4 buiillion in wealth managemen. Our markets business on the debt side, even relative to the last First Quarter last year, were up more than 10 . In equities, substantial improvement over the Fourth Quarter of last year. The only business which is slightly down is our Transaction Banking business. But thats a function of the fact that we have exited a number of countries and also exited a number of highrisk clients. Let us especially talk about clients. You are saying in that letter to employees that clients are coming back. Are clients reassured about the stability of deutsche . When you look at the performance q1 number, we are north of 14 . Thats a very Strong Capital position from which were coming. The funding position of the bank has substantially improved. We now are able to talk to our clients based on a completely different starting point. And we see that reflected. Many people came back when they heard about the settlement with the department of justice. And there was kind of a next wave which kicked in when we announced the Capital Raise. Lets look to the states. The United States is very important market for you. How concerned are you about the Trump Administration being a nonworld trade bank . You are absolutely right. The u. S. Market is a key market for us. Its a market, in particular when you look into our corporate and Investment Banking business, were very active. Its important for the franchise. We do see a substantial pick up in client activity in the market. We are participating in that. When we look at Corporate Finance business, in the First Quarter were up 29 , which is a remarkable result. So, you know, to the extent and you never know to what you can attribute this to you, whether its the administration or Better Business sentiment, but we see an active u. S. Market. We are benefitting from that, like many others. What is the message to shareholders from your side for 2017 . Can you keep the momentum up which were seeing in First Quarter . So, i guess core messages would be this is not going to be a loss year. The bank is doing its utmost to end the year with profit. The First Quarter was a decent start. We are starting at least with a cushion in the First Quarter, which can always be better. But thats a decent start. Thats point one. It will still be a bit of a yearoff transition. Theres legal matters we need to work through. Still i. T. Projects we need to implement. Its also not that we had to we had the big cases out of the way, we have the Capital Raise and the next day everything is honky dory and revenues come back overnight. It doesnt happen like that. Things take tile. We need to work. We need to work hard what we can definitely say, the bank has turned. Every business is improving. Its now going to be up to us and the markets how fast this improvement will translate into better numbers. Annette is in frankfurt. Am i right in saying that even if theyre looking at 2017 as being the transitional year, they are still sounding a word of optimism. Y therees, theres a word of optimism. Ive been covering that bank for years and years, you can feel change in that bank. They are optimistic, not bullishly optimistic. Theres a sense of optimism that they need to work hard to get clients back, to get money back, asset back. And it seems to work. Thats the core message for the First Quarter. That they are seeing client activity picking up. They are seeing clients coming back to Deutsche Bank which they lost last year with that whole instability surrounding the bank. And thats actually the positive message. Okay, theres still many issues out there. We have the legal case in russia yet to be settled. Dont know whether the doj will go again for a very high settlement fee here. But still, i think the lump sum or the bumper year of legal settlement is behind us. Thats also the core message. When it comes to another area, which is interesting because of course Deutsche Bank being a german bank, its very big here but also big in the city. Weve been hearing that theyre looking at moving 4,000 jobs from the uk to frankfurt. I asked also whether this is the most extreme scenario. The interesting answer is its not the most extreme answer. It can even get worse. So there is a lot of Movement Still for the bank. Back to you. Annette, thank you very much. Good to see you. Well chat later, because well be doing a special ecb Program Later on. So no doubt well have annettes input for that. In europe we were called off by a couple of points. Lower by a half percent or so on the stoxx 600 as you can see here. So were just a bit lower. We have this u. S. Tax cut plan laid out to us by trump, but a lot of analysis is stating that hes just repeating his campaign promises. We dont actually have new information, including details on how the cuts would be paid for in the states without increasing deficit. That could lead to worries of growth from the u. S. As well. Well get stuck into this later on. European equity markets are down across the board as seen on the screen. When it comes to the sectors, majority of selling taking place in the big ones like insurers, basic resources, media off by 1. 5 . Technology hanging on to slight gains. We will Talk Technology in about ten minutes with arjen. Lets talk about some Bigger Picture things taking place, Steven Andrews is with us this morning. Good morning. Good morning. Glad you turned the phone off so you dont get anymore calls about where the kitchen utensils are. What do you think about the markets, given weve seen this massive rally coming off the month of april, but nevertheless the Political Risk is out of the way, were looking optimistic with regards to growth. Anything to prevent this from moving higher . Will we see a correction . Theres always something to prevent us from moving higher. Its interesting how we frame our anxieties. Its all about politics. We know less about politics than we know about economics. What we can know are the facts. Theyre improving. Equity valuations look still pretty fair. So you get compensated for taking risk here. Youre talking both uk, europe, u. S. Or are you particularly focused on the u. S. . Talking worldwide. We can break that down. There are areas of asia, south korea, taiwan looking attractive. Both the euro area and to some extent the uk. The euro area is a particular target for us now. Were seeing growing earnings, better cyclical data. Even though it feels like a consensus call, doesnt always mean its wrong. Whats the ecb going to do today . Even if they leave rates unchanged, will they change language significantly . They might do. You have to be careful as to why you care. Why are we watching . There are two aspects to the ecb statement. One says heres what we think might happen, heres our language selection, whether we will include this word or that word. We can play the language bingo game of saying is it included or not included . Thats fun but a waste of time. We dont know much about what the ecb will say. More importantly, what are the ecbs fears . What are they worried about . Whats the reaction function . Are they facing growth or a fear of inflation . Under mario draghi, its much more about saying we support growth. The challenge for the ecb is to continue to articulate that in an environment where people are saying worry over. Lets restore normalcy. Do you think inflation will continue to move higher and pose a problem for the ecb sooner than what they might be anticipating . I think it will pose a problem of dialogue, communication, rather than a fundamental problem. Sure, inflation can move higher, theyll have voices calling from the inflationists saying you have a problem here. It will be a test of draghis mettle saying we need to standstill for a long time. European unemployment is high for a long, long time. How do you think well react to tapering . Weve seen tapering already. How do you think well react to the complete unwinding of stimulus if, indeed, thats the continued path were heading down. Depends on the circumstances, if the underlying fundamentals have been supportive. Lets say we forget about the importance of tapering, forget about the priorities of the feardriven motivations and think about hey, how can i get on this equity bull market . How can i take advantage of this renewed optimism about the region . Its very simple how some narratives can change but the same set of facts the euro area once seen in crisis is described in somewhat more robust terms now. Were just so far behind with regards to getting out of the tapering scenario. Getting out to the start of the still plus scenario compared to how the u. S. Did it. There is a lot of catch up doing undertaken from a policy perspective and from a fundamental perspective. Too many people out of work. That needs to be brought back in. Its not just about Monetary Policy. Biz the fess cits about the fi side and deregulating. Steven, thank you. Coming up on the show let me say as well, get your emails in. Find us on twitter louisabojesen. Is it the return of renzi . Were live in rome bring you the latest on italys democratic primary. Good morning. Welcome back. Im louisa bojesen. This is still street signs. Nokia beat analyst forecasts with a better than expected quarterly profit before interest and tack taxes of 341 Million Euros. First quarter Revenue Growth slowed at the advertising giant wpp dragged down by a few major account losses and a declining ad spend. Like for like sales rose by 0. in the quarter. The ceo, sir Martin Sorrell, said china is down. Were down in china 6 , 7 , weve seen multinationals come under heavier pressure in china the growth in the economy is being driven by real estate and construction. Theres been some loosening from an Economic Policy point of view in china. But i dont think well see any significant change until after the Peoples Party congress in november. Samsung shares hit record highs after the Company Reported the strongest First Quarter profits since 2013. This is thanks to a boost seen in its memory chip business. The south korean tech giant said it was expecting continued growth in the second quarter, that as it rolls out the new galaxy s8 smartphone. Arn Arjun Kharpal joins us with more. It was a positive earnings outlook to kick off the year for samsung. The strength came from the components business. These are the memory chips theyre selling to other companies for their smartphones. This accounted for 45 of sales, thats up from 34 of sales in the First Quarter what that underlines is the shift samsung is going through, diversifying business away from just smartphones. Before they were reliant on smartphones. Now they say they have components and displays, which is the screens that Many Companies are wanting to buy now, including reportedly apple who might be buying some screens for samsung for the next iphone. So overall a good quarter for samsung. Do you think theyre trying to diversify more after the note 7 fiasco in. Yes, it showed the reliance they have on the smartphone business, but overall the smartphone growth is slowing globally that should be a concern for apple and samsung. So weve seen from samsung a shift into other areas of business, including the internet of things, home appliances, but also focusing on the ultra highend smartphones. If you look at the galaxy s8, it costs more to make and theyre selling it for a higher price, which ultimately helps revenues and margins. This is the point, people are willing to fork out money for higherend smartphones. Thats a trend samsung and apple are tapping into. What else can it do that the 7 couldnt . Im always struck about how small the differences are sometimes yet everybody rushes out and pays a bunch of money for an upgraded version. Straight off the bat is the bigger screen and the new design, molding this Glass Technology to create this bezelless display, as it were. And a lot of improvements going on under the hood, new components underneath. Its faster t h, it has new sofe in it. The innovation for the future wont really come from the hardware. A lot look the same. There will be small innovations like screen, but a lot of developments on the Software Side and the machine developing and Intelligence Software being put inside. And the 30 price difference. Weve seen the stock run up strongly before these earnings. Thats likely to continue through the end of the year. Arjun, thank you very much. Doeeutsche bourse shares ha beat expectations. He would heard from the deutsche head earlier. Lufthansa in germany still has posted a wider net loss than expected. The Company Says Demand at the air Freight Division and Maintenance Unit has taken off and its seeing improved price trends at the airlines. The airline reported an adjust the earnings before tax of 25 Million Euros against a loss of 53 Million Euros. Bayer raised its guidance for 2017. Earnings and sales at the drugmaker topped estimates with the covestro business providing the boost. The cfo will be leaving in may of 2018. And continuing with the german role, basf posting a 29 rise in ebit in the First Quarter. They remain cautious on the 2017 outlook but expect fullyear profits to come in at top end of the forecasted range. Now, putting germany to one side. In italy the partyleft pd party holds its primary election this weekend to select a new leader. The polls show the former Prime Minister matteo renzi will win by a comfortable margin. Renzi resigning after the referendum defeat. Is this really back into politics for him . Based on the polls it looks like hes likely toned up the candida to end up the party candidate. He was up on stage last night debating against two of his main opponents here in the primary. One of them is a governor, and the other is the current minister of justice here. Andrea orlando. One thing renzi was focused on during his conversations was about the European Union and italys role in europe. This is something he always put at the heart of his candidacy. Hes been a pro european candidate for a long time. In italy there are movements against the European Union. The five Star Movement and their coalition partners. Theres a lot of euro skepticism at the moment. Theres also the italian attitude towards russia. I spoke a while ago to the head of the Parliamentary Foreign Affairs committee here, and she told me she saw russia as a major threat to italian politics. The way the russians are getting close to movements and want to divide the European Union, the european integration process is threatening. And i think that we can subscribe the five Star Movement to this part of the european political spectrum. I think that its not in the interest of russians to ever weaken European Union. Having a strong European Union is more convenient for them to have a Strong Partner probably is a bit too much now to nominate each other. But to have a strong counterpart with which to negotiate and to have a dialogue. Having smaller european states, each one going in its direction and leaving nato exposed is the only alliance that keeps us together, i dont think its in the interest of the russians as well. Thats the head of the Foreign Affairs committee here in Italian Parliament speaking to me and talking about russia potentially needing a strong European Union. One thing we do hear a lot about is how russia wants a weaker nato. Later today the nato secretarygeneral will meet behind me with the italian Prime Minister, gentiloni, one thing they will be talking about is the threat from russia. There are fighters right now in estonia. That build up in the baltics, including french and british troops is something theyll be discussing. Some people in italy from the fiveStar Movement in particular say italy should consider taking its troops out of nato. Thats clearly something that they are concerned about. Thank you very much. We will see you soon again. Willem joining us from rome. Is he still there . I wanted to ask about rome. How is rome, apart from all the political coverage. It looks a bit dreary at the moment. It has seen sunnier days, put it that way. But theres a lot of lovely cappuccino here. We had an interesting morning talking to people about the italian political situation. Its really up in the air as to what will happen in the next general election. One thing that renzi focused on, you remember that constitutional reform referendum that failed is trying to change the way that italians select and vote for their politicians. The instability in italian politics is largely because of the weight of the pr