he joins us from frankfurt.ive equity is when the value of your loan is worth war than what the current value of your asset is worth. tell us why you are worried about the car market in particular. it is surprising, isn't that? on the face of it, the car market is doing really well. record sales, transaction prices going up. financing is allowing people to drive around in cars that they probably could not afford in the past. the problem is arising because they were not many used car sales after the financial crisis. used car sales are increasing. thenumber of cars hitting car market hits people on pricing. scarlet: part of this is because lenders are extending the duration of carloads. explain how that has evolved. >> that is interesting as well. the link of loans have been increasing. some are taking them out over as much as seven or eight years on the cars. that means that payments are low, that is nice, they can afford the car. after they go -- after a few years and the go into the dealership, they have no eq

matt miller now joins us from frankfurt. matt? y, indeed he will be a solo ceo from now on after this meeting. there is a lot of trust being placed in him here. there is a vote of confidence that happens at german shareholders meetings. the management members and the apervisory board might give low vote, enough to keep him in. but the shareholders are angry because they lost 50% of the value of their shares over the last year. jon cryer on the other hand, as the new incoming ceo, is going to get a vote of confidence. shareholders are much more behind him, as far as his turnaround plan. indeed, they have no other choice, right? this bank is stuck between a rock and a hard place. it is losing money by the billions every quarter six or $6 billion or $7 billion each quarter. it is also getting sued left and right. new million-dollar and billion dollars suits come in every few days. this morning, we learned about a new class-action suit for a fixed income market. so, real problems for deutsche bank and this will be a long day for shareh

joining us now from frankfurt, we have the chairman of morgan stanley joining us.] lutz raettig great to have you with us. you are a banker through and through. investment banking across the world, in germany, chair of morgan stanley, as you look at the landscape, deutsche bank retreating, others in flux, how does european banking stand over the next four or five years? well, i think we are just starting the conference here in frankfurt called on the move: the future of finance. i think you could say everything is in flux. we have learned a lot of lessons from the financial crisis. we have been busy and repairing bits and pieces. but the aim of stabilizing the system, i think it has been reached. but whether it holds, i think the threat of the next crisis is open. on top of that, i think a lot of changes in our industry, buzzwords, they may change the process. they may change the products. and they will also change, i think, maybe the behavior of consumers and customers. anna: there is been a great deal, a big focus on the u.s. this week, some of the trouble that s

let's bring in the chief economist at standard chartered, who joins us now from frankfurt.e you. is that your key concern around china, the level of debt we are seeing in the chinese business community? achievenk china will its targets this year. talking about 6.5% at -- i think they will exceed that. sector, mainly reflected in the pmi indicators, is soft, and it's going to continue to be soft, but we have to big knowledge that the chinese economy is rebalancing. if we focus entirely on manufacturing, we will get an overly dreamy picture of china. consumption is strong and services are strong, and those different sectors will pick up a lot of the slack caused by the manufacturing sector. but overall, i think the chinese will be able to achieve their growth targets at about 6.5%. anna: do you think the negativity around china is overdone? is that to do with the way china communicates what it is doing with policy? have we learned a lot since last summer, where it seems market didn's didn't really understand what they were trying to do? >> 2015 was a year of extreme negativit

let's bring in ubs's chief economist who joins us now from frankfurt. good morning.raw a line between what's happening in japan right now and what could happen in europe? there's an awful lot of risk being factored into what's happening with the stars running the euro. if some of those risks were to dissipate -- if there was a possibility we could see depreciation of the single currency in the same way we are seeing for the yen? view is that euro-dollar would appreciate, so we don't see a significant risk of sharp appreciation. our view is that the euro area economy is growing quite solidly. we were heartened by the positive q1 data that came out on friday. we wouldn't overplay them too much but our view has long been that it can be resilient to its terms of pressures and that would lead to a modest appreciation of the euro-dollar guy: by the end of the year. it's a different scenario than japan. guy: why is it different? why is the end going up and not the euro? they both account for surplus areas and have similar economic aspects of that -- a similar central-bank t

us. you will continue this conversation. she is in our frankfurt euro. .- bureau what are the implications for society, liquidity, and social change? much more to come. ♪ manus: welcome back. my guest, joining us fromor, -- from frankfurt, is rachel. we are having conversations on the ground here, and many are that the deputy of saudi arabia is a man in to much of a hurry, and he is perhaps overreaching in terms of his ambitions. what does roubini make of the ambitions? there is a lot of change going on right now in saudi arabia. there is a period of catch up after many years of slow movement. it is something that global investors and local investors have been struggling to wrap their hands around. our concern is that the old ,riole -- the old order is gone but there is some uncertainty about the combination of policies going forward. in particular, related to implementation of the ipo trajectory, but also of the economic plans. the plan announced two weeks ago had a lot of good ideas, but it was a little bit sketchy on how that would be implemented, so we are waiting to see which of the priorities gets the upper hand, and i would highlight that oil prices, where they are today, make some of the tr

we are joined from frankfurt by bloomberg's matt miller who has a guest for us. matt?llyh, i am here at the annual general meeting. it has been referred to in the german press as the annual general feeding, because deutsche bank as been really taking it on the chin. i am here with hans-christoph hirt. thanks a lot for joining us this morning. you are going to hold a speech, voting to take part in a vote of confidence for the board and the supervisory board. let me ask first how you are going to vote? a lot of people are not going to give their vote of confidence to this board. hans-christoph: we are splitting, saying the people responsible for the formal opposition, voting against the chart. but we are bolstering confidence in the new management board. matt: so the new management board, he has a lot on his plate. what do you think he can do? this is a company that is losing clients, posting bigger losses then volkswagen. and that is looking at even more fines for misconduct. is there any way to turn this bank around? hans-christoph: the very positive thing is that we h

from you, so write to us. steves: we're in rothenburg, germany's ultimate walled city. in the middle ages, when frankfurt and munich were just wide spots on the road, rothenburg was one of germany's largest cities, with a whopping population of 6,000. today, even with its crowds and overpriced souvenirs, i love this place. during rothenburg's heyday -- that was about 1200 to 1400 -- it was the intersection of two great trading routes -- prague to paris and hamburg to venice. but today, the great trade is tourism. rothenburg is a huge hit with shoppers. true, this is a great place to buy cuckoo clocks, steins, and dirndls, but see the town first. most of the buildings were built by 1400. like many medieval towns, the finest and biggest houses were built along herrengasse, named for the herren, or the wealthy class. the commoners built higgledy-piggledy farther from the center, near the walls. hanging shop signs advertise what they sold -- knives, armor, bread, whatever. rothenburg's wall, with its beefy fortifications and intimidating gates, is about a mile around and provides great views and a good orien

from being active at sea. reporter: the frankfurt takes the refugees to sicily. during the trip, crew members ask the refugees about the smugglers. they find that the smugglers are using the naval vessels as part of the business. >> they told us come in soon as we were in international waters, we would be picked up. reporter: christine is just relieved that there are no serious injuries among this group of refugees. even though she knows that traffickers are using the military, she believes the mission is still worthwhile. >> passing ships are always required to pick up anyone in distress. and that is what they are doing. i think they are better than that, but they are trying anyway. reporter: christine's deployment on the frankfurt will in shortly. but she will leave with a good feeling, knowing that the number of refugees has been cut in half since the patrols began. dan: for those of us were bridges, the story right now is the referendum over whether to stay in the european union or not. that is because many british people have become disillusioned with the eu. right now, the pulse are so tight that it is difficult to predict who will win. but not all europeans are

from being active at sea. reporter: the frankfurt takes the refugees to sicily. during the trip, crew members k the refugees about the smugugglers. they find that the smugglers are using naval vessels as part of the business. >> they told us come in soon as we were in international waters, we would be picked up. reporter: christine is just relieved that there are no serious injuries among this group of refugees. even though she knows that traffickers are using the military, she believes the mission is still worthwhile. >> passing s ships are always requireded to pick up anynyone n distress. and that is what thehey are doi. i think they are better r than that, but they are trying anyway. reporter: christine's d deploymt on the franknkfurt will in shortly. but she will leaeave with a good feeling, knowing that the number of refugees has been cut in half since the patrols began. dan: for those of us were bridges, the story right now is the referendum over whether to stay in the european union or not. that is because many british people have become disillusioned with the eu. right now, the pulse are so tight that it is difficult to predict who will win. but not all europe

cannot solve governments and if do not use this time to push through structural reforms there could be trouble ahead. jonathan: a busy week for paul gordon from frankfurt, thank you very much. think muchou do not can happen in a minute, think again. it's good life to hong kong. what happened with the market today? markete chinese futures in the 10:00 hour plunged 10% in about a minute and snapped right back up to where it had been. a bit of a flash crash. chinese stocks and up closing higher on the day. does this raise some basic questions on the markets and how they are functioning? was a fat finger trade rather than anything more structural from what we have heard. the market was up about three and a half percent, the biggest gain in about three months. there seems to be growing sentiment that the msci will include china and its emerging market estimates. friday's jobs report is seen as key as why the fed will raise rates in june. michael mckee, what are we going to be looking for on friday? fedael: the key to the might break off in the lock. if you are not on your company's payroll on the 12th of the month, you are not counted. 31,500 verizon employ

us as well from u.s. trust. this is "bloomberg surveillance." ♪ david: bond investors prepare for action. fomc minutes show a central bank ready to hike rates. jon: management under pressure. a meeting in frankfurt route utecairo from paris -- en ro to cairo from paris goes missing. we have the latest. a warm welcome to "bloomberg ." a very busy morning. we are waiting for walmart earnings to come out. here's the market situation for you. futures softer in the u.s. in europe, we rolled over, it is the federal reserve minutes aftermath in europe. dax -- we will get to the