to bloomberg to markets. we are they from the city of london. i am anna edwards alongside matt miller who is in frankfurt. matt: the markets say which way is asian equities going to follow wall street into the abyss as donald trump's terror of threat is felt in markets. europe and u.s. futures are not showing as much as far as direction. the cash trade started 30 trade started 30 minutes time. -- starts in 30 minutes' time. ♪

anna: get the deal done. jpmorgan's ceo says there is an 80% chance of a trade agreement between the u.s. and china. jamie dimon gives us his view, he spoke to bloomberg exclusively this morning. butt may take more time they should do the proper trade deal. i would rather not do a deal then do a bad deal. anna: siemens plans another spin off. will lift its gas business. 10,000 jobs could get cut across the division. and after the break down. commerzbank proves its strongnce with first-quarter revenue following withailure of merger talks deutsche bank. good morning to matt miller. you are in frankfurt. withocus on

deutsche bank. good morning to matt miller. you are in frankfurt. the focus on the german banking sector this morning. matt: i will go over and interview the cfo of commerzbank later on. commerzbank did not miss revenue estimates. that is the most important headline for the bank. euros in 120 million earnings and it was the interest in -- interest in and come they added 123 -- 123 euros in earnings and it was the interest priva123,000 customers. i will go speak to stephan engels. don't miss if you care about the banking sector. lots to discuss.

let's talk about where we are on equity markets. let's get to the about where wen equity markets. let's get to the futures, european equity futures. are we ready to draw line in the sand after the selling we saw selling selling we have seen since christmas eve. that is not what you want if you're long be stocks. this is what we see on fx markets. have the turkish lira in here anymore. it was in here a while ago. we have seen movement over the rerun and votes that have been decided, declared in istanbul. it was here half an hour ago and we had seen a move in the new --land dollar but we are

this after the central bank in new zealand became set central bank to cut interest rates in this cycle. we have seen a drop of more than 1%, paring those losses on the currency of new zealand. stocks wrapped as the thread of tariffs continue to reverberate through global markets. we saw a 470 how it drop on the dow yesterday. we saw the big declines yesterday. the biggest we have seen since the christmas eve selloff of 2018. markets. to the joining us out of sydney. joining us out of sydney. it does look like we finally got the crater in markets, and u.s. markets we did not see on the previous trading day. are we starting to see investors get jittery about this trade deal?

think asian investors have been jittery yesterday, asiandeal since markets held since after donald trump tweeted on sunday in new york. up reasonably well in response to u.s. resilience, today, there was a lot of a sea upof red at the open. markets in china gapped down. but since then, there has been something of her recovery. admittedly, there seems to be a feeling that the ball is still from some peaks in mid-april partly the u.s. is. asian markets and chinese markets have come down a lot the fed few weeks on federns, partly

concerns, partly on a little bit of growing nervousness under the surface that the trade talks were taking a little bit too long. i think a lot of people in asia long. i think a lot of people in asia are ducking for cover and wondering what is going to come over the parapet next. anna: you do have to wonder whether, we are asking the question of the day, our markets complacent about the complacent about the prospects for trade. i am interested in how you define peace, what does the end of the trade tensions look end of the trade tensions look like? i have been reading lots of opinion pieces over the last a

agree,ghlight the breadth even if it is only agreeing to disagree. even if there are difficult enforcement measures. the wto when that was set up is still -- there are still disputes and enforcement mechanisms involved. but the aim, we can debate that till the cows come home, is if that has been achieved. to resolution to smooth the pah for trade disputes. i think that is what you want and apart from everything else, we want a or a good result on trade as far as investors are concerned would be either no increase in tariffs, or an increase in tariffs, but a clear path to resolution that would lead to less tension and fewer tariffs down the track.

for the u.s. and china. matt: what do you think that we of thee in terms european fallout of the european fallout from brexit? do you have any

thinking too hard about. anna: there are many people in london who want to avoid thinking about it. let me ask you about the new zealand central bank. we saw action that some had expected we might see in sydney. we did get there from the new zealand central bank. cycle, what is the

significance of this view? garfield: it is significant. new zealand was the first to start cutting last time around in 2016. and -- 2015 it was. they were the first to go this time. they would take their time about going. they came out with a statement saying the rate picture is much balanced. which sounds almost balanced. which sounds almost like a neutral or acquires i neutral bias. -- or a quasi-neutral bias. they put the market on notice not to expect it just because they cut once. they will cut against -- again soon after.

which was sort of the expectation. is -- gels with what the rba did yesterday with, they did not cut and that although they did open the door to a cut further down, it was very reluctant. developed market central banks in particular feel they do not have a lot of policy space and they are being dragged kicking and screaming towards using it. anna: we should not expect too much from this pioneer of inflation. garfield reynolds, head of the asian markets live team joining us on the last one for hours. you can get involved on the question of the day. are the markets to complacent? marketut to us in the team. tv is the function to use. let's get a first word news update.

is warningmon investors to prepare for higher treasury yields. he says observers often missed turning points in the market area he told jpmorgan's board to think about yields climbing they hit 4% or 5% or higher. he declined to give a forecast of where they are heading by years end. at 2.45nk the 10 year or whatever is today is extraordinarily low. i think -- $12 trillion of sovereign debt. now i think 4% is not a bad number. >> federal>> federal reserve vin

richard derrida -- claire do has pushed back against speculation of cutting interest rates. he said the central bank is in a good place and the policy stance will bring inflation back to target. that ofents echoed chairman jay powell at last week's news conference. that of chairman jay powell at last week's news conference. >> inflation has been running on the soft side recently. we think there is temporary factors to some of that so our baseline view is that inflation will begin to move up towards our 2% objective. we are looking at the data closely. >> iran>> iran is scaling back e commitments made as part of its nuclear pact. the nation has submitted a letter to the various nations that are party to the deal. this is in response to the u.s. ratcheting up economic pressure earlier this month. did not extend waivers that let some governments import iranian oil. this is part of a drive to cut around oil exports to zero. global news 24 hours a day on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna and matt. matt: thanks very much.

coming up, jamie dimon channels andinner brexit minister says no deal is better than a bad deal. -chinatalking about u.s. trade talks. we will hear more from our exclusive interview next. bloomberg radio is they've on your mobile device or

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anna: welcome back. futures and look at how they are shaping up. futures higher. u.s. futures pretty flat and that is important. european futures are looking pretty mixed after we saw extensive selling in the u.s. yesterday and asia. data show exports fell in april. that as president trump threatened hired tariffs on chinese imports ahead of this week's trade talks. j.p.en engle sat down with morgan's ceo jamie dimon in beijing and asked him for his take on the trade back and

forth. >> i don't think they get the deal done by friday and i hope they come to an agreement. i think it is still 80% of getting it done. whatever we thought they were is doubled. that is why the markets are reacting to garrett -- reacting. the rate [inaudible] a can slow down global growth and heard a lot of countries around the globe. >> [indiscernible] that is with the china deal. do you think it could be as dire as that or worse than that? jimmy: the world economy is doing ok. 6.5% growth, that is $1 trillion, america is at 3%, that is half $1 trillion of growth. the rose has slowed down but it is active. the one fly in the ointment

would be this. if they go south, that could change global growth. talks arethink getting a louder voice in the white house and even here to as there is a bit of a push back to the comments coming from donald trump and in that sense, do you hang tough or do you haggle for a less than ideal deal? jamie: i think both sides should interest areast do so hang tough, yet, there are serious issues. they need to be seriously resolved. to --e a lot of progress in doing that. it is good for the chinese and americans. a terrible error to say that we are doing better, just get the proper trade deal going. it may take time but we should do the proper trade deal. proper trade deal.

i would rather not do a deal then do a bad deal. it is a bad idea for america and china. japan and europe also have a vested interest. we are -- they would like to see a proper trade deal done between china and america and they can't support it. >> good they overcome the big differences and that is getting and that is getting a verifiable timetable for if a mentation of their pledges as well as reversing of the technology transfer and the other big issues on intellectual property? jamie: i don't think there is anything i can be resolved area china has opened up its industries so we have 25 industries and they have a hundred. 25y industries and they have a hundred. they need reform in their own markets for bond markets and equity markets, for transparency, rule of law, they need that. i don't think they will do anything in their -- in our interest. they will do things in their own interest. don't want unfair competition, let's blow it out of proportion. a country like china is allowed industrial policy. let them work it out.

are your concerns about the markets? they have been selling off in the last couple of days am a perhaps to rally in the recount -- in the economy. are you concerned that maybe donald trump with like to see ae stock market performing as referendum on his success as president. is he willing to put that aside to get a better deal? jamie: it would be a huge america's policy to be set based on the stock market. the market is reacting to different thanks. the world is growing at 3%. china is growing at 6.5%. we look at that. how can we serve those clients over time? the market will fluctuate, people always get scared and react to certain events. that's not how we run a company. i do not spend much time worrying about that. matt: that was jamie dimon

speaking with stephen engle at the jpmorgan summit in beijing. we are minutes away from the open of stock trading. let's take a look at your stocks to watch. we willer this break, check out siemens, the german industrial giant announcing plans to lift its energy unit and cut more than 10,000 jobs. this is bloomberg. ♪

matt: welcome back to bloomberg markets, this is the european open. we are six minutes away from the start of stock trading across europe and the u.k. let's get your stocks to watch. benedict is looking at wirecard. paul jarvis covering siemens. what is the story with wirecard? benedict: it is a good story. payment company that payment company that has been caught in allegations of financial misconduct over several months and they are raising their forecast seeing 780 million euros in line with what analysts expect. you can expect the stocks to do rather well this morning. paul, siemens, what is the latest? last night they announced they are separating their gas and power division which is likely to go down well. they announced their quarterly thelts, above expectations,

stock has been an underperformer, up above 5%. expect some of that to be unwound today. much.thanks for -- very much. live cash trading on the other side of this break. ♪

anna: welcome back, a minute to go to cash equities trading. let's look at the markets, slight dollar weakness which is of interest given the recent trade tensions over the euro. new zealand dollar slumped around 1%. the first market to cut interest rates in this cycle. losses forouped some the currency there. this is a chinese equity market, indicative of weakness.

particularly in the afternoon session, things worsening. s&p futures in the u.s. pretty flat. from what be a relief we have seen the last couple days. european futures more mixed, but not that far from the flatline on european equity markets. that is the expectation from the markets. it suggests we will not move far on markets this morning. let's see if we follow the asian equity session. session.riced

we have priced in negativity from the u.s. the u.s. session was very session. we have priced in negativity from the u.s. the u.s. session was very let's talk about the sector picture. we are looking if there will be a boost today. inbers out of yesterday after-hours trade, interesting to see if we get any moment. financials, a big area of red. big area of red. health care looking more resilient. energy is up, material down. we do not have a clear safety picture as we have the last couple of days. stocks going up on the stoxx 600. 330 going down. let's look at the individual stock movers.

the big move in financials not driven by commerzbank, commerzbank is trading higher by 0.6%. ubisofteresting to see 2.7%, i mentioned the gains companies, and that is one of the european games companies. -- gains companies. let's move to the downside and look at what is weighing on markets this morning. vesta. numbers out of that stock down by 3.9%. deutsche lufthansa is of interest. -- that ise new flow

ex dividend as well. matt: european markets opening ,lightly lower, not a huge drop nothing like what we saw in the u.s. overnight. threats of higher tariffs reverberating through local markets. investors are trying to separate negotiation tactics from policies. we spoke to a former adviser to the people's bank of china and got his take. >> president trump appears to be crazy, i will call him crazy.lly he wants to squeeze a deal and appear to be tough in front of american political stakeholders. at the end of the day, he wants a deal. matt: joining us now is shweta singh, managing director global macro & eu economics, ts lombard

. what do you think about donald trump's move, the u.s. will put more tariffs on chinese products friday ease and affect -- even as they start talks tomorrow. does it make sense? shweta: it does, actually, a negotiation tact. build up pressure as you get closer to the end date to extract as much concessions as you can. that is what is driving trump's tweets recently, and he wants to that is what is driving trump's tweets recently, and he wants to create an image. let's bear in mind we are approaching elections next year, he wants to create an image of a strong man who is trying to extract as many concessions from

chinese authorities as possible on the trade front. we expect a trade deal to be struck. longer thanld take what we previously anticipated. anna: you talk about the how it is relevant to the timing. i have a chart here on the g20 economy exposed to trade. you think of china as a vast trading nation in terms of size, but in terms of percentage of low down the g20 in terms of the percentage of the economy. the point being made, maybe that removes some pressure in terms of getting a deal done yesterday, or at least this week. shweta: that is an interesting point. for china in particular, the growth exports seem less. it is more about the conductivity or the impact of

exports on. capex. it does seem chinese exports are less than gdp. tuned tochina is external demand. there is not much domestic demand to support that. severe,ct is quite behough it does not seem to on that metric. what is interesting is people under appreciate the eurozone is on thesee exposed trade concerns than many people think. anna: that is clear on the graph we showed. stay with us. we will have more time to talk with you. shweta singh, managing director global macro & eu economics, ts lombard staying with us on the program. years in his role, the ceo is stepping down after eight turnaround that made the largestompany the

turbine maker. today they reported earnings. shares today moving lower on that news. vestas sank raw material prices tariffced, and then the story. he joins us on the phone. shweta singh, managing director global macro & eu economics, ts lombard anders runevad, presiden, vestas wind systems. you managed the share performance over the long-term, not just from the day. are you disappointed to see the shares moving lower? anders: good morning. thank you for having me. atthe ceo, you have to look the price in the long-term. have to be pleased with the performance of vestas. quarter, weat the

actually have the record up 84% so we see a very strong market. sharetinue to gain market in that small space. have more than quintupled the value of the company since you have been running it. it have delivered tremendous return to shareholders during shareholders during your tenure. are you confident your successor can can can you on that trajectory -- can continue on that trajectory. ? anders: i am sure the board will -- the new ceo has been on the board of the company. he is familiar with the business.

he has been part of outlining the strategy. it is a good choice, and makes sure we have the continuity we need as a long-term market leader in this industry. sense on you give us a trade tensions this week, how much is that impacting your business? the raw material costs, there is an impact there, but the tariffs in particular. anders: the tariff have an especiallyhe quarter , a big part of our revenue. we see thoroughly the impact on and on components, but primarily steel is the raw material we use heavily in our

wind turbines. as expected, it will have an quarter. the matt: is the cost of your energytor renewable continue to come down, and complaints about wind turbines continue in germany, are you edgerned about losing an in terms of which form consumers would rather have? anders: no, not at all. if i look at the market as we see it, we see a strong market. is at a recorde high, we have never had a higher order intake, up 84% year-over-year. pleased with competitiveness.

this is such a large market. there will be a need for .ifferent technologies . there will be places where wind is the choice, and other places solar is the choice, and you will see more of a combination, what we call hybrid which is a mix of wind power and solar power, in order to the capacity. definitely see the market is big enough for both technologies. thank you for joining us, anders runevad, president/ceo, vestas wind systems. the company pointing out he will

, andnding over the reins staying on as an advisor. up next, we will bring you the stocks on the move. more on the spanish builder next . this is bloomberg. ♪

matt: welcome back to "bloomberg markets: european open." minutes into the trading day and see a mixed picture. germany, 0.3%, and the ftse down 0.1%. possibly on concerns about going into european parliamentary elections with no intention to .articipate let's get our top stock stories with dani burger. dani: the stoxx 600 might be flat, but plenty of drama below the surface. reported earnings well off analyst estimates, putting in a 340 five dollar million provision for u.s. construction for contract issues. shares dropping to a three-year low.

stas.losses from ve know you were just talking to the ceo who was talking about the tariffs picture. raw material prices are going up, that hit earnings. hit earnings. the competitive environment forces them to lower rices. shares off by 3.5%. a solid beat on earnings from siemens, spinning off their energy unit. this is positive for investors to help break up the company, an historic move. anna: thank you. from german micro to macro, let's look at the economic picture in europe. the economic picture in europe. germany, estimates had predicted 0.5% drop. anticipated.han

the euro has shown resilience in the face of week data. you anticipate better things for better things for the euro area. we get that from others including corporate's. better things for the euro area. we get that from others including corporate's. shweta: we do expect growth to pick up in the second half of the year. before the second half, the second quarter, the current quarter will be quite weak for the eurozone and the global economy. headwinds in the second half of last year are giving away. one of the key concerns was tightening globally, and that has reversed.

thethe chinese policymakers are stimulating the economy. anna: that was on the chart we showed earlier. matt: i am wondering what you think about the ecb. if we have continued weakness in , doesropean growth story that mean we are more likely to get a dove following mario , does than a that mean we are more likely to get a dove following mario draghi than a hawk. shweta: the next ecb president is a guessing game, and we do the top contender, but

what is more important is continuity. what is also important is the next ecb --oud the the political clout the next ecb president will have. the policy options for the ecb showed growth continue to deteriorate or will be limited draghi has been trying to take as many steps as eurozone.o help the he is running out of options, and the key risk is not this year or next year. that's when the pressure starts to build.

shweta singh, managing director global macro & eu economics, ts lombard stays with us. a rate move, we will bring you that exclusive interview next. this is bloomberg. bloomberg. ♪ bloomberg. ♪

matt: welcome back to "bloomberg we are: european open."

25 minutes into the trading day. we see a mixed picture with the dax down 0.2%. not a lot of movement down compared to the losses we saw in ona overnight and the u.s. concern of the trade war. is fed's vice chairman saying he does not see a strong case for a move in either direction. he spoke to the birds mike mckee. to the birds mike mckee. mik>> u.s. economy is in a good place, maximum employment and price stability. case tot see a strong move rates and either direction, direction, comes but as data comes in we will be looking for indications. lombardweta singh from

is still with us. he is backing up jerome powell's use of the word transitory as well. are hearing that support from robert kaplan yesterday. do you think low inflation and the u.s. is transitory? we think the data disappointment in the u.s. worsens from here, and we expect the fed to cut interest rates in the third quarter. fed has built the up the ammunition where it is in a position to reverse the policy tightening it has engaged in so far. unfortunately, we cannot say ecb, where it seems increasingly likely the ecb will exit the cycle without hiking rates even once. expectations are for interest rates to go lower in the next term. anna: with that in mind, i will

show you this chart. mentioned the expectations of interest rates to go lower. this is getting flatter again, they yield curve. , brieflyhree months inverted back and march. is this something that is here to stay? shweta: in the u.s., it is a concern because we have seen the impact in tightening credit standards by u.s. banks. it is a concern that we expect this to be temporary, and not signal a recession, especially if the fed is ahead of markets and take steps to prevent the slowdown in the economy. matt: are you concerned about a earnings recession? there has been a lot of talk recession?

there has been a lot of talk about it, if we are in one, at least it is slight. do you expect companies to start earning more money? capex cycle in the u.s. is under pressure, and we expect more pressure going forward. in asset allocation we are neutral on u.s. equities because the positive surprises are priced in. later in the year we should as theo see earnings trade tensions put a dampener on any expectation. anna: and a great deal of uncertainty. thank you so much. shweta singh, managing director global macro & eu economics, ts lombard. she will be joining matt and i on bloomberg's radio daybreak program. we look forward to that, coming dimonbloomberg tv, jamie says no deal is worse than a bad

deal. our exclusive interview coming up next. jamie dimon's thoughts on trade. this is bloomberg. ♪

trading day, let's get you top headlines. done, jpmorgan's ceo says there is an 80% chance of a trade agreement. he spoke exclusively to bloomberg this morning. >> just get the proper trade deal done. it may take time, but i think we should do a proper deal. i would rather not do a deal van do a bad deal. -- than do a bad deal. matt: siemens plans another spinoff, saying they will list their gas business in another spinoff. stocks a job after the

announcement of a 10,000 headcount reduction. proves its resilience with strong first-quarter revenue following the failure of merger talks. revenue and met analyst estimates. good morning, and welcome to "bloomberg markets: european open." i am matt miller alongside anna edwards in london. i am here for the cfo interview at commerzbank. but first off, i want to break some honda earnings coming out with a loss. they lost ¥13 billion in the fourth quarter. they had forecast a profit. also giving out a full-year operating profit forecast that is lower than the estimates of analysts. but honda doesn't say, this is the interesting part, in real terms, its operating profit grew

because of strong motorcycle sales. honda, you know them for cars, but of course, they make the famed fire blade. may not win horsepower wars, but it has got excellent street ability. they are saying motorcycle sales helped out with operating profits. ability, i learn something everyday. let's go through the equity markets. biggest gain, up by 4.7%. 3.75%, the market seems to like the spinoff of the gas and power unit. ubisoft is up, we talked about how ea has delivered something positive. those stocks popped tire, seeing some read across from that.

higher, seeing some read-across from that. lower.nic is also riel also down. we got the latest on that one earlier on. tariffs and the cost of raw materials are an issue there, even if sitting on a healthy order intake. that seems to be the story coming through. and seeing a handover of power as we spoke to the ceo, who is now the outgoing ceo. let's get a first word news update in dubai. says it will no longer comply with the nuclear deal. it has given the other signatories 60 days to fulfill their commitments. the islamic republic is not withdrawing from the agreement entirely.

this is in response to the u.s. ratcheting up economic pressure earlier in the month. we did not initiate the violation of commitment, and we will not initiate any wars. we have never, ever given into believing, and we will never -- into bullying andw will respond to any aggressor. >> new zealand's central banks has cut interest rates to a record low in signals further cuts amidst slowing growth. they are the first central bank in the developed world to begin loosening policy. they say it will remain until mid-2021. president trump has used the same tax breaks as amazon, despite his criticism of the e-commerce giant for not paying its fair share. for a decade, the president paid

nothing, or very little, if federal income tax. that is according to records obtained by the new york times. it reports he racked up over $1 billion worth of losses. south africa has to the polls today. assets are signaling increasing investor anxiety. for a stronging mandate to push through fiscal policy reforms but faces oppositions from factions within his own party. this year also marks the 25th anniversary of the first democratic postapartheid elections in 1994. global news, 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. and i have met -- anna and matt. anna: thank you. european stocks arch -- are mixed of this morning.

-- ar emixed this morning. the markets are not expecting any immediate reprieve from trade tensions. is there a lack of urgency? and can it attributed to how both nations are for global trade? the u.s. and china are some of the least dependent on international trade. in fact, any erosion of the status quo could hit europe and america's immediate neighbors much harder. matt: all right. perhaps increased tariffs are starting to take their toll. data released shows chinese exports unexpectedly fell well imports rose. this was -- while imports rose. our colleague sat down exclusively with jamie dimon in beijing today. we got his take on the trade back and forth. >> i do not think the deal is done by friday.

before, ihe odds were think it is still 80% they will get it done. the odds of something bad happening has now doubled. that is why the markets are reacting to it. they are not just afraid of the it could slow down global growth and hurt economies around the world. >> the imf is already projecting global growth in the world to be at the lowest since the global financial crisis, and that is with the china deal. is it as dire as best -- as that/ ? -- that/ ? yeah, growth has slowed down, but it is still active. the fly in the ointment is this. if it doesn't south, that could change global growth. >> do you feel the talks are

getting a bit of a louder voice? and even here, as there is a bit of a push back to the comments from donald trump. in that sense, do you hang tough or hackable for a less than ideal deal -- hackel -- haggle deal?less than idea >> there are serious issues that need to be resolved. it is good for both chinese and americans. neither side has to do something. i think it is a terrible error to say it is because we are doing better. just get the deal done. it may take time, but we should do a proper deal. i would rather not do a deal than do a bad deal. and remember, japan and europe also have invested interest. we do not coordinate, but they

would like to see a proper deal. >> do you think they can overcome the biggest differences? getting a verifiable timetable for implementation, as well as a reversing of the forced technology transfers and other big issues? >> i don't think there is anything that can't be resolved. china has already opened up industries. they have 100 protected industries and we have 25. they have been doing it anyway. they need reforms in the bond markets, equity markets, they needed to. -- need it to. i think these things are in their own self-interest. america should not blow it out of proportion. why do not want unfair competition, let's not blow it out of proportion. a country like china is allowed to have industrial policy. i wish america had better industrial policy. >> what are your concerns about

the markets? perhaps the rally and recovery is open -- is over. are you concerned that donald trump likes to see stock market performance as a referendum on his success? is he willing to put that aside to get a better deal? >> it would be a huge mistake for american policy to be set based on the stock market. i never worry that much about it. the markets always react to different things. ,he world is growing at 3% china at 6.5%. when we look at that, how can we serve those clients? people always get scared and overreact. that is not how we run the company. i don't spend that much time worrying about. that was jpmorgan's ceo jamie dimon speaking with stephen engle at the jpmorgan

summit in beijing. up next, more stocks on the move. including the services company, jumping after what a goldman analyst calls a solid first-quarter. we get the latest on this danish building and maintenance services next. this is bloomberg. ♪

matt: welcome back, this is the

european open. 45 minutes into the trading day, we see a mixed trade. has announced a sweeping overhaul. the engineering giant listed on the dax is listing its gas and power division and cutting more than 10,000 jobs. that is as second quarter profit beat estimates. joining us from of their headquarters is our german industry reporter. how big is this for the company? >> good morning. fact, it mightn be the biggest of a have had in -- biggest they have had in their history. mergers andd a acquisitions, things like that, but this is certainly larger than any they have separated. we are looking at at least $18 billion in revenue.

we were told this morning they are hoping the business will be valued higher than the sum of its parts. we're looking at a very large business. anna: what are investors going to be focused on? what are we expecting to be they are laser focus -- to be their laser focus? >> a couple things. we have a broad outline and a timeline for the approximate listing, sorry, the shareholder meeting and then a list or after that. we know it will be based in germany, the big question is where is the ceo, where are the headquarters? and investigators are looking at the other businesses, because there are a lot of construction sites. remember, investors say will be asking what are the next

steps for that division? bloomberg's german industry reporter coming to us from siemens headquarters. let's get to the other stock stories with dani burger in london. dani: itv falling this morning. some brexit concerns when it comes to earnings. ad revenue falling by 6% and the company is citing brexit drama. companies holding back investments in advertising as the delays continue. ubisoft,oft, rising -- rising with ea, beatinf expectations, expectations, showing the gaming companies can win even with fortnite in the market. iss trading at a high, calling

the results solid. there is good news for the facilities company. what goldman says they want to see some margins and sales improvement before they feel optimistic. but still, shares gaining. anna: thank you very much. but stick with the earnings theme. they have been coming in fast today. our stocks reporter, good to have you with us. let me ask you about imperial brands. they have managed to beat estimates because of the growth in vaping. >> they have been a diversifying intoen diversifying vaping, as many have been. growth is booming, but they are seeing a slowdown.

analysts are worried because there is concern about fda regulation. the minimum age of tobacco could be raised from 18 to 21. will get more clarity in the second half. matt: what are we hearing about bank earnings? here to talk to the ceo of commerzbank, did you do a good job? >> they are a big story. they are about flat now. they did manage to meet estimates on revenue, but it is still a decline. they are adding clients, doing their best, but it is a difficult environment of negative rates. there is that negative news of the failed merger with deutsche bank. all eyes are on the potential merger. there is ing, unicredit santander being discussed as possible banks that could make a big. to a ceo, the

outgoing ceo. this morning, we saw they are numbers -- saw the numbers and the impact on tariffs. higher steel prices, essentially. >> this is an interesting story that illustrates the whole trade war impact on global companies. it is a danish company, the world's biggest wind turbine maker, but it is truly suffering. we see it in the cost of commodities and raw materials. ceo and the incoming ceo is taking over at a challenging time. matt: challenging indeed. and following in big footsteps. we saw he has quintupled the value of the company under his leadership. thank you very much for joining us with some of the many stock stories we have this morning.

we are speaking with the cfo of commerzbank. engle's --, stephen engles joins us. that is one conversation you won't want to miss. 10:30 a.m. london time. up next, battle of the charts. bloomberg terminal users can interact with the winning and losing chart. -- charts. you can also browse all of the other charts we feature and save them for future reference in your own work. this is bloomberg. ♪

>> that is what we have been doing, it has been working for us on the tobacco side. we have got good underlining momentum, the right brand is performing for us and profitability is coming through strongly. brandshat was imperial ceo speaking exclusively to bloomberg. we will hear the full interview with allison cooper later. here the details of her vaping business -- hear the details of her vaping business.

matt: kick things off. chinai am looking at which has cut its reserve requirement for small banks. this is essentially a way to combat the volatility from tariffs coming into the market, putting more liquidity to the market. they are saying this might just work. and because of that, we are seeing the overnight repo rate fall to its lowest since 2015. funding rates getting cheaper and putting more liquidity it. we will see just how much this able to combat trade tensions. matt: their interesting indeed. what have you got? , it is like the chart very important when we consider how the markets digest trade tensions. i will cast my mind back to the session we saw in the united states yesterday. we want to show u.s. futures. it was an extensive, broad-based selloff.

s&p 500 sees its broadest day of declines since christmas eve. how influential was that selloff in shaping fed thinking and the pivot in dovishness? it is certainly a day many won't forget. , we have reference the story a couple of times. to note thatnt futures suggest something flat or positive at the start of trade, interesting, given the last couple of days. matt: all right. well, that is an interesting tidbit, but i'm going to have to give it to dani. the funding drop is fascinating, considering the trade discussions. it's not as interesting, in my personal opinion, no offense, that the u.s. had the biggest drop since christmas eve. chart like dani's aesthetically better.

congratulations on your victory. remember, you can see all of the gtv .gtd go -- on anna: you are over in frankfurt because he will be speaking to the ceo of commerzbank. but on the subject of the european equity day ahead, we are flat positive, up around .8%. wise words from our colleague, saying that remember that we opened flat yesterday and closed down, just highlighting had just because we start on a firm footing does not mean we and their here in the european session -- mean we end there on the european session. matt: things can and do change, we saw that in the u.s. yesterday. not down at all on tuesday and then yesterday it took its lumps.

i am going over to commerzbank in about an hour to speak with stephen engle. the bank came in line with revenue, made 120 million euros, did better than the street was estimating, in terms of earnings. we asked him how he did it. this is bloomberg. ♪

francine: u.s. stocks have the worst day in 2019 on the threat of an all-out trade war. jamie dimon season 80% chance of a deal with china. the chief executive also talked about the fed brexit, and his bank. and the new york times says president trump used tax breaks to avoid paying taxes in the 80's and 90's. ♪ francine: welcome to "bloomberg: surveillance." these are what the markets -- this is what the markets are doing.