deutsche bank and commerzbank have stopped talking. made the decision because of the integration risks . we understand. we thought they were too big. deutsche bank and commerzbank have been talking about this take over since mid-march. let's bring the anchor from berlin. this was largely expected. does this mean they will continue their strategy? how can they cut costs without merging? it would've been very expensive to do the merger in the first place because the reality is it wouldn't have been a merger. it was an acquisition. they would've had to raise capital. number one, not by an commerzbank is a good way to save money. number two, they will probably be accelerating the cost-cutting plan. that is what plan b was looking like a week ago. they had been pushed to say that they were only -- not only going to not buy commerzbank but deliver earnings early. the market reacted positively to either one, the other, or both of those announcements. deutsche bank remains one of the most critical banks in the world. do we know what german pol

i am not to bearish on deutsche bank prospects yet. , at you've got to grow the top line. it doesn't sound they were going to be growing the top line a lot in the investment bank. doesn't deutsche bank have a lot of competition locally in the retail branch system? michael: that is certainly true. germany is chronically haveanked, meaning markets been depressed for a considerable time, particularly given the low rate environment. that is difficult to fight, of course, but there is still a lot of potential in serving the clients. i think that deutsche bank has still some ways to gain market share and improve the revenues. alix: who should get commerzbank? there's a list of suitors. ofhael: for the merger commerzbank and deutsche bank, i think there has never been the potential many people speculated around. it would have paralyzed both institutions for a considerable time. besides the cost synergies, i hadn't seen too much revenue potential. therefore, i think commerzbank is probably better off without deutsche bank, and i think there's a

why was deutsche bank so desperate?selves in the united states. trump even at the time before he was running for president was -- he was very well known. he was a splashy name, a big reality tv star. he had a knack for getting publicity and for attracting crowds. and that was exactly what the bank needed at the time as it tried to make itself not just a random german bank but a household name in the united states. >>> let's check in with chris and see what he's working on for "cuomo primetime." >> another fan with me tonight, coop. what do you want to say to anderson? >> you're my second favorite show. >> oh, thank you very much. >> he says -- is don your first? >> he says is don lemon your first favorite show? >> no, "cuomo primetime" is of course. he's my third. but i bet you're amazing. i bet you're amazing. >> you've said enough. so she's with us tonight. >> i love your show. never seen it, but i love it. >> it's the best fan i can have. one with no exposure. what we're doing tonight is we're taking a look at what y

does it mean deutsche bank has to make more cuts to its investment banking unit? first, let's turn back to the trade story. saying thei jinping belt and road initiative has created new opportunities and will a global growth. he also pledged to clean up the initiative. it faced criticism of her lack of transparency and claims that it is indenting -- endebting foreign nations. >> china will not resort to the practice of renminbi devaluation. we will continue to improve the exchange rate regime. the market plays a decisive role in resource allocation and we will keep the exchange rate basically stable at an adaptive and equilibrium level. these steps will ensure the steady growth of the global economy. jinpinghat was xi speaking in beijing earlier today. the comments set the yuan rallying, before paring its gains somewhat. joining us now is the chief investment strategist for northern trust asset management. great you have you with us this morning. i have discussions on most on a daily basis about the outlook for china. you are not so convinced at the moment that the

deutsche bank and commerzbank are discontinuing their discussions. utsche will continue to improve all -- to continue on improve their long-term profitability. the news is they have decided to tes continue discussions customers bank, doour bank, as it stands, those discussions are off. let's get back out to annetta in frankfurt with more. annetta, we've got the news. discussions are off. what now >> that's a good question. actually, that's a question probably, hopefully someone from the management board will discuss with us later during the course of this day clearly, i think the execution risk at the press release is stating far higher and the potential benefits that's actually what they concluded now. we were talking earlier about it is lead for a new capital for that merged entity, which probably would have -- the opposition from labor. i guess nobody like the increasing opposition in the end killed that deal perhaps also the concern that the equity story wasn't good enough to sell to investors and also to regulators, and perhaps in addition to tha

why was deutsche bank so desperate? were really eager to make a name for themselves in the united states. trump even at the time before he was running for president was -- he was very well known. he was a splashy name, a big reality tv star. he had a knack for getting publicity and for attracting crowds. and that was exactly what the bank needed at the time as it tried to make itself not just a random german bank but a household name in the united states. david, fascinating reporting as always, thank you so much. >> my pleasure. >> let's check in with chris. >> another fan, another fan with me tonight, coop. this is carlina regina cha cuomo. what do you want to say to anderson? >> you're my second favorite store. >> thank you very much. is don your first? >> he says don lemon so your favorite? >> cuomo, of course, he's my third. i've never watched you guys, i bet you're amazing. >> you've said enough. >> she's with us tonight. >> i love your show, never seen it, but i love it. >> the best kind of fan i can have. what we

vonnie: who would you have merged with deutsche bank? are there any options out there for the lender? eter: for deutsche, the option would be clear for many years, from my side. unitlobal investment bank is extremely risky and nonprofitable, so therefore a first step would be to get rid the chairman of the advisory board, a former goldman partner, and a new chairman could change the strategy. that would be the best option for two. -- for deutsche bank. i don't think that anyone is really interested in deutsche bank as no one can really know what risks are on the balance sheet. it is a little bit opposite with commerzbank. they have their risks better under control, and they are much smaller compared to deutsche bank. maybe the german government has problems to explain to the taxpayer why they support the the of over 3 billion in takeover of commerzbank by a german bank. paid 5man government billion euros for a stake in commerzbank, and it is worth currently 1.5 billion. vonnie: deutsche bank is taking a hit on the credit market on the fai

friendly insofar as this makes it easy for deutsche bank to respond. maxine waters asked for it two years ago, she didn't have subpoena power. there might have been public interest in it but the bank secrecy act prevented deutsche bank from doing anything along those lines. >> right. >> subpoena power, you know, gives congresswoman waters, adam schiff, you know, the chance to -- the power to command this and deutsche bank has full defense that, you know, they're allowed to turn this over. so i don't think the president's lawyers are going to have much of a chance if they're going to try to fight this. >> alan garten, a lawyer at the trump organization, president's business, said he's exploring options to try to block deutsche bank from responding to the subpoena. are there any options? it sort of seems like this is a cul-de-sac. >> i don't think so. >> there's not any -- >> they're very creative. i'm sure he's going to try to find something that might pose an impediment, but i don't see how they can avoid this at this point. >> given the earlier reporti

if we don't see deutsche bank or unit bank making a bed, what are the other options?at is the question i think everyone is asking themselves. if this falls apart, what are you going to do? emerging withbout a bigger bank outside of germany, but that is really difficult. they always end up as a junior partner, and also because regulatory hurdles make it difficult within europe. the one m&aeft option they had, it would be gone. it would be in a restructuring case, probably more cost-cutting. worked.ot thank you very much, bloomberg reporter and editor. thank you for the pan-european coverage. coverage,inue this good to have you with us. do you expect to see here a cross-border deal or and all german tie up. >> good morning to you. we have always said that we is the a european deal better solution for deutsche bank, who should not forget the two speakers in front of me have been very diplomatic. we should not forget that deutsche bank is not able to keep up the loan they had in the why oure main reason minister of finance is pushing back that merger. we always said we be

deutsche bank's responsibilities here were to know its customers. ary bank has more of the responsibilities in terms of going down to the individual customers. nonetheless, a do have a burden of responsibility. as we have seen recently, it is not necessarily enough to be a correspondent bank to completely avoid all responsibility. the regulators have come after many banks who played such a role. to that extent, ignoring the alarm bells, turning a blind eye to the suspicious transactions, the scale of which was staggering. $150 billion. it is troubling. it comes as there are other scrutiny on deutsche bank at this point, whether it is to the unit that that particular made to donald trump and companies associated with him or the doj. it is a -- it does not look good. vonnie: we did see insider accounts about what went down and we learn from that that even as other banks stopped doing business with this unit at dansk a bank, deutsche bank kept going. that means we had a good insight into how operations work. what else did we learn and is compliance work

now, deutsche bank has been fined for this by regulared including in new york. 's paid penalties more than $600 million. meanwhile, the bank has been incredibly evasive. i mean, you call them up, you ask questions. they don't give you any answers. congress has written to deutsche bank, inquiring about lending to mr. trump, and never received a reply. what's interesting now is we now have subpoenas and maybe deutsche bank will finally start shedding light on this. of course, donald trump's tax returns might tell us something, but we're still waiting for those as well. >> in the immediate, i mean, now we know that deutsche bank is turning over documents to the new york attorney general. i do wonder what you think kind of the big at least the most important question that you would have that could possibly be answered from what the new york attorney general is getting. and for that matter, the investigations under way in congress. >> well, i mean, i think we have to be very clear and careful about what we say, because at the moment we don't know. there may be a perfe

remain at deutsche bank -- and deutsche bank cuts revenue targets.near-term growth due to brexit uncertainty. and uber's ipo comes down to earth. the ride-hailing service aims for a valuation of as much as $90 billion, taking a more conservative approach after the listing fell flat. everyone.ng, good afternoon if you are watching from asia. francine lacqua in london, tom keene in new york. gdp in the u.s. is what we are looking out for and brent moving a dollar lower. morethe markets a little stable after the joy we saw yesterday. i only have one data screen as an example here, but the theme of the week is a stronger dollar. the gdp report today will be a real mystery for economists. francine: we will have a lot more, of course, on the gdp reading. it's get straight to bloomberg first word news with viviana hurtado. time is running out for british prime minister theresa may enter plant keep the u.k. out of european elections. may is unlikely to put her brexit bill before parliament next week. she probably won't get it rectified before the parliament

deep in the article is the idea that european deutsche bank told new york deutsche bank what to do. midst of watching the european banks and deutsche bank, do they tell new york deutsche bank what to do? steven: i think when you look at deutsche bank, and i imagine with any global organization but particularly deutsche bank, there is always a question of who is in charge. it is new york that is more in charge than frankfurt in terms of compliance with people who were like elated who were not were notegulated who able to talk to regulatory issues anyway. deutsche bank has always been a wide conglomeration of different centers of power and that has always been a problem when you talk about compliance and do not have oversight. tom: thank you so much. we will get that story out again on twitter, just extraordinary. radio up, on bloomberg later. this is bloomberg. ♪ the biggest week in television is almost here. xfinity watchathon week. starting april 8th, enjoy free access to the best shows and movies from hbo, showtime, epix and more. what! whether it's more jaw droppers, standing o's

deutsche bank is trading down 3.7% today we had obviously the report card from deutsche bank showing results. net income showed a big dump year-on-year, but still a lot of questions about the privacy of their investment banking units and also the cost prepping trajectories commerzbank, however, has been up it% trading up almost 2%. remember, commerzbank is a name that other banks have been -- perhaps that is one of the reasons why that stock is doing well okay i want to bring in an expert from the topic owe just wonder looking at deutsche bank, the development over the last 24 hours, i mean, how do you see deutsche bank's options from here? >> well, we have a negative trend on the write rating, but from our point of view, the merger could have been a driver. further negative rating action. >> i mean, you saw in the first quarter that the results weren't bad for dooub bank they weren't good in absolute terms. it was a difficult quarter anyway for investment banks globally i mean, they've made a start by bringing the costs down in line with their plans it's a tough revenue environment.

deutsche bank is not the only bank the committee subpoenaed.ks they subpoenaed as well saying they are complying. this is yet another big headache for the president. >> do you think, jeffrey, the mueller team did have access to the president's tax returns? >> you know, i'm going to say those three forbidden words, i don't know. there's nothing in the report that refers either to his tax returns or his personal financial dealings. but that doesn't necessarily mean the prosecutors didn't see it. i don't know. >> i asked the question, dana, because the house judiciary committee wants the full unredacted report, they want all the underlying evidence. and if there are tax returns in that underlying evidence, that's what they'd like to see. >> exactly right. and that's separate from the ways and means committee which has a law on the books or a ruling that gives them the green light to ask spes ofcalcificall the president's tax returns. the president's legal team, many people i talked to, they thought it was likely that mueller had seen the president

who would have thought something worse than deutsche bank? next story and talk about a nice pay package here. a small california bank, axos financial, who ceo made more than jamie dimon, yet it only has about $10 billion in assets. momentshese are the when i love david westin. we were emailing about this last night. this is the first time someone has managed to come up with a compensation package that is totally aboveboard, totally legal, shareholders approved come aboard approved, and yet you go, what? how does this work? it is a complicated set of incentives tied to the scott price -- to the stock price. on the face of it, you think a ceo should be tied to the stock price. then you dig in and say there was some short interest and artificially inflated stock price. david: and you have the ceo making almost as much as the whole company made. alix: which makes you feel good if you are a worker there. jason: we are at this moment where there are a lot of big questions around ceo compensation at banks. david: and a lot of questions got asked at

matthew luzzetti is with us from deutsche bank. in clearing the markets and getting to a better american banking system. matthew: that is right. from a resilience perspective, banks can absorb more shocks than previously. from the fed's perspective, that is a reason to think that this recovery can continue. i think of interest is the fed now has the macro prudential tools as well, the cyclical capital buffer. voted to raiserd that and others want to raise that as well. that will be an interesting question over the next year -- if our economy is continuing to grow over to percent and inflation is not coming through but equities are higher, is there risk where the fed wants to use these macro economic tools to raise the cyclical capital buffer? guy: within the numbers that we are starting to see the consumer wobbling. employment numbers in the u.s. -- the economy looks robust, but some elements within the credit stories delivered by the banks because a little bit of concern. matthew: i think you get a bed of a sense of that, and you c

>> i'm not sure how it stands so many regulatory for commerce bank and deutsche bank merger, because clearly, those who are arguing that they would have a machine oply on the german retail market are clearly wrong because you have to look at how big the savings bank and cooperative banks are in germany, so there wouldn't be dominant player in that market there might be perhaps an investment banking specific niche where there could be a dominant player, but i guess they wouldn't be big enough to block that merger. the hurdles are somewhere else especially those are the hurdles that are come from the trade union. we have a new round of margins from the trade union calling officially for more money, but also, for not agreeing to let merger between deutsche bank and commerz bank because they would argue it would lead to a job loss of up to 30,000 people in germany. i think that's the main hurdle when we talk about the deutsche bank and commerzbank merger. it depends how much political will we're going to see going ahead from berlin to actually, yeah, back the bang against

the third is the banking story, deutsche bank being a once upon a time bank of germany, and became annternational bank. now it is grappling with the -- what size it is supposed to be. jason: wide-ranging implications in germany and the global financial system. ed robinson brought us more. >> these banks are the twin pillars of the commercial banking system in germany, so they are vital institutions. they are also weak institutions, both banks have struggled to generate revenue growth, profitability, to show the kind of strength and resilience a lot of european banks have started to produce after years of recovering after the crash. it is funny, but it is the german banks which many would think would be the strongest that have become the laggards in the european banking scene. jason: why? what happened? you are right on both accounts. the assumption would be these are strong german banks, deutsche bank especially, it should be at the heart of the financial system, yet it has fallen by the wayside relative to its big u.s. competitors. where did they go wrong? >> looking at deutsche bank

merger with deutsche bank calls problems -- deutsche bank cause problems?an see there's a lot of blowback already in case it causes job cuts. david: bob, we talked to you about financials. do a compare and contrast with europe. how much of this is a bigger symptom with european problems as compared to the u.s. -- iner: in 2000 2008 and 2010, they loved it. that never happened in europe, and these problems just continue. alix: just look at this chart. bloomberge inside the , this is as soon as the financial crisis. .his is jp then unicredit is the white line, georgia credit is the blue line. much of this is the ecb' fault. guest: it is europe. it has been horrible. there's no growth. there's no lending. the ecb has been forced into that corner, and i come back to -- to the balance sheets. alix: bob is really passionate about that. [laughter] a $1 billion,come and not all of it, but a fair amount of the problem, will be be that. they are essentially saying we got to go back to basics and really make sure we are strong in japan. are reporting has been showing

trump had more than three outstanding loans from deutsche bank from the time he took office, and the man for the bank said we're going to provide appropriate information to authorize investigations, kind of a boilerplate statement, neal, and yet one that is probably not great news to trump. we know this week he has also been urging his independent accounting companies to try to hold back his tax returns, which are also being pursued through multiple doors from congressional democrats. and soy wonder here what you think is important from the oversight perspective that might be different from mueller. for example, if mueller looks at all the financial records and doesn't see basically crimes in the united states, my understanding is other than what else he tells people, he sort of moves on. where as with congressional investigators, if they find out that there was, for example, a lawful private auction of the sitting president's debt, saying there was debt, that deutsche bank or others were holding, and they sold it, say to a country's sovereign bank or some other entity, that might be

deutsche bank decided we are going to pounce. are going to grab all the business that our rivals said becomeshed and we will europe's answer to goldman sachs. we will be an investment bank. that was the decision, the chance they took in 2012 and these years later they are left in a situation where they have restructuring and reorganizing of this is something they should have done six years ago. did they get it wrong because the market did not come to them like they thought it would? is that an economic problem in europe? is it mismanagement? where did it take a left turn? edward: it is all of the above. what you have is a situation of disorganized,s fragmented in terms of organization. it is a bank but did not know what was going on in far-flung units. that led to legal scandals. that his confidence. the shares get pounded. that is one problem. you have ar side, weak european economy. remember interest rates went to zero. that is bad news for a bank that depends on interest income to bolster its revenue. it did not get help on th

this is a deutsche bank concern.ting last week that they need a plan b if this is not happen. there are planning on raising value as a way to allow deutsche's to access the capital it may wire to satisfy regulators. this is more about deutsche's then it is big banks in general. matt: we heard about the plan b for deutsche bank, owned what you think about the plan b for commerzbank -- i wonder what you think about the plan b for commerzbank. does it make sense? does it make sense for someone from the bank from italy or france to try and make the acquisition work? basis, theategic commerzbank franchise being so it is one many lenders in europe with like to have in its portfolio. whether it is a french bank or ing put its hat in the ring, i'm sure there will be considerations. clearly, there will also be political considerations. i do not think necessarily that the government having tried to find their own solution, would be willing to throw commerzbank to another. there is going to be as many political considerations.

today's numbers encapsulate deutsche bank's problems. stment bank consumes huge quantities of capital yet delivers very little in terms of returns. i wonder if the commerzbank deal would have resolved those issues. sanofi out with a solid sense of numbers. the drug sector is one of the best-performing stock sectors in europe. key drugs performing strongly. there are highlights in europe and the drug sector has been under pressure, particularly stateside. is the see that, there top end the story, media and telecoms going back. you do not want to be first out of the gate on something like emissions. media telecom and health care doing well. let's take a look at the bottom because this reinforces the problems the london market is having. basic resources down 1.1%. it is the oil and gas sector which is fading now, brent is trading down 3.5% as a result of which that is being translated back and those equities. that is a look at the european close. vonnie: here in the u.s., we have the tenure at 2.50, down from where we started the week after

remember the deutsche bank has been fined $600 million for laundering to russians. e been fined over $22 billion. and it is not a huge bank. i think you can argue that given the sham tax shelters, that from an american perspective, it is an american organization. >> they have made the case that they are hook into deutsche bank in particular with donald trump's dealings because they want to see if there is any money laundering going on. so we know when it comes the capital one, there was a $35,000 check cut to michael cohen to pay off someone that we well know and we've been talking about for quite some time. we heard from michael cohen about all of this. >> i am giving to the committee today three years of mr. trump's personal financial statements from 20 level, 2012, and 2013. which he gave to deutsche bank to inquire about a loan to guy buffalo bills and to forbes. it was my experience that mr. trump inflated his total assets when it served his purposes. >> so we have, matt, these hush money payments that were made from capital one. we have this statement from mich

trump, you write, told deutsche bank his net worth was about $3 billion. bank employees concluded he was worth $788 million. a big potentially legally significant difference. and you report one senior bank person said he should be avo avoided. you go on to say that nonetheless, deutsche bank agreed on lend him more than $500 million. >> yes. so the bank overlooked, deliberately overlooked one red flag after another. so determined to do business in the united states. it boils down to greed. they were hungrier for profits and more big to accept risks than any other bank and they're now paying the price for that with all the scrutiny. >> and one thing that comes forward, when you go back far enough, neither the bank nor the people in mr. trump's orbit, expect that he would later become president of the united states and that would bring on this extra scrutiny. regulatory and otherwise. michael cohen in his now rather famous testimony talked about this. take a look. >> to your knowledge, did the president ever provide inflated assets to a bank in order to help

deutsche bank, another story with the m&a. start to get the bank earnings, i think that could be quite important. vonnie: what are the companies you will be looking to to get a read on brexit and how those negotiations and lack of decision-making are impacting companies decisions when earning season starts in britain? >> we do not want to talk about , but brexitoo much -- not even the biggest banks, we can to look at the smaller banks, the once more exposed. , which at lloyds bank are much smaller than hsbc and barclays. also the homebuilders have been badly hurt by brexit because economic slowdown hurting the u.k. housing sector. those are the sectors, financials in real estate, we look at for gauges on how brexit is being taken by the market. vonnie: wonderful. that is bloomberg's joe easton from our london studio. now to a bloomberg exclusive. our colleague talks with the saudi energy minister today. here's what he had to say about saudi aramco's make a bond sale. >> the roadshow is ongoing. i think the deal would close on

apparently wants more time apparently apparently wants it aside more quickly while deutsche bank wants to take more time in the talks german media are reporting that an initial decision could come as early as this weekend or latest on tuesday. when come out the bank executive board meets pointing to a resolution that could be achieved quite soon one way or the other. i mean what would be the best to deal with deutsche would unicredit be a good partner for commits. and this new is with the credit came out there is actually shot up more than five more than five percent before a trading opened here today and there's still trading higher at the moment. so this shows you that there is some excitement here on the news and analysts are also saying that it wouldn't be the worst idea either unicredit already has a big footprint in germany it owns a hippo for ryan's bank this is a bank that is a very strong in the south of germany at the which is of course has which of course has a lot of industry now european banking officials wanting more consolidation in the sector might look a more favorably

you have to bring in robotic -- robotic processes, automate deutsche bank, and turn it into like whathappening in some of the leading u.s. banks or in nordic countries. that's going to be really hard. caroline: really hard but interestingly something i saw in berlin. there's a company called n26, backed by the likes of peter thiel. you are seeing more app based banks growing in germany. joe: it does feel like there's more of that in germany and europe overall then you see here. is it just a matter of politicians giving the green light essentially to the difficult restructuring that would need to take place and the ensuing job cuts? nick: they kind of have to bite the bullet. they are between a rock and a hard place. the other option of not cutting the jobs means they have to inject a lot more capital. that is taxpayer money if they want to keep the same percentage .f shareholding they have to either accept the job losses or put in taxpayer money. romaine: do you think that the cost savings so far over at deutsche bank, is that enough to at least get them to sort of an interim period b

this case they're basically just waiting and seeing what the legal basis is and the fact that deutsche bank was pretty much the house bank of donald trump was basically because most of the other big wall street banks were not lending any money to donald trump and the longer because some of his and surprises hasn't been that successful so i don't see it necessarily as a big problem for bank it's it's a legal battle that we're seeing right now surrounding president donald trump his family and his organization. definitely a story that set to continue but for now yes stay where you are will return to you in a moment because apple's profits fell sixteen percent to eleven point six billion dollars as demand for i phones continues to weaken the spike that however the company is more upbeat about the current quarter it expects i phone sales to stabilize and china the world's biggest smartphone market and investor. as are increasingly optimistic about its service revenue sales from apple's non hardware business came in slightly ahead of analyst expectations. and we're back with yes quarter on wall s

we all know there are some particular problems for deutsche bank according to many critics. need to be cut the bank'sst business model? >> in my view, there will be a cut in the investment banking business. the question is to what extent the bank can be active every where and in every business. the bank has started implementing a more focused strategy on being active only in certain regions and i think that strategy has to follow even with more force simple because the bank is too small to afford to be active in all these businesses all around the world. >> commerzbank could be taken the by a foreign bank if merger with deutsche bank does not happen. how much of a problem could that create for the german export industry in the event of recession? very important for germany in particular, for a country that is bank based in which companies really rely on bank financing and in which small and medium-sized enterprises need support from banks going abroad. it is very important they also had a bank at their side. at the same time, even with a failing merger, there would still be d

president to investigators and plans to continue doing so deutsche bank said it would have by by all court orders related to the probe yes court that joins us now from new york and it's good to see you now the richer bank has agreed to cooperate with the investigation but cancel a lawsuit actually stop it from handing over the chumps the trunk family's financial records. yeah it's not so much about the lawsuits itself a dodge a bank is sort of caught in the middle of a legal power struggle because that is the big question if in general this congressional committee has the authority to actually force a banker to hand over those information as far as i understand about may sixth bank was ready to give at least them some details and now the trump organization and the president himself and his family are trying to block this bank overall i don't see it having such a tough time of getting any problems with this case they're basically just waiting and seeing what the legal basis is and the fact that deutsche bank was pretty much the house bank of donald trump was basically because most of t

again, according to deutsche bank, the financial communication will not come sooner than towards the pril, and more or less together with a quarterly earnings or perhaps a bit before as to what i'm hearing from the banks currently. back to you. >> annetta, thank you so much for that we can talk about all similar capital levels, and forever at this time a crucial point about how the employees are going to deal with it and put up with it. >> the culture might be different between the two banks. deutsche banc has traditionally been an investment bank. they are internationally geared. commerze bank is a germany focused bank, especially when it comes to the companies the culture is is it going to work in the first place? it's a big question. think about how much that goes even further if you think about a commerze bank uni-credit tie-up >> italian, germans? i don't know >> it's tricky >> coming back to your point about getting the employees on board from a commerze bank side. part of the rationale for bringing these two banks together is obviously the synergy potential that has to involve

see the battle for default, the winner goes to deutsche bank. right now deutsche bank is the risk is when you look at the cdf. we will track to story throughout the day. financial -- financial times is saying unicredit is waiting in the wings if commerzbank and deutsche bank cannot come to an agreement. ifus: it will be interesting you look at the possibilities for cross-border moves, this would be perhaps one of the most significant. great reporting there on the ft story on unicredit waiting in the wings. juliette saly has the latest from singapore. juliette: a little bit of a path after asian stocks hit six-month highs. they been on quite a bit of a rally, but today some weakness led by the hang seng. australia also had a week session but we had quite a big rally in response to that budget announcement on tuesday. a bit of a pullback coming through there. a flat day in india ahead of the r.b.i. rate decision. we are expecting to see .15% cut , but the consensus is what is the governor going to say, is the r.b.i. going to get even more dovish t

they are presumably hoping to find some traces of russian meddling. >> deutsche bank says it is cooperatingrd this described as a friendly subpoena. is this a problem for the bank? >> i'm not so sure. they actually wanted to cooperate for a long time but given the constraints on talking about the client relationship, especially one as important as this one, they were never able to. now that they have been served a subpoena it is a legal requirement for them to hand over the documents so i think for them it is a relief -- they want to put this behind them and get the documents out there to the house and then wash their hands of the story if they can. >> all right. thanks very much. let's get more on autos. the volkswagen ceo says he is quite optimistic about china in the second half despite the world's largest car market posting its first sales bit in decades. he spoke with tom mackenzie. >> we have finished two corners with declines and i am quite happy with the development from our viewpoint because we could turn down that market position this year and cut our market share by 1%. china not

>> and deutsche bank is not just any old bank. >> right. >> deutsche bank has been fined repeatedly for laundering, including money laundering in connection with russia. when i wrote a profile of adam schiff after he became intelligence committee chairman, the first thing he said he was going to do was subpoena deutsche bank to see what the relationship was financially between the president and russia. if that could be determined through the deutsche bank records. now he's doing it and we will see what the record says. >> and this does go into the larger question, as jeffrey points out, of the trump organization and whether it was involved in laundering money from the russians and whether the bank was a part of that. >> deutsche bank issued a statement, i will read it to our viewers, deutsche bank is engaged in a productive dialogue with the house financial services and committees and we remain committed to providing appropriate information to all authorized if you have questions concerning the investigative actiblts of the committees we would refer you to the committees themselves. >>

up next, deutsche bank back at the drawing board. what does the future hold for the banking sector?et's get your top headlines. deutsche bank cuts revenue targets after abandoning merger talks. near termabout growth, both stocks drop. daimler's ceo says he is not content with profit in the first year. and amazon profits surge as focus on the cloud pays off the shareholders are unmoved. -- uber's ipobers dollaree a 90 billion ipo. i'm matt miller in berlin alongside anna edwards in london. anna: let's look at the stoxx 600. 352 stocks to the upside, a slight bias. but look at which stocks are moving higher. better than expected numbers coming through, shaking off a downgrade from socgen. also reporting and a strong day for wirecard. electrolux also reported numbers. interesting stories to the downside. in particular this construction business down by 5.5%. management is talking about a positive outlook for the investor community is not taking that the. -- that view. rbs the second-biggest fallers siding brexit headlines. we got an update for the potential for this to fall citing weat

we caught up with the deutsche bank cfo earlier today. this is bloomberg. ♪ andy: deutsche bank commerzbank are ending talks for a potential merger but that does not mean it is out of the question down the road. bloomberg spoke to the deutsche bank cfo earlier today. in overtimeo industry consolidation will take lace in europe and that deutsche bank wants to be a part of that. the timing and the specific form of that remains to be seen. we have talked a lot about doing our homework to continue executing on our plans, executing on the restructuring of the company, improvement on our shareholder returns. shery: joining us for the latest on this story is our own reporter. how much of a surprise that it was called off? >> never lots of problems associated with the merger. as talks intensified, more problems came to the fore. tons of job cuts, labor unions upset about them, restructuring. the question now is what is next for the firms. amanda: and what is the answer to that? we got the indication that the door is not close forever, things may

would raise a lot of money because deutsche bank does not want to sell their asset management, they want to make it bigger and more profitable >> excellent thank you for weighing in on the latest developments. another angle to the deutsche story. we will be closely watching. >> well, coming up on the show, investors hit the road after japanese carmaker nissan hits the brakes on its profit outlook. we'll cross live to tokyo for the latest what's a target date fund? 529 plan? a 10-k? what's an etf? an ipo? 401(k)? where do i start? empower yourself with the free tools and resources on investor.gov. before you invest, investor.gov. yand you want to getr an excellent price you'd think with all these options it would be easy. but with terms like msrp, invoice, list price, things get confusing pretty fast. you just want to get a real price and that's where true car comes in. only with true car can you see what other people paid for the car you want and you can connect with certified dealers who offer prices based on this same information. none of those other sites do that. from end to

i will put up a chart here comparing jp morgan with citi with deutsche bank. really going nowhere. they will not be able to get that moving up with just cost cuts, right? elisabeth: yes. it is a challenge for european banks generally, and the interest rates environment hasn't helped to them, but there are other european banks doing better than deutsche bank. it is possible. they need to build up the diversification of their revenues because, compared to the other european banks, they are more dependent on the more volatile investment banking, market related activities. have something of a home market advantage because the u.s. capital markets are so moreand that provides a stable revenue base for them. it is tougher for the european banks. carol: i do wonder about, with deutsche bank, in some regards as they look to do diversification, they also need to move into areas where they might be able to have riskier plays, and the potential for rewards. in their current state, they can't do that. regulators are watching them very closely. how do they grow into other b

deutsche bank has to explain how it will increase capital to get the deal done. n't think qatar will be enough. the government is likely to be a part of this new bank so taxpayer money is at risk, too big to fail is at risk. -- it willnk we will mean less competition and from a business perspective, five to 10 years to get this integration done. synergies are too old by then and i.t. is too old by then. matt: at least five to 10 years. deutsche bank has been integrating postbank for a decade and that is nothing compared to a commerzbank purchase. qatar owns 5%, the government owns 50% of commerzbank. would form aa this national champion and meanwhile, germany is supposed to be behind integration of the european union. why wouldn't they push for more cross-border deals rather than creating these big strong national champions? danyal: that is an interesting point you make because macron is still waiting for an answer from germany. what is our vision on how to develop the european union from a financials perspective? i think the top job of the minister of treasury an

we have the merger talks at a level between deutsche bank and commerzbank, another german bank, and a dws, now in exploratory talks with other asset management about teaming up. , but unlikely to be a sale each bit of deutsche bank seems to have its own little plan to grow, and dws certainly needs to grow to scale business, and i think that is where we are at now. vonnie: so what happens next, steven? steven: the ws is in talks. it is -- dws is in talks. it is unlikely they will make a decision on this before the commerzbank deal is decided. they will make an announcement whether to go ahead with the talks with commerzbank before they unveil first quarter results next friday, so that is going to be the next big development in this saga that we are all waiting for. guy: who would be the best fit? is it ubs? or does it not matter? steven: that is a good question. each asset manager has their own advantages. anotherously reported interested in dws, too. i don't know if that would be a add ait, but it would very strong asset and wealth management business. wherek the question is can i get

stance. >> deutsche bank must cooperate. this is not a thing the president can oppose as he tried to do in other avenues. deutsche bank is going to turn these documents over. and trump is likely going to argue that even if he did inflate his assets, that it was a reasonable estimate, that there are many ways of valuing assets and that even if they were inflated and even if it was wrong that the bank never really took them seriously, never really relied upon them or those particular inflations when the bank issued a loan. so that might be what trump says in defense. however, any time, any time a citizen has a bank turning over his or her records to an attorney general or law enforcement agency that's always going to be a problem. >> thank you. >>> still ahead, everybody, we're learning new details about the suicide bombers involved in the coordinated attacks in sri lanka. >>> and candidates make a pitch to women of color. >>> those stories and a check on your weather when we come back. sometimes, the pressures of today's worl

congressional committees are looking in to deutsche bank they are subpoenaing information between the bank donald trump and his trump organization and they are specifically looking for any information having to do with transactions involving suspected money launderers from russia and eastern europe this is not like the robert miller probe which was looking into possible collusion between the donald trump campaign and russia this is looking into financial ties between president trump and his organization and other countries now donald trump was a bit of a pariah in the banking industry he had a defaulted on long lines his company had declared bankruptcy as nevertheless he managed to get deutsche bank to lend him two billion dollars for various projects and at the time he was either took office as president there were three hundred million dollars in active projects funded by georgia and just to give you an idea of what a bad risk he was at least perceived to be in order to build trump tower in chicago who needed five hundred million dollars and he was willing to secure that with forty

deutsche bank is in talks with german and a command sponsor over a possible merger and a decision could come as soon as next week and that's according to local media reports observers initially expected talks to continue until the end of the month and the potential of an early decision has piqued some competitors interest italy's unicredit is reportedly eyeing a bit of its own for coming out. of a war and that i'm now joined by john l. duma lound with joins us at the from food stock exchange first of all i mean this is quite an interesting turn of events there did anyone see that coming. indeed well unicredit has a history of wanting to buy as early as two years ago it approached the german government in order to save in order to say so bearing in mind that the german government is committed its banks largest shareholder it abandoned the plan amid its own restructure but clearly it's resurfacing today what's interesting to note here is the reporting that when a credit is prepared to wait for the failure of the. talks before proceeding on its own now shows you the credit doesn't want to

deutsche bank's investment bank has been troubled for quite some time. last year, we have heard a cost-cutting story from deutsche bank, but investors are going to want to hear how the .evenue story is >> of course, we have seen european banks falling far behind wall street. >> it's funny you say this also because u.s. banks are also expanding pretty aggressively into europe as well and in light of brexit and whatnot and all these changes in germany, it is interesting to note that morgan stanley, bank of america have all been increasing their presences. as european banks have been struggling, at the same time, you see the u.s. growing and also getting a little bit lighter on regulation here, .iving them even more headwinds >> thanks for that. gets china's president ready to sell a revamped version of his signature infrastructure plan to global skeptics. we speak to an eu vice president. this is bloomberg. ♪ i'm all allen in sydney. shery ahn: you are watching daybreak australia." chinese president xi jinping will defend his flagship infrastructure projec