undercapitalized banking system in europe.one currency, one monetary policy but a different fiscal policy for every country. most countries are having declining population, and they are falling the way of japan. maria: are you not worried this is going to impact the u.s.? bob: i think it already has. one of the reasons is our exports it's hard to sell to areas of the world that aren't growing. maria: is there any area in the rest of the world you would recommend clients take a look at in terms of investment? sam: i think it emerging markets look attractive from an earnings perspective and dividend yield basis. a lot of their debt has to be paid in the u.s. dollar. if we find the euro ends up collapsing we'll be seeing the strengthening of the u.s. dollar which will hurt the emerging markets. but we do find it's the emerging markets that show the greatest longer term growth. >> you have to feel like with the federal reserve raising interest rates, that will be good for the emerging markets. >> it will be good for their currenci

the bank says is necessary because some of their clients and the market felt that they were undercapitalized. so we know that's taking place. i think the perhaps bigger surprise was the length of the restructuring announcement because there are a lot of moving parts in here not least what they are doing with the bank and asset management business and that will have been a bit of a surprise. after the big 2015 agenda announcement for restructuring through 2020, the job appeared to have been done. clearly there are tweaks and adjustments taking place to throw off more money but also to reduce head count and cost further. i thought it was interesting as well that they have decided to elevate the status now of the cfo and head of the retail banking. so asked john cyan. >> i made to confer these titles. the point was really to share the tasks that i face as the ceo. as you know we're a very large global bank operating in a big way in germany, obviously, but also u.s. and london market and with plenty of presence in continental europe and asia. so i get pulled in lots of directions. it's helpful s

jim: they were just undercapitalized. they were able to operate without significant capital.ein, thank you very much. alix: if you have the bloomberg terminal, you can watch us online, click on our graphics and interact with us. tv on your terminal, this is bloomberg. ♪ ♪ alix: this is bloomberg daybreak, i am alix steel. dow futures aging into positive territory. kicking it off with ab inbev, earnings missed on weaker brazil beer sales and this is the seventh straight quarter. analysts say that will probably be the trough. earnings missed consensus by about 7%. taking a look at kroger, earnings and revenue both had it beat. sales, gross margins also a bit light. walmart putting pressure on packaged food companies to reduce the costs they charge to walmart but the company reaffirmed their long-term earnings growth about 8% to 11%. monster beverage, seeing a monster rally, heading for the best day since april. that flew through to the bottom line, income up 25%. we keep getting caught between the better earnings for some of these companies and better earnings growth, and