francine: the algiers accord. saudi arabia abandons its policy to focus on high oil prices. opec strikes a deal on supply. game.ame draghi says european banks should focus on fixing their own problems rather than criticizing the ecb. and the cold front from california. the debate to cut off wells fargo ahead of the testimony to the house. can the ceo weather the storm? welcome to "the pulse," live from london. i am francine lacqua. we have a great show lined up.
joining us, the chief investment officer guy months in. the first we bring you an interview with the nissan chairman, coming up in a few moments. first, to the markets. stocks rallying in europe and asia after yesterday's surprise announcement of an opec deal to cut crude outputs for the first time since 2008. that triggered the biggest jump in five months. india shares up, currency and bonds falling. india shares are having an impact after they attacked terrorist targets in pakistan. we saw a little bit of movement in the yen on the back of what governor kuroda said. now let's get straight to the first word news with nejra cehic. nejra: oil has stabilized after opec agreed to reduce production for the first time in eight years, surprising traders who had expected lenders to maintain output.
crude surged yesterday after opec agreed to cut production to a range of 32.5 million barrels per day. the committee will recommend limits in november with their ran exempt. stocks in india and the rupee have fallen after the army said it had attacked terrorists in pakistan. the director general of military operation says heavy casualties .ere inflicted he says the operations have now ended and no more are planned. california, america's largest issuer of municipal bonds, is preventing wells fargo from underwriting state debt. that is after the company admitted to opening potentially millions of bogus customer accounts. will testify ceo before the u.s. house financial services committee about the scandal. he has already given up millions of dollars in stock to quell
criticism. the volkswagen ceo says he would like a second look at the u.s. department of justice by the end of the year. he spoke to bloomberg at the paris motor show. >> any figure is too big, whatever it is, because we made a huge mistake, we admitted it, and we are going to pay for that. i can't give you a figure -- we will just have to wait and see. commerzbank is higher this morning following a report that it is preparing to shed 10,000 jobs as it seeks to shore up profitability. the newspaper says that false layoffs will be included in the packaging measures that will result in 100 positions being eliminated. they are under pressure to counter a slump in earnings and scale back a year profit target. global news, 24 hours a day, powered by over 2600 journalists and analysts in more than 120 countries.
i am nejra cehic -- this is bloomberg. francine: thank you. the paris motor show is underway with the emissions scandal looming large over the auto industry. let's go live to the french capital where caroline hyde is joined by the nissan ceo -- over to you. caroline: francine, thank you. here we are, new electric vehicles -- the supply is there, is the demand? >> it is coming. as you know, the growth of the electric car in europe is significant. it is unbalanced in countries depending on the support they are getting from different governments. but it is growing. it is not growing as fast as you marketike, but today the is the chinese market because of the total support given by the chinese government for -- but this is the
most sold electric car today in we will doubley the real autonomy, and it will also strengthen. we are talking about doubling now, not in one year or four years. we are talking about sales of the car today, 300 kilometers in urban and suburban drives. caroline: where is the demand coming from in europe? >> the consumer is looking at admissions, is looking at onlyation, and it is not looking at what's happening today but also at what may happen down the road because he is occupied with the resale value. caroline: with the scandal that has enveloped volkswagen and others, has that driven demand for electric vehicles? >> i don't think so. i think it has probably driven demand down for diesel because
in the first six months of 2016 the percentage of diesel cars in europe is below 50%. from 50 63 years ago, now below 50%. that means the consumer is starting to go toward other technology because we suspect that emissions will be tougher and that the cars will become more expensive. technologyot of thanks to the alliance -- the fact that we are sharing a lot of technology. we can move from one to the other and obviously we think this is a good technology which has a role to play, particularly because consumers like it and also in missions. -- also emissions. we will have to consider the reality that there will be a lot of additional costs on diesel and a lot of scrutiny on admissions. caroline: oil prices might jump
on the back of an opec deal -- will that affect you? ? >> i don't think so. this is not a competitive game. if oil goes up it is up for everybody. it's not so much a big element in our decision -- on top of this it is unpredictable and uncontrollable. emission constraints will become secure so when we look at the medium and long-term -- caroline: was also unpredictable as consumer sentiment in the u.k. how is that affecting your plans in the u.k.? >> i don't think we are seeing it today at the level of our sales were presence. we are obviously a little bit afraid that the market in the u.k. is going to start to be colder, probably stabilized, but it was a strong market for the past years. what is difficult is the uncertainty -- what will be the condition of the brexit?
when will the uncertainty be removed question mark i think things will go back to normal. caroline: what about your ambitions in terms of m&a? are you looking at proton? >> no, we have nothing to do with them. we are more concentrated into making the nissan-mitsubishi deal happen -- we are in the middle of our due diligence. this is still unfinished so we can't announce our common plans about how to make the relationship productive. caroline: thank you very much for giving your time today. that was the chairman of nissan. back to you. francine: thank you, caroline hyde. 20 coming up, including crude capitulation. opec agrees to the first output cut in eight years. then, druggie denies responsibility for europe's banking troubles. we discussed monetary policy risk.
priest that the decision was taken. >> very good agreement, excellent agreement. i am very happy after two and a half years that we have had a constructive agreement in opec and it means that opec can overcome many very difficult situations. francine: let's get more with our managing editor fo energy and commodities. . let's kick it off with you. this was largely unexpected. maybe some traders are saying they will come to an agreement until the end of november, but this was a saudi u-turn -- why? >> i think it reflects the fame being -- the pain being felt in the saudi economy. they are burning through billions in foreign exchange that they can't afford to pay.
it became clear that they cannot live with prices like this and they felt they needed to change tack. francine: how do they know that this will work? you have a huge producer in the u.s., so they lose market share, editor doesn't affect the long-term -- they are worse off than yesterday. >> it's a risk. what the saudis would say is that it looks different today because there are a lot of battles that have come and it will take a while for it to come back. there's also a lot of non-opec production that has come out of everyone in opec is producing as much as they can , which is probably the right time. francine: i want to get to your thoughts but this is basically the amount of production -- in the crude price, the white line is the opec output. where do we see it going from here? i guess we are still looking at
that 35-45 range for the price of oil, night? -- right? or is that too bold a call? >> well, goldman said this morning 7-10 which is one of the but we areh calls, looking at prices in the low 50's likely. francine: what was the mood like yesterday? i don't know if you have huge bats, but it seems that after opec seems to regain control a little bit or is at least trying to,. >> that's right. i think it is great news for world markets. it's hard to believe that it was 2008 when we saw the last opec production will cut. what i think this will do is put a firewall between oil at the 40-50 dollar range, and that is a huge relief for some of the
economies which are really facing deflationary pressure. we saw the extraordinary situation of the nikkei and the yen rallying -- for 30 years of my life they went down when oil went up. i think it's a significant day. yousef, the deal has been a long time coming, and then it was largely discounted. opec members seem to find the deal on the same page -- was there a sense of relief? were people not believing it at first? yousef: absolutely. four hours after the doors closed, no one was expecting an agreement. even though we did get a sense of optimism from some of the ministers beforehand, they came out and said we have an agreement -- we were like, excuse me?
yes, we are going to be targeting a new range. there are still a lot of question marks, because that is what it comes down to -- who has to actually shoulder those production cuts? that is what they will do next. they will set up the committee, reconvene in vienna, and make that decision. that is the more difficult decision. then there's the timing -- how long will this freeze last and what are your benchmarks? and will you sit down with non-opec, with russia, to really inen that agreement, rain supply, and have a real impact on the market? barclays has described this as a saving measure but there is more work to do for these oil producers. saudi arabia of course,, is feeling the pressure from the liquidity being sucked out of the saudi economy. arguably, they felt they had to move. there was much more at stake and
this was about opec reestablishing its credibility in the global energy market, and more importantly, its potency and that the turbulence. francine: thank you. will, is this an inflection point for opec? but then the devil is in the detail. >> all those issues we have been 2008 are people sticking to their quotas -- how do you measure? there will be a lot of arguing that will be difficult but ultimately what matters is that saudi arabia changed its mind and saudi arabia will be taking it out of the oil market. argue thatou could the biggest problem that the world economy has at the moment is inflation, which is why we saw the yen on the move on the back of this agreement. what it really do that much to inflation? >> i think it won't do that much on the upside. what it does is shut off the possibility of a downward slope.
that itr big thing is probably secures the dividend flows. i think most of us will say we will trade through this and there won't be cuts. francine: all right. gentlemen, thank you so much. up next, what do negative rates have to do with the ecb? we discuss monetary policy risk factors. this is bloomberg. ♪
francine: this is "the pulse," i'm francine lacqua. let's get to the bloomberg business flash with her change. nejra: commerzbank is higher this morning following reports that it is preparing to shed 10,000 jobs as it seeks to shore up profitability. the newspaper says that layoffs will be included in the package of measures that will result in one in five positions being eliminated. the bank is under pressure to counter a slump in earnings and has scaled back profit targets hurt by volatile markets and negative interest rates. areit suisse and barclays in separate talks with the u.s. justice department over the top mortgage bonds that set off the financial crisis according to people familiar with the matter. they said a credit suisse deal could be announced within several weeks. the u.s. has already asked deutsche bank for $14 billion.
credit suisse, barclays, and the doj declined to comment. event driven says hedge funds are most at risk of shutting down. the head of the world's largest publicly traded hedge fund said that in the face of low returns, complacency will lead to outflows. he also discussed the impact of central banks and potential economic shocks on the industry. rates, world of very low the reality is that you start the year with more than the whole and people will find it difficult to take the risk. you need to be tolerant. nejra: and that is the bloomberg business flash. francine: thank you. don't blame the ecb president , who yesterday defended his policy. >> i don't share this view.
-- is a bank represents a sustaining threat the eurozone, it cannot be because of low interest rates. it has to do with other reasons. francine: still with us, -- yesterday we hosted the summit here at bloomberg headquarters, and i have a panel on baking, headwinds, and i have three different guests. once at the problem is i don't know how to invest because i don't understand the business models. the other one was blaming it on negative rates. the other one was blaming it on growth and uncertainty in italy -- which one is it? >> i think the sentiment is down to negative rates. as we have seen with deutsche bank, it's not so much a balance sheet crisis, it's not so much a liquidity crisis. it's just an absence of profitability -- where do you go for more? you can't make money from the interest rates spread like you used to.
loan demand is relatively stagnant. and of course the german banking market is capacitive to support local players. there's just a simple absence of profits. what that is doing is causing investors to continually marked on the stoxx because the eu just keeps falling. francine: do we need consolidation? what would it take you to invest further? >> i think the elastic band is stretched. we are at a 25 year low of the price of banks versus a food company or beverage company. we are extremely stretched. there are some successful models with extraordinary cuts to low-cost income ratio and a major efficiency drive. a relatively small change in sentiment could cause some very exaggerated moves in share prices, and i'm not sure we are so far away. francine: really? that would come from where?
sentiment -- unless the fed hikes and we start normalizing and people start feeling better, i don't see the shift in sentiment. imagine your portfolio today as 80% or 90% low rates, most of your portfolio would suffer if rates went up. banks have one extraordinary feature -- they will go up in their dividends will go up. so they are a very cheap insurance policy, and they pay a yield that is very much -- francine: but the fed may hike a touch, and that would help the banks of the margins. but the ecb is nowhere near normalizing. there's political risk, no growth, low-inflation. >> i personally thought mario draghi was more hawkish. there was no discussion of lowering qe or forecasts, and he was fairly defensive of his underlying strategy. cthink we are just on the
usp -- if you look at the regression. francine: this is the hallelujah moment, right? but what do you do in fiscal policy? we have been talking about it. you can't build that many roads, and that wouldn't take 15 years to see benefits from. >> if you just look at the politicians, at kuroda, traditional railways, trump and clinton talking about big fiscal atgrams, we could be sitting this desk in the years time and wondering why didn't we see it. francine: because it, but we can also be looking at the u.s. and the u.k. having to renegotiate trade agreements. we could be in a recession the year from now, can we not? >> i think what we all know is monetary policy is the tired engine and is showing it. francine: thank you.
♪ welcome to "the pulse live from bloomberg headquarters here in london. i am francine lacqua. that gets a nejra cehic. opec lower prices, surprising traders. crude surged 5.3% yesterday off of opec's a great cost production to arrange 33 million barrels a day. before gathering in november with iran capping
output. stocks have fallen after an army said it had attacked an area in pakistan. heavy casualties were inflicted on militants assembled to infiltrate into india. -- operations have not ended now ended. california, america's largest issuer of municipal bonds, is wells fargo from bond and investing work. the ceo has artie given up $41 million of stock and salary an attempt to quell criticism. the volkswagen ceo said he would like a settlement with the u.s. department of justice and civil authorities by the end of this year. he spoke to bloomberg at the paris motor show. big,y figure is too
whatever it is, because, you know, we made a huge mistake am a we admitted it, and we are going to pay for that. give you a figure. we will have to wait and see. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am there a chance. this is bloomberg. francine: thank you so much. if we continue to delay, we risk having to undertake considerable policy paths later on. a surge in the s&p 500, bull markets, plus, even as valuations jump, corporate profits are weighted, so how sustainable are these equity valuations? let's get back to our guests for monson, chief investment officer at sarasin and partners.
first of all, there has been able market for a very long time. earnings are ok. an extraordinary market. it is one of the least volatile since the 1960's. we are trading on about 22 times , which is high, particularly given earnings across a number of sectors. what a scribble now is to make the switch from staples, telecoms, and tobacco, which really have held this market up, which are trading off the graph valuation, negative onto the three areas that have not really driven market materials,-- banks, will equities. francine: at the end, rally is spurred by what? guy: when we see the election over -- i think there is too much uncertainty with trump, honestly -- but the prices are a
step in the right direction. to get the oils and materials to rise, this is very difficult, but perhaps that is where the cavalry comes to rescue the u.s. market, some upgrades in the oils and material stocks. francine: wells fargo -- completely unrelated -- we are just getting some headlines from commerzbank. the shares have been climbing today. i think they are little bit lower as we speak and we will get the share price up for you, but they're cutting 9600 jobs. they are restructuring. this is something that we knew. costs, they will shave off 1.1 billion euros of cost. dividendpending its payments for the time being. i imagine we have a sharp reaction. it is actually gaining 0.2%. it was down quite significantly
to it i would like to get it up for you here if i can because the share price reaction spread away was quite significant. aain, they are giving us strategy update, and when they announce the dividends being cut for the moment, we can see oil gaining 2%, guy, and then it lower.harply very quick reaction to commerzbank. it seems like dividends overall, talking about deutsche, or in jeopardy. why: to the european banks at all? hold onto the european bank settle? guy: there is a problem for zero fornegative rates banks. commerzbank has already made quite a lot of cost cuts. in the eight years in the recovery to be cutting dividends is a desperate measure for german baking. -- banking. i think it is somewhat limited to german banking. there is a lot of competition.
they relate to the party in terms of cutting costs, so this is the new bank. it is a thin line, digital, domestic consensus bank that aggressively cuts costs. francine: the things that when you look at u.s. banks, u.s. banks to be tough jobs, so now they are in a much better shape. the regulator on hand to give them tarp, right? guy: that is correct. it turned out to be a little better-than-expected, but most importantly, they have not got that you have every morning when you open up your treasury operations in europe. back to thet's go u.s. let's say the fed does not hike at all this year. is the dollar positive? guy: what i hope we get is the trade range -- this is really
perfect for the u.s. forecastinglot more because of the stability of the underlying currency, but it does not move far enough to figure a massive rally in commodities and have some prices over the s&p 500. francine: apart from equities, what i do not understand is why zero-growth, zero environment where commerzbank is cutting 10,000. eight years after the financial crisis. is there anything that commerzbank should have done differently? regulatornk german should have given more latitude to operate with regards to pricing. secondly, i think fiscal policy should have been drawn in so that negative interest rates and qe1 not take on bloomberg telev, and we are streaming live on bloomberg.com, your tablet, and your phone thirdly, they should have done with the u.s. did, which is aggressively recapitalize. monson,: all right, guy
thank you so much, of sarasin and partners. stay with us we will have plenty more on commerzbank. leading to a huge price reaction. for as it will suspend moment. the strategy means it will step up some of the overhaul with 9600 jobs going at commerzbank. we will have plenty more on commerzbank. we will have play more on all the german banks. also coming up, the trunk areat, -- trump threat, crucial italian referendum, then janet yellen and wells fargo. and coming up on "surveillance," an exclusive interview with the philadelphia fed president patrick harker. this is bloomberg. ♪
news out of we have commerzbank this morning -- cutting dividends overspending. spending is the word that used. commerzbank cutting 9600 jobs. we knew they were under pressure. looking at the share price, nejra cehic is that the bloomberg returnable. we have seen a change since the announcement. nejra: that is right. right now, is up about dip here bank basically to suspend dividend payments for the time being. it also says 9600 job losses.
he net numbers to be shed. we did see a knee-jerk reaction with a bit of a drop. it seems to be recovering now. 1.4%. up . we'll get more on what exactly these headlines mean later in the show, but in the meantime in terms of what is happening elsewhere in the market, stocks intraday, we are up .7%. taking the rebound to a third 600 basically, the stoxx has its fourth quarter of gains for the year. if we take a look at the map to see the performance in there he is industry groups, knows a prize that we are seeing energy stocks leading the game. energy stocks up four point percent. you have seen the likes of shell sincets biggest search
february. we are also seeing banks taking their rebound into a second day. you can see financials up almost .7%. of course the reason we are seeing these energy stocks lead the gains -- it is all about that opec informal meeting where members agreed to cut production for the first time since 2008. this did come as a surprise to traders. yesterday, we saw oil have its biggest advance since april, surging 5.3%. right now, we are holding gains, $47.48 forto vti, brent. that is compared with a forecast increase in a bloomberg survey. oil driving a lot of a sentiment in markets, driving that risk appetite. speaking of risk appetite, knows surprise that we're seeing a weaker yen. we are at $101.48. we've actually seen the yen fall to a four-week low.
higherseeing yields move in germany, the u.k., and on the 10-year treasury as well. francine: thank you. a reminder of current bank headlines, when i was running you through the share price at commerzbank, cutting 9600 jobs, this also brings us back to some of the troubles banks, not only in europe, but especially in germany. this is what got monson was talking about. we also have a great editorial by mohamed el-erian, saying what deutsche bank telling european investors, this will be the main part of "surveillance." you can see a lot of the banks after the record low we saw on deutsche bank on tuesday. now recuperating a bit. commerzbank, again, was a little bit priced in because we knew that we would do something drastic. commerzbank gaining 1.1%, and the stoxx 600 bank as a whole gaining.
moving back into today's we have unlikely become the probable. the brexit result shops, fewer , it in the labor u.s., donald trump is pulling ever closer to heller he clinton in the polls -- to hillary clinton in the polls. what does this mean? g usmonson is joinin along with -- guy monson of sarasin and partners is joining farr.ng with john bit lazy because we have been following central banks for years. suddenly we are seeing the negative side effects of populism rising, inequality, and now in banking, a operability crisis in europe, which is suddenly pushing the politicians
back. what we realizes we have a very different electorate, and results that we did not fear to be possible suddenly are the probable ones, and that alters the way we need to look. understand do not your model because there is so much cash out there, and you are actually taking risk. guy: the one thing our model does this to argue perhaps the monetary come in underlying terms, the spreadsheet. i still think it is bullish, though. francine: you have a great oversight. you manage all of our intellectual governments. this is the one hop hot potato, we have the u.s. election, coming hot on the back of the brexit. and we have the german election, then we have a french election, and nothing is certain. what are we on? >> we have learned that we have
become complacent. whether you are investors, central bankers, we all spend our time in capital cities beholden to people like ourselves, and that sort of consensus developed the how economic growth would eventually trickle down. all voters sort of feel like system, if you like, but that is not the case. i think for investors, central bankers, they challenge now, figuring out what exactly is going on. i do not think any of us know right now. in addition to what you said, lorenzlian referendum, he being forced to resign, so seeywhere you look, you potential volatility. for a long time, we thought, oh, it is ok, the establishment will win out. that is not the case. then you have
something that comes out of nowhere like the turkish coup . john: right. theop of the fact of election being unprintable, we have the unknown and known spirit with the cross-border going withakistan, the possibility of things happening too. francine: investors are starved for yields, right, which is why .ometimes they put up a risk unless you have a market that is functioning on risk. will it push politicians to change and actually adopt fiscal policies, for example? is: i think the big change that no matter what the theory says, if the population is behind you, as we have seen in numerous cases, you are not going to be around for any stretches. i think you have got to put a slightly populist veneer onto
the markets to see what change that means. it certainly means if qe and zero monetary policies tend to favor the old and rich in the byiety is suddenly reversed a classic fiscal strategy, this typically is quite good for banks, quite good for cyclicals, and quite good for emerging markets. that is a huge leadership reversal. i do not see it as the reason to get out of equities and return to negative yields. i see it as a cause for a rather exciting rotation, what's will take us to the highly price qe winners. francine: are we doing too much of a little faith and saying populism equals less austerity? john: that is not completely unlikely. i think we have to things. more from us, and in canada, justin trudeau, obviously taking the lead at a
global level. you also see much stronger immigration policies. between the two of them, if you are sort of ambitious, giving a rising power, a cap and immigration, it is not about what you have, and looking at the next in the french presidential election, i would not be too surprised to see the immigration policy with more promises. the lene: and dropping belo pen from her logo to appeal to more voters are you see the coverage you have been leading the last three months have havets to russia, -- brought us to russia, turkey, brazil. what about the foreign policy that is china, what they're doing in the south china sea? is that the overarching big risk? saw donald trump
being elected president, which is possible, the likes of china and russia will see that as an opportunity. what you see with china is interesting. with the philippines, they are deliberately trying to lure the president away from the office of the united states. the question will be -- and you are going to see china, regardless of who is president, expanding its reach more and more to the eastern south china sea. the question is -- who will actually stand up to them? by the time they have built these artificial islands, it might be too late. francine: this goes back to the trump presidency. is it now 50/50 in your eyes? marketsems to be -- the largely are ignoring the implications of a trump presidency because they do not think it will happen. guy: i think the markets are seeing the other two outcomes. if it goes to the
leadership, and two, if trump does get in, a, frustrated by the power in the u.s., and secondly that his bark is worse than his bike and actually he has been pragmatic. that is quite a bit of a risk to take, but nobody is trading against it at the moment. francine: we are getting news out of erdogan, the turkish government. turkey is racing time to eradicate terror from his state. the turkish president speaking in ankara. the three-month turkey emergency rules will not be enough. john, we see it and we saw it with vladimir putin, trying to hold onto power. is this good for europe? it is a difficult relation because of the refugee crisis. is there anything european voters can do to temper an erdogan well at least same time getting him to cooperate?
john: the short answer is no. he is desperate to stop the flow of refugees coming into europe, and that will only work with the battle for aleppo, which we haven't been talking about on all four months are there is a -- which we have been talking about on and off for months. arguably, i think he holds the cards. francine: angela merkel, her is other negative is the banks. do you have concerns, guy, the way the germans eight -- the deals with deutsche bank or commerzbank will put her at risk come the election next year. guy: slightly they are reaping what they sewed in terms of their push, yields for banks, very little wiggle room on the european stage. so it really has to be a crisis. money has to be temporary, and
it has to be done on terms that will be similar to terms applied for an institution. what you can see is he some returns, what u.s. it, and equity state. francine: in deutsche? guy: if it were a real crisis. francine: but with commerzbank, that is not helping. guy: commerzbank is -- francine: different? guy: they have a probability problem because of the yield curve, and they have to cut costs. actually european financials were up. francine: you are absolutely right. thank you so much, guy monson and john fraher. commerzbank reducing 9600 jobs. they are suspending the dividend, yet the share price is up. well, there has been a lot of talk, a lot of pressure on the banks to take action, as your other guests pointed out. they have a probability problem,
and so we are seeing that in the way they are restructuring. there are combining businesses, combining the banking business with the core of the bank and cutting jobs and suspending their dividends, which they have only of course just resumed this year. francine: commerzbank is partly owned by the german government. the repercussions of that -- are there any? will angela merkel suffer because of the fact that she, i guess, is partly responsible for this going on? it is the residual space they have. it is more a reflect some of the ongoing pressure on the low rate environment. we talked a lot about this yesterday with the game we -- the game we had on -- the guess yesterday.loomberg the model is under some much pressure because of rates across the board, and that is becoming basically a sector in which investors are having a row trouble putting money into right
now, and of course raises more problems. they are having trouble attracting equity investors. liza, is there a spillover with deutsche? this is like a the heyday of the speculationhave spirit you have plan b, there was not, the plan was then repeated by the government. help deutsches to bank, that she take an equity stake in it? can change your the find that the doj request of $14 billion is introduced, there has to be some parity on that figure before we really know what the options are for deutsche bank. it is, again, an equity capital story. the company could deal with bigger buffer spirit and a profitability story. without some visibility on just how large is like to be, it is very, very difficult to come up
♪ francine: cut to commerzbank or the german lender will eliminate 9600 jobs and suspend dividends. the blame game -- mario draghi says european banks should focus on fixing their other problems rather than criticize the ecb. arabia, vocusaudi thing on higher prices. opec -- focusing on higher prices. opec strikes a deal. this is "bloomberg surveillance ." i am francine lacqua in london. tom keene is in new york.