:00:00. > :00:00.Now for the latest financial news, with Sally and World Business
:00:00. > :00:20.A make-or-break week for Deutsche Bank.
:00:21. > :00:22.Its boss, John Cryan, is expected to negotiate deals
:00:23. > :00:25.on job losses in Germany, and a much smaller legal settlement
:00:26. > :00:34.Europe is on the brink of losing key trade agreements,
:00:35. > :00:38.as the UK steers its way out of the Union and the US heads
:00:39. > :00:50.We have a special report from Berlin.
:00:51. > :01:04.Also in the programme, the pound is sinking as the Prime Minister
:01:05. > :01:05.announces the Brexit timetable. It is set to be another pivotal
:01:06. > :01:09.seven days for Deutsche Bank, following a week in which shares
:01:10. > :01:12.in the German lender fell Deutsche is in the process
:01:13. > :01:17.of negotiating a $14 billion fine in the US for miss-selling
:01:18. > :01:20.mortgage-backed bonds in the lead up Over the weekend, German business
:01:21. > :01:24.leaders have come out in support These include the engineering
:01:25. > :01:29.conglomerate Siemens and the parent Last week Deutsche's chief
:01:30. > :01:32.executive, John Cryan, moved to reassure staff
:01:33. > :01:34.about the bank's financial position, stating that the fall in share price
:01:35. > :01:37.was due to "hefty speculation". Following reports that Deutsche
:01:38. > :01:40.could reach a far smaller settlement with US authorities,
:01:41. > :01:42.the company's New York-listed shares It is also reported he is poised
:01:43. > :01:54.to reach a deal with labour unions in Germany this week,
:01:55. > :01:57.paving the way for job cuts With me is Dr Andreas Hoepner,
:01:58. > :02:16.associate professor of finance Good morning. Nice to see you. You
:02:17. > :02:20.know Deutsche well, so tell us more about all this speculation over the
:02:21. > :02:25.weekend. Do you think they will agree to a much smaller settlement
:02:26. > :02:30.in the US? In the first place, the 14 billion is the number far too
:02:31. > :02:33.familiar from the Apple case, so there might be political
:02:34. > :02:37.connotations to that. Then if you look at the equivalent settlements
:02:38. > :02:43.of other banks they were much lower, about 2 billion or 3 billion area.
:02:44. > :02:46.Deutsche had provisions for 5 billion. So it might be slightly
:02:47. > :02:50.above their provisions but it seems very likely they will agree on a
:02:51. > :02:54.lower settlement. Server $5.4 billion figure has been emerging
:02:55. > :02:58.from various reports over the weekend. You think that is probably
:02:59. > :03:03.more than likely to be the outcome, and if so that is something Deutsche
:03:04. > :03:08.Bank can handle? Exactly, 5.4 billion, plus or -1 or two we
:03:09. > :03:13.couldn't say. We are not part of the discussions, but in many ways
:03:14. > :03:16.Deutsche had provisions of 5 billion, that will be a point
:03:17. > :03:20.relevant in the discussions. Other US banks had significantly lower
:03:21. > :03:25.settlements, so it seems likely it is going to come to a reasonable
:03:26. > :03:30.number. The report already on Friday in the FT indicated it is likely to
:03:31. > :03:37.come to a decent settlement, and John Cryan has certainly done a good
:03:38. > :03:43.job. And he is key to all of this, fairly new to Deutsche Bank, it
:03:44. > :03:47.sounds like he is negotiating job cuts, thousands in the future, as
:03:48. > :03:51.well as a settlement on what else is going on in the bank. Deutsche Bank
:03:52. > :03:56.has become an extremely large organisation in recent years, with a
:03:57. > :04:00.lot on its plate, hasn't it? Yes, I think he is very much key. So my
:04:01. > :04:04.understanding, as I have discussed over the weekend with people,
:04:05. > :04:08.including investors in Deutsche, they are pleased with his
:04:09. > :04:14.performance so far. He has taken a clean-up job and he knows it, and
:04:15. > :04:19.the German media does it. He has been cleaning up, he has announced
:04:20. > :04:23.job cuts, working within the IT system, taking a very close look at
:04:24. > :04:27.parts of investment banking that might not work as well as people
:04:28. > :04:32.were presented before. In many ways their current settlement is due to
:04:33. > :04:36.mistakes made in the past under the previous leadership. And so people,
:04:37. > :04:42.I would understand them being critical of his performance to date.
:04:43. > :04:46.He hasn't had too much chance to change things but if you see the
:04:47. > :04:54.Friday news compared with the first news, there is a remarkable success.
:04:55. > :04:59.And when we get any detail about Deutsche Bank and any settlement in
:05:00. > :05:00.the US, we will update you as the week progresses.
:05:01. > :05:03.In other news: The UK Prime Minister, Theresa May,
:05:04. > :05:06.has set a deadline for beginning the formal process of leaving
:05:07. > :05:10.The Government will trigger Article 50 by the end of March of next year.
:05:11. > :05:13.This means that the UK looks set to leave the EU
:05:14. > :05:17.Later today the British Finance Minister will outline his
:05:18. > :05:21.He is expected to take a more flexible stance on public spending
:05:22. > :05:23.compared to his predecessor George Osborne.
:05:24. > :05:26.Sterling has fallen against most major currencies on the news.
:05:27. > :05:36.Our team in Singapore will have more on that in a moment.
:05:37. > :05:39.All this week the BBC is looking at trade and its impact
:05:40. > :05:45.It comes as we enter the latest round of talks between the US
:05:46. > :05:48.and Europe, aimed at pushing through the Transatlantic Trade
:05:49. > :05:51.It is hoped that TTIP will provide a boost to growth,
:05:52. > :05:54.by cutting trade barriers, but there are growing doubts that
:05:55. > :05:57.a deal can be reached before Barack Obama leaves
:05:58. > :06:02.In the first of our special series, we are going to take a look at why
:06:03. > :06:05.many Europeans oppose both TTIP and another trade deal signed
:06:06. > :06:07.between Canada and the EU, called CETA.
:06:08. > :06:18.The BBC's Jenny Hill reports from Berlin.
:06:19. > :06:27.On your's streets, barrier free trade meets a wall of resistance.
:06:28. > :06:33.The voice of protest is perhaps loudest in Germany. It is claimed
:06:34. > :06:40.Ceta and TTIP will generate opportunity, well for Europe.
:06:41. > :06:45.Houston, we have a problem! Here, they say, it is at the expense of
:06:46. > :06:49.democracy. And that is a price which for this trader is simply too high.
:06:50. > :06:53.TRANSLATION: My concern, and it is the same for all of us in business
:06:54. > :06:57.here, is that standards will be lowered. That the quality which we
:06:58. > :07:01.and our customers value will suffer and we will not know what is hidden
:07:02. > :07:07.in our food, and what effect it could have on our health. How Europe
:07:08. > :07:13.chooses to hammer out the deals will now be keenly observed. The EU is
:07:14. > :07:18.reshaping its future after Britain's decision to leave. They are away
:07:19. > :07:23.here of the benefits of a good trade agreement. TRANSLATION: It means no
:07:24. > :07:27.bureaucracy. I can buy and sell without problems, no tariffs. Within
:07:28. > :07:35.Europe we have one currency. It is much easier. At many wonder whether
:07:36. > :07:39.the agreements, especially TTIP, will ever be signed. Voters are very
:07:40. > :07:44.uneasy about a deal with America. The spying scandal and the shadow of
:07:45. > :07:48.the Iraq War still linger here. Even the German economy Minister has
:07:49. > :07:52.described TTIP as dead in the water. Higher than the French government
:07:53. > :07:57.had said the same thing. That is because this is about so much more
:07:58. > :08:03.than just trade. In France and Germany it is a heavily politicised
:08:04. > :08:08.issue, because both countries face general elections next year. And
:08:09. > :08:12.even its supporters acknowledge TTIP is not a vote winner. I was in
:08:13. > :08:16.Brussels two weeks ago when we put it in a deep freezer, get to get
:08:17. > :08:22.about only after the elections in the United States, in France, and in
:08:23. > :08:26.Germany. Next year we will see progress. It is more or less put on
:08:27. > :08:31.hold, but again I think it is the right thing to do to not stop the
:08:32. > :08:34.negotiations. Officially the German government wants Ceta and TTIP,
:08:35. > :08:43.believes the benefit outweighed the risks. But the lack it -- the
:08:44. > :08:45.electorate asks at what cost. Let's get some market reaction
:08:46. > :08:48.to that news that Britain has set a deadline to begin the process
:08:49. > :08:52.of leaving the European Union. Karishma Vaswani joins
:08:53. > :09:03.us from Singapore. Nice to see you. So what Theresa May
:09:04. > :09:07.had to say has been moving currencies. Yes, and the British
:09:08. > :09:10.pound fell in trading this morning after those comments from the
:09:11. > :09:14.British Prime Minister. Investors looking at that key date in terms of
:09:15. > :09:19.the process of separation from the EU by the end of March next year.
:09:20. > :09:23.But the falls in the pound, it must be said, were not as dramatic as
:09:24. > :09:27.what we saw back in June when the vote to leave the EU actually
:09:28. > :09:30.happened. Today in Asian trading the pound fell between 0.3% and 0.5%,
:09:31. > :09:35.but if pound fell between 0.3% and 0.5%,
:09:36. > :09:40.but if you look at the fact that the Sterling has seen much worse falls
:09:41. > :09:44.on this, it is not much to take heart from because all of this just
:09:45. > :09:46.shows a lack of confidence here in Asia about how the UK is going to
:09:47. > :09:55.navigate confidence is whether companies
:09:56. > :10:02.based in the UK, many of them Asian companies, will be able to access
:10:03. > :10:06.Europe's free trade zone. Thank you for joining us from Singapore. As
:10:07. > :10:12.you saw, markets in Asia all trading higher this Monday. Good news out of
:10:13. > :10:16.Japan about confidence and also China's Manufacturing expanding in
:10:17. > :10:21.September, helping sentiment to a degree. We will look through the
:10:22. > :10:26.papers in a few minutes. I will see you soon. Good life. -- goodbye.
:10:27. > :10:29.The Chancellor, Philip Hammond, will make clear today