Im wilfred frost. Good to be back. Feels like a whole week. I had a few days off. You had wells fargo. Were back together on a friday. So much Market Action to be discussing. No one better i would like alongside that. Fears about the future of Deutsche Bank shares. Dropping to a record low this morning. As you can see around about 4 . Were off the lows that opened initially down. Were off those lows but still down 4. 3 in german trade. Well have a live report from the firms frankfurt headquarters in just a minute with lots of analysis coming straight up. First lets check in on Global Markets. We saw an impact on u. S. Stocks yesterday. In the session u. S. Futures looking up this morning. Dow futures are up 14. 5 points. S p futures up almost one. Nasdaq up about. 4 after a brutal sell off yesterday that took the dow down 200 points and s p 5001 . Deutsche bank was seen as the culprit. Those adrs that trade in the u. S. Took a slide after midday. For the ten year treasury note yield you saw some safehaven buying. Thats why we see yields lower at 1. 54 moving south again this morning. Buying up treasury, buying up safehaven debt around the world. When you think yields cant go lower they are lower again. Also lower are european equities. The banks the worst performing sector. Dax down 1. 2 . Given the moves in some of the banks were talking 4 , deutsche, 3 credit suisse, 5 for commerzbank. Its not such a bad performance from the rest of the index as we can see the best part of 1 ftse 100 just over 1 for germany, france, italy and spain. Lets look at asian trade at this hour. Were looking at a positive performance for shanghai, up a quarter of 1 . That selloff on wall street affecting most asian markets. Japan and hong kong closing down 1 and 2 respectively. Oil a big story this week after it climbed yesterday again. Perhaps some profit taking this morning. Oil prices are down. Wti down a little more than 1 . 47. 30. Its an up week for oil and unexpected deal announced biopeck. Brent, 48. 64 down 1. 2 and gasoline prices down a percent as well. As for the u. S. Dollar lets show you where we are. Its stronger against the euro. We go back against 1. 12. Theres a bit of a risk off kind of feeling to this market. Largely because of the European Bank worries. 1. 99. We watch those dollar yen levels closely especially when the yen strengthens. The pound stays weak below 1 30i7. As for gold. Stronger dollar against the euro and stronger gold as well. Flight to safety up. 3 or 3. 60. Deutsche bank and we go frankfurt for the latest. Reporter thank you so much. While we have a letter from john cryan that the bank has never been better but markets really are playing a completely different story. So, of course, the equities of deutsche are down. Their bonds which are the most speculative bonds are trading at record loss. Cocos at record loss and spreading to the forex market. The swiss franc are up on the deutsche news. Deutsche is the biggest bank in europe. The biggest bank in germany. Systematically relevant bank and almost too big to pail out. That Balance Sheet is as big as one year gdp here in germany to give you a perspective of how big it is compared to the economic power of germany. Of course, there are rumors that the bank might eventually need to be bailed out by the state. The merkel government is refusing that. They are not doing or have been saying they are not talk about it, they are not thinking about it but at the same time we had reports saying that theres an emergency plan in the making and according to my sources berlin is actually really working on such a plan, which is in its infant phase, i would say, they are working on something to essentially stabilize the situation of the bank in case it is getting worse. Back to you. Thank you very much for that. So lets just recap some of the big movers in the share price recently. First of all to put things in perspective yesterdays move was very much down to liquidity fears on the news that we saw, that some of the Hedge Fund Clients had left the business. Just to put that in perspective a total of 800 clients in that business been stable. Reports out about ten. About ten. And as for assets they have 300 billion euros in client assets and 4 billion euros over the last quarter. Those are the numbers. More importantly lets look at their Liquidity Position to fight back. Their Liquidity Position is strong. They have 223 billion currently of liquidity reserves. Thats equal to about 20 of their assets. Thats way more than a likes of lehman and bear had. Not to mention the european sma central bank has been all in in funneling money. Liquidity is not the problem. Exactly right. Their liquidity is strong anyway if things get worse Central Banks are in a much more prepared position around the world than they were at the time of likes of bears and lehman. So they got a lot of liquidity. Lets look at the second issue thats affecting share price over the last couple of months. Thats the doj fine, reminder of the size of that. Doj has asked for 14 billion. Deutsche bank says it will pay less. The leak and market move then have increased the push. This you would say is a massive one. The clock is tick on it. They have four weeks to sort it out. However its a one off issue unlike the liquidity concern where people feared it could be more selffulfilling. If we can go back to basics on banks. Clearly Capital Assets leslie builts, liquidity percentage of assets. Deutsche bank has lots of liquidity, they got small amount of capital not cash. Small amount of capital. So insolvency is a risk. If this doj fine comes in bigger than expected or takes too long to arrive and their capital falls thats a big fear for them but not selffulfilling. Liquidity is not so much. So when we saw big moves yesterday based on stories of liquidity concerns im not too worried. When you see big moves because investors fear this fine will be 14 billion thats a fear. But they have ample liquidity. If the doj fine doesnt come any time soon or too big thats a big issue. Last night it said politically does the doj dont responsible for helping to bring down what is one of the Major International banks, the biggest bank in germany . Probably not. Maybe that political pressure could ease. The other thought is theres a negative feedback loop. At some point all these negative headlines and this sort of perception problem which is the way i think Deutsche Bank has been responding to some of these problems, can amplify and can hurt the stock price and then can put the bank in a tricky financial position. I think the doj is probably waking up to that aspect. Do they want to do this. We heard stories they want to sort this out quite quickly. We expect or the bank hopes they will go settlement soon. I think if you get a settlement of around five or six even those thats higher than the initial, that would be taken as a positive. Market doesnt care how big fine is they want it to be kiermd and move on. As to the selffulfilling nature these things can get out of hand. They got enough liquidity to deal with it. For more clients to leave from the hedge fund part of the business, is Deutsche Bank still doing a good job. Still top three in fixed interest, commodities and currencies. There isnt a selffulfilling nature and they have liquidity to stamp it out. Crucial to separate liquidity issues and credit issues. Absolutely. For his part, this ceo warned customers to tread carefully and stay away from Deutsche Bank banks. He calls the bank unanalyzable. He said its too binary. The market is going to push down Deutsche Bank until there is some recognition of support. They will get assistance if need be. Angela merkel, how could she not step in with a yes theres a german election coming next year but she wont now before it gets to crisis level. There has to be a crisis point. Whats underestimated about potential for state bailout is where that crisis point has to be. It has to be super, super deep. The reason being we just had the italian banks denied a similar state bailout by germany. This would be the biggest example of the european project being run by the germans for the germans. If we got to a point of germany bailing out Deutsche Bank. After they went after the peripheral countries. Thats the biggest example. State bail out is slightly overestimated stateside as a potential backstop. I dont think Deutsche Bank is in that much trouble but i dont think a state bail out is likely. Weirdly the italians would cheer it. They would say you hypocrites but cheer it because then they could do the same thing. Theres a lot of political pressures. The one statement i do see as possible, purely conjecture on my part is her paugt bit of pressure on the u. S. Government to put pressure on the domg to say your going cripple us . We have no evidence of that. Thats a slightly more plausible way for her to get involved. No reports of that happening yet. European central bank governing counselor commenting on the banking situation saying he doesnt believe europe phoenix new banking crisis. He did suggest the Financial Sector is in a transitional phase. Says he doesnt want to overdramatize it. He isnt commenting on the troubles Deutsche Bank is face. But he said its important to consider all consequences before letting any Financial Institution go bankrupt. Switching focus, i cant believe this is the less big of the two banking stories. Lets go to wells fargo. Of course the ceo john stumpf face a second hearing in nine days. He agreed to important fete 40 million of his pay. 2 million fake account number could be 75 lower based on their latest internal investigations. The full board is being investigated internally not just executives like him. He has spoken to Warren Buffett once. But as becky quick reports it was not a negative conversation. But the focus overall of yesterday was once again on the tone of the hearing not the content. Lawmakers still angry. The whole board needs to go. If they are going to allow someone to be in charge when time after time you just talked about you fired 5300 employees. When you found out that they were doing something wrong. They were fired. Because they were doing something wrong. Well something is going wrong at this bank. And you are the head of it. So shouldnt the board from your own admission, if the buck stops with you, as you came out here and said i apologize, the buck stops with me and you have to also admit that criminal activity was going on in your bank, then you should be fired because it stops with you. The other big takeaway was the rising pressure for other banks to be dragged into what so far has bean Single Company issue as well as whether the regulator did a good job or not. Shares ended down yesterday 2 , premarket today down half a percent. They have been slammed. They are down more than 11 . But i would note about the bank moves especially wells fargo is this is, first of all, totally different than Deutsche Bank. This is a reputational problem and affecting wells fargo shares. Its not dragging the other banks in. Whats happening with Deutsche Bank is. Its dragging other banks in, morgan stanley. Thats why as far as the overall systemic threat. Wells fargo, clearly wont to be done with its political heat and potentially more investigations from lawmakers and from some of the enforcers like the sec. The share price is spot on. Its important because the underperformance relative to the rest of the u. S. Banking sector came in the first week. Scandal lost about 10 more than the rest of the sector. Been more in tone more with the sector since then. Thats worth noting. Other performance relative to the other banks in the u. S. Came early on. Since then the shares have stabilize. The issue is not put to bed. It will rumble on. The share price has stabilized. Yields have come down. Lots of analysts have come out, some that we really like and trust with buys on the stock even though tissue is not sorted for mr. Stumpf or from a pr position. Buffett issue isnt sorted. Great becky got to talk to him. 10 of the shares he owns. What will he do with that position. Great becky offsetting those inaccurate reports that broke earlier in the day. But he was considering some negative issues. Still to come on the show, well cover the mornings top story. Were talking about Deutsche Bank, shares falling in european trade as fears pull global stocks lower. As we head to break heres where markets stand on the last day of the quarter. The nasdaq the big winner in q3 as you can see up more than 9 . Quite a positive quarter overall. You wouldnt think that on days like yesterday. But markets positive across the board for q3. Were back in a couple of minutes. Cal thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back to Worldwide Exchange. Last day of the quarter, last day of the week and markets are going to the end quarter in positive territory, save for a really big surprise today. Nasdaq supeis up 9 . The adr closed stateside down 6 . Opened down about that much this morning for johnson trade but off the lows as you can see down just 4 as we look at things. The week has been a touch one for deutsche down 8 . Lots more analysis coming from us and the rest of the shows throughout the day on cnbc. Thats weighing on european trade. Given how much the banks are down, commerzbank, credit suisse, also down. Moves on the rest of the market therefore in perspective not too bad. Contagion not as bad as could it be. Were down about 1 . Indexes. They are in europe. When we come back your money your vote. 38 days until the president ial election. We got the latest from the campaign trail next. But before we head to break heres todays National Weather foreca forecast. Its friday and basically things looking the same on this weather map as they did yesterday. Low pressure spinning in the midatlantic and ohio valley trying to bring more rainfall. Some parts of delaware over 12 pinches of rainfall. Interstate 81 and 95 will have trouble if youre traveling today. Over an inch of rain at reagan, bwi, two inches. Back to the west dry weather is settling in. Dont have to worry about Hurricane Matthew until next week. Anybody worrying about the rainfall in south florida thats not associated with that. Cool weather to north. Chicago 64 degrees with a few rain showers. Youve been about five degrees abovenormal. New york, thunderstorms. Welcome back to Worldwide Exchange. Lets get you up to speed on the Market Action. Futures little changed this morning after a pretty steep selloff the dew closed off 200 points. The nasdaq futures are actually in the red. Dow futures up 13. 5 and s p futures are pretty much flat. The story of the mark and of yesterdays trade, Deutsche Bank taking down the entire Global Market with pressure on its shares. As you can see shares are still getting hammered down almost 5 but thats off the lows of the session in germany. The dax is down a little more than 1 . This move is not in addition to what we saw in the afternoon. That was the adr. Now to politics, Hillary Clintons campaign is seizing on a report donald trump may have vip lated laws in the 1990 when he sought to do business in cuba. Executives from trump hotel visited cuba in 1998 to meet with the government sepending 70,000 on the trip. Trumps Campaign ManagerKellyanne Conway is denying that trump broke the law. Happening right now in jerusalem, former israeli president shimon peres success laid to rest. The ceremony success attended by thousands of admirers and dozens of international dignitaries. President obama and former president bill clinton is there. They will eulogize shimon peres. President trudeau is there and president Francois Hollande is there. I like how the New York Times sort of calls it, it was part state funeral, part peace conference. Moment of transition for the country thats drifted away from puerto rico peres vision. But it shows what kind of legacy he left on the state of israel and the world. Amazing lineup and justifiably so. Still to come this mornings top stories, questions about Deutsche Banks future. Well tell you what the firms ceo is saying today to his staff. A deep dive into his letter. First as we head to break lets look at the top dow performers. Stay tuned. Youre watching Worldwide Exchange on cnbc. All the networks are great now. Were talking within a 1 difference in reliability of each other. And, sprint saves you 50 on most Current National carrier rates. Save money on your phone bill, invest it in your small business. Wouldnt you love more customers . I would definitely love some new customers. Sprint will help you add customers and cut your costs. Switch your business to sprint and save 50 on most current verizon, at t and tmobile rates. Dont let a 1 difference cost you twice as much. Whoooo for people with hearing loss, visit sprintrelay. Com. Good morning. Deutsche bank shares dropping the stock continues to slide and the questions about the firms stability. Global investors are on high alert. Financial fears putting pressure on stocks around the world. Its friday, september 30th, 2016 and youre watching Worldwide Exchange on cnbc. Baby we dont need no reason why good morning and welcome back to Worldwide Exchange. Im sara aseisen. Im wilfred frost. Lets check in on