what the facts are, what john cryan is saying. what do you tell john cryan?e facts are not clear. this is a fast-moving situation. liquidity is a very ephemeral concept. liquidity at one moment can ceased to be liquidity at the next moment. secondly when a bank is trading at .25, you have to raise questions about what you have on the asset side of that balance sheet and whether that is an active book number. we don't know how far they are away in reality. we are in one of those moments where we are at an inflection point. if customer stay loyal and they can work their way through this, i think the lesson of 2008 is the possibility they will need liquidity. jonathan: walk me through this blurred line because we have been through this with the greek banks. there -- what is happening with the likes of deutsche bank? steve: we had the same exact issue at lehman brothers where the view was they were not solvent and they were allowed to liquidate. it was a liquidity problem just as some of the big banks had. it is a very complicated concept. the practical reality i

that is what john cryan has warned about. let's not let the negative news impact our day-to-day business. we saw that earlier in the year, where trading clients pulled back and that hurt their trading revenues. i think that is a concern many analysts have, is the impact on the revenue side. francine: there are two things. as you are saying, last night, we understood clients reducing exposure. and that may be share price nervous. overall, the markets are nervous. john cryan today sending a memo this morning. he says it is overblown, it is market sentiment. does he need to address issues head on? he says the doj settlement is not the concern weighing on the prices. it is, isn't it? caroline: it is the ultimate concern, the capital question. the doj settlement is the biggest impetus for that. until they get a number they can go to the market with, there is not much tangible they can do, other than some other moves. we have seen the sale of some other capital boosting measures. big doj question is the one, and that will hang over

the capital ratio -- we had john cryan saying in a memo, don't worry.e ok in terms of capital for the moment. capital ratio is rating comfortably above. finally, now we can focus on brexit. george osborne has stressed the need for the closest possible economic and financial relationship with the european union. speaking to bloomberg in his first interview since leaving office and the wake of the referendum, he warned of the consequences of a hard brexit. >> my view is we should be ending up with a softer brexit than a harder brexit. the economic consequences of a harder brexit will be more severe. francine: let's welcome back the italian ambassador to the u.k. and the director of a think tank policy research -- at net wealth investments. we are going to have a lively discussion. you'v ebeen involved advising the italian government on economic matters. what are you hearing in terms of soft versus hard brexit? areeems unclear, if you german and you want red lines, that we will do anything but a hard brexit. >> so i hear around here in london. of course, w

yesterday, we heard from john cryan.ly enough, axel weber is addressing a range of issues within the banking sector, but he is also reaching back into his more comfortable world of central banking, saying the wo rld is using monetary policy to solve economic problems. he has also said that the world is really failing to accept -- they world cannot accept that monetary policy is not working. the central bankers that are running the central banks appear to be telling us they still have many tools in the box and that monetary policy is working, but axel weber is a little unconvinced. let's turn our attention to something else the world is grappling with right now, and that is what is happening with the brexit. may says she is willing to leave the eu single market if demands on immigration are not met. we are done with the single market if we cannot fix inter-european migration. they decided there was no need for a parliamentary vote. what was the top line, anna? anna: i thought there were a few interesting nuggets yesterday

guy: daniel, does john cryan has the right is his model?ing this is is in the right direction? about the business, we heard in the hedge fund business , i am not able to assess this. and all around the capital is hindsight for deutsche bank. i think they should be able to reach the capital target by the end of 2018, even when profits are low in the next two years. guy: daniel, great stuff. daniel regli joining us. thank you for your time. we are going to be speaking first two steffen ingles, he will be joining us. bankingility of german clearly a critical factor. that conversation, 12:10 p.m. london time. 7:10 a.m. in new york. we are going to study the tone for what that conversation will look like in the united states. the chinese currency achieves mobile reserve stasis tomorrow -- status tomorrow. this is bloomberg. ♪ caroline: welcome back to "on the move." there is one story in the town. it is deutsche bank. did share price and the single digit territory. still 10. starting to reduce its exposure, concern about its capital. when we are

this is john cryan's job and not mine.ll see all of these things and he will act properly so that the board will be satisfied. let's talk about the challenges for our organization, please. mark: and 20 seconds, what is the biggest challenge your organization faces? is the0 seconds, what biggest challenge organization faces? uwe: we try to stay with our business model which is based on the dependence on the cooperative banks and the local region. we are in a global war with global regulatory -- which forces our small banks to change their model at the customer side. they have to fulfill relatively strong regulatory burden and -- in their small houses. we should convince the european commission, the european banking authorities to act more proportional to the needs of small banks, because it just because from my point of view, it would be horrible if the result of all of this regulation over the last 10 years would generate a situation in which small banks would leave the significanthe very banks would emerge, and so the ban

john cryan has been making his own, talking to the build in germany, trying to reassure investors ands saying that capital is not an issue currently. do you believe him? >> with what's currently in their, yes. i think we have an ok tier one capital ratio, but they have to improve that. what's not clear is how they will improve it. you can see how it makes sense. the markets put a .3x multiple for deutsche bank. any other bank can buy it and get a higher multiple. any equity issues will be incredibly elusive with the overhead of fines, so they won't want to do that now. it's probably a win-win scenario, for deutsche bank can score some assets. michael, we course, are seeing this u.s. investigation, of potential $14 billion was the immediate number, and that has become a systemic issue. rbs moves in lockstep, hit with a fine. how much is this consuming the entire sector? >> it certainly is. i think it is something off the front radar screen. they're focused on low interest rates, and some of the other issues the banks face, and this has brought back into the fore the amount of fines tha

among the reasons for the share price rise, john cryan seeking to reassure investors.re price recovery encouraging. stocks still down sharply over the last year, down about 50%. more headlines coming out this morning. another german newspaper saying that the government is. >> reportereporting a bailout. you would think that would be further reassurance, but the share prices have slipped since those flashes. so lots of news and developments on deutsche bank. the key news is after the big share price fall, we have had two days of encouraging performance. seems like they stopped the rot. lots of questions still for them. >> certainly. the royal bank of scotland also in the news agreeing to pay $1.1 billion to a u.s. regulator to resolve claims that it sold toxic mortgage back securities to credit unions that later failed. the lender said it set aside $3.8 billion to cover lawsuits, but rbs still faces a settlement with the u.s. justice department. you can check shares, they are up by a half percent right now. another stock to watch is nike. shares taking a hit following d

next for johns cryan from here question mark -- from here?imone: that is what everyone wants to know -- the concerns on the markets, but what has been laying on the agenda, it is up to john cryan to decide and point is in the wrong -- right direction going for. meier, thank you for joining us and giving us the update on deutsche bank. still ahead, andrew wilson from goldman sachs asset management joins us on the program, and he says europe needs to heed's japan warnings when it comes to monetary policy. a big day for bloomberg. you can was set on live go. you can see republican presidential nominee donald holding an event, speaking to chicago's polish national alliance. that she iscomments saying his administration would be a true friend to poland, and talked about his understanding poland pays his bills to nato, and he would negotiate with putin from a position of strength that clinton giveaway -- this is rudy giuliani saying giveaway. .e also have janet yellen we saw chair yellen take many questions from lawmakers earlier. john cryan let's

while we have a letter from john cryan that the bank has never been better but markets really are playing completely different story. so, of course, the equities of deutsche are down. their bonds which are the most speculative bonds are trading at record loss. cocos at record loss and spreading to the forex market. the swiss franc are up on the deutsche news. deutsche is the biggest bank in europe. the biggest bank in germany. systematically relevant bank and almost too big to pail out. that balance sheet is as big as one year gdp here in germany to give you a perspective of how big it is compared to the economic power of germany. of course, there are rumors that the bank might eventually need to be bailed out by the state. the merkel government is refusing that. they are not doing or have been saying they are not talk about it, they are not thinking about it but at the same time we had reports saying that there's an emergency plan in the making and according to my sources berlin is actually really working on such a plan, which is in its infant phase, i would say, they are working on some

the ceo, john cryan thought to reassure investors overnight. that did not necessarily seem to work, but now the french press is reporting the company is nearing a settlement with the department of justice that is much, much smaller than initial reports, closer to 5.5 billion, versus $14 billion that was initially reported. we have not confirm the report. citing people familiar, but the market is paying attention and reacting. out --he talk first came the stock is still down 12 .5%, but you see the bump up in today's session. the rebound. just like yesterday, when it was going down, its rise is also having a ripple effect. david: julie hyman, thank you. setting up perfectly what we will talk about for the next hour or so -- deutsche bank coming up. let's check in on first word news. mark crumpton has more. david, thank you. the national transportation safety board, the ntsb, says investigators are having trouble extracting a recorder from the forward-facing camera on the train that slammed into a rail station in new jersey thursday. the recorder

john cryan defending his company saying swings in the stock price are due to ongoing rumors. it's not just the stock that is in focus. the cocoa bonds, the riskiest bonds sold by deutsche bank hitting a record low, just highlighting the level of concerns around deutsche bank's capital position. despite, though, these concerns, the problem surrounding deutsche bank, the european banking sector, check this out, still up 10% for the quarter. that's just puts into perspective that despite the challenges we've seen in the european banking sector, still higher for q3. and meantime, the european stock 600 index finishing q3 with a game as well, up about 4%. we'll see in the next few hours whether the s&p 500 can match or even surpass its european counterpart. but, of course, at the center to have the debate on whether germany will provide financial support to deutsche bank is chancellor angela merkel, who is already dealing with a number of challenges including the ongoing brexit negotiations, how she handles the wrapping up of the volkswagen scandal, refugees, the influx of refugee

keep an eye on john cryan and deutsche bank. let's show you what is happening here.e take you to my bloomberg. we expected a little bit of softness, as you can see and that is what we are getting, creeping in here, showing you what is happening. the london market is softening up a little bit. 100.hite line is the ftse cac is expected to open up a little bit more softly as well. we are beginning to unwind some of those gains with all yesterday, but not by much. let's show you what is happening with the imap. this is the stock 600 breakdown on a national basis. 0- this is the stoxx 60 breakdown on a national basis. let's get the details of the gilt market opening as well. caroline: we have seen yields tick lower. it looks like we can see this in the u.k. as well with the tenure year gilt yield. so, this yield, ever so slightly lower here at the open. living on to -- moving on tot stocks to dig into. there is definitely more to the downside. energy stocks look to be leading the losses right now, down 0.8%, not a surprise given the weaker wti and brent prices. and then h

this is john cryan, trying to steady the ship.alking about strategy and has been benefiting, as the whole of deutsche bank, from the steeper yield curve. let's talk about the day ahead. it is coming out of bratislava, where we have the first summit in more than four decades without the united kingdom. caroline is there. what are they saying, caroline? caroline: they are all meeting behind me in the council. merkel is talking of a determination, guy. they need some sign of unity to project the fact that the 27 countries together are stronger post brexit, rather than a push we are seeing at the moment toward less integration, more h ungary and poland foisting this at the moment. a determination to tackle what she calls a crisis. she says you need to be tackling security, defense, and protecting the eu orders. it seems they all got the memo. we heard hollande talking about security. we heard the luxembourg leader also speaking about security and economic competition being a priority today, guy. we do have one outlier, the czech leade

the ceo john cryan defending his company in a letter to employees saying due to ongoing rumors, talksbout their liquidity reserve saying there are forces in the market trying to rattle trust in that institution. >> well, i think that's true. i think that we're in an asymmetrical world as commentators. i think if i said this is going to be like lehman brothers and in the end it's like lehman brothers i look like a smart guy, but if it isn't, then no one cares. in other words the tenor of the rep portage is really very negative because it's safer to be negative. it's safer for me to say that bank has issues than for me to say it doesn't. but i will actually give you a scenario some people are talking to me about that is a more positive scenario. the problem here aostensibly, justice department reports to the president of the united states. i'm not saying president obama is nixon and we can have a massacre at the justice department. that's something nixon did, he fired the people investigating. i'm saying at a certain point obama and merkel are friends. this is a -- what's known as a nat

on the deutsche front, john cryan and this german newspaper talking about no bailout needed, no capitalaise. meanwhile, government officials making anonymous comments of their own. where's your head on d.b.? >> okay, now, if i didn't know better, i would say this is going to come out so harsh. and i don't even give a -- this man is almost chemetic. he hopes the department of justice will treat deutsche bank with the same fairness american banks center already agreed on compromise. $13 billion? $17 billion? is he kidding? once again deutsche bank shows you how clueless they are. go speak to jamie dimon. don't speak on the record. do you remember what those discussions were like? how did you get $13 billion? say another thing it's $15 billion. where's the due process? can you show me the breakdown for $17 billion by the justice department? we don't need a breakdown. we don't need no stinking breakdown. so this gentleman may be as clueless as the last person, so my advice is speak with nothing. where do they fit in distinguished bankers? just in terms of characters. >> understood. >> the d

it seems every time john cryan talks, he is telling us merger orculation isn't happening this asset salehappening either. michael: the strategy he has laid out has not produced a lot of results as of yet. a lot of people are out there asking what the next move is. look at where the stock is trading, there is pressure to do something more. he is talked about cutting cost, laying off people. they have a plan out there. investors are looking for another piece. mark: it would be a big shock if they did sell it. one of the ironies of the current situation is that the units that would be easier to sell are the ones you want to keep. become muchment has more attractive after the financial crisis because you don't have to hold as much capital versus a trading business. it is an attractive business for banks out there. there would be plenty of interest if there were to. vonnie: is it a little bit like the federal reserve? the more he speaks, the less the markets listen? been a lotere has written about the lack of more hour at deutsche bank and the lack of employees seeing a vision. he is trying t

i've said before that what john cryan now needs are some small victories to show he's making progressunfortunately the market seems to be conspiring against him. this is a major distraction. while the number seems very large indeed, it is going to have to have a lot of management to get to an it sensible number. francine: why did they slap on $14 billion? is this the u.s. out to get a european bank? do they really want $14 billion? does deutsche bank have the money? christopher: i think it is really confusing. there's been a lot of people linking it to the apple tax case. i can't comment on whether that is true or not. it is odd that this is played out in public, whereas most settlements were counted out behind closed doors. if it is $14 billion, then absolutely their capital position is going to be tested. again, i've said many times on the show that the one thing we can be sure of is that berlin is watching this very closely and is standing behind deutsche bank to make sure it provides all the support it can. francine: meaning what, chris? can they put pressure on the u.s.? does it

deutsche chief bank executive john cryan says asset management will remain as essential part of the companypond to reports that deutsche bank might sell the .nit could in in a letter to employees, he said they should not be distracted by sales plans are mergers. restarting trading in its british property funds. julytrading was halted in after a surge in redemption requests in the wake of the brexit vote. thread needle agreed to sell 25 properties for more than $220 million. star board value is targeting irish drugmaker perrigo. it has disclosed taking off a 4.6 steak and it is criticizing its operational and financial mistakes. they said they rejected a takeover offer from mylan left last year. the company has not commented yet. bloomberge latest business flash. coming up, it is battle of the charts. global bond yields climbing. is this the start of bond 2.0?o tantrum this is bloomberg. ♪ vonnie: it is time now for our global battle of the charts where we look at the most telling charts of the day and what they might mean for investors. you can always access these charts by running the func

once you get past that, people would feel they have to access capital, but why would john cryan issue new capital and give the department of target -- just as a bigger target to aim at. it would the game, but seem ridiculous. nejra: that is one of the things you have been pointing out, a balance of raising the capital, and that impacting the front. how can they manage that balance, then? they'll get a better idea of how far they are on the negotiation -- and when they get further down the line, how do they fund the resources, or do they have to do something else? major, talking about major dilution to existing shareholders, and i think john would try to avoid that if he can. obviously, lobbyists have been involved, but how far can it go? talk to the department of justice? ken angela merkel? mr. wheeler: i do not know about angela merkel. i think she would like to avoid doing that. i think john would like to avoid doing that. there are plenty of high-paid lawyers. a nephew works for the firm. i'm sure they're looking to see what they can do to mitigate the impact. end, the management w

. >> john cryan looks to calm the fears. >>> the selloff broadens to the other banks with credit suisse among the biggest losers. >> deutsche slump dragging on others. bund yields give up this week's gains. >>> we're seeing a lot of selling across these european markets today. the dax off by 1.5%. main culprit deutsche bank off by 7%, in part scrapping the dividend yesterday. some senior management members leaving the firm and deutsche bank, all these concerns around capital, around the fines, around them losing business. the cac 40 off by 1.6%. italy also losing 1.7%. the banking sector that once again is the worst performing sector in the european markets today. for the move september down by almost 9%. the dax in the month of september is off by almost 4%. so this by and large is the banking, the deutsche effect. i want to show you how this is impacting the currency markets. yes it is seeing some safe-haven flows. we're seeing dollar/swiss at one month low. euro guess the swiss franc at one month low. the dollar a touch higher against the japanese yen. of course it's having a knock o

john cryan does not give a damn about economic analysis.he just he is fighting for his life. alix: we will talk about jobs tomorrow, but it is this debate going forward. tom: the trip point is 150,000 according to bmp. asx: echoing bill gross well, anything above 150 he said that is screaming hike. 10 in from 7:00 until 10:00 a.m. for bloomberg surveillance. talking about immigration. to say acrossuch the board, whether the challenges europe faces, but the challenge to do with the refugee crisis. this is front and center in germany's mind where he has been speaking about refugees and other problems transcending national borders. this is all tied up with the u.k.'s decision to leave the eu. the pivot tomakes immigration and local elections and germany as well. chancellor angela merkel could potentially face a defeat or lower in the polls this weekend. caroline: the anti-immigration party that seems to be following -- bubbling up at the moment is known as the alternative for deutschland. running neck is and neck with the anti-immigration part

this is what john cryan has been trying to put forward.drisis nevertheless, this is an issue of confidence. this is why we see credit default swaps. this is why we see on yield spiking. share price near record lows. thaturrounding the issue less sophisticated hedge funds or retail clients, what about depositors? will start to move away from doing business with deutsche. >> this is where the market begins to reassess. 10 clients out of 800, that is one context. whether cornerstone clears with deutsche bank really begins to shift the dial. that is where one day possible move turns into something with more aggression. commerzbank, huge losses. the thinking there? is this enough to stymie the right on commerzbank? cuts,at swings of job factor in some of the boost in jobs created by the digitalization of the bank. that is one in seven employees, that is one in seven employees, big moves being taken. they reinstated it after 2007. was bailedive itself out itself. having to take drastic steps, cutting costs. all to try and prove that in this envi

that message is coming from john cryan's office.do not know if we will have dramatic steps from this man. i expect he is paying attention to what is happening with mr. draghi this week. , and everybody else in the banking sector, must have their fingers crossed this week. >> absolutely. when you look at the issue of european banks, it is negative rates. there is no doubt that as that rate goes more negative, it is punitive for the financial system. to be fair, the ecb recognize that. when they went more aggressively likelihood is a lot more qe and a lot less in terms of negatives. guy: what is happening in italy i, the banking sector cannot fail. that economy desperately needs a functioning banking system. germany, in many ways, is in the same position. >> it is. you will see a lot of the entire banking system in europe. there is likely to be a lot of consolidation. there are elements of banks in europe that need a little bit more capital, and that is critical for growth. if we can get more growth in europe, that will help banks as

is it john cryan or mario draghi? >> to be fair, it is probably a bit of both. plan was, let's have to we, monetary policy, asset prices will go up, you downsize your balance sheet. that is sort of played out, but deutsche still has a big, whopping balance sheet of $1.8 trillion. so i think the issue -- the problem isdeutsche still has a , whopping balance now is that wie flat yield curve, they can to generate profit. they can't internally generate capital. neither of them is right or wrong. so i think the question is now, can you generate that equity by setting up assets? that is a we have seen from assets in the last 48 hours. guy: how much more can they do? the amount of money that potentially has to be raised is enormous. >> absolutely. but the issue right now is not their capital, it's more sentiment and confidence, telling both shareholders and their customers, look, we are ok, we are fine. and that is what the bank has been doing. there is very little they can do now other than, as i say, show their intention to raise that cash. we aren't at the stage whe

john cryan, indicating the government will not back stock deutsche bank.hink a lot of people will question that. commerzbank is also in focus. the meeting will start today. it might have are they got underway. they are talking about what the shape and structure of thougwhat that bank is going to be. we are dissipating the announcement, coming out later this week. the banking sector is remaining front and center for germany. a quick look at this chart, the deutsche bank koco. marilyn watson is still with us from black. european financial credit. is that where i want to be, briefly? >> selectively, yes. a lot of the value can be found in european financials. especially when you compare it to corporates in the corporate sector. there are a lot of risks out there, but there is good value to be found. guy: thank you very much indeed. the market open is next. this is bloomberg. ♪ guy: right, good morning. we are on the move and watching what is happening in the city of london across europe as we start european trading. oil speculators are abandoning hope that op

john cryan says asset management will remain a central part of the company.o reports that go might sell the unit. in a message to employees, he said they should not let themselves become distracted about speculations on sales plans or mergers. hp is seeing its future in copiers and printers, agreeing samsung's printer business for a little more than a billion dollars. hp will show off several new copiers at a corporate conference in boston. that is the "bloomberg business flash." the bank of england deputy governor has resigned after a couple of years. over one of take the high-profile positions at the london school of economics. we go to scott hamilton. carl weinberg is still in new york. out of the blue? it is a good opportunity that she did not want to pass up and she has taken the job. it is a higher profile job. she will be her own boss. she will have a big international process -- the institution has a big profile as well. that is going to be a big loss. a certain extent, with brexit coming up, can that fulfill certain response atlities yet nevertheless

difficult days for john cryan.b bear about is still here. -- bnp paribas is still here. >> certainly from our perspective, we would argue that the key driver of euro-dollar is policy divergence or a lack of. really there is all eyes on the fed. this is really what is driving euro-dollar. had we gotten a rate hike from the fed last week, i would argue the dollar would be stronger. euro-dollar would be lower, really what the fed has done his kick the can down the road. the market is now focusing on december. we think they go in december but that is a way off. markets will need convincing and will do range trading until we get there. guy: trading north of 50 at the moment. useful but not want to present all the time. euro-dollar.o this this is a long-term chart. this is going back to 2014. lower and lower and lower could we saw a bit of a blip yesterday. the market is pricing in nothing in terms of outsize moves. they are expecting the euro-dollar to sleep peacefully through the next period. what is happening in terms

john cryan calls for the -- ubs chairman takes to the stage in frankfurt.solution be european banking sector

i would like to talk also about that letter of john cryan, the ceo of the bank has been writing to itstaff where he writes this morning, urging the staff to keep their calm, to actually consider how strong the bank is. the letter is saying, he's saying in the last two decades was never that strong financially, also liquidity position is very strong and that those rumors in the market, those certain forces he's saying trying to destabilize consideration that the bank needs fend off by talking to the clients, convincing them that the bank is in a stable position. of course what he fears is that this is a downward spiral. this is self-fulfilling prophecy to happen if a little group of clients start to withdraw funds, big ticket clients might to the same. we're nowhere there. for a moment a lot of nervousness, hysteria in the market. also looking that deutsche bank share issue is rattling also other markets. look at the swiss franc, look at the other equities. also the absence of another big story. talking about, of course, in that relation about a potential government involvement from ber

does stock price talk here or our institutions in germany and the leaders, john cryan and the others,stock rice? blind to there not stock price but in germany where you have a labor shortage you could have an a choir and fire strategy that wipes out a number of jobs. you can do that in germany and make a bank possible by drastically cutting costs. tom: what about deutsche bank and commerzbank? understand how they apply the anglo-saxon. david: that would be two drunks holding themselves up. i think a streamlined, more profitable deutsche bank with a derivatives operation that would be and the tage is to a strongly capitalized american bank that does not have one. tom: who would that be? david: wells fargo. tom: you heard it from david goldman. francine: i do not know why you are obsessed with consolidation. two drunks do not make one person who is sober. you cannot put together two week thanks, you need a bank -- week banks. you need a bank that is strong enough. david: the mask in gradient is cost-cutting. best ingredient is cost-cutting. francine: they are doing that and they need mo

if he were john cryan what he would probably do is get a quick capital injection from somebody, a major investor or sovereign wealth fund and have the markets opened with an extra 2 billion in capital. would that be enough to calm everyone down? >> is certainly would not -- it certainly would not hurt. that point, itat is hard to say. politically speaking, this is a different -- an interesting issue. do you think on july ?erkel is concerned about this >> you have to think they're having some conversation. something that will pretty quickly turned on financial to political. thank you very much. checking now on bloomberg first word news. mark: new jersey governor chris christie, andrew cuomo and other state and local officials are holding a news conference at this hour. you are looking at a live picture from hoboken, new jersey, where and new jersey transit train slammed into the terminal this morning. chris christie says the engineer is in critical condition and coiffed rating. governor crist says at least one person is dead and 108 others injured. officials with the national safe hoboke

do not know the political stance on deutsche bank but if you are john cryan, what do you tell the marketsut ofis is sort his control. months ago he was able to calm markets by buying debt. i do not know how much financial room they have to move now. again atconcerned yet a time when the ecb said governments need to do more that the markets will demand more from the ecb. new lows.y get as francine correctly stated, up we go and we rolled over once again. let me start with liquidity and solvency. are we beginning to see in deutsche bank derivatives offer your gadfly work or within the german market liquidity or solvency questions? certainty on solvency and certainty on profit, we do not have that. it is totally true that deutsche bank fills all the requirements but the point is the market wants today what regulators want next year, what they want in two years time. that is the big issue and you will see in terms of valuation on the cash market, deutsche bank shares and german bankshares are at the same discount as italian banks. you do not have the certainty today about what is going to hap

jonathan: -- david: put yourself in john cryan's shoes.id he does not want to go for more capital raise. what other things can he do, given his poor book to price from and the demands places like the department of justice? arjun: unfortunately for deutsche bank, there is not an easy fix on the horizon. first and foremost, it needs to try to resolve its litigation issues. trying to get a reasonable settlement with the doj is the number one priority. in terms of operationally what it can do, it really needs to cut costs, first and foremost. overcked its u.s. peers the last five years in terms of cutting headcount. the bank is implement implants to do that in the second half of the year. that should fill through into 2017. however, unlike other banks such as credit suisse, ubs -- the problem is, deutsche does not have other businesses that are profitable that are picking up the slack. asset management net margins are declining, and its retail bank is operating in a highly fragmented market, where returns are structurally very low in germany.

david: john cryan had to come out and say, they can pay their bills and it was pretty bad back then.us now. the markets are reacting to the deutsche we have seen and they and hit debt and equity they're hitting other european banks. we all knew that deutsche and others had litigation problems. is it worse to me that? the: the headline number is are the people anticipated. i think all of these headlines initially are higher and then they get negotiated down. the markets view is that this will get negotiated some way under half of that number. that being said, you still do not know the answer to that and it is a big headline. news from intel, the company raising expectations for third-quarter revenue. 15.6 billion dollars, give or take about 300 million dollars and the previous estimate was for $14.9 billion. why? who would have thought better pc demand? one in thet 4% of premarket and expectations are on higher pc demands. david: just when people have written not pcs. terrific. the, let's get back to deutsche bank and broader question of what this says about the strength of banks in e

ceo john cryan is saying asset management will remain a central part to the business. there were a lot of rumors and speculation that that division would be sold to raise capital. in a letter to stafford -- in a he said theyffers, are committed to the union. another stock getting hit hard is samsung, the worst two-day slide since 2008. you had those faulty batteries in the note 7 smartphone. the total cost could be $1 billion, as we look at the 2.5 million unit recall. -- thatllion market cap is molson coors brewing apache. it is a bad two-day slide for this company. company -- those talks are set to end. the issue was where the company would have been helmed. the merger company was supposed to be headquartered in europe, the operational center for praxair. lindein lies the issue -- wind ♪ is down in market share. david: there is another story that may be weighing on investor seminar -- on investor sentiment, and that is the health of democratic nominee hillary clinton. we saw that disturbing video yesterday of her stumbling as she was being helped into her vehicle. he