john cryan to -- john cryan at deutsche bank said it was unsettled by the amount of capital questionsvince clients. so that may have an impact. mark: thank you for joining us, michael moore talking about the bank earnings today. talking about the brexit vote next. we'll hear from the chief executive about how currency shift away from this. ♪ ♪ mark: live from london and new york, i am mark argent. vonnie: i am vonnie quinn. this is the european close. earnings fell short of estimates. the for your profit target at risk. with fordr spoke president and ceo mark shields and asked him what impact the brexit would have on the company. >> the u.k. is our largest business. it represents 30% of our sales. so this year, the good news is we are fully hedged. we did take in the second year, we arehis about 60% next year. hedged against the balance sheet, so a lower pound it profits for about $2 million. remainder of the year, our view is that the industry will come down. so in total for this year, probably about $200 million. the ongoing basis, until the u.k. and the european union figure out wh

vonnie: more cuts from john cryan.he deutsche bank ceo signals another round of belt-tightening as trading slumps. bloomberg news has learned that italy's largest bank, unicredit, is considering a $5.5 billion stock sale. we have the latest. mark: have a look at where european equities are trading. we are literally 30 minutes ahead of the close on this wednesday session. global macro movers -- look at equities. there is very much appetite for risk today. european stocks rising for a third consecutive day. hese currencies are ring and falling against the dollar. we have bonds rising, yields falling, and credit default swaps and commodities falling today. there is an appetite for risk as we wait the culmination of the two day fed meeting. let's talk about the world biggest luxury goods company. look at those shares -- 7.6% higher. the biggest intraday move since 2010. after the close last night, and increased sales more than analysts expected for demand of wine and spirits, showing how it's broad product based can insula

belskinext hour, brian ♪. ♪ tom: can john cryan be a change maker? must intensify and restructure. maybe they need job cuts. delicately, prime minister abe -- he must be a change maker. mrs. clinton will be a change maker. mr. clinton goes to philadelphia and sells a hillary rodham of 45 years ago. good morning, everyone. this is "bloomberg surveillance ," live from our world headquarters in new york. i am tom keene. with me, francine lacqua. philadelphia was really something last night. we will talk about the stark differences between philadelphia and what we saw in cleveland. francine: this is one of our top stories. i like the way you linked our top three stories as game changers. i will look at market move, volatility, and the game changer with central-bank policy. tom: we will touch on that in a bit. right now to our "first word news" with taylor. taylor: it is now official. the democrats take history at their convention in philadelphia. hillary clinton has become the first woman nominated for president by a major party. her former that her form

a few lines coming from john cryan. he says that the sale of bank is now possible.of separating the business -- they may well delay. he sent a letter to the staff. they will close 30 new branches in 2016-2017. he says a wipeout of profits and what do you make? michael: it has continued to cut jobs, cost a cost the board. their costs are still high -- cut jobs, cut costs across the board. their costs are still high. we are seeing from of european u.s. marketch is versus european. budget is down 20%. manus: costing is the top line. deutsche bank is 91%, up from 85% in a year ago. anna: the trading story that is positive as the u.s. we don't know if that is a u.s., european thing. we'll get more reports this week, don't we? in terms of restructuring, john cryan saying or might be a need for my desk more ambitious timing. is that something that investors are looking for for them to look desk for them to move quickly back of -- for them to move quickly? michael: the leverage ratio stayed the same this quarter. investors are hoping for a better capital story. but just bee

in that letter from john cryan, two words stuck out to me.hey were more ambitious talking about what these cuts might be. what more can deutsche bank do going forward? michael: you could definitely see them cut more jobs and try to speed up the pace of the cuts. they have been continuing to try to cut costs on the technology side and trying to synthesize the banks, simple by the structure of the bank. you may see more progress there and selling off assets, whether it is postbank or the stake in the chinese wonder. they have assets they would like to get rid of on both the capital side and cost. amanda: want to call it the decline in revenues. unlike many banks, they do not have a lucrative wealth business. they do not have a retail business to fall back on. that is getting tougher and tougher. what is the prospect for deutsche bank and how long are investors going to give them? michael: that is the big issue for them. while they are continuing to do this restructuring, the revenue side has not held up. as you mentioned, they are disproportion

vonnie: more cuts from john cryan. ceo signals another round of belt-tightening as trading slumps. bloomberg news has learned that italy's largest bank, unicredit, is considering a $5.5 billion stock sale. we have the latest. mark: have aoo

we've got john cryan, jes staley.brexit, dividends, negative rates, low rates, for him isn't about -- it is about getting clients to shift. there are warning flags in the numbers. net new money missed on the target. investment bank profitability down 48%. margins dropped ever so slightly. i think the challenges and the headwinds are the same for everybody. the others have to develop a plan. eye of thein the storm. aboutne: what did he say brexit? this is one of the concerns. it is difficult for ceo's to talk about because we haven't trigger article 50, but it is one thing that will really suffer in london. manus: absolutely. the critical issue is two-sided. one is for the business and one is for the client. passporting writes are critical. were there any opportunities? take a listen. >> there's always opportunity, but we need more clarity about what kind of form this brexit vote will take, and then people will be able to evaluate where there are opportunities. there are also challenges. foronly for the u.k., but the e

. >> how much time does john cryan have to turn around before he steps in? down?> management things it can do it on its own steam and that it will be able to generate capital on its own without any kind of emergency measures to hit targets. deutsche bank is too big and important to be able to say that we are just going to keep going. putink shareholders may pressure on him to act sooner. >> three big banks out with better than estimated earnings fifth. after announcing cost cuts after they struggled this revenue. why did all the shares decline today? >> it was a tale of lowered expectations and they beat slightly against those lowered expectations. certainly there are still issues across the board . lloyds is still under 10%. >> let's get back to credit suisse. is the turnaround bearing fruit? >> on one side of the ledger it is. on the cost capital side, he is making progress. on the revenue side, it is still tough picture. >> do these profits and result mean that you do not need to raise capital? can those rumors be laid to rest? >> we have been very consistent i

francine: how much time does john cryan have to turn it around before he steps down?a good question. management things they can do it on their own steam. for the next two to three years, they will generate capital on its own without emergency measures to hit its target. deutsche bank is too big and important to say, we will keep going and it will take two years. i think shareholders may put pressure on him to act sooner. mark: three big banks today out with better estimated earnings. what was the reaction? shares of bnp paribas credit , suisse, lloyds, all falling after announcing cost cuts and struggled to boost revenue. why did the shares decline? >> it was a tale of lowered expectations. they beat slightly against those lowered expectations but certainly there are still issues across the board. lloyds, still under 10%. mark: let's get back to credit suisse. it was an unexpected profit. is the tijane thiam turnaround bearing fruit? >> on one side of the ledger, he is definitely starting to make some progress. he talked about it being a first step. on the revenue sid

guy: if i was john cryan, how would i read these numbers?usiness and on europe? hugh: i would look to specifically see how jpmorgan and citi have done with the fixed income trading and see if they have taken any market share. guy: is brexit affecting this? hugh: brexit happening within two or three trading days left, everybody has deflected the question and said the second course so far is fine. tom: carl weinberg, this is the strength of a nation, it's banking system. these are very good numbers versus europe. carl: with brexit coming, sterling down 10%, there must have been some impact with the exchange rate in which they closed the books. is there a profit impact out of the sterling drop? jpmorgan and city have talked about how the volume leading up to brexit have talked -- have health in currency and bond trading. tom: 200 13,000 employees -- the bragg note from one hand at the top of the press release, mr. there is a level not seen since 2008. i'm sorry, in your world the solution is to cut expenses. how much fat is there to cut at bank

john cryan saying deutsche bank needs to accelerate its cost-cutting. costs and trading area,n as a weak especially in comparison with what we saw from the united states. by 2.6%e-klm is up deutsche bank going unchanged there. 4.3%.s up by those were impressive according to analysts over at barclays. some breaking news, caroline. caroline: we have been obsessing about this nintendo stock. pokemon go has been fueling some appetites, and some concerns. for the first quarter, we have not seen the implications of the pokemon go of session. we had first-quarter operating losses of more than 5 billion yen, double what expectations were. the expectations called for a 2.1 billion yen loss. first quarter sales came in at 62 billion yen, again shy of estimates. and they are booking an fx charge of 55 billion yen. they are not yet able to show the positive reaction from pokemon go. we will see how those shares trade because it has been on a roller coaster since pokemon go has been obsessing the market action. anna: let's talk about the banking sector, but this tim

e is a i think john cryan is doing more than his predecessors did.al situation where you have a big grand strategy announced at a very bad time, which is when you are going into a slowdown. it is not the beginning of some new super cycle investment banking, so this is going to take time. even judging it on the second quarter not really hold any water right now. so there is a "let's go," but it will take a couple of years. francine: let's go, but it is going to be slow. vinyl, thank you, bloomberg's -- lionel, thank you, of bloomberg's gadfly. this is a picture for you. it is 11:20 a.m. in london, 6:20 a.m. in new york. we look at the yen. stocks are climbing. s&p futures are pretty much unchanged. this is bloomberg. ♪ tom: tom keene in new york, francine lacqua in london. both of us watching the convention last night in philadelphia. 5:00 p.m. this afternoon, mark and john will have a nice wrap up. the twoisited conventions this year, you would have come away thinking the democrats are the more patriotic of the two parties, and the more cautiously co

jonathan: moore cuts from john cryan. overall chartists hit the bottom line.japanese prime minister shinzo oblique announces plans for $265 million in stimulus. this is bloomberg. ♪ alix: this is bloomberg . one stock we are tracking in premarket is apple, jumping over 6% after stelling -- selling more than 40 million iphones. the company still being able to bank on the iphone sales that they get two thirds of their revenue from. sales in the next quarter or going to fall but less than expected and that is also helping apple stock at premarket. it looks like there are signs of stabilization in its revenue and product stream. are going to turn back to the big story overnight from japan, the japanese prime minister talked about a fiscal stimulus program to get the struggling economy going again. joining us is kit juckes. we will go up this morning to this news that i am some trouble parsing through. there was a speech given and i am not sure we have a transcript , in a city outside of tokyo. we are not sure of the specifics. what do we do with this informati