what is deutsche bank? james: we have said pretty consistently, our roots are in serving the german and european economy globally. particularly, our home market is an export nation so we continue -- plan to continue doing so. our clients rely on us to provide products and services we do, to build on relationships around the world. there is true value in that for stakeholders and shareholders, and that is something we will continue to execute on. matt: one of the issues in your discussion with commerzbank was your refusal to abandon the u.s. trading operation. why not get out of what is a risky, volatile, lossmaking operation? why not get out of the u.s. operations? comment onn't specific elements of the discussions we had with commerzbank. we worked together openly and transparency on the business case for the merger. the u.s. market is a core market and frankly the clients we serve. some sort of wholesale decision around the united states was never part of our considerations. matt: what about the jobs issu

why was deutsche bank so desperate? >> they were really eager to make a name for themselves in the united states. trump even at the time before he was running for president was -- he was very well known. he was a splashy name, a big reality tv star. he had a knack for getting publicity and for attracting crowds. and that was exactly what the bank needed at the time as it tried to make itself not just a random german bank but a household name in the united states. david, fascinating reporting as always, thank you so much. >> my pleasure. >> let's check in with chris. >> another fan, another fan with me tonight, coop. this is carlina regina cha cuomo. what do you want to say to anderson? >> you're my second favorite store. >> thank you very much. is don your first? >> he says don lemon so your favorite? >> cuomo, of course, he's my third. i've never watched you guys, i bet you're amazing. >> you've said enough. >> she's with us tonight. >> i love your show, never seen it, but i love it. >> the best kind of fan i can have.

commerzbank and deutsche bank. not enough benefits outweigh the execution risks and capital requirements. deutsche bank moves to plan b. global bank earnings, the good, the bad, and the ugly. barclays says the market is challenging. nomura fights to survive. big profits. facebook delivers double-digit revenue growth. s&p numbers report today. david: welcome to "bloomberg daybreak." we have earnings out as fast as we can talk. bristol-myers is out now. they beat on both sales and earnings-per-share. they had first quarter sales revenue of $1.8 billion. adjusting earnings was $1.1 billion. they are up in the premarket about 2% now. alix: ups also out. earnings and revenue come in a bit light. they do see they see -- they do say they see full-year adjusted earnings up. in terms of where they might have seen a little bit of weakness, they seem to miss on both the top and bottom lines. that stop getting hit at 1% -- by 1%. david: we also have comcast out now. they beat on earnings-per-share. they also did a bit better o

bank, customers bank we have official comments from deutsche bank. deutsche bank and commerzbank are discontinuing their discussions. deutsche will continue to improve all -- to continue on improve their long-term profitability. the news is they have decided to tes continue discussions customers bank, doour bank, as it stands, those discussions are off. let's get back out to annetta in frankfurt with more. annetta, we've got the news. discussions are off. what now >> that's a good question. actually, that's a question probably, hopefully someone from the management board will discuss with us later during the course of this day clearly, i think the execution risk at the press release is stating far higher and the potential benefits that's actually what they concluded now. we were talking earlier about it is lead for a new capital for that merged entity, which probably would have -- the opposition from labor. i guess nobody like the increasing opposition in the end killed that deal perhaps also the concern that the equity story wasn't good enough to se

let's start out with deutsche bank. deutsche bank was once removed from this story. from bill browder, maybe they did not which might hold the key to this story. potential thathe there are deutsche bank employees in united states flagging things that long ago has to be a concern. >> deutsche bank's role in the money laundering scandal is that of a correspondent bank, which comes with a different set of responsibilities than the frontline banks. it is a respondent bank. deutsche bank's responsibilities here were to know its customers. the primary bank has more of the responsibilities in terms of going down to the individual customers. nonetheless, a do have a burden of responsibility. as we have seen recently, it is not necessarily enough to be a correspondent bank to completely avoid all responsibility. the regulators have come after many banks who played such a role. to that extent, ignoring the alarm bells, turning a blind eye to the suspicious transactions, the scale of which was staggering. $150 billion. it is troubling. it comes as there are other scrutiny on de

commerzbank rises on a report that unit bank is planning an offer if deutsche bank falls through. the u.k. parliament legislates by ast a cliff edge brexit margin of just one vote. president trump is said to me for china's vice premier today amidst signs the trade talks are coming to a conclusion. morning, welcome to "bloomberg markets: european open." anna: 30 minutes into the trading day, let's look at individual stock stories on the when hundred 94 stocks going up, 397 going down, so certainly a bias to the downside. is a part that has spun off to a new listing today, that's why we don't have a percentage change. but you dg health care up by 4.3%, and upgrade to the dublin -based health care provider. 3%, talking about the potential for unicredit. let's have a look at the downside. this is a technical reason we're seeing that one weaker. we are seeing that particular business as expected. volvo down by 7.6%. there is a saga earlier on that sense that small stock falling weaker assets across the european equity space. but get a first word news update. the u.k. has taken a decisi

would deutsche bank be open to that? it was one of the reasons we felt we had to look at the merger as it became an opportunity for us earlier this year. in market consolidation is a strategic opportunity one has to look at when that opportunity arises. commerzbank is the last remaining significantly publicly listed german bank, it was a national partner to continue. having decided to go our separate ways, it opens the door to potential cross-border .onsolidation i would not speculate on the nature or the timing of that type of event. matt: what would your reaction now doing azbank bigger kind of deal with a cross-border peer? would that be a problem for you competitively? , it was one consideration that my management board colleagues and i needed to take into account as we thought about the decision we announced today and our future path. we feel we compete successfully in the german market today. it is a very competitive market. we are obviously aware that we may face changes in that competitive environment in the futu

there might have been public interest in it but the bank secrecy act prevented deutsche bank from doing anything along those lines. >> right. >> subpoena power, you know, gives congresswoman waters, adam schiff, you know, the chance to -- the power to command this and deutsche bank has full defense that, you know, they're allowed to turn this over. so i don't think the president's lawyers are going to have much of a chance if they're going to try to fight this. >> alan garten, a lawyer at the trump organization, president's business, said he's exploring options to try to block deutsche bank from responding to the subpoena. are there any options? it sort of seems like this is a cul-de-sac. >> i don't think so. >> there's not any -- >> they're very creative. i'm sure he's going to try to find something that might pose an impediment, but i don't see how they can avoid this at this point. >> given the earlier reporting that the president really did lose his mind about this and that it led him to try to fire the special counsel, even though he knew what the implications of that would likely

funds are betting against deutsche bank. reporter: one element we haven't talked as much about in this deal, cerberus, the private equity firm that has stakes in both. they are certainly behind-the-scenes. i'm told they are advising on this, so we will see. david: but also something has got to get done. there's got to be a plan b. worses a bank doing even than deutsche bank, nomura. their shares are down even more. reporter: they are indeed. six months slide down 23%. that is worse than socgen and deutsche bank. it is interesting reading on this little bit and what analysts are saying. they are trying to improve their profit through cost-cutting instead of growing. that can work in the short term, as we all know, but in the long-term it is not a great strategy. alix: it is definitely not a good strategy. who would have thought something worse than deutsche bank? let's get to our next story and talk about a nice pay package here. a small california bank, axos financial, who ceo made more than jamie dimon, yet it only has abou

guy wants to rescue deutsche bank, not commerzbank. if you look at the earnings of deutsche bank, over the last four years, they have released .bout $10 billion lost the economy in germany is worse than that, the deutsche can't survive. therefore he would stabilize the earnings of deutsche, so they .ere focused on commerzbank [indiscernible] -- would have meant that in the end come up to 80% of commerzbank had to be fired. that it could not realize it. i think they could not have deutsche bank with their strategy be one of the top global investment banks worldwide, and commerzbank has nothing which deutsche's can support in this focus. vonnie: who would you have merged with deutsche bank? are there any options out there for the lender? eter: for deutsche, the option would be clear for many years, from my side. unitlobal investment bank is extremely risky and nonprofitable, so therefore a first step would be to get rid the chairman of the advisory board, a former goldman partner, and a new chairman could change the strategy. that would

deutsche bank is cooperating. what is the panel looking for? >> any indications that deutsche bank inappropriately helped donald trump out of financial difficulties before he became president. and anything that may lead to questionable behavior in the campaign of 2016. nejra: how will this play out politically in terms of 2020? -- >> eric trump blasted the committee for what he said was a political witch hunt. going to play is out. the democrats have to make sure not to overplay their hand. they said they were going to investigate the president and his financial dealings. having the optics of not governing and only investigating. and that could help donald trump in 2020. marty, we are counting ahead to the publication of the redacted special counsel report. how could that have any bearing? >> it will be interesting to see if robert mueller had any information in his report. there was speculation he had those records already and if that connects to the findings. he did not find anything illegal. indictments, but it

deutsche bank is trading down 3.7% today we had obviously the report card from deutsche bank showing results. net income showed a big dump year-on-year, but still a lot of questions about the privacy of their investment banking units and also the cost prepping trajectories commerzbank, however, has been up it% trading up almost 2%. remember, commerzbank is a name that other banks have been -- perhaps that is one of the reasons why that stock is doing well okay i want to bring in an expert from the topic owe just wonder looking at deutsche bank, the development over the last 24 hours, i mean, how do you see deutsche bank's options from here? >> well, we have a negative trend on the write rating, but from our point of view, the merger could have been a driver. further negative rating action. >> i mean, you saw in the first quarter that the results weren't bad for dooub bank they weren't good in absolute terms. it was a difficult quarter anyway for investment banks globally i mean, they've made a start by bringing the costs down in line with their plans it's a tough revenue environment.

what we have is we have russian money out of moscow going into deutsche bank, and we have deutsche bank in new york lending money to donald trump. i think what everyone wants to know, including congress, is are these two things connected or not connected. >> and you paint the two factors here that are very interesting. you put them all together. it's not just this kind of long relationship with trump and deutsche bank, but also then the relationship that deutsche bank has with russia, too. tell me more about that. >> well, i mean, that's right. basically, deutsche bank was very ambitious. it was trying to expand, become a kind of global bank. what i'm told and what i have written is that it was more or less kind of captured by state interests in moscow and was essentially running a money laundering scheme for vips, for kremlin connected officials, for oligarchs who were siphoning money out of moxco, bouncing it through the baltic states into america and the western financial system generally. now, deutsche bank has been fined for this by regulared including in new york. it's paid penalt

remain at deutsche bank -- and deutsche bank cuts revenue targets. rbs warns on near-term growth due to brexit uncertainty. and uber's ipo comes down to earth. the ride-hailing service aims for a valuation of as much as $90 billion, taking a more conservative approach after the listing fell flat. everyone.ng, good afternoon if you are watching from asia. francine lacqua in london, tom keene in new york. gdp in the u.s. is what we are looking out for and brent moving a dollar lower. morethe markets a little stable after the joy we saw yesterday. i only have one data screen as an example here, but the theme of the week is a stronger dollar. the gdp report today will be a real mystery for economists. francine: we will have a lot more, of course, on the gdp reading. it's get straight to bloomberg first word news with viviana hurtado. time is running out for british prime minister theresa may enter plant keep the u.k. out of european elections. may is unlikely to put her brexit bill before parliament next week. she probably won't get it rectified before t

>> deutsche bank is the only bank that would do business with donald trump. so all of the money issues are there. second, deutsche bank has a long and undistinguished history of money laundering including money laundering with russia. all these officials including the house intelligence and financial services committee want those records to see if there was any improper dealings involving the trump organization. >> and that's key what jeffrey said. what you're talking about is the new york attorney general. there's also the u.s. house of representatives asking the same bank for the same information. the fact deutsche bank is apparently turning over to new york certainly a signal they're going to do the same thing to the house. >> and this is what they're hoping. they might get blocked by trump administration officials saying no to these subpoenas but deutsche bank -- >> they're going to go where the money is, the bank. >> he assumes the mueller team reviewed his financial records including his taxes. he doesn't know that for sure. they looked at it, even thou

as to one with deutsche >> i'm not sure how it stands so many regulatory for commerce bank and deutsche bank merger, because clearly, those who are arguing that they would have a machine oply on the german retail market are clearly wrong because you have to look at how big the savings bank and cooperative banks are in germany, so there wouldn't be dominant player in that market there might be perhaps an investment banking specific niche where there could be a dominant player, but i guess they wouldn't be big enough to block that merger. the hurdles are somewhere else especially those are the hurdles that are come from the trade union. we have a new round of margins from the trade union calling officially for more money, but also, for not agreeing to let merger between deutsche bank and commerz bank because they would argue it would lead to a job loss of up to 30,000 people in germany. i think that's the main hurdle when we talk about the deutsche bank and commerzbank merger. it depends how much political will we're going to see going ahead from berlin to actually, yeah, back the bang ag

with deutsche bank, it's much more targeted. they know exactly what they're after and they intend to get it. >> fascinating. congrats to you and emily on a big story here. thanks for jumping on the phone with "the beat." >> my pleasure. >> my thanks to maya wiley playing with us on several topics. appreciate your expertise. >>> coming up, we have some more politics. this is interesting. speaker pelosi weighing in on aoc. she says she's wonderful, but has a message for democrats flirting with socialism. drawing a line. next. cialism. drawing a line next ♪ memories. what we deliver by delivering. with peak season berries, uniqcreamy avocado. and a dressing fit for a goddess. come taste what a salad should be. and with panera catering, there's more to go around. panera. food as it should be. oh no. your new boss seems cool, but she might not be sweatpants cool. not quite ready to face the day? that's why we're here with free hot breakfast. book at hampton.com for our price match guarantee. hampton by hilton. little things can be

in the midst of watching the european banks and deutsche bank, do they tell new york deutsche bank what to do? steven: i think when you look at deutsche bank, and i imagine with any global organization but particularly deutsche bank, there is always a question of who is in charge. it is new york that is more in charge than frankfurt in terms of compliance with people who were like elated who were not were notegulated who able to talk to regulatory issues anyway. deutsche bank has always been a wide conglomeration of different centers of power and that has always been a problem when you talk about compliance and do not have oversight. tom: thank you so much. we will get that story out again on twitter, just extraordinary. radio up, on bloomberg later. this is bloomberg. ♪ the biggest week in television is almost here. xfinity watchathon week. starting april 8th, enjoy free access to the best shows and movies from hbo, showtime, epix and more. what! whether it's more jaw droppers, standing o's upon standing o's or tv's biggest show stoppers. get more into what you're into. get ready to

merger with deutsche bank calls problems -- deutsche bank cause problems? peggy: we can see there's a lot of blowback already in case it causes job cuts. david: bob, we talked to you about financials. do a compare and contrast with europe. how much of this is a bigger symptom with european problems as compared to the u.s. -- iner: in 2000 2008 and 2010, they loved it. that never happened in europe, and these problems just continue. alix: just look at this chart. bloomberge inside the , this is as soon as the financial crisis. .his is jp then unicredit is the white line, georgia credit is the blue line. much of this is the ecb' fault. guest: it is europe. it has been horrible. there's no growth. there's no lending. the ecb has been forced into that corner, and i come back to -- to the balance sheets. alix: bob is really passionate about that. [laughter] a $1 billion,come and not all of it, but a fair amount of the problem, will be be that. they are essentially saying we got to go back to basics and really make sure we are strong in japan. are reporting has b

deutsche bank decided we are going to pounce. we are going to grab all the business that our rivals said becomeshed and we will europe's answer to goldman sachs. we will be an investment bank. that was the decision, the chance they took in 2012 and these years later they are left in a situation where they have restructuring and reorganizing of this is something they should have done six years ago. did they get it wrong because the market did not come to them like they thought it would? is that an economic problem in europe? is it mismanagement? where did it take a left turn? edward: it is all of the above. what you have is a situation of disorganized,s fragmented in terms of organization. it is a bank but did not know what was going on in far-flung units. that led to legal scandals. that his confidence. the shares get pounded. that is one problem. you have ar side, weak european economy. remember interest rates went to zero. that is bad news for a bank that depends on interest income to bolster its revenue. it did not get help on

jason: how to help germany's biggest bank, deutsche bank. editor joel weber joins us now. carol: why focus on germany now? >> one reason is that brexit has taken up a lot of care when we talk about europe. we know brexit has been kicked down the road until october. germany is the biggest economy, and we are starting to see three elements, one is the economic story has gotten tepid. another is the political story. ms. merkel is the most powerful real political figure europe has, and there is a succession story. the third is the banking story, deutsche bank being a once upon a time bank of germany, and became an international bank. now it is grappling with the -- what size it is supposed to be. jason: wide-ranging implications in germany and the global financial system. ed robinson brought us more. >> these banks are the twin pillars of the commercial banking system in germany, so they are vital institutions. they are also weak institutions, both banks have struggled to generate revenue growth, profitability, to show the kind of strength and resilience a lot of european bank

deutsche bank is a very international bank. it wouldtition threat create, i do not think that would be very big. it is another concern for the bank. a stronger rival in the home market is a problem. guy: it has been a busy week. steven arons joining us out of frankfurt on deutsche bank. spain, elections will be held this sunday for the fourth time in four years. joining us from madrid is bloomberg news spain's bureau chief. charles, who is the frontrunner and you might jump ahead this weekend? answer ishe simple the frontrunner is the incumbent socialist prime minister. he has built up plenty of momentum going into this final week of campaigning. the opinion polls we saw before the blackout on the publication of polls on tuesday were showing -- clearly is the frontrunner going into this process. he has been able to reach out skillfully to voters to his left and to his right with a message ,bout scaling back austerity pulling back the crisis years spain had in an early part of the decade, and stressed the need for dialogue over

this is a deutsche bank concern. you were reporting last week that they need a plan b if this is not happen. there are planning on raising value as a way to allow deutsche's to access the capital it may wire to satisfy regulators. this is more about deutsche's then it is big banks in general. matt: we heard about the plan b for deutsche bank, owned what you think about the plan b for commerzbank -- i wonder what you think about the plan b for commerzbank. does it make sense? does it make sense for someone from the bank from italy or france to try and make the acquisition work? basis, theategic commerzbank franchise being so it is one many lenders in europe with like to have in its portfolio. whether it is a french bank or ing put its hat in the ring, i'm sure there will be considerations. clearly, there will also be political considerations. i do not think necessarily that the government having tried to find their own solution, would be willing to throw commerzbank to another. there is going to be as many political c

by hiding everything, and even now his personal attorneys are suing deutsche bank. you have to say, what is the congress going to do? they have to protect the country. not only from this president but from what this whole thing sets in terms of precedents for the future. how the president can delay and distract and move away from our constitution. it is dangerous. >> all right. thank you, guys, for joining me. i want to talk about venezuela. massive upheaval in venezuela today asle have been following. protesters taking to the streets in an attempt to oust nicolas maduro. the interim president was elected back in january. now moments ago, lester holt talking to secretary of state mike pompeo. watch this. >> have you or anyone in the administration spoken to mr. guido? we've continually spoken with him all throughout this. you see he is in the streets and we're not seeing him since this morning the russians told him to stay. >> you can catch the full interview on "nightly news" tonight at 6:30 p.m. eastern. coming up, the most powerful democrats in washington hit bac

on tax returns, with deutsche bank. there is some unprecedented opacity with his financial situation, ooze where he's getting his money from, and it should be considered intolerable. there is a reason why this has never been allowed to happen in this country before. >> i want to ask you something that we've talked about here. we try to be very careful. part of what you exposed already, from your own primary reporting, that even the bank knew better and had reason not to go forward. that looks bad. then there's stuff we don't know. we don't know, as i understand it, what has happened to the debt that deutsche bank holds against donald trump, correct? in your reporting and given the congressional oversight issues, having this much debt. is it possible? is there a concern that some other actor, entity or government connected entity would try to buy up this debt to have leverage over the sitting president? >> i wouldn't say concern. i think there's curiosity. i think it is part of what congress is looking to understand bett

deutsche bank, another story with the m&a. once you start to get the bank earnings, i think that could be quite important. vonnie: what are the companies you will be looking to to get a read on brexit and how those negotiations and lack of decision-making are impacting companies decisions when earning season starts in britain? >> we do not want to talk about , but brexitoo much -- not even the biggest banks, we can to look at the smaller banks, the once more exposed. , which at lloyds bank are much smaller than hsbc and barclays. also the homebuilders have been badly hurt by brexit because economic slowdown hurting the u.k. housing sector. those are the sectors, financials in real estate, we look at for gauges on how brexit is being taken by the market. vonnie: wonderful. that is bloomberg's joe easton from our london studio. now to a bloomberg exclusive. our colleague talks with the saudi energy minister today. here's what he had to say about saudi aramco's make a bond sale. >> the roadshow is ongoing. i think the deal would

apparently wants more time apparently apparently wants it aside more quickly while deutsche bank wants to take more time in the talks german media are reporting that an initial decision could come as early as this weekend or latest on tuesday. when come out the bank executive board meets pointing to a resolution that could be achieved quite soon one way or the other. i mean what would be the best to deal with deutsche would unicredit be a good partner for commits. and this new is with the credit came out there is actually shot up more than five more than five percent before a trading opened here today and there's still trading higher at the moment. so this shows you that there is some excitement here on the news and analysts are also saying that it wouldn't be the worst idea either unicredit already has a big footprint in germany it owns a hippo for ryan's bank this is a bank that is a very strong in the south of germany at the which is of course has which of course has a lot of industry now european banking officials wanting more consolidation in the sector might look a more favorably

it is still the same as deutsche bank in a lot of ways. they have not convinced anybody yet that they will turn it around. caroline: coming up, pinterest is going public, but did the virtual corkboard wait too long to go to market? this is bloomberg. ♪ caroline: time for a look at what stories are trending. user -- users were reading about a strategist at jp morgan who said that equity investors have been worried about the wrong yield curve. the investor advised looking at the spread between the 10 and the two-year instead of looking at the inverted three-month treasury yield. bloomberg.com has a story on elon musk, who may have overstated his twitter restraint. muska told a federal judge that he was dramatically reducing his tesla tweets, but has sent more in march than going all the way back to june. and, tictoc on twitter has reported that a new study finds that a bad diet is much deadlier than smoking tobacco. poorllion people died by a diet in 2017 based on low conduction -- low consumption of grains and fruit and high quantities of

from deutsche we are not talking about the big footprint to deutsche bank having in london we are just talking about probably overhead costs reduction, which means a lot of administrative jobs to be gone, and also, probably having of the amount of branches in germany. it will not be the high ranks, which will bear the most of the job cuts it will most likely be, yeah, sort of in the branches. as i was saying, the administrative side of things, and those who are organizing the unions i caught up yesterday in berlin also with the person who is responsible inside the trade union for the banking industry and also has a seat in the supervisory board of deutsche bank take a listen to what he said about the planned mernler. >> we are clearly opposed to possible merger between commerze bank and deutsche bank >>> to be fair, we have seen a lot of business decision in other industries also against the will of the labour interest in those companies i also had to ask him if he thinks that labour is really, yes, sort of strong enough to oppose a deal and kill a potential merger between commerze ban

president donald trump tells deutsche bank not to hand over his financial records in an attempt to block the congressional subpoena. also on the show investors though just an earnings report from apple i phone sales are down but services are up. and billionaires playground monaco want to go green and not just from all that money. until now the law in berlin while the leader of the world's most powerful country is suing germany's flagship lender donald trump hopes a lawsuit will stop the torture bank from handing over his business records to congress democrat what democrat led committees subpoenaed the documents last month betting that if the president has financial skeletons the german bank knows where the bird. the lawsuit is the trump family affair with the president's three eldest children also following suit against torture bank. germany's leading financial institution provided massive loans to the trump organization when other banks were put off by the president's multiple bankruptcies. the congressional committees are interested in where the door to a bank was expecting something i

if merger with deutsche bank does not happen. how much of a problem could that create for the german export industry in the event of recession? very important for germany in particular, for a country that is bank based in which companies really rely on bank financing and in which small and medium-sized enterprises need support from banks going abroad. it is very important they also had a bank at their side. at the same time, even with a failing merger, there would still be deutsche bank and potentially another or more than another bank being active, so still, the support is there. say the german corporate sector overall has been saving on an aggregate basis. if the recession should arrive, they would come with a very strong foothold. >> great to have you with us, the president of the european school of management and technology. to the breaking news from the last half-hour. this after the u.k. competition and markets authority blocked the deal. you and macintosh who oversaw the investigation, concluded there is no effective way o

,eutsche bank has the highest as talks continue between deutsche bank and commerzbank. manus: the question is whether anybody has dirty laundry like the market had in 2007-2008. , one of ourk preoccupations is liquidity. i'm just curious to jump off the consolidation story, commerzbank , deutsche bank, unicredit maybe in the wings, want to ask an equity question. from a liquidity point of view, what's going on on the lens that -- on the landscape? the bid offer spread on highball data, it's getting a little bit vol data.high i don't know if it's a factor of consolidation. over the course of the last five years, you've seen material change in the way to foreign-exchange market works. you can see pretty well from late 2014 onwards, you suddenly get these bursts of incredibly high volatility. about the flash we had in sterling back in 2016. had inflash crash we sterling back in 2016. as soon as an event emerges in that twilight zone, it disappears entirely. environment,tility when it's hard for people to make money on a day-to-day basis, that desire to pull away from the m

>> and deutsche bank is not just any old bank. >> right. >> deutsche bank has been fined repeatedly for money laundering, including money laundering in connection with russia. when i wrote a profile of adam schiff after he became intelligence committee chairman, the first thing he said he was going to do was subpoena deutsche bank to see what the relationship was financially between the president and russia. if that could be determined through the deutsche bank records. now he's doing it and we will see what the record says. >> and this does go into the larger question, as jeffrey points out, of the trump organization and whether it was involved in laundering money from the russians and whether the bank was a part of that. >> deutsche bank issued a statement, i will read it to our viewers, deutsche bank is engaged in a productive dialogue with the house financial services and committees and we remain committed to providing appropriate information to all authorized if you have questions concerning the investigative actiblts of the committees we would refer you to the committees themselve

murder talk between deutsche bank and commerce bank are breaking down. we caught up with the deutsche bank cfo earlier today. this is bloomberg. ♪ andy: deutsche bank commerzbank are ending talks for a potential merger but that does not mean it is out of the question down the road. bloomberg spoke to the deutsche bank cfo earlier today. in overtimeo industry consolidation will take lace in europe and that deutsche bank wants to be a part of that. the timing and the specific form of that remains to be seen. we have talked a lot about doing our homework to continue executing on our plans, executing on the restructuring of the company, improvement on our shareholder returns. shery: joining us for the latest on this story is our own reporter. how much of a surprise that it was called off? >> never lots of problems associated with the merger. as talks intensified, more problems came to the fore. tons of job cuts, labor unions upset about them, restructuring. the question now is what is next for the firms. amanda: and what is the answer to that? we got the i

let's get back to the drawing board for deutsche bank. germany's biggest lenders scrapped plans yesterday for a takeover of commerzbank. today, it cut its revenue target as well. a sign that something needs to be done to revive the beleaguered institution. if you were a shareholder, you knew that already. joining me now is the chairman of the finance committee. she has argued a merger would not solve the problems in germany's banking sector. maybe this is the good outcome. really one of not job losses or one of shareholder losses, but one of needing an engine for the german economy. i asked yesterday whether they would continue lending and whether growth would continue. isn't that the most important issue for deutsche bank? >> of course it is. it is always the crucial issue. especially -- my understanding is they will continue to do that. if this is what they are looking at, i fully agree, problems are not solved. the political pressure was very high. anna: let me ask you about the future for commerzbank. you previously talked about how y

president to investigators and plans to continue doing so deutsche bank said it would have by by all court orders related to the probe. yes carthage joins us now from new york and it's good to see you now deutsche bank has agreed to cooperate with the investigation but can touch a lawsuit actually stop it from handing over the chumps the trunk family's financial records. it's not so much about the lawsuits itself a dodge a bank is sort of caught in the middle of a legal power struggle because that is the big question if in general this congressional committee has the authority to actually force a banker to hand over those information as far as i understand about may sixth bank was ready to give at least them some details and now the trump organization and the president himself and his family are trying to block this so a dodger bank overall i don't see it having such a tough time of getting any problems with this case they're basically just waiting and seeing what the legal basis is and the fact that deutsche bank was pretty much the house bank of donald trump was basically because m

rbs and deutsche bank also to look forward to as well. the first of its peers -- it appears as though the numbers are not as bad as some had anticipated. their equity revenues are marginally positive. fixed income still down 13%. as he put it, it is a relative outperformance, and they are gaining market share, in that space. it will be interesting to see what color and what picture this paints for the rest of the sector as we head right into the heart of earnings season this week >> jewel really interesting intw there, and interesting to see shares reacting to the beat versus expectations. now, shifting gears away from banks, another stock in focus today, s.a.p. has set new medium term profit targets despite reporting a q1 operating loss. the german software firm is aiming to boost its operating margins by 5% through to 2023 by expanding its cloud operations s.a.p.'s loss in the first quarter came mostly from a restructuring charge activist investor elliott management, though, has disclosed a stake in the german firm and backed s.a.p.'s s

what do democrats want deutsche bank to give them now? they have been asking for documents on the relationship with trump for a long time. we know that deutsche bank, before trump became president, was the primary lender for him as a real estate developer. they still have about $300 million in outstanding loans to him. they haven't extended the new loans democrats obviously want to use this to find out what is going on. they are presumably hoping to find some traces of russian meddling. >> deutsche bank says it is cooperating, right? we have heard this described as a friendly subpoena. is this a problem for the bank? >> i'm not so sure. they actually wanted to cooperate for a long time but given the constraints on talking about the client relationship, especially one as important as this one, they were never able to. now that they have been served a subpoena it is a legal requirement for them to hand over the documents so i think for them it is a relief -- they want to put this behind them and get the documents out there to the house and

stance. >> deutsche bank must cooperate. this is not a thing the president can oppose as he tried to do in other avenues. deutsche bank is going to turn these documents over. and trump is likely going to argue that even if he did inflate his assets, that it was a reasonable estimate, that there are many ways of valuing assets and that even if they were inflated and even if it was wrong that the bank never really took them seriously, never really relied upon them or those particular inflations when the bank issued a loan. so that might be what trump says in defense. however, any time, any time a citizen has a bank turning over his or her records to an attorney general or law enforcement agency that's always going to be a problem. >> thank you. >>> still ahead, everybody, we're learning new details about the suicide bombers involved in the coordinated attacks in sri lanka. >>> and candidates make a pitch to women of color. >>> those stories and a check on your weather when we come back. sometimes, the pressures of today's worl

deutsche bank has to explain how it will increase capital to get the deal done. i don't think qatar will be enough. the government is likely to be a part of this new bank so taxpayer money is at risk, too big to fail is at risk. -- it willnk we will mean less competition and from a business perspective, five to 10 years to get this integration done. synergies are too old by then and i.t. is too old by then. matt: at least five to 10 years. deutsche bank has been integrating postbank for a decade and that is nothing compared to a commerzbank purchase. qatar owns 5%, the government owns 50% of commerzbank. would form aa this national champion and meanwhile, germany is supposed to be behind integration of the european union. why wouldn't they push for more cross-border deals rather than creating these big strong national champions? danyal: that is an interesting point you make because macron is still waiting for an answer from germany. what is our vision on how to develop the european union from a financials perspective? i think the top job of the minister of treasu

banks, but deutsche bank also in a category all its own. rachel: it's had an awful lot of headline risk over the last few years. it's really struggled to break through from that. if you look at the performance of financials, last year was pretty terrible for european financials. this year they have been more on the same pace, but this news of merger talks breaking down can only be a negative. but i would be looking for going forward is what happens with dws group, the asset management business that deutsche bank spun out a couple of years ago. they are looking to see if they can get merger talks going about being part of this asset management consolidation. it seems like ubs might be interested. it will be interesting to see. it shows you how much scale as needed to be a success in asset management and banking today. david: is it also a systemic story? if a prominent bank were having this here, the fed would be worried about the systemic story. michael: we are talking about a bank that is not profitable, but they are not in any particular t

deutsche bank arguably could be in that connection. let's focus on deutsche bank from a different angle. there asset management division is said to be looking at potential other mergers. needs to find a way of streamlining its business and potentially raising a little bit of money. steven arons joins us from frankfurt after breaking the story. walk us through the details of what we know about how these talks are ongoing at the moment. steven: it is an interesting situation, obviously. we have the merger talks at a level between deutsche bank and commerzbank, another german bank, and a subsidiary, dws, now in exploratory talks with other asset management about teaming up. , but unlikely to be a sale each bit of deutsche bank seems to have its own little plan to grow, and dws certainly needs to grow to scale business, and i think that is where we are at now. vonnie: so what happens next, steven? steven: the ws is in talks. it is -- dws is in talks. it is unlikely they will make a decision on this before the commerzbank deal is decided. t

president donald trump is to sue deutsche bank he wants to stop it from hunting over financial records by the banks dealings when he was a new york real estate to mogul congressional oversight committees subpoenaed the documents in much. so where the lawsuit is a trump family affair with the president's three eldest children also filing against deutsche bank germany's biggest lender was a major financer to the trump organization when other banks were put off by the president's multiple bankruptcies what the congressional committees are interested in is whether secret russian sponsors were involved or it should bank was expecting to win greater influence in u.s. politics germany's flagship plan to help the trump organization finance multiple projects to the tune of more than two billion dollars that includes trump hotels and casino resort in atlantic city the trump international hotel and tower in chicago a golf resort in miami almost a billion dollars for a forty three story skyscraper in new york and the trump hotel in washington d.c. the congressional committee ordered deutsche bank

with a much bigger competitor for deutsche bank than it had been but whether the solution is to get deutsche bank and two to fuse instead well that's still a controversial deal especially the prospect of the loss of thousands of jobs. german media are reporting that as early as the weekend this vision could come or latest on tuesday when the board meets so either way investors are set to get a resolution in the next days or at least that's how it looks for now. you need to be a good little. bull speaking about their reactions well the shares of come out front actually rose on the news and they're still trading higher from what i can see showing that there is some excitement of for the deal and you know analysts do say that it does make a degree of sense especially because it already has a foothold in germany with the ownership of super for ryan's bank but the challenge there is going to be potential resistance from the german government it might not want to see one of two of its biggest lenders suddenly slide in foreign ownership and that's going to be something that unicredit will

deutsche bank's investment bank has been troubled for quite some time. for the last year, we have heard a cost-cutting story from deutsche bank, but investors are going to want to hear how the .evenue story is >> of course, we have seen european banks falling far behind wall street. >> it's funny you say this also because u.s. banks are also expanding pretty aggressively into europe as well and in light of brexit and whatnot and all these changes in germany, it is interesting to note that morgan stanley, bank of america have all been increasing their presences. as european banks have been struggling, at the same time, you see the u.s. growing and also getting a little bit lighter on regulation here, .iving them even more headwinds >> thanks for that. gets china's president ready to sell a revamped version of his signature infrastructure plan to global skeptics. we speak to an eu vice president. this is bloomberg. ♪ i'm all allen in sydney. shery ahn: you are watching daybreak australia." chinese president xi jinping will defend his flagship infrastruct