they are engaged in a club to crack a crony capitalist nightmare so deutsche bank as we've been saying now for 5 years was the most likely of the major banks to go bankrupt and require a bailout the state of germany has now provided deutsche bank with a state bail out the bad banks in the area is masking a bailout and the accounting fraud at deutsche bank is only now just being revealed. at the tip of the iceberg this they're sitting on half a quadrillion worth of worthless to rivet that if you mark to market. would be greater than 5 times global g.d.p. this is in fact the beginning of lehman $2.00 this is why gold goes up in price because it's discounting a major economic collapse this is why bitcoin which is the virtual digital version of gold the matter what peter schiff says no matter what michelle block says it is gold to point out that's now definitively been the case don't come at me with all of your crazy conspiracy nonsense and so we enter into another phase of the global financial crisis right now deutsche bank the tip of the spear as we've been saying for years. only keep mo

information on this from stacy harbor well we began this week with a new bad bank and that is for deutsche bank's bad bets they're going to be poor and into a new bank a bad bank that the taxpayers of europe will now be responsible for busy a 50000000000 euro bad bank soon owned by the german state aka taxpayer finally deutsche bank is facing its future head on what's left of the mighty deutsche bank that's the front page of the financial times on monday and it was that announcing what we suspected would happen 10 years ago when we 1st started for all those happy days ago you know they got the lehman brothers collapse happen you know and that was the result of insolvency but we were told that it was a problem of illiquidity and we were told that lehman brothers and bear stearns and the wall street banks had done nothing wrong that it was just crazy unfortunate freak accident that they ran out of money suddenly because of all the bad loans that they made to people that couldn't possibly pay them back and that they taxpayer in the global economy should take a step back and 17 or 18 trillion dollars

only keep money in deutsche bank you're willing to lose the banking system is about to implode we're on the cusp of of a nightmare. it's easy to predict if you're willing to look at some simple facts this show kaiser report has been airing for 10 years we started back in 2009 during the midst of the crisis this is the deutsche bank share price this is in 2008 down to 2009 while all the intervention by the central banks as been keeping some of it afloat now down to 95 percent since this 2008 high one thing that has been happening since the beginning of the financial crisis this early on we had this debate of inflation versus deflation. you know we had a split evenly split between our guest some said it was going to be inflation some said it's deflation certainly this shows that we've had deflation across europe for the past 10 years there has of course been inflation in the select assets own by the top one percent on on whose behalf that central banks operate so you've had high and property prices in all the major cities around the world busy you've had the value of our prices and you

let's get back to deutsche bank. reports out that deutsche bank is preparing to cut as much as half its global workforce in equities trading, part of a broad, another broad restructuring to boost profitability. bloomberg's german banks reporter joins us from frankfurt. what are the details of what we know about the equity business? guest: it is clear that the cuts that have not been decided yet and have not been announced yet they will focus on the business outside europe. the whole plan is part of an overall strategy to focus on deutsche bank more in europe. the parts that are considered less metal will bear the brunt best less vital -- less vital will bear the brunt. the question is how much of the equities business will still remain at deutsche bank. guy: are they done in equities? is that it? guest: pretty much in the u.s.. i think what they will likely still do, we have indications that they will keep intact a skeleton operation to still be in want to service european large clients. for example if they have any

the letter was sent in response to a "new york times" article that said specialists at deutsche bank ended that transactions by legal entities controlled by president trump and jared kushner be reported to the federal financial crime regulator, managers at the bank did not then report those transactions. the senators write "only by conducting a thorough review of the full range of this activity can we better understand what happened in these cases, what patriotics, procedures and personnel made need to be changed at the bank and what regulators should do to ensure the regulators compliance was laws." they ask for information about their interactions with deutsche bank including whether they have investigated the issues that several former bank employees publicly raised in that "new york times" article. joining us now is the author of that letter, democratic senator chris van hollen of maryland, a member of the senate budget committee. thank you very much for joining us tonight. so this letter strikes me as a follow-up, natural follow-up to that "new york times" reporting and what exac

in deutsche bank they are scaling back on equities to focus on fixed income. global transaction bank, retail, and a transaction bank. let us not call this a large-scale retention -- retrenchment. we see fixed income rise significantly. peter is ahead of equities. james is the head of that unit. he is asked income. -- fixed income. they will have to watch out where they are using this moving forward. we still see that in leverage finance, for example. guy: great reporting, fantastic reported -- reporting. let us turn our attention to the oil market. it is time for futures in focus. russia is in favor of extending oiluts, but iraqi's minister is saying not so fast. he spoke in an exclusive interview earlier. >> all over, i am supportive of that, i would not say it is a foregone conclusion, not yet definite. plus, there are other ideas a cut of 1.2 may not solve the deals, may not really rightly. guy: remember it is opec on onday, tech -- opec plus tuesday. we have someone from the cma joining us. how important will the opec meeting be setting the tone for oil goi

xetra dax up about a third of a percentage point one name in particular we're looking at is deutsche bank. that name is close to the top of the stoxx 600, up 4.5% this after not failing the u.s. stress test. that was taken as a stamp of approval for that bank in particular that has been plagued by multiple bad stories over the last year. today it is a good day top of the dax there cac 40 relative underperformer then we have the italian index around flat. so no major moves today at an index level. let's talk about the sector breakdowns let's see where the under-performance is coming from oil and gas. no surprise there. the spot price of oil is trading about a half percentage point weaker today that is in anticipation of the upcoming opec meeting and whether or not those production cuts will be extended. the sector as a whole is trading weak today down 0.6%. telecoms down about a quarter percentage point a few developments there the french telecom holder orange has sold the rest of its stake in bt. as a consequence bt is trading weaker we have other defenses at the bottom banks also down af

deutsche bank shares, up 3.5%. ading at 6.79 euros, but is it a positive that all the banks passed the stress test? is that market good for this rally? good: clearly, it is a sign because over the past five to seven years, you've seen pressure put on banks to improve their capital ratio and liquidity ratios. banksclearly showing that are effectively doing the hard work of improving the quality of their balance sheet. ultimately, the problem will become the level of interest rates so if you look at the eurozone, negative interest rate has been a drag on margins and explains some of the underperformance of the sector mostlearly banks are the exposed to the gdp of an economy and this could clearly be a factor to bear in mind, as well. anna: one of your contrarian his long european banks. , interesting you are talking about the supportive nature of central banks and the way they have become more dovish months -- in recent months. how set in stone is that? i was interested looking at five-year five-year five-year inflati

equities across the region they trade very badly so the fact that they're not just isolated at deutsche bankequity for all intents and purposes is a doughnut, it's a zero, it's going there, they can't even merge with the other biggest bank in germany when they were told to do so by their regulators so to me, i actually think just look at the equities telling you that the problems are far from over. >> so, the eufn is the etf you can use that actually gets you exposure to the european banks, dan points out, down 86%, especially in essentially cap weighted terms because of all the delusions since the highs and before the crisis. so it's been an ugly trade longer term but as bob pointed out, the balance sheets aren't as bad as people think your biggest issue that the net interest margins are terrible because of where yield curves sit in europe right now. until that gets better i don't think you're going to see much on eps but is there a value play there on a balance sheet, yes. >> there might be but i still think the equities have a long way to go but look at the credit default swaps, they're n

well the share price of deutsche bank is on the rise this monday so obviously few investors out there believe that there's no reason to worry because of this new bad bank and you know get hurt and like the last bank that deutsche bank had put in place between 20122016 this new bad bank it's not supposed to contain toxic assets assets that the bank is unable to sell on the financial markets because nobody wants to buy them no the assets in this bad bank you can sell them on the markets but they have become useless for a bank because of their more stringent treatment under new regulations introduced after the financial crisis so the fact that the back is getting rid of them here is actually positive it means that the bank will become a bit less risky bit safer but is there any hope you're measuring that the share price is slightly on the rise today is there any hope the dodge's share will ever return to its former glory of 100 plus euros. heart you will not get a recommendation from me not only because i'm a journalist i'm not supposed to give recommendations it's very very difficult to

map: deutsche bank is reportedly considering setting up a 50 billion euro bad bank unit.seen as part of an overhaul of their trading operations as ceo christian sewing shifts germany's biggest lender away from investment banking. there are reports that their equity in rates treating businesses outside of europe may be severely shrunk or even closed. >> if you want to cut a certain area of the bank, it's a natural decision to take assets you don't want anymore because of the business you are closing or shrinking, you put them into a bank, which changes the way you operate with those assets. then people have an incentive to work within it so they are still profitable. it also changes the way you work with the stuff in there. >> it was clear for a couple weeks that there would be cuts coming in the equities in general, are a candidate for that. the question is to what degree do european clients still want to maintain access to the u.s. capital markets. they have to maintain at least some way of offering their european clients access to u.s. equities. anna: deutsche bank is c

anna: deutsche bank is considering a senior job shakeup . the ceo is purging executives under his predecessor. he is considering replacing his finance chief and investment banking head. this must make uncomfortable reading for senior executives over at deutsche bank, but will it come as a surprise? steven: it does come as a bit of a surprise. there has been a lot of speculation about the head he , was on his way out last year and then instead got off on a promotion. he has stayed on since. the cfo speculation is really new and is a big surprise and , definitely they are considering a big shakeup, and we will have to see if it turns up as big as he's considering. guy: deutsche bank reportedly facing criminal investigation over money laundering allegations. according to "the new york times," they refused to comply with laws meant to stop money laundering. some of the transactions been reviewed are linked to president donald trump's son-in-law, jared kushner. what is new here? sree: this is one of the strands trends of several overlapping invest

matt: deutsche bank is reportedly considering setting up a 50 billion euro bad bank unit.is seen as part of an overhaul of their trading operations as ceo christian sewing shifts germany's biggest lender away from investment banking. bfp also reports that their equity in rates treating businesses outside of europe may be severely shrunk or even closed. steven: if you want to cut a certain area of the bank, it's a natural decision to take assets you don't want anymore because that part of the business you are closing or shrinking, you put them into a bad bank, which changes the way you operate with those assets. if they are still in the investment bank people have an , incentive to work within it so they are still profitable. it also changes the way you work with the stuff in there. nicholas: it was clear for a couple weeks that there would be cuts coming, and the equities, in general, especially u.s. equities are a candidate for that. the rates business as well. the question is to what degree do european clients still want to maintain access to the u.s. capital markets? do

deutsche bank is considering setting up a bad bank unit. he financial times, they could hold as much as $56 billion of risk-weighted assets. the plan includes shrinking or closing deutsche's equity and rates trading businesses outside of europe. that is the bloomberg business flash. tom: david rally with us. we are thrilled to have with us lisa martinuzzi. , want to cut to the chase there are two key questions. 14% of the balance sheet. you and i went back and forth. when you narrow it down to what is on the balance sheet you get as much as 21% of the balance sheet. if -- is that true? >> we are talking about the investment bank balance sheet. according to the story, this would be derivative but not so core toxic assets. that would mean it wouldn't cost them too much. tom: what do you hear about employment, particularly in new york city? you cut the balance sheet, by definition you cut jobs. ,o they do it in the margin little bit here and there? >> yet to read a little bit in between the lines. it does appear the u.s. is where the business w

one judge ordered they are valid and deutsch bank has to comply. trump and his lawyers are trying to get the appeals court to stop and block the subpoena and stop deutsch bank from handing over his records. they protested and the "new york times" reports what starts as a russian moan laundering investigationa at deutsch bank has been an investigation into something very specific and related to high ranking white house officials. it is become an investigation into whether or not deutsch bank broke laws or had crimes in suspicious activity reports that its employees prepared about possibly problematic transactions include being some linked to president trump's son-in-law and senior adviser, jared kushner. both the kushner family real estate business and the president and the president's businesses have been deeply involved in financing deals with deutsch bank. the time his previously spoken with whistle blower who is allege deutsch bank employees flagged transactions involving the kushner family business and trump business entities flagged them as po

the "new york times" report that is the fbi recently contacted the lawyer for deutsche bank, whistle blower, tammy mcfadden. a specialist at the bank told the times she flagged transactions involving mr. kushner's family company and that bank managers decided not to file the suspicious activity report she prepared. the fbi identification of deutsche bank is following a similar track to two committees. house oversight and financial services committees. both of those are investigating deutsche bank's relationship to the president and his family including records connected to the bank's handling of potentially suspicious transactions. politico reports in total, trump faces at least 15 criminal or civil inquiries by nine federal, state, and local agencies into his business, his charity, his campaign, inaugural committee and personal finances. in a closed door interview with house judiciary committee today, a white house lawyer and justice department lawyer advised former white house staffer, hope hicks, not to answer questions about anything involving her work in the white house. hope hic

is deutsche bank popular? it is a smaller bank. deutsche bank is still big in germany.ed pan-european focus. lost a long time ago. the volatility in trading, margins only go one way. move that way. francine: what happens to the chief executive? will we hear from him in the next few months? jonathan: i think about barclays' jenkins. wholesale banking problem. if he does not say we need to change the game, he is not the right man for the job. if that is not the story, he is not the right guy for the job. in general, how much does this have to do with the ecb? , even ifhese banks they do a better job focusing on the business model, are catching a break. shows thathink it there are side effects of negative rates and low rates. the nonfinancial sectors, but the financial sector profitability is impaired by where rates are broadly. interestingks to an aspect of this rally we have had your to date. ands led by defenses quality stocks, not by cyclicals or financials, not the things that usually signal a stronger and longer running bull market. that is a risk over the summer, if

joins us from frankfurt so this is more bad news for deutsche bank can you tell us more about the transactions being examined in the probe. more bad news for doj a bank and i guess i can tell you know that traders here in the financial world in frankfurt are used to these very bad headlines but this headline could really bring the lender even more in trouble because it is related to the u.s. president we have to remember that donald trump has been creating of all his financial situation quite a mystery during his campaign but also during the last year which made people wonder if he could be possibly involved in question of the transaction so if this really turns out should be true that by 2016 a former employee of torture alerted the management of all transactions off trump's son in law or jarrett cushion a true individuals in russia without any consequences that those transactions were made this could put the bank in a very bad light the lender by the way they did not want to comment about further about the allegations they only said today that they're fully cooperating with the authorities i

it's a bank called deutsche bank that has also come under scrutiny by law enforcement and congressional investigators. not only for that russian money laundering problem they're already on the hook for. they've also come under scrutiny for the bank's somewhat inexplicable long financial history with president trump and his businesses. just yesterday the president's lawyers filed this lengthy argument in the second u.s. circuit court of appeals trying to block deutsche bank from handing over records related to trump and his businesses. records that have been subpoenaed by congressional committees. one federal judge has ordered those subpoenas are valid and deutsche bank has to comply. trump and his lawyers are trying to get this appeals court to stop that ruling, to block that subpoena, to stop deutsche bank from abandoning over his records. now david n. rich and william rushbaum report what started as a russian money laundering operation at deutsche bank has now become an investigation into something very specific and related to high-ranking white house officials. it has become an inves

deutsche bank may exits u.s. ding business and create a bad bank to wind down legacy assets. bloomberg has learned that is part of a broader overhaul to be announced next month. the bad bank could hold $56 billion of risk-weighted assets. another turnaround plan after years of failed efforts for deutsche bank. sales of closing retailer h&m the sweetest company has been trying to reduce a buildup of inventory to end a slump in earnings. h&m has struggled because it's clothes fell out of favor with shoppers and has been investing heavily in online. aftershocksng the from the chief economist use of the phrase chinese pig. a chinese corporation has decided against hiring ubs for dollar bond sales. bloomberg has learned that was prompted by the pig remark. that is your latest bloomberg business flash. time for the stock of the hour. , sharesarray biopharma of nearly 60% after pfizer agreed to buy the company for $10.6 billion. kailey leinz is euros more. what does it have that pfizer wants? kailey: it is all about canc

deutsche bank is in the spotlight again this time regarding alleged criminal mishandling of its anti money laundering regulations according to a report by the new york times investigations are under way as to how the bank handled transactions labeled suspicious by employees the transactions include something to donald trump's key adviser and son in law jared pushed or a former employee told the newspaper that the bank failed to file a report with the u.s. treasury even though she's like some transactions involving questioners company suspicious back in 2060. joins us from frankfurt so this is more bad news for deutsche bank can you tell us more about these transactions flagged up in the probe. yeah exactly more bad news for the bank and more bad news of course also here for traders who are used to those negative headlines from daughter back but this headline could bring the lender even more in trouble because it is related to the u.s. president we have to remember that donald trump has been creating about his financial situation i quite a mystery during the last years which made many

a rare win for deutsche bank which has failed past tests. the bank also saying it will cut half of its global equity jobs thanks to [no audio] note a prize to anybody. what is a surprise is how much of a raise in their pay is to investors after definitely something that was well more than expect it. speaking of quibbling, there is some concern that banks are increasing their payouts just as the economy may be getting into a more precarious place. it is not that everyone is thrilled. everyonee up for today, investors have something to be happy about because of the high payouts. one thing that struck me was goldman and morgan stanley have been able to return so much to investors, even in the year where they are doing their largest deal since the financial crisis. taylor: does this mean we are in the all clear? once you pass the fence stress tests, we can breathe? there have been concerns about the dovish tilt, cutting rates. can we rest assured that rates are ok? >> that is a great question. in a couple of weeks we have bank earnings. a lot of

and also the credit rating of deutsche bank has suffered pretty much so deutsche bank really had to do something in order to increase the quality of its capital this is what has happened the capital buffers have been increased and now inside as a deutsche just say that the bank has the capital and liquidity quality to really make this step to get rid of those you know owed assets beforehand it would have been able to do so you're gonna you mention the problem with the banks credit rating it's long been considered a takeover candidate what's it looking like right now. it's become less likely that the bank gets some sort of takeover offer a such a takeover offer would also have to come from outside germany here in germany we don't have you know banks that would be able to afford such a takeover but also you know banks outside germany know that having the word deutsche in its name is you know a bit of a protection for the bank this brand name means that though it really has to be managed from inside germany and cater to its german clients conrad thanks so much for that update from f

banks have been in the crosshairs as the fed releases their stress test with surprising news about deutsche bankn particular. that is coming up and this is bloomberg. ♪ david: you are watching "ounce of the power." i'm david westin. we're watching the banks. and withleared them $130 billion going back to shareholders. i'm joined by abigail doolittle. abigial: we have a rally with these banks. the overall message of the stress test with the comprehensive analysis and review that the banks are extremely well-capitalized. that means they can pass along capital to shareholders, more than $130 billion, far more than last year. investors are lighting that a lot. all 18 banks passed and there were a number of surprises, including goldman sachs who raised their dividend. we saw jpmorgan returning $30 billion. that would is expected to come in closer to $20 billion. lots of good stuff going on. investors cheering the fact that these tests were passed so handily. david: all of them past, including deutsche bank. abigial: a stamp of approval for deutsche bank despite the headlines. we have one of those aga

coming up here on this program, deutsche bank is an investment bank.owing number of employees, the top are being investigated. we will have more on that story. that is next. this is bloomberg. ♪ ♪ guy: from london, i'm guy johnson. vonnie: from new york, i'm vonnie quinn. this is "bloomberg markets." guy: more woes for deutsche bank. about 80 current and former employees are being investigated by german prosecutors, accused of being part of an alleged tax fraud. joining us from frankfurt is steven arons. 80 sounds like a big number. how many of these people are at risk of prosecution? i am wondering how many of these to find their eyes under german prosecutors. what deutsche bank has said about the probe is probably very true. they named everyone basically in the probe. anyone named in any document they have, so it is very hard to fit any of the people who will actually end up adding their verdict. we don't know yet, but it is interesting and an important developing for the bank, showing how much it still continues to suffer from all of the legal woes.

. >> deutsche bank once again back in the news. the head of the investment bank.ad of the investment bank last week because at the head of the general meeting. he did not get a resounding vote of confidence from the shareholders. now the reports are that he is included in this expanding probe. there were rates on the deutsche bank offices because of -- raids on deutsche bank offices because of allegations of tax abuse. he is now reportedly included in that investigation. what role he may or may not have had in that, but garth ritchie is under seizure. deutsche bank is having a really hard time of it. their stock is down. it is really quite stunning how far it has fallen. one of our viewers wrote in and said why aren't you paying attention to the difference between market cap on deutsche bank and twitter? twitter has more than twice the market cap of deutsche bank. who would've thought? >> a big bloomberg scoop, boeing is said to be negotiating one of the largest ever orders for twin aisle planes with china. the deal could include about 187 dreamliner's the 777, th

this is deutsche bank doing its bit. steven: right. 's a natural thing to do if you want to cut a certain area of the bank. it's a natural position to take assets because of how the businesses are closing or shrinking. you put them into a bad bank because it changes the way you operate. if they are in investment bank, people have incentive to work with them if they are profitable. it's an accounting thing and changes the way you work with the stuff in there. matt: how soon do you think we're going to hear about these possible closures, and what would that do to their payroll? they've got 93,000 employees now. if the close equities and rates trading outside of germany, does that cut that number, substantially? steven: it doesn't make a huge dent in the payroll. it does, probably, change the way the cost structure for the investment bank. but that's why the non-core unit. you can just cut the people if you still have assets on the balance sheet that costs money. you have to do it in one go. the two things, two sides of the same coin, and

let's focus on unwelcome news for deutsche bank. ities are investigating whether it complied with laws meant to stop money laundering. the investigation includes a review of its handling of so-called suspicious activity reports. senior eu banks analyst. just give us your reaction to the latest news in terms of how this as to the challenges for deutsche bank. >> we don't know anything new. we were aware of the money laundering question anyway. nordics,across the this is an going away fast. very little to add. it's a topic that we knew was coming up. from the outside, you can't have any rallies. we know nothing 12 months into the whole affair. you have share prices that continue to get hit. deutsche has its own from dust problems. is the update in july enough? can they turn around profitability? nejra: we have heard news about possible changes in leadership. could it provide support to the stock price? >> it has to be substantial. 50 assets,g about 300 billion plus, it's not big enough. there was a story yesterday talking about 25% of

they weren't in the chain of command they were in the private banking part of deutsche bank. so what we asked chair brown, senator warren and others of us on the banking committee have said to the federal reserve and the federal reserve bank of new york that is supposed to oversee deutsche bank, we want you to investigate. do your job -- >> what's it going to take to make that happen. >> we're going to stay after them. i wrote to them last year asking for assurances that they would remain independent and they would do their job, this is the federal reserve with respect to overseeing deutsche bank. they wrote me back saying absolutely they will investigate when there's evidence of wrong doing. they're an independent body. so this is their test. the test is whether now, as the regulator of deutsche bank they investigate these very credible claims from a whistleblower about potential money laundering from these trump controlled enentities. we want the federal reserve to investigate, we want to get the documents from deutsche bank. >> as all of these versio investigations are goin

deutsche bank may exit its u.s. equities business. mberg learning that is all part of a broader overhaul to be announced next month. the bank could hold up to $56 billion of risk-weighted assets. ubs still feeling the aftershocks from its chief economist's use of the phrase "chinese big." the chinese railway construction deciding against bond sale.or a alix: i find that story to be totally fascinating in that, regardless of the motivation behind paul donovan's move, it really highlights the lack of cohesiveness between china and western countries in terms of how they even talk and talk to each other. david: is it just the absolutely wrong time and place right now because of tensions, or just an --stration of the law of the lost in translation between cultures and like witches? -- and languages? alix: a bloomberg opinion columnist wrote a really creepy on this. you could say that the response -- a really great piece on this. you could say that the response is heavy-handed, but a couple other banks got kicked out of different countries i

we're looking at five euros, $.94 for deutsche bank, a three-month chart.k you about that right now. -- i'm not going to ask you about that right now. yet another new low in deutsche bank stock. stephen isaacs is going to stay with us. we have a lot more to talk about with stephen. up next, we bring you the stocks on the move other than db kay, including i fx, infineon on. it is buying chipmaker cyprus in a deal that values the u.s. target at 9 billion euros, just under 24 euros a share. this is bloomberg. ♪ anna: welcome back to the european open, 12 minutes into the trading day. this is the big picture. if you are long the market, it is not pretty. the ftse 100 down 9/10 of a percent as the dax down 10%. let's get your individual stock movers. dani burger has those for us. dani: big movers this monday. infineon on, on reports from bloomberg's, looking on buying cyprus semi. the deal would be valued pretty heavily, almost $10 billion is what they would be valued at. we usually see the fault anyway, but perhaps they are paying too much, 50% premium over the

that sounds like a lot of money but if you think back to 2012, boich dank -- deutsche bank had done this0 million euros and noncore assetsle this is cleaning up problems not creating a growth strajectry. the bath here will be focusing on the transaction bank. more on the retail unit. that hasn't been sold yet in these stories. paul: investment banking reporter, thanks for joining us. boeing says it's open to dropping the max branding for its troubled 737 plane as it tries to regain the trust of ages -- airlines and travelers after two fatal crashes and global grounding. speaking to bloomberg at the paris air show, c.e.o. den necessary monoberg says he sees -- planes back in the air by in 2019. >> we're focused on safety. that's the tone for the entire show. we are making good, solid progress to on bringing the max back up. working on the certification simulation flying this is week. thope ski july a flate test, certification flight shert shortly and get the planes back up in the air. all this is being done through the lens of safety. we will take whatever time is necessary to make sure t

. >> deutsche bank once again back in the news. e head of the investment bank last week because at the head of the general meeting, he did not get a resounding vote of confidence from the shareholders. now the reports are that he is included in this expanding probe. there were rumors of raids on deutsche bank offices because of allegations of tax abuse. he is now reportedly included in the investigation. what role he may or may not have had in that, but garth ritchie is now under seizure. deutsche bank is having a really hard time of it. it is really quite stunning how far it has fallen. one of our viewers wrote in and said why aren't you paying attention to the difference between market cap on deutsche bank and twitter. twitter has more than twice the market value of deutsche bank. who would've thought? >> a big bloomberg's scoop, boeing is said to be negotiating one of the largest ever orders for planes with china. the deal could include about 187 dreamliner's the triple seven that, the newest and most expensive long-range jets in

problem, keeping good people has been a problem for deutsche bank for a while. position. they have been in a restructuring mode for a long time. people are faced with a loss of uncertainty. the bank has cut one trading unit after another. if you are working in one, you may think you have a job for another year, and then they unveil something else. so the uncertainty has undermined morale and become a problem. but it has been a problem for a long time so i'm not sure it will accelerate even more now. anna: thanks very much for that. bloomberg's german bank reporter from frankfurt. up next, max confidence. iag agrees to buy 200 boeing jets, the ceo saying he would get on board one tomorrow. this is bloomberg. ♪ matt: welcome back to "bloomberg markets." right now, we are about 55 minutes, almost a full hour into the trading day. ec red arrows across european equity indexes. not huge drops, but about .2% of , bounce down, if you will because of the big gains we had a yesterday. 2% gains yesterday across europe. maybe because traders sit on their hands a little bit

we've already announced, as well as imposing the new ones that is temporarily suspended. >>> and deutsche bankmp on report the bank is preparing a major overhaul of trading operations, including plans for a bad bank that would hold tens of billions of euros in assets. >>> well, the picture for european equities today is mixed, if not slightly in the green for the most part. we've got the xetra dax tipping into the green muted gains for the early trading session for the start to the week this after a moderately positive week last week, as well. in terms of the news flow over the weekend, a little slight, but there have been comments from secretary wilbur ross to cnbc earlier today, also warning a deal at the g20 is probably a high bar to get to the trade deal if anything, we should -- investors should look to more discussions when it comes to the two sides. in terms of sectors, a couple sectors we're focused on today one is the travel sector we have one name in particular, lufthansa, down more than 10% today. it is dragging down all the airlines also one of the reasons xetr xetra dax is relativ

debra: deutsche bank is considering setting up a bad bank unit.d eventually hold up to 50 billion euros according to the financial times. the plan is part of an overhaul to the trading operations. the rebound isn't finalized, but they could see the shrinking closing of deutsche's rate trading businesses outside of your. and that's your business flash. nejra? nejra: thank you so much. make keyank leaders decisions against the challenging backdrop of a trade war. dani burger has the details. taken away. dani: it all starts today. they are meeting and portugal. we have seen draghi use the buting to sway investors, how does the ecb react to the slowdown risks, especially given relative lack of ammunition? just as they are talking, we get the fed decision was day. economists expect them to keep rates on hold, but we'll be listening to language that spells out the path for cuts if the trade war creates headwinds. thursday, we get a boj and boe announcement. analysts don't expect changes here, but one of the interesting things, we'll see if policymakers

all 18 banks, including in battled deutsche bank, past the fed's test. is is bloomberg. ♪ mberg. ♪ alix: all 18 banks pass the second round of stress tests, good news especially for deutsche bank. joining us is bloomberg intelligence's senior bank analyst. what were your takeaways from yesterday? one is we think the fact that they are showing progress on their process in the ,.s. is a key posture especially among some any negative headlines and concern over the past year or so. from the u.s. bank perspective, goldman wellhead of estimates. all the banks basically meeting or beating. goldman was the biggest surprise, especially its dividend was really positive, giving support to sustainable earnings confidence for them, and i also think sort of sending a signal to different types of investors that actually look at dividends, dividend yield that is more competitive with the other peers. jp morgan, bank of america, still over 120%. i think the fact that their payout was better than expected is also positive. bank of america's payout ratio perhaps still the m

information on this from stacey harbor well we began this week with a new bad bank and that is for deutsche bank's bad bets they're going to be poor and into a new bank a bad bank that the taxpayers of europe will now be responsible for a 50000000000 euro bad bank soon owned by the german state aka taxpayer finally deutsche bank is facing its future head on what's left of the mighty deutsche bank that's the front page of the financial times on monday and it was that announcing what we suspected would happen 10 years ago when we 1st started for all those happy days ago you know they got the lehman brothers collapse happen you know and that was the result of insolvency but we were told that it was a problem of illiquidity and we were told that lehman brother.

information on this from stacy harbor well we began this week with a new bad bank and that is for deutsche bank's bad bets they're going to be poor and into a new bank a bad bank that the taxpayers of europe will now be responsible for a 50000000000 euro bad bank soon owned by the german state aka taxpayer finally deutsche bank is facing its future head on what's left of the mighty deutsche bank that's the.

are your biggest concerns for deutsche bank? do you think the biggest challenges are faced by the german lender? question: the downgrade saidcted our view as you that the bank continues to face challenges in stabilizing its business model and in improving its profitability. deutsche bank targets a return of tangible equities of 4% for 2019. after the first quarter results were earnings were hit by the week markets, we believe that will be difficult to obtain. more important, that means reaching the longer-term target of 10% is quite far away. the question here is is the business model being put on a sustainable way? anna: good morning. you talk about what the management had to say about changes but you seem to be skeptical that further restructuring can be implemented. why the skepticism? evolvingour outlook is and that shows that we believe the rating will change in either direction, up or down over the next 12 to 24 months. management has made announcements that they are focusing on profitable as this is that they are willing

twitter has more than twice the market value of deutsche bank. who would've thought?be negotiating one of the largest ever orders for planes with china. the deal could include about 180 and most newest expensive long-range jets in the catalog. however negotiations could stumble on the escalating trade war. our aerospace team leader joins us. this headline is pretty surprising to me. one, you have the continuing trade tensions between the u.s. and china, two, china was pretty active when it came to the grounding of the 737. how long has this conversation been going on? >> it has been going on for a while, and even though it has been taking time, how reporting suggests that no deal is imminent. obviously the trade tensions are very much weighing on all the discussions. that said, the fact that they are going on at all shows how the u.s. and china are still dependent on each other when it comes to airplanes. you have boeing with the triple seven under discussion, that's a crucial market, and china needs all the planes they can get because air travel is growing so fast as

alix: i'm taking a look at deutsche bank.alks about federal authorities now investigating whether deutsche bank complied with some laws that were meant to stop money laundering, as well as other crimes. it is the latest misconduct, whether here or in europe, that is continuing to play deutsche bank. who is and what role anymore? i have no idea. to seei wouldn't want their executive search bill or their legal bill. the third come at a watching his american airlines and airbus -- the third company we are watching is american airlines and airbus. with us now is brooke sutherland. yesterday it was all about going. now it seems -- all about boeing. now it seems to be all about airbus. brooke: that's right. airbus stepping in with a great order from american airlines for its new jet that it unveiled at the air show, the longer-range version of its a320 family. they got a number of orders for that plane. some of those are converted from previous commitments, but still, pretty healthy demand for that plane as they unveiled it the air

deutsche. is there any chance they can revive the global investment banking unit? for them to continue trying? >> you hit the nail on the head. -- nots will not that look that dissimilar in five years. deutsche, i will be amazed it has the presence it has now. we are talking to totally two totallytories -- different stories. they needed to demonstrate more savvy positioning and give us more visibility on why the returns are that much lower. and then we will start being .appier to pay more jonathan, fantastic research. thank you for joining us. bloomberg intelligence's senior bank analyst jonathan tyce. you can come to the bloomberg intelligence landing page and a jonathan's story is right here on the front page. how does barclays iv compare -- ib ocompare? -- compare? up next, it is battle of the charts. bloomberg terminal users can get all of the charts. just type gtb go -- gtv go. this is bloomberg. ♪ >> what is at issue here is the total lack of trust in the legal and criminal system in the mainland? if this law is passed, no one in hong kong will feel safe. >> e