Cuttingabia will be contractor prices, delaying payments. We know that supply is at record highs. Oil up by half a percentage point. Lets get on to the stock move. Deutsche banks move. Shire down 2 . Having to resubmit what was meant to a set what was meant to be a sellout drug for them. They meet with the fda, pending a positive trial data. Danone beating analysts estimates. Deutsche bank may like the reshuffle. Scale back on Investment Banking and become a more profitable institution. Heads are going to roll. Back to you. Jonathan well talk about that later. Lets see how that china gdp figure is playing out in asian markets. David english is standing by. Good morning, david. David equity markets here are neither here or there. It is not too hot or cold. Today, slowest paced since 2009. Slowest case since 2009. Since 2009. Ace very mixed. Most are down here it are down. China is closing up shop right now. We quickly raised early gains and now we are down. 5 . That is the shanghai composite. Weveday, very quickly, got when the gdp numbers came out. 3386 is the level. A mixed day. A very subdued reaction. Volumes are quite thin. We thought it was going to be big driver. Not really. Back to you. Thankan david ingles, you very much. Not much in asia. Here is what is happening. Still on target, we break down the latest in china. Crude reality. Saudi arabia has reported they have not paid contractors for six months. Deutsche bank reshuffles. We take you through the banks biggest shakeup. Jonathan call it a bittersweet gdp reading. It came in at 6. 9 . That is slightly above analyst sforecasts. Lets get out to the water hims. Lets get out to nick wadhams. ,ick what youre seeing here the economy is doing better than expected. Or perhaps not as badly as people suspect. Ofare in the new normal slowing growth. This is something they have telegraphed for several months. They would anticipate slower growth. The other issue is is the number really this good . There is debate over the reality over the reliability of this number. Numbers own gdp tracker puts growth at 6. 55 . Youre seeing market uncertainty. People are not sure what to make of these numbers. A positive sign, but can we trust the data. That is the message we are hearing. Jonathan that is what a lot of people are talking about here in london. A look at this data and they see a two speed economy. How do you reconcile those two things and a quarter . It gets to a couple of issues. One is the stock market rout. Thee was a lot of suspicion rout would not affect regular peoples pocketbooks. So few Chinese People actually have money invested in the market. There was a distortion with that. The other, youre seeing evidence there is a demand for services. Managing that is transition. Shedding some of the old drivers. The economy, industrial output. Those drivers are being replaced by services, demand for tourism and health care. Indicate they are managing that. When you look at this data and you see some things are down. Industrial reduction, fixed Asset Investment down. If you wonder how can gdp come in above estimates . It gets to that it gets to the issue of whether this data is sound or not. Jonathan nick wadhams in beijing. Thank you for breaking that down. Lets get this conversation going. Were joined by hao hong. Where do i start . I look at this figure and it used to be something that people would talk about quietly in the corner. The gdp figure did not mean anything. The data is suspect. People doing that openly. Maybe they choose 6. 9 . Not too hot, not too cold. It is is it an accurate reflection . Hao i think we need to look behind the numbers. Already, we have seen coal, Power Generation coming down. That is confirmation that the Manufacturing Sector continues to slow. Once you look beyond the slowdown in manufacturing data, factories see the pickup, also a reasonable pickup in the real estate sector itself. Buying is picking up. Construction has been up. Slowdown inpast the manufacturing data and look into the fourth quarter, we could see a slightly continued slightly above consensus expectation. Junk of slowdown on the manufacturing side isnt anything new. Of the Service Sector p dow want discuss that. You have a stock market rout, the Financial System that came under pressure. The Service Sector continues to perform what is the story . Hao at the moment, the Service Industry is taking over 50 of the chinese gdp. Also, back then, each percentage 120dp growth takes up Million People employed. To 180has gone up million. Easily desk it would solve the unemployment pressure in the chinese economy. It would solve the unemployment pressure in chinese economy did economy. Jonathan i want to talk to you about before when it was manufacturing people would use freight, electricity consumption. Is the Service Sector as if the Service Sector takes over, do we need to check do we need to change the proxies that we use . Hao i think lack i think we , newthe freight shipment lending growth. In growth is a powerful indicator of how the chinese growth is going to be. The other two indicators are less relevant because Service Sector has been taking over above 50 of the chinese gdp. Going forward, we need to Service Sector is going. How the unappointed situation is going. Demand. Labor supply and them give you a strong indication of how the Employment Situation is going. All those keep in mind. Stronger than expected that in the past month. I would not be surprised to see Economic Growth strengthen. Jonathan hao hong, great to have you with us this morning. Joining us live from hong kong. Next up, crude reality hits saudi arabia as the nation is said to be laying payment to contractors. Said to be the laying payment to contractors. Jonathan here are bloombergs top stories. Chinas economy expanded in the fourth quarter. Gdp rose six when i percent, propped up right a Strong Services sector. It remains the slowest expansion since 2009. The u. K. Is rolling out the red carpet for zhejiang ping as he for xiis first jinping. That theyficials say will announce something of big value. Deutsche bank will replace several senior managements several senior managers. The biggest management sake up and more than a decade shakeup and more than a decade. The crude reality. It is settling in for saudi arabia. According to people, Companies Working on Infrastructure Projects have been waiting six months for payment from the government. Lets speak to Matthew Martin in the by. Great to have you with us. What measures are being taken to the saudi government in response to the oil slot. Isnt that bad . Matthew what we are seeing is the government is starting to enact a series of measures as the reality of the oil price and the fact it is going to hover around this level settles in. The government is coming in is coming from a position of strength. Ares aware that things going to be worn down as he carries on the pace of spending. We are starting to see the government move into catch reservation mode. We are seeing payments to contractors being delayed, six months or longer. We are seeing a freeze on new projects in the current budget year. We are seeing the government go back on some of the contracts and try to renegotiate prices. Behold dream of measures that are currently being taken by the government to limit spending. Jonathan in terms of the outlook, what is the picture look like . Matthew this is the big question. Are very much focused on the last few months of this year. The big question is what happens next year . It looks like the oil price is going to stay around the same level. Revenuess government are around 50 lower than they were 18 months ago. Were going to have to start seeing some very targeted measures. Weve already reported that the government is looking at next years budget and capital expenditure. They are trying to put a cuff there of 8 . There is a Program Going on in saudi arabia as they are building metros, stadiums, infrastructure. Hospitals and schools. There is a huge Spending Program that is there. The government is looking at measures to reduce spending. Are areas to cut. Cutting from social spending and government salary and bonuses and spending on the war in yemen is taking up a huge portion of the budget. T area that seems to be next year were thinking it could be a challenging one for spending. Huge effects throughout the economy of saudi arabia. A lot of these private sector relies on government spending. Jonathan brilliant reporting. Thank you for joining us. Lets keep the come position going desk lets keep the conversation going. Almost three billion pounds in assets. Out ofde, a strategy saudi arabia. How much pain of a coming under . How much longer can they keep this strategy in play . When the oil price began to economistsmber of were forecasting that they were oil prices at 50. Whether that is a precise speculation is up for debate. There is some leeway and how long they can keep it. The pain is being felt and they will extend the terms. As a big consumer of oil services, they can they can afford to do that. Jonathan norway tapping its wealth fund. The 50the waves that crude creates. Julian it will be with the oil Service Industry. They are the people who are in the front line. The companies are having tough discussions about cutting contracts. We have seen this in the stock prices. That is the first wave through. Outral consumption coming to some of these oil states as well. How they are spending their money. Jonathan the city of london stands in this position. We know that it is great for the are 100, giving the players desk giving some of the investors are given some of the investors are big oil players. Julian it is a net positive for the consumer. It puts more in their pocket. The domestic economy in the u. K. Is good news. If youre someone involved in the Service Sector, the cutback in the oil price is good. Jonathan shakeup at Deutsche Bank. Jonathan good morning and welcome back. The ftse 100, where are we . Up. 4 . 75 . X up thats a bank undertaking a Major Management shakeup. Deutsche bank undertaking a Major Management shakeup. Caroline some bread some big exits. Some at Deutsche Bank for 20 years or so. He has to do something dramatic. Investment banking being hit by record low interest rates. The wonder after a 5. 8 billion euro writedown, they are making dramatic changes. Getting rid of some of the nikolayt helmed Asset Management being one side of things. Krause is going to be exiting the business. Rolling, jonathan. Jonathan here are the ends. Here are the ins. Women getting to the board. Orporate financing jeff irwin is going to be heading that particular element. He is already cohead with fan. He takes over the Corporate Finance element. The other area of focus, institutional clients. The man who helped grow the equities business is focusing on that area, garth ritchie. Print is going to be coming in from black rock. Hes going to become the head of Asset Management. They are setting up a digital bank as well. Really interesting move coming from john cryan. Phenomenal problems for the on jewnd you chain nshu jain. There are 8000 jobs going across the bank. This is dramatic moves from john cryan as he tries to make it more in festival. A better return on equities. Bloomberg. Tay with our banking coverage continues with an interview with jpmorgan ceo, jamie dimon. Do not miss that. We are back with julian chillings worth. Julian chillingworth. You have limited exposure to the sector. Is it more pain to come for the banks . Julian the regulators are not going to ease up on things. The rationalization we have seen this morning in deutsche, im sure there is more to come there. Say thatit is fair to life is owing to become very tough for these guys. Jonathan in the race market, we call it low for longer. Why is that . Julian the returns on investments that we saw them get over the precredit crunch. Iod is notcrunch per coming back. Could range on for another 10 years. Jonathan julian is go to stay with us. Well hear from a your president. His concern of a british exit from the eu. China isnt quite as important as those numbers would lead you to believe. The effect may be overstated. The point is the u. S. Economy continues to do well, and the u. S. Continues to pick up, then things in the Global Economy are probably not quite as bad. Policy. Is some if you look at the first half of this year, one major concern is a lot of traditional growth measures have not been effective. Data, look at todays investment still remains weak. ,f you want to stabilize growth stabilize investment is still the key. We predicted Going Forward up to 2025, china will double the level of its built assets. Up to 100 chilean u. S. Dollars. Up to 100 trillion u. S. Dollars. Jonathan that is the big news. The headline. 6. 9 dp reading coming at in china. The slowest expansion since 2009. This week. Things are ok. 5 . Tse 100 up by Deutsche Bank, the big move, lets get straight to it. Caroline big moves coming in. Im going with the leader of the pack. Were talking purity cents over and laboratory. Phenomenal growth. , up 7 . Ading the charge the reason, we are going to hit our 2017 revenue goal a year early. Were going to get to two on a half minute were going to get to 2. 5 billion. This is a company that is scaling rapidly. Meanwhile, metro doing very well. Secondbest performance in the stoxx 600. Its results result of being liked by analysts and investors. Sounding upbeat and optimistic. Estimatess have met after selling off a little bit before. On the downside, owen the. Playing into the saudi arabia news. The glut having significant issues. Saudi arabia when it comes to contact us. Omv having to write off significant assets to the business. Why . Prices are continuing to fall. Oil prices beginning to be at 55 a barrel. Youll see an improvement. 2018. E a dollars by yet to really assess and reassess what the value of their businesses. Back to you. Jonathan caroline hyde, thank you very much. Lets talk politics. We can bring you an exclusive interview. Started bycqua asking about the risk of the u. K. Exit from the european union. Done business across 35 countries in europe, i would have to say it is important that britain stays in the eu. However, we are committed to doing business in the u. K. This is a great market for us. One of our biggest markets. To be a place that we are going to be where a lot of the future of coffee gets made. If you walk anywhere around london, it is the most competitive Coffee Market in the world. We think that is a good thing. Being the center of your competition is really important to being debated. If this country decides to leave, how would you view that . Would you change headquarters . Do you start thinking about it now . I dont think it impacts us at starbucks. I think it is a multinational company. We think it is important that britain stays in the eu. Jonathan someone else with a view of a potential eu exit u. K. Exit. He told us what he expects in the pyramid leading up to the referendum. It feels like theres going of uncertainty. If i take two steps and look at earlier this year, the feeling amongst businesses is theres going to be a big period of uncertainty. To what theas outcome will be. You put that in perspective, it eriod ofke a p stability. Were hearing that from our investors and the broader u. K. If you put it in that perspective, it feels like the u. K. Is in a pretty good position. There is to be some uncertainty. My preference would be find what does that mean . That means getting opera concessions and being particular about what they are here it it means getting proper concessions and being particular about what they are. Jonathan julian, how do you prepare for an event like this . Contingency planning. As an asset manager the start stress testing your portfolio . It is going to be quite a long lead time into this boat. Cameron if he can will try to go early. We have been talking about this as to how what folios might need to change. Also how we should communicate with our clients. It is going to be a very big issue. David cameron is going to come back with concessions from europe or jonathan until then, we do not have a campaign. There are no issues to campaign on. As you look at cities in the market, not would get a lot of people saying that this is exclusively in fx story. Do you buy into that . Having chatted through with you earlier, i think it is sign jonathan where is it . Where is the equity plan . Julian they will print cash. All in all, i dont know if they are a net winner. There are going to be some percent with particular niche is. At the end of the day, it is a bond story. It is a currency story. Jonathan i remember the referendum. A political generation in markets. You had the election. There was not much of a response. Afterwards we got the result. The referendum a little bit different. We woke up that day with that poll that said the exit had the lead. Is that a trigger point . Julian i think we have to be careful about polls. Whatever the polls say, the market will be very simple. Yes, i think the markets will be you should have been with the scottish folks. Perhaps, they had the weight of money. Chillingworth,n rathbone. Thank you for joining us this morning. Pmk aboute talked to the new reality of Lower Oil Prices in their u. S. Business. That is next. Jonathan good morning and welcome back to bloomberg tv. That you up to speed to where stocks are trading. Ftse 100 up. We are higher up by. 7 . The dax in frankfurt, also higher up by 85 points. Lets find Deutsche Bank stock which is being fueled. Investors like it. There stocks up. Switch up the boards. We check out we will check out the fx market. The euro flat on the da