the cuts at commerzbank are working. guy: it is interesting considering how much pressure deutsche bank is under at the moment. let's talk about what is happening in the consumer space. let's talk about what is happening with pernell. is helpingor liquors which is boosting its growth outlook for this year. matt: it is pretty disturbing looking at these pictures so early in the morning. and amazing how much jamison whiskey is drunk in the u.s. there must be a lot of irish people there. let's look at totale. one of the things investors have been clamoring for is more money back in the form of dividends and buybacks. are they going to up that? is one of the last major oil companies to report reported it they plans to boost its dividend payout by 10% over the next three years. also a $5 billion by back. it is doing everything to share its loads of cash with shareholders to make its investors happy. this is likely to be an optimistic stock today. guy: thank you. you want to find all the great words they do on the stocks team

it's a big day for the banks socgen disappointed and commerzbank also, q4 numbers were down. nonetheless stocks are up. it it wasn't as bad as the market was expecting banks up by 0.3% basic resources down by 1.4% total out with their numbers as well >>> let's look at the individual bourses. they're under water. the dax is the rank underperformer today up a by 0.7% ftse 100 off by 0.4, and similar losses for the ftse mib and the cac, off by 0.3% or 15 points. >>> let's take it to asia. the yuan is on track for its worst day since the chinese central bank de-valued the currency back in the summer of 2015 it started sinking early in the session amid talk that policymakers will step in to soften gains the loss accelerated on the back of the latest chinese trade data chinese trade data smashed expectations with imports surging 37% in january compared to a reuters forecast of just under 10%. the spike in the figures has been attributed to stockpiling ahead of the new year. coal imports rose to the highest level since january 2014 amid colder weather across the country. chinese exp

i know it is hurting commerzbank than most european banks. stephan: in civil terms, we stopped the burden for corporate clients in adjusting the deposit ratio. in the private client segment, we will see a favorable deposits do we have, it is about 130 million for 2017. matt: when do you expect that to turn around? i was expecting -- i was speaking to board members. looks like they may and their quantitative easing that purchases of bonds but they are still going to be in negative rates. when the you expected to turn around? stephan: on the moore company specific part, we expect the burden which was 130 for 2017 to be below $100 million in 2018 and without any changes to the inches rate environment we have. what do we see in expect? we have seen a little bit of a move on the long end of the curve. i will -- our expectation is we will see no movement at the short end of the curve before 2018 and parts of 2019. matt: do you expect any inflation? are you causing any inflation? stephan: if you look around the germany, you have seen some weights in

signs that commerzbank , reportingtimes better revenues and profits for the fourth quarter. the commerzbank ceo is refocusing his business on retail clients, away from volatile trading. t-mobile, forecasting another year of slowing subscriber growth. the carrier says that it will add up to 3 million subscribers this year after adding 3.6 million last year. t-mobile moving into another market, acquiring streaming video service. and we will be speaking with this seat -- t-mobile ceo in the next hour. bloombergur latest business flash. taking a quick look at markets, now, they are picking up steam, but not for the better. for the worst, in fact. the dow is now down 1.5 percent. the s&p 500 is down 1.2%. ,attel, nielsen, ralph lauren seems that apparel companies and retailers are not doing so well today. the nasdaq is also lower. this is bloomberg. this is bloomberg. ♪ mark: 30 minutes left in the trading day in europe, today. i'm a mark barton. vonnie: and in new york, i'm vonnie quinn. this is "the european close on burp -- on bloomberg markets." mark: top stories we're cove

. >> shares in commerzbank are trading to the upside this morning after the group reported fourth-quarter net income of 90 million euros. that's ahead of analyst estimates. the german lender may resume dividend payments for the first time in three years bi. >> indeed, we had a pretty successful 2017 as the first year on our way to rebuild commerzbank. we have been pretty successful there. we have over achieved some of our targets which gives us confidence to resume dividend payments in 2018. >> in 2018, by the end of the year, you will resume dividend payments. >> it is formally decided by our agm. they will decide finally in spring of next year. >> bp has reported adjusted net profits of $2.11 billion in the fourth quarter, ahead of estimates. an increase in net debt. 's third-largest oil company also tightened its capital spending targets this year. how do you manage that? >> we have a framework that we work within. we were up around 29% and now we are down to about 27%. gearing feels fine. we are heading in the right direction. to your point, we will stay very disciplined within the ca

goldman sachs has submitted a final bid for commerzbank's unit that houses the etf business. the german bank with -- but the unit up for sale to focus more on retail and corporate lending. $465 millionrated in revenue last year. chicago has reached an eight and toalf -- $8.5 billion deal expand o'hare international airport. however, american airlines says it will not support the revamped due to a secret vision that awards united additional gates. more coming up, live from new york. ♪ abigail: it is time for charting futures, we dive into the futures market through the charts. we are taking a look at whea t. , more than 4%, it's best day of the year even as the dollar hold steady. typically arising dollar would hurt commodities, but that is not the case. we see this five day gain of about 5%. a few factors at work, including a u.s. drought in the wheat belt. the u.s. is exporting about 54% of total production. the technicals may just a jot -- i just but the buying action will continue and even strengthen. v 485.s g#bt this chart that we wanted to look at with wheat is a long

. >> shares in commerzbank are trading to the upside this morning after the group reported fourth-quarter net income of 90 million euros. that is ahead of analyst estimates. the german lenders say it may review payments for the first time in three years. >> indeed, we had a pretty successful 2017 as the first year on our way to rebuild commerzbank. according to our strategy for .0. 4.0.rategy we have been pretty successful there. we have overachieved some of our targets which gives us confidence to resume dividend payments in 2018. >> by the end of the year, you will resume dividend payments? >> it is formally decided by our agm. they will decide finally spring of next year. >> three p has reported adjusted net profits of $2.11 billion in the fourth quarter, ahead of estimates. but with an increase in net debt. europe's third-largest oil company has also tightened its capital spending targets this year. it continues to rise. how do you manage that? >> we have a framework that we work within. 20% and 30% gearing. we were up around 29% and now we are down to about 27%. it is heading in the

the cross asset strategists at commerzbank. max, let me ask what you expect to happen this morning as you get a disappointing report from deutsche bank. there is red across the industry groups. what do you expect from equity trading? the last we have seen three days is a mix of sentiment and technical driven setback. it is natural to see that after such a strong start to the year and a relatively strong finish of last year. you have seen some people taking chips off the table. i wouldn't be surprised to see that continuing today. will that become a major setback? i'm not sure because for the u.s. earnings season, it is too strong, i think. the: when do we focusing on -- when we focus in on the moves today, the jobs report, deutsche bank, how is the market positioning for the jobs report? are we waiting to be impressed or disappointed? plays don't think it major, but for the dollar, it doesn't play much of a role on a headline number. what does play a role nowadays is the average hourly earnings. if they surprised at the downsid

let's stick with the banking sector, commerzbank has their numbers hitting the bloomberg as we speak. for her operating profit coming in at 159 million euros. profit.our operating the net income for the fourth quarter, 90 million. the comparison with estimates compiled by the company, 64 million. fourth-quarter net income 90 million euros versus an estimate of 64 million. giving us all kinds of updates around provision for loan losses. 251 million euros. bankinga fascinating story. another turnaround story, looking for confirmation of how that turnaround is going and comparisons with deutsche bank also in the mix. deutsche bank posting their third consecutive full-year loss. interesting to see the net income for the fourth quarter coming through from the business over at commerzbank. the cfo joins us for an exclusive interview at 11:00 a.m. u.k. time. we will get a lot more earnings and we will bring those to you as we get them. let's talk about what's going on in the markets. it has been another fascinating 24 hours. sayssci's asia-pacific 4.6% higher, futures have been all over the

decade but the fourth quarter for italian bank unicredit was the best q four in ten years the german commerzbank while below last year's results still beat expectations and french bank society general soc gen also reported better than predicted results even though revenues were somewhat down to. the bank of england citing stronger than anticipated growth is has signaled that the bank is keen to raise rates at a swifter pace than expected just months ago the move appears to be in accord with where the us federal reserve is headed this year. and justin trudeau the young canadian prime minister has been in san francisco promoting canada as a tech and making pitches to tech companies including a direct plea to amazon's jeff bezos to locate the new m is on ed borders dubbed h q two in canada last month and was on narrowed the possible locations of h q two to twenty including toronto which is the only city outside of the us on the list. and we now go to toronto that city and alex mahela that should talk about the economics of the olympics and and alex before we get started any thoughts on that story a

decade but the fourth quarter for italian bank unicredit was the best q four in ten years the german commerzbank while below last year's results still beat expectations and french bank society general soc gen also reported better than predicted results even though revenues were somewhat down. the bank of england citing stronger than anticipated growth is has signaled that the bank is keen to raise rates at a swifter pace than expected just months ago the move appears to be in accord with where the us federal reserve is headed this year. and justin trudeau the young canadian prime minister has been in san francisco promoting canada as a tech and making pitches to tech companies including a direct plea to amazon's jeff bezos to locate the new m is on ed borders dubbed h q two in canada last month and was on narrowed the possible locations of h q two to twenty including toronto which is the only city outside of the u.s. on the list. and we now go to toronto that city and alex mahela that should talk about the economics of the olympics and and alex before we get started any thoughts on that story ab

decade but the fourth quarter for italian bank unicredit was the best q four in ten years the german commerzbank while below last year's results still beat expectations and french bank society general soc gen also reported better than predicted results even though revenues were somewhat down to. the bank of england citing stronger than anticipated growth is has signaled that the bank is keen to raise rates at a swifter pace than expected just months ago the move appears to be in accord with where the us federal reserve is headed this year. and justin trudeau the young canadian prime minister has been in san francisco promoting canada as a tech and making pitches to tech companies including a direct plea to amazon's jeff bezos to locate the new m is on ed borders dubbed h q two in canada last month and was on narrowed the possible locations of a q two to twenty including toronto which is the only city outside of the us on the list. and we now go to toronto that city and alex mahela that should talk about the economics of the olympics and and alex before we get started any thoughts on that story a

commerzbank, as well as another one with reinstated dividends, are they right to be shorting italian banks now? have twon: you interesting points. one, the dividend. the other, italy. italy, specifically there is an election coming up in a matter of weeks. at the moment the polls indicate that there is no clear party likely to have a majority. indeed, it is likely that there is not even a coalition group that will have a party. in which case, it is conceivable that the five that are pulling the highest could be invited to try to form a government. i don't think the market is prepared for that. the northern league, i think those headlines would be uncomfortable. in the short-term, i have sympathy with some concern around italy and europe. however, in on the dividend point i think you make it interesting, those companies raising the dividend. what we look at over the next couple of years, current european return is around 120 basis points. by 2019 we think that is about 140. on the basis of that, given a midut somewhere in the 50's, we are looking at a comfortable 5.5% dividend yield.

. >> indeed, we had a pretty successful 2017 as the first year on our way to rebirth -- to rebuild commerzbank. we have been pretty successful there. -- overover tea achieved some of our targets which gives us confidence to resume dividend payments in 2018. >> by the end of the year, you will resume dividend payments. >> it is formally decided by our agm. in spring of next year. p has reported adjusted net profits of 2.1 one billion dollars in the fourth quarter, i had of estimates. an increase in net debt. it also tightened its capital spending targets this year. how do you manage that? >> we have a framework that we work within. we were up around 29% and now we are down to about 27%. we are heading in the right direction. we will stay, buried disciplined within the capital framework that we have. we have generated a lot of cash this year. i think we are on the right track. rio tinto shares. positive territory today. a annual profit is at three-year high. and commodity prices have helped that. the world's second-biggest minor raised its dividend payments. total cash returns to investors in 20

of growth since the second quarter of 2011 i'm happy to say we're joined by the chief economist at commerzbank. i want to ask about gdp growth and potential spending the spd won a huge number of concessions which could, according to your bank, lead to a bit of a deficit >> yeah. as long as the german economy continues to grow at such strong rates, and i expect this to continue for two, three years, i think that -- i do not expect a deficit. if something happens and growth slows down, then we are quickly back in deficit territory. the new government will spend all the extra tax revenues for consumption. >> perhaps mr. schulz made a miscalculation, but it seems like the spd won a lot of concessions out of these coalition discussions. has that surprised you >> not really. we know chancellor merkel is conservative mr. shchulz from the social democrats at the evening of the september election said in public mrs. merkel will give everything to be re-elect eed a chancellor, so they pushed through a lot. two-thirds of the grand coalition is on economic policy term s determined by the social democrats,

commerzbank, capital is the good news. for those banks, there is a really a theme. .- there isn't really a theme the go what happened with unicredit? -- david: what happened with [indiscernible] the first thing she commented on. we are waiting for the call. we'll have a better idea. that is a bright spot. an externally strong bright spot. david: is this a rough day for deutsche bank, because it seems like it is getting left behind after it had a disappointing earnings reports and these other banks are going out of it. wasthan: for them, trading the biggest appointment. the biggest disappointment was cost. banks that have been disappointing, ing, abm where we are expected more good news about the capital rules now. what payouts are you going to give us. they are still shirking on that. commerzbank is making noises again that they will restart their dividend in 2019. i suspect is part of the reason for the positivity. david: jonathan, thank you so much. alix: talking about positivity, that is with the boe is feeling about br

commerzbank economist say they are creating a systemic risk. thets will be sold off in future preventing any buying opportunities. anna: this leads the wider risk story. will this have any impact on the annual meeting in march? tom: it puts it squarely in people's the national congress kicking off in march. we expect new officials for thes for example at insurance regulator as well as the new committee being set up to oversee financial risks in the country. we will get a clearer direction on where this financial crackdown is headed. pressure continues on companies .ike hna bay have been selling off assets and hong like london kong. wonder group, another conglomerate facing pressure and also continuing to restructure. political potential ramifications because anbang, like many chinese corporate's, has big political connections in the chairman was once married to of dengddaughter xiaoping. potentially domestically political implications as well and anbang was a company in discussions of deng xiaoping. with jared kushner at one point last year aro

having said that, commerzbank says this is the evident in the basis,ance on a relative this is the latest phase of the downturn, so don't rush on gold as a safe haven just yet. but is it is a love-hate relationship as you can tell. things is one of those that moves depending on what your narrative is. if inflation is up and goes up. it is the was suddenly collapse and you this geopolitical things picking up. interesting, we also had -- have to put this into context. it had a good run in january and then you see the strength of the dollar come back. it might also be one of the start of the relationship and knows what is happening as far as these markets. it is very interesting for us to note that it hasn't been the most traditional haven you have expected given the route last week. now is put that behind us. i am knocking on wood but here. indonesia is getting underway. it is only monday. in my peaches and but the drive behind us. -- it might be too soon to put the drop behind us. this is capping a two-week drop on friday. this selloff was largely maintained barring singapore and the phili

andrew sheets from morgan stanley and peter dixon from commerzbank. coming up, we talk oil. oil bounces back. is shale production in the u.s. holding back further gains? if you look at some of the me, we do haveth a chart for this, but it is one of the funds that was oversold last week. basically showing the worst is over for now. however, it still trades more than twice the price of the ishares treasury bond etf. there may be a little pent-up demand. that leaves ample room for the ratio to return back to its five-year mean. we will discuss that next. this is bloomberg. ♪ markets, economics, finance, and politics. i'm francine lacqua. let's get straight to the bloomberg first word news. nejra: the u.s. says it is ready to engage in nuclear talks with north korea. mike pence dubbed the new strategy maximum pressure and engagement at the same time. the comments came after pence and south korean president moon jae-in agreed to pursue a dialogue with pyongyang during conversations at the winter olympics. budget director mick mulvaney has warned that the u.s. will post a bigger