deutsche bank is cutting the bonus pool at its investment bank by 30%, steepening pay reductions after a tumultuous year. the lender embarking on a massive restructuring. michael moore leads our finance team, follows his closely. perhaps not as surprising as the bonus reductions at other banks, given what deutsche bank is going through, but the tension is the same, retaining talent. talent case, retaining on a burning platform. how serious or necessary is this? michael: you laid out the dilemma they are facing right now, which is it's been a tough year at the bank. you want to keep your top performers, but christian has submitted -- committed to these cost cuts. to meet the goal, they need to cut 8% in the fourth quarter of overall cost. not just on pay, but that is the biggest lever they can pull. why you are seeing this type of production. vonnie: can you give us context, how many may be affected in terms of average bonus size, are they as big in europe as in the states, for example? michael: they tend to be a salary-weighted because of those rules around bonuses, but this is a big p

coming up, more cuts for deutsche bank.is bloomberg. ♪ romaine: time now for a look at what stories are trending across the bloomberg universe. a hedge fund set up by a former investment manager which has more than quadrupled its assets , sandbarlast year asset management, which started trading in 2018, had about $130 million in assets a year ago, and surged. story on aom has a snow storm headed to the northeast. it will be the first time since december 2 that new york has gotten more than an inch of snow. it follows a weekend when temperatures reached into the 60's fahrenheit. this season, only 2.7 inches of snow has fallen on manhattan's central park. and bloomberg has reported that starbucks is planning to open more stores in lower income neighborhoods. there are plans for 85 stores by 2025 in these communities, bringing job opportunities, although many are concerned the prices will be too expensive for the residence to afford. you can follow all the stories on your terminal and on bloomberg.com. joe: deutsche bank is cu

in europe, deutsche bank and shell are the standout reports. ♪ manus: this is deutsche bank, and we focusedn the fixed income commodities trading revenue. wall street had a roaring, rocking quarter. billion company fourth-quarter net loss, but the bank is 1.6 billion euros. when you go to some of the other numbers, this is the real risk in this stock. 13.6% in the fourth quarter. that might push away some of those arguments about an enforced capital raising. the expectation going into this, higher costs. if we look at higher numbers, the four-year corpbanca revenue is down. ratio,tioned the cet1 targeting 2020 ratio of 12.5%. we are seeing four-year adjusted cost, in line with target according to deutsche bank. the main number we are looking at is that fourth quarter revenue at an estimate of 1.1 coming up, we will speak to the .eutsche bank ceo att interview right here have --. u.k. time we u.k. time. we have roche just hitting the tape. we are trying to assess the impact of a lot of companies of the spread of coronavirus. they miss for novartis. beatate, 19.96, that is a and that is the r

i'm matt miller in frankfurt for deutsche bank earnings. about 20 minutes away from the start of cash equity trading across europe and in the u.k., and in the u.k., we have something fascinating to focus on today. bank of england governor mark carney has his final meeting of the boe. economists and traders are split over if they will get the first cut since 2016. traders see about a 45% chance of a cut later. it is the most divided they have ever been this close to a decision under carney. goldman sachs, hsbc, and morgan stanley are among the banks calling for no change while deutsche bank, barclays, and not west are among those predicting a cut. nejra: a wild ride and those money markets, as you were pointing to. at one point, we got to 70% following inflation and retail sales data, but then the soft data we have had since then -- the surveys, the pmi, cbi manufacturing expectations and optimism, and then a survey from lloyd's yesterday pulling back those bets, and now, as you say, we are pretty much at a coin toss in the markets as to if

restructuring as well, the investment bank is surprising on the upside fit trading which is big for deutsche bank is coming back the revenues here are up 30%, which is a promising sign for the new year with the exiting of the equity business, they are concentrating on that specific area of investment banking they used to be strong and are auto regaining a giant the fourth quarter was a mixed bag. they could benefit from supporting momentum from the general banking industry i caught up with the cfo of the lender and asked him how he thought the fourth quarter went. take a listen. >> we were pleased with the momentum we saw especially coming early in our restructuring. it was gratifying to see that momentum support our businesses and clients come back. our revenues were up 22% year on year which demonstrates that we participated better. >> was it clients coming back, the general market was performing better than expected? >> it was a number of things i think the outlook of some of the over-lahang of brexit trade war. in our business, we had strong performance of core rates that doubled year over ye

deutsche bank shares up despite opening sharply down. we had some bigger write-downs than expected. r profit for the investment bank. matt miller spoke to the chief investment officer. alive to they considerations in our home market on these topics. compensation overall is one of the most important management , forsses we run all year the company and also for the management board. we gave deep consideration to our considerations and feel we arrived at the right compromise between recognizing the cost for shareholders and employees under the restructuring we are undertaking, but also attempting to align our interests with the long-term interests of shareholders. we think we struck the right balance. matt: walk me through how you got to this loss, 5.3 billion was the net number. and ityou lost 2.6 euros includes 3 billion in restructuring cost. after tax and pretax was driven by restructuring costs. that is across a range of areas, deferred acts -- tax asset valuations, and goodwill impairment, software impairment, restructuring charges. that is what we guided the market in july when w

i think deutsche bank is ground zero for everything out in terms of the derivatives book and what cang but it is rounding and corraly. >> i think you have a casewher you have all european banks break out here you have a case where actually and, jean eave from bnb. the driver for the european banks is that the ecb -- and we have made a transition that the ecb is no longer into the zurek dynamic. and he is the rest of the world is. >> zurich zero interest rate policy apple ceo tim cook made comments about the coronavirus. lets get to josh lipton outside of apple hko q, josh. >> brian, obviously investors have a lot of interest in the coronavirus, how that impacts apple's business on the call here tim cook is fielding questions about that. he says how the virus could impact production or supply, obviously china a key link in apple splay chain. take a listen. >> the i'll talk about supply chain and demand to give you some color with respect to the supply chain, we have some suppliers in the wuhan area all of the suppliers there are alternate sources. and we are working on mitigation plans

deutsche bank international economist standing by with us. want to talk about some of the more technical matters that came statement, i guess just talk about what is happening on the shorter end of the curve. that was sort of significant. does the fed still have control of that benchmark rate given what we saw with the move overnight. >> absolutely. they are signaling clearly that they know what the challenges are. and exudeto make sure confidence that we are on top of this and we know what we are doing. also the way they communicate both in the statement and press conference, the liquidity provisions, that this is something that the market should not be overly worried about. generally speaking, from a macro perspective, we are talking about trade war uncertain the, election uncertain the. there was really not much to see other than those important finer details they adjusted today. are back to talking about uncertainties, continuously talking about inflation. we saw the rally in bonds. stock really coming off their highs. do you get this sen

i'll come back to you. >> the global cio of deutsche bank the first trading day of 2020. how are markets fairing? >> the roaring 20s are off to a roaring start. everything trading nicely in the green. it was a very strong quarter to end the quarter in 2019 especially in the coming weeks, the weeks after the general election 0.9% of the ftse the dax up 1.2%. all eyes on airbus one of the strong names today in the stoxx 600. the italian index off to a good start. a solid start for european forces and mainly around the potential signing date of the phase one deal between u.s. and china. china says it will lower the lev levels of reserves the banks must hold freeing up about $15 billion in funds about the eighth time the bank has cut since 2019 the triple r rates will stand. this was the main catalyst for equity moves overnight the shanghai composite up. we are seeing a big move in the minors with clear exposure there. in the uk, up 2.7% a lot of these are actually clustered in the uk. one of the reasons they are having a good start to the year and the decade let's talk about

guy: corporate banking is a big part of the story for deutsche's. it was not that strong. a problem is that? jan-patrick: it certainly is something that we have heard people are saying now they are relying again on the investment banking and leaving the poor business aside. from the press conference the management dave, i did not get the impression this was the direction they wanted to go. the investment bank is quicker to adapt to the restructuring, it might just take longer for the corporate bank. also the bank has lost a little bit of trust and some relationship with its customers over the last couple of years due to all of the legal struggles and the bank not doing well. to regain the trust will take time and a lot of effort. i have the impression they put the effort in and said we will see turnaround but it will take time. guy: great stuff. thank you very much indeed. alix: it is time for bloomberg's exclusive interview from the summit in miami. we have been speaking with stephanie kelton, stony brook professor of public policy and economics, the advisor to bernie san

hi, tim seymour. >> atennessee, the deutsche bank call is one that nothing changes in the business butness model where the free cash flow pays you something back at&t. >> karen. >> last week target reported disappointing earnings and said lets see it shake out a bit where it wants to come in. now is the time to buy i like it here attractive i think that was ha one quarter misstep. >> back into target. >> i am. i never left it. >> doubling down. >> yes np shake shack, i've been long from lower. i still think it has 50% upside in the name. it got a price target downgrade or lower of price target and closed green shake shack. >> dr. oz would approve. >> he mentioned 20 years i mean is that the coolest guess. >> amazing. >> final trade you're a buy are of oz. >> i'm long oz and long blackstone. that sucker is a rocketship. >> thank you very much everybody. see you tomorrow night "mad money" with jim cramer starts now

skate your stocks to watch dani burger is looking at deutsche bank for us. ippe a pacheco is covering oil stocks. hat's the story for deutsche's? it's going-- dani: to differ from where they are, but the top and bottom performers are likely to shrink. pay cut is about 20%. based, on last year's pay numbers that's a savings of 400 million euros. this is after a huge restructuring after the bank, where there were cost cuts. we hear from them for earnings at the end of this month. they can say this is a good thing. or a means restructuring needs to go further in order for deutsche bank to see earnings the market wants. flipe, let's get to you on oil stocks. this is a place we're expecting a lot of action. what do we got? >> we've got several developments. in, they declared -- in libya, they declared force majeure after they shut down the pipeline, that is major for oil exports in the country. half the production is down. this happens one day before the summit in berlin to discuss the situation in the country, with major international authority. and then we have

germany's biggest lender deutsche bank has posted a loss of 5700000000 euros for 2019 it's the bank's 5th annual loss in a row and its 2nd worst ever result bank blames a loss on the costs of a massive restructuring program. yes trillion state of new south wales will hold an inquiry into the bush fires raging across the country this is the state's worst affected by the fires the inquiry will look at its response and whether climate change played a role. this is deja vu news from berlin for more you can follow us on twitter at t w news are you convinced our website that is at d.w. dot com. you are watching indeed w.n. coming up on our program profiting from climate change greenland's melting ice sheets reveal new opportunities for development all that more is coming up on focus on europe my name is sarah kelly thank you so much for joining us of a great day. to. greenland is melting and the buying craze has already begun the melting of the ice sheet in the country has exposed a valuable land china in the u.s. hannity their companies are being sent out to. the top is this a consequence

germany's biggest lender deutsche bank has posted a loss of 5700000000 euros for 2019 it's the bank's 5th annual loss in a row and its 2nd worst ever result deutsche bank says the loss was driven by the cost of a massive restructuring program and a leading figure in germany's far right party alexander garland is being investigated for tax evasion after lawmakers lifted his parliamentary immunity to 78 year old is one of the most prominent figures in the populist alternative for germany party and was co-leader of the party until late last year. tomorrow the u.k. will officially leave the european union and that will kick off an 11 month transition period of tough trade talks britain will stay in the e.u.'s economic framework until the end of this year while the 2 sides try and thrash out a trade deal despite the british government's vow to get an agreement before the transition period ends the e.u. says that the time span is too short fearing a chaotic no deal exit. and joining me now outside of the u.k. parliament is where a house a liberal democrat m.p. welcome to the program and tha

interesting calls on the bank citi added to conviction buy list citi and morgan stanley downgraded at deutsche bank. those are two to kick around bank of america overweight at barclays and wells down to equal weight over at barclays as well. wells downgraded to a sell the last couple of weeks let's take citi. conviction buy at goldman and downgraded at deutsche which call is better target is 81 at deutsche and target is 88 at goldman. >> 88 at deutsche, a little global inflation will benefit citi with significant exposure to the global economy. >> 88 was goldman conviction buy list 81 getting the firm straight. you do that, confusing enough. what do you think about citi >> i think this is a question given relative strength in financials coming to the end of the year and concerns about just where the yield curve is going, i think to joe's point, i think that looking at these companies, company by company on more of a fundamental basis, you have to factor in the exposure outside of the u.s. yield curve. that's why names like jpmorgan have done well because they have a lot of in common revenue coming

deutsche bank? elisa: i don't -- marcus: i don't think so. the banking union is nowhere near yet.ly, more of the same is what i can see. i would point out that some of these things have gotten credibly cheap, but they are cheap for a reason. they cannot get out of their own way, and some banks do quite nicely. i don't think the politics is anywhere close yet. -- ifne: if you look at banks outperform in the earnings season, is it good earnings for european banks, or could it be that there they have -- that they have taken even more market share? elisa: on the trading side, it may not be immediately positive for the europeans. we have seen some areas, and you have deutsche bank putting out equities, that allows the mp's to come into the space. it will be interesting to see how that market share shapes up. francine: i almost forgot to do my chart of the year, so far, to alberto gallo. there huge implications for european banks. what does this tell you? alberto: i think the policy narrative has change. dez has changed. , andve new regulators policymakers are realizing they need banks

george saravelos of deutsche bank stays with us. more pound checks and retail sales when we come back. this is bloomberg. ♪ ck. this is bloomberg. ♪ francine: the oecd chief speaking in french about the tax imposed,st -- spearheaded by french proposals. le mairear from spat willd if this continue. the pound is falling after week retail sales -- weak retail sales, boosting the prospect of a rate cut. let's get back to george from deutsche bank. 2012 is looking and has. rate cuts surged significantly. 73.5% chanceo after weak retail sales. is there a chance they do not cut? george: there is if the pmi has a large balance but we have been pessimistic since december. hasr the election, there been this narrative of a huge inflation story, but the economy is in recession in the data is pointing in that direction. i think the bank of england will cut in january and eventually do qe. if you look at the fundamental driver behind u.k. economic weakness, it has been brexit. the reality is uncertainty is not going to go away and will be present

anna: good to get your thoughts on corporate issuance, cohead of capital markets at deutsche bank. ill broaden our conversations with henrik johnsson shortly. a trade deal signing. bank earnings and a volcanic eruption loom. we will run you through the biggest events of the week, coming up next. remember, bloomberg radio is also available. ♪ >> welcome back. this is the european open. 30 minutes away from the start of cash equity trading in the u.k. i am matt miller in berlin alongside anna edwards in london. anna: it is going to be a busy day. let's check in on what you need to be watching for around the world. we are focused on the potential signing of the u.s.-china trade deal later this week. onare also keeping an eye u.s. bank earnings. we will be new york. we will be live in manila as bonds and stock markets are closed because of the eruption of the volcano just south of the capital. joining us to talk about much of this, a host of colleagues from around the world to consider all of the news, including around the trade deal. tom mackenzie from shanghai, dani burger previewing

long history of failed benches and expensive scandals the net loss for 2019 was the 2nd worst in deutsche bank's history after the 6800000000 euro loss booked in 20151 set its sights on entering the same league as the joint us investment banks and shares sold for over $140.00 but after a decade of scandals and poor decisions it's fighting for its life and a share now costs less than $10.00. christian sieving took over the top job in may 28th seen a new broom to sweep torches operations clean after an abortive attempt to merge with cross town rival comets bunker early last year saving in july announced a message of restructuring program including some 18000 jobs to be cut by 2022 of them at the bank's headquarters in frankfurt on thursday christian saving told reporters that despite the losses the restructuring was yielding results. in china in the tough and we've made radical decisions and pulled out of businesses in which we weren't the leaders and we were direct and consequential in putting our decisions into practice no ifs and no buts naturally that has a price and you can see that in our an

first up, deutsche bank probed over saudi payments.prosecutors probing for allegedly paying for the business of a saudi royal. and a report says rbs is planning to eliminate thousands of jobs. and it is all about the davos details. sonali basak is back with apparently no sleep and what has been on her mind -- on the mind of everyone this year. but get to the deutsche bank probe. i didn't quite understand what was happening. sonali: it is actually pretty simple. some wealth managers at deutsche bank allegedly paid $1 million to a family of a wealth advisor to a saudi royal. kind of a classic bribery case, isn't it? they had an internal investigation. this did happen a while ago, the acts we were talking about, in 2011 and 2012. the internal investigation was in 2016, and now the german investigators are looking at it. that is a long leadtime to look at wrongdoing. i think the german prosecutors, what they would really like to make sure of, is people up early makingeprimanded, and sure the bank anticorruption system is in place. they say

donnie and declined to cooperate with the mine among them are other big german companies like deutsche bank. some 145000 jobs were created in the united states last month short of the forecasts of most economists the labor department says the jobless rate remains at 3.5 percent however that's close to the lowest level in half a century a solid job market signals to investors that household spending will continue to be buoyant that accounts for the largest segment of the economy. well salaries to harlow is standing by for us on wall street also though is those numbers show a labor market that is still robust but a decade of jobs expansion may be on the way in what's expected. the reason sends a delivery market will sustain it's a spanish into it's 11 of the year you know but as you pointed out there are some symptoms to keep investors. guessing for example salaries. down inspected something they take takes a list of a toll on a company's profitability but could occur to consumer confidence. inflationary pressures don't support the idea that the federal reserve will not move interest rates an

2 there are too many difficult sectors in this index like for example to come makers but also deutsche bank a company that saw a lot of its reputation and share price fall over the recent years now optimism is really returning to the stock trading floor more and more people here are convinced that this year the german manufacturing sector will manage to recover. so the friends stock exchange celebrating an all time high. while capitalism is coming under increasing fire even by people gathered in davos the elite of companies and what's the view there in the markets is that it's all sort of a whitewash was or is it does capitalism really have to change. oh definitely capitalism has to change and this is a conviction that everyone in the financial world really has what's happening now is that something that people have been talking about for a long long time is just now becoming mainstream you know for many years alice have demanded from companies that they'd better describe the risk that they have in their books related to emissions related to the cost in relation to climate change now. slowl

and just in germany's largest lender deutsche bank has chalked up a $5700000000.00 euro knauss for 2019 it is the 5th straight year in the red for the bank and was the analysts projections company management to blame the hefty price tag for deutsche is restructuring plan for the loss of a more let's bring in our market correspondent in frankfurt chelsea delaney and chelsea here you are so much reporting they are 5700000000 loss blaming restructuring how good an excuse is that. it's not a total surprise that the torture because reporting in fact last year at the size of this loss is a look a bit of a surprise investors have been expecting something closer to $5000000000.00 euro so almost another 1000000000 euro and a loss is quite a big miss they are blaming restructuring charges and they do have a lot of restructuring charges torture bank has been since the summer really trying to reshape their business really they've. they're coming out of several years of losses as he said and they're really trying to scale back their their global and ambitions their quitting sitting equities trading

and german prosecutors are reportedly investigating to form the deutsche bank employees for allegedly paying more than a $1000000.00 to a senior saudi royal the financial times says money transfers were supposedly arranged in 20112012 in order to secure the royals wealth management business but your bank says that contravened its policies. now 2020 hasn't got off to the best start for german business as apparently a survey shows confidence has dipped since the new year a monthly barometer from the german institute for economic research fell point 4 points compared with december well short of analysts expectations on the upside the us china trade deal and clarity about threats if boosted sentiment among manufacturers but confidence among service firms was down the report says the data overall points to a difficult year ahead. now prime minister boris johnson has insisted the u.k. couldn't. and it's 5 g. network without compromising national security the british government is due to make an announcement on tuesday about whether or not it plans to let the chinese company play a role as a

christian nolting from deutsche bank wealth management. you for sticking around. monetary magic.are still living with the effects. that's how you put it in your outlook. what do you do now if you want to allocate to fixed income? >> good morning from frankfurt. thanks for having me. i think what is important is to look at fixed income to take a fresh view. in a lowrobably stay yield environment and negative one in europe for quite some time. if you need to justify holdings ,f negative fixed income yields i think some of this is important in the portfolio as a diversifier. what you need to do is look at the right strategic location, justify this negative yield environment. we have seen today is tension in the middle east's up. that justifies some diversification. this year already shows in two trading days it can be very positive. there are also risks out there. also a different year from 2019. nejra: what would you say to investors who say i just want to allocate to cash instead? >> if you allocate to cash in a negative environment, it is not a good idea. i think what you really

deutsche bank reporting a large and that expected loss, overshadowing gains at the investment bank.the >> the loss this year after tax and pretax was entirely driven by restructuring costs, transformation effects, and that is across a range of areas. on the pretax line, goodwill impairment, software repairman, structuring -- software structuring. viviana: that is your bloomberg business flash. alix: thanks so much. it is sort of like, if it is not terrible, it is good. i don't want to discount the fic. that was great. romaine: but obviously you saw a lot of the other units are struggling. the transaction bank or whatever you want to call it, that is struggling. sewing has said that the transaction bank is going to be the key driver of the company going forward, so you want to see a little more, but this is kind of a bottom story. , so a gotten decimated 3.9%, 4% up today probably warranted given what you see in fic. alix: what were the bonuses about? i also wonder, yet was holding up, it was about the short-term story, long-term. alix: and to its -- romaine: into its credit, deutsch

never the less and maybe we can catch up with you later again chelsea delaney there for us at deutsche bank in frankfurt visually there but unfortunately she cannot hear us anymore we move on to the spread of the corona virus which continues at an alarming rate with currently more than $7700.00 confirmed cases in china as countries evacuate their citizens from china and businesses close their doors the growing epidemic continues to rattle the markets only the earning season offer some welcome distraction. asian stocks continue to fall on thursday with fears rising over just how serious the spreading coronavirus could get regional markets stock slumped to a 7 week low and as more and more global corporations cut back their activities in china the impact of the coronavirus on the chinese and white or asian economies has prompted a sell off taiwan has fallen by more than 5 percent while there have also been losses in japan and in hong kong. across the pacific u.s. federal reserve chairman jerome powell spoke of the possible economic impact of the virus would have there is likely to be some dis

annabelle: deutsche bank is zeroing in on how do seep -- a next to discretionary pay across the firm. comes as a lender prepares to prepare its biggest loss since 2016. they range from no bonuses to minor cuts. restartxpects to production of the 737 max within a few months. couldholding out boeing return to normal production around april. boeing is not likely to be cleared for service until the middle of the. sellinga is considering stock in its maintenance business to fund their expansion and help boost their market value. a partial spinoff of the division is being considered that would lend an -- lufthansa declined to comment. that is the bloomberg business flash. coming up from the world economic forum we will be speaking to a stellar lineup of top executives. all right here on bloomberg tv. manus: and don't miss the conversations with the greek prime minister, u.s. commerce secretary wilbur ross, and that will be live from davos on bloomberg tv and radio. this is bloomberg. ♪ is is bloomberg. ♪ >> the business community just did not want lower rates. >> negative rates are a proble

joined on stage by the italian finance minister and deutsche bank ceo let's listen in. >> the best possible relation with uk. i would say most of the results depend on the position of the uk if the uk government wants to have very large access if they wants to have for the market so they are ready to do this. it is up to us to decide we have our rules. i think we will reach a good agreement. i think it is still possible we can't have zero tariffs together we can have zero tariffs and zero tamping >> what do you think, minister is the most important aspect, as far as italy is concerned in the negotiation and what do you think will be the biggest sticking points? >> i think the balance between the deepness of the agreement, comprehensiveness and capacity to level the playing field at the end of the day, the deeper agreement is not for the market we first want a deal that is as much as possible comprehensive we know the fda is not a single market that will be change. first, it is important to not lose time because if the uk has said, it is not going to use the option to prolong the transition

let's get you briefed on some of the old stories in the news germany's biggest lender deutsche bank has posted a net loss of 5700000000 euros 42019 this is the bank's 5th annual loss in a row and its 2nd worst ever result 30 bank says the loss was driven by the cost of a massive restructuring program. the white house is seeking to block the publication of a book by the former u.s. national security advisor john bolton saying it contains top secret information the book reportedly alleges that u.s. president trump demanded ukraine investigate a political rival exchange for military aid that put undermine trump's defense in his impeachment trial in the senate. well tomorrow the u.k. makes it its exit from the european union marking the start of an 11 month transition period of very tough trade talks britain will stay in the u.s economic arrangements until the end of this year as the 2 sides try to thrash out a trade deal but the u.s. says the time span is simply too short and fears a chaotic exit if no agreement is in place when that transition period ends. the european parliament voted ye

there's so many sectors in this index so many shares a common occurrence for example shares in deutsche bank for example companies and sectors which had really to go through troubled times in recent years now optimism really has returned back to the trading floors there are more people or people at the stock exchange who believe that the manufacturing sector here in germany this year will manage to recover and also from donald trump the man who has cost so much trouble for the german economy very few people here expect a lot of negative policies in this election year 2020. all right in there for us in frankfurt thank you very much. and that's it for me in the deed only business thanks for watching. every 2 seconds person is forced to flee their home. the consequences of the disastrous our documentary series displaced depicts dramatic humanitarian crises for. forgetting we don't give them anything i didn't go to university to kill people. in the field for their cars and their future so they seek refuge abroad but what will become of her story behind it's a. battle my husband went to peru beca

they took some share from deutsche bank in that space in the last couple of quarters.stanley is the number one equities trading house on wall street, the number one prime brokerage. let's see if jp morgan made a dent there. point that jps a morgan is overrated by three notches, that it is only one notch above deutsche bank. there are some inefficiencies out there when it comes to the profile of jp morgan. sonali: it is interesting's you mention that. if you look at stock analysts, they have a weaker sentiment on jp morgan just given how much it has risen, but jp morgan cost of capital is low, they have 70% return on tangible equity, they are diversified, so as a credit story, they are enormous least wrong. at some of the banks in europe, we are seeing a lot more trouble. vonnie: as always, pleasure speaking with you. that is bloomberg's sonali basak. guy: we are going to stay with the financial perspective in just a few minutes. we will speak with xavier musca, chairman of amundi, on blackrock's climate change announcement. this is bloomberg. ♪ guy: from london, i'm gu

now let's brief you on some other business stories: deutsche bank is delaying pay rises for staff untilsts normally happen at the start of the year. the company has been working to cut costs after posting big losses. it is restructuring its operation and cutting 18,000 jobs. us authorities are suing five companies, alleging they were behind hundreds of millions of fraudulent robocalls that scammed vulnerable and elderly americans. the justice department says the calls led to massive financial losses, and is also seeking restraining orders against the firms. the us budget deficit will exceed $1 trillion in 2020, according to a report by the congressional budget 0ffice. this would be the highest level since 2012. the report also forecast us economic growth would hit 2.2% this year. the food and drink sector is the uk's biggest manufacturing industry, with exports to the eu worth more than those to the rest of the world put together. but the big question is, just what sort of tariffs could companies face once britain leaves the eu? sarahjohn runs craft beer maker boss brewing in swansea. l

football at the highest level, i've had the exposure and equally i did an economic degree, worked for deutsche bank for years, made investment bank and now i'm full time at chelsea working with the commercial team. i still have the football input but now i'm learning about how the business is run as well. the board of directors as lewes fc is 33% female, the premier league says 50% of club boards have women on them, but the total number of female board members in the top flight amounts to around 11%. those working to increase diversity on boards so it is critical to address the gender balance. if you want to get change and get more young women playing football which is a big driver for the fa, then every club needs to take ownership and that ownership is not going to happen unless you get different voices on the board and women are a very, very important part of our society and sport matters. as a community owned club, lewes say they want their board to reflect that. there is such a great mix of people. we've got business people, we've got people who have worked in hospitality, people who are footb

matt: so you have been running global luxury research at deutsche bank for years.f the last sars virus. have you seen anything comparable and do you take any lessons from that experience? only eventsars, the of such nature that had an on stock lines and performances, but it was concentrated around the second quarter of 2003 with a very in terms of the followedevelopments so by a strong recovery, which i think the market is assuming as the base case. anna: francesca di pasquantonio, head of global luck or he at -- luxury equity research at deutsche bank, giving us the perspective on the tragedy unfolding around the coronavirus. the u.k. risks with washington after giving huawei a partial role in developing britain's next generation broadband networks. with nicky morgan, the u.k. secretary of state for digital culture, media, and sport. this is bloomberg. ♪ matt: welcome back to the european open. this is bloomberg markets, looking at gains across european market equity indexes. a've found some direction, bit of a risk on session here. state street is telling compani

this is a deutsche bank upgrade.bank saying the story at l brands is so bad it has become good, which is not the most thing you would be appreciated of of if you were in the company. on the downside we have oil stocks following this week's maneuvers. if we could see those as well? we will get to that. and harley davidson. that is the other company i wanted to talk about. we have a note out on the street saying harley davidson is likely to report overseas sales in the low single digits. those results do not come out until the end of the month, but that is sending that stock lower as well. guy: let's turn to what is happening in europe from the iran angle. the eu foreign minister is holding a meeting in brussels to discuss the fallout from the soleimani killing and the future of that nuclear deal. let's get the latest from maria tadeo in brussels. maria, what are we hearing? where to the europeans take the story next? the jcpoa, the iranians have walked away. the u.s. is issuing further sanctions. where does europe go?

we get earnings from deutsche bank. carney set to go out with a bang as the central bank grapples with its trickiest rate decision in years. on friday, it is brexit day. matt? matt: that italian story pushing 10 year yields down the most since august after matteo salvini suffered a stinging defeat in the key regional vote. it provides a boost to the federal government. salvini hoped taking the other will deliver a fatal blow. for more on what this means for italy, maria tadeo joins us from the motor valley. she's in the region's capital, bologna. where does this leave the italian coalition? maria: good morning, matt. this is a hugely watched election. it was seen as a vote of confidence on the italian coalition. that coalition was never voted into office. going into the vote, salvini was all over the region. he was the main voice. he said if we win the election, the leak manages to flip, which has been a stronghold for the centerleft, that means there should be a snap election and it's in and to the coalition -- an end

what this bodes for some of the banks such as deutsche bank is something that is worrisome.eutsche bank in particular has already warned that the macro headwinds such as prolonged low interest rate environment is going to be continuing to dig into margins and into its profitability. this from one of europe's leading banks is not a very good sign as we head into european bank earnings season. vonnie: the goal is for it to lend more in the hopes that that will help margins. is that what happens in a negative rate environment, though? sree: a negative rate environment really becomes a very untenable situation for europe's bank ceos. spiral out of which there are very few avenues for growth. ubs traditionally has had wealth management to help combat some of these other pressures from a macro environment. as those banks that aren't strong in wealth management as ubs is, there aren't a lot of places where they can seek relief. vonnie: our thanks to bloomberg's managing editor for european finance. guy: sustainability is the biggest topic at the world i cannot forum. president trum

football at the highest level, i've had the exposure and equally i did an economic degree, worked for deutsche bankstment bank and now i'm full time at chelsea working with the commercial team. i still have the football input but now i'm learning about how the business is run as well. the board of directors as lewes fc is 33% female, the premier league says 50% of club boards have women on them, but the total number of female board members in the top flight amounts to around 11%. those working to increase diversity on boards so it is critical to address the gender balance. if you want to get change and get more young women playing football which is a big driver for the fa, then every club needs to take ownership and that ownership is not going to happen unless you get different voices on the board and women are a very,

his name is alan ruskin of deutsche bank.of things, including foreign-exchange. let me start with the wheelhouse of currency as the litmus paper of a system. what does it mean we are seeing stronger dollar, you're a through 1.10 -- euros through 1.10, and offshore renminbi weakening out, does that indicate a financial system acting normally within this financial crisis? alan: there is no obvious normal in this situation. what you are seeing is revealing in that the dollar is outperforming the euros. that says that investors prefer the yield and liquidity you can get out of u.s. bond markets, and at this point in time they could look to japan and the yen, but looking close to china. the u.s. dollar is the natural beneficiary. francine: does it mean that supply chains have shifted? does it mean that some of these companies will be more global than a year ago? troy: that is probably wishful thinking. shifts in supply chains are modest and we are about to see those vulnerabilities tested. i would be cautious in saying effects to

deutsche bank and santander are among the banks offering notes.ecord set a year ago. that is your bloomberg business flash. alix: thanks so much. we want to talk about credit. the fed paper came out yesterday. the surprise, warning on high-yield -- no surprise, warning on high-yield. you would agree. lale: i think high-yield come us implicitly, if you think about a high-yield spread, you have two components. one is your default loss. the next leg is the second component, your risk premium. that you can define in any way you like. i think of it is how much money you get compensated for going into high-yield, i.e. junk bonds. the fact that it is also like liquid and you are buying a lower quality asset, what you get paid for that? averages around 250 basis points. if you look at the selloff, it goes as much as 500. if you take today's overall index of 350 and break it down, people are only willing to get 100 basis points to go into high-yield. i think that is ludicrous. alix: does it matter the overall environment? if you are taking a look at negati

time for rapid fire, here are kate rogers, robert frank and seema mody deutsche bank has a new short-term investment idea and it is general electric ge that call boosting the stock about 3% right now putting it on pace to break a four-day losing streak deutsche bank saying while it's difficult to identify positive catalysts this quarter, it expects ge to deliver an earnings beat and good guidance for the year and positive statutory insurance review whatever the heck that is. so basically they're saying no catalysts, but buy the stock >> yeah. not a lot of positive, but it won't get worse. that's been the big question related to general electric. when i spoke to their ceo, larry culp, after earnings in october he reminded me this is a transformation turnaround story that will take a lot of time his main goal since becoming ceo in october of 2018 is to reduce their debt, raise as much cash as possible by selling out their baker hughes stake and continuing the sale of bio pharma to $21 billion. it will take some time the stock is up about 16% over the past three months, well off the all-time

. >>> deutsche bank is being probed over its payments to a saudi adviser. secutors are investigating two former employees of the bank for suspected bribery. the ft says deutsche bank paid more than $1 million in 2011 and 2012 to secure the wealth management business of the senior royal it also adds that some of the pay and additional perks violated deutsche's anti-corruption policies. >>> the financial times saying hedge funds reported $43 million in investor withdrawals. the ft says years of underperformers by hedge funds by the financial crisis have prompted institutional investors to reduce their exposure courtney >> thank you very much, rahel. >>> back to the markets. stock futures facing steep losses this morning. we told you earlier we seem to be accelerating there. the dow jones industrials point lower by more than four points the first fed policy decision of the year due out wednesday we have the busiest week of the earning season, including names like apple, mcdonald's, tesla and caterpillar. as rahel just mentioned, the coronavirus spreading around

germany's biggest lender deutsche bank has posted a loss of 5700000000 euros for 2019 it's the bank's system annual loss in a row and its 2nd worst ever result the bank says the loss was driven by the costs of a massive restructuring program. authorities in the us say they have discovered the longest ever drug smuggling tunnel at the border with mexico the tunnel ran for more than a kilometer and contained an alligator a rail track and the ventilation system it will now be filled with concrete as required by u.s. law. while in the u.s. the white house has told former u.s. national security adviser john bolton that he has to delete parts of his upcoming book before publication because there are top secret and could damage national security that comes after it emerged that bolton's new book could undermine president trump's defense in his impeachment trial. bolton was one of president trump's most important aides but in a highly volatile position the 4th a national security adviser in the administration's 1st 2 years is highly respected by everybody in this room and bolton was gone afte

get you briefed down some of the other stories making the news today germany's biggest lender deutsche bank has posted a net loss of 5300000000 euros for 2019 it's the bank's 5th annual loss in a row and its 2nd worst ever result georgia bank says the loss was driven by the cost of a massive restructuring program. but as wayland president nicolas maduro says he'd like to reestablish diplomatic relations with neighboring colombia. ties last year after colombia backed the opposition leader want guardo adding to the tensions colombia has asked for the extradition of its former senator item or law no she was arrested in venezuela on monday. authorities in the us say they've discovered the longest ever drug smuggling tunnel at the border with mexico the tunnel ran for more than a kilometer and contained an elevator rail track and a ventilation system will now be filled with concrete direct by u.s. law. well staying in the u.s. the white house has told former u.s. national security adviser john bolton he must lead parts of his upcoming book before publication as they are quote top secret and coul