central bank. the lira falls, equity sells off. david: welcome to "bloomberg this monday, july 8. a little something going on in france. it was a great game. aix: their second win in row? david: that's right. alix: even president trump took to twitter to congratulate the team, versus a couple days ago, when one of the women said we are not going to the white house, and he said why don't you win first. now apparently very proud. david: it was a great game. the u.s. was really taking it to the netherland for the first half, but they kept it up in the second half. alix: go team usa. in the markets, you have powell coming out in the next couple of days. drive up market reaction for this week. euro-dollar lower by 1/10 of 1%. the dollar getting a little bit of steam in the last 20 minutes of trading. crude also quiet. it is a quiet market with idiosyncratic events turkey, like deutsche bank. david: what a nice word to use. alix: right? david: idiosyncratic. time now for the morning brief. today, british

can you bank hemp? >> currently, no, until the regulatory guidance comes out. >> none of the regulatory's have come out with any guidance on hemp? >> no, sir. >> we are serving the hemp industry. >> quite frankly, they tell us that the regulation clarity is we passede out and celeste farm bill and took it off the schedule. i've just got one question because i'm just curious. how much do you pay out for year insecurity? -- per year in security? >> we used to have several hundred thousand dollars per year. largely for internal security, we have probably 20 good paying jobs. >> and they are secure? >> up until recently, yes. recently. >> this is an issue that if congress would do anything about it, we should do it. by the way, your testimony is spot on. fall in the same camp as sen. gardner:'s on this, that the people speak and we are representatives of the people and we should move forward, not that i'm any big supporter of it, because i'm not. nonetheless, we are representatives of the people. >> thank y

transformation of germany's biggest lender in decades that's what a bank c.e.o. . calls the radical cuts he's performing on the ailing erstwhile flagship of germany's financial industry saving is closing down all of its loss making equities trading business will shrink its bond and rates trading operations significantly 18000 staff will lose their jobs especially london and new york offices will be decimated stuff across asia have also been seen leaving their buildings for good. it was the investment bankers that were the 1st to go whole teams of them were fired on monday across asia deutsche bank is turning its back on the international equities business and focusing its attention back home. on that leg on the plant we've been planning for quite some time that after achieving stabilisation last year cleaning up the balance sheet and in costs under control we now want to take the next step to align the bank with its strengths and that is what we're pleased to announce to the company stumbled during the world financial crisis and its share price has yet to recover.

anna: deutsche bank is a development that masses for which a bank investors. your team has been working at does it work out for investment classes by the big cuts we're seeing at deutsche bank? >> absolutely. in terms of asset classes, something that affects all asset classes is liquidity. torture is still a big player in the banking sector. there will be implications for liquidity and asset classes depending on their positions and all that. off the top of my head, torture is a big player in fx markets. this could be action deutsche is -- deutsche is a big player in fx markets. volatility is so low. anna: that would make a trained -- a change. christine, thank you so much. this brings to a close this hour of programming. that's it for the european open. surveillance is up next. equity markets fairly flat. u.s. futures point down, london getting the best of the gains. oil and gas are looking a bit more positive. those sectors the best getting sectors. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't l

another banking irregularity news india's punjab national bank is claiming it was the victim of fraud after their $556000000.00 loan to bush on power and still one 3rd shares in the partially owned state owned by 11 percent on monday after the weekend announcement that the bank had filed fraud claims with police and regulators the indian central bank says they discovered that nearly all of their half $1000000000.00 loan to shawn was diverted after taking a closer closer look at the bar was books in the wake of the seans bankruptcy p n b has been under scrutiny for lax in london since seeming to lose nearly $2000000000.00 the bank lent to the companies of the fugitive financier and former celebrity jeweler miramonte and mr modi's uncle. of bank begins its a radical overhaul on monday as it exits its investment banking and trading operations and lets go 20 percent of its workforce the struggling lender is splitting off $74000000000.00 euros of its assets in an attempt to focus and invest its core units and retail banking and european corporate clients the $8300000000.00 restructuring pl

banks. so for example, you wouldn't get a free account, which you would get with other lenders so they're just like -- they are on -- as i would say perhaps in the luxury segment of the retail banking and whether they can maintain that spot, this is the key question here. back to you. >> excellent we look forward to see how the story unfolds over the next couple months. certainly investors are cheering it on today. >>> with that, let's look at how european markets are fairing more broadly this morning. julianna >> it's been a fairly mixed morning so far for european market as you can see beside me here, the dax has been fluctuating between positive and negative territory. otherwise markets are trying to edge higher. the big piece of data investors globally are digesting is the nonpharm payroll out, 224,000 jobs added in the month of june. the debate has now become is this enough to prevent the fed from cutting rates in july the market had been widely expecting that to come through and the de

bank are declining words u.s. banks are becoming more profitable and part of that is the fact of the way they're structured so for example in the united states 17 percent of investment needs are through capital markets whereas in europe only 30 percent are done through capital markets so what that says is the united states banking system is healthier because it derives the majority of its income basically from investment related activities rather than lending itself which means a show less assets on their books and they're less sensitive to any sort of interest rate or any other situation happening in the economy so you know again i really believe that with deutsche bank it's really too little too late with and as you know with deutsche bank since 2016 they've been suffering tremendous regulatory scrutiny in 2016 they paid. 40 while they paid 2012 point 6 mil 1000000000. all are fine along with credit suisse for basically selling toxic debt if you move forward to 2017 the federal reserve fund them $41000000000.00

which a bank listed in new york in 2001 after decades acquiring european and american banks it was now the world's 4th largest asset manager. steered it during the 2004 to 2008 u.s. housing credit bubble a senate investigation said later that day which a bank had helped fuel the global financial crisis by continuing to sell subprime mortgage packages even as markets collapsed in 2008 the bank lost 3900000000 euros its 1st loss in 50 years come on got it through the financial crisis without needing a government bailout but his reign was marred by several scandals before he finally resigned in 2012. he was replaced by joint c o's yogen fiction and i'm sure jane 3 years later jain was forced out after u.s. and u.k. regulators found the bank had been rigging the key libel interest rate deutsche bank was fined more than 2000000000 euros for the scam and fiction went in 2016. british banker john cryan took over but left in 2018 after failing to hold the slump deutsche bank shares have devalued while he was at the helm finally after a mooted merger with germany's number 2 comets bank failed t

deutsche bank's execution risk. meetssink as wall street skepticism and doubt about its profitability goals. welcome to "bloomberg daybreak" on this tuesday, july 9. david westin is off. the white house, things aren't going as smoothly as downing street in london. --sident trump firing back the dinner included the memos,nt and -- in the they called the president inept. the president accusing prime minister theresa may of making a mess of brexit. he said the u.k. will have a new prime minister soon, good news. in the markets, we are seeing risk off attitude. you want to buy the dollar. equity futures down .4%. semis could get particularly hard. the chip guys have three months of inventory stacked up. yields going nowhere in the u.s. oil a bit firmer. you have some iran conflict there, the military playing hardball with bp. altogether, it is a by dollar story, sell u.s. equities -- buy dollar story, sell u.s. equities. we are joined by lisa abramowicz and michael mckee. 72 hours, has a busy giving a speech to open thi

banks? we will find out next week as banks report their earnings. grasecktanley's betsy is here to report. "elcome to "bloomberg daybreak 12, hereriday, june with lisa abramowicz. alix steel is out today. we see now tropical storm heading towards louisiana. not pictures we want to see. david: and it can really affect oil prices. a lot of facilities are closing, offshore platforms, and it oath course will reflect refineries. alix: we see people taking -- taking boatspeople down streets. meanwhile, we have near record highs on u.s. equities, trying to push higher to get back to those highs for the nasdaq. euro gaining just a touch versus the dollar. 30 year yields unchanged after yesterday's really violent session, a real increase after a bad option. crude prices climbing a bit on the storm and geopolitical tension. david: it is time now for the mooring brief. eastern,his morning ford and volkswagen will announce details on their big on electric and on most vehicles. -- on00 we get u.s. ppi autonomous vehicles. at 11:00 we get u.s. ppi data. angela me

is the down on the wall use of cash, dividends, share buybacks, bank to bank to bank. this is bloomberg. ♪ viviana: this is bloomberg surveillance. let's get the bloomberg business flash. in europe, car sales resume their downward spiral. 2.9%, thehey fell worst monthly decline since december. at the years halfway mark, europe is facing the second annual sales drop. are cities been spared a profit .arning bmw reported a quarterly loss. it is a rare setback for ericsson's turnaround efforts. the swedish network equipment were down estimates for the first time in six quarters. networks would5g weigh on profits. elon musk says the startup narrow link is ready to begin brain surgery. they want to implant paralyzed patients with electrodes. it will elect them work computers with their minds. the process has only been tested on rats. to start trials on humans, they need u.s. government approval. >> a special guest, the goldman sachs asset management. they bring years of work and equity and derivatives with that position. i want to talk about the arch issue out there. it is

after decades of trying to become a titan of wall street and build a global investment bank bank is looking to the home market the struggling lender has announced a major restructuring plan that would involve building on its traditional strengths . dorie share will slash around a 5th of its staff worldwide over 3 years it's scaling back its investment banking operations and will shift 74000000000 euros of risky assets into a new bad bank because its no closure also says it will cut some of its fixed income operations an area traditionally regarded as one of its strengths. i'm sure that laying on the plant we've been planning for quite some time that after achieving stabilisation last year cleaning up the balance sheet i mean costs under control we now want to take the next step maps to align the bank with its strengths and that is what we are pleased to announce today. bank expected $2800000000.00 euro net loss in the 2nd quarter as a result of restructuring charges and a loss for the full year it's frank 1st base torture banks overhaul in 3 decades and comes after the collapse of a planned

banking? do they leave deutsche bank alone or by off pieces of it? fabrizio: at will depend on how the plan pans out. if it is successful, deutsche bank could become the largest commercial bank in germany and stay that for a while. out, there't work are more fundamental issues which have to be asked. the banking union has to be completed from a regulative point of view, but that will not be enough. important to do all the steps that are necessary, but more important for the european banking unit is consolidation. thank you so much. kasman --t our, bruce hour, bruce kasman and chris grisanti. ♪ ♪ tom: this morning, powell testifies with a vengeance. markets adjust. the federal reserve to the summer of 2020. can you buy in july and stay? resistance, chris grisanti will translate the markets for us. speaker pelosi, the debt ceiling , and the ever-growing deficit. "his is bloomberg "surveillance live from our headquarters in new york. i am tom keene, francine lacqua in london. what well the governor speak about? francine: the stability report, open-e

which a bank listed in new york in 2001 after decades acquiring european and american banks it was now the world's 4th largest asset manager. your sifaka man steered it during the 2004 to 2008 u.s. housing credit bubble a senate investigation said later that deutsche bank had helped fuel the global financial crisis by continuing to sell subprime mortgage packages even as markets collapsed in 2008 the bank lost 3900000000 euros its 1st loss in 50 years ah come on got it through the financial crisis without needing a government bailout but his reign was marred by several scandals before he finally resigned in 2012. he was replaced by joint c o o's your good fortune and i'm sure jane 3 years later jain was forced out after u.s. and u.k. regulators found the bank had been rigging the key libel or interest rate deutsche bank was fined more than 2000000000 euros for the scam and fiction went in 2016. british banker john cryan took over but left in 2018 after failing to hold the slump deutsche bank shares half their value while he was at the helm finally after a mooted merger with germany's n

bank are declining words u.s. banks are becoming more profitable and part of that is the fact of the way they're structured so for example in the united states 70 percent of investment needs are done through capital markets whereas in europe only 30 percent are done through capital markets so what that says is the united states banking system is healthier because it derives the majority of its income basically from investment related activities rather than lending itself which means a show less assets on their books and they're less sensitive to any sort of interest rate or any other situation happening in the economy so you know again i really believe that with deutsche bank it's really too little too late with and as you know with deutsche bank since 2016 they've been suffering tremendous regulatory scrutiny in 2016 they paid 40 well they paid 1212.6 mil 1000000000. all are fine along with credit suisse for basically selling toxic debt if you move forward to 2017 the federal reserve fund them $41000000000.00 for

of the banking system and provide some money regulates the banks of the banks or members of that institution like that's not going to that structure has to go away you cannot have the financial system be members of a central bank that provides them cover when they screw up that entire system has to be demolished but also the debt that currently exists because it does that that these central banks throughout the world have purchased house to be repurposed or redistributed back into the economy from which it came and actually redistributed repurposed into infrastructure building into social programs and to weigh in. which we solidify the economic strife is individual so it has to be turned around some of it has to be forgiven and central banks cannot be structures that ultimately are the go to for money supply artificially to the financial system in the meantime what people can do just in their day to day lives in terms of their own personal fix is not have money with these private banking institutions that have gone all of this free money from the fed and other central banks and are giving in

radical surgery for deutsche bank. a massive revamp of the german bank, closing its equity business, cutting a fifth of its workforce and scrapping its dividend. sees theays he still need for a lot of things to go right. powell in the line of fire. president trump keeps the pressure on the federal reserve to cut rates as markets price out more rate cuts this year. focus turns to powell's testimony before the house and senate this week. insight on how hedge funds are hedging geopolitical risk, that is later in the hour when rob christian. we are halfway into the monday trading session. taylor riggs is with us. seems to be tech shares. taylor: leading the losses off, the s&p 100, down to the lows of the session. i want to throw the 10-year up here as well. the largest move in terms of a one-day loss. we are not seeing any more moves off of that, hovering right in at about 2.03. if you come into my terminal, the story continues to be a low volume. volume in the s&p 500 still off 20%. consumer staples, communication seeing

bank earnings. the rationale for owning utilities is going to come down quite substantially. when you think about the 30 year history of bank stocks, that earnings story is going through a structural change here going forward. you were just talking about the goldman earnings discovery. think about some of the other more classically commercial banks. david: is there at least one bank that might benefit from lower interest rates, and that is wells fargo because of mortgages? if rates come down, you might have more mortgage origination. alison: that is one of the things we are looking at this quarter. they've brought down estimates a couple of times. bank of america brought down estimates when an a half times. part of that is reinvestment related to the long end. however, wells fargo earns relatively more from mortgage banking. they get this offset. we thought it was sort of interesting that the revenue estimates were drifting up going into the quarter versus other banks coming down. lisa: i think it i

banks, they will be able to benefit going forward from the absence potentially a deutsche bank in that space in the next few years. side, it has been a bit of a mixed picture. always great to get your thoughts. you stay with us. we have more to discuss. deborah. trade deal between the u.k. and the u.s. will not be forged quickly. that is according to boris .ohnson, the favorite would boost things over time. an essay posted on linkedin, the be risksaid it would reducing and enhancing to consider adding gold to your portfolio. the second biggest -- deadliest outbreak of the ebola virus has become a global health emergency. there are concerns the virus could spread outside of the democratic republic of congo. 1500s killed more than people. by more than 2700 journalists and analysts. this is bloomberg. coming up, netflix flunks. overseas plummeting. details to come. this is bloomberg. ♪ 7:19 market open. this is daybreak europe. clock at gone?e what have you done with the clock? jose, where is the clock? the topix is off by 2%. jose is the director of the show. to pause for thought? deut

of the banking system and provide some money regulates the banks of the banks or members of that institution like that's not going to that structure has to go away you cannot have the financial system be members of a central bank that provides them cover when they screw up that entire system has to be demolished but also the debt that currently exists because it does that that these central banks throughout the world have purchased a house to be repurposed or redistributed back into the economy from which it came and actually redistributed repurposed into infrastructure building into social programs and to weigh in. which we solidify the economic strife is individual so it has to be turned around some of it has to be forgiven and central banks cannot be structures that ultimately are the go to for money supply artificially to the financial system in the meantime what people can do just in their day to day lives in terms of their own personal fix is not have money with these private banking institutions that have gone all of this free money from the fed and other central banks and are giving

of the banking system and provide some money regulates the banks of the banks or members of that institution like that's not going to that structure has to go away you cannot have the financial system be members of a central bank that provides them cover when they screw up that entire system has to be demolished but also the debt that currently exists because it does that that the central banks throughout the world have purchased house to be repurposed or redistributed back into the economy from which it came and actually redistributed repurposed into infrastructure building into social programs and to weigh in. which we solidify the economic strife is individual so it has to be turned around some of it has to be forgiven and central banks cannot be structures that ultimately are the go to for money supply artificially to the financial system in the meantime what people can do just in their day to day lives in terms of their own personal fix is not have money with these private banking institutions that have gone all of this free money from the fed and other central banks and are giving inte

bank generally is the overall banking which means that the bank will force all kinds of products over the people usually have their private accounts somewhere to broker it some still there real estate financing or how the financing some of the business it's going. and if you have problems anyways it will be difficult to to do the right decisions in that sector. so now do you think this restructuring is a harbinger of a bigger problem within european banks in general deutsche bank right now is not the only one loaded with trillions of euro's and non-performing bank loans and directed at us and this could actually quickly escalate into a broader european crisis is this restructuring cost cutting measure enough to stabilize the bank or do you think this is just the tip of the iceberg and this is a sign of a bigger problem. i think that it's not going to be helpful to panic i think it's really symptomatic of what's happening with european banks in general and part of the blame on the european union because since 2008 u.s. banking regulators the european union really has not legislated any

directly from your bank account. user should look out for fees though often sending money to friends is free of charge but many providers make a profit on other transactions charges 5 percent on international money transfers for instance that can become costly in the long run. so here's a checklist for farming that your wallet that's best for your needs what countries and currencies doesn't work how can i top it up what payment options do i have. and what does the option i use most cost and as always it's also important to look out for your security personal data. expert julie martin has some basic advice for choosing the right provider look for multiple factor authentication look for making sure that there is a backup. and make sure that they are warning you about how you should be interfacing with the technology. whether or not my money is safe depends on how i keep it leaving my wallet is probably a bad idea using 1234 as a password for my wallet also not the best but providers need to maintain security standards

from deutsche bank? peter: bank margins are being squeezed by negative interest rates in europe which is one of the major problems. the second one is the increased amount of regulation. more difficult and costly to engage in certain forms of business. with regard to the addressed rate environment i guess that we would still be in negative territory and possibly going lower. difficult to believe that we found ourselves in this position. we are in an environment where the monetary authorities have more instruments and it will have long-term consequences one of which is on pensions and profitability. that is the main thing which is hurting banks. and i guess the reason why banks are slow to respond to that environment is they did not believe rates would remain so low for so long and deutsche bank and other banks are having to bow to the inevitable with regard to cost cuts. and quite usre ways of cost cuts to come. can i turn the slightly around? a -- isthe criticisms you did not get the bad bank and siphon

banking. if this is the end of deutsche's ambition to be a wall street-style investment giant, where does that leave the european banking scene? -- european investment banking scene? reduced. been rbs and others are key examples. barclays is still engaging in some of this. it is going to be difficult when it comes to competing with the biggest players on the others of the pond dominating this market. they will dominate the market for years to come. >> thank you. thank you for being with us. about the's talk worldwide grounding of the 737 max series for boeing that has cost them a major order. a provisional order has been canceled for 30 of the 737 max 8 jets. they opted to buy airbus instead. they have been reviewing their deal with boeing since two fatal crashes grounded the fleet worldwide. 737 remains grounded as it awaits regulatory approval for flight software blamed for those two crashes. genie: bad news for british airways following a massive data breach last yeyear. commissioner's offi

this is the power and the danger of mobile banking you are your own bank and if you have bad security practices you lose your phone or something happens then. the consequence is that like online banking mostly you want to use 2 factor authentication for example password and fingerprint what if a transfer fails or though some providers have accommodating rules similar to a bank but that is not a given that usually circumvented the middleman making a profit and if there is no longer an intermediary there who is making money off of you. then you have a danger that you're not going to get that charge back there's nobody to charge it to send it back to you. so. some risks but doesn't money always how does mobile payment compare to other common methods we took a closer look. how secure is using it compared to using a credit card online the only way to answer that question is it depends it depends on the e.u. wallets and on the online payment system there are you while it's a systems that are more secure than some of the online payment systems that are in use today and vice versa. i would pr

deutsche bank swings the ax. the ceos new plants reshapes the business and slashes workers. >> we have taken the decision to retrench and step back. >> the big issue is capital. it continues to be capital. this whilearound all balancing cuts is something that continues to be a question mark. [inaudible] streetys here with wall are leaving we are going to get a rate cut. >> the big surprise would be if they did nothing. >> we have a lot of time left, we will see what happens. >> pushing for concessions in hong kong. the u.k. parliament takes a stand against in no deal brexit. >> parliament saying clearly we will not take kindly if you try to surpass us. >> ibm and red hat signed one of the biggest tech deals ever. >> we will extend their reach into 175 countries. >> an analyst says recession may be coming, but investors should not fear the worst. it is all straight ahead on bloomberg best. ♪ >> hello and welcome, i am rosalind chin and this is "bloomberg best," your weekly review of the most important business n

epstein was deutsche bank. if you had to ask me, where does epstein bank, i would say probably deutsche. that seems to be their clientele. the fact they took him out as a client, keep in mind, he was looking for a bank because jpmorganchase wouldn't be business with him. the fact that deutsche took him on said something and they ignored the suspicious activity. >> the positive element is when you read the story, it's very clear that this story is coming from people inside the bank who don't like this aspect of their own bank's business. >> no. this is what happened. the banking compliance folks do their job. these are hardworking americans who are carefully trained. they tried to raise the concerns. what happened? the upper crust people at the bank decided it was worth it to them to take on this business, to do business with any rich person whether he was involved in lawful activity or really unlawful and immoral activity like mr. epstein. i think this should hearten us there are people trying to follow the law

banking charter. he also expressed skepticism of digital currencies in general. u.s. federal reserve chairman jay powell is suggesting the central bank has room to cut interest rates. he wrapped up two days of testimony on capitol hill. he said the economy is in a very good place and the fed wants to use tools to keep it there. turkey may be one step closer to u.s. sanctions. the first shipment of a russian missile defense system has arrived. the u.s. warning turkey it would face economic sanctions if it goes ahead with the purchase of the system. it also says turkey won't be allowed to take part in the program to build the s35 fighter jet. two of the world's largest automakers are teaming up on self driving cars. bloomberg's learning volkswagen will invest in ford's autonomous car partner argo at a valuation of about $7 billion. vw will hold its audi division self driving unit into arg that positions are goo. as a challenger -- that positions argo as a challenger. global news 24 hours per day powered

banks. nejra: what are your expectations for what the ecb does in terms of cuts to the deposit rate? also the resumption of qe and how that might manifest and provided transmission mechanism. >> draghi is likely to push through a cut in the deposit rate, maybe 10 basis points. we will probably not get it this week. they will clearly signal that. in terms of further qe, he will leave that in the inbox of lagarde in terms of issuing the new head of the ecb going forward. they do engage in further stimulus. you are not seeing the growth drivers out there, given the uncertainties with regard to trade. that has negative implications for european banks. i go back to what i said earlier. the levers lie in terms of tearing interest rates and further qe. those would act as a drag on the potential recovery of european banks relative to u.s. banks in our mind. nejra: you've taken me to my next question. we are one mind. the u.s. was a challenge. the fed and possibility of rate cuts and low weights alre

this is the power and the danger of mobile banking you are your own bank and if you have bad security practices you lose your phone or something happens then you are the one who is going to suffer the consequences of that like online banking mostly you want to use 2 factor authentication for example password and fingerprint what if a transfer of feels as though some providers have accommodating rules similar to a bank but that is not a given that usually circumvent the middleman making a profit and if there is no longer an intermediary there who is making money off of you. then you have a danger that you're not going to get that charge back there's nobody to charge it to send it back to you. so. some risks but doesn't money always. how does mobile payment compare to other common methods we took a closer look at. how secure is using it compared to using a credit card online the only way to answer that question is it depends it depends on the wallets and on the online payment system there are you well that systems that are more secure than some of the online payment systems that are in

this is the power and the danger of mobile banking you are your own bank and if you have bad security practices you lose your phone or something happens then you are the one who is going to suffer the consequences of that like online banking mostly you want to use 2 factor authentication for example password and fingerprint what if a transfer feels as though some providers have accommodating rules similar to a bank but that is not a given that usually circumvented the middleman making a profit and if there is no longer an intermediary there who is making money off of you. then you have a danger that you're not going to get that charge back there's nobody to charge it to send it back to you. so. some risks but doesn't money always. payment compared to other common methods we took a closer look. how secure is using it compared to using a credit card online the only way to answer that question is it depends it depends on the wallets and on the online payment system there are your wallet systems that are more secure than some of the online payment systems that are in use today and vice ve

♪ ♪ ♪ >>> finally tonight, modern-day bank robbers don't have to enter banks anymore. they can now target atms in ways that you would nevermagine possible. this new high-tech twist has become financialor headaches many of the banks in this country. andrea days investigatehis cutting-edge break-i >> it is brazen. light and in d d front of hundreds of people. >> reporter: take a look at this atm attack caught on camera, the images obtained from the secret service. according to the agency, the guys you see in uniform are criminals grabbing loads of cash. what left this seasoned investigator stunned? >> how normal it a lookednd how calm they were. we know for a fac that atm crime and fraud does cost the banking industry and financialu services iy billions of dollars per year. s the orter: david tente u.s. executive director for the atm industry association. >> it just seems like in the u.s. no one really wants to talk about that. they would ratherirot have the customers and others thinking that their atms aren'tepsafe. >>ter: according to the secret service, recent attacks

and others have tried to chart the interconnectedness of deutsche bank in the other banks but in fact these are the biggest risks and if bank fails to make good on its derivatives bets that's the vector through which systemic tremors take place when the biggest writer of credit default swaps failed it essentially hundreds of billions of dollars that it couldn't pay the bailout g. was really a bailout to their counterparts goldman sachs and for example deutsche bank got $11000000000.00 of the united states taxpayer money to make good on the c.d.s. is that could not make good on sun i compare this situation all to bear. and there actually really pretty similar bear stearns a collapse in confidence that drove it to the very brink of insolvency i just like right now the shorts are absolutely piling on and funds are stampeding out withdrawing the assets rand tech their biggest clients have actually withdrawn so now tell us more about the impact of the losses of these clients that they're facing and i mean the shorts are increasing every single day could they actually drive back to insolven

after decades of trying to become a titan of wall street and build a global investment bank bank is looking to the home market the struggling lender has announced a major restructuring plan that will involve building on its traditional strengths . will slash around a 5th of its staff worldwide over 3 years it's scaling back its investment banking operations and will shift 74000000000 euros of risky assets into a new bad bank because it's known for sure also says it will cut some of its fixed income operations an area traditionally regarded as one of its strengths. that laying on the plant we've been planning for quite some time that after achieving stabilisation last year cleaning up the balance sheet i mean costs under control and we now want to take the next step mats to align the bank with its strengths and that is what we're pleased to announce today. bank expects a $2800000000.00 euro net loss in the 2nd quarter as a result of restructuring charges and a loss for the full year it's frank this base story to banks deepest hole in 3 decades and comes after the collapse of a planned merger

the bank to get that. that's a main reason a lot of people don't use bank accounts. what does it cost them in not just the check cashing fees but the money is sucked out of their accounts with these fees and make them rely on payday loans. there's 300% apr. these are real simple problems. i think part of being poor is that there are a lot of problems that other people don't realize that you have. i think we need to have a little bit more compassion about what it's like to not have that much money and how we can make their lives better. >> as you mentioned, senator warren and i introduce legislation to move forward but really the fed has it within it ts power and authority to do this right away. can you just talk about how they have that authority and your view that they should move forward immediately to catch up with many of our global competitors. >> they have the authority. they say they are studying it. i don't know how high on the priority list it is but i think it should be. the brookings institute p

this is the provisioning by banks. leastid banks our favorite sector in europe. also in the u.s.. i want to get your take on this. thanks in the united states of america have the least loan-loss provisions since the financial crisis. that's in part to do with accounting. i was quite surprised. the power of positive thinking is the title of the chart. does this play into any of your thought processes of why are you so anxious against the banks? is it yield or things like this? >> absolutely. -- it's very very difficult to run a bank now. that's the conclusion. we are increasingly seeing it in u.s. and europe. makevery difficult to interesting. that's a big challenge. are a lot healthier than european banks. we know that. provisioning in u.s. is lower than anywhere else. if there is very little interest margin, it is very difficult. business. boring yes, it is going. maybe not as fast as some banks would like to have. it is going. it is fairly healthy. that's probably a bigger point to take out of banks earning season. bank's are finding it difficult to make money in trading. volati

thesche bank draggi into -- deutsche bank dragged into the 1mdb scandal. insight fromome jason chandler. and a tropical storm hurtling towards the gulf of mexico, closing oil and natural gas platforms, while the british navy interferes in the strait of hormuz to protect an oil tanker. david: welcome to "bloomberg daybreak" on this thursday, july 11. fastenal came in with a mess, getting punished in the premarket about 5%. in the meantime, delta came in and beat earnings-per-share, and more importantly, took up forecasts. delta is up about 2% now and the premarket. alix: they had to raise prices at the end of last year, and sedse products the rai prices for didn't have the sales growth they did normally see. david: there's a lot of squeezing at the margins. alix: keep your eye on boeing and southwest. a headlight just crossed saying that they are being sued over 737ged collusion for max aid. just keep your eye out. david: the stock was actually up in the premarket, so we will see. alix: in the markets, a completely dovish fed picture. equities rally in, dol

deutsche bank is ahead of some banks like goldman. scarlet: can you walk me through on rationale of refocusing europe and germany. economyn make an export that is slowing. nick: banking is changing from being a pure relationship business to have a big balance becoming more about data and technology. the reason why deutsche's has this strength is that he has this long-standing relationship with the bigger and midsized german corporis -- german corporates. has more than jp morgan come over goldman. that means that it can leverage that strength in the market. with the transactional banks, you see what they are doing in terms of the flows in capital. romaine: the execution seems like is going to be key here. there's also this issue of funding. thefunding, the e -- off,al needs to pull that where did they get that money? not: they claim they will need more capital. that is the headline announcement today. there seeing that with 18,000 headcount reduction. and they are going to reduce that balance sheet. that is probably the other interesti

they did not trust the banks. it was only when we got deposit insurance that the banks had the kind of faith -- what kind of faith that we have in libra? mr. marcus: thank you for your question, senator. libra is going to be backed by a reserve, one-for-one, so it is not ever going to be fractional. as a result, it is designed to be stable and retain value. senator: i got that. 2008, there was a run on the banks. there were big companies that went belly up including 157 banks, lehman brothers, bear stearns and others. no one anticipated there would be a run like there was. no one. how can you assure us, and by the way, i still felt confident my money was safe in my bank, how can you make those assurances? how can you do it when we are profit entity,or you are not doing this just for the fun of it, how can we be assured our money is going to be there? mr. marcus: senator, when it comes to libra, because the reserve is one-for-one and not fractional, the issue we have at any events you highlighted were because some

last night "the new york times" reported that deutsche bank's private banking managers urged the bank to retain jeffrey epstein as a client, even after the compliance officers recommended that the bank drop him as a client, because of reputational risks so i'm going to submit a question about what type of customer does represent a reputational risk. and if not epstein, who? >> thank you senator kennedy? >> thank you, mr. chairman and thank, mr. chairman. mr. chairman, what is the economic impact in your judgment of illegal immigration on america's economy? >> i would have to answer it in generalities i haven't tried to quantify that, but people who come in legally or illegally, they add to our workforce and they contribute to gdp, certainly so, that's part of it. i think part of growth, you can really boil growth down into labor force growth and productivity increases and immigration, total immigration has contributed more than half of the growth to our workforce in the last few years, so it's important. >> what about illegal immigration? does it have an impact on wages? >> there's be

banks the selves more recently that managers and hedge funds the main clients of the investment bank at businesses are increasingly cutting cost cutting services from big names thanks to technology or in favor of a smaller boutique firms so it's not only european banks even goldman sachs is diversify in away from its traditional trade in and of the story routes into retail banking and technology development so a challenging market there for everyone who is in the east joining us from new york and those are banks problems may have started in earnest when they tried to swim with the big u.s. investment banks but there were plenty of other missteps along the way take a look. which a bank listed in new york in 2001 after decades acquiring european and american banks it was now the world's 4th largest asset manager. josefa aka months did it during the 2004 to 2008 u.s. housing credit bubble a senate investigation said later that deutsche bank had helped fuel the global financial crisis by continuing to sell subprime mortgage packages even as markets collapsed in 2008 the bank lost 3900000

of lloyds bank. the bbc‘s economics correspondent andy verity has been investigating this and can tell us more. andy, how did this all come out? not through official channels, this is through ordinary borrowers doing something truly unusual — reading the documents chasing their debts really closely. most of us wouldn't think of it as their favourite pastime. but some of the people facing repossession became concerned that routine forgery of signatures in repossession actions, which happened in millions of cases in the united states, has also been happening here. the banks strongly deny that. however, in growing numbers bank customers have been checking back on their documents and campaigners have now gathered a growing body of evidence of dodgy signatures. the banks in question include uk asset resolution, the government—owned bank. there's also evidence about lloyds banking group. i went to lancashire earlier this week to find out more. i was just determined that this wasn't going to kill us,

most banks have doubled down on europe. jpmorgan, morgan stanley, bank of america. deutsche bank is focusing on being a germany first or even europe first, so how will they do that and be competitive as the others are pouring in? taylor: do we think they'll be doing that on the retail side? do they want to have a big retail presence? i think up like a chase or be of a in the u.s. is that where we could see deutsche bank double down their energy? sonali: that is what everyone is thinking, german retail will be the focus. jan that we see growth in private banking as well. is, leadership, the head of business, is he going to be around as well, and who will be overseeing the efforts to keep that competitive? taylor: i wonder about the rationale behind that. we know the german and european banks have struggled with negative rates. you are looking at a german ten-year at -40 basis points yesterday. why would you double down on europe when it is so hard to make money over there? sonali: it is funny, definitely a lot of headwind, but maybe it allows them to focus on one thi

two weeks banks that make a stronger bank, they make a weaker bank. not ae learned that it is good idea to try and disguise the issues of one bank by putting it together with another. the other element is that what deutsche bank is doing is the correct strategy. it is improving costs and reducing transparency. it will start separating part of the businesses. so what they need to do is make sure there is enough transparency so that no one starts believing there is some hidden data out there that would show the banks are in a worse situation than what they are. i think that transparency here is what is going to help those banks improve and increase rates. anna: thank you, a very good place to leave the conversation. thank you much chief economist at tressis. let's get to the top stock stories of today. annmarie: lots of moves this morning, given that massive earnings don't. -- dump. is up nearly 7%, beating the highest analyst estimates. up nearly 4%. a profit beat and a wider sales margin. the ceo spoke to the program earlier, this is really needed as

eli: the question is when do shadow banks go away and the banks get to recover? not until you get economic decline. a true deceleration of the economy will start pulling some of the shadow banks away and then it will ship that. between now and then, what kind of risky loans will you get to your question about aggressive lending to compete with the shadow banks? the fear would be that in the economic decline, some of thosewarts will be exposed. sonali: not always bad about low rates. is there any hope that financing can outpace that the kleins? -- the declines? sonali: -- eli: we're experiencing burnout. rates have already come down dramatically. the fact that rates are coming down again, many people who could refi have already refinanced. the wave will not be as it was in the past. alix: you'll have to come back. so much more to dig into. eli salzmann and bloombergs sonali basak. thank you much. signaling jay powell and openness to rate cuts and markets react sharply. more on what i'm watching next. if you're getting in your car, jump on radio. bloomberg radio ca

let's begin with the begin vestment banks. , itah: the investment banks was not a good quarter. there was a lot of uncertainty with trade, everything from brexit to iran to mexico to china. the investment banks were looking at lower trading results and investment banking results that were actually quite lower. one analyst is expecting as much is a 21% drop in investment banking results. vonnie: a 21% drop across the board. there were some big ipos. investors will also be looking for guidance around deal pipelines for the rest of the year. vonnie: right. after this round of earnings, is there a possibility that we will see more deals, particularly among the smaller players? will there be another round of bank consolidation? hannah: that's been a big question all year. we saw bb&t and suntrust earlier this year in the biggest deal since the crisis. everyone has been waiting to the answer to that question, so i guess we will see. the leaders of these banks have been pretty cautious on saying anything about it. they've said they are happy with their current market share, etc. vonnie

banks. that is taken away a lot of risk. environmentol without that it is difficult to see revenue go higher. david: it really did do better but mainly on advisory specifically. to what extent is the chairman of the fed hurting the banks? is it suppressing volatility? gina: i think it is to some degree. policy in general has captivated market trends of large. they contributed to this greater suppression and volatility. what you have going on with monetary policy is the suppression and volatility. there is a little bit of a give and take when you think of policy at large. i don't think we can squarely blame this on jay powell and the fed. it's not their fault per se the economy at large is running at the slow pace. i think you have a number of levers keeping economic growth suppressed. first and foremost you have a tremendous amount of uncertainty on the part of the business investment community which is suppressing loan growth, keeping activities levels limited and that's getting reflected i