Saying low rates are to blame. Basic change are the Interest Rate environment as well as the general macroenvironment we have seen pressure on margin rates and customer activity. Thats why we are not going to see higher revenue and a whistleblower report alleged President Trump abused his power on a phone call with a foreign leader and then the white house then tried to cover it up. Good morning, commerzbank has formally approved the latest overall. My colleague is with us live from frankfurt what did the angels have to say . I had to ask him why now because clearly the Interest Rate part was pretty much clear already when they had their last quartly earnings in august it took them some time to realize what it is going to mean also for their revenue out look. The bottom line is because of the Interest Rates and easing cycle and also the out look in the economy and revenue guidance this year was too optimistic i had to ask him why now and whats the biggest drag. Take a listen to what he had to say. Basic change was the Interest Rate environment as well as the general macroenvironment yes. Ecb rate cut has been recently affected but i think the market has been dealing with that probably already at the end of q 2 and through all of q 3 we have seen pressure on margins, rates and customer activity that is why we are probably not seeing higher revenue on the full year than we have to be fair, it was clear since june that the ecb might cut again and might have quantitative easing. Why couldnt you adjust the out look in august that is the deep aid of why you want to keep the system running at full speed. At a certain time, you need to find out how much you you are willing to risk to fight for one person goal just to get the goal whether it still makes sense or not. Some of the risk return we see are not the profiles we think we should take on board lets talk restructuring. Once again, it is a board restructuring and a lot of cuts. The question is whether the job cuts announced include m bank or excludeing the m bank or just the core bank that is affected the program is about selfhelp, selffinance. In that sense, the numbers we give are from the call as you called it. Yes, we have roughly 29,000 ftes at the end of the program. 6,600 will leave when we start m bank but well also add 2,000 roughly new skill sets if you look in the future, we know you are leaving the bank. If you were to stay, like in five years, where is commerzbank positioned i think the 5. 0 program does two things the second part, it is completely selfhelp, which means we restructure the bank. The third part, we have a soberingly realistic view on the Interest Rate environment. Getting to a 4 , 5 equity is something that pays for your growth and dividend and also has valuable sense for the stock it doesnt raise capital, that is true and you need to take a view of what is possible in the negative Interest Rate going up in capitals and everything else. It is probably even more than you would expect if you would take the soberingly realistic view on Interest Rates if you look at what they are doing, if you were a cynic, it looks like they are looking to make it more beautiful or attractive already at the same time, they are taking someone on board from ing to enhance their efforts perhaps that is also a good sign again, if you look at the bank itself, the 4 return, that would be it. That would be admitting in another part of the interview as well that does not earn them capital cost if not on a stand alone basis. On the other side, that is speaking against that argument are the cross border mergers in europe are quite difficult and expensive because of the not perfect banking union. I guess the stories will stay interesting. Especially from an m a point of view back to you. Thank you lets look at how the markets are fairing. All are in the green at this stage. It is the ftse mib ive been watching it was negative until a moment ago. That seems to be because the italian manufacturing numbers have come out. Confidence falling to 98. 8 the overall businessconfidence falling to 98. 5 this month all numbers below consensus. Traders there in milan not quite as confident in line with italian consumers. Lets talk about sterling. Saying a rate cut is, quote, quite plausible even if the uk avoids a brexit. His comments sending yields lower. You can see the ftse is quite low too. Joumanna is here to tell us more about this a real dovish development we are seeing Market Reaction on the front end because the market has directly shifted to pricing and the possibility of a rate cut. We have about a 50 chance of a cut for february next year i want to bring you the main comments that came out first hes saying, look, Brexit Uncertainties are akin to a slow economy, causing growth to a crawl. He says the uk has weakened. Ill come back to that he adds prolonged high brexit uncertainty could cause a shift. So far, the messaging has been once brexit is sorted out, that could lead to limited rate heights. Now we are saying we look like we are in a position where brexit uncertainty does exist. Add that externalities are there as well. They may have to change their tone to alluding to the fact that there is a little Spare Capacity they may have to lean towards rate cuts. This is the first time theyve come out with the language alluding to the rate cuts. He was asked by a member of the audience today about the cost of reversing the out look if all of a sudden the out look brightens. If the deal is signed and things are great, will it be difficult to reverse course . He said no because it would be easy for us to reverse course this way than to say preemptively it looks as though they are watching the economy closely and are worried about the brexit situation. Thats not good for the uk economy either thank you for breaking that down so clearly. Coming up after the break, well return to kiev where we have more reporter a part of that notes on the transcript that mr. Zelensky agreed with mr. Trump what are the ramifications of that well discuss on street signs. These folks, they dont have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again welcome back to street signs. New details have emerged about the phone call between President Trump and president zelensky officials have tried to, quote, lockdown all records of the conversation and that included the verbatim transcript. President trump has repeatedly denied any wrongdoing and continues to criticize the move from democrats my call was perfect the president yesterday of ukraine said there was no pressure put on him whatsoever he said it loud and clear for the press. What these guys are doing, democrats are doing to this country is a disgrace. It shouldnt be allowed. There should be a way to lock it they are going to tie up our country. Meanwhile, the chairman, adam schiff responded there is a whole host of people apparently have knowledge of these events that the Whistleblower Makes reference to we dont know how many or any have been interviewed. Well have a subsequent hearing so we can determine what he was able to find my colleague Steve Sedgwick is live in the ukraine this morning. They might be a little blaze about all of this. But this incident has had impact presumably beyond the ukraine and u. S. You make a good point ukrainians, blaze to the government post soviet there have been enormous questions about corruption and the willingness to reform the office that was a key part of the accusations and concerned that resulted from the giuliani trip to find out if the bidens had put pressure at the moment, as you say, giving zelensky the benefit of the doubt. There are questions of the influence of the oligarks relationship over him. One point we havent investigated fully was about mr. Trump making comments about germany saying germany does almost nothing for you he said absolutely 1,000 right. Does the evidence bare that out . Looking at the report, that points alone that 926 million plus there has been loan guarantees from european banks over 16 billion and europe, the eu has a free trade deal something that the u. S. Doesnt have the the germans would briden accusations that they havent supported ukraine. Bringing in my visit to the g7, it was President Trump that sided to get russia back to the table. It was the europeans that said no, because of the russian interference in this country and the annexation of crimea, they didnt want them back in it could be thrown across the atlantic in both directions. It is understood that Vladimir Zelensky was upset for the relationship between former president and merkel as well he wasnt invited to talk with them as well this could be seen on many levels they could be upset about anything they are not doing for this country it is a step backwards it will be slightly difficult to take in the short term, back to you. Thank you for breaking that down im joined now by the assistant professor of Global Politics at the college of london. Clearly the democrats in the house that supports impeachment has been rising at a clip. What does it take for 20 republican senators to decide they are going to switch sides and vote to convict the leader of their own party this is now a foregone conclusion that the house will vote to impeach donald trump hell be the third sitting president voted on to be impeached. The republicans have 53. You need some republicans to break with their own party leader the only way they will do that is if they believe more damming details will come out that will damage trump so much up and down for the ticket if they believe he will lose in 2020 and drag down the prospect of their house and senate races, there is a possibility theyll turn on one of their own you are starting to see gaps forming. Mitt romney has spoken out against trump. There was a republican yesterday who said trump, this is not okay he spoke directly to the president and said the phone call was not okay. If more information comes out, they could be in position of calculations to turn on their own party leader this is not something that the speaker of the house nancy pelosi moved in to quickly for many, many months even talking about it and many members were keen for her to pursue it. Are there concerns by democrats that this could backfire as they are seen as supporters of trump when they could get on with trying to pass legislation i think the risks are much greater and how rapidly Public Relations have been changing weve seen support and surprisingly large numbers between 10 and 30 that should be very worrying for mr. Trump. You point to a good point here, there have been several allegations that are, quote, impeachable allegations previously it appears she hasbeen forced into this. The question now, will the inquiry be just about the ukraine phone call or will they also bring up the 10 alleged obstruction of Justice Charges outlined by Robert Mueller or the alleged felony trump committed with Stormy Daniels that his own personal lawyer is kurchtly serving prison time for or other allegations about tax evasion . There are so many ways the democrats can wrap this up with multiple charges to make it harder for them to go by saying all of this is fake news all of those things with the whistleblower complaint where trumps own worker said it is my duty to bring it to the committee. There is a possibility down the road where republican senators decide they should move to convict thats one thing if that doesnt happen, based on your experience of previous attempts, most specifically, bill clinton what does it do to the u. S. . Bipartisan u. S. . The daytoday things in washington, d. C. This is going to tie up news and congress for months. For clinton, it was around 120 days this could go longer than that congress was already in gridlock this, i do not think will change the way congress functions it means legislation will take a serious back burner to the impeachment inquiry. Any major legislation is not likely to pass before legislation. It does hurt Donald Trumps reelection chances the base are not going to turn on him the 30 to 35 of people who love him will still love him. Maybe even in larger numbers the real thing is how independents vote and the idea that people will hold democrats will hold someone allegedly responsible for criminal behavior, people are starting to realize this is not an isolated incident but there are things not made up. There is real stuff. They see in the phone call in the alleged quid pro quo, the Immediate Response he had when he was asked by zelensky for military aid, immediately he said, we need you to do us a favor and he went on to talk about investigating his political opponent you talk about the fact that you didnt expect congress to pass im talking about u. S. china trade deals. If congress is tied up by this, the white house is tied up as well absolutely. His tweets are going to be consumed by this it is a grave threat to his presidency when he has been cornered is when he has lashed out in the past i predict the next 14 months will be crazy in american politics thank you, hes an assistant professor of politics. Huaweis ceo hopes to strengthen ties with google. Here in our exclusive interview after this break gives me confide about Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Welcome back to street signs. Cnbc learns u. S. china trade talks are set to resume on october 10 sterling slide sending the ftse 100 to the lowest since august the bank signals it could make a new move a whistleblower report alleged President Trump abused his power with a phone call with ukraine leader and that white house then tried to cover it up huawei leader says the tech giant hopes to keep doing business with bulg but is biding its time with the u. S. Black list translator the only problem is if the u. S. Government would approve it that will defend on what happens on november 19 welcome back lets take a look at how the currency markets are looking doesnt look like a strong day for the pound at all the dollar is now down 1. 229 that seems to be on the back of the comments talking about the fact that even if there is an avoidance. There could be Major Economic weakness here that could be difficult to address you can see the dollar there is stronger against the japanese yen lets check in to how the european markets are doing you can see all four are doing well we saw a bit of a dip into the italian market at 9 00 when some of the numbers came out, we saw that Consumer Confidence came in below consensus. That was the lowest it had been since february this year lets check out of the u. S. Futures. All three of those higher. Being called more than 80 points higher before the market opened there. Huaweis flagship mate 30 smartphone launched yesterday without google apps. We have talked before about the challenges that might stem from the lack of Google Services when it tries to sell these handsets around the world are there aspects that might make the handset attractive despite that i had the chance to get my hands on the mate 30 pro and mate 30, some of the things are right up there it has the latest Camera Technology it was very impressive youve got features where you can control the phone without touching it, just by hand gestures earlier today, this store was packed out buying the mate 30 pro. That is specifically for china the big issue now is huawei sitting on this u. S. Black list, the fact that it cannot get ahold of the android operating system you are likely to see success in china but struggles in the international markets. Anybody who buys this wouldnt get the phone installed with google apps that they are used to it has released its own operating system called harmony os it stated it doesnt intend to do so so far given that context, our colleague has the chance to step up and asked about the plans and whether they are considering putting this in. Translator we wont replace android. We support the development of android. Google is a very good company. We want to enhance cooperation with them. If we get to enhance the system, we want to enhance that. Does the os have the potential to replace Android Google should you choose to develop further as an operating system translator first of all, we want to cooperate more with Google Google wants it to the only problem is if the u. S. Government approves it that will depend on what happens on november 19 we hope the u. S. Will approve so we can continue the friendly relationship with google we are definitely capable of chiefing what we want to do. For now, youve gone ahead anyway and launched the latest handset mate 30, even though you dont have the full suite. Why do it amid all this uncertainty . Translator the mate 30 has many functions that would attract customers. Whether people would buy our product without google, i needed to assess. They expect to sell around 20 million. If people can accept us without the Android System out of curiosity, did you bother to test the operating system on mate 30 . Translator not for now it is understandable why they would want to keep that relationship and still maintain with google you need to get thousands of developers on board. That is the eco system of the two players. It is a big issue on huawei as it looks at the markets. You can expect them to strengthen and double down if you look at their performance, you did see the growth their growth hit a record in q 2 it is not all bad news but this issue with the u. S. Black list is stale a black cloud back to you. I appreciate that thank you for the analysis of that new handset catch more of christine tans exclusive interview with huawei ceo on managing asia can you see that at your screen. Cnbc sources have heard that u. S. china trade talks will resume on october 10 saying he hoped both sides could take, quote, enthusiastic measures to promote good will. After an up tick in july earnings, china fell 2 in august some hardest hit sectors have included fuel processing and paper manufacturers. In other related news, u. S. And japan in a partial deal on trade products the u. S. Will not impose additional tariffs on japanese autos at least for now well go live for more details reporter for now is the key word here for President Trumps top Economic Advisor saying so long as the good will progress continues, autotariffs are off the table. Trump and abe signed a trade deal that cuts tariffs on japanese goods and further staving off the threat on trurs, President Trump boasted it was a huge victory for u. S. Farmers they have been reeling under the trade war with china especially after they stopped purchasing of farm goods in august propelling trump to reach a partial trade agreement since six full months. The key to the deal was japan agreeing to gradually lower the levee on japan beef. Avoiding liberalizing farm goods further than it did under the Transpacific Partnership the deal gave trump the agriculture he sought holding off on auto deals the japanese dreaded. They called it a win win with many differences involved with trump signaling for further talks. Saying trade negotiations could enter a second round as early as next spring. U. S. Has taken aim at the sector and opening up of japans financial and communication industry thats all from the nikkei back to you. Thank you lets stick with the trade talk. U. S. Chip maker micron warns as it has seen a rise from chinese customers. You can see the swiss firm is in rough territory. All well into the red. Joining me to explain what is going on what caused micron to talk about this weakness . It was all about the guidance for the following quarter. Economic and trade out look is weighing on Profit Guidance going forward. One thing that came up is the impact of this u. S. Black list on huawei which choirs u. S. Companies to get special licenses to continue selling to huawei this is important because huawei relies on a lot of u. S. Companies. Micron is a chip company they do business together. Losing a big customer like huawei impacts these businesses. The overall micron uncertainty as you can see having a bit of an impact on the european chip makers muted sentiment it has been a theme weve seen the Semiconductor Industry is continuously volatile when it comes to impact from trade any tensions we are seeing in the trade picture are going to have an impact on this sector. Thank you do stay with us. European tech reporter here. If you have any views about what is going on in u. S. china trade war. Get in touch or treat me directly well meet exclusively with the leader of google cloud and talk about why he says the trade war has not impacted his company you can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. I had a few good tricks to help hide my bladder leak pad. Like the old tunic tug. But always discreet is less bulky. And it really protects. cause it turns liquid to gel. So i have nothing to hide. Always discreet. danny after a long day of hard work. You have to do more work . vo automatically sort your expenses and save over 40 hours a month. danny every day youre nearly fried to a crisp, professionally vo you earned it, were here to make sure you get it. Quickbooks. Backing you. Its how we care for our patients like job. His team at ctca treated his cancer and side effects. So job can stay strong for his family. Cancer Treatment Centers of america. Appointments available now. If you rugby fans are watching the world cup, ireland will take on japan and south africa taking on namibia on sunday then taking on wales the ceo of google cloud says the business is enjoying, quote, Enormous Growth around the world. Said the trade war is not impacting them what did he say is the reason for their resilience in spite of all this trade tension we have seen google tied up in the broader trade war we talked about the huawei phone and how it doesnt have access to google apps the google Cloud Business is more isolated. In part because it relies on sales force and techrelated clients. He said they are having enormous Global Growth particularly in europe i asked him about why that is. We have a very strong presence in europe the recent announcement was made largely driven by their customers. We have a lot of presence in the uk, western europe and other parts of the continent it is a big area focus for us. We are growing faster in terms of people, customers revenue faster here than any other part of the world faster than any other area . That is correct any numbers to disclose for that we dont disclose the numbers. We are scaling it super fast in response to customer demand. Why do you this i that is in europe people in europe are really beginning to adopt cloud at some point, there was reluctance there is Enormous Consumer demand they want new experiences and banking more convenient. Many say to deliver those experiences, i need a new technology platform. They use cloud as a way to deliver those. We see it moving quickly because the Central Banks have gotten to a point of comfort that cloud can be an enabler rather than a source of risk so talking to me a lot saying customers are really embracing the cloud when it comes to banking. Central banks are accepting that they need to be on the cloud announcing a 3. 3 billion investment in data center in europe next year we are hearing a lot of growth may be a little catching up to do but a bright picture for the company happening now as it trying to catch up with the biggest competitors which are amazon and microsoft dominating this space given tech, what did it say about it without being imposed i cant have a conversation with any of these tech ceos without talking regulation he said they are aware of it doing business with enterprise clients and consumers but he said it hasnt affected their business as far as the cloud the Cloud Business is certainly separate from where a lot of that antitrust scrutiny is coming from google and that is searching ads. He made a point to say we are doing our own thing and continuing to grow we dont have dominant position and well continue to operate as planned and be aware of regulation but not let it get ahead of us much new details have emerged about the phone call between President Trump and zelensky the released whistleblower complaint claims the white house tried to, quote, lockdown all records including the verbatim transcript how did members respond to the appearance and release of the whistleblowers actual complaint . I guess the initial indication is that democrats believe it moved the needle. Both the complaint and the acting testimony from the representative saying he now supports the impeachment inquiry that brings the number to 225 of the latest tally which means that is well past the number needed for some action against the president. Democrats feel like the temperature helped their cause it is the main text that they feel is the strongest ally in trying to impeach the president. It makes serious allegations laid out clearly with some would consider very compelling evidence how is the president responding when he is asked about it hes really lashing out very angry had a News Conference when he landed back in washington. Hes attacking journalists and democrats and the whistleblower, even alluding at one point to treason and how we used to treat spies in this country. The word is that he is shell shocked by these allegations thank you very Early Morning start for him. We appreciate. Switching again, a statesman we loved as much as he loved us those words coming from the french president tributing one of his predecessors chirac who died at the age of 86. He has been at the heart of french politics for 40 years three times mayor of paris, five times leader of cabinet and Prime Minister he was president of france for 12 years the center right politician was elected in 1995 following two failed attempts. Taking over from his lifetime opponent the beginning of his presidency was marked by huge protest came embody the leadership style, he started Nuclear Tests in the Pacific Ocean and opposed invasion of iraq in 2003 the lack of participation in that war is perhaps the most meaningful chapter of his time in office. This was not his only legacy chirac was an early advocate of fighting climate change. Saying, quote, our house is burning and we are looking in the other direction. He was the first head of state to recognize the role in the holocaust and to apologize to the jewish people. He was reelected the staunch eu supporter, he suffered a set back when he was defeated on the eu constitution. He stepped away from public life after his departure in 2007. Later had to face a conviction for misuse of public funds he is known for love of japanese culture, a passion for mexican beer and good food that was my colleague looking at the life of former french president who has died at the age of 86. We see sterling has dropped below 1. 23 against the u. S. Dollar they say a rate cut is, quote, quite plausible even if the uk avoids brexit. His comments have also sent guilt yields lower numbers we have not seen since august of this year. Also checking in on u. S. Futures before we go all three indices are being called higher. Almost nine points higher at this stage nasdaq being called 12 points higher will be a bit of a quiet weekend. Thank you for watching im willem marx in london. Worldwide exchange will be coming up. These folks, they dont have time to go to the post office they have businesses to grow customers to care for lives to get home to they use stamps. Com print discounted postage for any letter any package any time right from your computer all the Amazing Services of the post office only cheaper get our special tv offer a 4week trial plus postage and a digital scale go to stamps. Com tv and never go to the post office again it is 5 00 a. M. Here at cnbc global headquarters. Casting a shadow from the west wing to wall street. Peloton becomes the latest unicorn to fall short as another pulls the plug facebook preparing to send sand burg back to capitol hill. And shares of one tech company