what we see is that the competitors of deutsche bank are moving forward and forward and deutsche bank is still falling at problems from the past -- solving its problems from the past and concentrating management power on these issues and not on developing new strategies and trying to compete with its competitors. >> you know, the capital ratio is a positive surprise, 11.9. there has been a lot of speculation about potential capital increase or other as a proposal. do you think that is necessary, and what is the most necessary option he will choose? klaus: i think really, at one hent in the near future, came to the decision about whether to increase the capital or not, because without fresh money, deutsche bank will not be able -- that is my personal opinion -- won't be able to areas andw business this new strategy, what we are demanding for, so i see really personally, i see the necessity in it,pital increase because to solve the problems from the past has caused so much 10ey, we are talking about to 15, nearly 15 billion euros, what they have paid as fines and damages, etc.. i do not

these are your headlines today. >>> deutsche down. shares in the lender fall as the troubled lender posts a 1.9 billion loss for the final quarter of 2016 and ups its litigation reserves. >>> a winning formula. reckitt benckiser confirms merger talks with baby foodmaker mead johnson for $16.7 billion, sending shares in both companies sharply higher. >>> shares of novo nordisk slide after the danish drugmaker lowers its profit and sales outlook for 2017. >> brexit negotiations inching closer after uk mps back a bill that will allow prime minister theresa may to trigger article 50. >>> welcome back, everyone. super busy morning. that's always the case when we have the earnings season upon us. also we just got a bit of uk pmi data just hitting our wires as well. cable currently on screen for you. i have to be honest, i don't see it. let's see. actually, here we go. uk january construction pmi falling 52.2. versus 54.2 for december. that's coming in a bit lower than what we saw a month ago. and construction pmi input prices, the component

we'll talk to deutsche bank c.e.o. later today. rex tillerson has won confirmation as secretary of state. he was confirmed in a vote of 56-43. republicans overcame a demand by temperatures to delay president trump in a resettlement deal with australia. throwing the fate of more than 1,000 displaced people and the u.s.'s relationship with a key ally into doubt. the obama administration agreed to take thousands of imgrants. they abruptly ended their phone call on january 28. the post cited unidentified u.s. officials who were briefed about the conversation. and the bill to -- has passed its first test in arliament. the approval should not be mistaken from unconditional support. the government mr. l publish an outline of its brexit plan today. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. francine: thank you so much, sebastian. we're just getting breaking news out of the u.k.. u.k. construction for the month of january. at p.m.i. crugs figure was 53.2. the

when the last chairman of deutsch bank needed a new job after deutsch bank, where he landed was, very softly, as the chairman of the bank of cyprus. and cyprus is a lovely place in a lovely part of the world and has a lot going for it. but in global finance, cyprus is the locking black briefcase in to which the ill-gotten gains before they handcuffed that briefcase to a russian somewhere. this is where they launder their money. deutsch bank takes part in this huge scam to launder russian money to smuggle billions of dollars out of its office in moscow and new york and cyprus. the bank chairman ends at a bank in cyprus. he was appointed chairman by the two largest shareholders. one of the two largest shareholders is a close personal friend and business associate of russian president vladimir putin. one of the other major investors in that bank, this is where it gets good, is a russian oligarch who they call the king of fertilizer. i know, some of my critics call me the queen of fertilizer but they mean it differently. but this is where the news comes home tonight for americans trying t

a bank account at deutsche bank without paying fees. that is something people are not used to here in germany. a bank account at deutsche bank without paying fees. they are essentially paying for these mistakes in extra costs and fees that they have not seen before. guy: fascinating how the whole thinking story has not been separated from the state or the people. they are essentially paying for theseit feeds back into what is happening with the stories surrounding the euro as well. we will talk about that later. let us stay with banks. we saw what happened on friday. we caught up with the director, gary cohn. he weighed in on the administration's review of dodd-frank. >> we will attack all aspects of dodd frank. care about deep, liquid, transparent and orderly markets. he was standing outside of the white house. he seems to be in the driving seat when it comes to the regulatory story. he was standing outside of the white house. david joins us now. if the u.s. banks get the regulation and get an easier road in front of them, why would i

deutsche boerse and lse not quite dead but the $13 billion tire with deutsche boerse is unlikely to proceed after a new regulatory hurdle. deutsche boerse expects the european commission decision by the end of march. but the odds are at less than 50%. quite a lot of movement in both of those stocks on the back of that. direct line insurance group. leading losses among u.k. insurers. direct line is seeing its biggest slump since brexit. this is after the u.k. cut the personal injury discount rate. ofy will raise the cost personal injury rates. donald trump is spending major defense increases and big cuts to the environmental protection agency, and the state department. to white house officials say the outline to the public will be made public later today. the president will address congress tomorrow night. u.s. government has been told millions of americans could lose their insurance points. briefed lenders over the weekend. billions gained coverage over the -- with the affordable care act. the white house says president trump wants no one to lose coverage. suspended president of south korea

more coming out of deutsche bank game messageut the we gave earlier. we just had ing, deutsche bank numbers. a little bit of something else. andre going to shift gears talk about the 3-d world. this is bloomberg. planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my business. wifi pro from comcast business. public wifi for your customers. private wifi for your business. strong and secure. good for a door. and a network. comcast business. built for security. built for business. ♪ anna: welcome back. movement in the dollar. the dollar is weak or. down by .5%. on.06 is where we trade dollar-yen. 1.6 5 billion euros for the first quarter. 1.65 in the market. cents, 161 million euros so the first quarter revenue at 1.65. a couple of boosts. currency tailwind. sectorh stricter -- auto gains. infinium -- going to buy back 10 billion and danish krone of their own share. an upd

next up, it is the probe into deutsche boerse‘s chief executive over possible insider trading. the daily telegraph writes questions are being raised over the timing of the investigation of carsten kengeter, just weeks before the company wanted the go—ahead to merge with the london stock exchange. and francois fillon is on the front page of le figaro. the paper says that the former prime minister is determined to continue his fight in the french presidential campaign. that is despite an investigation into his financial affairs. the guardian reports on comments from the british defence secretary, michael fallon, warning that nato must now compete on the cyber battlefield, and do more to counter russian hacking. would you donate cash, jewellery and gold to bail out your government? the gulf news writes that citizens in mongolia are doing just that, to help pay off a near—$600 million debt. and camp out under the stars for a better night's sleep. an article on the front of the daily telegraph reports on a new study that suggests the great outdoors could be a solution for insomn

the dollarpside for from deutsche bank. sayingyou have the rba you cannot argue it should be this strong. thank you for the setup for the asian open. we do have something breaking live on the strike situation. the union in chile saying the talks with ehp have failed, saying the company retains an intransigent position. that is interesting given we were looking ahead of the talks to see whether the situation could be resolved. we have earnings after the local market close. we will be speaking with the c.e.o. that is something we will be raising with him, whether the strike is going to continue playing out for the big miner. compromise have spurred prices of the base metal -- copper prices have spurred prices of the base metal. the rally does not look like it will weaken anytime soon. dr. copper is in the house. >> we have investors calling for the return of dr. copper, nicknamed because it is seen as a global barometer of global economic health. citigroup sees the metal rallying towards $7,000. but look at the chart -- let's

deutsche burzer is completely surprised. do they have a plan b for how to go forward? would they try to go after another exchange provider? would they go it alone? >> well, probably yes. the big lan from the ceo is to make them big enough to compete with the likelies of the mercantile exchange or the hong kong stock exchange in asia. so that's actually the size he foresees for them. he's of course very much behind that merger. the driving force, he says that a operator in the new financial times, as he calls it, needs to be bigger than just the stand alone player. if that merger falls through, it's the third time they're trying to merge or take over each other. then we most likely see more action from deutsche in asia or elsewhere. >> and generalality shares have fallen following the bank's decision not to take over a formal bid for the insurer. saying it would not create value for its shareholders. so there are two deals that have fallen through very quickly over the weekend. kind of reminds me of last week when the heinz-k

and the tie up with deutsche deutsche boerse and lse is unlikely to be done. lse said it could not commit to the divestment. that is your bloomberg business flash. guy: thank you. the u.k. house of lords starts a detailed examination of the brexit legislation today. meanwhile, there is a report that theresa may's office is compared to talk about another -- independence referendum for scotland. we are here with rupert harrison. let's start with the house of lords. if the house of lords kicks it back, do you think the timeline for triggering article 50 is still valid? rupert: i do. the fact that the bill was able to go through the house of common totally's -- the house of unamended,ally usually gets a government a strong position. -- is an example of the bigger question is the government is largely unopposed domestically. the labour party, as we saw in the recent elections, was at its weakest in a long time. theresa may dominating the political scene. her biggest problems is what her european negotiating partners are willing to concede and how negotiations will

including reports the deutsche boersle deal could collapse. and slightly higher for the uk, germany, france fractionally. their experience is coveted. their leadership is instinctive. they're experts in things you haven't heard of - researchers of technologies that one day, you will. some call them the best of the best. some call them veterans. we call them our team. >>> welcome back to "world wide exchange." 11 straight record closes for the dow. that makes it sound like markets are soaring high. but for the week as a whole, the dow was up less than 1%. and the s&p up less than 1%. and that just gives you a little bit of pir spective. yes, they went high, but not soaring risk on trades that led them higher. as you can see this morning, pretty much flat in the futures market. the dow expected to open down just three points. bond proxies did well last week because treasury yields went lower. we flirted on the u.s. tenure. we're above that now, 2.33. and somewhere from the 2.5% we hit two weeks ago. and yields in particularly germany have been l

that means that deutsche borse is very powerful. there is also a certain degree of cynicism over that in the long—term. degree of cynicism over that in the long-term. you do it is better that they are part? —— they are a part. long-term. you do it is better that they are part? —— they are a partlj think basically most people ‘s fears are if the deutsche boerse work to be the dominant partner over a period of time, that the gacy paraglider. and if brexit goes through without being watered down, and it will come at london will still be the number one financial centre. in new york and other parts of the world 's, and this is one of the reasons why the two are going together. they views, in my opinion, a pathetic excuse, this italian thing. but i think the real reason that we are certain that if this merger is called off, i don't think this will be the end of it by any stretch of imagination. i think the london stock exchange could well well get together with someone like chicago. never understood that nasdaq and so on. i do

it seems like lse and deutsche boerse will not make it down the aisle. itjust shows how much regulatory controls are important when it comes to these major deals. this all feeds into the brexit issues. this is not actually directly to do with brexit but nevertheless it does show how important the regulatory voices can be in the debate as britain makes their way out of the european union. we tend to focus on the politics for obvious reasons but there are huge and conjugated rule books that need to be unwound. i spoke to the executive director of the bundesbank, and the central banks in europe will have an important role in how britain leads the european union. he was talking about the city and threats to the city and threats to the european union financial sectors. i kicked off by asking him what the risks were and he said they we re what the risks were and he said they were two—way, and there was a risk to employment in the united kingdom. there will be some job losses but that doesn't mean that london will lose its very eminent position as the financi

i want to hear about how deutsche telekom is forming. well and there is an unbelievable growth rate every quarter and, in germany, andave had this very solid we will have it. >> there is so much speculation interested if t-mobile will pare together. time, i amauction not allowed to talk to anybody in the industry. >> what about the regulatory environment? do you think they will go through more? >> across the globe, for the globally connected industries, sendoff and wee -- same standards. i want this harmonize in standardized. -- harmonized and standardized. i think the u.s. model is a good model for the world. >> what about the pushing back against some of this and the frustration. find theope, you will consumer prices and their is a huge competition. build are trying to networks, we are not allowed to do so. it is difficult. if we are allowed to congregate more, there would be a re-ignition of investments in the industry. >> talk about the dominance in markets and how they are performing, at the moment. >> at deutsche telekom, we want a

you are taking market share from the likes of deutsche bank. can europe have the type of economic growth that is good for you and everyone if you do not have robust financial institutions? ralph: i think that is probably the most important drag on european recovery, and if you think back to 2009 when secretary geithner imposed the stress test on our banks, and our banks raised over $400 billion of common equity in the following 12 months. in europe, none of that happened. they basically called in our business, extend and depend -- pretend. you extend the loans and pretend they will be repaid. they have been doing that for 6, 7, 8 years. unicredit just did a big rights offering. let's not forget also that in europe, the banks are a much bigger part of the financial system than they are here in the united states. he did not have as big an alternative financial system in europe. undercapitalized banks who are not really open for business is a drag. david: you mentioned tim geithner, if there were to be that kind of leadership in europe where would

deutsche boerse, i believe tried to buy the new york stock exchange, correct? liz: they sure did. >> how many deals ago is that? i almost forgot. these european regulators are doing the exact opposite of what the u.s. regulators are poised to do which is approve deals. liz: they approved dow and dupont. >> right. liz: charlie, right now, can you stay with us? >> right. liz: we'll blow out all the commercial breaks. hear's why. we have seven minutes to go before the closing bell rings, i'm not calling it we may have reverse what we had friday where we were down and we fought back to end in all-time record highs for both the s&p and the dow. right now we lost a good chunk of the gains that we had. the dow is up 15 points, the s&p up two. any gain, even a fraction of a point would mean we are absolutely going to see, 12th record in a row for the dow jones industrials. let me get to chaps on the floor. what is going on? why the slight pullback here? >> well, part of it has to do, the market like what president trump had to say early this morning but there hasn't be

it's also being reported this morning the $31 billion merger of the london stock exchange and deutsche boerse could collapse. it looks like the regulatory hurdles are too high ending the companies efforts to create a european mega—exchange. peter hahn is the henry grunfeld professor at the london institute of banking and finance. good morning. good morning. good to see you. let us start with the exchanges. are you surprised they will not come together eventually? no. it is an amazingly complex issue, especially with brexit. it was a contest in a certain way between frankfurt and london for dominance. london was going to get the overall holding company. that was always presented, first with germany and brexit, and the bigger issue. what they are relying on is something more complex than a merger problem, a set of activities and a merger that has to happen. the city of london and the whole brexit negotiations. as we mentioned, theresa may is likely to trigger article 50 in march, just a few days away, the month of march. this stops the process of the negotiation, the exit of the eu, an

yes, but the question is whether deutsche learnt or any of the other extreme parties can dislodge angela merkel. mother merkel. but she has to bear in mind the electorate when she responds to peter navarro and others. yes. but when they look towards angela merkel they want stability. they want certainty. there don't want extremes to the left or right. they want someone who will keep europe say. this is a fantastic story, that scientists are able to read people's minds. fantastic. people who have a certain syndrome which means they can't communicate, there could be a solution. so they say. i'm wondering whether this story from the daily telegraph has been a little bit over egged. it is non—invasive technology and they say it can interpret a nswe rs and they say it can interpret a nswers to and they say it can interpret answers to questions you can see here how it works. by detecting changes of blood oxygen levels in the brain and people can respond yes 01’ no. the brain and people can respond yes or no. it is binary at the moment. this is useful for people who can't blink their eyes,

deutsche bank cut its 2016 bonus pool by 80% according to reports . banksa quarter of the 100,000 staff will be affected, with some workers being offered a long-term incentive as a consolation. deutsche bank told employees that bonuses would be reduced amid low interest rates and rising legal expenses. the independent french president macron has emmanuel won. the is seen challenging prime llon for a place in the second round, with marine le pen expected to win the first thought, however seen losing in the second round. hong kong's housing market hitting new highs. says existingndex home prices rose to a record this month. policymakers have impose cost curbs, but that has not dampened demand come with two chinese companies paying $2.2 billion for residential land by the harbor. hong kong housing has a hot topic in the election of a new chief executive next month. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. i am juliette saly. thanks. here is a story for a china ready to al

. >> i think that was pretty similar to deutsche bank. both of them focused on making sure the capital position was strong. where they're better than deutsche bank and why shares may be rallying significantly is that they did take part in that q4 bounce in investment banking that the u.s. banks had done, which deutsche bank missed out on. which was worrying for market share. despite that headline miss, q4 is strong. and we heard from tidjane, outlook for q1 continuing strongly. that's good. >> do you think it shows people are bullish on these european banks that are dealing with issues as we just saw with this earnings report from credit suisse, we saw a similar story out of commerzbank. >> commerzbank turned around and was negative by the end of the trade. overall -- credit suisse is performing well. deutsche bank didn't, commerzbank didn't, i did not dive into the numbers in detail, but this is off the q4 investment banking interests. >> tidjane thiam, the first interview he did as head of credit suisse was with us on "worldwide exchang

germany's biggest lender deutsche bank has posted a loss for 2016 of $1.5bn. it's an improvement from the year before but reflects the high cost of legal cases and fines the bank has incurred including the $7.2bn penalty it paid in the us over mis—selling linked to the 2008 financial crisis. the bank has more money set aside for such costs and has also recdued it's operating costs. the bank's boss said it showed resilience in a particularly tough year. look at this, this is a story up your alley. it is about airports. heathrow‘s third runway will mean more domestic airport legs, but when? 2030 ? more domestic airport legs, but when? 2030 7 it more domestic airport legs, but when? 2030? it will take forever! that is more on heathrow expanded sometime, not soon. they have been hammered. and profit outlook, the ghostbusters movie didn't do it for sony, there was a billion—dollar write down. but is a problem for them. 0k. them. ok. i love this story. a chinese car company has announced a deal with a mexican car plant to build up to 10,000 suvs in the country

deutsche borse appears to be injeopardy. the lsc says that a deal is unlikely to be approved by the european commission unless it sells its 6% schache in the nts trading platform. this would be the third failed attempt at combining the exchanges. and warren buffett has backed american businesses to continue to create what he calls mind—boggling wealth. warren buffett‘s comments come after a 15% rise in fourth—quarter profit to $6.3 billion for his firm, which owns shares in dozens of governors, including apple, cut times, coca—cola, and the four biggest us allies. on friday, japan launched premium friday, eight campaign on the very last friday of every month. some very lucky employees get to leave early and receive cash to spend. it is aimed to improve the worklife balance in a country that is quite infamous for extreme overtime. but there are more ways to reducing workplace stress than just cutting the hours once a month. if businesses now —— businesses are now increased lleyton into corporate world is progress.

shares for both the lse and deutsche borse fell quite a bit on monday and it is speculation. china daily is looking at the visit by china's top diplomat to the us. they say that it could pave the way through meeting between the presidents of the two global superpowers. trade and security are highlighted as issues where they could be differences. the times reports that an outsourcing company in the uk may implement an employee —— appointan in the uk may implement an employee —— appoint an employee representative to its board. this follows theresa may's call for businesses to have employee directors. and finally, fancy a trip around the moon? next year, in 2018, two private citizens are going to go ona two private citizens are going to go on a spacex mission around this incredible object, which actually, we have not been two to 45 years. cani we have not been two to 45 years. can ijust we have not been two to 45 years. can i just checked, we have not been two to 45 years. can ijust checked, it is not you? you're not one of two people? no, but i have a good find that i w

side, the trump effect has been positive for deutsche bank in january and february. the regulation side of the trump era? >> there is always some noise now where people are saying we are getting to deregulation. i would not expect that. depending on stuff for stocks to swing even to more regulation. has madehe president some comments he thinks the regulation got to a point where it is governing the industry in a very good way, and maybe one should not at this stage go much further. debateding, the entire around what the market calls four. we would hope there would be a resolution of that outcome fairly soon. joe: up next, amazon's fourth-quarter earnings are imminent. we will look at some of the key numbers you need to know. this is bloomberg. ♪ oliver: the prices for tail risk options are rising sharply. a relay to the conversation we had earlier, i do not like this index. this of people interpret as a way to look for a black swan, but it is antithetical to the idea of a black swan. so i don't like it. a big swing down or off, here is what is happening and here is

joining us is alan ruskin from deutsche bank. we'll talk about how currencies impact the broader markets and the politics. such a sharp rally aftd election for the dollar. why have we reversed course? >> i think the trump rally in all the asset markets was a story about fiscal stimulus, the promise of fiscal stimulus. and there still is that promise. you know, let's see when that comes through. the deal making and the legislative piece will come through with quite a lag. you have social policy, foreign policy, those things are not helpful and international markets where european bond yields are backing up. that's part of the euro/dollar story. >> so it's not a belief that people are now changing their opinion as to whether donald trump can deliver, it's just that he will deliver later, and that these things take time. >> yeah. it was maybe a bit of overo overoptimism in terms of the timetable, particularly when you introduce things like the board adjusted tax. there's a huge amount of complexity and the timetable will be far out

deutsche bank. the biggest one-day drop since september. deutsche bank

reporter: deutsche bank has been wrapped by u.k. authorities. they are accused of facilitating $10 billion of money laundering out of russia. blaming systems and controls, saying that deutsche bank -- the fca imposed its largest ever fine for money laundering violations with over 190 million euros. some say the fine just isn't big enough. >> let's not kid ourselves. individuals haven't been held to account, and that is critical in these cases. reporter: they are getting a big slice of the action. reporter: equipped with the biggest imax screen and revenues of $6 million in 2016. a veritable cinema boom is unfolding in china. there are more screens now than in the u.s. china is the world's most populous country. they prefer the big screen over computer. >> i can't feel the reality when i watch movies on the computer. it feels like the pictures are pasted onto the screen. in the cinema, i can enjoy the 3-d or 4-d. and i feel like the pictures are surrounding me. a city of 22 million people added about 70 new cinemas in 2015 and another 100 in 2016

. >> to another big german company, is deutsche bank a sinking ship? the lender has been riddled with scandals racking up a loss for 2016. the banks executives saying it is doubt with the woes. the bank is not out of the woods just yet. >> john cryan, shareholders do not share his sentiments. they want action taken. >> i won't beat around the bush. there were phases in 2016 where we were under considerable pressure. >> as is been reflected on the stock exchange. investors began to fail on the flagship lender going bankrupt. the share price has recovered somewhat. partly because the bank has resolved its most serious litigation cases relating to mortgage securities and money laundering claims in russia. the real challenges have yet to come. 150 years after its birth deutsche bank must ask itself what branch of the business it belongs to. the biggest question mark is over its investment arm. there is also its subsidiary. they announced plans to hive off the unit. they have not solved or floated the unit. >> german prosecutors are investigating the head o

the other thing is i'm looking at is deutsche bank. deutsche bank. because i believe that the loan or extension of credit did come out of deutsche bank for the hotel i want to know if that was the russian division of the deutsche bank and want to know whether or not he's in conflict because they're you shallunder investigation. >> all valid questions and we're asking them i can assure you, but let me pivot to questions of april ryan. she stands up and asks president trump and concerns and inner cities and here is what he said. >> you look at the numbers in chicago, >> when you sayaka mo the inner agenda as well -- >> am i going to include who? >> the congressal black caucus? >> i would. do you want to set up the meeting? >> no, no, no. >> are they friends of yours? set up the meeting. >> i know some of them. >> let's go. set up a meeting. i'd love to meet with the black caucus, the congressional black caucus. i think it's great. i actually thought i had a meeting with congressman cummings and he was all excited and then he said oh, i can't move. it m

it really quickly, deutsche bank today, shares as much as 7% down. and they are concerned about the company finances. net loss was also bigger than estimated. back to the bank of england, during the news conference today, the governor mark carney discussing the down -- delicate balancing act they are facing right now. >> the objective remains inflation control. that means any overshoot of inflation above target can only be temporary in nature and a limited in scope. as such, they have been clear that the tolerance for above target inflation is limited. we go outside the boe. if you look at the market reaction, the take away seems to be investors thinking there will be no near-term move in interest-rate and the boe staying neutral. >> absolutely. i am glad that you brought that up, how many ways can you say neutral without saying neutral? mark carney said that the next move in rates could be up or down, and that is something in line with what the voa -- boe was saying in november. remainshe key rate unchanged. the growth forecast for 2017 was upgraded

it's something that deutsche bank has pointed to. there is credibility. you have seen them losing revenue share and headline revenue share. we have pet businesses that was a big impact. that makes sense. we're going to see that it rests week this week and they have these headline issues. three, where has the strength been? it has been helpful to u.s. banks. jonathan: froggy is talking to the parliament right now. he said the road back is very worrisome. thank you very much. you are sticking with us. coming up at the top of the arc, bloomberg markets with mark barton and vonnie quinn. we will be joined by the bloomberg columnist. will european banks suffer if dodd frank is rollback in the u.s.? is the chairman of the frigidity group. he is coming in as chairman of the euro class. to try what he is set up to lure london businesses to paris. we're looking forward to talking to him about how successful that strategy is doing. anti-putin political activist join us. matt winkler has written a great these, investors are not so much. we have a busy show. jonathan

apple, facebook, sony, deutsche bank just a few of the week's , biggest earnings reports. next, more top business headlines. a new leader in global car sales. it is a brand that just suffered through the worst year ever. >> the key reason here is definitely china. alix: this is bloomberg. ♪ alix: this is "bloomberg best." i am alix steel. let's continue our global tour of the week's top stories. in washington, d.c., president trump announced his first supreme court nominee. >> last night during primetime president trump introduced the nation to his new supreme court nominee. that is federal court of appeals judge neil gorsuch from colorado. tell us what we should know about judge gorsuch? going to be an awful lot like the man who he is going to succeed if confirmed by the senate. he is very conservative and believes in interpreting the constitution in accordance with its original word and the intent of the founders. >> as you say, he is parallel to the man he would be replacing, that is justice scalia, but there is one in respect to our audience that might be important.

it would take a ratio much higher than that in order to entice deutsch telecom to say yes. the only thing that's expected is that massa wants to buy it. the only thing we're waiting on is to see if deutsch telecom can find a deal that's acceptable to them and their shareholders. >> right. deutsch telecom being t-mobile parent. you're arguing against this from a valuation point of view. what about the anti-competitive aspect of it as well? >> that's hurdle number two and certainly something that deutsch telecom has to consider even if softbank can come up with some type of currency that d.t. wants to accept. they have to say, okay, are we willing to go through a lengthy process for approval where maybe the fcc is on board but you still have to go through doj where there are some mathematical evaluations that are done in a market after the fcc stopped them t-mobile hats clearly changed the market. you have some companies offering -- companies like verizon you thought would never offer unlimited are offering unlimited. hhi tests that would make it, i think, difficult. i'm not

. , apple, facebook, sony, deutsche bank, just a few of the week's biggest earnings reports. next, more top business headlines. a new leader in global car sales. it is a brand that just suffered through the worst year ever. >> the key reason here is definitely china. alix: this is bloomberg. ♪ alix: this is "bloomberg best." i am alix steel. let's continue our global tour of the week's top stories. in washington, d.c., president trump announced his first supreme court nominee. >> last night during primetime president trump introduced the nation to his new supreme court nominee. that is federal court of appeals judge neil gorsuch from colorado. tell us what we should know about judge gorsuch. >> well, he is going to be an awful lot like the man who he is going to succeed if confirmed by the senate. he is very conservative and believes in interpreting the constitution in accordance with its original word and the intent of the founders. >> as you say, he is parallel to the man he would be replacing, that is justice scalia, but there is one in respect to our audience that might

apple, facebook, sony, deutsche bank, just a few of the week's biggest earnings reports. next, more top business headlines. a new leader in global car sales. it is a brand that just suffered through the worst year ever. >> the key reason here is definitely china. alix: this is bloomberg. ♪ alix: this is "bloomberg best." i am alix steel. let's continue our global tour of the week's top stories. in washington, d.c., president trump announced his first supreme court nominee. >> last night during primetime , president trump introduced the nation to his new supreme court nominee. that is federal court of appeals judge neil gorsuch from colorado. tell us what we should know about judge gorsuch? >> well, he is going to be an awful lot like the man who he is going to succeed if confirmed by the senate. justice scalia. he is very conservative and believes in interpreting the constitution in accordance with its original word and the intent of the founders. >> as you say, he is parallel to the man he would be replacing, that is justice scalia, but there is one in respect to our -

the whole tie—up of lsc and deutsche bank never sat comfortably with either side of the channel. i think ever since brexit the whole concept of having the merged entity based and headquartered in london was something the european commission and regulators were not very happy about. the london market traded higher, but shares in insurance companies slid following that change on how personal injury claims are calculated. the change, made by the ministry ofjustice, is expected to increase pay—outs to accident victims and affect insurance companies' profits. direct line shares fell 7.5% while admiral group dropped 3%. that's it from me, we will be back with more than an hour's time. back to the oscars which were of course dominated by that massive mix up —— the musical "la la land" was mistakenly named as best picture. but minutes later the honour was given to moonlight. here's some consolation for the hosts — because last night's oscars blunder isn't the first awards show mix—up — lets look at some more excruciating moments. miss universe 2015 is... colombia. ok folks, i

itswhile, deutsche bank cut bonus ruled by about 24%. about a quarter of the staff will be affected, with some key workers offered an incentive. they announced last month that the bonuses would be reduced. analysts think that indonesian palm oil stockpiles probably declined about 8% in january. that is to a record low. the median estimate to was -- , which has never happened in history. palm oil search 25% -- surged 25% last year. trump's exitdonald from the transpacific partnership has left countries wondering what will happen next. negotiatorp trade told bloomberg he believes a pacific alliance could be the answer. chilewill be meeting in the next march 14. we're trying to put at the center, we are meeting with tpp countries. partnersis to convince to welcome an alliance between chile and the pacific. >> do you see china as a potential major new trading partner for mexico? >> at this point in time, we have not had any new discussions with china. we have widening and decreasing -- increasing our trade relationship. has been pena nieto r

so in that category we have deutsche bank and barclays. we like autos, haveand we valeo michelin in there. we like telecoms, telefonica deutch. that's the feel for it. insurances as well. aviva, we look to add to those sectors and technology. >> so quite broad. >> we have 20-odd names in that best ideas name. >>> not so with nestle? >> no. one of the things we are -- you'll note from previous appearances, we follow the fair value trends. it's clear in the stocks i referred to are beneficiaries of rising value trends. post. >> narratonovember of last year these value trends have changed. the laggards from last year have become relatively expensive from the lows. so news today means you don't want to be in those sectors. >> you have a green star on intesa sanpaolo. >> banks are screening well for us. they had a period of consolidation recently having rallied at the start of the year. that was enough to see the value trends catch up. intesa, yes. italian banks are something for the specialists. we run a process, a model. and therefore it will

what will occur in deutsche bank when they dilute shares? what will occur to deutsche bank when they bring in this needed cash? otmar: i would like to comment on deutsche bank and unicredit. what is true on the one hand, europe has done relatively a bad job in comparison to the u.s. when they immediately after the financial crisis in 2008, capitalized banks. ought to be done in europe. by the zero interest rate policy of the ecb. taking profit along the yield curve when long-term interest rates are suppressed by policy actions of the central bank will -- more time or even francine: is the imf being unreasonable with its greece demands? in what it is asking of greece? otmar: i think this is a delicate issue and relatively disturbing. many different views on that. the big question is, can greece deliver on a primary surplus of 3.5% as demanded over so many years. paper, this is possible. but politically, it is almost not feasible to expect that. but the sustainability is an issue which would come only after many years because for the time bein

another stock we are watching is deutsche bank. a day after reporting results, deutsche bank's back in does not light. it will cut 70% of staff in its equities unit. joining us now is bloombergs michael moore from london. we are hearing thrilled the morning -- was this a surprise? >> the scale of it on the equity side was a bit of a surprise. we knew that deutsche bank was going to be cutting jobs. we reported that last month. biggert you saw was a than expected drop in equities trading in the fourth quarter and then saying it has not come back so much in january. on the debt side, rings bounce to back for them so far in 2017. the story of regarding earnings is they are spending so much capital to raise capital but it is coming at the expense of profitability. if they cut their talent, how do they increase profitability? >> that is a big thing analysts are concerned about. the balance between building up capital and generating revenue growth. the fear is they are trying to cut their way to profitability. at a certain point, you nee

. >> then why does -- deutsche bank, there's a lot of firms. i've got jpmorgan, deutsche bank. deutsche bank says we should be concerned that maybe perhaps that you can't do bigger dividend increases, which you know i love. we talk about it on the show all the type. >> we gave $30 billion back to investors last year. >> okay. so you're disagreeing point black. >> forecast to be $20 billion plus this year. >> so what do you say to an analyst that says the cash situation could become serious? is that analyst wrong? >> just wrong. jim, $30 billion in buyback and dividends in 2016. that's pretty strong. >> then why aren't people paying more for the stock? why are people still saying you got to take out more costs. >> 1.31, 1.49. the consensus next year is probably between 1.60 and 1.65. we've laid out a plan to do aggressive cost takeout. we've got strong organic growth. between the buyback and acquisitions, good boost to earnings per share. our eps last year was above the xli. >> but if we look at the total shareholder return, jeff, from when you started, with dividends reinvested

we are back with deutsche bank's chief security global strategist. on the s&p 500 to in the year at 2600. how will we get there? what will drive it? >> most of it is earnings growth, number one. there are five reasons to be constructive equities. v-shaped recovery in the s&p 500. growth has been taking place since q1, minus seven percent, -3%, plus 3%, plus 7%, and we should get up to plus 12 or plus 3%. argue two bank, i would we don't see equities on an absolute basis as particularly expensive. is highermultiple than the historical average, but if you look at the multiple in terms of historical drivers, it is in line with where it should be. the multiple does fluctuate over the cycle. the third point i would make is that equities on a relative basis are very, very cheap, so common measure is the equity risk premium. if you think where the equity risk premium is today and compare it to where the equity risk premium has been prior to the cycle. the last time we were at levels like this was back in the 1950's, so equities are very, very cheap. number

news stays kevin deutsch talks about opiates and national drug rings. then on booktv's afterwards program this evening at 10:00 p.m., republican strategist roger stone discusses the 2016 presidential election and donald trump's victory. and we wrap up the sunday prime time lineup at 11 with thompson, talking about his book culture is weapon, the arctic influence in everyday life. first up this evening, here is Ã- discussing eyes on the prize. >>

this is bloomberg. ♪ ♪ scarlet: a very unhappy trading floor at deutsche bank. cutting bonuses by 80%. the previous year keep in mind the cut is bonus pool by 17%. this chart is thanks to our producer who created a custom index. what the bars do is track the conversation of global markets and investment bank business as toercent of -- it's fallen -- he has been cutting pay, suspending as is. making people concerned. he says is a short-term problem. 2017 the bank hopes to resume normal service for fiscal 2017 when it comes to bonuses. we will see if people stick around for that. deutsche bank needs to recover some of the legal expenses it has been shelling out, and it has an massive. billion in fines and legal fees. what a lot of people wanted to see yours ago, a culture that was not as much based on the massive bonus at the end. when you see that as a percentage of total cop, you wonder -- scarlet: four bankers it means times to go. joe: here is one of my favorite charts that might be of interest today. it is a chart, the blue line is share of sotheby's, the auc

coming up, we hear from the deutsche bundesbank president. this is bloomberg. ♪ francine: this is bloomberg surveillance. i am francine lacqua in london. tom keene in new york. barclay at the highest level in more than a year. earlier on, anna edwards spoke to the ceo of barclays. i am happy with our performance. fixed income credit areas did well across 2016. you will notice if you look at credit and fixed income trading we have less beta to the market, less long-term positions. when credit markets rallied strongly we will slightly underperform some that have more focused on that business. we are more of an agency profile. when credit markets trade off like in the first quarter of u.s.we did well versus competitors. much like how the investment bank performed in 2016, taking underwriting, debt fees, we were up year over year. one of the few investment banks that accomplished that. we gained market share in 2016 and we liked how we performed in the last quarter. >> aggressively shrinking or repositioning the investment banking part of barcl

deutsche bank bought advertisements over the weekend to apologize for the errors. the cases cost about 5 million euros. they went on to blame the problems on a few employees. bidder for takata. there interest in purchasing parts, if the company files for bankruptcy protection and they are seeking a buyer after a safety recall. that is your bloomberg business flash. >> thank you. expansive monetary policy would boost monetary service. >> mario draghi is going to defend the case in european parliament. so, you have the latest thoughts and theary policy expansion in the eurozone. the rightnside, is line being walked? yes.r the moment, periphery is closer to germany and, if it had not happened, the spreads would not be as narrow. it isowed the spread and relatively modest. month,look at the past there is a widening of the price , for think it is early and it isu mentioned difficult to walk away and the conditions are not there. >> people talk about pricing risk and it is italy and the element ofe what are the consequences when you look at european risk. a carries the b

. >> when we come back, deutsche bank chief joe lavorgna joins us. stay tuned, you're watching "worldwide exchange." good morning. if you're just joining us, the fed wraps up a two-day policy meeting today. this afternoon we'll get an announcement at 2:00 p.m. eastern time. ahead of that, futures are in positive territory. the dow looks set to rebound from a string of losses. dow futures up 39. s&p up six. nasdaq up 25. joining us is joe lavorgna have deutsche bank and a cnbc contributor. what tone do you think the federal reserve will strike in its statement today, given everything we've seen, the rising stock market, but yet to materialize into better economic data. >> the tone will be better reflecting what you said, that the softer economic data, the sentiment surveys have improved. but the harder data, the retail sales, jobs, et cetera, those things have not yet moved. it will be -- as the cliche goes, cautious optimism. >> what do you expect in terms of whether the fed can get investors to expect what they have been suggesting so far? by that,

. >> deutsche bank. how many bad things can they throw deutsche bank? i'm waiting for the rights offer. where is it? >> yep. canary in the coal mine, jim. >> tony dwyer is the chief market strategist. he says a correction is coming and if it happens you should buy the dip. tony, you were on with us a week or so again, talked about the 4% to 7% correction but why do you think it's going to happen? maybe you're looking at the wrong thing. >> the conversation on the desk -- i really love the way that jim says bank -- sitting here in the room it's awesome. this whole thing is not about trump. i totally agree with what joe, josh and the group are saying. this rally, i don't think, is about trump. we upgraded the market prior to the election because the global economy was accelerating. germany factory orders, 2.5 year high. the monetary stimulus globally is finally working its way through the system, especially the corporate -- ecb purchases of corporate bonds. what a big deal that was by injecting money into the system that's not bank driven. the global econ