We are here in london. Im guy johnson. Francine and im francine lacqua. We begin with Deutsche Bank dramatic rebound. The german lender plans to reduce cost and cut back its ownership of its consumer unit. Guy for more, lets go to hans nichols from frankfurt. Where is the bank trimming cutting, where is it looking to grow . Hans they are going to be cutting in retail units. It is not just postbank. Deutsche bank itself, their retail outlets will drop by about 200. There are currently about 730. They are trimming back the investment bank, but they are also redeploying some 50 billion to 70 billion in assets into relationships and clientbased services. They are looking to shed about 200 billion in assets. That is going to get their Capital Requirements to about 5 . Before, their goal was to have a return on equity of 12 . In 2015 they came in just north of 3 . A lot of that is litigation costs. They were hit by 1. 5 billion. We are heading into a press conference shortly. We want to find out where the job cuts are, how many, and what is the overall strategy in terms of the investment bank. Francine that is what we dont know, we are still trying to find out. You are also speaking to the coceo later on. Hans we will bring you that interview in about two hours time. We will see how long this press conference goes. We are going to really press him on what his clients want to hear and who are his competitors. Before, Deutsche Bank was a onestop shop. Are they trimming back, where are they trimming back . Do they still think they are spaced for a handful of Global Investment banks and they still want to be one of them . What are they going to do about fixed income commodities and currencies. Will they continue to invest there or is that just a oneoff revenue bone because of oneoff revenue boon because of quantitative easing . Francine thank you so much hans nichols with the latest on Deutsche Bank. That News Conference starting in about half an hour. Guy one of the political questions at the moment is why european banks are reacting the way they are. Deutsche bank making significant changes to its business model. The twitter question that we have is are european banks overtaxed . Francine you can tweet us. We had that great story on hsbc. Our newspaper reports suggesting that hsbc will have to sell off its retail bank unit. This is something weve talked about a lot. There is regulatory pressure to break up hsbc. Last week, they announced that they would change headquarters, or they were reviewing the possibility of changing. Guy you have to have a separate board, a separate structure. Why do you want to have that business when the regulatory structure is so onerous . Why dont you just go elsewhere . They employ a lot of people in the u. K. , but deutsche is a derivation on that as well. Every regulation, heavy capital cost. Francine the power struggle for the wheel at volkswagen has ended. Ferdinand piech has resigned. Chad, why did piech lose this time . Chad good morning. It seems that he simply miscalculated. He had a history of running this company for two decades. He was used to getting his way. He pushed out other executives when they didnt follow what he wanted. He thought he could do that in this case. The difference is that Martin Winterkorn was in a position of strength. Volkswagen last year reported record profit and record sales. Mr. Winter corn was able to line up the other power players on the nonexecutive board that runs the company. Essentially the labor leaders. Even some of mr. Piechs own relatives, including wolfgang porsche, his cousin. They all backed mr. Winterkorn. Guy lets talk about mr. Piechs strategy. He has acquired all kind of businesses. Ducati, they run a group that makes everything from the soft to golf to all kind of other cars. He built an empire. The stock is up today. Is that because there is no more empire building . Chad thats exactly why the stock is up today. He did create a 12brand empire. He started in the luxury car segment, buying porsche. He didnt buy audi, but he was the one who made audi into the behemoth it is today. They are number two in luxury car sales fighting with bmw and mercedes. He also bought man ansd d scania, and he expanded significantly in china. China is now volkswagens largest market. They have more than 12 factories there. One of the reasons why the stock is up today is, investors hope the empire building is done. Empire building is very expensive. That would perhaps leave more money for investors pockets. Francine where do we go from here . Does piech still have any influence . Chad the thing to remember is that his familys Holding Company control volkswagen. That is where a lot of his power comes from. He is still sitting on the board of this Holding Company and has some veto power over decisions. He can continue to fight if he wants. None of us know what he will do. He could continue to fight for what he wants to take place at volkswagen. Francine chad, thank you so much. Chad thomas with the very latest on this political wrangling at the top of volkswagen. Guy it is a fascinating story. What else is on our radar this monday morning . Hsbc shares are up in london and hong kong after a sunday times report that it may sell off its u. K. Retail bank. Also, this follows from an early report that the company has plans to review its domicile in the u. K. Newspapers say hsbc is considering spinning off the retail bank. They may consider moving from the u. K. Francine apple is expected to report that earnings are up by more than 20 when it posts secondquarter results today. Strong sales in china are suspected to drive the boost. Net income is expected to be 12. 6 billion. Guy as greece continues to deal with its debt crisis, air berlins chief executive has told bloomberg that a greek exit from the euro would have a minimum impact on the travel industry. This is not very important. If there is a bus blown up in tunisia that could add to the situation. [indiscernible] francine still ahead, hsbc shares jumped the most since 2011 in hong kong. Details behind the move next. Guy an i. T. Tie up. Gemini greece we will speak to the cap gemini ceo. Francine happy birthday to the a3 80. We will look at the airbus jet having a midlife crisis. All that and much more coming up on the pulse. Guy welcome back. You are watching the pulse. We are live on bloomberg tv, on the radio, streaming on bloomberg. Com. Hsb shares in london are up. Shares in hong kong jumped the most since 2011. The move follows reports that they may offer the u. K. Retail bank. Stephen engle joins us from hong kong. Stephen i guess this follows on from the reports late last week that this institution is considering where it is going to be domiciled. I guess spinning off the u. K. Bank may be part and parcel of that. Stephen it could help facilitate that move. It has been the buzz in hong kong. The stock surging as much as 6 the most in one session since 2011. It is now at final settlement in hong kong, up about 3. 6 for the day. That is on top of a more than 4 gain on friday. That news from the chairman saying they are considering moving the domicile outside of london and analyst we have spoken to say the logical choice would be the original birthplace of hsbc, the former Hong Kong Shanghai banking corporation, being hong kong, which was founded here in shanghai. The other news that came out yesterday, the sunday times stating that the banking could be spinning off its u. K. Retail business, recreating midland bank, that hsbc acquired in 1992. This price tag, according to the paper, 20 billion pounds. By no specifics how should i say, no source of this information given in the sunday times report, other than to say that the deal is not necessarily imminent. Francine stephen, when the story broke on friday that hsbc was reviewing its headquarters a lot of analysts were saying they have to find jurisdiction which would welcome such a big group. With it comes a lot of regulatory concerns. Would there be any concern from hong kong about this . Stephen this is what the Hong Kong Monetary authority came out and made a statement on friday following those comments from hsbc saying we would take a positive attitude, should hsbc decide to move. They also cited the deep historical links that the bank has with the territory. I think you can read between the lines to say that hong kong would welcome the head orders back here for hsbc. Francine Stephen Engle there from hong kong. Guy the hong kong and shanghai bank, i guess they feel some sort of responsibility. Francine they feel like it is coming home. Maybe regulators have Something Else to say. Guy they are up for it. Here in the u. K. , 10 days away from the election. Conservatives are dedicating the last full week of campaigning to highlighting the success of their strategy. Labor plans to unveil some i guess you could say some fairly big schemes. The housing story is really interesting. We have seen how things stand out. For more on the u. K. Election the director of a think tank joins us now. This last week, do you anticipate that it moves the dial . Nothing thus far has really changed in this election. Weve seen everybody preaching to their bases. It sounds like labor talking about firsttime buyers. The conservatives talking about the economy sounds pretty much true to form. It is very rare in the last few days of election campaigning to shift unless you think of netanyahus victory in israel. Youve seen the conservatives trying to use the idea that a vote to labor is a lastminute win tackett win tactic. Theyve neutralized it. Each side has affectionately has effectively neutralized the other side. They are actually at parity. Every result we have is within margin of error. Roughly speaking, there are 175 vulnerable seats in the u. K. Election. About 7580 are likely to change hands. They are only going to change hands by on average 8000 floating voters in each constituency. Of those 8000, 4000 will have decided to move from one party to another. 4000 havent yet decided, but will vote. Normally, those movements cancel each other out. I see nothing within the present offers that says that one side will prevail. Francine the problem is, we dont really know the policies we are looking at. The combinations with other smaller parties mean that five votes either for labor or the tories, i dont know what im voting for. Stephen phillip what youve got in my opinion is an election that is too complex. People use very simple intuitions to decide on their vote. These foundational intuitions are set very early on. The trouble is, they are based on a very Standard Base campaign. They only appeal to their bases. As a result, what weve seen in the past few weeks is desperate appeals to the center. They are too little, too late. Labor looks more austere than the conservatives, but the conservatives have made loads of unfunded tax proposals. But it is too late. The foundational issues have been laid. When crosby said, we are scraping the barnacles off the boat, all he did is restore the conservative ship, if you will. The same old course is one theyve always lost. They havent been able to command the majority since 1997. What we are seeing is two old parties unable to innovate. This is true across europe. In europe, because they dont have this system, the barrier to entry for new parties is much lower. Europe is fragmented in very dangerous ways. You are having sweden, 15 of the population voting for a clear nazi party. In france front nationale, it looks like they will win the president ial election. People are going for the extremes. Both of the main parties, left and right, are on longterm downward trends. Neither can speak to the new reality. Britain is just facing this for the first time. Because our political system facilitates against new entrance, it is just beginning to break. It looks like we are going to have a coalition and we dont know what it will be. People in my view will vote with their base intuitions. Guy the labour party says it wont form any kind of coalition , whatever form that takes, with the snp. So they are going to struggle to create a government that has any longevity. The conservatives are going to struggle under the current terms as well. What are the chances of the two parties coming together . Phillip dont believe a word that is said about labor and the snp. The reason labor has accepted it is going to lose its seats is that it fears the tory attack line that the snp and labor are one and the same. You can back what miliband has said and have a confidence in supply relations. He might rule it out, but it is not up to him. If the snp decides to back him he hasnt done a deal, and yet they have said they will keep labor in power, so nobody breaks their word. Could even be an unwritten confidence and supply deal. They presented to the house of commons and the house of commons passes it. Guy would that shift labor to the left . Phillip i think youd have to say yes. They dont want to face another election. I think it would undoubtedly shift people to the left. I think that going to the extremes, either right or left, is the future of this sort of politics. The majorities are no longer bound where the main parties are. Guy are the english are the tories going to rebrand as the English Party . Phillip it would be the southeastern English Party. We are looking at, remember you cant, the party of the right umip,kip, the party on the right, if they come second in even 50 they have the ability to overtake the tories in some key areas. The north, i think, is going to be lost by both labour and the conservatives. Francine very quickly, why is David Cameron not polling better . It has been a success by a lot of measures. Phillip my own take on this is that what cameron did fatally is he gave up on his own individual distinction from everyone else. When he gave up on transformative conservatism, he lost his definition. The conservative party is the most Unpopular Party in britain. His brand was very different. Because he reverted to type reverted to the core vote, his appeal is no longer enough to pull the conservatives over the line. Francine thank you so much. We are back in a couple minutes. We also just found out that mr. Rajoy of spain says there will be elections by year end. Francine welcome back. The search for survivors of nepals deadly earthquake has entered its third day. Dozens of aftershocks have hindered rescue efforts. The quake killed more than 3200 people and injured as many as 5000. Guy Deutsche Bank plans to reduce costs to cut back its ownership of its consumer unit postbank. The german lender will reduce the number of countries it operates in by as much as 15 by 2020 and close 200 branches. The chief executive officers are under pressure from investors as the banks stock has been one of the worst among its global peers during their tenure. Francine we will be back in a couple minutes. Francine welcome back to the pulse. Im francine lacqua. Guy im guy johnson. Rescue efforts in nepal are in their third day after an earthquake killed over 3200 people on saturday. The death toll is still rising. Dozens of aftershocks are hampering relief agencies. The risk now is that waterborne disease, the damage to nepals water and Sewage Systems has been expensive. Francine lets get to bloombergs battery pearson Natalie Pearson in new delhi. What is the latest . Theres been a piece of good news. A group of climbers that were trapped on Mount Everest have been helicoptered out to base camp. They had been trapped earlier in the mountain when an avalanche blocked their way down. Back in the capital, in kathmandu, the situation is still bad. The death toll has climbed above 3200 people. It is expected to climb further. Many parts of the country are inaccessible due to poor infrastructure. Guy what happens next . We hear concerns surrounding waterborne diseases, the sewage system. What are people saying and doing . Natalie that is a big concern. There is no water supply. There is also no power supply. If you dont have power, you cant pump water out of the ground. Most of the pipes have also been damaged. Those who have drinking supplies , bottled water, are ok, but those supplies are running low too. Cholera is endemic to the area. Authorities are worried about the outbreak area outbreak. Francine how much aid have they received so far . Natalie china and india have been leading the efforts. Theyve been shipping in supplies. An entire aircraft full of water came in today. Medicine, tents food, these are the things the government has been asking for. Francine natalie, thank you so much. Guy right. We have two important gatherings for european leaders today. Ecb and eu officials are holding a joint conference on european integration in brussels. The eu president the Foreign Policy chief, and the European Commission boss will be in kiev for a summit on the situation in ukraine. Lets join jones hayden now from brussels. Jones, what can we expect . Increasingly, people are focusing on ukraine and the need for action. The story with greece maybe overshadowing ukraine at the moment. Will this refocus attention . Jones i think for today ukraine may be the bigger story, at least for a little while. The ceasefire had problems over the weekend. We had some violations. It seemed like we had the most violence in a couple months in Eastern Ukraine. The international monitors said they still consider that it is holding, but it is the worst violence theyve seen since february. Now, the eu leaders are there in kiev. This is the first summit since the eu and ukraine solidified their relations with an Association Agreement last year. Ukraine is hoping they get another big boost of support from the eu. Francine what does the ukraine hope to get out of the summit today . Jones they are actually asking for a peacekeeping force to go to Eastern Ukraine to help with the situation there. They also would like some more Financial Aid from the eu. The eu just last week gave them a tranche of 250 Million Euros. At this point, they are reluctant to send any forces. They are trying to do this delicate dance with mr. Putin in moscow and make sure that relations in the area ge