lot of upside potential until the german government will actually be able to sell their stake without posting a loss on it with that, back to you >> thank you very much we look forward to your interview with stephen engels at 11:40 cet. >>> joining me to discuss all things banking sectors, is the senior analyst from axiom internal investments and the sbp from global financial group. s

the fed has been looking at deutsche bank very critically for a long time now. just last year they post at least three cease-and-desist orders on the bank. they were beginning to lose patience. in march when the meeting took place they made clear to the bank that their patience is running thin and they made clear that deutsche bank would need to step up the pace of compliance so that they wouldn't end up with even more severe penalties. that's what happening right now. we have a new ceo and it's up to him to do that. nejra: we understand that this is a warning. a scolding if you want to call it that. how likely is it that it's going to be followed with any sort of enforcement that's going to have a material impact on deutsche bank? i don't think i can speculate on that really. we know they are impatient. they want to see progress. just how much longer they are willing to accept the perceived lack of progress we don't know. it's clear it is a status fight and they could if they wanted to impose more stringent measures. we can't speculate how close they are to doin

for a while deutsche bank has been bleeding talent.hink of the alumni that is on the street and they are everywhere. -- has reached fever pitch as of late. >> a lot of it comes down to how deep the cuts are going to be and are people going to stick around to find out? we reported that there are considerations for cutting as much as 20% of staff in the u.s. the bank is saying a lot of the cuts will be toward performers but when you cut that deep it raises questions about commitments to specific areas and people in that part of the bank may not want to find out. of talk thata lot deutsche bank had to extend big bonus offers and compensation packages to entice real talent into their doors in the past two years. it morel have to make difficult on that level? >> definitely. to keep the top talent, because they have had so many switches in strategy, a little over a year ago use -- you had john cryan saying we are pivoting back to growth. we need to grow revenue and that did not happen last year. thereu're moving back to was a memo that came

it's on shuffle one thing that most people can agree with is that something needs to change at deutsche bank as most bang for i need a bank that is competitive on both a national and international level and that's not the case now. the moment. calls are simply too high and they need to go down dortch a bank has lost its edge in recent here is an issue its c.e.o. is determined to address your mission is going to shift the balance in our business so that our results fluctuate less this is the only way we will be able to sustain profitability and build on our strengths and what else i ignore cuffed. of bot. after three consecutive years of losses the new boss is intent on shaking things up he wants to focus on the german market coupling innovation with old fashioned banking. truck drivers in brazil blocking major highways around the country for the fourth consecutive day in protest against rising fuel costs the transport difficulties of lead to food shortages in some supermarkets with perishable goods likely to run out in a matter of days several petrol stations as well as brazilians internatio

deutsche bank is down for the r.o.e., negative. this is in the white, for the past three years. s seeing an r.o.e. of about 5% and it only gets better there. bank of america up 7% and jpmorgan up more than 10%. finally, take a look at the share price relative to the ceo 10 years. this is a great -- tenures. this is a great way to look at how performance has been. since 2006, wenzhou ackermann was in charge, ever since through 2012, this is down 12%. then ceo juergen fitschen down 11%. then from 2015, we can see john cryan down by 25%. just as little sliver here on the right-hand side is christian sewing. he started april 8 of this year and shares our army down 9.6%. are already down 9.6%. he needs to do more and the strategy needs to be clear to get consumer confidence and investor confidence act. haidi: thank you so much for that. novo jumped the most in a year after their first double-digit percentage increase since late 2015. they are looking to reverse years of declining growth which assaults the stock removed from the han sang index. cop -- found how damaging it is. >> i wou

deutsche bank not commenting but in a statement it says the ultimate parent of the deutsche bank, deutsche bank ag is very well capitalized and has significant liquidity reserves. >>> uber's ceo says the company is on track for an ipo in 2019 and that it's in talks to add waymo's self-driving cars to its network. and the world's leading air transport industry group says airline industry profits probably won't hit record levels forecast in december due to a jump in fuel costs we'll get the pulse from delta's ceo minutes from now tyler? >>> we begin with on again off again and now on again trade tiff eamon javers has the story from washington. >> tie ler, that's right the announcement came from the commerce department and then wilbur ross was on cnbc explaining the president's decision here. one of the questions he got was about the eu's reaction here the eu threatening to take retaliatory action of its own. here's what wilbur said to that one. >> you'd obviously v to talk to the eu, but think about how small in number $3 billion a product is relative to our $18 trillion economy it's a tiny,

deutsche bank, the german lender is slashing thousands of jobs as it revamps its investment bank andries to limit costs deutsche bank will cut its headcount from 97,000 people to well below 90,000 people the most will cost the company nearly a billion dollars this year in charges. their annual general meeting is today. >>> shares of samsonite slumped to a nine-month low on a report by a short seller. blue orca capital says the luggagemaker used questionable accounting to inflate profit margins. the report calls samsonite a mid level brand masquerading as a premium luxury player. samsonite has not responded to those reports from that company. >>> williams-sonoma is surging in the premarket trade the retailer reported better than expected first quarter results as same-store sales rose more than 5% and it raised its full-year outlook. shares are 15% to the upside i'm probably one of the contributors to some of those numbers. >> we're just getting started on "worldwide exchange. up next, talking tech. the industry's biggest names speaking out in paris right now. we'll go there live strai

jpmorgan, deutsche bank are all there. n applying for licenses and operate through the investment banking licenses which enable them to advise on the privatization you're talking about. with this program that has been theched a few years ago, prize coming out of saudi arabia, all the fees you can raise out of these deals are in people- are luring from across the world. what it sounds like to me is we have seen this before were these second-tier banks want to go international and pick up investment banking business, but don't they have to compete with the big guys? if it is going to be a feed bonanza, who is in line first? certainly jpmorgan and hsbc have a very well established franchise in the kingdom and have managed -- they already on the deal, which if it goes ahead will be a huge fee payday. where also seeing things like the pis and international investment spree going on. banks want to be close to that and advise on all kinds of deals. the opportunity is there. jpmorgan and hsbc have been well-positioned. citigroup st

deutsche bank reversal. now street week, where recover three things wall street is housing aboutthis -- is buzzing this morning. buffett cancels his ride, warren buffett calls on a $3 million deal with uber. and the deutsche bank reversal, ceo savings says the u.s. remains its most important market. alix: joining us now, james simon, he was the winner of $1.7 billion. alix: as he as last year and the year before. it's his performance on these funds that are unreal. >> that's right, the the toallion fund, it is closed outside investors and has done incredibly over the years. they keep it caps off at a certain amount so that they can do a lot of the trading they want to do and they are one of the best and earliest funds of all time. learned this the euro to ago, they only invest their own money now. only the people working get to participate in it and it's like 40% returns. >> is incredible. and as you said, they keep it cap so that they don't get too big and not have the opportunities they want. they really a

will shareholders be satisfied with deutsche bank? and that car crunch. the trump administration launches a probe into auto imports. wash -- asian carmakers have been hit hard overnight. we are less than half an hour away from the start of european trading. futuresoment, reasonably mixed. a little on the negative when it comes to the dax. see a tough trade when it comes to german auto stocks. the london market could open absolutely flap -- flat.

deutsche bank is the only one that is negative. of america and purple, all positive. overng at the 10 year ceos, they have all been negative except one. right now it is down 9.6% since he started in the past month or so. haidi: thank you so much for that. coming up, more on korea. we will talk to the korea society resident about the fallout from this failed summit. that is up in 10 minutes time. this is bloomberg. ♪ ♪ anna: president trump canceling on kim jong-un saying the united dates military is ready for anything. north korea says it still wants to talk. tearing earlier losses, the yen weakening to 110 while gold sees its biggest gain in weeks. back in-- rusal spotlight. the resignation may bring sanctions to the end. i am in hong kong. guy: and i am haidi lun in city. apple in half a million -- billion dollars out of samsung. this is "bloomberg markets: asia." a bit of a mixed picture this friday, the session in asia not all bad given we have had conciliatory remarks from north korea in the response to donald trump's decision

reporting so far seems to indicate that the cuts will be everywhere and all the regions where deutsche bank operates across all levels of the operation so retail banking investment banking assets asset management at its subsidiary post a bank it's also it's already working on cutting its activities than us equities but it's also started to reduce operations elsewhere like in. central europe africa and the middle east so the supervisory board is apparently getting together tonight in order to consult on these plans and these targets with the results being presented tomorrow at that shareholders meeting where i will also be monitoring the developments as they unfold ok and we'll be going over to you live thank you very much. there on those cross the board cuts at. the soaring trade in illegal animal trophies is thanks to the internet forget any progress conservationists thought they were making the global demand is there and your purchase of an exotic parrot or some rhino horn is just a click away. around one hundred fifty years ago africa was home to millions of rhinos and allison's since th

sits on the shelf one thing that most people can agree with is that something needs to change at deutsche bank as most bang for i need a bank that is competitive on both a national and international level and that's not the case now. is the moment. to fall. simply too high they need to go down dortch a bank has lost its edge in recent here is an issue its c.e.o. is determined to address. better balance in our business so that our results fluctuate less this is the only way we will be able to sustain profitability and build on our strengths and what else i know cuffed. of. after three consecutive years of losses the new boss is intent on shaking things up he wants to focus on the german market coupling innovation with old fashioned banking. is a banking and financial expert at the university of horton hi my first question relates to what actually needs another restructuring as we're hearing there or a total overhaul. well i think after some restructuring there is a total overhaul as a result so we are already at a total overhaul we had seemingly not enough of that we had many declarations but s

. >> deutsche bank is a problem bank. i think it has to shrink dramatically.ia: and up next, more of the business headlines. nominees to keep post at the federal reserve take questions on capitol hill. >> this is the flag and apple pie kind of hearing. you do not want to take a controversial stance. julia: this is bloomberg. ♪ ♪ julia: this is "bloomberg best"" i am julia chatterley, and let's continue our global tour of top business stories. in israel, the u.s. opened its new embassy in jerusalem. there was ceremony and controversy. >> we believe that it is possible for both sides to gain more than they give so that all people can live in peace, safe from danger, free from fear, and able to pursue their dreams. >> the u.s. embassy opening in jerusalem today. in the meantime, at least for -- 41 palestinians, tens of thousands converging on gaza's border. it is more than symbolic, isn't it? >> it has been a fantastic week for the prime minister. on one hand you have the iran deal getting ripped up after he tried to spike it and say the iranians lied. and you ha

the ceo of deutsche bank is trying to dispel rumors about their future in the u.s. the u.s. portant market for the bank. they are cutting back on some businesses in america and 1/5 of its u.s. stock could be cut. raising his fund-raising targets to $12 billion in bringing in existing shareholders in a yuan dominated financing round. is $150 billion, the most valuable tech firm in the world. shares of boccardo are rising today and it will be added to the ftse next month. it has risen more than 130% this year. that is the bloomberg business flash. francine: we were talking a little bit earlier about some of the market dynamics when it came to italy and some of the political turmoil and the impact it has on periphery. we now want to talk about dollar dynamics. i know you have dollar trade weighted and i have pound trade weighted. one of the biggest stress points with that normalization is emerging markets. still with us are andrew and stephen. stephen, if i ask you whether you are worried about the emerging markets and the governments that feel more fragile because of dollar ris

julia: speaking of messy business, deutsche bank. you have to get your dollars and yen right, those are two big figures that are really messy. >> $35 billion, 28 billion euro went to the wrong place it is somebody hit the wrong button. the errors. david: we knew that there was one in march, but there is also 14 years ago that they thought they had fixed. the one in march was after already a huge one. >> it is literally about that they did not have two pairs of eyes on something. in one case a but he said it is yen? it should actually be euros. david: and how big whether dividend the --b be?

allegations on the proceedings that expects -- innospec's -- it inspects -- it in 2018.o face deutsche bank said they expect to face charges over displacement and we know the other two join managers on this sale where citigroup and jpmorgan. it is not clear what the allegations will be detailing.

if you look at the 10 year chart for deutsche bank, you can see the challenge ahead for this troubled bank. let's take a look at goldman sachs. two pieces of news on goldman. a vice president, which is a lower-level employee, is charged in insider trading schemes where allegedly information on a number of investment banking clients was used in a scheme that netted about $140,000. there was news out in the afternoon that goldman was set to exceed its revenue in commodity trading four months into the year for energy and metal trades. haidi: thank you for that. nothing can help the oil price at this point with negative closestt for america's allies, who plan to slap the onds of dollars on tariffs american crude after the trump administration make good on its threats to impose tariffs on steel. it was aggressive action on major trading partners. they have been fighting to get permanent relief. joining us now is our bloomberg national reporter. as remy mentioned, with friends like these. but the backlash has been swift. reporter: it has been quite a backlash. that the eu, saw canada, mexic

nordstrom was upgraded from buy to hold from deutsche bank. they cite the stock's valuation and they expect to gain traction throughout the year. the price target is . shares rose 4% to $47.62 >>> shake shack was downgraded from neutral to buy at long bow research. the analyst cites the 60% run up stock in the past six months and now is the time to stop buying shake shack shares. the firm is telling clients to wait for a pull back before getting back in. the stock fell just a fraction to $57.89. >>> analysts are at odds over celgene. the analysts say the stock's valuation is too cheap to ignore. set the price target at $102. another analyst though disagrees. arg g argus research downgraded celgene from hold to buy. the risks outweigh the rewards given the medication revlemed. theplit call hadcelgene shares higher by more than 1% lotoday. itd at $77.67. >>> stilld, ah real estate goes high tech. diana, what's coming up? >> reporter: hold on, let me ask. ala, what's next? >> diana, coming up on "nightly business report," a story about how amazon

deutsche bank has dismissed 600 and this —— 600 investment bankers over the past seven weeks.gest shake—up to data protection in two decades. gdpr is a new european law that comes into effect today. it has implications for any company doing business with anyone living europe. the emile cilliers affects the big internet players in the us, but also smaller organisations and aims to protect personal data. at its heart, it requires everyone to design data protection into their offer excellent privacy settings set too high by default. heard this before? all calls are recorded for training and security purposes. that may not be adequate under the gdpr which state you must actively give your consent rather than it be assumed and you can withdraw their consent at any time. so in this case, the company needs to wipe that call recording if you ask them to. eu citizens get the right to access their personal data and find out who their personal data and find out who the company has shared it with. and how they got it in the first place. if it was acquired in a dodgy way, you can ask the c

the issue is definitely going to be deutsche bank all the european banks have been down this week withhe blow up in italy because of the exposure they have. the ownership they have of some of this italian debt deutsche bank, the stock is down 40%. people have been talking about they're not doing well their business is not doing well, they laid off a bunch of people but you don't drop w40% over things like that we have seen a lot of volatility in the marketplace, the fixed income market and surcurrency market, you have to wonder if that's impacting their profits and derivatives book and the implications that might have on other banks. >> are we, meaning the final markets, maybe the financial media looking at the italy situation in a wrong way >> i think so. it's interesting everybody is focusing on is this going to become a contagion or become a problem for europe? what it is is another -- it's another instance in a progression taking place all year interest rates have been rising for a while now. long-term rates rising for almost two years it takes time for that to have an impact on th

>> deutsche bank, the european bank from germany, and there are a lot of warning signs regarding this bank. first off, you have a brand-new ceo christian sewing speaking to investors, how the company is going to organize, the fourth time they're organizing in three years. they are laying off 7,000 employees, big chunk in investment banking. some of the employees are going to find out their fate within the next 30 days. then have you other issues like the company focusing or having a lot of exposure to derivatives, the credit risk revolves around that. i reached out to bank of america london analyst and he covers this company and said if anything, think of this company back in the day near the financial crisis. they took a lot of speculative trades. they didn't hedge bets. traders made big bonuses off derivative trades and holding the positions, traders are long gone, nobody wants to get it off the books, so deutsche bank has said they're losing roughly 500 million euros equating to 580 million u.s. dollars. that's like a leaking hole in a bank right now. every year losing money. anoth