i think john cryan has a good chance to be accepted.man government seems to have been not too fond of anshu jain. manus: are they going to have to raise capital? would that be one of the solutions to move deutsche bank forward at a quicker pace? >> i don't think he should really raise capital. raising capital would mean he would have to find ways to generate more return on this additional capital. i think that's the problem of deutsche bank. deutsche bank doesn't generate significant returns. what he will probably prefer to do is downsized the business and release capital from parts of the business that are not profitable enough. the capital ratio of deutsche bank currently is high enough. he can't produce sufficient returns on additional capital. francine: thank you for the insight. here are bloomberg's top headlines. manus: eu president donald tusk once a quick decision on extending sanctions against russia. it comes after a new offensive by russian-backed separatists in ukraine. current sanctions lapse at the context of july. tusk sa

it is now up to the former ubs banker john cryan to restore confidence.e will run the banks together with your vintage and -- jurgen fitchen. in may, he will take over as the sole head of deutsche bank. >> it seems it's already boosting confidence. here is why. >> investors really like the news that john cryan will become the new ceo of deutsche bank. the reasoning behind this is that john cryan is the man who knows how to talk to the markets. he worked as the chief financial officer for ubs, and he worked for thomas at t --omasek in singapore, and it means he knows not only the insights of the large banks, but knows how investors look at the large banks. he has the potential to reestablish the reputation of deutsche bank among investors. >> the rally in deutsche bank share prices did not do much to help germany's dax index today. it finished in negative territory, losing nearly 1.2%. over in new york and the dow jones is still open and it is currently in negative territory while the euro is rally -- is valued at $1.12. >> more talks have been held in ber

john cryan. shane, that is an incredible beard. tell us about john cryan.: he brings a lot of experience into the situation. he is on the supervisory board. he is from a with the strategy that is going on and how to execute it. the execution is going to be important. that is what everybody will be looking at. he went to ubs as the ceo in it 2008. they were taking massive losses in the subprime mortgage market collapsing. when he left three years later the bank was profitable again. he has turnaround experience and knows how to crunch the numbers and get things done. erik: one thing that we have not had an opportunity to talk about this morning is his history at ubs. i know he has won lots of plaudits for his role as cfo. he was an investment banker for years before that. i remember what ubs was like in the mid to thousands. it was not different than deutsche bank. they were breaking rules all over the place. they had to be bailed out by the swiss government. it was a disaster. shane: investors are frustrated nobody is sure where the strategy is going to go

do you think that's where we can see the john cryan stamp? if so, what does he do that anshu jain was not going to do? >> investors want clarity on how they will achieve the cost-cutting. that was missing. then, it is all about implementation. deutsche bank acknowledges that the cost income ratio was not one of the areas where they made enough progress. jonathan: just to wrap things up, where would you like to see the cuts? >> that is something for deutsche bank to explain to investors. it is not something for investors to say. that's why it was so disappointing when they came out in april? jonathan: great to have you on the show. the executive director of hermes equity ownership services. deutsche bank surging this morning. we will break down the story for you. coming up, once more greece steals the sage. g-7 leaders unite. later, voters punish turkish politics. and, bad day for china can't scare investors. those stories and more throughout the hour. ♪ jonathan: good morning and welcome back to "on the move." i'm jonathan ferro. let's bring

john cryan will be the next ceo.man chancellor angela merkel spoke about the executive change, appearing not surprised. : it was a decision taken by the company. it is not really a surprise. i don't really want to comment on that. i want deutsche bank to be they take their own decisions, as does any other company in germany. ousting in a bloomberg tv interview he welcome to the resignations. he gave three reasons why the change was needed. >> this was an absolute shock, just a few weeks ago they were giving us responsibility to on june james. it looked like the management team was in place, they succeeded getting through the shareholder meeting. it certainly looked like they were going to give them another year to prove that they can get their strategy through. nobody would see john privacy likely successor. john cryan bring to deutsche bank as it implements the new strategy laid out? cryan is actually very crisis experienced. he came in as the cp -- as the cfo in 2008 when the bank was taking huge losses. the subpri

brendan: what did john cryan get right at ubs?ook them through 2008, and they were a mess. ubs is doing very well today. he shrunk it all down and made the wealth management losers become -- brendan: so he did the restructuring that deutsche bank needs? michael: absolutely. tom: the chart is simple. jpmorgan with massive outperformance over deutsche bank. i rarely use that work. vonnie: does deutsche bank hang onto their retail operations? michael: i think they do. everything is to keep deutsche bank from shrinking each of ubs away from the risk stuff and said we are going to be protectable. they are the premier bank in germany. brendan: this is an important line of questioning, the idea of the relationship between germany and deutsche bank. i have had german bankers tell me that the problem with deutsche bank is it is not completely free to restructure the way it wants. michael: they might just be a little bit less big. and a little bit less expensive. vonnie: would you buy michael? michael: i have no shares of deutsche bank, but

john cryan has been named ceo of germany's largest lender. he will join the company on the first of july and share the role with jurgen fitch and -- with juergen fitschen. most recently in april, the bank paid u.s. authorities a fine of $2.5 billion to settle a rate reading case. let's check on the markets -- a rate rigging case. let's check on the markets. investors are reacting positively because john cryan's appointment is seen as a fresh start for the bank. let's get a check on how the turkish markets are reacting to these election results. the benchmark index, the bist 100, is trading, down 6.8%. the forex depository is cut for -- all major indices are in negative territory at this hour. to greece, were the government spokesperson has that political wrangling between the country and its creditors continued over the weekend. speaking friday before parliament, alexis tsipras called the latest european offer on the table absurd. those comments struck a nerve with the european commission president. jean-claude juncker says that he is no magi

another year to prove they could get their strategy through and no one would have picked this guy john cryanho is on the board, as the likely successor. this was a complete supply. scarlet: how likely is he to deliver on this strategy as outlined by anshu jain? cryan is crisis experienced. when he came on board it was 2008 when the subprime mortgage market was declining. ashas this reputation someone who can crunch the numbers, understand the numbers, and pulled through the execution. that is something deutsche bank needs as they go into the strategy. does this mean, that deutsche bank will remain committed to the universal ranking strategy? christine: certainly all of the language in the press release was this is going to be to further their strategy 2020, which is what they recently announced in april. there's no indication they are changing the strategy. one of my colleagues talk to a very top investor at deutsche bank yesterday, and he says what he is waiting to see is not only if there is execution of the strategy, but some changes reggie and there is a debate on what that should be. so

deutsche bank overhauling management naming john cryan as the new ceo with -- replacing anshu jain.k: this comes shortly after the investment bank was fired for the role in manipulation. christopher wheeler spoke to bloomberg, and he outlined the specific challenges to germany's largest tank. --the propolis deutsche bank the problem deutsche bank has, they have not got a core business to follow back on domestically, meaning retail banking. deutsche bank has always had to build an investment bank, a very strong investment bank, but one that has to have so much more capital. you allwe will bring the latest on the changes at deutsche bank as we learn more and more about them. a lot of interesting things going on. mark: a shakeup, deciding they would leave early, leaving room for mr. cryan. cryan has the experience, but as the libor scandal would indicate, still a lot of problems in damage you will find himself nothing into when he's takes over. olivia: they have new regulation. they have to raise a lot more money. they have to boost your capital. they do not have a business that is the

they're replaced by john cryan.e'll get more from you're colleagues in frankfurt, that's a big one. 39% of the shareholds voted to get them out. >>> syngenta reporting a second takeover of monsanto. the swiss company saying it made no attempts to discuss. jed, monsanto reportedly pay to syngenta if they can't get a deal. the u.s. economy is going to expand at a lower rate than first expected. it puts a 2.4% on gdp growth. that's down for the forecast for the national association for business economics announcing that the soft patch could force the fed to raising rates. what do you think? >>> in noble news today, japan's economy much faster than expected in the first quarter. gdp to a 2.9%. it had been 2.4%. in china, imports and exports shrinking again. economists say it's likely to add will add pressure on policymaking in beijing with a slump in that economy. and in turkey this weekend, national elections and erdogan's party lost its parliamentary majority after 13 years in power, after not switching to a president

john cryan is stepping up. turkish markets plunge.ecure a majority government for the first time since 2002. setting the stage for conflict with president heard of them. g7 summit takes on a stalemate. the summit ends today. talks resume. they are three of the things i will be talking about. i'm looking at futures market softer. for the future is pretty much unchanged. the stock mover, i know caroline hart is going to talk about it. caroline: it is never too early to talk about booze. we will also be digging into what is moving these markets. ftse likely to push a little bit higher. the rest of europe basically flat. down goes the cac 40 in france, off by 0.3%. once again, variation in central-bank policy and worries about greece. five months of negotiations, five years of a debt debacle and still no deal. they are trying to push through that. at the g7, obama is trying to put his concerns on the table. the market is just revving up

executive who was going to be the sole chief executive after co-ceo juergen steps down next to me is john cryan is just, but he speaks german. he is a takeover specialist, he has served on the supervisory board of deutsche bank, but he has never led a unit of the bank. fromnalyst is with us preferred. good afternoon, thank you for eating with us. what do you expect to happen at deutsche bank now that it has a new chief executive? what details can you describe? aboutdo not know a lot this, but the expectation must now be that he will him and strategy that deutsche bank announced in april. back then, the disappointment was they did not make a lot of changes in the investment bank. the investment bank is seen to and theig, too heavy balance sheet, too much capital consumption. shakeup.d be a major olivia: what does he do to return the bank to a high level of profitability? give aht help the stock, little bit of a pop? company needs is a new strategy, not just the new ceo. what does he need to do? dirk: the strategy was announced in april. of the things that were announced in april -- olivia: stick

down.os are stepping john cryan is taking over. some more tough talk on greece from the german finance minister . he says the ball is in increases court and they must decide if they want to carry a difficult load. new proposal to unlock bailout money. it's just a rehash of older plans. bulk it's the largest which is ever in the housing industry. they are buying 4200 homes that will be turned into rentals. homes are in midwestern cities such as chicago in indianapolis. the seller is plt homes. this will make them one of the top 10 housing owners. revolt at thed a shareholder meeting. only 22% voted against approving his pay package. was never under threat. the package is finding for the next -- binding for the next two years. olivia: american airlines has joined delta insane benchmark revenue will be lower than expected. revenue from each flight will fall by 6%. that thereinforce market is getting weaker. those are your top stories this morning. , more on theup strategy and white downsizing. jeb bush's european adventure, he heads t

it's john cryan who is currently a member of the supervisory board who was before cfo of ubs from 2008during the bigger structuring of ubs. that goes to the credit that the market is playing surging on the news. as mr. cryan seems to be a more reliable and more trust worthy manager when it comes to restructuring the bank. one has to say the co-ceos which are still in place have been disappointing when it comes to implementing cost cuts when it comes to reaching profit goals. litigation was a huge issue. and disdain, more and more step-by-step losing his credibility that he's really actually the right man at the right time. so what happens after that very bizarre agm is according to sores that mr. jain came to the conclusion that it's time to step down as he's not become a trustworthy ceo for the bank. what happens nexts, we're missing details when it comes to new strategy and there are rumors that mr. cryan will alter that strat egy. i hear that will not be the case because he's also in the supervisory board and close to the strategy. but will be his value added is the detail. we're wa

former cfo john cryan has been named to run germany's largest bank. that brings an end to anshu jain 's three years as co-ceo. under anshu jain and juergen fitschen, shares posted the lowest level among global peers. he is an m&a banker, which you are a number -- which you will remember, was bought by ubs. to be asked to step in the ceo of ubs during the darkest part of the crisis for them. a lot of technical stuff had to be done with, a lot of bad assets. thatd it bit by bit, and is what he is thinking about now at deutsche bank. scarlet: shares at deutsche bank are moving higher in response to the news. mark: steeple financial is buying barclays in the u.s.. the terms were not disclosed. roughly 180 advisers in the u.s. and manage $56 million in total asset clients as of may 31. the deal is expected to be completed in mid-november. trying to bee is more competitive in cloud computing services. they will build a high-speed network and upgrade how it was data centers together. they want to take cloud computing business away from amazon, google, and mi

rishaad: john cryan. zeb: he is well-known within the banking world and very well respected.tors looking for leadership at deutsche bank, because the two current co-coe'eo's have not been able to meet profitability targets. the stock has slumped during their tenure. and investors seeking credibility within management. now, we must note that one ceo is a deutsche bank executive and has been there for many years. he led the fixed income business. rishaad: stellar work as far as that went. zeb: more than 80% of the bank's profits coming from that division. however, in his current new environment, investors simply not pleased with the pace of progress. in april, they released a new strategic plant. mr. cryan is on the supervisory board of deutsche bank. investors expect them to stick with that strategy albeit with minor adjustments. rishaad: what is the reaction like? we will get investor -- whween shares start trading. shares have not done well in the last couple years. zeb: deutsche bank shares of underperformed all of its peers. if you look at the three performance, the stock

do the work place by john cryan on the bank supervisory board since 2013. they will first take over as co-ceo and then take the aerosol ceo after fitschen leaves. the stock down 20% over the last year. let's not forget the regulatory environment has been a big pressure for all in the particular. >> markets at 6% in the news. they like to change of leadership. maybe george will do better. dagen: maybe they hope the bank is broken up finally because it is so large. excel many other european institutions is unmanageable. separating for retail banking, if you double down on trading activity that did not turn out to be a good day. two of the latest ceos to left, brady do again, you had the head of standard chartered/. they have been falling like dominoes. maria: and then the whole backdrop of the european situation in terms of the debt crisis there. the economy a needed stimulus. the backdrop is not so great either for the banking sector. interest in the stock is up 16%. >> way to meeting with the chief executive officer of the major u.s. bank recently who said

until then, we have the new ceo, john cryan, coming in to clean up a company that is beset by high costsand this issue of profitability. now,of the co-ceo's, until have been unable to meet profit targets. ubs through the financial crisis. he was widely praised by investors for his steady hand at that job. , faced its that time biggest challenge, record losses, and also regulatory issues in the americas and elsewhere. he communicated well with investors and they hope that he brings that kind of experience. angie: let's see how markets react to that. how have markets been experiencing the regime under anshu jain? zeb: let's take a look. the numbers don't lie. deutsche bank has underperformed. if you look at its value, the company valued at 38 billion euros. that is less than one time its tangible books. that indicates it is worth less than what investors should expect to receive if it liquidated its assets. its stock price is only up about 1% during the three-year tenure. deutsche bank has had an anemic rate growth. a lot to turn around at this german giant. angie: thank you for that, zeb

john cryan will take their place. john crane will fwk ceo. see another experiment in co-ceos not going well. >> it doesn't go well and i think that mr. jane may have underestimated the power of the u.s. government in terms of being able to derail the justice department. derail a turn. the justice department took -- by the way, pepsico, they're ringing the bell here today. he was the man of the justice department that was really after a lot of the banks. i think mr. jane kind of felt that you go down to washington and plead your case, everything is fine, and the u.s. turned out to be a major distraction. i think that the u.s. in particular was gunning for a lot of these foreign banks. now, if you're merkel you're saying it's equal opportunity hater of all banks but i feel that -- i think he kind of believed in the system and the system really failed a lot of the banks. the system was about not loving the banks in the end. it was about hating it. >> it does bring up yet again this question about whether it's possible to manage a global bank. th