>> ceo john cryan says revenue is not as high as he would have liked. astrazeneca as luz billion after suffering a huge blow. and dovish on rates. the dollar plunges to a two year low. officials say unwinding will begin soon. good morning, everyone. this is "bloomberg surveillance" and i'm francine lacqua in london. we are getting breaking news out of the financial conduct authority. a speechs arguing in right outside the studio downstairs in our auditorium. he believes the benchmark is untenable. he's looking at a couple of reasons for this. he says there is a lack of transaction providing real basis. the rates, i would argue in the years, were sito six cut, leading to a $9 million banking fine. we will be listening exclusively to the ceo of the financial conduct authority. time.s at 9:40 u.k. in the meantime, we will be speaking to paul hamill. first things first, let's quickly check on euro data. we have a lot of news. the dollar dropping on the back of the fed. first of all, dollar down. earnings in europe are a little mixed. some optimism in certai

let us see what is next in the strategy for john cryan. we are down 3% at 16.1.g. ♪ >> ceo john cryan says revenue is not as high as he would have liked. astrazeneca as luz billion after suffering a huge blow. and dovish on rates. the dollar plunges to a two year low. officials say unwinding will begin soon. good morning, everyone. this is "bloomberg surveillance" and i'm francine lacqua in london. we are getting breaking

ceo john cryan says the focus will be to revise revenue. matt miller sat down with john cryan in frankfurt, and ask if cost cuts will continue? >> we continue to work on our costs and you saw that headcount has started to come down. that is a mixture of the work we did to restructure in germany, which is almost complete. but also, we have been internalizing some of our technology particular, but the headcount has come down. that will mean reduce costs in the future. we try to modernize the bank. we want to keep up the investment because we do need 10 move on with the modernization -- because we need to move along with the modernization program. you brought renumeration down to some extent. in the last couple of years -- have you started to turn that around? surely, if you want to get the best talent, you have to pay for it. john: we have come against. in the detail of the numbers, you will see the venerable compensation, the bonus accrual has gone up a little bit. we are accruing to a bigger number this year. we only make a decision at the

we'll talk to the ceo, john cryan, that's coming up. stay tuned with us here on cnbc. hey you've gotta see this. c'mon. no. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote. . >>> good morning earnings earni earnings investors await a frlood of corporate reports. >> deutsche bank shares under pressure after reporting a revenue miss the ceo telling cnbc he's betting big on europe. >>> and senate republicans go zero for two in their attempts to overhaul obamacare. the latest out of washington it's jewuly 27, 2017 "worldwide exchange" begins right n right. ♪

we'll hear from the ceo, john cryan in a few minutes time.he thing about that, yes, it missed on capital markets and fixed income trading and pure investment banking and corporate banking, more of a concern that's why it's down 3.7%. the revenue miss focused on those areas. >>> facebook shares are hitting a high after the company reported a huge surge in second quarter profits. shares of mobile ads rose more than 50% facebook has been squeezing more ads into the news feed and on instagram and squeezing more out of those ads on the conference call mark zuckerberg said facebook is focusing on how to monetize messenger and what'sapp. >> we're also working to build a business ecosystem around messenger and whatsapp both have large communities and are growing quickly with 1 billion people using whatsapp daily. it's still early on the monetization side, though we started showing ads to a small number of people on messenger. i want to see us move faster here, but i'm confident we'll get this right over the long-term. >> zuckerberg says video will be

what is john cryan's plan? c is for costs.ut for that falls on concerns around advertising spending. ads, will they eat into profits? hour less than half an till the european open. let's look at how futures are trading. we have green arrows across the board. the strongest gain on equity index futures is in london. the ftse there am a futures trading up .4%. the frankfurt trade, a point dax futuresain -- .2%. not a lot of movement today as there wasn't yesterday, either. yields hovering around the 0.5 level. right there right now. the question is, will investors really go risk on today? buy stocks, sell the booms and try yields up? and dry the yields up? dollar-yen,e got dollar down, yen rising for six days in a row. 110.86 is where we are. one thing that, i cite this morning was the japanese government bond market. the 40-year paper. 2005 forst demand jgb's. that is why yen is a little stronger this one. some oscillation in north korea, south korea and china. europe set to open up 16%. currency is the prism through which we lo

what is john cryan's plan?

john cryan warning about a heart brexit.

earlier, we spoke to the chief executive, john cryan. headcount will come to reduce cost, but we will continue to try to modernize the bank, distinguishing between running expenses and investing, but he wanted to but the investment because we do need to move all of the modernization program. .e have been focusing on costs now we have to focus on revenues. mark: we will hear more from john cryan in the next half. fixed income trading dropping 12%. equities falling as well. bank,ite line is deutsche .489 is where we are today when it they said existential crisis leisure, it was below .80. gap between those two lenders. lloyds poised thing -- posting a bigger drop in expected. protectionment insurance scandal, the been -- 17 a 700 million pound time the total chart 18 pounds per share. zeneca biggest decline on record, suffering a below to its next generation cancer therapy promising a new drug combination failed to check the growth of long tumors than chemotherapy. 13.6% is the decline, equating dollars of value. let's check with emma chand

joining us from our bureau is elisa.sson nitze -- is tell us what we learned from john cryan. the movee learned that we reported ourselves about the week ago, it is a sickly what we are seeing is that big banks are theyg decisions, assuming will move rights from britain into the eu and they are looking at their trading businesses and deciding that they will have to have parts of those in the eu to be operative in the market after brexit. john cryan is telling us they are preparing for a hard brexit scenario, and that would entail new rules and moving a large chunk of the trading business into frankfurt. -- we: i love this quote will assume a reasonable worst outcome, the worst is likely to be worse than people can imagine. what does he mean? does he mean by these moving? elisa: i think he means that this juncture, without any signs of a movement, you have to assume the worst outcome being there will be a possible thing from the u.k. that would mean not been able to trade with clients from march 2019. banks to not want that and they have to prepare for that scenario. hopefully,

john cryan is key to move the lender closer to its german base.ack to the get latest trade numbers out of australia, breaking down the data. the hsbc chief economist for australia and new zealand covering global commodities, all of the australian economy for you. your first reaction, a nice beat, but some pretty rubbery numbers here in australia. >> it makes a lot of sense that you had a jump in the trade surplus. they were bigger than expected, but makes sense. the big thing that has driven that number is the bounceback in were heldts, which back by cyclone debbi in late march and had an impact all the way through april. theg part of the story was significant ramp-up in coal exports after the significant direction from the cyclone. we are finally starting to see strength in lng exports. been doingrk we have to build projects across the country is starting to come to market, and that has driven a strong rise in exports. it makes sense you saw the bounceback and got a trade surplus. haidi: a lot of people are saying it will be greater volatility as

the latest turnaround plan, john cryan comes under pressure to find growth and billionaire howard marx said it is better to turn cautious to some than to wait until it is too late. from new york city, good morning, good morning, this is "bloomberg daybreak." i am jonathan ferro. into the market action this thursday. futures are up on the s&p 500, positive five points. downaded at 117 flat to about 0.25% down. reversible treasuries yesterday following the fed's statement. 230. alix: the damage deutsche bank as doing to the dax. the underperformer over in europe is deutsche bank hit. again.e is down we are at a two-year low. it is the opposite for copper trading at a two-year high. the vix is a lower again. that is the wrap of the market. now twitter earnings are crossing the wire. jonathan: quarterly earnings helping by video advertising even as the social network field to add any new monthly losers and thus dock is down. second quarter sales fell 4.7% to $573.9r earlier million and that beat the average estimate of $537 million. alix: this is a big deal. a big question is can a growth

see a juxtaposition of quiet activity being muted in the investment bank and we heard this from john cryan we have heard it from u.s. banks on wall street. client activity being active and as high net worth individuals go, or their wealth management division, private investors were getting into markets and they told us that, especially in europe where they had been out and risk-averse last year, getting back in and at risk on this year. whereas the hedge fund clients are not seen any activity from them because there is no volatility where they make money. investors like private clients, family offices, they were getting back into the markets and getting very engaged with the markets. jonathan: and important distinction. you have to probably get a airplane to berlin. thank you. hanging around for that view. great to catch up. for more on the health of the european financial sector it -- sector, we turn to stephen parker. about the situation with arclay's.isse and br restructuring turnaround plans, an update on where we are at barclays in credit suisse? a with barclays come turnaround in res

deutsche bank to the executive's john cryan said the best majority of trade will probably move to germanyearly source with approval for its $85 billion takeover from time warner. they are focusing on whether at&t can promise not to use its way to give an unfair advantage to its own program. that is the latest bloomberg business flash. european equities, four minutes away from the end of the monday session. this is bloomberg. ♪ these days families want to be connected 24/7. that's why at comcast we're continuing to make our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. mark: let's take you through the action. two industry groups rising. banks, construction, autos worth mentioning. the european union and germany -- german authorities. they are exploring collusion among producers. the german auto industry faces another major scandal

ceo john cryan wanted to get better, but warning it will get worse. we hear from him this hour.ork city, your chariot awaits. bus service launches in the city. has to see what the ceo say later on. julie hyman is with us. halfway into the trading day and a lot of earnings i guess. julie: the digestion has been a good one, atlet

we've heard about a few hundred but the exact numbers not entirely known. ,ark: is john cryan essentiallyef executive, is he girding for a hard brexit now? steve: what deutsche bank has been saying if they're hoping for the best, preparing for the worst. no one could say the brexit will entail. deutsche bank saying, we will make reparations if a hard brexit does happen -- we will make preparations if a hard brexit does happen. mark: great stuff. thanks for jumping on air. story just breaking. vonnie: now to the u.s. economy. weak inflation expecting to weigh on the decision of interest rates this week by the fed. anet yellen told lawmakers in meeting that inflation remains low, but did not signal a change in the feds path -- in the fed's pass on a rate hike. orientation shifted from what is the reason to raise reason towhat is the go off the path for gradual increases? as you can tell from the comments of chair yellen and others, people are thinking about what is going on with inflation. next couplew in the of meetings, those concerns will be strong enough that the fed will hold off from

john cryan warning about a heart brexit. -- about a hard brexit. the boj has to push back its inflation target one more year. selling on the margin when it comes to the german 10 yield bund. morning,ming up this 7:45, the important ecb rate decision followed by mario draghi's news conference 45 minutes after that. initial jobless claims and the fed survey. at 10 a.m. we will get the indicators. after the bell we will have fourth-quarter results from microsoft. now, let's get an update on headlines outside the business world. emma: a startling admission from the president about jeff sessions. the president tells the new york times he would not have appointed sessions if he knew that he would recuse himself from the russia investigation. he called sessions' decision unfair to the president. the president may take another shot at getting a health care bill passed after the present parish republicans to stay in washington until they repeal obamacare. republican senators met with the president. mitch mcconnell still was to hold a vote on a repeal bill n

. >> deutsche bank ceo john cryan telling employees to prepare for a hard brexit in a videotaped messagen said there is a lot of detail to be ironed out and agreed depending on what the rules and regulations turn out to be. we will try to minimize disruption for our clients and for our own people. basically what we are seeing the big banks are making decisions, assuming they will lose rights from written -- from britain into the eu. they are looking into the businesses, trading businesses and deciding they will have to have parts of those in the eu to be operative in those markets after brexit. they are finding that they are preparing for a hard brexit scenario and that will entail this and move a large chunk of the trading business into frankfurt. >> talks between scripps networks and potential suitors are heating up. according to people familiar to -- according to people familiar to the matter, a deal could be by the end of the month. viacom has been holding separate talks with the owner of hgtv and the food network. give us a sense of what is to be negotiated? >> one of the main facto

just four months into his latest turnaround plans, deutsche bank ceo john cryan is already dialing bankwhat is weighing on germany's largest bank? my colleague matt miller sat down with him in frankfurt. >> we continue to work on our costs. yes, you probably saw that the headcount has started net to come down. that is a mixture of the work that we did to restructure in germany, which is now almost complete. but also, we have been internalizing some of our technology people in particular. the headcount has come down which will come through as reduced costs in the future and we continue to modernize the bank. we distinguish between running expenses and investing, and we want to keep up the investment because we do need to move on with the modernization program. still a bit of a mixed picture, but we have been focusing on costs and now we need to focus more on the revenues. matt: you brought renumeration down to some extent in the last few years. have you started to turn that around because surely if you want to get the best talent, you have to pay for it. >> we recognize that we were a bi

that's the top line from john cryan in terms of the business.be back to talk to you in just a moment. we'll get his thoughts on some of the earnings season and how you play that in the market. we have 85 of europe's top companies reporting through the day. what do you make of this earnings season? this is bloomberg. ♪ anna: welcome back to "bloomberg daybreak: europe." second quarter profits the expectations. adjusted net income $1.29 billion. inl be speaking to the cfo his first interview of the day coming up at 6:30 a.m. u.k. time. facebook investors optimistic about revenue potential for messenger after mark zuckerberg said he would like to move a little faster. facebook reported second-quarter sales that beat analyst 29.3 billion dollars. , net incometronics rose to a record $9.16 and the three months ending in june while sales by 20%, killed by the success of the new galaxy fortphones and demand semiconductors. that's your bloomberg business flash. manus: let's dig a little deeper into the earnings quarter. we have the global head of soluti

john cryan basically saying, the plumbing of the global financial system is in london and it is darnard to move everybody when the plumbing is right here. it is not as easy as everybody thinks to move. francine: we will send manus back to the beach. manus: i'm all ready. francine: peter dixon stays with us. oil gains as opec puts pressure on countries not cutting production. we will talk about that, and of course, venezuela and what that country is going through. this is bloomberg. ♪ francine: this is "bloomberg surveillance" and i'm francine lacqua in london. this is what we are hearing from vice president mike pence. he had just said the u.s. is welcoming the military commitments. he said president trump assured the baltic states the u.s. stands with them. this comes on the back of extra russia sanctions, which has huge political implications for geopolitics, and for the standing of the trump administration within the republican party. on to other things. oil in new york briefly rising above $50 per bale for the first time -- per barrel for the first time in may. the abu dhabi will

francine: is it getting easier for john cryan? he's had such a tough time.ome some of the large legal hurdles since he took over when he became ceo. the focus now is going to be very much on the execution of his strategy, which he put together a couple months ago. he is trying to basically grow revenue out of business that is actually tracking. he is cutting the cost base c. he has slashed bonuses. how do you turn that machine around to generate more revenue? it is basically what he will be asked to deliver. francine: we will talk more about deutsche bank next. thank you very much. we have deutsche bank earnings thursday. it's a huge week for bank stocks. we also hear from the credit suisse ceo on friday. this is bloomberg. ♪ ♪ tom: good morning gary "bloomberg surveillance." we will launch into the fed show tomorrow at 2:00 p.m.. first wordws, -- news. taylor: senate leaders have not decided yet which proposal to vote on. today the senate will vote on whether to begin the debate. one dramatic involvement, john mccain plans to return to washington for the vo

in the lead to your story today on the bloomberg, john cryan looks happy, maybe too happy.rned? ed: we had a chance to interview all the members of the management board as well as the chairman. the feeling we got from them was that the bank, after the very challenging 2016 in which it faced legal woes, questions about its capital, they feel they have turned the corner and it's back to business. eurosave raised a billion in new capital, have a new strategic plan in place, reverses some of the older ideas they have been pursuing, but it is back to business now. jonathan: are they conscious of the morale in the people below them? at deutsche bank have been through an equally stressful time, they have seen their compensation get battered, they continue to turn up to work, put in the effort day after day. are they conscious of the situation around them? think they are. they have conducted internal surveys. i'm sure they can feel just how tense and how disappointed so many rank-and-file and senior executives have been in all facets of the group. internally,ariness here is another