tv Bloomberg Markets European Close Bloomberg September 30, 2016 11:00am-12:01pm EDT
close on "bloomberg markets." ♪ nejra: we are going to take you from washington to london and have stories out of saudi arabia and the next hour. concerns about deutsche bank. investors causing some to pull back business and send global banking shares lower. their isights back in no basis for speculation. tv he isbloomberg relaxed when it comes any risk from deutsche bank. he says dividend payments will return in 2018. and it's the final day of the third quarter.
we wrap up the last few months of trading. the holiday rally is not on the cards this year. look for european equities are trading right now. just under 30 minutes to the close. i want to start with gmn. we see a number of equity indices down. the ftse 100 down about 6/10 of 1% if we take a look at what's happening in currency markets, sterling is up for most of the day. up to tens of 1%. but the euro up just 1/10 of 1%. 121.41. we did see some money flowing into the euro off the news of deutsche bank. it has kind of pushed the risk appetite a little bit in the past hour. if we look at sovereign bonds, good looks like a bit of a mixed picture. overall we are seeing money
moving into bonds today on the bid for that safe haven. haveerman 10 year yields been heading for its lowest level since july. that risk aversion was driven by concern about the banking sector. deutsche bank fell to a fresh record low earlier today. the stock has repaired some of those losses. this is the big picture. to take you to the stoxx 600. we are up for the third 8% on ts index. even though banking stocks are down year to date. the stoxx 600, europe's equity benchmark, is heading for its first quarterly gain this year. i want additional you deutsche bank intraday. we started with a drop to a fresh record low. it was down as much as 9%. the stock is actually higher, up
1.3%. just above 11 euros on deutsche bank stock right now. this is basically on traders speculation that the bank may receive lower settlement with the department of justice and the u.s. those claims are fairly unsubstantiated, but it does seem as if investors are reacting to them. if we take a look, this is the stoxx 600 intraday. it is still down for tens of a 4/10th of 1%. julie? over here you can see all the major averages around the highs of their session. we have seen them strengthening as we see a bounce back from yesterday's losses. the month may not still be salvaged. 3169. this shows the changes in the s&p 500. right now it is down just one
third of 1% on the month. it is down to the wire here whether it will be positive or negative. in a month it does tend to be quite negative for the s&p as a rule. even over the course of the day we've had some back and forth action in the s&p that is made it uncertain. as you see, we are again at the high. now at 710 to 1%. one thing that could be expending some of the gains we got, a second rate of consumer sentiment that was better than expected. university of michigan consumers index. it has been up and down over the past week, but you can see an uptrend in the past month. a reversal of a couple of months of decline. that is something that potentially could prove helpful. at the same time we got that number this morning, we got consumer spending numbers. in the month of august we saw no change.
if you look at personal spending. that is something that may be counterbalancing that positive sentiment to some extent. in the future if it's which is what is spending, to translate the spending, that would be a positive thing. if you look the consumer staples, we are seeing a list cosco.lift because of sales rose by 3%. kroger is up, walmart is up as well. the consumer, when it comes to staples by these measures, relatively strong today. vonnie: julie, thank you. let's check in on the bloomberg first word news with courtney donohoe. courtney: the european union has cleared the way for ratification of the paris climate agreement. nations agreed to a fast-track vote on the treaty. that means the most sweeping accord to fight global warming could come to force the next month.
the eu has come to pressure to ratify after the u.s. and china agreed earlier this month. the two top republicans in congress are having second thoughts about that ill allowing 9/11 victims to sue saudi arabia. ande speaker paul ryan senate majority leader mitch mcconnell say the bill could ton u.s. soldiers overseas retaliation by foreign governments and their willing to rewrite the measure. congress overrode president obama's veto of the bill. the golf course in south korea will be the site of a missile system. it will be at a country club 125 miles from souel. the move comes just weeks after north korea conducted its fifth nuclear test. a new poll shows hillary clinton has increased her lead in one of the battleground states. the mason-dixon poll has clinton with a 46%-40 2% lead over donald trump, a two-point increase since august.
it also says only 4% of florida's voters are undecided. in colombia on sunday voters are respected to approve a plan that ends a 52 year war with marxist guerrillas. a calls for the marxists they hand over their weapons to the united nation. they are guaranteed seats in the congress and immunity from punishment for their crimes. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. donohoe.ney this is bloomberg. nejra: let's get back to deutsche bank and the shares rebounding, or at least recouping losses today on unconfirmed speculation. settlementh a lower with the u.s. department of justice over investigation into mortgage-backed securities. here is archie bowery.
reaction withthis this unsubstantiated news. is this just a knee-jerk or something that actually could be a good turnout for deutsche bank? this isould specify pure speculation at the moment. if the number 40, and the need single-digit billion dollars number, that would be a significant relief for the market. after the doj's the national $14 billion opening gambit, they may have revised their number upward towards the $10 billion or a alien dollar mark. -- $8 billion mark. with deutsche bank at the moment a lot of people are saying it's got enough liquidity to the stand two months of stress? what is the real big concern here? >> the liquidity concerns
spouted from the news overnight that hedge funds had gotten cashback deutsche bank. those liquidity concerns are unjustified. the bank is over 220 billion euros in liquid assets. sheet hashe balance transformed significantly since 2007. it relies much less on riskier funding and much more in retail and transaction banking deposits. the real concern for deutsche bank at the moment is capital. that isgation potentially much lower than expected, it is a big relief for them in that sense. nejra: this is part of the focus. you can see in our chart there is a little bit of an improvement in terms of price. fed with thet the
commerzbank cbs, it has narrowed because we are looking at a coming down here. small signs that things are improving. can a carry over into next week and longer-term? >> longer-term what is going to try the performance of it will be deutsche's ability to increase its capital. whether that be through continued divestments, has it has been doing, or the ability to generate more cash out get ugly -- organically. and also perhaps trying to restructure it to secure better returns. they will be the key drivers of the performance. ofthe shorter term any kind positive news about a low orbit extensive settlement should
continue live performance. nejra: they sent out a letter. i think we have that. a small part of that letter saying that you will have seen speculation in the media is causing concerns. you should consider this in the context of the bigger picture. these are particularly important times. certain major hedge fund clients, can they tip anything? >> potentially. there is always that risk. however it should be noted that the balance sheet is significantly different from 2007. higher brokerage firms, any account about 7% of funding. this is just a fraction of what deutsche's has been funding.
we wouldn't say there was a massive risk at this point in time. vonnie: i have a chart here over the past year. the trend has been upwards. we saw this rise when the latest news around the $14 billion from the doj came out. what is it really going to take for deutsche bank's prospects to improve? is it rates just need to be higher because the low rate environment has caused a lot of suffering. >> that would certainly be a boost. it is hard to see the short term what they can do. the problem for deutsche is the traditional source of strength, investment banking, revenues have been structurally under pressure for a number of years now. are of the other businesses not profitable enough to pick up the slack. we have seen the bank tried to expand into asset management, but net margins in that business have been declining over the last couple of years. retail banks offer in a highly
targeted market which is inefficient. the only thing they can really do is cut costs. nejra: it may not be an issue so much anymore. saying deutsche ank is said to be nearing $5.4 billion settlement with the u.s.. that would be less than half of what the original nuer that was being reported was. we can say we heard rumors of this earlier and didn't want to report them. --nus fr gets up with a 12% now. european arjun, banking analyst for bloomberg. we have the latest on oil after this week's opec agreement. what davidd out foley says about investing in
♪ london, countym you down to the european close. vonnie: from new york, time vonnie quinn. it's time for the bloomberg business flash. some of the biggest stories in the news right now. signs point to american consumers being more cautious. spending fell for the first time since january. one reason may be smaller wage hikes. he rose just 2/10 of 1%. ta.e troubles for airbag taka
a person familiar with the water, they make the learning -- bids.ng for the defective airbags went to the biggest auto recall ever. swedish fashion retailer said third-quarter earnings missed estimates. h&m has in marking them down. the strong dollar led a higher manufacturing costs. that is your bloomberg business flash for this hour. nejra: much more on the lenders in germany. subsiding a bit on -- how the commerzbank ceo feels about it all. this is bloomberg. ♪
♪ vonnie: live from london and new york, i'm vonnie quinn. nejra: this is the european close on "bloomberg markets." just 10 minutes until the end of trading in europe. the stock is spiking at the moment. up over 12.4%. it's up almost 6%, trading about 11 euros. reporting thes bank is near a $5.4 billion settlement with the u.s. this is not been confirmed by bloomberg news. lionel heroic is that today the ceo is running out of things to say. and this happens to be true, something like $5.4 billion, deutsche bank could pay this at of its legal deserves. -- reserves, correct? >> if that is true, that is a
big relief. worrieseady began with a very big fine, bigger than expected, $14 billion. ticket and with a fine or settlement. it is obvious that a fine of $5 billion is a lot better than $14 billion. analysts disagree, but technically litigation reserves will handle that fine alone. vonnie: you wrote this morning on twitter that analyst were not in agreement about what deutsche bank could afford. deplete all would of his discretionary funds. they can't get into any more trouble for anything for a while. >> that is exactly right. there was disagreement over what the bank and spent the forgets the capital increase territory. everything from $4 billion to
about $8 billion or $9 billion. we will not know until we get a settlement. any number as these $8 billion or $9 billion will be treated as a relief. they can then get onto the more interesting discussion of how to get to that. i think investors just want a number. vonnie: if the number floating around, the $5.4 billion duster not to be true, how much of this can be about the fact that we have seen deutsche bank shares take such a hit in recent days? that actually strengthened its hand with the department of justice? >> what we saw yesterday in the u.s., which was market paying. and today more market pain across europe. that tells us the uncertainty over this fine was threatening to turn into a real contagion worry about systemic issues over the health of the european bank system. no regulator, not even the u.s.
doj wants to be seen tripping that kind of panic. that is exactly the kind of worry that forced the hand of the doj, forgot somebody to step up and say something to calm the markets down. nejra: we have heard from the imf about how systemically reached -- risky deutsche bank is. people seem to have next views about how much contagion to could be if we didn't see deutsche bank need a bailout or getting a bailout from the german government. what is your view on that? >> right now we are not talking about the same kind of thing as lehman in 2008. we have to remember we are nowhere near the kind of situation that would make us talk or dress the kind of issues of too big to fail. that began with a fine number when there were initial reports early this month. the shares went up, not down, only because of the prospect of a huge fine. we are quite always away.
deutsche bank's big issues long-term. capital issues, yes. but if we get the settlement, that would give the bank breathing space. we are not there yet. vonnie: let's look at what the commerzbank cfo said earlier. commerzbank is in a bit of a fragile situation too. caroline hyde's questions were very interesting. >> i think we have seen in general over the whole week there a negative market sentiment on banking stocks across europe and indeed it has been not a very nice day for the german banking stocks. i do think that's a very short term view and i'm convinced we will go forward after that next week. vonnie: but then she asked if there was a potential merger on the cards between commerzbank and deutsche bank. he got a little nervous.
do you see that as a potential? >> i don't think you should rule out anything. i think investors and analysts don't like the idea. i think it should be looked at and it has merit, at least conceptually. the environment is so weak. one of the few ways you can defend that is negative rate business is i boosting your market share. we have seen the kind of pain the banks having going through to solve their problems. the share price fell even as deutsche bank is rallying. years ofto go through cost-years of shrinking to deal with pain, a merger is a way to defend against some of that. nejra: one thing you said is not to rule out sovereign wealth from stepping in. on itsn it already has shareholder register, did
interesting what happened last time. there was a real drop in worry about deutsche bank in february. the response of the royal investors was to increase their stake and nominate someone to the board. it will be interesting to see what they decide depending on the settlement, if there is a need for the capital increase, they will obviously have to address that question. fora: thank you lionel, more commentary go to gabsgo on bloomberg. look at where european markets are trading as we head to the close three minutes away. this is bloomberg. ♪
vonnie quinn in new york. let's take you through the market action today. i want to look at the stoxx 600 because,third quarter of course, it is the final day of the quarter, and regardless today, thehappening stoxx 600 is up on the quarter -- up more than 2%. this is the first quarterly gain this year. i thought that was worth highlighting before we head into the details of the day. we arexx 600 intraday -- unchanged, up .10%. we were seeing a decline, a sour and the past three months, but it seems to have recouped those losses, and a lot of this down to speculation that deutsche bank is going to reach a lower settlement than previously thought with the department of justice. a number we have that bloomberg news has not yet confirmed is $5.4 billion. a lot of people saying if that were the case for deutsche bank, it might not actually need or
would not need to raise more capital. if we look at how we are performing across assets -- a mixed picture -- the dax up 1%. in germany, luxembourg down 1.2%. switzerland off .3%. denmark off .5%. in forex markets, we have seen sterling game today, but it is heading for a fifth quarterly loss. up .4% -- 130.14. the euro up 10% -- .10%. the euro was declining, but we saw it reverse gains on risk appetite being driven by speculation on deutsche bank's settlement. if we look at what is happening in bonds, it is interesting. yields starting to head higher. this is mainly the front end here. at the beginning of the day, we were seen yields come down -- germany's 10-year yield heading for its lowest close since july. looking like it is turning around on the government bond
yield front. we look, finally, deutsche bank, intraday -- this is what i have been talking about through the report. up 7.5%. dropped to a new record low -- dropped as much as 9%. up 7.5% now. we are at a loving .69 -- at 11.69 euro on that stock. in that range -- the dollar, 95.44. the ruble was an interesting want to look at -- looking at the peso and emerging currencies, the ruble has been affected by the oil trade as well. it is back about 63, the point at which a vitamin was doing all of the warning. 47.93. the 10-year treasury picking up a few basis points, 1.59%. the dow jones industrial average
now, 180 point at 18,331. the s&p 500 up at .9%. the nasdaq, as an index, is up .8% as well. let's go to the nasdaq right now in midtown manhattan. abigail doolittle. abigail: good morning. we are back to risk on. a flip-flop week for stocks in the u.s. and globally, really. this is the third day of stocks trading higher. on today's gains, we have the nasdaq on pace for its third weekly gain in a row. let's see if the index can hold onto that. before we look at what is helping today -- the biggest drag, cognizant technology -- shares are plunging on the news that the company's ceo is leaving, and as the internal probe starts as to whether or not there were payments made in india that could have been a possible violation of the u.s. foreign corrupt practices act. downgradedtibank has
shares of cognizant technology. intelligence analyst on your right product is saying that the ceo was an important figure at cognizant technology. his departure is a surprise. all of this on a stock that is down more than 20% this year, on sinceor its first year 2008. vonnie: not to brag -- but what is taking the nasdaq higher question mark -- higher? is driving higher on reports that will conquered by them on a deal. a lot of analysts have bullish commentary, including rbc. craig allison is saying this deal could reignite or rekindle &a action in the chip-based.
we look at the long-term chart v 3925, we see we are approaching levels from 2000. valuation is at historic highs. it will interesting to see whether the high valuations in the chip states will put a lid on potential m&a activity in the semi conductor space. vonnie: you will be watching. abigail doolittle, thank you. thus check in on the first word news. courtney donohoe has more. courtney: leaders for dozens of -- from dozens of countries where in israel for the funeral of former prime minister shimon peres. he won the nobel peace prize. bill clinton was president than. president clinton: he started
off life as israel's brightest student, became its best teacher, and ended up its biggest dreamer. he lived 93 years in a state of constant wonder. over the unbelievable potential of all the rest of us. alsoney: president obama spok he said that he showe that justice and hope are at the heart of the zionist idea. india is trying to reduce tensions after the raid across the border with pakistan. the indian army says no more operations are planned after an overnight attack on what it called militants a family to me for trait india. officials say they have no plans to scrap treaties or otherwise cut off ties. joiningh republic is fellow eu nations in demanding brexit talks begin soon. they have told the british prime minister theresa may there will be no separation of the eu's basic freedoms of movement for
goods, services, capital, and people. they're also concerned about safety of nationals in the u.k.. ch man was beaten to death last week. i am courtney donohoe. this is bloomberg. nejra: thank you so much, courtney. new economic data today shows the current account deficit in the u.k. getting wider -- the difference between money coming into the u.k. and money sent out was 28.7 billion pounds. meanwhile, u.k. gdp grew at a slight zero point 7% pace in the second quarter, slightly more than previously estimated. emergeures, as splits over brexit talks. we are joined by bloomberg's -- who writes the brexit bulletin for bloomberg. great to have you -- the current account deficit -- this is feeding into expectations with sterling.
i wanted to show the chart. i mentioned it on the market truck -- the pound on the worst run since the 1980's, it is up-to-date. currentg is, why the account deficit, you could argue is not good, but the weaker pound has been feeding the economic data. simon: the large deficit will keep the sterling week is a liquid. liam fox, the traits of her, warning about the trade deficit yesterday. it is a weak spot for the european -- u.k. economy, especially if berlin will see this outflow of capital that people are worried about as brexit looms. -- it ishe current going to be a bigger problem. nejra: what are we 100 days? some up for us what the environment is like for businesses in the u.k.. simon: one of uncertainty.
it was written about on the bloomberg -- there is a great deal of uncertainty, they do not know what theresa may plans for when to stop the talks, when -- start the sox, what she will seek in the talks and what brexit will deliver. if you're a business, you might not be hiring, spending as much. it is not just small businesses -- big business to. talked aboute ceo the uncertainty for him and how he might not be investing in the assembly line. there are lots of doubt. when you have that doubt, you are not as spirited as you would be another economic times. vonnie: how are they doing on the hiring at the super ministry for brexit there, simon? simon: they are coming along. the new department has recruited a fair number in london and brussels, but it has been built from scratch, and other civil servants are being encouraged to move there. study as she goes. they are also -- steadas she
goes. they are relying on outsiders -- and the consultancy business is doing very well in the wake of brexit. vonnie: and where is that coming from, in terms of budgeting? simon: the central budget -- the government has a budget, and it moves money around. david davis probably has the money in his back pocket to build himself a new office, or at least take over an existing office, fill it with computers, lawyers, trade experts. what can we expect, simon, from the tory party conference in terms of the impact on brexit negotiations? simon: they will try to do two things -- talk about brexit -- brexit means brexit, as theresa may said. they have to. she is under pressure from her party -- she does not have a strong opposition -- the labor party has leadership problems. labor democrats have reduced their standing in party. there are various other reasons
of the parties cannot maintain a strong challenge. something to celebrate. in fact, when she looks in her party, she sees both those who want a hard brexit, and those who are cautious -- want more patience. -- she has to walk this walk what they all agree on is they want more clarity. she has not given much information on what she wants. the first thing they will try to do on sunday is make that speech. and they will try to pivot. they very much do not want brexit to be the only thing they talk about, even if it is the only thing we often talk about. sound muchoes not she has much time to celebrate the birth day. -- birthday. simon kennedy, brexit expert here in the studio. vonnie: still ahead, how does health care fit into ge's business strategy -- we will be joined by the ge health care ceo
vonnie: you are watching -- nejra: you're watching the european close. vonnie: i am vonnie quinn in new york. engines, cyber security, to cloud, general electric is one of the world's manufacturing and tech giants, and ge is ramping up its focus on health care technology, announcing a health care accelerator, designed to solve challenges in emerging markets. 5.8 it is called. joined with the latest on the business, the ceo of ge health care. john flannery. thank you for joining us.
for some perspective, half of the business is the legacy business -- imaging, x-rays. mr. flannery: that is how we got started. vonnie: exactly. and about one-third moore is this interesting provider of equipment in the supply chain. mr. flannery: we are in the life sciences business -- people --and we areugs taking then -- vonnie: that is fascinating. mr. flannery: high growth for us. vonnie: talk about the plan to increase profitability. it is a bit of a gamble. mr. flannery: yeah, well i do e.t think it is a gambl we are repositioning the business. part of it was internal, and terms of our cost structure -- more than that, we reposition the business strategically to fit in the industry. health care it -- it is fundamentally a good industry, but it is changing to outcome base.
customers need to improve clinical outcomes are better, costs are better. vonnie: what does that entail -- trying to turn run a business that strategically. there are seven companies focused on, say, cell therapy -- how do you become the supplier? mr. flannery: we start with the customer in the market all the time. that is critical -- what is going on in the market, what do customers need, how do we support that, how do we advance their agenda? we have built out an incredible suite of services -- suite of services that helps them get to the market faster, produce more efficiently, lower their cost. we have changed the way they do their business significantly. a quick example -- we started out years ago as an equipment provider. we built out over time -- a turn-key solution for all of the equipment they need. in china, no, we are putting a factory in a >>, delivering -- now, we are putting a factory in box, delivering them -- and it
gets to the market in half the time, half the cost. vonnie: how much of the business do you see life sciences being, and that depends on regulators, to? 50% alannery: it is 12% to year growth, -- 15% a year growth, and it will be a bigger part. vonnie: in terms of revenue. mr. flannery: revenue and earnings. vonnie: talk about the technology side of the business -- 20% of what you do is technology, and that is changing rapidly. how do you stay at the forefront? mr. flannery: it is a huge flexion point in the industry. you are referencing the digital software business, probably the number one change in the business -- whether you are in imaging, life sciences, digitization is transforming it. health care has been late in the game, compared to other industries, to use this technology. fundamentally, this allows us to do all sorts of advanced, analytic machine learning --
activity, it allows customers to be faster, more accurate, lower cost, and it allows our life science customers to produce much more efficiently. it is a big ge theme as a digital industrial company. vonnie: you are no stranger to m&a. do you see consolidation -- m&a in ge's health-care future? mr. flannery: we would do selective m&a -- nothing that takes us into a different part of the cocaine issue. we look for things that take us into the bas platform we have now. -- different part of the health care industry. uslook for things that take to the same basic platform we have now. vonnie: our equipment sales holding up? mr. flannery: it is a solid growth business to you have to go around the world to get a good picture of that, but the u.s. and europe is 2% to 5% kind of growth. china, some of those markets, quite good, and you mentioned earlier hour 5.8 emerging market
-- india, africa, southeast asia -- that market is growing about 40% a year for us. vonnie: already funding about 10 startups. are 5.8nery: there alien people that do not have access to health care and we set up a model to address the issue. vonnie: how is obamacare affecting your business and the changes in it? mr. flannery: it does not have much effect. in the early days, it created uncertainty, and there was a pause with people trying to iraq what has happened. it furthers the direction of value-based care. reimbursements based on outcome and performance. if obamacare is adjusted or not, really, i think that trend is going to stay in the industry. we need to -- we need to lead the trend and provided to customers. we know you need outcomes, we have to strategically provide you those ourselves. vonnie: john flannery, looking forward to another longer conversation. the ceo of ge health care -- an
nejra: live from london, i am nejra cehic. vonnie: i am vonnie quinn. today marks the end of the third quarter, and new york socks are poised to post gains -- stocks are poised to post gains. as we look at the final court of the at, is a traditional fall rally coming, or has the summer rally run out of gas. joining us is bloomberg news stock reporter oliver renick.
sometimes coanchor, i might add. seller -- there you go. vonnie: sell and go away was not the case in may this quarter. oliver: after february, we got high, there was flatness, did not go anywhere. we had a fast rebound from the days of selling. since then, it has pretty much been firing on all cylinders. a lot of strategists have taken upgrades to the s&p targets for 2016 in light of, largely, the fed reaction and central banks overall signaling they are still going to be behind markets, even though i'll be at less and less. -- albeit less and less. the fed not going, pushing it back to december, a lot of people have gotten more bullish on the market, but not quite enough to look very positively for the next three months. yeah, and it is a little
data dependent, to coin a phrase we have been hearing from time to time. look at the bloomberg, chart 31 69 in the chart library. as you can see, we have seen barely a move. awfully range-bound markets. traders out there must be -- oliver: it has been. we observe something interesting as far as the range-bound goes. i'm glad you brought that up. 12 ofwas this period of 13 trading sessions -- the s&p 500 was trading below its 100 day -- above its 100-day moving average, but below its 50-day moving average, which happens very few times in the history of the s&p 500. when you look ahead, there is hesitation, despite the upgrades from wall street strategists that we serve it. they are ultimately so calling for a market that is going to be flat until the end of the year. it does not look anything will
be changing right now. nejra: what about volatility, oliver? oliver: we surveyed 18 strategists about their forecast, and right now it is at 2171, pretty much were the s&p is trading today. they are basically saying there will not be any moves until the end of the year. a big part of that has to do with volatility. they look at historical precedent for election-year volatility, and there is definitely a spike. you see a little bit of selling in markets going into elections, and then the november year of elections is actually about 20% more volatile. a big part of that, historically, came from 2008 and 2000. markets were selling off. at the same time, 2000 was a wacky election, and markets got a volatile as a result. vonnie: oliver renick, stock reporter here at bloomberg, thank you. nejra: let's look at where european stocks ended the day --
pretty much unchanged if you look at the stoxx 600. the ftse down .3%. the dax up 1%. largely beyond the fact that deutsche bank rally after initially dropping -- that could largely beyond the fact which a bank rallied after itially dropping. it is on the agreement they might meet each -- and they might reach -- it could be lower than thought. deutsche bank up 6.4%. commerzbank still lower. we look at bonds briefly to see where they move -- risk appetite basically came back. that is why you saw the euro reversed earlier losses, up .2%, 1.2142. ♪
from bloomberg world had cores in new york, we are covering stories out of san francisco, frankfurt, italy, and china. on reportsnk jumping it is nearing a settlement with the u.s. department of justice. its stock and debt have been under pressure since the agency opened a probe tied to residential mortgage-backed securities. concerns about the german bank stability is having -- worrying consumers enough to pull from the firm. is this another lehman brothers moment? bank is not the only one struggling to we will hear from sean matthews, the ceo of cantor fitzgerald, on the new normal for wall street. we are halfway through the trading day -- julie hyman is here for the latest. as w get re t