esther, what did you and commerzbank make of the comments from the u.s. federal reserve federal president this last time for hours? did it make a difference to market pricing and what you believe? esther: while we sought interest rate expectations to decline further, we do not think it make a fundamental change. the fed has already indicated they intend to cap interest rates at their july meeting. the big question for the u.s. market, will they continue to cut after the july meeting, or is it just a preemptive cut? to this extent, it did not give more insight. act indicated they want to early, but whether there are further steps coming is unclear. perhaps the more immediate impact on markets today is the ecb impact today and yesterday, we saw a big move in peripheral bonds. troubles in italy aside, we saw a little more movement in the bond market. what is the ecb's next move? esther: interestingly, the dovish comments on the fed might put pressure on the ecb to act sooner rather than later. the ecb is not that inclined to act because they don't have that

thu lan nguyen from commerzbank is still with us. commerzbank has been out in front in terms of the expectations for ecb rate cuts. you have been calling for july and now you are calling for 20 basis points in july. why? thu lan: because of the economic situation. the data that we have seen , primarilybviously from germany, has been rather weak. the manufacturing sector is still in recession and has not really recovered. also, i think what is w orrying for the ecb are the following long-term -- falling long-term inflation expectations. i think that is a big concern among the ecb members. therefore, i think they will act rather sooner than later and also are going to try to surprise the market on the dovish side to have an impact. nejra: yes. with that in mind, very briefly, and with the 10 year bond yield pushing on -40, can the euro state-supported -- estate -- stay supported? thu lan: in the very short term, i would not expect the euro to regain or recover. we are expecting rather the ecb to surprise on the dovish side. against thi

the merger talks with commerzbank failed. there are no other talks lined up, so they have to do something. the easiest ways to clean up the balance sheet, reduce the costs, and form a new bank and move along the way. i like very much the analyst last week who said deutsche bank right now reminds him of the swiss banks a couple of years ago. deutsche bank might go down that path as well by cutting down investment banking and focusing on retail and wealth management. that is certainly the roadmap. cuts, $3.6 billion, and he was losing 2 billion swiss francs in the previous quarter. deutsche bank has just announced double that number. thank you very much. bloombergatest on our scoop. let's check with the rest of the markets this morning. standing by in mumbai with niraj shah. in london, dani burger. is there a nice rally for you in india? >> not quite risk on. i would be surprised if there was a bigger rally. we are looking at numbers three days from now. i doubt there would be anything. we are participating in a muted sort of w

to revamp the business and in three months —— three months ago it was in talks to merge with rival commerzbank to create a german financial services giant but the plan was deemed too risky and it fell apart. damien mcguinness reports from berlin. they didn't manage to keep the business clean enough, taking too many risks and they didn't deal with regulations efficiently and there we re regulations efficiently and there were a number of court cases going on and investigations, including a probe into alleged attacks evasion in germany, as well as allegations of negligence with money laundering. they've hit the bank's reputation and also their balance sheet, so what we've seen are huge costs and legal fees. this is what we've seen are huge costs and legalfees. this is more really than just a simple restructuring programme, big as it is. it's an entire new direction because the jettisoning, most of the international investment banking —— there jettisoning most of the international investment business. —— they are. they are going back to helping german companies export, like what they were

commerzbank is facing the same pressure from lower rates for longer. they are price-sensitive to interest rate movement. they are busy working through their own plan which they will unveil in the autumn and i'm sure there will more questions on that in the next few weeks. unicredit jobf cuts as well. are all european banks in the same boat or is there a big difference talking about the german lenders versus the italian lenders. they all have their own problems. can we make any universal conclusions? elisa: the business mixes very differently. economic conditions are different. what it does mean across the board is there can be no let up on cost cutting. that is also part of the shift you see toward cutting branches and using more digital services, so they are stuck between needing to cut those costs while also needing to invest in businesses to prepare them for the fin tech revolution, which makes it difficult. vonnie: elisa martinuzzi, thanks to you. we'll be watching all of those earnings very closely. the federal reserve is expected to deliver an in

to make a $3000000000.00 quarterly loss because of the restructuring it failed to merge with rival commerzbank in april it's been struggling for years with the decline of its investment operations dominic cain has more from berlin. the point to make here is this is the latest part of the saga as it were that has unfolded around bank going back many years now the point here is that the investment banking branch has been ailing very much in recent years and the tack that's being taken by the bank now is not it was not universal approval for it from within its own board one of the executives resigned from his post in the in recent days clearly when it was became clear that that sundays and that's would be made so people have to view what's happening today through the prism of this long slow decline the job losses when they come well it seems as though the headline elements of them will not be taking place in germany certainly from a dog or a bank perspective they want to move away from share trading and the move away from hedge funds and that sort of thing they want to return what you might call

commerzbank pulled in $11 billion for its debut sale of coco bonds. a 7% coupon, turned out to be europe's most successful sale of an additional tier one note in 2019. germany selling more than 3 billion euros of five-year debt at -0.6 6%. the sale oversubscribed by 1.5 times. a pervasive fear of missing out on even the slightest hint of yield is creating a buying frenzy that has swept across the continent. saying central banks will have to react to stop the rally. >> the move has been a collapse in yields. bond markets are telling you we are worried about growth, the perspective of deflation, and we think central banks will have to act. that is what is behind the drop in yields. we are getting to the stage where if yields start to fall further, there will be more problems than actually helps. arethan: still with us peter tchir, iain stealey, noelle corum. we are betting on stimulus, and we are also betting that it will not work. yields on bonds keep heading in the same direction. noelle: still a lot of uncertainty around the details of how they will

commerzbank pulled in $11 billion for its debut sale of coco bonds. the $1 billion junk rated note priced with a 70% coupon and turned out to be europe's most successful sale of an additional tier one note in 2019. germany selling more than 3 billion euros of five-year debt at -0.66%. the sale oversubscribed by 1.5 times. a pervasive fear of missing out on even the slightest hint of yield has created a buying frenzy that has swept across the continent. neil shearing saying central banks will have to react to stop the rally. neil: the move has been a collapse in yields. bond markets are telling you we are worried about growth, worried about the prospective of deflation, and we think central banks will have to act. that is what is behind the drop in yields. we are getting to the stage where if yields fall much further, there will be more problems than actually helps. jonathan: still with us are peter tchir, iain stealey, oelle corum. we are betting on stimulus, and we are also betting that it will not be enough and will not work, because yields encore g

commerzbank pulled in $11 billion in bids for its debut sale of coco bonds. a 7% coupon, turned out to be europe's most successful sale of an additional tier one note in 2019. finally, germany selling more than 3 billion euros of five-year debt at -0.66%. the sale oversubscribed by 1.5 times. a pervasive fear of missing out on even the slightest hint of yield is creating a buying frenzy that has swept across the continent. neil shearing saying central banks will have to act to stop the rally. yields. collapse in bond markets are telling you we are worried about growth, the prospective of deflation, and we think central banks will have to act. that is what is behind the drop in yields. we are getting to the stage where if yields fall further, there will be more problems than actually helps. jonathan: still with us are peter tchir, iain stealey, noelle corum. we are betting on stimulus, and we are also betting that it will not work. yields on core government bonds keep heading in the same direction. noelle: still a lot of uncertainty around the details and how

commerzbank pulled in $11 billion for its debut sale of coco bonds. the $1 billion junk rated note priced with a 70% coupon and turned out to be europe's most successful sale of an additional tier one note in 2019. germany selling more than 3 billion euros of five-year debt at -0.66%. the sale oversubscribed by 1.5 times. a pervasive fear of missing out on even the slightest hint of yield has created a buying frenzy that has swept across the continent. neil shearing saying central banks will have to react to stop the rally. neil: the move has been a collapse in yields. bond markets are telling you we are worried about growth, worried about the prospective of deflation, and we think central banks will have to act. that is what is behind the drop in yields. we are getting to the stage where if yields fall much further, there will be more problems than actually helps. jonathan: still with us are peter tchir, iain stealey, noelle corum. we are betting on stimulus, and we are also betting that it will not be enough and will not work, because yields encore

commerzbank pulled in $11 billion in bids for its debut sale of coco bonds. the $1 billion junk rated note priced with a 7% coupon and turned out to be europe's most successful sale of an additional tier one note in 2019. and finally, germany selling more than 3 billion euros of five-year debt at -0.66%. the sale oversubscribed by 1.5 times. a pervasive fear of missing out on even the slightest hint of yield has created a buying frenzy that has swept across the continent. neil shearing saying central banks will have to act to stop the global bond rally. neil: the move has been a collapse in yields. bond markets are telling you we are worried about growth, worried about the prospective of deflation, and we think central banks will have to act. that is clearly what is behind the drop in yields. we are getting to the stage where if yields fall much further, there will be more problems than actually helps. jonathan: still with us are peter tchir, iain stealey, noelle corum. we are betting on stimulus, and i guess we are also betting that it will not be enough and

and peter dixon from commerzbank is still with us. what is your take of the banking landscape in europe right now that we've got this restructuring happening 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

has beenhareholders he working on harsh cut that after dropping merger talks of commerzbank. >> apple is said to make its new mac pro desktop when china moves devices,n of its major using quantum computers to make the $6,000 machine, down in a factory outside shanghai. this comes as the united states threatens new tariffs on goods imported from china. president trump had been slamming apple in the past for making devices in china. >> singapore develop the capital and had completed acquisition, creating one of the biggest real estate groups with more than $90 million usd of assets under management. having agreed to by two property units from state investment funds in january. >> protesters gathering in hong kong, working the anniversary of the return to chinese rule and the start of carrie lam's third year in office. our senior reporter is with us -- we have had the flag raising. >> which is a traditional thing they do every year -- this is the one that is supposed to mark the return of hong kong to "the motherland. ironic -- youmely have carrie lam in a speech telling people that the

1000000000 euros and then also in the 1st quarter of 2019 deedes hail mary attempt at a private bailout by commerzbank failed as merger talks collapsed now this collapse of deutsche has been predictable so it comes as no surprise to industry players its top shareholder airlines cut exposure from 10 percent and dump shares running for the exit the 7th largest hedge fund in the world and d.b.s. biggest prime brokerage client closed out counterpart exposure and also moved on so what scared them well it could be massive derivates mosher $43.00 trillion euros of as to made derivatives on the books in 2008 derivatives played a big role in the financial crash in the form of collateralized debt obligations and betting on top of these financial assets people basically made bad on the market and people made bets on top of those bets and it turned what originally was a few $1000000000.00 of assets into a few trillion dollars and that's exactly what happened to do a job bank here bloom 40 trillion dollars off of only a few $1000000000.00 of assets through providing longs and shorts on both sides of the trade now

hail mary attempt at a private bailout by commerzbank failed as merger talks collapsed now this collapse of deutsche has been predictable so it comes as no surprise to industry players its top shareholder airlines cut exposure from 10 percent and dump shares running for the exit the 7th largest hedge fund in the world and t.v.'s biggest prime brokerage client closed out counterpart exposure and also moved on so what scared them well it could be a massive derivates mosher $43.00 trillion euros of estimated derivatives on the books in 2008 derivatives played a big role in the financial crash in the form of collateralized debt obligations and betting on top of the. financial assets people basically made bets on the market and people made bets on top of those bets and it turned what originally was a few $1000000000.00 of assets into a few trillion dollars and that's exactly what happened to georgia bank here bloom 40 trillion dollars off of only a few $1000000000.00 of assets there providing longs and shorts on both sides of the trade now that in it's of a self is fine banks actually do this

1000000000 euros and then also in the 1st quarter of 2019 deedes hail mary attempt at a private bailout by commerzbank failed as merger talks collapsed now this collapse of deutsche has been predictable so it comes as no surprise to industry players its top shareholder airlines cut exposure from 10 percent and dump shares running for the exit the 7th largest hedge fund in the world and d.b.s. biggest prime brokerage client closed out counterpart exposure and also moved on so what scared them well it could be massive derivates mosher 43 trillion euros of estimated derivatives on the books in 2008 derivatives played a big role in the financial crash in the form of collateralized debt obligations and betting on top of these financial assets people basically made bad on the market and people made bets on top of those bets and it turned what originally was a few $1000000000.00 of assets into a few trillion dollars and that's exactly what happened to do a job bank here and 40 trillion dollars off of only a few $1000000000.00 of assets through providing longs and shorts on both sides of the trade now that in

1000000000 euros and then also in the 1st quarter of 2019 davies hail mary attempt at a private bailout by commerzbank failed as merger talks collapsed now this collapse of deutsche has been predictable so it comes as no surprise to industry players its top shareholder airlines cut exposure from 10 percent and dump shares running for the exit the 7th largest hedge fund in the world and t.v.'s biggest prime brokerage client closed out counterpart exposure and also moved on so what scared them well it could be massive direct exposure 43 trillion euros of estimated derivatives on the books in 2008 derivatives played a big role in the financial crash in the form of collateralized debt obligations and betting on top of these financial assets people basically made bets on the market and people made bets on top of those bets and it turned what originally was a few 1000000000 dollars of assets into a few trillion dollars. and that's exactly what happened to george a bank here balloon 40 trillion dollars off of only a few $1000000000.00 of assets there providing longs and shorts on both sides of the trade now

struggling for years with the decline of its investment arm and the failure to agree a merger with rival commerzbank only functioning airport in libya's capital tripoli has reopened ports had been closed following a series of missile strikes earlier on sunday 3 airline employees were injured in a plane on the tarmac was his as well the airport has repeatedly been targeted by forces loyal to the warlord khalifa haftar who began a campaign to take over the capital back in april pope francis has expressed sorrow for the migrants killed in an air strike on a detention center in libya on tuesday at least 53 people including 6 children were killed when a camp near the capital was hit the tripoli based un recognized governments as have to and his forces are the ones responsible but they say they were targeting they were targeting a nearby weapon step or a sort of your brothers and sisters even if a few days have passed i invite you to pray for the poor defenseless people killed or wounded by the air attack that hit a detention center for migrants in libya the international community cannot tolerate such se

vonnie: some of the banks lower today, including commerzbank. does it mean that investors in other banks are a little disappointed now because it makes a merger less likely. isali: right now a merger not on the table, but over the this is the last real big. plan if it weren't going to work -- the last real big plan. if it weren't going to work out, the next plan would be years down the road. analysts were asking christians having this morning what is going to happen to the asset management unit. the rest some talk about maybe merging them with ubs. to be any sort of deal activity is the question. there ononali basak deutsche bank. guy: the global strategist at socgen will give us his thoughts. let's take a look at deutsche bank and try to understand where we are here in europe. europe relies on its banks. germany relies on its banks. yet making money in european banks is pretty problematic right now. how big a problem is that? i can just about see it from here at the ecb. guest: problematic. they like more of it. if you look at the euro zone fro

part of the rationale between not merging with commerzbank at do with thousands of job cuts. taylor: thank you. as we've been bringing you headlines of deutsche bank cutting 1300 of the real kill cutting 130022 -- retail jobs by 2022. a lot of moving parts as we await that july 8 deadline when we expect to get more news on deutsche bank. guy: that news could come over the next few days. it is interesting you focus on what is happening with that asset management side of things. all of these european banks hoping the asset management side of things will be what rescues them. they are hoping that part of the business does well. interesting in light of what we have seen with hto -- with h2o over the last two days. just getting the settlement in europe. not much movement in terms of price action. followinghigher sideways trade for european equities market. those are your closing prices. do not forget to tune into the cable show at the top of the hour if you want to continue with the action. jonathan ferro is back in new york. he will be joining me on the other side of the pond. da

commerzbank predicts a bigger cut to keep the central bank ahead of the curve so lots of moving parts today. certainly draghi is going at lengths to emphasize all of the different tools he has in the toolkit, whether it's language, interest rate, lots of tolls there. let's get out to annette in frankfurt. putting it altogether, expectations are very, very high after that sintra speech what will they do today and will the president use this as an opportunity to really lay the foundation for that big package come september >> most likely we'll get a lot of signaling today mario draghi was clear that rates could also go lower at sintra, and clearly they have to remain credible. what will happen today and what package we might get, i'm joined by the chief economist with s&p global ratings here in frankfurt. thank you very much for joining us what are your expectations for today? >> yes the ecb is back to the future. we expect the ecb to switch back officially in the easing mode at today's meeting. and there's a package of measures with probably cutting the deposit rates by 10 business poi

commerzbank and caixabank moving higher. some support from the italian sector helping them to outperform. let's focus on the downside. we had a warning today on the recruitment today. paid group is a recruitment readess and there is a that is possible to make. hayes is down in sympathy. yesterday, a double downgrade pushed this particular staffing business down as well. the market is rethinking these stocks ahead of the earnings season. micro focus is also weaker. amadeus is down. that is a quick look at where we are. waiting for powell is really the headline. butts get a bloomberg first word news update. -- let's get a bloomberg first word news update. -- andu.s. and check china have held high-level talks. larry kudlow says the initial talks were positive. started in spring, then it stopped. hopefully, we can pick up where we left off. ambassador lighthizer and secretary mnuchin are exploring all about. discussions today went constructively. but it's too soon for details. south korean president moon jae-in's warning busines

$3000000000.00 quarterly loss because of the restructuring bank based in frankfurt failed to merge with rival commerzbank in april it's been struggling for years with the decline of its investment operations. russian airlines are no longer flying to georgia which spells problems for the tourism industry there russia's president banned flights following anti russian riots last month state media says it's no longer safe to have a holiday bad problem for us there walker reports from the mountain results of go daddy which is popular with russian tourists our base has been until now. russians will no longer be able to fly direct to georgia from july the 8th. that could take the wind out of the sails of georgia's tourism industry. who guides like gear are trying to stay upbeat. or. if the number of russian tourists go down there are a lot of other visitors from other countries so we're going to just adopt. the flight ban is moscow's response to russian demonstrations in the capital tbilisi protesters were infuriated by georgia's parliament inviting russian politicians to visit demonstrators accuse their govern

. -- ab foods,make commerzbank. the price target average is going to come down, so down by about 17%. analysts basically kicking in here on the recommendation on that trade. keep an eye on that stock as we go towards the opening. let's get a check on the first word news. debra mao is with us. president trump has warned iran on stepping up uranium enrichment. iran says it will restart a reactor if europe fails to offer economic guarantees by july 7. the u.s. is hitting back at huawei's challenge to the law that prevents it from selling to federal agencies. the government says the law aims to protect the national interest. they say it is designed to prevent china from gaining a strategic foothold in the networks of federal agencies. china has accused the british government of interference in the affairs of hong kong. beijing reminding the u.k. that territory is not what it used to be. this escalates the world words after prime minister theresa may said she was shocked by scenes of violence of protesters -- as proteste

can they boost profitability to avoid a merger with commerzbank? >> it's almost philosophical. russell, thank you so much, live out of tokyo. we have put that on the chart for you -- at the end of the day, one metric matters for investors in deutsche bank stock. return in equity. you can see them come up with a specific target, return on tangible equity. the yellow circle is where they want to be by 2022, where we are is basically at zero. that's quite a tall order. we will see. we will be tracking this throughout the day on bloomberg television. in the meantime, markets are really falling. >> we are still trying to figure out why the big moves -- but we are still seeing a selloff in mainland markets, the csi 300 down more than 2%. hang seng down more than 523 points. yes, we had that u.s. job surprise, perhaps that's why the market is shivering, perhaps the fed will have a shallower fed rate cut by the end of the month. i don't know if it comes down to the fed or not. >> that's a hard question to answer. when you look at the bond market, it's not exactly moving the opposite wa

>> just a few months ago, it appeared there was an interest in combining commerzbank with deutsche bank. that did not go through because the numbers did not add up. i suspect that the moment they are keen to get this bank on solid footing because germany's small to medium sized enterprises need that bank financing. it helps to have strong domestic banks. i guess it helps to have strong investment banks, but i don't know if they are going to have a strong investment bank. how do you invest 20,000 jobs cuts globally? they are going to hammer somebody. you know all. speculation is a lot of that will be in the u.s. we need to see because i have seen reports pointing to them cutting the consumer banks in germany a little bit. .e need to see these figures as you say, who takes the hit, which businesses are scaled back, and where do they invest. they told reuters they plan to hire somebody for wealth management. that is a business the bank appears to be investing in. francine: thank you very much. meantime, breaking news out of italy. the 10-year italian bond yield falling below 2%, the first

it will have to be -- tom: what is the immediacy for deutsche bank, commerzbank, and the finance system of germany? banks havehe german traditionally needed higher interest rates and they have been saying they need positive interest rates because their business model relies on this, what they are adjusting like everyone. i have never bought into the story that negative interest rates would completely destroy the german financial system. they are adjusting and buying risky assets, so they are diversifying out of the overreliance on the money. francine: what should deutsche bank become? we talk about deutsche bank every day. it is unclear whether they need to raise capital or how many cost cuts they need to do. wolfgang: they are in talks of restructuring without having to go through a rights issue. deutsche bank is a puzzling financial institution. i believe it should have been broken up a long time ago, emerged and bought, and probably sold to a foreign institution, but that is not possible in germany. francine: it is too late now. wolfgang: i agree. francine: should they get rid of the

he does.hat --commerzbank cummings is congressman cummings attacked our border patrol agent. >> that justifies a racial resentment treat -- suite in tweet in response? >> i don't like what he did but the democrats won't give wonderful resource -- it has the resources they need. there and said those border patrol agents don't care. i know they care. we have to give them the resources and the ability to do their job. >> it is unavoidable that we have a president of the united states who attacks american cities. elijah cummings is one of the most isn't members of the house of representatives. i find it interesting that when we have life expectancies going down, people are struggling. they are struggling in verbal america and struggling in suburban america. our job is to bring people together to improve life for all people. not to have racist president who attacks people because they are african-americans. that is a disgrace and that is why we will defeat this president. the national governors association held its annual summer meeting in celtic city. next, we hear from jody singer. miss

three months ago, it was in merger talks with its german rival, commerzbank — the idea was to create a german big hitter in the banking industry. but that was deemed too risky and that plan fell apart. here's damien mcguinness in berlin. they didn't really manage to keep the business clean enough. they took too many risks, they did not deal with regulations efficiently, there area number of with regulations efficiently, there are a number of court cases and investigations going on including a probe into alleged tax evasion as well as allegations of being negligent when it comes to money—laundering. so all of those things have hit the bank's reputation and balance sheet because we have seen huge court costs and legal fees which the bank is having to deal with. so this is more than just a simple restructuring programme, because it is. it is an entire new direction because they are jettisoning most of the banking business and going back to their roots when they were founded on the 19th century to serve german companies, help german companies export. the question is, is it enough of a