on deutsche bank and the final headlines from deutsche bank. there cfo speaking now, growth assumptions in plan are conservative. we will have to see more on it. we have more coming up. we will do that in the next hour. stay with us. this is bloomberg. ♪ tom: "bloomberg surveillance." not too distant from the wall in london. we have headlines continuing to stream out. we will keep you updated on deutsche bank this morning. the other great story over the weekend, ubs had their fundamental -- head of fundamental strategy, was morgan stanley aggressively reaffirmed their cell call on equities? we are pleased to bring you the morgan stanley chief asset strategist who was knee-deep in the story over the weekend. you have been cautious. how do you get from cautious to a cell on global equities? -- sell on global equities? to put it is time for us our money where our mouth is. really across global equity markets. if i look at how much morgan stanley is expecting equity markets to make over the next 12 months, it is one of the lowest levels of the la

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

high-level departure at deutsche bank. the head of the firm's investment arm marks the first official casualty of the major overhaul at germany's largest lender. we want to get a quick check on the major averages. very strongf a payrolls report this morning. that is bad news for the equity markets as we digest if the fed start to move at all. we are recovering off the lows of the session. this morning we woke up and we were off anywhere from .6% to 1% across the major averages. tech in particular recovering those losses. if we fall that over into our bond conversation, priced lower, yields higher. my eye is on the 10 year which is up nine basis points. a list of yields all across the 10ve, and that means the year moving from an inverted to 18. that is good news for the federal reserve. speaking of, come into my terminal. it's all about the outlook for jay powell and what this means. the is the number of cuts market is pricing in for 2019. in june, we are looking at a solid three cuts. today, clearly reversing some of those

deutsche bank down. they are going through this sweeping mass restructuring plan basically in their history. matt: i have not had a chance to watch "love island." i will give it a shot on netflix if it comes to it. thanks very much for that. european central bank policymakers have plenty of reasons to postpone the stimulus decision to september. andfed's decision next week pending euro area economic data could justify a gradual approach by the ecb. traders are currently pricing a 30% chance of a 10 basis point cut in the deposit rate. joining us now is valentin marinov, head of g10 fx research and strategy at credit agricole. what do you expect from the ecb meeting in frankfurt tomorrow? valentin: we certainly do not expect a cut tomorrow. we think that president draghi will prepare the ground for more easing to come in september in the shape and form of a 10 basis point rate cut, plus an extension of the central bank's qe program. i guess tomorrow's meeting will be important, if nine star mental, and ge

coming up, more on deutsche bank's radical overhaul. this is bloomberg. ♪ viviana: this is "bloomberg daybreak." the saudi arabian budget airline begin the first carrier to officially drop in order for boeing's troubled 737 max 8. it reversed in order to buy as many as 50 of the jet. it will now fly only airbus planes. in march, the plane wasn't grounded -- was grounded after two fatal crashes. broadcom secured funding for its acquisition of financi -- of finance tech. to china now, where the venture capital bloom shows signs of turning into a bust. the value of deals there plunged 75% in the second quarter. the venture boom began in 2014, when alibaba went public in the largest ever ipo. that year, chinese venture deals tripled. that is your bloomberg business flash. alix: thank you so much. the banking bombshell. deutsche bank will undergo one of the most radical overhauls since the financial crisis in its latest turnaround plan. , andll cut 18,000 jobs quit its equity sales and trading business. >> we are taking the decision to ret

what was deutsche bank's exit actually mean? -- what will deutsche bank exit actually mean? morning, everyone, welcome to "bloomberg surveillance," good afternoon from asia. i'm francine lacqua in london. stoxx 600 down. we are expecting more choppy trading on the back of the testimony this week from jay powell. prospects after we had conflicting signals from the world economy. 1.12.ollar coming up, paul the fx calls -- all the fx calls with david bloom. tensions between japan and south korea are threatening to wallop much now depends on whether shinzo abe and moon jae-in can work out a compromise. >> a cycle of measures and countermeasures would not be ideal for both countries but if south korean companies begin experiencing actual damage, the government would have no choice but to respond as necessary. i hope it does not come to that and we urge japan to withdraw its measures. greece primenew minister has a new finance minister. one of the first tasks will be to renegotiate. epstein being held at a correctional center in new york as he awaits a bail hearing on charges of s

. ♪ anna: deutsche bank's equity exits. the german linda revealed plans to shed 18,000 jobs by 2022. cfo says growth will come from a new unit. be theorate banking will greatest growth driver in the franchise as we see it going forward. anna: erdogan derails the rally. the turkish president fires central bank governor, sending the currency 3.5% lower. plus, new democracy prevails. the snap election in greece turn around he will the financial crisis. >> i will deliver on my agenda, an agenda to grow the economy, to create more jobs, but also to make sure the greek people feel safe again. anna: welcome to the market open program this monday morning, less than a half-hour to the start of equity trading. let's look at the features. the good news is bad news mantra is dominating. the end of the rally in everything, ftse futures, tax lookses, and cac futures like it will be weaker in trade. we got the jobs report. stocks stateside and europe falling on that, building in lower expectations for fed rate cuts. that's the big picture

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 dratrained. 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

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

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

deutsche bank is in? fabrizio: the first issue is the there is profitability. essential. the largest bank in the largest european country and trouble is not good news. we all hope this is the final restructuring plan. markets are not fully convinced. we will see out the management and will be able to implement it and get out of it. it is a retrenching for the bank because obviously, some of the global ambitions have been cut out. it is a treat -- retrenching for the european investment bank because the competition has been lost. the largest american banks are coming out as winners of these competitions. francine: does it mean any kind of consolidation effort is currently on hold? fabrizio: i think consolidation is the key for european bank's. interestent which has in the united states and some european countries in terms of consolidation in spain and france, has not happened in germany or italy. it is necessary to have banks that are more profitable. banks have challenges on several fronts. there is regul

, will be leaving deutsche bank. the vote was not supportive of him in the last general meeting of shareholders. the speculation that he might be leaving is now being confirmed by deutsche bank. . not a big surprise. indeed. anna: -- anna: indeed. to put this in context of the big news over deutsche bank the last 24 hours, we are expecting this to be a big weekend for deutsche bank. ceo christian sewing probably pulling the plug to some extent on their u.s. dreams. garth ritchie was copresident and head of corporate investment banking. we will be looking at other names to be joining that list. david: this is speculation now, which we should avoid, but if they are cutting back substantially on investment banking this weekend, the question is what would be left for garth ritchie to do. he's a very big figure, a very executive,nking and he is not going to want to preside over a skeleton crew. anna: just how skeletal it becomes is the question over the weekend. investment bank head garth ritchie to leave deutsche bank. c

bank per se, but when i was on wall street back in the early 2000s, deutsche bank was always in the lead tables, most well known for its fic trading >> which they're keeping. >> which they are keeping, but now there seems as though there will be more of a focus on servicing corporate clients on more banking-related products there. is this a plan that in your mind will work or is that margin pressure going to be there in the future because they're ratcheting back from some of the riskier businesses per se? >> great question, dom i make three points as to whether or not this will work or not. the first we've already discussed, their strength any way within trading is in the areas they're keeping with the fixed income or fic business as you say. so that's a good thing and as you also said, that supports some of the other successful parts of the business the second part is that they've been drip feeding these sorts of changes for a long time. so, if they are going to lose non-corporate trading clients like hedge funds, they may well have done that already whether or not it's because the

why are deutsche bank doing this? this is a really spectacular reversal of a very ambitious and aggressive strategy. it started in 1999 when they bought the us investment bank bankers trust and were determined to go head—to—head with the wall street giants. for about a decade it looked like it was working and then came the crash and in 2008, whereas the american investment banks cut back very quickly, the government forced them to do it, deutsche bank was too slow, too little, too late, and for the last several years they have been lingering on, dying a rather painful death, paying the consequence for not accepting tough medicine in the deep days of the crisis. so is it as simple as that? they didn't react in the correct way after the crash? that's the fact of it. it is never a simple issue. the wall street investment banks have a vice —like grip on the whole business of securities trading. trying to break into them is a really tough challenge. i wouldn't be hypercritical of the deutsche management, it was just

--tsche bank glow very deutsche bank delivering its biggest turnaround effort yet. it will exit its equities business and take a restructuring charge of 7.4 billion euros. 3 billion of it will be in the second quarter. here to discuss all of this is bloomberg opinion's marcus ashworth. what do you make of the market reaction this afternoon? initially the stock popped. now it is dropping pretty hard. marcus: i think most analysts have worked out that there is nothing fundamentally changed to their business plan, which is unfortunately not good enough. there's no real cut to the core business in europe, which is still incredibly weak, and not making any money. they are not likely to make any money, either. they are not guaranteed success in boring old, box standard banking. is in recession or, at best, flatlining. the reality is deutsche bank has got a lot more to go to turning the corner, i'm afraid. vonnie: can deutsche bank withstand all sorts of price action in its shares and its bonds while this restructuring is going on, or does it need to stem losses too? marcu

first up, deutsche buck -- deutsche bank gets tangled in 1mdb probe. then, changing how musk talks tesla. a top tesla investor says musk should change how he talks about the company in public. good luck with that. joining us now is sonali basak, bloomberg's investment banking reporter. i can't believe we are talking about deutsche bank again, but in a different way. sonali: who would have thought? what happened is the banker at goldman who pleaded guilty in regards to 1mdb guided authorities to one of his employees who moved over to deutsche bank. they are looking at whether deutsche bank violated any money laundering or foreign corruption laws in regards to fundraising for the malaysian fund. david: they haven't accused anybody, neither deutsche bank nor the former goldman employee. at the same time, this is not good news for any bank, but deutsche bank is going through so much turmoil. sonali: remember, deutsche bank has been in the spotlight of regulators including the federal reserve, looking at their bank in the -- looking at their role in the dan

>> deutsche bank is a special case. obviously they are looking to dramatically transform their business. i'm looking at the likes of ubs. cutting one billion euros in costs in europe as a way to try to boost earnings. that is the example i talked about in terms of banks that are looking to reduce their cost as a way to get eps growth up. deutsche bank is looking to transform their business. it's not about trimming. nejra: will the transformation work? i'm asking the same question. because it is such a huge revamp , with everything you've said in terms of focusing on costs not being enough, the challenge remains. even though they are cutting the workforce, exiting the equities business, there will be no dividends this year. will that be enough to list the -- with the stock -- lift the stock? doesn't lie with management. it lies with mario draghi, the ecb and their stance going forward. will they deteriorate interest rates for deposits by european banks with the central bank? will they furthering gauge quantitative easing

at one point deutsche bank shares were up 4%. now higher than 1.5 percentage points in the green up .1 percentage point. the picture across the board is pretty muted in contrast to the weaker session we had in asian markets overnight with some of the majors there trading lower to the tune of 1%. this after a stronger than expected u.s. payrolls print on friday that allowed some investors to pair back some of their expectations for how much the feds will cut at the end of july and their upcoming meeting. 100% probability of 25 basis point price is cut in and some people were hoping more. it had a negative impact on asian equities overnight you can see in europe the mood is little bit better but still we're trading around the flat line as well switching to foreign exchange, though to see what the picture is like there. and here you can see that euros trading again little firmer around 112.30 is where we're at. all eyes on what happens to the u.s. dollar. we'll have testimony from the fed chair powell later on this week some indicat

what deutsche bank cousin said today is exactly where the axe will fall. we know thatjobs are expected to go by 2022 so there could be quite a spread out timeframe, but people have been expecting for the operations in the us, wall street and the city of london which are both quite heavy on investment banking could take quite a big hit but we haven't had that confirmed and we are expecting more details in the coming days. do we ta ke details in the coming days. do we take this as a symptom of wider problems in the banking sector as a whole or is this just deutsche bank failing to keep up with the competition? it is certainly a symptom of deutsche bank failing to keep up with the competition in investment banking. it really has struggled to compete with the big american giants which are dominant 110w american giants which are dominant now and some are seeing this as a sign that it is throwing in the towel with investment banking in a way. some analysts i spoke to don't necessarily think this is the answer to all deutsche bank's wider problems they say it mig

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

you can see just how bad deutsche bank is doing. all weekend, we will monitor what kind of job cuts we see. been out inberg has front with this reporting. we have yet to hear about restructuring from christian sewing. let's get a first word news with debra mao in hong kong. debra: thousands of spectators packed the mall to watch president trump's fourth of july speech. he praised the u.s. military and american people but put himself front and center of the independence day celebration. the event included tanks, flyovers by jets, and culminating in an extended fireworks display. president trump: we celebrate our history, people, and the heroes who proudly defend our flag. the brave men and women of the united states military. together, we are part of one of the greatest stories ever told. the story of america. debra: british special forces seized a supertanker off gibraltar carrying iranian oil to syria in violation of european and u.s. sanctions. iran declared it illegal, summoning the british ambassador to explain the action. madri

deutsche bank swings the ax. the ceo's new plan reshapes the business and slashes thousands of jobs. >> obviously we have taken the decision to retrench and step back. >> i think the big issue is capital. it continues to be capital. >> turning around all of this while balancing cuts is something that continues to be a question mark. rosalind: the federal reserve also contemplates cuts. markets get a slew of clues to the right path. >> wall street believing we are going to get a rate cut. >> the big surprise would be if they did nothing. >> we have a lot of time left before the meeting. we will see what happens. rosalind: protesters keep pushing for concessions in hong kong. the u.k. parliament takes a stand against a no-deal brexit. >> parliament saying clearly we will not take kindly if you try and bypass us. rosalind: ibm and red hat seal one of the biggest tech deals ever. >> we will help extend their reach into 175 countries. rosalind: plus, kkr's henry mcvey says recession may be coming, but investors should

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

deutsche 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 they 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

do you work for deutsche bank? i'm sorry, i can't talk to you. deutsche bank is one of the biggest employers here in london's financial district. the company won't say how many of its staff here are at risk of losing theirjobs. it is likely to be a significant number. but the company does say that london will remain a major component of its international business. it affects not only london but also the us, asia and also germany. there is no concentration in one region. i can assure you that london, also from a size point of view, will remain a critical part of deutsche bank's future setup. so what went wrong? experts say the company was simply too ambitious and did not cut back fast enough when the financial crisis erupted. whereas the american investment banks cut back very quickly, their government. to do it, deutsche bank was really too slow, too little, too late. —— the american government. them to do it. they have been lingering on and dying of other painful deaths in the last views, paying the consequences for not accepting tough medic

wise deutsche bank in the crosshairs? -- why is deutsche bank in the crosshairs? >> you do not want to be in this limelight. employeegoldman sachs went to work for deutsche bank, and he was involved in the matter. not beenbank has accused of wrongdoing at this stage. some of the findings of also say they were one, and they see a limited role here. publicitythe kind of the ceo wants at this stage. he said he put the bulk of the legal issues behind it. he has used the word stabilized, and so this reminder of the history is the last thing he wants at the moment. anna: what about these other new revelations surrounding epstein? what was the lender's connection with epstein? is one of the most interesting things. we do not know a lot about how epstein's finance, we know about his spending and visible assets like houses and cars, but we do not know about what is behind it. right, nothing with theh operating bank, but it is an unwelcome reminder of the clients deutsche bank has had. they came over flack with how they treated donald trump before he was president. it is a

this is what deutsche bank is now. james: it will be the greatest growth driver in a franchise as we see it gone forward, especially in today's interest rate environment. that may change in the future, but for now, we see great growth opportunities that have existed for several years and we have not been able to participate as much as we should have applied have. we see growth -- we should have or could have. we see growth in the consumer banking franchise as well as for italy and spain. asset management has recovered after a difficult year in 2018 and is on a growth trajectory. we see underlying growth in our franchises. we are making the decision to step back from elements of our global markets franchise. in particular, trading. that is a significant step in reorganizing the bank. now is guying us johnson, who conducted that interview. good to see you this morning. the question is, the fifth attempt at turning the anchor around, is it going to work this time? guy: that is the big question everyone is trying to figure

deutsche bank swings the ax. the ceo's new plan reshapes the business and slashes thousands of jobs. >> obviously we have taken the decision to retrench and step back. i think the big issue is capital. it continues to be capital. >> turning around all of this while balancing cuts is something that continues to be a question mark. rosalind: the federal reserve also contemplates cuts. a slew of clues to the right path. >> wall street believing we are going to get a rate cut. >> the big surprise would be if they did nothing. >> we have a lot of time left before the meeting. we will see what happens. rosalind: protesters keep pushing for concessions in hong kong. the u.k. parliament takes a stand against a no-deal brexit. >> parliament saying clearly we will not take kindly if you try and bypass us. rosalind: ibm and red hat seal one of the biggest tech deals ever. >> we will help extend their reach into 175 countries. rosalind: close henry mcveigh says recession may be coming, but investors should not fear the worst

there are about 8000 uk deutsche bank staff. it's really quite a lot of people there who are facing uncertainty there now. we have heard it's sort of a restart that the business, an opportunity to refocus on what deutsche bank does best. you can take that positive approach, absolutely, but at the same time, what is clear is that deutsche bank clearly had to do something. it was falling further and further behind in the investment banking business compared to some of the wall street banks like goldman sachs and jpmorgan. what is also clear as this retreat from the investment banking business is only going to help cement the dominance of those wall street banks. 0k, nina nanji, thank you very much indeed for joining nanji, thank you very much indeed forjoining us. greece's leftist prime minister, alexis tsipras, has conceded defeat in the country's snap general election. with the results still coming in, the centre—right opposition party, new democracy, is closing in on an absolute majority in parliament. mr tsipras's syriza par

deutsche 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

what was deutsche bank's exit actually mean? -- what will deutsche bank exit actually mean? morning, everyone, welcome to "blooer

let's talk now about the deutsche bank story. christian sewing's plans for deutsche bank, the ceo says the company is going to return to its roots. it is going to exit its equity trading business to contribute to the bank's workforce being slashed by 1/5. the market reaction today, shares falling in frankfurt come the some analysts saying targets of the plan will be hard to achieve. the company cfo had .o say sonali basak joins us now. deutsche bank wants to return to its core, but getting there is going to be a difficult journey. sonali: even with the execution risk we are seeing here, the goal is i 2022, 8% return on tangible common equity. that is less than barclays and almost half of jp morgan. people haveplan, questions about how revenue is going to grow. costs are going to be exorbitant for a year. how are they going to compete with large global banks? vonnie: typically when someone undertakes massive restructuring like this, obviously there has been tinkering at deutsche bank, but typically the stock goes up, yet we still

the rating for deutsche bank? laurie: a strengthening operating environment and rates going up would definitely be a boost for the plan. are done onmates the basis that that does not happen. and a deutsche's would be able to achieve about a 7% return on tangible equity by 2022. so it is still below what they are trying to achieve at 8%. francine: fabulous, thanks so much. associate managing director at moody's and erik from unicredit stays with us. as trade talks resume, south korea's president warns a business leaders to dig in for an extended trade battle with japan. we talk trade. this is bloomberg. ♪ francine: this is "bloomberg: surveillance." the u.s. and china have held their first talks since president trump and xi jinping called a truce. top trade officials spoke on the phone. larry kudlow says the initial talks were positive. let's get to another front in the trade war. president moon has warned the country's top business leaders they may have to dig in for an extended trade battle after japan lifted e

joe: coming up, the trouble at deutsche bank deepens. a hedge fund giant that deutsche bank had counted as one of its clients has reportedly been pulling money from the bank for months. this is bloomberg. ♪ romaine: troubles are mounting at deutsche bank. renaissance technologies, the hedge fund giant that deutsche bank had counted as one of its largest clients, has been taking out money over the past few months. this as the investment banking head is said to depart, marking the first official casualty of an overhaul. here with more is bloomberg's ri. let's start with this renaissance technologies story. i assumed that rentech would be one of their most premier clients. the fact that they are pulling money seems to say a lot. >> if you are a giant hedge fund and you are seeing all the news coming out of deutsche bank, if you are not thinking about doing this, that would be a surprise. rentech is one of the largest clients for deutsche bank. prime brokerage falls within the equities division. it makes sense that they've been thinking ab

deutsche bank a dramatic overhaul of its operations at a turnaround. >> a banking bombshell. deutsche bank planning to cut 20% of its workforce. 18,000 people. shutting down its equity sales and trading business. >> the losses are already starting. i suspect many of them will come in london and many will come in the united states as well. the focus is about refocusing this business back on the german side of what is happening to become a corporate bank, less of an investment bank. >> is that enough? what is the reaction? >> it is quite dramatic, 18,000 jobs, the biggest restructuring seen. the problem is there is a lot of risk and it is not only going to be a costly restructuring, finding enough revenue to offset that. they want to keep asset management and all of those areas are very competitive businesses. turning around all of this is something that is still a question mark. >> deutsche bank, tumbling in new york, 6.1%, 5.9% in the primary market. some investors are celebrating the move. 3% of the lender. >> what they are taking the bank back to is its history of being one

deutsche 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 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 city. 2 ation happening in the economy so you know again i really believe that with deutsche bank it's really too little too late with them and as you know with deutsche bank since 2016 they've been suffering tremendous regulatory scrutiny in 2016 they paid 40 well they paid $12.00 mil $1000000000.00 fine along with credit suisse for basically selling toxic debt if you move forward to 2017 the federal reserve fund them $41000000000.00 fo

jason: deutsche bank one back to basics. carol: we sit down with ups ceo to talk about the ever-growing need for speed. jason: the cover story is a powerful one. joel weber is here. what a fascinating read. it was not what we were expecting. >> this was a culmination of a year-long project, with a writer who was going to travel around the world and wanted to come to us with something special. we wanted to come up with an amazing idea to hear from laborers, working-class people who most of us would never hear from. carol: it is a global story that took a lot of time and a lot of reporters and translators. >> we basically i'm a as she went around the world, she would look for people that she thought would embody the spirit of the local community. then the beauty of this work is that it captures their voice. we hear from them directly in their voice. it is not reporting in a traditional sense, it is more like being told to the mark and you get to hear from people working in amazon factories in europe as a syrian refugee, or in

deutsche bank trying to compete with its american rivals. it seems deutsche has succumbed to the realization they cannot in this money-losing exercise. it is finally drawing to a close. they have laid out 18,000 job losses. how much will they be able to follow through on? that has been a question in the past. it will remains to be seen. what people are reflecting on and saying is this it is a completely necessary operation. it is a sad day, but necessary if the bank wants to be profitable. it is gettingys leaner. it says it will focus more on european corporate clients. is there a possibility that could backfire? could backfire. it is necessary. they are focusing on the activities that are profitable. the european economy is not added strongest, but at some point it will be. repair the roof while the rain is still coming will provide longer-term benefits. we have more years of difficulties and challenges ahead. there are no guarantees with regard to this. it is focusing on the core business, the part of the business making its money. people

deutsche bank, it doesn't end, does it? nejra: exactly. more bad news for deutsche bank. we've learned the u.s. debt -- justice department investigating the lender as part of an expanded probe. joining us is sophie cameroon. great to have you with us. -- sophie, rudin. yearsafter spending focusing on goldman, u.s. authorities are widening that net. a former goldman executive who later worked at deutsche bank. it's important to note that they are not accusing deutsche bank or the individual of wrongdoing but the increased trying to determine if they may have violated anti-money laundering laws. it raised 1.2 mu dollars back in 2014. only about 20% of what goldman raised. manus: this isn't the first time deutsche bank has been d, is it?d about1mb >> georgia has come under the radar before. -- deutsche bank has come under the radar before. it's been referred to as being misled. the bank has previously seen queries from singapore authorities. on the back of this latest news, intsche bank shares shrank after hours trading in europe. manus: thanks for the latest on the investig

deutsche 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

certainly for deutsche bank. we get into some of the details, -- investors were not impressed, and they haven't been impressed for some time. >> i think this is why it has been so difficult now to gain investor enthusiasm for this. this is a bank that since the financial crisis has basically just drifted. tweaks around the edges, scaled back there, but tried to keep optionality, and it cost too much and was a drag on the overall growth. not only didn't it lose confidence of investors, but regulators were not comfortable either. the bank has been involved in a host of scandals from rate rigging, to laundering funds, and all of that added to a lack of credibility in the company to be about to thrive. carol: we are talking $18 billion in fines that deutsche bank has paid for numerous things that they have done wrong. what is interesting about the deutsche bank story is that it has been years in the making. correct? elisa: yes, absolutely. what happened is after the financial crisis there has been a secular shift in

tom: matthew luzzetti is with deutsche bank. jon ferro in conversation with lawrence kudlow after the jobs report. we are fair and balanced. we show prime minister johnson. who do we show now, prime minister who? , appearing athunt an event in darlington. boris johnson saying we need a new brexit deal, still hovering the threat of no deal. this is bloomberg. ♪ ♪ on the news about the united kingdom -- , foreignremy hunt secretary speaking at a hustings event, boris johnson as well speaking at this event in darlington. comments around brexit, prospects of a no deal. the location they are speaking in, darlington, this is an area with a strong industrial history. market town, attractive looking, but one that could be described as fairly deprived in the north of england. the politics of our economics in america, how about single best chart with matthew luzzetti of deutsche bank? carl riccadonna shows up. he ate more ice cream than i did yesterday. we unemployment rate, down go, and we see those drops. they are normal out of a re

because for so long investment banking was the key revenue driver of deutsche bank they were also kind of proud to be the only german bank who has a large footprint everywhere also in investment banking and i think that was one of the biggest reasons behind that sort of reluctance to really address the problem. but by now i think everybody is very much awake and knows that there's no alternative back to you. >> thank you so much >>> coming up on the show, the deadlock at the eu continues as leaders struggle to agree on who should take the block's top jobs we'll be live in brussels next ♪ did you know you can save money by using dish soap to clean grease on more than dishes? try dawn ultra. dawn is for more than just dishes. with 3x more grease cleaning power per drop, it tackles tough grease on a variety of surfaces. try dawn ultra. ♪ >>> welcome back to "street signs" i'm willem marx in london and these are your headlines this monday morning. european tech stocks soar to the highest level in a year after presidents trump and xi called a time-out on fresh tear i haves. >> one of th

bank, very strong opinions this morning on the street of deutsche bank. stay with us as we consider the images of hong kong. ♪ francine: we talked a little bit about treasuries, the call from jpmorgan. ,e talked about dollar strength stabilizing or weakening against certain currencies. we want to ask about euro and in specific whether the euro trend shifts depending on who becomes ecb president? there are some questions of if they have the tools for the next downturn. i think you need an ecb president who follows in the footsteps of mario draghi and someone who should be skilled in thinking of new ways to implement and craft monetary policy. if you have a region where balance sheets are negative, inflation is undershooting the central-bank target, you question of how they get back to their objective. you have to be concerned if the next ecb president is someone who does not have a lot of experience in monetary policy. francine: do they need monetary policy, or do they need to be a good politician? assuming they cannot do anything terribly new, they have

jason: deutsche bank one back to basics. with ups ceo down to talk about the ever-growing leap -- need for speed. jason: the cover story is a powerful one. joel weber is here. what a fascinating read. it was not what we were expecting. >> this was a culmination of a a writer project, with who was going to travel around the world and wanted to come to us with something special. up with ano come amazing idea to hear from laborers, working-class people who most of us would never hear from. carol: it is a global story that took a lot of time and a lot of reporters and translators. i'm a as shely went around the world, she would look for people that she thought would embody the spirit of the local community. isn the beauty of this work that it captures their voice. we hear from them directly in their voice. it is not reporting in a traditional sense, it is more like being told to the mark and you get to hear from people working in amazon factories in europe as a syrian refugee, or in alec tronics -- in electronics in asia. there

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 to offer any hope of recovery through synergies current c.e.o. christian saving decided it was time to cut dortch of bank back down to a more modest size. and moving out of europe the game farming industry in south africa has 4 pillars live auctions of game trophy hunting eco tourism and animal products the whole sector is now worth around one and a half $1000000000.00 a year almost half of which comes from that trophy hunting pillar and what critics call the practice crawl and unethical many locals depend on the income and insist they're doing business in a sustainable fashion. yes but less than 30 minutes until nightfall south african professional hunter tony de braun on his american fly and are looking for a gold

deutsche 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 dumb 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 $1000000000.00. fine along with credit suisse for basically selling toxic debt if you move forward to 2017 the federal reserve fund them $41000000000.00

deutsche downsizing. why one of the world's biggest banks is slashing its workforce by 20%. all change! a new government in greece after a snap election, but what are the economic challenges facing incoming prime minister kyriakos mitsotakis? and on the markets asian stocks are lower as geopolitical concerns play on investors minds and trade tracks a negative end to last week on wall street asian stocks are lower and geopolitical uncertainty are playing on investors' mines. —— minds pulled on investors' mines. —— minds —— minds. thousands of staff at deutsche bank are worried about their jobs, after confirmation that up to 18,000 posts worldwide are to be cut over three years. it's part of a radical reorganisation of the german lender which is shrinking its investment banking business. it hasn't said where jobs will be lost, but with almost 8,000 staff, london is the home to its biggest trading operation. our business correspondent katy austin explains why the cuts are being made. 0nafairly long on a fairly long list of long—term problems, the german backhand b

the head of deutsche bank is leaving. his departure was announced days before overhaul is expected to be unveiled. the fort of doors will decide on a restructuring plan that includes job cuts. bloomberg lacked those cuts will go beyond equities and interest rate derivatives trading. bill klein was -- died in a helicopter accident. 600 people also died. he was the founder of foresight energy. he was 60 years old. global news 24 hours a day, on-air at tictoc on twitter, powered by more than 2700 journalists and analysts, in over 120 countries. i am viviana rotondo, this is bloomberg. pressure,s under treasury yields rising. the dollar pushing higher and well. the monthly jobs report clouding the case for the federal reserve rate cut in july. this is bloomberg. ♪ guy: i am guy johnson. this is bloomberg markets. quite a reaction from the payroll report. badhe payrolls number is news for stocks. markets think the fed may not cut as much as we thought. seeing a pullback. the biggest overseas by you in europe. in the u.s., te

as deutsche bank takes measures to restructure. did it come too far too fast, and are we about to see a stock rewind guy? >> number one -- >> karen's back, you're -- everybody's back now >> gang's all here >> all here. >> and the matching outfit - >> matchy-matchy >> cute. >> what's wrong, dan i haven't seen you in a month and you're already discounting me - >> no, i'm loving the syracuse orange way to represent, people >> listen, i think stocks have gone too far, too fast, absolutely i thought that, you know, probably 250, 200 dow points ago, maybe 75 s&p handles to go. with that said, you know, the morgan stanley, thrive beentive. i think they're going to be right. the thing on the list that concerns me the most believe it or not is deutsche bank and european banks in general. i do think the market's banking way too much on the federal reserve that is now -- people think the fed controls the market i think the market controls the fed. but i think we're at a level now where if you've enjoyed these gains, you got to be taking money