Working to offset the negative rates. The impact which we have seen in august and september. That is challenging, no doubt. We acted decisively and we are passing on part of the negative Interest Rates to our clients. Saudi arabia says the kingdom is not running low on cash despite Falling Oil Prices and disappointing size of the aramco ipo. If you look at our money and balance sheet, it is not only deposits, we have a lot more as ets. British Prime Minister Boris Johnson promises to rip up the eu rule book if he returns to power. Selling the conservatives are on track for a workable majority. There is no doubt that the uks reputation as a haven of stability has been dented by this experience. You can see already a lot of red. The hand overfrom wall streetd and europe was not that pretty closing 0. 4 percent weaker pulling back with shares of apple and tele Care Companies leading. The tariff deadline is coming up next sunday. No real signs of a phase one deal being inked keeping an eye out on the fed in europe, the ecb and the uk election overnight, weak auto sales in china. 17th straight negative month in a row coming out of the china auto sector has not boded well one of the reasons why we are seeing red on the board. This is the picture for the stock 600. Already down 1 one hour into the trading session. Lets talk about the individual boards the ftse down to 7,160 partially, you can point that back to the strength of the pound. It keeps going from strength to strength ahead of the december 12 election. Tories are still tracking about 10 points ahead of labor all eyes will see what will happen there on thursday and in terms of brexit and brexit stocks the basic resources stocks are coming under braur today about half an hours time, we do get industrial productioning manufacturing numbers. Dax in germany down 1. 2 travel at the bottom sensitive stock to oil prices but we are seeing industrial names come under pressure this morning as well. Cac is down about 0. 9 the ftse mib down about a half a percentage point in italy. A lot of red on the screen lets talk individual sectors. I mentioned that some of the export oriented stocks are suffering today. Industrials down 1. 3 , auto down 1. 3 after weak auto numbers coming out of china with auto sales dropping for the 17th straight month down 3. 6 for the year in china. Technology down 1. 6 you can see every single sector in europe is trading in the negative real estate also in the red today, down 0. 4 health care down 0. 2 . Health care was the worst performing sector in the u. S market is coming to grips with this allimportant week. I want to shift to banking there is one name we are looking at Deutsche Bank says the productions is running ahead of plan the lenders today amid share holder questions deutsche has confirmed, the cost targets for the year weve got strategic units and the return of equity market. Hitting this return is proving more difficult given the external head winds. Targeting Group Revenues of 24. 5 billion euros by 2022 reiterating some of that Restructuring Plan made back in july initially, they opened in the green about 0. 2 higher in the session but we have turned to negative trading Deutsche Bank stock is down half a percentage point now you can see that is still down 11 . Lets get out to annetta live in frankfurt. We are seeing the stock down a half a percentage point. Even though you listen to what the messaging is from the bank an hour ago, they seem to imply they are quite happy with the progress on the restructuring at this point reporter they are quite happy that they are delivering on that target and that overall client activity is actually coming back. I think that is the main message that they would regain clients who before went away because they were like not very certain about the future of Deutsche Bank when we talk about Deutsche Bank, we can do that on the share price basis. The overall question is whether they can really do it on a stand alone basis and whether they can survive. We are one step closer to the conviction that they are progressing on their plan and that things are moving on the right direction. Also to the letter published today to the employees is that they have to keep up their good work and that the future of the bank in the employees hands meaning they all have to get their act together to have a future for the bank itself talking about the future, a lot of question marks about the revenues of Deutsche Bank, cost cutting is one side of the game. Boosting revenue is the other side if you want to have a return of equity of 8 by 2022 it was quite promising what he was saying about the revenue situation in the Fourth Quarter so far take a listen of what he said. We can convince sustaining execution with numbers the first year since ive become ceo was about bringing discipline to the bank we control capital and costs we said with the restructuring in july, we are now focusing next to keeping that discipline and focusing also on stabilizing and growing. Thats exactly what we can see the Investment Bank is a good example where we did focus on key positions and it is baring fruit. So far, october and november is running ahead of our expectations i can see momentum in the back lets talk about the trading. It was always so important for the bank we have seen so many years now where revenues are going actually down in that specific area how is it doing in the Fourth Quarter . It is doing well. So i dont want to give an outlook for the Fourth Quarter i can only talk about october and november we have increased with our development and ahead of our expeow expectations i think that is the result of two things a, a focus on a Competitive Edge we are focusing on that and our daily work secondly, you can clearly see a vote of confident ens from our clients. There is a vote of confidence before the regulators. Also with this requirement that went down 25 bips. This vote of confidence is seen as higher engagement which results in better revenues so it seems that the mood has changed a little bit whether it comes to clients coming back to the bank and also the revenue situation surprisingly positive in the Fourth Quarter but still, the head winds are there the head winds for all banks are quite strong nowadays. I had to ask him how much of a problem is that for Deutsche Bank to execute. Take a listen. We factored that in i think particularly, the Interest Rate head wind we have seen in august and september is challenging, no doubt. We acted decisively. We are passing on part of the negative Interest Rates to our clients in particular on the corporate side on the overall economy, yes, we see a slow down of the growth. Im actually over the last three to four weeks talking to our clients. Getting feedback i think there is a good chance of avoiding a recession. I can see a promising outlook. We have taken that into account. Deutsche bank is wellpositioned from a management sheet, a Risk Management point of view from the quality to go to year 2020 that is factored into our plan there for, im not nervous about it what are german industrial clients telling you . Germany was especially hit hard by the trade conflict. I think it is hard to say that on of with one broad statement. It depends on the underlying industry for sure, people are viewing the sector and the outlook very carefully. They are reviewing their investment plans but overall, i can see over the last three to four weeks a momentum in the german industry that outlook is not too bad. These companies have specialized in their products. They have a great brand. One can see that the numbers which they put to the market are not as bad as some people thought. Im overall not as pessimistic for 2020 as potentially some others bottom line, they are saying that they are progressing on strategy and even revenues coming back which is a positive for the bank Going Forward whether this will impact the share price positively remains to be seen the way we talk about the share price will depend on when they resume paying dividends. In another interview, they are not planning on returning capital in 2022. They need to have a bit of patie patience with the bank lets shift to the middle east where we are 24 hours away from saudi arabia enlisting aramco the kingdom announced a more conservative budget for 2020 the finance ministry signaled a higher deficit despite greater gdp growth asking about the kingdoms defense spending and its partnership with the u. S im not privy to specific details and anything that has been discussed between the two defense ministries when they agree, i will come to know when you think about this more broadly in terms of the geonarrative not just to saudi arabia but the middle east, given the geopolitical unrest weve seen how much money does it cost to keep this country safe this country has been where it is for the last hundreds years and has managed to protect through very difficult times we work with our partners around the world to make sure to bring stability to the region so we have made a lot of efforts and continue to bring stability to the neighbors and around us. We are actually supporting them technically and financially to ensure that stability is maintained we are working with International Community to actually put the right resource in place whether politically or actual military assets to ensure the region is save and the people in the region are safe. Saudi arabia are playing a crucial role in the region and employing millions and millions from the region. They are supporting saudi currently and receiving salaries and supporting their families at home, which brings more stability in the region, which helps not only in this region but in the world otherwise, it will be a very difficult region so the Financial Stability is crucial to the region . And to the stability of the world. As we assume our position, we want to make sure we bring attention to the g 20 to the region and work with our partners to resolve some of the issues lets switch and talk about one of the other major data numbers that came out. Biggest auto market fell 3. 6 . First declining last year as china felt the impact from sluggish growth and the joongoi trade war with the u. S saying donald trump is reluctant to impose fresh tariffs on china on december 15 however the president wants to see movement saying beijings decision last week to waive tariffs could be the signal needed. More on the chinese ppi fell for the fifth straight month but by less than expected. Consumer inflation, cpi, hit a high as an outbreak of african swine fever continues to rise. Reporter beijing policymakers have a headache when it comes to inflation costs continue to fall Consumer Prices manufacturers charge slipped 1. 4 in november adding uncertainty to how healthy factories are amid trade tensions with the u. S. At an eightyear high because of a surge in pork prices most believe officials could further ease Monetary Policy pork prices more than doubled with the pig community ravaged by the disease the lunar holiday is the traditional time to eat pork in china. There is hope for relief month on month, prizes rose in november as pig herds recover suggesting prices may be nearing their peek a reminder you can follow us on twitter street signscnbc we covered a lot in 18 minutes. Im at cnbc juliana coming next, ukraine comes to a ceasefire and well discuss that in just a few minutes. Y for whats next. man we weave security into their business. second man virtualize their operations. woman and build ai customer experiences. second woman we also keep them ready for the next big opportunity. Like 5g. Almost all of the fortune 500 partner with us. woman when it comes to digital transformation. Verizon keeps business ready. vo the flock blindly flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. Welcome back to street signs. France is bracing itself for a sixth day of strikes state officials and Union Leaders failed to reach an agreement. Mondays strikes saw scenes at the garden and train station unions are calling on teachers and doctors to join the strike the french Prime Minister is set to sought line the Pension Plans on wednesday speaking of france, russia and ukraine have agreed to exchange all remaining prisoners and committed to a rare cease file deal. Putin and zelensky met facetoface for the countrys first set of peace talks in more than three years the leaders said all prisoners in the Eastern Region should be free by the end of the month translator the parties have reached an agreement to release all prisoners by the 31st of december it has been agreed to verify the list and provide access by the red cross to all prisoners Vladimir Putin said any final peace deal must grant the Region Special status translator we need to synchronize the process with political settlement it means amendments of the contusion that will provide special status of several regions. These paris talks have been widely viewed as part of the french president s bid to assert a more international presence. Joining us to discuss president macrons push. What is his goal with regard to russia what is he trying to do with this relationship . He wants to rebuild the relationship with russia that has been controversial with other european partners. Since the beginning of his presidency that is something he wanted to do one of the first leaders in france he received was president putin. Also he invited president putin to the summer president ial residence in the south of france this summer a few days before the g 7 submit a very strong signal they are coming into relationship with open eyes but we need this relationship to work we need to work at it, we are not naive. He tweeted last week during the nato submit th nato summit that russia is not our enemy anymore. This is part of rebuilding the relationship it is a gamble for france to put it at the center of International Relationship and putting france back at the heart of difficult topics whether russia, ukraine, you could say also syria, iran, again, at the g 7, he invited the minister some would say this is some what o what opportunitistic of him. We know the u. S. Is in the impeachment battle on the issue of ukraine so there is a clear vacuum to go in and achieve a brokerage between the two side it is also ambitious he feels there is an opportunity here he feels the west needs some leadership he wants europe to hold its ground and france within it. So it could be beneficial for europe against u. S. And china and beneficial for france. It copay off. Well see if the ceasefire holds up coming up on street signs, well break the latest uk gdp figures. And discuss how they might play in the runnup to thursdays general election int easy. 12 hours . 20 dogs . Wheres your belly rubs . After a day of chasing dogs you shouldnt have to chase down payments. vo send invoices and accept payments to get paid twice as fast. danny its time to get yours vo quickbooks. Backing you. Welcome to street signs. Im Julianna Tatelbaum and im Joumanna Bercetche. These are your headlines european shares sink with investo investors cautious ahead of u. S. Tariffs on chinese goods autos are the worst performers after falling for a 17th straight month Deutsche Banks warns the return target becomes more ambitious. Theyve been working to offset the impact of negative rates the Interest Rate we have seen in august and september that is challenging, no doubt. But we acted decisively. We are passing on part of the negative Interest Rates to our clients. Britains Opposition Labor Party vows to focus on the nhs if it wins the election accusing the conservatives of underfunding renationalizing securities will be key to the success. It has resulted in catastrophic failure in rail, it resulted in deaths weve seen increases of prices in charging for water and profiting that i feel is obscene. Democrats plan to introduce two articles of impeachment against President Trump bringing the u. S. Leader up on charges of abuse of power and obstruction of congress. It is a huge week in the uk with the general election scheduled for this thursday. We are getting gdp data for the month of october that has come in at 0 versus the september reading of plus 0. 03 . So it is basically flat for the three months of october. In terms of the year on year growth, it is the weakest since march 2012, just for the month so this is the ons that released this data. Tracking on weak growth since 2012 still on negative territory, we are still flat month on month since october. It is the longest such run of no growth for three months since the Fourth Quarter of 2009 not very positive numbers. There are still no signs of a recession. We have industrial output and instruction coming in up. 1 . Slightly weaker than the. 2 the construction number disappointed contracted 2. 3 . Both are looking for negative 0. 2 the biggest monthon month fall since january 2018 you have to wonder if the market will look through these numbers. Lets look at fx markets. We are trading slightly firmer on the day not Much Movement there. Holding above the 1. 1 mark versus the dollar. A lot of that rise came a hid the polls that the conservatives are set to win a majority. The euro higher ahead of the dollar after the first ecb meeting on thursday and we have the Federal Reserve meeting as well european markets, we are looking at red across the board. The dax leading the way lower down 0. 2 . Building on losses that we saw yesterday. Not a pretty day for european markets this morning but it is time to send in the bulldozers thats what the british Prime Minister will say on his next Campaign Stop as he urges voters to break the gridlock over brexit and return him to power he hopes the message will speak to labor voters with thursdays election still too difficult to call earlier this morning, the former liberal democrat leader told cnbc that a conservative government is lined up for a very hard brexit it is going to go on forever and over they will never resolve this whoever wins, the brexit will be on the National Agenda for decades to come. If they do get the lead, we have years of negotiation not a year trying to tie up unsatisfactory relationship with the americans and all sorts of stuff then there will be a move to go back if we stay in, the people who were dissatisfied will still be dissatisfied having the referendum in 2016 was a terrible mistake and has left us with a legacy of discord which will not be resolved the chancellor has denied that labors brexit plan would result in more uncertainty all the Business Leaders ive talked to want the certainty well give them a time table theyll know the process but there will be an uncertain outcome six months from now theyll be involved in the discussions about that deal including Business Leaders and trade Union Leaders. Theyll know we are putting that to the british people. It will be an incredibledeal t protect the economy. Theyll have clarity of the process itself include ug the time scale and that will give people the certainty they need you are saying there is a distinction of staying in europe and from a business perspective, that distinction matters theyll know the option putti putting forward will protect economy and jobs the pound has been strengthened they think it is because it looks like the chances of a conservative win on thursday has risen. Can you tell me why you think the pound will not fall if labor were to win . We are setting out a clear path and secondly putting out a clear 10year program of stable investment in our economy which many investors will recognize. Many, including Pension Funds are saying thats exactly what they need. Lets bring in the founder of cattle economics exciting week coming up for the uk the tories have consistently averaged a lead. Do you think that translates to a large majority come thursday or friday. We dont think it does. We are in uncertain territory. There are a large number of voters who say they are undecided. The most important factor is tactical voting. Theyve got to expect the conservative victories i for one will be on tenter. We have the former libdem leader and he said the leaders have made this more about the leaders rather than about brexit it has become essentially a vote on Boris Johnson versus Jeremy Corbyn do you think there is validity to that statement . Yes but it is not necessarily new. Weve been moving more in a president ial election for some time the last election, mrs. May put herself forward. It was mrs. May con serservas which was very odd but not a new phenomenon calling what the liberal dems have done revoking article 50 as a distraction. If we enter an era where they fail to lead the majority, who are we ending up with . The lib dems i suspect would have to be some sort of brokering of a deal which would see mr. Corbyn not becoming Prime Minister perhaps he could stand down. It would be a messi outcome. I for one am praying it doesnt happen it is fair to say this Brexit Process has gone on far longer than most ever anticipated to what extent do you think this has damaged the uks reputation . We have always been thought of as a stable country and does political Political Affairs pretty well. Now traveling around the world, people say negative things this issue has been divided for some time. It doesnt look very nice. I think this is the right outcome that we discuss thoroughly and deeply an issue of such importance rather than try to brush it under the carpet the word uncertainty comes up a lot in the context of brexit we heard willem marx does about that word and if that can be cleared up with a labor government or conservative government the market and the way it is trading is that with a conservative majority, that would be cleared up. Isnt that misplaced optimism . Beyond that, we have no clarity on what the future trading relationship is going to look like i think thats right. The key issue in my view is what many businesses are worried about. Not so much brexit uncertainty, its corbyn uncertainty. Not only do traders say to themselves, we are absolutely right. We could be going on for a year or more. We could have corbyn as a result thinking that labor will be a minority government. Their votes would have to be diluted some what to some other parties. It would be difficult for them to put into a reality. I think that is probably true we just dont know what happens when you get a Hung Parliament is another election afterwards it happened before in 1974 followed by a second election later that year. If you are managing large amounts of money until that vote is in on thursday, traders simply dont know as it looks more and more likely that conservatives will win a clear majority, it is unfounded. Well talk more about the reaction talking about the founder and chairman of Capital Economics. The federal chair has passed away he was age 92. He was appointed fed chair by president carter before being renominat renominated by president reagan. Named to the recovery board in 2009 where he brang forward the volcker rule he is survived by his wife and two children coming up, the impeachment battle heats up. Democrats are due to present two articles of impeachment against the commander and iechf. More after the break and i took action. We started a Nonprofit Community bank with a simple theory give people a fair deal and real economic power. Invest in the community, in businesses owned by women and people of color, in affordable housing. The difference between words and actions matters. Thats a lesson politicians in washington could use right now. Im tom steyer, and i approve this message. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back to the show the uk election and brexit are hot topics everywhere including in abu dhabi earlier, speaking to the chancellor who believes the conservatives are on track for a workable majority. Dan is live from abu dhabi tell us more about your interview. Reporter we did have the opportunity to speak with the former chancellor with regard to a number of issues lets listen in to first of all why he believes Boris Johnson will be able to form a commanding majority in the coming days. The british electorate has pretty much made up its mind what it wants to do. I would be surprised if there is late question now. Not so much what happens on thursday night im expecting that to deliver a Boris Johnson majority government the question is what will he do with the undoubted authority that he will gain from being the first conservative Prime Minister for 25 years to obtain a decent working majority in parliament he can use that to deliver a brexit, allows him to deliver on many ambitions for public services, for reduced taxation or deliver a hard brexit, which means we will struggle to deliver on those promises because the economy will be in a much worse position. It will be all up to him to decide how to interpret brexit once weve left the European Union. What do you think the most likely scenario is if Boris Johnson is able to retain power. I was told he would prefer to see a hard brexit rather than the political concern theyve seen throughout this process taken asset markets through the health over the past few months with this . The responsibility of the uk government is to protect the interests of the uk population, not the interests of individual firms or investors firms and investors have developed strategies over the last three years to make sure that they will be in a good position whatever happens in brexit but the uk government has to make sure the jobs, the Wealth Creation remains in the uk what will happen if boris wins the election with a good solid majority is clear. He will push through brexit very quickly. It will be done and britain will leave the European Union in a sense, that isnt the interesting question the question is what happens there after. How will be move forward with the European Union and how will we manage the European Union we have until the end of next year in the transition the uk government would have to ask for an extension by june of 2020, if they wanted one if they dont want one, theyll need to come to some alternative arrangement with the European Union to ensure that goods can continue to flow freely and services can continue to be traded across the uk eu border nobody in europe thinks we are going to get to the final long term deal by the end of 2020 we have to find a way of working together over a more extended period that allows us to reach that good outcome. The Brexit Process continues . Im afraid it does. So there it is, im afraid it does the Brexit Process continues thats the message from the former chancellor. Even if Boris Johnson is able to claim victory in this election with a majority, the question still remains. This is a serious issue facing investors all around the world weve had the opportunity today to speak with the likes of bob dimond he weighed in on the outlook and the impact of the elections. He says he agrees here, yes, Boris Johnson is likely to take victory. But what will happen in the future is a big too tquestion m and something investors are concerned about. Also, what is going to happen in the future as it looks to negotiate trade deals and looks to find footing after this long process. Back over to you thank you for bringing that and your coverage. Lets get back to our guest and pick up there on where dan left us if we do see a scenario where the conservatives win a majority and we get an orderly exit, we could be looking at years of trade negotiations wouldnt this have an impact on businesses where we are already seeing a major delay is there any way we dont see any business and remaining to be cautious to some extent that is right remaining in some uncertainty but not where it will have been until now. I suspect well see some trade deals negotiated pretty quickly. The u. S. , australia, new zealand, canada and japan. The eu one is the critical one this is largely political. Get a deal done within a year. There is the canada deal, we have no trade restrictions between us now do you put politicians and diplomats together in what they think is their countrys interest that time line, a year to get a deal done between the eu and the uk is possible but you look at other countries, germany under example. How can you say with a reasonable view they could come to a major trade deal . You put your finger on one of the big issues it is not the difficulty of the german politics meaning that they cant do a deal they better do a deal. If we end up trading without a deal and german carmakers face tariffs, that will hit that industry very badly. There is a risk, wanting to use or using his term, to bulldoze through a deal means the uk will have to make concessions. I want to take it back to the pound. Weve had a big move in the leadup to this election. Where do we go from here how much of that is priced in . I suspect we are pretty much already there in terms of pricing. You cant be fully there there is a chance that tactical voting will prevent the majority that has got to be the market. We do get the majority we enter this period, this long period of continued uncertainty about brexit ultimately, the upside to the pound is very big. As to whether a government negotiates a big deal to other major countries. I could see 150 against the dollar but not this week that would be a very big move, indeed one other question also on the Spending Outlook if you look at the labor outlook, a huge number of plans on the investment side it entails a lot of borrowing. You have the tory manifesto saying look, these are not credible they will have to spend and borrow more than theyve pencilled in what does that mean for the uk Going Forward . I think the markets are being too complacent in the uk i think well see more borrowing whoever wins the logical idea is to point to the Interest Rates the markets are not seeing it. Plenty of people in the market are looking for a cut, which could just about happen if we had economic weakness following the election im frankly looking at a period, perhaps a years time and maybe more where the rates could go up okay. Well leave it there thank you very much. The founder and chairman of Capital Economics joining us today. Nbc news has learned House Democrats plan to bring two articles of impeachment focusing on an abuse of power and obstruction of congress. Producing this today at 1400 cet after House Republicans made their final arguments. Tracie potts joins us live from washington, d. C. How momentous would this be if we see the house move forward against President Trump today . It is an historic day we have not seen this happen very often in u. S. History this would only be the third impeachment of a u. S. President if it ends up getting a full house approval, which is expected to happen sometime before the holiday break next week but what happens this morning is we start to see the democrats case against the president we have seen some of that in the hearings with the witnesses, with that contentious hearing yesterday where attorneys for democrats and republicans made final arguments on this. Now we get to see how democrats plan to focus their case will it be narrowly focused on the phone call with ukraines leader and the effort to get ukraine to investigate joe biden in exchange for foreign aid and there have been talks whether it would include elements from the russia report and the russia investigation. Five sources telling us overnight that these articles or charges against the president will be abuse of power and obstruction of congress and that there will be one final meeting of lawmakers to confirm that before the announcement this morning. Thank you for bringing us up to date with the latest. That was tracie potts live from washington looking like losses will continue for the three major indices there. Triple digits for the dow. That is it for street signs. Im Joumanna Bercetche and im Julianna Tatelbaum. Worldwide exchange is up next. the moth without hope, struggles in the spiders web. With every attempt to free itself, it only becomes more entangled. Unaware that an exhilarating escape is just within reach. Defy the laws of human nature. At the season of audi sales event. No coverup spray here. Cheaper aerosols can cover up odors in a flowery fog. But febreze air effects eliminates odors. With a 100 natural propellent. It leaves behind a pleasant scent youll love. [deep inhale] freshen up. Dont cover up. Febreze. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. It is 5 00 at cbs. Stalling out futures point to another day of losses the fed chair points to a twoday meeting. Lawmakers days away from announcing details of a new nafta deal another blow from boeing a former employee says he warned the company about the max months before those two crashes to the mall, a new spin on aging retail hot spots anothe
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