do you think there is an idea about what's deutsche bank is? -- what deutsche bank is? steen: he should know the -- the banke should know very well. he has worked and it from day one. he came in from budapest. he reached the top of the banking industry worldwide. he knows about the strengths of the bank, but he knows he has no time. we have a group of very aggressive, large shareholders, which own more than 25% of the bank already. if you place that wildcard within the next couple of there was a reason to buy. he had a chance and the stock price went up. they did some restructuring. it went up to 20 euros immediately. guy: how does he play that wildcard? today with thets cuts. is maybe held see merges some of the bank units with other banks. maybe with some of the swiss banks. and he has to go back to large corporate clients in germany and say, we had a couple of ideas last year in germany, and coordinate, or something. we have a strong industry in germany, if he concentrates on and most of these companies lost trust in deutsche bank, that will be very stable for the ou

he covers deutsche bank for us in frankfurt. they essentially denying that they are planning on cutting headcount by 10 or 20% in the u.s.? the spokesman certainly denied that there are any such plans. the we are seeing is that cuts could ultimately lead to a reduction in the workforce of 20%. we're not saying that the targeted cut his by 20%, but the bank is going through all the units they are going to cut grade and is applying a each of those units. a reduction could lead to one in five people in the u.s.. there are a lot of unknowns us ronnie deutsche bank and a lot of those are effecting people who actually work at the business. seeing a trickle of high-profile names departing a business. how significant is this? that seems to be the case. month new ceo said last was announced a restructuring of the bank but did not say what exactly he wants to cut. this trickle of people and news is now an outcome of that uncertainty. what is not entirely clear to us is how many of the people leaving the bank are leaving voluntarily becaus

deutsche bank is fascinating. big changes in deutsche bank already. i wonder how the fallout will go. francine: let's get straight to the bloomberg first word news and new york. the u.s. government is dramatically ratcheting up scrutiny of red-hot digital currency market. the justice department has opened a criminal investigation into whether traders are manipulating the price of that going. authorities were a virtual currencies are susceptible to fraud. the trump administration started an investigation that could lead to new tariffs on imported cars and trucks. the issue is whether foreign vehicles threaten national security, the same argument invoked by tariffs -- four tariffs on steel and aluminum. in turkey, the president surrender to the market and has pledged allegiance to global principles on monetary policy, and turkey's central-bank boosted interest rates to prevent a freefall of the lira. as you were mentioning, deutsche bank made it official, job cuts are on the way. they will cut equities jobs by one quarter and will reduce overall headcou

banks and credit suisse of switzerland and barclays from bric deutsche as market capitalization that is the value of all the company's shares combined has dropped significantly to from just over thirty billion euros to twenty three point seven billion euros today making shareholders seven billion euros poorer there's been a steep decline in revenue to which has fallen from over thirty three billion euros two thousand and six point four billion no wonder shareholders often arms many other recta their anger this man here supervisory board chairman powell and he's been in the position since twenty twelve and then he did in two accusations he's been steering the bank in the wrong direction but the new man at the helm can't deny his responsibility either christians it is a true church a bank thorough bred he joined the bank as an apprentice in one thousand nine hundred nine and has held senior positions in the bank's risk management and legal departments for years but zipping was facing unfriendly fire today from many sides . they came to express their contempt for dortch of bank proteste

the markets suggest it's deutsche bank specific i obviously don't know anything about deutsche bank's derivatives book but if it is set up to be short volatility, the longer it goes higher, the worse this is going to do. they could be as profitable as they want, this has everything to do with their derivatives book. >> the derivatives book is the one part that's still very attractive that i think other investment banks, if it's plausible to chop up parts of it, would like to try and pick up because it still drives a huge amount of volume and market share for them in terms of systemic risk, italy was the issue this week. if you look at european banks week to date, they have recovered far less than u.s. banks. so people are saying it doesn't affect u.s. banks so much. european banks are still a question mark. >>> more pain ahead for troubled deutsche bank. mike, what did you see >> we saw ten times the average daily put volume today most of that activity was concentrated in the august 7 puts over 11,000 traded, including a block of 10,000 purchased for 14 cents. so that seems to be a di

deutsche bank is a problem bank. i think it needs to shrink dramatically. markets -- the people reading these stories on the bloomberg are fascinated by this. it is amazing to see how much interest there is in this story. does the market care what mr. eisman has to say? are there any surprises in this? >> i would not say there are surprises. he does say he thinks the bank needs to raise capital next year. that would be a big surprise.the bank does not have plans that i know about. this is someone who has spent his money on sinking deutsche bank share prices. does the market care? the market will open soon, we will find out. he is a famous person and if he talks about deutsche bank, people will listen to him. guy: briefly, they seem to be making comments on asia. is that a surprise? >> not really. ceo says they want to remain strong in asia. it is not really a surprise, but it is an indication that he, the ceo, is traveling the globe to let the staff and clients know that deutsche bank will still be there because they

and joining us from deutsche bank headquarters in frankfurt general duma launches on the stock exchange but it's the same city you know tell us about all these bankers out of work and what shareholders think about and usually they like job cuts. well remember that this really is the first shareholders benefit now benefit now the job cuts are there for the new c.e.o. to be able to show that he has what it takes to be able to take the tough decisions needed to steer deutsche bank a back to profitability as such dortch of bank shares jumped on the news although they've since gone back down but how they really feel about this move will be made plain tomorrow during that shareholders meeting that you mentioned for now it's worth bearing in mind that one of the key reasons that his predecessor john cry and had to go last month was because shareholders were dissatisfied at the pace and the depth of the restructure i made three last banking years for deutsche bank so in the last years

definitely deutsche bank is number one >> let's talk about it the deutsche bank is not the local bank next door this was the biggest bank in europe their obligations are massive. that stock chart looks like a bad internet stock from 1999 what is going to be the ultimate outcome of deutsche bank this is a huge story >> above all, as a former lehman trader, i wrote the lehman book, "colossal failure of common sense" i spent a lot of time on this subject what equity investors have to realize, when they see a stock like deutsche bank, only 25 billion of equity, but the balance sheet is 1.7 trillion. 1.7 trillion with only 25 billion of equity. >> that's why we're talking about it and wanted you on >> so much debt relative to the equity the equity is an after thought the thinking is they'll wipe out the du the -- angela merkel, in her view at some point they could wipe out the equity, then rebuild the bank from a debt perspective. that would obviously create side effects around the world where people think who's next. >> let me ask you a difficult question i want to be careful asking you t

. ♪ >> ever the optimist at deutsche telekom. raising the numbers to 2018, the 23.3eadline, raising by billion euros. comes inrter revenue at 17.9, a little lighter than the market expected. why justifies the reasons t-mobile and sprint are going for four years again. they are going for this potential deal. 17.9,quarter revenue, under the 18.1 target. ad of the5.55, ahe 5.15. costs are the critical issue. raises consumer growth targets and the united states, raising the customer growth target. that's coming through on deutsche telekom. banks, take it away. anna: lots of reporting to the reporting.lots of ros. eu and the digital profit growth, engineering company digital business will make up for a deepening slump in the power and gas division. manufacturing now expects earnings per share in that range, 770 - 8, compared to 720 euros to 770, they are upping that. the ceo says primarily our digital offerings show impressive performance. we demonstrate our commitment to the company capability to mark structural changes. structural c

why so many on edge about deutsche bank shareholders meeting. plus, he's back, coinbase president asiff hirji, in an exclusive teiewi me inrvw llakan announcement that could rock the crypto world that's when "fast money" returns. >>> first on cnbc, fed president robert kaplan on rising interest rates, inflation and economic growth "squawk box" 6:00 a.m. cnbc. >>> welcome back to "fast money. it's like a scene from the alfred hitchcock horror film psycho crypto carnage rages on and has been a bloodbath since highs in early may. bitcoin, ripple, litecoin getting slatered what's behind the move our crypto baller bk. >> i would temper enthusiasm or volatility this is normal volatility but we'll talk about that in a bit crypto carnage, why are we seeing a selloff, let's call it. number one, regulatory uncertainty. yesterday north american security association come out and do something called operation crypto sweep where they shut down a lot of really bad projects and sent letters to a bunch of exchanges just to gather information this is what we want

with the power of deutsche telekom? bridge have built a huge and combination plan for the upcoming years. there is investment up to $15 ,illion just going to entities and we have huge investments planned for the 5g rollout. there will be a three-year time period where we are realizing $30 billion. a very sound business plan if we were allowed to merge, we can compete then with the two big players. matt: thanks so much for your of deutscheettges nnes.om in bo back to you. tom: thank you so much. greatly appreciate that. we are watching e.m. right now, recentn near new weakness. indonesia not telling me much. turkish lira does better off of the economy meeting scheduled by mr. erdogan. move.inian on a 2.4% right now, taylor riggs. the world's largest beer maker posted first quarter as it get -- first quarter earnings that beat estimates. meanwhile, the brewer is ramping up its marketing campaign for soccer's world cup this summer, the most-watched sporting event around the world. boeing and airbus appeared to be the big l

in 2012, deutsche was the world's second-largest investment bank. since then, it has slipped to number eight. credit suisse from switzerland and barclays from britain, a steep decline in revenue, falling from $33 billion to -- 33 billion euros to 26.4 billion euros. they are directing their anger against the supervisory board chief, in the position since 2012 and accused of steering the bank in the wrong direction. the new ceo's plan to cut jobs isn't saving the bank any money. deutsche bank stock prices has fallen to its lowest rate in months, and it is not just investors who are not happy. reporter: they came to express contempt for deutsche bank, protesters at the shareholder meeting see germany's largest lender is an example of everything wrong with the financial world. the announcement of more than 7000 job cuts comes weeks after the bank reported -- the bank appointed a new boss. >> the current results leave us no other choice. we need to set in place conditions in order to sustain long-term profitability. reporter: one thing most people can a

most likely he will also survive the vote of confidence today at deutsche bank's agm. with that, back to you >> annette, thank you very much for that one has to wonder, given this revolving door in deutsche bank's management and leadership, whether somebody could come from the outside. i wonder if that's an open question thank you very much indeed for that let's get back to the broader markets. the fed and policy, and the federal reserve is willing to let inflation run past the 2% target temporarily that's according to latest set of fomc minutes in which policymakers pointed towards another rate hike in june saying it would likely soon be appropriate to take another step in removing policy accommodation. on a programming note, tune in to cnbc today for steve liesman's interviews with the dallas, atlanta and philadelphia fed presidents time on your screen >>> on the show we're joined by sheila patel, ceo of the international group at goldman sachs asset management thank you for joining us on the program. let's first kick off with the fed factor overnight investors breat

caroline: impassioned deutsche telekom ceo. and how the vodafone deal will shake up, alex would want about what liberty media challenge could do alone. this is a big deal, 18 billion. taking that th debt in order to acquire this company in germany. he has a weaker market competition in places like poland that are promising, but people talk about content in the u.s. we are seeing the carriers are moving with some speak into the content space. we see at&t who want to get time warner, and comcast making a play to acquire sky, it seems logical to go for a big content player. he would be able to get a massive studio, but something like lions gate, that might seem like a logical play. he could boost his stake and encourage greater organization among smaller players. caroline: we were talking about distribution of vodafone. structure about the vodafone wants.he phone onc >> vodafone is trying to decrease in germany and its easy start market there, and for other reasons like the connections they'll be getting through 5g. the way to hav

we could speak for half an hour about deutsche bank. yesterday the ceo spoke and he still likes the u.s. business. we were led to believe we are getting out of the u.s., but it would the u.s. -- clearly the u.s. is important. >> it is an important and they have to continue to be there is a a. if you what to be a global scale in certain parts of investment banking. we will know more about what the final -- clearly he is on a race to show that he can get this plan done, that he can execute on it. the previous management, one of the biggest criticisms was they had a plan and the execution failed. mark: shareholders had their doubts. vonnie: it is pretty amazing with shares -- let's check in on the first word news. >> the trump administration has taken its most aggressive's that yet-- aggressive step against u.s. trading partners. ony have imposed tariffs steel and aluminum from the european union, canada, and mexico. it is set to see retaliation from america's closest row was. wilbur ross as he looks forward to more negotiations. president

germany's that leading lender deutsche bank is slashing over seven thousand jobs it's part of an overhaul under new c.e.o. christian saving his wife back in two thousand and twelve was the world's second largest investment bank but since then it slipped all the way down to number eight that's coming after the u.s. banks credit suisse from switzerland and britain's barclays there's been a steep decline in revenue to fall in from over thirty three billion down to twenty six point four billion euros what i now wonder shareholders are up in arms many are directing their anger at supervisory board chief. he's been in the positions and twenty twelve and is accused of steering the bank in the wrong direction bought christians savings plan to cut jobs isn't saving the bank any money as share price for ling on wednesday to its lowest in seventeen months and it's not just the investors who are unhappy. they came to express their contempt for deutsche bank protesters who gathered outside the annual shareholders meeting in front foot to see germany's largest lender as an example of everything that's

well this is the essential question right i mean deutsche bank is clearly stepping away from its globalist ambitions because it has to but at the same time it can't make any kind of claim of regional dominance either there are enough european banks that are able to service german wilton nationals and they're probably a safer bet than deutsche bank when it comes to corporate services or investment banking now i was actually talking to someone who worked at deutsche bank earlier today and he said that the mood there is very grim not just because of the job cuts but because of skepticism at the strategy they know that deutsche bank has slept through important industry developments that would have given them a fighting chance against other banks today the i.t. infrastructure is apparently terrible and we can't forget that the banking industry especially is seeing so much change due to digital video tell ization and automation so they're wondering how deutsche bank could possibly compete this is going to be important to german multinationals as well as they play catch up themselves now reports

we will hear from deutsche telekom's ceo. later, one of the biggest startups and e-commerce is speaking out for employee benefits for all. we will hear from rent the runway ceo jennifer hyman. this is bloomberg. ♪ ♪ emily: the battle for e-commerce supremacy has zeroed in on india. walmart is paying for a 70% stake in india's largest retailer, flipkart, as walmart looks to fend off amazon in the second-most populous nation. speaking of deals, vodafone is shaking up europe's fragmented media and telecom market with an 18 billion euro deal to buy a -- by almost one third of liberty global, taking assets from germany, the czech republic, and romania. it is part of a global push for scale as carriers of phase massive network investments and competition from digital players. it is causing waves throughout the industry, particularly in germany, where vodafone is reshaping spheres of influence that have already drawn sharp rival, from its closest deutsche telekom. we spoke exclusively to deutsche telekom's ceo tim hottges about

kevin: deutsche bank is considering laying off 20% of u.s. half. there is a major piece of legislation in the works, obviously, from the senate that has a stance on tweaking dodd-frank. is there any update on timing about when the dodd-frank overhaul or fix, call it what you want, might get floor time or a vote in the house of representatives, and do you have any comments on joyce and bank -- deutsche bank? >> sooner rather than later is when we will see senate bill 2155 come over to the house. i am proud to say that when you look at the deregulation provisions, two thirds of it, maybe even three quarters started from the house. personally, i have been holding up the bill because i have been holding up many other bipartisan provisions that i would like to have included. the senate has let it be known that they did not want it to be included in the bill, but they would let our other bipartisan capital formation provisions go to the floor with that bill in commitment. i released 2155 to the floor for consideration. the majority leader will make the a

we will hear from deutsche telekom's ceo. later, one of the biggest startups and e-commerce is speaking out for employee benefits for all. we will hear from rent the runway ceo jennifer hyman. this is bloomberg. ♪ ♪ emily: the battle for e-commerce supremacy is gearing up in india. walmart is paying for a 70% stake in india's largest retailer, flipkart, as walmart looks to fend off amazon in the nation. speaking of deals, vodafone is shaking up europe's fragmented telecom market with an 18 billion euro deal to buy a house -- almost one third of liberty global, taking assets from germany, the czech republic, and romania. it is part of a global push for scale from digital players. it is causing waves throughout the industry, particularly in germany, where vodafone is reshaping industry trade we spoke exclusively to deutsche telekom's ceo tim hottges about the tie up. take a listen. tim: i think the deal is totally unacceptable. there was a time where deutsche telekom was not able to sell their cable businesses in one piece.

deutsche bank is a problem bank. the uae energy minister has said opec has enough spare production capacity to cushion the oil markets should the u.s. reimpose sanctions on iran. bloombergsident told three big producers can offer an adequate buffer, adding that the cartel has dealt with similar situations in the past. >> we've been there before and i tonk opec has been resilient deal with that in the past. some of the member countries have definitely a spare capacity that can be used when required. taylor: the ceo of siemens has told bloomberg he's not planning an ipo. speaking in abu dhabi, joe kaser said the company is looking at the u.s. sanctions on iran to assess any potential impact on siemens. we need to look at what the sanctions actually mean. it is clear that it is a political governmental decision. that is exactly what we're going to do. taylor: and that is your bloomberg business flash. nejra: taylor riggs in new york. let's get to one of today's top stories. donald trump has ordered the commerce departme

impassionedd deutsche telekom ceo. willow the vodafone deal shake up, alex would want about what liberty media challenge could do alone. 18 billion.g deal, taking half of the deck in order to acquire this company in germany. weaker market competition in places like butnd that are promising, people talk about content in the u.s. we are seeing the carriers are moving with some speak into the content space. we see at&t who want to get time and comcast making a , it seemsquire skype\ logical to go for a big content player. he would be able to get a massive studio, but something might seemgate, that like a logical play. he could boost his stake and encourage greater organization of smaller players. about thewere talking depth vodafone will take off of the hands of liberty global, i is, anding at the dd they have to be careful with how we play this. the weight thet deal's structure and what vodafone wants out of all of this. >> vodafone is trying to in germany and its easy start market there, and for other reasons like the c

deutsche bank is back in the news, it will cut equities jobs by one quarter and reduce overall positions by at least 7000. the new chief executive is costs and boost profitability. the reductions will take the number of jobs well below 90000 and lead to a restructuring charge of at least as much as 800 million euros. the shares are at the lowest level since september, 2016, down by 5.4% so investors once again are underwhelmed by deutsche bank. italianve a look at the -- german spread differential. we are up to 192 basis points which is the widest since june. there is a search for a government and we are awaiting the nomination of a new finance minister. that is what matters. a finance professor is a candidate for the position. economist who has repeatedly called on the government to plan for a possible euro exit is still the main contender. spread is widening between italy and germany. look at aristarchus shares getting hammered today, the swiss breadmaker is sinking as much as 31% today. it lowered its full-year profit outlook for the second time this rising costs and slumping sales. t

says this isceo self-serving from the deutsche telekom ceo. the german market is screaming for more competition. we did hear some screaming, but not the kind he was talking about. very different views. it will be interesting to see how this plays out. a lot of optimism on the vodafone side, but it will go to competition scrutiny. david: thank you for being with us. alix: we now turn to wall street beat where recover cover three things wall street is buzzing about. , softbank'sx pas ceo spills the beans. deutsche bank considers cutting 20% of its u.s. staff. rockefeller records. rockefeller collection brings in $460 million its first auction. five more await. .avid: they are not done yet joining us is jason kelly. i must say, i have seen a lot of leaks on deals but i have never seen one where a ceo goes out and announces it. jason: we know how choreographed all of this is. there are employers, pr people who specialize in this. alix: codenames. jason: codenames, secret meetings, working through the weekend, all in service of the perfect rollout.

every time he comes on, we seem to talk about deutsche bank. there a shareholder meeting taking place. we are to see headlines coming out. headcount by about 25%. confirming post-tax return on tangible equity gold. this follows some reporting that bloomberg yesterday that they were can -- considering 10,000 globe cut. manus: let's put it in context. the headline about 10,000 jobs, previously set a target of 9000 job cuts. this never you are looking at is full-time positions will fall below 90,000. they are affirming a target of about 10 percent posted tax return. they can make a double-digit return on equity. 10% would be the number that was flagged up yesterday. they are going to reduce the cost of the business by 22% -- 22 billion from 2019. to a certain extent, the real issue is the chairman is still there. have had for ceos in six years and that seems to be the angst at deutsche bank. can the chairman clear the ship and saving the ceo to do that. without have we got? anna: no further significant disposal plan. more development at deutsche b

scarlet: yes, the former deutsche bank group is huge in the united states. all right, thank you so much, k, with the scoop that deutsche bank is considering cutting one out of five staffers in the u.s. the u.s. indexes with moments to go before the close. the president announcing it will withdraw the u.s. from the theian nuclear deal, add dow getting ready to close dowle changed -- and the getting ready to close little changed. this is bloomberg. ♪ [closing bell] the closing bell and the iranian nuclear deal. i am julia chatterley. scarlet: i'm scarlet fu. joe: and i am joe weisenthal in san francisco, and if you are tuning in live on twitter, i went to welcome you to our coverage every day. -- i want to welcome you to our coverage every day. stock market little changed, slipping after donald trump decided to scrap a nuclear iran, causing concern about tensions, and you can see is off -- actually, it is up a little, and the s&p little changed, and the nasdaq -- basically all three of them little changed, julia. yes, and it was so well telegraphed ahead of

deutsche bank hit a record low after reports the u.s. deposit insurance regulator added it to a group of troubled lenders that it monitors. deutsche says it is overhauling the investigation and has no concerns about it financial stability. it is already on the fed's list of problem banks after three years of losses. deutsche is refocusing on europe. the ceo says the u.s. will remain an important market. another top executive has been replaced and a move that may signal u.s. demand. china is trying to convince the trump administration to lift a seven-year ban on american technology that was imposed in april over sanctions in iran. resume if zte could they paid a fine and change their management. coming up, american allies have responded to the latest tariffs and some of their hargis -- some of their harshest criticism. we are hearing from the mexican economy minister saying this is the worst case scenario a, and trump has shot himself in the foot. we are live with the latest in the summit. retail. under pressure like never before. and it'

deutsche bank bashing has been going ona deutsche bank bashing has been going on a long time, the share price has been burned on the side for a long time. —— going on the slide. whilst it is good to see them try to cut costs i do not think there is much confidence in how they are going to drive revenue growth going forward. thank you very much. check your e—mail today? how many e—mails have you had? tougher data privacy rules come into effect tomorrow — and it has a huge impact on any organisation that handles personal information linked to eu residents. the general data protection regulation — as it's called — is pretty complex and it looks like many firms are still struggling to understand what it means for them, even at this late stage. we've got a really helpful quiz on our website which looks at the new law and what it could mean for you. head to our website to see this. the ftse 100 is down heading towards lunchtime. that better—than—expected retail sales data for april has given sterling a boost, but when the pound goes up in value that puts pressure on the ftse

deutsche bank is a problem bank. david: not a ringing endorsement. jason: steve eiseman, for fans of the big short, this is the character who is played by steve carell in the movie adaptation of the big short. largelyit -- called it subprime mortgage crisis. he is the voice. alone.he is very much this is not a huge surprise. julia: he did said it will have to raise capital as well next year. performanceesent from banks. mentioned, this is a constant theme. deutsche bank is coming up almost every day one we are talking about what wall street is talking about, and not in a good way. people are not buzzing about deutsche bank just kill and it -- killing it these days. that only beats the drum even louder for some. exactly right. the only way to break in there is move. read story ont reallyomberg is this nice package with a lot of graphics and charts about where is" and it "really is not on wall street anymore. what you have seen, and the story lay this out is that wall street started and then moved to midtown and now is largely moving west to hudson yar

then, deutsche bank on the retreat. from equityull markets around the world, including some in europe. including 10,000 job cuts. president is set to meet with the law profess being pushed by populists for next prime minister. that is all in the next 16 minutes. caroline, what are equities doing? in the last few minutes, 30 minutes of trade, we are seeing a down day. the worst day we've had in the stoxx 600 in more than two months. more than 100 billion -- in terms of market capitalization, all to do with what we've talked about in the headlines. isck out how the dax performing after seeing the german weakness and growth. above, italytly trading on the back of political concern -- individual stories coming out on the banks. we started the day with the report on barclays, a potential tie up between these companies. ,hifts remaining in the green that particular speculation by bloomberg news reporting. investors and analysts see this as merely having no strategic rationale, but also look at deutsche bank. about one hour ag

to lisa dbrs ratings have been confirmed for deutsche bank. but the outlook has been revised to negative. can you talk me through the rational for that? is it that you're skeptical about the strategy and restructuring plan presented here >> sure. so last year -- sorry, last week, we resolved the trend to negative and we keep a negative trend on for about a year when we resolve it. this gives us opportunity to assess deutsche bank's strategy, it's management, stability and market positioning over the coming year. so we're kind of looking basically at three things over the coming year. the execution risk in strategic targets, the scaled or restructuring class, when we look at restructuring, in addition to what deutsche bank is doing, we're looking at the continued investment in systems and technology which we feel has fallen behind the global peer group and looking at them to demonstrate management stability and cohesiveness going forward, which is somewhat challenging to assess but i would say if we continue to meet strategic targets, that's a

give us your view on the investments you made in deutsche bank? they are changing the strategies today. it is a step in the right direction. clarityto have far more and we need more data points, how they want to restructure the investment bank and just looking at the cost, it is not enough. david: in my experience, you can never cut yourself to success. why haven't they come up with a plan for the investment bank thus far? ingo: they have to look to the u.s. the big issues are the u.s., they want to focus -- refocus on europe and be closer to their core market, back to the roots and shrink the investment banking unit. they have to drive investment banking down because 75% of production is tied to investment banking. 50% of the profits are generated in this unit. we have to wait and see what the bank wants to do. -- it are you in favor has been reported they're going to be dialing back in the u.s. like you said. can they do that and not affect topline? you need to figure out ways to cut the cost without losing revenue. ingo: at some point in time,

up next, considering deutsche bank's creditworthiness. we discussed the outlook for germany's biggest lender as it shrinks. this is bloomberg. ♪ ♪ matt: welcome back, let's go to juliette saly. bloomberg sources say warren buffett propose investing millions in over but the talks fell apart. .he now dead transaction uber hisuld have lent reputation in response for some capital. one of the firm's most senior executives has left the company. learned that emily courtney resigned this month and her duties have temporarily been taken on by the finance she joined the london-based bank in september 2016 after spending more than two decades at jpmorgan. the former employee of barclays ceo and the source of many of its recruit. deutsche bank's new ceo has said the lender is committed to america, seeking to dispel what he calls rumors to the contrary that the firm has cut back. they say the bank may retreat from a couple of small business areas, but fundamentally, the u.s. is the most important market. the comments, as the employees wait for the

jpmorgan, deutsche bank are all there. other banks have been applying for licenses and operate through the investment banking licenses which enable them to advise on the privatization you're talking about. with this program that has been theched a few years ago, prize coming out of saudi arabia, all the fees you can raise out of these deals are in people- are luring from across the world. what it sounds like to me is we have seen this before were these second-tier banks want to go international and pick up investment banking business, but don't they have to compete with the big guys? if it is going to be a feed bonanza, who is in line first? certainly jpmorgan and hsbc have a very well established franchise in the kingdom and have managed -- they already on the deal, which if it goes ahead will be a huge fee payday. where also seeing things like the pis and international investment spree going on. banks want to be close to that and advise on all kinds of deals. the opportunity is there. jpmorgan and hsbc have been well-pos

we will hear from deutsche telekom's ceo. later, one of the biggest startups and e-commerce is speaking out for employee benefits for all. we will hear from rent the runway ceo jennifer hyman. this is bloomberg. ♪ hyman. this is bloomberg. ♪ e-commercebattle for supremacy is gearing up and in th india. walmart is paying for a 70% stake in india's largest rt, as walmartka looks to fend off the biggest company in the nation. speaking of deals, vodafone is europe's fragmented telecom market with an 18 housen euro deal to buy a one third of liberty global, taking assets from germany, the czech republic, and romania. is global push for scale from digital players. throughout the industry, particularly in germany, where vodafone is reshaping industry trade we spoke exclusively to deutsche telekom's ceo tim hodges about the tie up. totallyhink the deal is unacceptable. you can have cable businesses in one piece. it was sold in three pieces, and now they are coming together under the roof of vodafone. second, we were building, let

nejra: we have some breaking news on deutsche bank. it seems that a bit of a tense manhattanlded inside tower just hours before news began leaking that the firm was looking for a new ceo. just to get more details on this let's bring in steven arons in frankfort who got this scope. tell us exactly what has happened. the fed has been looking at deutsche bank very critically for a long time now. just last year they post at least three cease-and-desist orders on the bank. they were beginning to lose patience. in march when the meeting took place they made clear to the bank that their patience is running thin and they made clear that deutsche bank would need to step up the pace of compliance so that they wouldn't end up with even more severe penalties. that's what happening right now. we have a new ceo and it's up to him to do that. nejra: we understand that this is a warning. a scolding if you want to call it that. how likely is it that it's going to be followed with any sort of enforcement that's going to have a material impact on deutsch

for a while deutsche bank has been bleeding talent. i think of the alumni that is on the street and they are everywhere. -- has reached fever pitch as of late. >> a lot of it comes down to how deep the cuts are going to be and are people going to stick around to find out? we reported that there are considerations for cutting as much as 20% of staff in the u.s. the bank is saying a lot of the cuts will be toward performers but when you cut that deep it raises questions about commitments to specific areas and people in that part of the bank may not want to find out. of talk thata lot deutsche bank had to extend big bonus offers and compensation packages to entice real talent into their doors in the past two years. it morel have to make difficult on that level? >> definitely. to keep the top talent, because they have had so many switches in strategy, a little over a year ago use -- you had john cryan saying we are pivoting back to growth. we need to grow revenue and that did not happen last year. thereu're moving back to was a memo that c

ramy inocencio has more on deutsche bank. ramy: in total, that number is 7000, but according to people familiar, it can be as much as 10,000, representing about 10% of all the jobs currently existing at deutsche bank. there is a lot of investor wrath at the annual general meeting in germany as well as the share prices, down 4.8%, the lowest since september 2016. based on all of this, it could be too little, too late because there is a lot of frustration and anger, not just over this most recent aggressive attempt at cost cuts, but over the past four or so ceo's. but the new one, who just started in april, tried to dissuade those fears. take a listen. >> let me state quite clearly. we are committed to our corporate and investment bank and we are staying international. we are active in more than 60 countries. that's the way it's going to stay. cuts now, 25% of those job are actually coming from the equities trading visit and that got my first bloomberg terminal behind me. you can see the performance of the business. ever since

deutsche bank not commenting but in a statement it says the ultimate parent of the deutsche bank, deutsche bank ag is very well capitalized and has significant liquidity reserves. >>> uber's ceo says the company is on track for an ipo in 2019 and that it's in talks to add waymo's self-driving cars to its network. and the world's leading air transport industry group says airline industry profits probably won't hit record levels forecast in december due to a jump in fuel costs we'll get the pulse from delta's ceo minutes from now tyler? >>> we begin with on again off again and now on again trade tiff eamon javers has the story from washington. >> tie ler, that's right the announcement came from the commerce department and then wilbur ross was on cnbc explaining the president's decision here. one of the questions he got was about the eu's reaction here the eu threatening to take retaliatory action of its own. here's what wilbur said to that one. >> you'd obviously v to talk to the eu, but think about how small in number $3 billion a product is relative to our $18 trillion economy it's a tiny,

to have but is obviously a reference to the turbulence and scandal that's dogged deutsche bank in the last two years now shareholders haven't been particularly impressed with the speech and see if we saw the share price go down after that speech but you know the reason i moved here in front of the deutsche about headquarters is also to try and get a reaction from the people here that i wanted to know how they're how the speech went down with them and from what i can gather it's most of them have been mentally prepared for this step now they're only too aware of the problems the dog. continued restructure was definitely in the cards so not much talk here emanating from the employees of deutsche bank but certainly quite a strong feel of resignation. told to stop that but have you heard anything from stuff representatives who sit on the supervisory board and have they agreed to the job. you know even before the a.g.m. the representatives of the workers were already talking to the media saying that they felt that the numbers being discussed were not plausible were not realistic and will d

they came to express their contempt for deutsche bank protesters who gathered outside the annual shareholders meeting in front foot to see germany's largest lender as an example of everything that's wrong with the financial world the announcement of more than seven thousand job cuts just comes weeks after the bank appointed a new boss the uk to current results leave us no other choice we need to set in place the conditions in order to sustain long term profitability. seeing for us it's on shuffle one thing that most people can agree with is that something needs to change at deutsche bank as most bang for i need a bank that is competitive on both a national and international level and that's not the case now. the moment. calls are simply too high and they need to go down dortch a bank has lost its edge in recent here is an issue its c.e.o. is determined to address your mission is going to shift the balance in our business so that our results fluctuate less this is the only way we will be able to sustain profitability and build on our strengths and what else i ignore cuffed. of bot. after three

. >>> deutsche bank announcing massive job cuts >>> uber out with new numbers putting its valuation at $62 billions >>> apple teaming up with volkswagen on driverless cars and the biggest names in tech are about to take the stage in paris. it's tuesday, may 24, 2018, "worldwide exchange" begins right now. ♪ >>> good morning, welcome to "worldwide exchange," i'm dominic chu. we are seeing futures pointing to a relatively flat open. the dow jones slated to open down by 13 points. the s&p 500 just about flat. we have seen a bit of activity on the ten-year yield, 3.01% we're watching that level to see if we can hold it. on the oil side of things, we have been watching those crude prices move around a bit in the course of the last few weeks gasoline prices are higher wti off by a half percent. brent crude, those world benchmark gauges, off a bit. as for the global market picture, looking at asia overnight, the nikkei off by a percent. the hang seng is up by 0.31% the kospi is off by a quarter of a percent. in europe, early going, but stable markets presenting themselves there mostly green

these allegations on the proceedings that expects -- innospec's -- it inspects -- it in 2018.o face deutsche bank said they expect to face charges over displacement and we know the other two join managers on this sale where citigroup and jpmorgan. it is not clear what the allegations will be detailing.

tim hodgkins at deutsche telik and has a lot to think about. what kind of competition that will divide to him in germany and in eastern europe, earnings here at home, and finally, the t-mobile-rent a deal in the t-mobile-sprint deal in the u.s.. >> i think the deal is totally unacceptable. there was a time when deutsche telekom was not allowed to sell their cable businesses in one piece, it would have created a bigger price. it was sold at three pieces and now, all of these three pieces are coming together under the one of vodafone. >> barclays ceo fined over $870,000, for his role in a currency manipulation scandal, some suggesting it was just a tap on the wrist. is that fair? >> yes, 15% of what he would've taken home in 2016, it may not seem like an awful lot. it could have been deemed not therefore, that would've cost him his job. this is of course, quite a significant step for that. >> quarterly profits in india's icici fell by more than double, so what do analysts make of these numbers? >> the numbers are down, 50% below consensus expecta

mobile us which is owned by germany's deutsche telekom agreed to acquire rivals that will combine the largest wireless carriers in the united states and if the deal is approved it will mean the creation of a carrier with one hundred and twenty seven million customers that's around population. the merger will have to face the scrutiny of regulators in washington. it's a big deal and this video featuring the c.e.o.'s of sprint and t. mobile is proof that to wireless carriers are doing what they can to get everyone on their side they say the merger will help them better deliver mobile services to customers in particular the latest and greatest five g. technology i know the system at that america early for leadership out in millions of jobs in this country and billions in u.s. g.d.p. i mean five g. the stakes are even higher just to point us in perspective the difference between four g. five g. is the difference between black and white t.v. i'm color t.v. but that may not be the most important thing and i trust authorities may say the deal could harm competition much like they did in two

deutsche bank reversal. to wallurning now street week, where recover three things wall street is housing aboutthis -- is buzzing this morning. buffett cancels his ride, warren buffett calls on a $3 million deal with uber. and the deutsche bank reversal, ceo savings says the u.s. remains its most important market. alix: joining us now, james simon, he was the winner of $1.7 billion. alix: as he as last year and the year before. it's his performance on these funds that are unreal. >> that's right, the the toallion fund, it is closed outside investors and has done incredibly over the years. they keep it caps off at a certain amount so that they can do a lot of the trading they want to do and they are one of the best and earliest funds of all time. learned this the euro to ago, they only invest their own money now. only the people working get to participate in it and it's like 40% returns. >> is incredible. and as you said, they keep it cap so that they don't get too big and not have the opportunities they want.

deutsche bank is the only one that is negative. hsbc and blue, bank of america and purple, all positive. overng at the 10 year ceos, they have all been negative except one. right now it is down 9.6% since he started in the past month or so. haidi: thank you so much for that. coming up, more on korea. we will talk to the korea society resident about the fallout from this failed summit. that is up in 10 minutes time. this is bloomberg. ♪ ♪ anna: president trump canceling on kim jong-un saying the united dates military is ready for anything. north korea says it still wants to talk. tearing earlier losses, the yen weakening to 110 while gold sees its biggest gain in weeks. back in-- rusal spotlight. the resignation may bring sanctions to the end. i am in hong kong. guy: and i am haidi lun in city. apple in half a million -- billion dollars out of samsung. this is "bloomberg markets: asia." a bit of a mixed picture this friday, the session in asia not all bad given we have had conciliatory remarks from north korea in the response to