03/10/2016 World Business Report

Now for the latest financial news, with Sally and World Business

A make-or-break week for Deutsche Bank.

Its boss, John Cryan, is expected to negotiate deals

on job losses in Germany, and a much smaller legal settlement

Europe is on the brink of losing key trade agreements,

as the UK steers its way out of the Union and the US heads

We have a special report from Berlin.

Also in the programme, the pound is sinking as the Prime Minister

announces the Brexit timetable. It is set to be another pivotal

seven days for Deutsche Bank, following a week in which shares

in the German lender fell Deutsche is in the process

of negotiating a $14 billion fine in the US for miss-selling

mortgage-backed bonds in the lead up Over the weekend, German business

leaders have come out in support These include the engineering

conglomerate Siemens and the parent Last week Deutsche's chief

executive, John Cryan, moved to reassure staff

about the bank's financial position, stating that the fall in share price

was due to "hefty speculation". Following reports that Deutsche

could reach a far smaller settlement with US authorities,

the company's New York-listed shares It is also reported he is poised

to reach a deal with labour unions in Germany this week,

paving the way for job cuts With me is Dr Andreas Hoepner,

associate professor of finance Good morning. Nice to see you. You

know Deutsche well, so tell us more about all this speculation over the

weekend. Do you think they will agree to a much smaller settlement

in the US? In the first place, the 14 billion is the number far too

familiar from the Apple case, so there might be political

connotations to that. Then if you look at the equivalent settlements

of other banks they were much lower, about 2 billion or 3 billion area.

Deutsche had provisions for 5 billion. So it might be slightly

above their provisions but it seems very likely they will agree on a

lower settlement. Server $5.4 billion figure has been emerging

from various reports over the weekend. You think that is probably

more than likely to be the outcome, and if so that is something Deutsche

Bank can handle? Exactly, 5.4 billion, plus or -1 or two we

couldn't say. We are not part of the discussions, but in many ways

Deutsche had provisions of 5 billion, that will be a point

relevant in the discussions. Other US banks had significantly lower

settlements, so it seems likely it is going to come to a reasonable

number. The report already on Friday in the FT indicated it is likely to

come to a decent settlement, and John Cryan has certainly done a good

job. And he is key to all of this, fairly new to Deutsche Bank, it

sounds like he is negotiating job cuts, thousands in the future, as

well as a settlement on what else is going on in the bank. Deutsche Bank

has become an extremely large organisation in recent years, with a

lot on its plate, hasn't it? Yes, I think he is very much key. So my

understanding, as I have discussed over the weekend with people,

including investors in Deutsche, they are pleased with his

performance so far. He has taken a clean-up job and he knows it, and

the German media does it. He has been cleaning up, he has announced

job cuts, working within the IT system, taking a very close look at

parts of investment banking that might not work as well as people

were presented before. In many ways their current settlement is due to

mistakes made in the past under the previous leadership. And so people,

I would understand them being critical of his performance to date.

He hasn't had too much chance to change things but if you see the

Friday news compared with the first news, there is a remarkable success.

And when we get any detail about Deutsche Bank and any settlement in

the US, we will update you as the week progresses.

In other news: The UK Prime Minister, Theresa May,

has set a deadline for beginning the formal process of leaving

The Government will trigger Article 50 by the end of March of next year.

This means that the UK looks set to leave the EU

Later today the British Finance Minister will outline his

He is expected to take a more flexible stance on public spending

compared to his predecessor George Osborne.

Sterling has fallen against most major currencies on the news.

Our team in Singapore will have more on that in a moment.

All this week the BBC is looking at trade and its impact

It comes as we enter the latest round of talks between the US

and Europe, aimed at pushing through the Transatlantic Trade

It is hoped that TTIP will provide a boost to growth,

by cutting trade barriers, but there are growing doubts that

a deal can be reached before Barack Obama leaves

In the first of our special series, we are going to take a look at why

many Europeans oppose both TTIP and another trade deal signed

between Canada and the EU, called CETA.

The BBC's Jenny Hill reports from Berlin.

On your's streets, barrier free trade meets a wall of resistance.

The voice of protest is perhaps loudest in Germany. It is claimed

Ceta and TTIP will generate opportunity, well for Europe.

Houston, we have a problem! Here, they say, it is at the expense of

democracy. And that is a price which for this trader is simply too high.

TRANSLATION: My concern, and it is the same for all of us in business

here, is that standards will be lowered. That the quality which we

and our customers value will suffer and we will not know what is hidden

in our food, and what effect it could have on our health. How Europe

chooses to hammer out the deals will now be keenly observed. The EU is

reshaping its future after Britain's decision to leave. They are away

here of the benefits of a good trade agreement. TRANSLATION: It means no

bureaucracy. I can buy and sell without problems, no tariffs. Within

Europe we have one currency. It is much easier. At many wonder whether

the agreements, especially TTIP, will ever be signed. Voters are very

uneasy about a deal with America. The spying scandal and the shadow of

the Iraq War still linger here. Even the German economy Minister has

described TTIP as dead in the water. Higher than the French government

had said the same thing. That is because this is about so much more

than just trade. In France and Germany it is a heavily politicised

issue, because both countries face general elections next year. And

even its supporters acknowledge TTIP is not a vote winner. I was in

Brussels two weeks ago when we put it in a deep freezer, get to get

about only after the elections in the United States, in France, and in

Germany. Next year we will see progress. It is more or less put on

hold, but again I think it is the right thing to do to not stop the

negotiations. Officially the German government wants Ceta and TTIP,

believes the benefit outweighed the risks. But the lack it -- the

electorate asks at what cost. Let's get some market reaction

to that news that Britain has set a deadline to begin the process

of leaving the European Union. Karishma Vaswani joins

us from Singapore. Nice to see you. So what Theresa May

had to say has been moving currencies. Yes, and the British

pound fell in trading this morning after those comments from the

British Prime Minister. Investors looking at that key date in terms of

the process of separation from the EU by the end of March next year.

But the falls in the pound, it must be said, were not as dramatic as

what we saw back in June when the vote to leave the EU actually

happened. Today in Asian trading the pound fell between 0.3% and 0.5%,

but if pound fell between 0.3% and 0.5%,

but if you look at the fact that the Sterling has seen much worse falls

on this, it is not much to take heart from because all of this just

shows a lack of confidence here in Asia about how the UK is going to

navigate confidence is whether companies

based in the UK, many of them Asian companies, will be able to access

Europe's free trade zone. Thank you for joining us from Singapore. As

you saw, markets in Asia all trading higher this Monday. Good news out of

Japan about confidence and also China's Manufacturing expanding in

September, helping sentiment to a degree. We will look through the

papers in a few minutes. I will see you soon. Good life. -- goodbye.

The Chancellor, Philip Hammond, will make clear today