♪ >> good afternoon. you are watching bloomberg television. u.s. markets are closed for presidents' day, but let's take a look at how european markets are doing right now. if we look across the board you can see it is green pretty much across the board. up 2.2%.100 the index in germany of 3%. very much risk on here in europe. looking at the stoxx 600, it is heading for its biggest two day gain in 2011. we are of over 3% at the moment.

although banks have some of the best performance today -- that some of the worst performers, they have some of today.t perf performance a lot of analysts saying this as investors are expecting more stimulus from the european central bank. speaking of the ecb, mary drug use due to start speaking any minute in brussels before lawmakers at the european parliament. we have been seeing a weaker euro ahead of that doesn't 7/10 of a percent against the dollar here. one of the challenges has been a stronger euro because that is the second-best performer this , withgainst the dollar the japanese yen of 3% against the dollar.

his mario draghi going to be able to push this trade with just his words today? also, the euro has been weakening against the highland -- against the town, down 5/10 of a percent. euro sterling, six months implied volatility, that is near and highest level since 2011. this is a just about mario draghi, it is also because of the concern about grexit. up topation building the meeting. but we are looking at mario draghi, and what he will be saying. that is your bloomberg market day. do not miss the birds live analysis of mario draghi's remarks. you just saw them come into that room. keep an eye on bloomberg tv. ♪

♪ >> he got his start in west philadelphia working for the fresh prince himself. troy carter helped take gaga from unknown to platinum. his own path to hollywood was unexpected, coming from a tough

neighborhood, with a father who did time for murder. proof, he says, that you write your own future. joining me, founder and ceo of atom factory, troy carter. >> thank you for having me. emily: you grew up in west philadelphia, just like the fresh prince. troy: west philadelphia, born and raised. [laughter] emily: how did you get started in tech investing? troy: it kind of fell into my lap. working with lady gaga, it was difficult to get to music played on the radio, so we use a lot of see she -- social media tools. facebook was coming out of .edu, twitter was on the rise. we were using these social media platforms to reach fans directly.

a lot of the technology companies started approaching us. now, i am a venture capitalist. emily: you started using facebook and twitter before anyone really did. troy: we use it out of desperation more than anything else. we were at a stage where these distribution systems and gatekeepers were all of a sudden a little less powerful because of this technology where you could speak directly to fans.

the first time we heard lady gaga's music before she got signed was on myspace. she was the first mainstream artist to really break out on these platforms. emily: you are an investor in companies like uber, dropbox, lyft, spotify. these are deals that traditional silicon valley venture capitalists would kill to get into. how do you get in? troy: i think it helps that i am an entrepreneur. i can relate to founders on a the ground-level. emily: give me an example of what your secret weapon is as a tech investor. troy: the willingness to drive a mack truck through a cul-de-sac, when i believe in something. and also, i think, empathy. so i know what keeps founders up at night. the anxiety of competition, and what's next. i can relate to it. emily: let's take uber, for example. how did you get into uber? tell me the story. troy: i met an entrepreneur by the name of shervin pishevar. and he said, you know what, i'm thinking about going into venture capital. the first deal shervin called me about was uber. at that time, they were only in san francisco.

the first conversation i had with travis, was about -- you know, i'm thinking, the capital expenses around this business of buying, you know, hundreds of thousands of black cars. this could never be successful. and, automatically, travis said, we are a logistics platform. we are not buying cars. he explained it. my worry was about, how do you scale this company? emily: so travis was convincing you? you were not convincing travis to let you in? troy: yes, he basically sold me on the vision. at that stage, you are interviewing each other. we had a pretty significant network. we helped pull jay-z and the roc nation team into uber. it was about us being able to activate our network as well. emily: you are also an investor in lyft. troy: yes. emily: uber and lyft are like sworn enemies. how does that work? troy: we actually invested in a company called zimride, where john and the zimride team were basically providing carpooling from dormitories at school to campuses. six months later, we invested in uber. that was just a black car service. they were completely

noncompetitive. and then uber launched uber-x, and then they wanted to kill each other. [laughter] emily: so what is that like, having bets on two opponents? troy: you know, i think some people have the opinion that it is going to be winner-takes-all. as we look at this complicated transportation ecosystem, i feel like there is going to be enough room for both. it will be a winner-take-most, but i don't think it will be winner-take-all. emily: what is your philosophy at atom factory? what kind of companies and technologies are you most interested in? troy: we are kind of focused on huge shifts in consumer behavior, and large demographic shifts. when you look at spotify and songza, that we invested in, and are kind of looking at, the shift from downloads to streams. emily: what do you see as the main differences between silicon valley and l.a.? troy: the difference is, up

north, you have a very mature system here. you know, you are on fourth and fifth generation tech companies. in l.a., the lineage is more around media, and more around storytelling and narrative, and so the tech ecosystem is still very, very young. but when you look at companies like beats by dre, maker, snapchat, you are starting to see these multibillion-dollar companies pop up. emily: snapchat, for example, you mentioned -- $19 billion. are they worth that? troy: i think so. i think they will be worth more, actually. when you see the amount of videos viewed per day and the type of engagement around the product. emily: what do you think about the fears that we are in a bubble, that valuations are too high? testimony ofto the mario draghi.

ofwe have seen the minutes the previous three meetings, thank you. first, i like to greet my predecessor. welcome. and that when i would like to welcome the ecb president, mario draghi, for the first monetary dialogue of 2016. president drug he will present the monetary developments and also the implications of divergent monetary policy states. it is not necessary to explain the reasons why there is a high level interest for president's intervention today. thee all know, in light of

downside risk and weaker than expected inflation dynamics of each meeting the council has unanimous the agreed to review and possibly reconsider the ecb monetary policy stance in march. his introductory statement the plenary debate, he has reiterated this commitment. moreover, in the last weeks, the stock markets have continued with negative performance a particularly strong fall, combined with high volatility of the bankshares. this is not only linked to the environment, but also to the rigidity of the banking union and of the regulatory framework. this reason we went extremely interested in hearing president rouhani you, --

president draghi's you of the qe review outcome in march, namely coalition. state of the banking you did, and its completion in the broader framework. president draghi, the floor is yours. >> thank you. honorable members of the economic and monetary affairs committee, ladies and gentlemen, the first weeks of area atr have shown the large facing significant challenges. allrong effort by policymakers will be needed in the months ahead to overcome them. i'm therefore grateful to get back in front of your committee to discuss the challenges and

how the ecb can contribute to tackling them. my remarks today will address and turned the global economic context, recent financial developments, and the state of area recovery. i will conclude by briefly presenting our most recent decision to disclose the ,greement of financial assets and as i note this topic is of concern to some of you. let me start with the state of the global economy. weeks, we have witnessed increasing concerns about the prospects for the global economy. has weaker than expected. german bunds and financial markets has intensified, and commodity prices have declined further. slowing growth in emerging

markets economy is a focal point for this uncertainty. an early years of this century, many emerging economies expanded at a rapid pace. benefited from increasing integration with the global economy, and boyette financial markets. as these factors diminish, many countries have to adjust to a renewed reality. in several economies, the slowdown has revealed and exacerbated structural problem, which are increasingly restraining growth. a continuation of the rebalancing process is needed to secure sustainable growth over the medium term. this would imply some headwinds in the short-term, which will require close monitoring of the related risk. one consequence of this adjustment is the divergence of

economic cycles. -- while theery recovery is gradually proceeding, the growth momentum has weekend. has alsoobal demand contributed to the recent fall in the price of oil and other commodities for which in turn may have aggravated fiscal and financial fragility and commodity producing exporting economies. countries that have suffered worsening trade have seen a sharp decline in activity, while investment in their energy sectors have contracted. december, a general deterioration in market sentiment has taken root, and has gathered pace over the last week. this initially appeared closely linked to concerns regarding

weakening economic activity around the globe, notably in emerging markets. potential adverse signals from falling commodity prices. however, market sentiment has become more volatile, and susceptible to rapid change. in this environment, stock prices significantly declined and bank equity prices were particularly hit, both globally and in europe. the sharp fall in bank equity prices reflected the sector's highest sensitivity to a weaker than expected economic outlook. fears thatlected some parts of the banking sector were exposed to the hiding your risks and commodity producing sectors. of euro area banks, although they have relatively

limited exposure to emerging markets and commodity producing countries are currently trading well below their book values. pricesl in bank equity was amplified by my perceptions that banks may have to do more to adjust their business models to the lower growth, lower interest rate environment, and to the strengthened international regulatory framework that has been put in place since the crisis. acknowledgehave to that the regulatory rules have led the foundation for durable increase and resilience. not only at institutions, but also the financial system as a whole. banks have built higher and better quality capital buffers, have reduced leverage, and

improved their provision. moreover, the banking supervision noted that substantial progress has been made towards finalizing post crisis reforms. that the remaining elements of the regulatory reform agenda for global banks are being finalized. the clarification of these elements will provide regulatory certainty on the stability of the future framework. this will support the banking sector's ability to make long-term sustainable business plans into the future. governorsentral bank have the supervision and have indicated that they are committed to not significantly increase overall capital

requirements across the banking sector. in the euro area, the situation in the banking sector now is very different from what it was in 2012. perhaps, most importantly, euro area banks have significantly strengthens the capital positions over the past few years. consequence of the comprehensive assessment conducted in 2014. for significant institutions,, equity tier one ratio has increased from around nine to 13% today. making them more resilient to at first stocks. in addition, the quality of the banks capital has also been substantially improved. with the 2015 supervisory review

process, the ecb has outlined the study state supervisory capital requirements. this means that all things equal, capital requirements will not be increased further. the banking sector can now conduct much better capital planning. 2015, the banks under any city supervision further increased profits relative to 2014. this allows banks to have appropriate distribution policies, while still meeting regulatory capital requirements and buffers. and to support lending to the economy. in addition, the ecb monetary policy actions continue to support banks enhancing conditions, and more broadly, economic entity.

clearly, some parts of the banking sector in euro area still faces a number of challenges. this range -- these challenges range from uncertainty about litigation and restructuring cost and a number of banks to working through a stock of legacy assets, particularly in the countries most affected by the financial crisis. banks, withubset of elevated levels of nonperforming loans. npl. however, these npl were identified during the comprehensive assessment. using for the first time, a common definition. they have since been adequately provision for. therefore, we are in a good position to bring down npl in a orderly matter in the next few

years. for this purpose, the ecb supervisory arm is working closely with the relevant national authorities to ensure are our npl policies complemented by the necessary national measures. the state of the euro area recovery, and the role of economic policies. ofinst the background downward risk emanating from global economic and financial toelopment, let me now turn the economic situation in the euro area. the recovery is progressing at a moderate pace. supported mainly by our monetary policy measures, and their favorable impact on financial conditions, as well as by the low price of energy. investment remains weak. as height and uncertainties

regarding the global economy and router geopolitical risk are weighing on investor sentiment. moreover, the construction sector has so far not recovered. in order to make the euro area more resilient, contributions from all policy areas are needed. the ecb is ready to do its part. end ofnnounced at the our last monetary policy meeting in january, the governing council will review and possibly reconsider the monetary policy stance in early march. the focus of our deliberations will be twofold. first, we will examine the strength of the low important light -- inflation and to inflation expectations.

size and depend on the persistence of the commodity prices. and the incidence of second-round effects of domestic second, in thes light of the recent financial turmoil, we will analyze the state of transmission of our monetary policy impulses by the financial system and in particular by the banks. factorsr of these two contained downward proves -- price stability, we will not hesitate to act., the policy should put the euro area on firmer grounds. it is becoming clearer and clearer that fiscal policies should support the economic recovery through public investment, and lower taxation.

addition, the ongoing cyclical recovery should be supported by effective structural policies. particular, actions to improve the business environment including the provision of an structure arec productivity.ce compliance with the rules of the stability and growth pact remains essential to maintaining confidence in the fiscal framework. let me now conclude by turning briefly to the recent decision to publish the agreement on assets. ups is another step to move to our commitment to be accountable and transparent. both towards use -- u.s.

parliament, and towards the public at large. it is an agreement between the ecb, and the euro area national central banks. policyres the monetary is unaffected by national operations related to their national new monetary policy tasks. tasksght to perform such dates back to the start of the economic and monetary union. at that time, the founding members decided to centralize only central-bank functions, and tasks that are necessary to conduct. with the tasks remain national center banks. no monetary policy tasks including managing the

national center banks remaining foreign reserves, including gold. after the transfer of foreign reserves to the ecb. policy portfolios, including those related to employees, or providing services to national governments. hold portfolios not related to monetary policy as part of their national task, these portfolios are financed either by central-bank money provided by the ncb, or by no monetary liabilities. this does not interfere with monetary policy as long as it is limited to less than the amount of england's needed by the public. -- bank loans needed by the public. this ensures that they will have

to borrow from the system at rate set by the council. limit the sizeto of the national center banks, no monetary policy for almost -- portfolios, and sure the system they will implement monetary policy. of course, when performing national tasks, the national center banks with complying with the treating of including the prohibition of monetary financing. moreover, if these tasks were to interfere with monetary policy in any other way, they can be prohibited. limited, or have conditions placed on the by the governing council. the publication of the previously confidential text was ecb,nimous decision of the

and the national center banks in the euro system to live of to our commitment to be transparent. this publication should resolve these misunderstandings. clarifies thatit the sole purpose just to set limits for paul terry policy -- four monetary policy operations, which they are allowed to conduct according to the treaty. less.g more, and nothing that thet ensures central bank's operations do not interfere with the objectives and tasks of the euro system in particular with a single monetary policy. finally, complementing information, the ecb also published data on the euro systems aggregate net financial assets. the ncb will follow suit and

disclose their respective assets when publishing their annual financial accounts. this data provides factual information to the public as to which part of central-bank money they are provided by no monetary policy operations. you for your attention, and i look forward to your questions. thank you, president draghi, for your interesting and important remarks, including those relating the situation in the banking sector. steplso for this further in terms of transparency and accountability. now we start with our question-and-answer slot. the first speaker? >> thank you very much