bank is int deutsche the u.s. is largely an investment bank.ing what affect the u.s. business. -- would affect the u.s. business. david: daniel regli of mainfirst in zurich, thank you. today, we spoke with the home depot chairman and ceo. he shared his views on the benefits of tax reform. there are some highlights. standpoint, icut think we are just beginning to feel the benefit of that. i don't think that has started yet. i think overall, you are seeing wage growth around the country. it varies by market. i think tax cuts is a good thing for the u.s. consumer. the consumer has more money in their pocket. we believe that translates to positive for our business. they were talking about that for the last 10 minutes. congratulations for not mentioning that. something about a circus that happened. you have the trump administration wants 3% to 4% growth with these tax cuts. what kind of growth do you see going forward? >> we use gdp as the foundation base for our growth. that is projected to be 2.7% and then we look at the housing. that has been wor

chris: if you look at the u.s. banksmost of them have reported, that has been stronger than what we are ieing from deutsche bank and had no choice -- chance to go through the barclays results in detail. what they are suggesting is that interest rate differential you theribed is giving opportunity for the u.s. banks and the activities of borrowing and lending which is what banks want to do on a day-to-day basis. this has been leading the conversation around earnings. we look at what is going on in asia or we look back to what is happening in the u.s. and technology has been something that architect been worrying about. i pulled up the chart. this does not reflect her -- numbers.he after hours they clearly beat estimates on a number of levels and reassured markets. are you concerned about issues for the sector? chris: that is what the share price is telling you, results have been pretty good if you look across the technology space whether it is alphabet, twitter and now facebook last night manifestly beating consensus earn

line of revenue growth from equity market activity or from fic activity that we've seen from those u.s. banks so as we look at european earnings from the banking sector and ubs effectively initiates the series of banks that are going to report here, perhaps just worth pondering, if this is the market reaction to ubs which has a strong presence in those capital markets and has benefitted from this uptick in volatility, what does that portend for some of the other banks in europe that may be wil see less volatility in the pickup market. >> certainly something to help me ponder that a bit i'm joined by mark burgess let's talk about the financial sector in europe and earnings and whether you see this sector as something that is going pretty well. >> i think there's some change ahead of it. it's notsuch a brilliant place >> what about europe, our remean equities more broadly beyond the financial sector it sounds like you're quite bullish. >> so we've seen clearly the expanding of the earnings at the beginning of the year the rate of expansion is beating expectations as is the case in market's expe

legacy residential mortgage-backed security issues, an outstanding issue for wells fargo, the only u.s. bank to resolve these issues. this has been a major charge for all the major banks. barclays coming out, less than expected, given that the u.s. were ready to take them to court. the settlement coming in less than expected. that could be a positive for wells fargo. vonnie: is jpmorgan fairly rated by the debt rating agencies? alison: that is perhaps a loaded question. we don't do ratings at bloomberg intelligence, so i wouldn't want to comment on what is fair, not. the bank's balance sheet is strong. one area of contention they have had is in terms of the way that people look at them, regulators, as well as rating agencies, is the diversification of their business and how that helps them, versus the systematic risk of their business through being globally deserve --diversified. vonnie: allison williams, thank you. up, here is the picture for european stocks. five ashe fourth day in investors seem less concerned about the prospects for a global trade war. gains for the ftse, dax, cac 40. th

what big bank can benefit as european banks have to pull out of the u.s.? f you go investment banking in china, which is a relationship business, you have to have people with relationships. it is easier said than done. sonali: and wealth management as well. it dominates this market, but camp jpmorgan take more -- can jpmorgan take more share? alix: you end up having short-term rates -- a real rate that will help u.s. banks. the issue for european banks is regulatory rate and -- can the ecbdibly, hike if the u.s. enters a recession in 2019? the market is expecting the deposit rate gets to zero and economists are calling for the deposit rate to be zero by the time mario draghi leaves office, that kind of passes the buck. that's generally a more dovish outcome rather than a hawkish outcome. david: could the differential between the european central banks and the u.s. affected the economy in europe versus the united states? in europe companies have been dependent upon banks as opposed to capital markets. does that limit the growth potential for europe? stewart:

that would be what u.s. banks are reporting. >> absolutely. rom the investment bank? you want your bankers meeting with, i think, 300 clients face-to-face every year? is that really a key part of the growth you keep talking about? there is a business, discipline in telling people that you talk to clients, create a framework of accountability, a benchmark. i guess you guys have some kind number of do x interviews and write a certain number of reports. our focus is to make sure to give them our best value and keep discipline. we certainly deliver on those injuries. ubs's ceo talking to matt early on this morning after the numbers came out. it did really well but the market is reflecting this morning a little bit of wheat is coming through in other parts of the business. weakness relative to expectations. is tradingthat stock down 4%. you can track all of this on the tliv that's running. there is the percentage drop. just look at the number of buys out there. on ubs. next, "surveillance. -- it's "surveillance." this is bloomberg. ♪ francine: share

reporter: that would beat what u.s. banks are reporting. sergio: absolutely. porter: what you expect from the investment bank? i also some reports you want your bankers meeting with 200 or 300 meetings face-to-face every year. is that a key part of the growth you keep talking about? sergio: i think in every business, there is a discipline in telling people to go out and talk to clients, create a framework of accountability. a benchmark. you guys also have some kind of need to do x number of interviews or write a certain number of reports. our focus is to make sure we go to see clients, give them our best value, and keep the discipline. reporter: let's talk about costs.it is a main focus for investors . how are you able to keep a handle on costs with method -- with mifiid an continued litigation costs? upgio: it is about freeing the resources, streamlining our costs. program we completed a where we basically saved $2.1 billion, and the vast majority was also utilized to reinvest in full to fulfill regulatory requirements, but also to invest in our future in term

it seems like u.s. banks are doing fine and the regime that we have in place is making the u.s. bank system safer and resilience and not impeding their ability to be competitive, not just here but around the globe. >> so let me just ask you for people who are in the room today, what's the one message that you want them to leave with? >> one message i want them to leave with is not just regulation but it is supervision and sufficient, you also need to focus on incentives because incentives drive bank conduct and culture and bank conduct and culture is really important for banks not getting into great adulti difficulties. >> thank you president dudley and please everybody, thank you. >>> tonight we'll show the senate judiciary work on a bill to limit special counsel, robert mueller. the chairman told members he would allow a committee vote. if they got bipartisan support and they did. here is committee chair charles grassley's announcement this morning during the meeting. >> we also have on the agenda for the first time, s-2644, the special consul of independent and integrity act i

i think we are very strong. >> that would be what u.s. banks are reporting. beat what yo u.s. porting. sergio: absolutely. >> is meeting investors year to year a key part of what you're doing? sergio: i think there's always a reason to go out and talk to clients, create a framework of accountability and benchmark. do so manyneed to interviews or reports. our focus is to make sure we go to our clients and give them our best value and keep disciplined. david: that was sergio ermotti, ceo of ubs. still with us is jay pelosky of pelosky global advisors. there is a big difference between european and u.s. banks. i'm going to put up a chart that shows the p/e ratio's between europe and the u.s. this is the biggest disparity since the mid-90's. jay: yes. part of that is the sector make up. europe is relatively light technology. part of it is the factor that europe has been in a slow growth environment since 2008. we are nine years into in economic recovery in the u.s. europe is only two or three years in. lots of room for growth to pick up. alix: the hard part will be the euro-dollar.

here is the one week performance from u.s. banks. jpmorgan and bank of america rising.e have seen acclimating yields. there has been a lot of bouncing around over the past week. new data is rising 7% today. they are selling off assets. they are selling their interest in national beef. they raised their share earnings from $.32 to $.35. they are going to change their name to jeffries, which is the unit they are best known for. we will track that can see this name changing soon. when it comes to bonds, take a look at the bloomberg. we are watching the treasury short interest, which has been planning. interest innet the 10-year note. we have a lot of short interest on that market, which has been rising, which implies rising rates as people are selling treasuries, which could be potentially future and good news for the bank. those banks start reporting earnings as of this friday. mark. mark: i guess we should start right here. not every day we start with russia. look at that red. 8.8% decline in russian -- decline in russian stocks today. the currency is the biggest currenc

host: you like u.s. banks? >> they are neither super positive or super negative. have positive and negative sections. banks are not featuring in either of those extremes at the moment. host: what sectors are you focusing on for 2018? what is driving that focus? is is still the outcome of u.s. tax reform or something else? difficultorm is quite to digest. anyone who has large-scale repatriation to do from overseas , anyone who would benefit from a shorter-term focus. it could be encouraged by tax reform. on the other side of that, maybe those with weaker balance sheets whichgs like biotech, made a good but are not beneficiaries of the things we're talking about. host: when you look at u.s. equities versus the rest of the world, how you view that? >> it is certainly not accurate to say they are safe haven. is outlook in many respects a little bit more visible than in other areas. the best contrast is emerging markets. we like u.s. equities. we like emerging for very different regions. the valuation story is much better. some of the worst aspects of riskhave been red

the final spread of the week ahead featuring earnings from u.s. banks. is "bloomberg realyield." ♪ jonathan: this is "bloomberg realyield." it's time for the final spread. next week,ver the u.s. isseason in the picking up with bank of america, goldman sachs, and morgan stanley reporting. the president of the united states will be meeting with prime minister of japan shinzo abe. bank of canada will make a rate decision. we get the fed book as well. still with me, craig, rachel, and matt. just time for some final thoughts. i want to reflect on the final quarter as quarterly earnings come through. what has changed in the last three months despite all the volatility we have seen in equities and global politics? rachel: that is just it, i don't think a lot has changed, and yet the market has gotten flustered by the pickup in equity volatility. in the zip code of 15 to 20, it doesn't disrupt things. earnings are going to be solid. you have tax reform that is going to help. we agree with the market. s&p 500 earnings up 70%. supply and demand. it has been a rela

u.s. banking system, the activist strategy has had limited success. i think you really have to go , whereto the 1980's there was an occasional success. mutual funds out of new jersey. pushing chemical bank into the arms of chase manhattan or manufacturers of hanover. -- activistgestures investors in large u.s. companies have not had great success in forcing change. there has been success at the custody banks but in terms of forcing consolidation which activist investors often look to do, it has had limited success. mark: thank you for joining us, gerard cassidy, head of u.s. bank equity strategy at rbc. let's check in on bloomberg's "first word news." kailey leinz has more from new york. kailey: the supreme court hears arguments today in a high-stakes case over online sales. states say traditional retailers -- states and traditional retailers want to overturn a 26-year-old ruling. candecision says retailers be forced to collect a sales tax only if they have a physical presence in the state. wrestlingjudge still with a way to determine what should becom

u.s. bankseporting. >> absolutely. >> what you expect from the investment bank? yourry ports you wanted bankers meeting with 200 300 clients face-to-face every year. is that a key part of the growth? >> since there's discipline and trying to go out to go to clients, creating a benchmark, i think you guys also have some kind of need to do x number of interviews or write a certain number of reports and our focus is to make sure we go to see ,lients, give our best value and keep it disciplined. i like the fact that made the comparison between the headlines in the clients but where dcf growth? when you see opportunity? one of the interesting things is the growth has to come with a cost reduction of the same time. that's what investors are focused on. clearly he is very happy about the investment banking and he says their growing that not shrinking it though the size of the investment bank is smaller than has been in the recent past. they are also growing their wealth management and asset management

employers are struggling to find and retain workers with the skills they need a u.s. bank survey showed sixty one percent of business owners were experiencing extreme or moderate difficulty finding qualified employees to expand their business the federal reserve notes labor shortages could be slowing down growth in the manufacturing transportation and construction sectors u.s. politicians are trying to pass legislation to create more vocational training opportunities. in the united states alone we have over by the year two thousand and twenty cents made over six million jobs that are going to be open and available that we cannot find qualified train workers for after the tax cuts and reform legislation that we passed into law just just a couple months ago we've seen the growth of new job opportunities now that will be for nothing if we don't have these pathways for individuals to be qualified and trained if american businesses are not able to soon find sufficient workers to fill their needs consumers could see the food price increases with workers in short supply and have

in a wave of strikes launched from naval vessels and the year the u.s. banks my french and british forces bomb syria. they were aiming to knock out three targets related to syria's chemical weapons program. two facilities in the capital damascus and one in the western city of homs . syria state t.v. broadcast footage of the building it said was a research center hit by a mistrial the joint military action came a week after a gas attack on civilians which was thought to have been carried out by the forces of syrian president bashar assad. we are prepared to sustain this response until the syrian regime stops or choose of prohibited chemical agents i also have a message tonight for the two governments most responsible for supporting equipping and financing the criminal assad regime to iran and to russia i ask what kind of a nation wants to be associated with the mass murder of innocent men women and children. this is the largest display of joint force by western nations against the assad regime and were significantly bigger than us strikes on syria a year ago. s

this week they are going to be at u.s. bank stadium in minneapolis.ill be drier. >> if any of you are trying to ba bulge i apologize. this will make krour hungry. standing in front of melt in akron, ohio. he has come back because last time he did a grilled cheese challenge where there was 4 pounds of cheese. he looked at the menu because they had so many good looking meals. he picks four starting with my perm favorite. monti cristo. >> ham, turkey all battered and deep fried with powdered sugar on top. >> now for the parmegeddon which he called the perogi. it is like an epic cheat month right there. his girlfriend has a warning. >> if you're on a diet, don't come here. >> it is time to cleans the pallet. >> broccoli. >> they say it cleans the pallet and that it was actually pretty good. >> that's good. >> back to the sapd >> these look insanely delicious. they are mouth watering. don't forget desert. desert is peanut butter and banana. you want to know what their favorite is? >> all of it. >> if you want to know what it is go to our web site or check

so i think very strong -- reporter: that would beat what u.s. banks are reporting. reporter: what do you expect from the investment bank? -- isil reports that you expect to meet with 200, 300 clients face-to-face every year. if that really a key part of the growth that you are talking about? create you want to grow, more accountability, a benchmark. you guys also have some kind of need to do x numbers of interviews or write a certain number of reports. our focus is to make sure that we grow these clients, make sure we give them our best value. betty: again, that was ubl ceo sergio ermotti speaking to bloomberg's matt miller. i know you are keeping an eye on how the markets are right now. yes, futures looking kind of flat, the aussie dollar, keeping an eye on that. first quarter due out in australia in 2.5 hours. stay tuned. betty liu up with "daybreak: asia" next. ♪ >> welcome back to back to this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month,

u.s. banking regulators to participate in the chommittee o banking supervision? >> yes. we need to be able to influence those decisions -- >> so do you believe it would harm the american banking system if they pulled out of that and the fsb? >> i think the processes of those institutions can be improved? even they have acknowledged that. i do believe we should remain engaged in them, yes. >> gentlemen from michigan. chairman of the capital market subcommittee. >> thank you, mr. chairman. and i want to revisit the issue that you had talked about wl the chairman and his questioning. and that you twice said that you would need to quote, get back to you on the legalities of the fed involvement at the board level and it seems to me that this is a crucial question to what the boundaries of intrusion to the day-to-day management of the company that the fed has as a regulator. some what to that point, i would like to mr. chairman, submit for the record, a joint letter that myself and chairman barr and duffy sent you. i haven't expected that since it was dated friday. i probably

banks and what they have taken. we will see how europe stood up to the u.s. competition. r: the large european banks over the past week or so have taken wildly divergent paths in terms of strategy and reporting the results. deutsche bank yesterday announcing a radical shakeup of the investment bank, and that may involve job cuts and a retreat from wall street, whereas with other banks such as areclays, they saying they are strong enough to take on the competitors. on the other hand, in switzerland, we have the two biggest banks reporting different results. at ubs, the investment bank doing very well. the wealth management unit taking a hit. with credit suisse, completely different again. the investment bank did not do so well. the wealth management -- >> the share price reaction was very different. nejra: it does seem one of the big things to come through was the divergence between barclays and deutsche bank in terms of the investment banking. , whatg ahead to rbs today will they be looking for in the next week and when it comes to the u.k. banks? amber: with rbs, it's all

relative to the u.s. banks on a regulatory outlook, the u.s. have a less stringent kind of environment, so they have been outperforming some of the eurozone banks. we think bond yields will slowly rise. you are getting some kind of an end to this curve flattening now , which tends to be good for banks. francine: when you say that you would rather kind of it back to normal environment for markets, how do we know that they function correctly with all this extra stimulus? it has been such a long time since we have had it, with is like-- what if it is just haywire? michael: it depends. there are a lot of things to be normalized and to be wrung out of markets. there is a lot of positioning, a lot of mindsets that need to be changed. if you look at the people that populate central banks, their mindset is that qe is an everyday tool to be used. they talk about expanding the toolbox, etc. if would put that also in a broader context, also let's say that g4 central banks, and if we look at the majority of investor outlooks for 2018 were like, i'm not sure

u.s. investment bank which sevened very well the employees but not the shareholder or clients, i would sayee is a conversion of the u.s. strategy to a b.n.p. strategy, meaning focusing on cash management, transaction banking and what is needed for the german and european clients and not to be a key leading bank for your u.s. clients because there are plenty of other options. francine: the management at the top, will they be able to deliver that and if yes, in how much time? davide: this is to be seen because basically i think inside and also along shareholders there is a split. there are those who want to play and think deutsch bank would be the european sachs and after 20 years of failing probably it's time to give up. time will tell. i think here the appointment of the new c.o.o. will be interesting because if they don't deliver this it will be more troubles ahead. francine: should he be commerce bank? davide: even, let's say, i think it would be a mistake in the next future if you tell me three, five years down the road it makes sense. but first you need to sort your house. you need to

u.s. banks card and i had 35,000 points that i wanted to use for a $700 airplane ticket. however, as of januarys way told i need more than 47,000 points for the same price ticket. do i have any recourse? >> not really. this is a real gotcha that we see a lot. credit card companies an airlines pull this fairly regularly and then they de-value what you've already earned. u.s. bank did inform customers six months prior to the change so it is completely legal and you were given notice. that said, i want you to give them a call and say i didn't know if you were doing this, honor the old point system. sometimes that actually works. now if you have a question for me, you could record a ten to 15 second lovell long video on social media and use the #ask finney and reach me on my facebook page and through abc7news.com. >> good advice. >>> so a video game collector got more than he bargained for when he got a pair of vintage games at a flee market. julian turner noticed something strange by the karts --

necessities the russian military reports that frustrated people have become an uprising against u.s. banks rebel forces in the area. said that we were forced to leave our homes because myself when we returned we found every.

the u.s. bank bonanza is now over. europe's turn.with a lackluster set of results. you look at the endeavors in the first quarter of clients activity. describe aswhat you a normal season and all the factors. muteded by a much more clients activity levels in february and march which was similar to what we saw in 2017. julia: that is your business flash update. jeff smithming up, makepeace to avoid a prolonged proxy battle over control. we have details of the deal next. we have our eye on the 10 year yield as it floats with every personal level. right now, coming down. 2.9 -- 2.9%. we have more coverage just ahead. from new york, this is bloomberg. ♪ bloomberg. ♪ julia: it is 3:00 in new york and 8:00 in london. scarlet: welcome to bloomberg markets. julia: live in bloomberg world headquarters in new york over the next hour. here are the top stories we're covering. the 10 year treasury yields closing ahead of a week packed with economic data and fresh debt issuance. and the crockpot maker bringing on new directors. awaiting out the bat

flying high is what we call these charts, u.s. bankslosing the highest earnings per share fiscal crisis. rank of america reported record profit. more on that in a bit. , wells the green here fargo, the blue is citigroup. this has a lot to do with cost-cutting and the benefits from the new tax plan. what is important to keep in mind even though we see profits rise to the highest earnings per share since 2007 is there is a lot of other news with this, and , a lot ofs a whole strategists are warning the spectacular results anticipated may already be priced in. we saw with the commodities, the shot in the arm from the geopolitical worries last week, but lost momentum quickly. >> yes, they did. reticular the with oil. we had a better than 8% gain less week for new york traded oil futures. that came off in a big way. the trend is higher for the month. no one is expecting there to be extended hostilities. this was a one and done event. involved infund trading oil said pretty much this was a strategic matter, and so you are seeing some of the b

u.s. major banks, it's up beat as they talk about the numbers.e talking with your guest about the ten-year treasury yield being up that is something that's on the mind of sergio ermotti, the ceo. >> it's a psychological issue. if you get close to 3%, you go up to 3% i think there is an absolute and psychological element that we are thinking people will assess more to have a psychological level of 3%. maybe something we need to watch. >> reporter: and you know what, brian, it's europe again that is the issue here i think for ubs when you look at the wealth management business, they pulled in record in flows from the americas and from asia pacific, but europe still looks a little bit ho hum which is why sergio ermotti is focused on interest rate levels and wondering what that might do to equity market income going forward back to you. >> geoff, it's not just ubs. deutsch bank has made a lot of news in the last weeks and days. how much of their troubles and big news making events are they affecting the ubss of the world at all are they affecting con

a u.s. bank survey shows 61% of business owners were experiencing extreme or moderate difficulty finding qualified employees to expand their business. the federal reserve notes labor shortages could be slowing down growth in the manufacturing, transportation, and construction sectors. politicians are trying to pass legislation to create more vocational training opportunities. >> by 2020 there will be 6 million jobs that are open that we cannot find qualified trained workers were. after that tax cuts and reform legislation we passed into law a couple of months ago, we have seen the growth of new job opportunities. they will be for nothing if we do not have these pathways for individuals to be qualified and trained. >> of american businesses are not able to find sufficient workers to fill their needs, consumers could see food price increases with workers in short supply and have to wait longer for manufactured products and services. >> those could get more expensive. china has called on the eu for

u.s. bank corp. and insure chubb both hit new lows.ou might ask why aren't their more 52-week lows out there? because we are a long way from a bottom on the major indexes. the s&p 500 close at 2355 april 2017 that's the 52-week low to get to that low we would have to drop 250 points a long way to go the dow closed at '02,400 april 19th last year it would have to drop almost 3500 points to hit that level. back to you melissa lee. >> thank you bob pisani. tim, would you buy any of the beaten down stocks >>ic financials are defensive. inthe valuations are defensive i think they are going to do better in a higher rate environment until credit starts the deteriorate. some of the retail names, i think first quarter are going to be very good that's a case where earnings can support. especially when a secular thesis has been weighing them down. i think they have been given new life. >> retail is interesting early data suggests that march is a good month. considering the weather that's bullish. that's why we've seen off performance within retai

deutsche bank scaling back its u.s. investment. barclays says it's gaining momentum. at this could mean for the european economy. this is bloomberg. ♪ david: it is a tale of two banks. deutsche bank and barclays both reported earnings overnight and the executives have very different things to say. >> there is a free scaling of our ambitions particularly internationally and if you like a discipline in terms of the focus. >> one of the most profitable quarters we have had in corporate and investment bank and we are pleased with the results. david: we are joined by david owen of jeffries. i don't want to ask about specific banks but i am really interested in what this might mean in terms of corporate lending and capital raising. the investment bank really goes in the capital markets. what is going on in europe right now in terms of financing companies? >> the larger companies increasingly making use of the capital markets. obviously interest rates are incredibly low. interest rates are sort of driving that form of lending. in terms of smes and households basically the bor

u.s. and deutsche bank would want to accompany them there. back from the u.s. former global ambitions. those ambitions have already been scaled down a lot over the past couple of years by john cryan and it's clear that christian something will continue that trajectory and retrench even further. francine: i know there were parallels drawn with barclays when bob diamond left. are people also asking deutsche bank to break up? so you have an investment unit and retail for deutsche bank? bank intoakup of the separate entities basically hasil and investment bank been discussed in investment bank circles for a long time. rumors pop up every now and then that this is something deutsche bank is discussing. interestingly enough it deutsche bank today came out with an opinion included in its extension of its agm agenda where it rebuts a shareholder's most demanding just that. that the bank should split up. deutsche bank argued that would and itot in its own foot would mean destroying shareholder value and it said even if there was any strategic idea possiblethis at the mo

u.s. banking business and willing to give it a shot and the other irony is they're deciding to withdraw a bit from the u.s. bainvestment banking business at a time when investment banking businesses are picking up is this going to be the right focus for deutsche bank? the market is giving them the benefit of the doubt perhaps the market opportunity in europe and in the retail banking sector in europe is not there anymore. >> the questions that you ask are terrific ones. we won't know the answers until this all comes out in the wash in the fullness of time. it does raise issues as to what the next couple of quarters will look like for the bank i would imagine the phones are ringing off the hook at the financial head hunters around the city this morning. anybody who sat in the markets business is thinking if i'm going any way, i just need to start looking to my future here and i need to make my own arrangements perhaps i can ease back a gear or two on delivers for the bank. they talk about de-layering layers of management which will bring them a boost in terms of reducing costs, but the fac

employers are struggling to find and retain workers with the skills they need a u.s. bank survey showed sixty one percent of business owners were experiencing extreme or moderate difficulty finding qualified employees to expand their business the federal reserve notes labor shortages could be slowing down growth in the manufacturing transportation and construction sectors u.s. politicians are trying to pass legislation to create more vocational training opportunities in the united states alone we have over by the year two thousand and twenty says made over six million jobs that are going to be open and available that we cannot find qualified train workers for after the the tax cuts and reform legislation that we passed into law just just a couple months ago we've seen the growth of new job opportunities now that will be for nothing if we don't have these pathways for individuals to be qualified and trained if american businesses are not able to soon find sufficient workers to fill their needs consumers could see food price increases with workers in short supply and have to

banks are planning to do the same. that means we could get higher yields in the u.s. from here. strategist,-asset you stay with us. ronaity at the boj as enters his second term as central bank governor. the indicators for inflation or turning positive. will it hit 2%? manus: indeed, the whole world is looking for the magical number. this is a man the world is focused on, the shakeup at deutsche bank, a new ceo. but will it mean more moves at deutsche bank >> we are live with the very latest. this is bloomberg. ♪ tous: haruhiko kuroda is set give new findings today. he is set to mark the occasion, with faster wage growth and a positive output gap. 2% target seem a bit distant. this is the story we've talked about for as long as i've worked at bloomberg. the distant low lands end high lands, let alone in the underperformance -- will they make it to 2% and if so would you buy japanese equities? >> i don't think they will make it this year. but that's not really the key issue. i think the trend is what matters to investors and what matters to us. you have seen really good retail , and there an pickup in wage inflation

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we settled for one point 4 billion pounds which is roughly in line with how this u.s. bank settles.we were seeking to do. now the department of justice situation is behind us, and people the a's behind us now, we can be focused on generating double-digit returns -- and that ppi's are behind us now, we can focus on generating double-digit returns. we are not going to give a date to that. we have a stress test with the bank of england to go through. there are things that we want to do with our balance sheets and deal with some of the legacy preferred issues that were issued during the height of the financial crisis that carry a very high interest rates that we were able to call. there are balance sheet issues that we want to do, but at the right time, we will look at returning excess capital through buybacks. we are not going to put timeframe on that yet. asia now where investors are trying to keep their footing as the ground of global trade the seems to shift almost every single day. head of china's top investment term sat down with tom mackenzie. they talk about how uncertainty is a

bank? what do you do with your business in the u.s.? conflictingen statements. t statement this morning said we have to take a look at corporate investment bank and see where it is profitable and cut it where it is unprofitable. is appointed who co-deputy ceo assured his employees there will not be a change in the near term. you see that dynamic starting up on the first day at the office. guy: we have another ceo at deutsche bank and i guess there has to be questions asked about how the board is operating, habit chairman is operating. let's talk about paul. many people suggest he has placed himself in an interesting position at this stage. yeah, so he is the head of the supervisory board and has overseen three new ceo's. octomomout of joseph into the on to jane. and from jane into the cryan. ing is the first not investment banker to run it since the 1990's. it will be interesting to see if he can shrink the bank and bring it back to its roots. that's what cry and was trying to do also. he wasn't successful. up's see if they are betting 5% or 6% at the open. mr. w

those were settled for 1.4 billion pounds, roughly in line with how the u.s. bank settled.partment of justice is behind us, and we took a reserve for pbi -- pppi, we can consider returning capital to shareholders. >> do you think you will be at stock buyback by the end of the year? >> we are not going to give a date to that. tests withse stress the bank of england to go through and there are things we want to do with our balance sheets. and things we want to do with our legacy issues that carry a very high interest rate that we are able to call. some balance sheet issues we att to do, but we will look returning capital to our shareholders through buybacks. we aren't putting any timeframe on that. to asia, where investors are trying to keep their footing as the ground of global trade policy seems to shift. the head of china's investment capital sat down with us in that exclusive conversation, they talked about how uncertainty is affecting business. confirms that. on one hand, there are solutions to the trade issues. but launching trade war is not the solution. if anything, i

thousand people have now returned to iraq in syria five months after i still was driven out in a u.s. bank to military campaign now a u.n. team visited the city earlier this week for the first time since it was freed testament's two thirds of homes are destroyed while most residents still have no access to clean water but city leaders say it's still riddled with unexploded devices made reika the defacto capital of itself declared caliphate when it captured the city in twenty fourteen ministers from egypt sudan and ethiopia holding talks on who controls the world's longest river egypt which depends on the nile for water is worried about a day being built upstream by ethiopia smith explains. in the northeast of africa the waters of the nile irrigate crops that feed millions of people the white nile flows from uganda through south sudan and into sudan and the blue nile from ethiopia into saddam and in the capital khartoum they converge on the world's longest river heads to egypt and not far from the border with sudan ethiopia is building what will be the largest down in africa a one thousand

the u.s. bank earnings bonanza is over. ll street executives are gearing up for their annual meetings with shareholders. citigroup holds its meetings tomorrow and that is where you'll find veteran banking analyst mike mayo. he joins us in studio now. it is not our annual meeting but one of our quarterly meetings. let's talk about the general bank earnings season. we saw nice results from most of the banks in the market just kind of side -- just kind of si ghed. we increased our future estimates for most of the large bank. cost control is great, revenues are outperforming growth and expenses, credit called -- quite it -- credit quality is still fantastic. the stock market has been wrong over the past couple of are bullish theme on the banks and we think earnings will roll. in the next one to three-year earnings will continue to increase and the stock prices will work. vonnie: what you say in your note is at. the meal seems fine but investors seem to be waiting for dessert. what would dessert be? mike: why did the stocks not r