host: do the banks lose under this program? guest: the banks make money under the program. it is not a lot of money. income. incremental fee it is something that they are able to volunteer to do it they don't have to do it. the treasury did not require the banks to do it which was an interesting element because at the time, a lot of these banks were receiving billions of dollars from the taxpayer and yet the treasury did not require them to participate in the program for main street. there were flaws from the beginning. the way the program was set up evident that it is certainly not meeting its goals. host: how do people qualify for this program? says my house is not worth what i paid for it -- guest: there are a lot of rules in the rulebooks for who qualifies for a loan modification under the program. the best thing that a borrower can do is simply apply and to try to get through the maze of requirements. where ite in a state is considered -- where the -- have to oversee foreclosures, you are in a better position because the courts will monitor how the bank is operating an

probably in september given the bank of thailand is trying to get it -- and the bank to weaken and they known to use the element of surprise. we were not rule out a rate cut this week to try to get a bad the policy augment announcements. the status quo unchanged in thailand will be part of the regional policy in action this week. rishaad: thank you, glenn maguire. reporter: gulf arab states have iran nuclear the deal after hearing from secretary of state john kerry. will expand corporations to destabilizing actions from iran and others. foreign minister's said it should lead to a ban on nuclear weapons and the middle east, a reference to israel. aviation officials have met their french counterparts to discuss the piece of airplane debris that may have come from the missing flight mh370 deeper the flapper on was started to paris. the park appears to from a 777 print animation 370 me the -- part appears to co from a 777. mh370 is the only such plane missing. two giant cranes collapsed. lifting a section of a bridge when they toppled over. one person taken to hospital but authorities do no

pretty much the same among, national bank greece alpha bank, piraeus bank all down some 30%.arlier we spoke stot chairman of the commission and asked him if the athens stock exchange is a dangerous place for investors? >> there are some uncertainties, but there's no doubt that the official stance now that we are going to work within the existing european framework and awithin the consisting agreement with the goal of obtaining a larger agreement as soon as mid-august. so, i think the thrust for the greek economy is that it will remain firmly within the european union. and will the financial possibilities that we have both as as a country and as a market. and i think that it's worth risking. >> well, interesting declines of course, around about 22% overall. the index back to where we expected. it's the first day back and they can start building going forward. we know the can in general has been kicked down the road. things have been sold. you don't want more declines in the coming weeks. >> no we knew it was going to come. it's a little longer than expected. five weeks, that's

that is central to what a central bank baz. this means -- central bank does.o pull the plug. the big thing about being a central banker, you made a decision last month, if you will change this month, you have to say to your self, what has altered, what has changed? you think about the decision a month ago, the world looks probably worse than it did a month ago, this deflationary pressure on commodities and inflation means it is probably not the right time to pull the plug and they will have to retrench back to wait to later. brendan: things are loading slowly at the bank of england. i am looking at theflreport. it has inflation rising, close to 1%, early in 2016, is that reasonable? danny: i think so, i am trying to load it to. the reason it must do that is mechanical, from the base effect. a -.9 the worry just drop out. that means inflation will take up a little bit. it is whether the inflation out,ast says two years inflation has to hit the 2% target and give it -- given the they thinkink inflation will not get that high. inflation atsee 2.03%, but cuts infl

the royal bank -- this is your bank, -- they are keen not to add to that. it's a case of seeing events play out. with the dollar they are comfortable. global forces will keep that contain. that means it is not as strong as it was. jonathan: thank you for joining us. michael talking about the impact of oil prices on australia. it is been a cruel 24 hours for the commodity market. the bloomberg commodity index falling to a 2002 low. the brent at $50 a barrel for the first time since january. to wrap it up is philip sladek. what should we make of the oil prices and below $50 a barrel again? echo, made, we were expecting this rebound. is the low really entrenched now? philip: there is not a lot we can expect. the data does not look very good. european data not great. we can only hope for some improvement coming from the supply side. to be honest, this might only be to political trouble. something like yemen prices. otherwise, fundamentally it does not look too good. jonathan: thank you for joining us this morning. to get the investment view chief market strateg

bad brink -- bad bank.all of the rest of them go down 15 to 20 and they are still an outlier and continues to drop 30% that will tell you a little bit about the quality of loans that they have or at least the market perception of the quality of loans they have. how you create a bad bank and with that bad bank ends up doing with those loans -- those are difficult questions that could mean there are serious social questions inside greece. that is why these are difficult conversations very of jon: hans nichols, our international correspondent. fantastic inside. in a couple minutes time i will bring you that athens stock exchange. coming up relative calm in the commodity markets. i will break down the market after the break. ♪ jon: good morning and welcome back to bloomberg tv. we are 30 minutes into your trading day let's see how things are shaping up this morning. the ftse 100 is in the green we're up 0.3%. a big pop in paris. stock jan with the spoke -- solid beat this morning delivering biggest profit since

bank,inese construction one of the banks that has been focused on, 0% profit growth.he bank of chama with a one -- china with a 1% profit growth. these are the hong kong listed shares. shares down just about 1%. we have seen positive notes with the chinese banks, some of them actually doing quite well, communications has been rising today but overall these concerns about the financial sector in china continuing to play through the markets. a lot of dislocation in this part of the market today. on the: let's check stories making headlines around the world now with as many as 120,000 people gathered in tokyo to protest against the plan to expand the power of the military. to alter of the pacifist constitution and a lot of japanese forces to operate abroad have passed the lower house. critics say that it will lead to japan becoming involved in foreign wars. toldyanmar opposition voters to ignore intimidation ahead of the election. is speakingureate in what she called a voter education exercise. the parliament has wound up the final session ahead of the vote. they are exp

bank would do but they don't. they really operate generally like a mobile money provider in that they can collect funds but those have to be placed in banks or in actually ink 75% needs to be placed functionality. so now in indian treasury bills or bonds. so you see over time that to a started to move mow more and more open approach. now you've seen five or six of them have mobile operators either leading the theme or very actively involved. so i think there's a lot of promise going forward for mobile operate tors help contribute. >> correct me if i'm wrong india now accounts for one in five? it's happening. and they have 90 o 0 million cell phones in circulation as well. and according to the book on financial inclusion just 2.5% of the population now has a mobile account which is pretty astonishing. since you were the man who brought up india do you want to come back? >> i want to mention one comment. what we're seeing is this scheme is just one year old and progress has been made including now with the chatterin

quickly checking in on the banks today. bank of china, bank of communications -- i correct myself. the fact that bank of china, its latest results not coming in as expected. the chinese construction bank earning zero-- profits in the latest quarter. it is driving the wider markets lower. economic data, you hinted on the lead in -- i can tell you japan, south korea and the industrial production numbers are not suiting investors. worse than expected. we will continue to follow all of these numbers and the impact that china will have on this market. tomorrow we get manufacturing numbers from china. guy: looking forward to seeing that data. let's go to beijing. expanding --s extending their decline. ports cominghe through and feeding into the market. government throwing a lot of support at the economy, is the fear that that will start to fade? guest: i think that is right. there has been an extraordinary amount of support thrown at the market. starting with a cut in interest rates, the reserve requirement ratio, what looks like more state-sponsored buying. at the end of last week, chin

for years at bank of america.s adamant, manus that this is just as much about weakness that has to come. it is not just a dollar story. manus: of course the i.m.f. will have something to say about that and whether it gets into that special -- have a great show. sounds like it is action f-packed. tom keene with "surveillance." manus: let's get more on shire's $30 million bid. first of all, talk to us a little bit about what baxalta is. they make drugs that they can charge a people are mum for. >> shire brings a much bigger scale. not just from the perspective of cost selling but better selling. they get better pen operation and more countries they can work in and of course cost savings. baxalta has just become public although it has been around for many years. it does fit. anus: you got -- $45.23. are they going to have to pay more? >> they have to. apparently, baxalta management will not engage. apparently they had tried to engage with baxter before although they didn't quite say that but i read it in news article

adidas has hired a bank to look at tailor-made.es there was a miss on the income, but sales was at 3.9 one billion. they do have a challenge in terms of their golf unit. you see adidas up 8%. reebok is up 6%. the tailor-made golf unit is down 26%. last year they had sales of 931 euros. -- 931 million euros. the question is what is the fourth -- worth? those are things we will be watching, and what their plans are. there are a lot of things going on with deutsche earnings. deutsche telekom had a clear beat helped by the weaker euro and the u.s. sales. jonathan: on the move for the next 30 minutes. we will keep the conversation on the miners. we will also have rio tinto ceo, sam walsh. ♪ jonathan: good morning and welcome back. 30 minutes into the trading day, let's see how things are shaping up. the extraction businesses are leading the losses this morning. the stoxx 600 up to present -- up 2%. the euro, south of the dollar 10 -- 1.10. euro sterling, down by 2/10 of 1%. the target -- gold is south of $1100. brent crude is below $50

moved banking so the new technology is driving mobile money accounts, driving bank agents, car based caubts. in 2017 we'll probably be asking questioned about products we haven't yet dreamed up. but why does this matter? yesterday i logged on to the computer set up an auto bill pay for my kids' school fees this year and it was convenient but for the tens of millions adults around the world game ally women this is changer. in bangladesh i've been working with factories helping them automate their payments and these women tell us how on payday their mother in-law waits for them to take away their full paycheck and now they can't. they can't keep track of their overtime so they're saving every month for bangladesh i've with factories helping them automate their payments and these women tell generally expenses for their children. it's offering privacy and control especially wage payments. it's safer. so for example a study fund in the u.s. found that after the u.s. digitized began making electronic payments instead of checks crimes fell in the midwest. it also is critical for women's emp

some insight into the bank of japan.hile, it's been fiv months until the first presidential contest in iowa. last night, the contenders lined up in front of the cameras in cleveland for their first debate. billionaire businessman donald trump managed to get the first in the last words in. here he is on the subject of immigration from mexico. wall, and to build a it has to be built quickly, and i don't mind having a big, beautiful door in that wall so that people can come into this country legally. but we need to build a wall. we need to keep illegals out. caroline: controversial as ever. former white house correspondent hans nichols has come to these shores to report for us in berlin. hans, i want to get your expertise. donald trump refused to rule out running as an independent if the republicans didn't pick him. that's quite a threat, isn't it? not to back whoever might take the nomination? hans: caroline, i can't remember the last time the candidate had been on stage and hasn't agreed to support the eventual nominee. t

big banks.ank latest to report zero profit growth. jim, i will start off with this tweet we had. china can blame a journalist story for a market crash, but how can he explain zero growth for your big four banks? >> that's exactly right. what is the difference between -1%?rnings growth and windowdressing. the whole sector went up about .9% in the second quarter. this is down from about 1.5% growth in the first quarter. we are heading south. if this is not a negative growth year, i am a monkey's uncle. rishaad: but will it show up in the official figures? >> absolutely. there is only a certain amount of leeway. rate is about 55%. rishaad: when is an npl an npl? >> even worse. from loansching them which are being paid to bonds. -- aren't this is something that when economies are in trouble banks tend to do. it isn't that legitimate. they are still paying out decent dividends and seem to have decent return on equity. why are you so down? i think the thing about it is , the big four banks that from y

ge had a non-bank bank. it is a government supported relic, new deal. i would like to get rid of it. susan: boeing is now saying, if we do not see a revival of the export-import bank, we will move our business overseas. how do you feel about that? sen. shelby: they will do that anyways. there are no different from any company in the world. they are multinational, in a sense. they have suppliers all over the world. i think that is a bluff. the real question you asked, will it be revived -- i don't know that. the longer it is dead, the harder it will be to resuscitate. susan: you have 64 or 65 senators who want to see a come back to life. sen. shelby: it could. it could come back to life. they have spent millions and millions of dollars to lobby for it here. it's not good for the country in my judgment. susan: just to clarify, you support completely abolishing it? sen. shelby: there is no way to reform it because the big users did not want to reform it. i think it needs to go. victoria: a little bit of a different subject. everybody is talking about the a

the banks are down. the question is whether greece goes to set up a bad bank or recapitalized their banks before the end of the year. if they don't do that, then you are looking at bail ins for some of the depositors and bondholders in greece. manus: francine: manus, thank you. let's cross over to hans nichols in athens. the market tumbled more than 20%. we weren't quite expecting this. hans: we were expecting a great deal of volatility. we are expecting more volatility. some of the members are saying the numbers we get for the first few minutes aren't necessarily going to be accurate. these are a liquid moves. we have a lot of sellers. we don't have buyers. the restrictions are on the buyers. greek buyers are restricted on what sort of cash they can use to purchase shares. the ministry of finance wants to use this athens exchange and make sure that it doesn't turn into a backdoor for capital flight. we see the bank stocks down 30%. we saw the overall exchange down close to 23%. we have to not only look

earlier the bank of russia said it has not tested bank's ability to with stand severe ruble weakness in the third quarter. estimates indicate that the russian gdp contracted by 4.6% year on year on the second quarter. this is after the economy shrank during the first quarter. the country is its largest trading partner. >> we're just getting some earnings. i'll get them to you in just a second. second quarter net profit at 54.6 billion rubles. analysts were expected 41.2 billion roubles. second quarter loan loss provisions at 117.1 billion. in terms of price action, down just fractionally on the day. >> yeah, well chris joins us, founding partner, welcome. so kwlis let's start with the overarching theme of russia and the health of the economy and the health of the banking sector as well in the country. which angle should we be suing russia at right now? especially in light of what's taking place in china? >> hook at russia in two parts. in terms of balance sheets the country is relatively stable despite the decline in oil price. the central bank allowed the rouble to depreciate in ter

-- from banks -- we hear a lot of this from banks, don't we?ulia: there are quite granular in details. they have been were detailed the deutsche bank. they still have a lot of confidence in them. they have unveiled deep costs. they also showed further drop -- don't cuts. -- ducats -- job cuts. anna: focusing on what they do best. i noticed they sent -- said they complete the review by year's and. they're changing the release time from the usual date to just 5:00 this morning. the fx broker, what does that mean? julia: it has been huge, monumental. there are not a lot of detail. there also expanding rid of their are authorities across the globe. they don't know what will come and neither do we. anna: a lot of uncertainty does. liaoning -- just outlining their three-year plan. this is going to continue. julia: when you look at the global market, their fx division did well. they're able to take advantage of that equity rebound. the markets are doing very well. it is quite a significant amount. they don't necessarily need that much. anna: thanks ve

banks that had little. jp morgan, bank of america, ubs, and citigroup. settlement, that includes hsbc, barclays, goldman sachs, the royal bank of as part of the deal that they have done with the lead lawyers of the lawsuit, they have now agreed to cooperate with them in their percent of -- in their pursuit of seven other banks. they can hopefully come up on your screen. european banks in the thick of things there. the accusations in terms of foreign exchange rigging. we're talking about allegations that they manipulated benchmarks -- benchmark rates. it was to help them make more money or lose less money. this is part of a crackdown against financial miscreants who fromccused from everything rigging benchmarks, to cross-border money flows. caroline: $5.3 trillion a day market. wide sweeping effects. ist is even more concerning $2 billion is at the end of it. >> for the start, you are the other seven banks. some will perhaps settle and there will be damages. in addition, you up the potential for other cases

alpha bank and euro bank also down just as much.ll keep you updated on that throughout the morning. the ase opening down over 22%. the biggest one-they drop on record. time to talk about another sector that had as rough a ride this year as the athens stock exchange, the commodities sector. the first half of 2015 saw a sharp uptick in the number of private equity investments in the mining industry. this according to a new report by our next guest, alexander keeton. he joins us now. great to have you with us. up whennt is picking the sector is on its knees. this is kind of how things go. talk to me a little about it and some of the deals being made. the mining industry has been experiencing difficult times. it is difficult for companies to get debt. the major focus is returning money to their investors. private equity has seen this opportunity and over the last few years, investment has been raised to go into the mining industry. that didn't immediately translate into deals. people have been watching to see whether the private equity

alpha bank off by a similar percentage. euro bank off by 30% as well. yesterday greek stocks dropped 16% at the start of the trading day they were down by some 20% so limiting some of their declines but obviously that was a huge drop. >> so essentially two limit down days of 30% declines for the banks. yesterday the rest of tin dex was down around 20% at the open. today the rest of athens stock exchange only down 4% so clearly the banks baring the brunltts of these declines. oil prices grabbed attention yesterday as well. a significant decline particularly at the moment of u.s. trade opening delining some 4%. there is a little bit of stabilization today. a little bit of a bounce back as you can see but we are in and around the lowest levels of 2015 for oil prices. brent 49.9. wti 45.7. where do oil prices head from here? earlier our colleagues on squawk box asked co-founder and co-ceo of carlyle group. >> in time prices will come back. in time demand will catch up with supply and in time i believe that carbon related energy will be one of the best inves

a message had to be sent to the banking world.: the u.k. government has started to sell off its stake in the royal bank of scotland to it raised two point one billion pounds by offloading 5.4% of its shares. george osborne is taking a loss as he tries to revive investor appetite in the bank seven years after became britain's biggest casualty of the financial crisis. francine: now, let's get more on issuednd the rbs ceo has a statement saying "i am please the government has started to sell down its stake. it is an important moment and reflects the progress we are making to become a stronger, simpler, and fairer bank. there is more work to be done but we are determined to determine -- to build a bank the country can be proud of." manus: this was something that was warned about by the chancellor a couple of weeks ago. we's taking a loss. this is a bit of a gamble. public opinion, yes. the chancellor does not seem to mind. the tried to lay groundwork. he said in june that he had adi cievice from mark carney and from rothschild which a

bank in another town for now. this cow in recent years, as some of them lost money and housing, some banks are stricter about the services they provide. you may well be having a harder time of doing things if you do account then 10 or five years ago. host: and bank regulations and changes brought by the dodd-frank financial reform, which we will talk in our next hour. judy is waiting. go ahead. caller: yes. i am thinking that these banks are becoming international and way too powerful. they do not care about local needs and the people. politicians with their power. this is a dangerous thing. i think the banks need to be broken up like they did in the last century. guest: that is a view out there. the four or five a guest -- biggest banks have at least half the d positive in the u.s. there are still large banks and their is still concern about the risk they present if there is an economic downturn or if we have such large tanks destabilize. -- such large banks destabilize. there are plenty of small banks for people

day is the second after the bank crisis. bank shares push the trading limit yesterday.citigroup vice-chairman says the bailout won't work if greek banks don't bounce back. system isek banking key to getting them back to growth. we have to recapitalize the four major banks quickly and they have major problems with nonperforming. unless you get the greek banks up and lending, there's no hope for them to succeed. pimm: one bright spot today the otherwise bleak greek financial picture is the country's central banks is $1.3 billion has flowed back into the country's bank since they reopened two weeks ago. the list of deaths and injuries lamed on defective general motors ignition switches is still growing. the fund set up to compensate victims is recognizing 398 cases , including 124 deaths. families of those killed are being offered at least $1 million each. general motors recalled more than 2.5 million small automobiles because of the flaw. says it might have to rethink its profit forecast because of a slowdown in china. the luxury automobile maker thinks china sales will m

banks is limited. people can use a mobile find to pay for goods and services, receive the funds, and access financial services. this is running away for developing countries to grow their economies. tanzania has 95 million mobile transactions per month. it became one of the first country to connect them, allowing them to easily send money to people on a different network. 2013, 73% of brazilians live within five kilometers of the financial services institution. in india, ang -- subsidy for liquefied petroleum gas has delivered $2 billion to bank accounts. saveatives like these can the government money and help individuals receive funds more securely and reliably. to see where the nations we evaluated right on our scorecard, go here. our project seeks to answer three questions. do country commitments make a difference in terms of project -- progress towards financial inclusion? do -- to what extent do mobile technologies advance inclusion? and what legal policy and regulatory approaches do the best job

perea's bank only halted by the daily limit curve. the bank was down 51%.ursday, it has lunch 63%. -- it has -- it had plunged 63%. apple loses its shine. falling more than 10%. drop has investors fretting. morgan stanley says the threats that says the fret is overblown. the not so super thursday. voted 821. the most in two weeks, following the decision against the dollar. the bank of england will like behind the federal reserve when it comes to hiking interest rates. there are the charts that matter. it is five months until the first presidential nominating contest and i want. last night, the contenders for the u.s. president lined up in front of cameras for their first debate. this is meant donald trump managed to get the first and last word. here he is on the subject of immigration. >> we need to build a wall, and it has to be built quickly. a bigt mind having beautiful door in that walls so that people can come into this country legally. we need jet to build a wall. -- we need jeb but to build a wall. jonathan: it does not resonate in the same way as ca

banks are beginning to lose fai th. there's only so much central banks can do.st up." i am angie lau. let's get straight to the marketeer in the asia-pacific. this is how we are starting the week. the nikkei 225 down below the 1000 mark. it is the safety haven play. to australia, where we are going to check out the asx 200 for you. china weighing on investors no doubt. australian dollar spot, that aussie dollar is also weakening of. be -- the k cost ospi is just starting. fresh off the latest rate cuts from the central bank among many chinese lenders are offering favors much less for their deposit. what are we see? banksn: you're seeing following the rate cut, offering less for savers deposit than they have in the past. what you can extrapolate from that is that, if tanks are not lending as much as, which is a slowing economy, they are not going to pay more for your deposit. that is what we are seeing across a number of banks. one offering 2.85 percent a year on two-your deposits. the deposit rate has been cut down to 2.35%. that is the benchmark rate. and the b

banks never did check. when you take out a mortgage you have to sign a document that says the bank can go to the irs and check your income, and the fees were to rich and really key to the lack of whole accountability, and they shovelled the loans off to investors and they didn't have any skin in the game, so all they cared about was making the fees generating the mortgage and shoveling them off to somebody else and that person had to sustain the losses when the loans didn't get paid. i think there is blame to go around. i absolutely agree with that. but i think the person in the room that was supposed to be responsible was the banker, and they fell down on the job because they had no skin in the game and couldn't careless if the loans didn't get repaid. >> sandra is watching, an independent. good morning. >> caller: good morning. i have wells fargo who i have asked to turn around and make the payment for a different part of the month because our income had changed during the month, and we needed it moved ov

most likely representative from the bank, who will be a lawyer.l be dialing up to somebody who has authority to make decisions from the lender. all you are to them is nothing more than a spreadsheet. >> i understand. >> they have to decide specifically do they want to hold on to this collateral and work a deal with the homeowner or do they want to take it back. they say you owe x amount of dollars of the arrears. we're going to do a forebearance on that, and to put them to the back of the loan. then strike up a new structured payment. >> all right. >> the second thing that could happen is they could work out a deal and they could say we want x amount of dollars down in good faith money. the other thing that could happen you could go there next week and they could say to you, oh, we need more documents. now we've had this discussion. >> really? >> of course. you have the right to say no. you have the right to say to the mediator enough. go ahead and start foreclosing on this property. let us know when the auction date is. we're moving on with our l

one is the bank of hiroshima just down the street here. this is the bank of japan building.t is only around 400 meters from the hyper center of the explosion. this building survived, despite temperatures which would have risen to 3000 degrees. everybody and everything around here was incinerated, but amazingly inside this building because of his thick walls, some people survived. after the bombing, a lot of people here thought hiroshima would be an atomic wasteland, that nothing would grow here for 50 to 70 years. that, too, was wrong. these are the grounds of hiroshima castle. all of the buildings were completely wiped out in the explosion. but look at the trees. you can't help thinking some of them must be older than 70 years, and indeed, they are. this one is a survivor. not only did it survive, but it seems to have thrived and there are many like this. they are an incredible testament to the resilience of nature. laura: a look at some of the trees that managed to survive the bombing of hiroshima. before we go, some incredible images we wanted to share with you. national

a first world bank or a global bank?anuel: if you look at what they are uploading, they are actually shrinking. they are refocusing on the markets that give them the most income. asia, 60% of the income is from hong kong. they used to be pretty good in that they had two engines -- europe and asia. one of the engines is not working so they are recalibrating. they seem to have a lot of focus on china. they have the most invested foreign bank in china. maybe they see something about themselves that will play out in a year or two. rout: how will the stock impact them in the future? emmanuel: in the second half, for sure. i'm looking for a long distant strategy that plays out. what do you have had is a tactical advantage for the first half of the year. shery: investment banking will take a big year, isn't it? not just for hsbc. emmanuel: investment banking itself has been a very difficult business because it is actually deconstructing a way for banks for more boutique houses and so on. as a business model, hsbc has the that d

the first sales is the royal bank of scotland got the royal largest bank sale seven years ago. seven years ago, really? seven? taxpayers still holding nearly three quarters -- .75 of the shares and the government is trying to revive investor interest in the stock. those are your top headlines. can you believe the crisis was seven years ago? erik: some days it seems like yesterday. we will get you started with the five things you need to know this morning. stephanie: i will give you numero uno -- twitter. that bertie not find so high. levels at the lowest since the ipo yesterday. down 6% at the close. investors bloomberg talk to now say it is being considered as a takeover target for potential acquirers like google. i said this last week when you were not here, i honestly think it is a refresher refreshing to see jack dorsey and anthony in there call and be honest. honest about how they see the outlook. you and i talk all the time about the smoking mirrors and the dance we see around earnings reports, so maybe this does make them a takeover target. maybe this gives people a chan

look at the banks. tracking greek banks has dropped to a record. a want to show you how the stoxx 600, actually benchmarked in europe, is shaping up more than 1%. gaining for a six-day out of seven and is benchmark has risen about 17% this year. back to you. mark: goldman sachs analysts have put a price tag on the efforts made by china's government to prop up the recent $2.4 trillion stock market route. china's government has spent as much as 900 billion yuan in the past two months to prop of the country's ailing stock market. that is according to goldman sachs analyst's, who say the injection amounts to almost half the funds allocated by the chinese government and 2.2% of the country's flee -- free flow market capitalization. the government yet to disclose a figure on its intervention. mark: harvard mba grads used work about that -- brag about her 21 hour workdays on wall street. mba grads are increasingly going with00 to 5:00 tech jobs lots of perks and an emphasis on quality of life. reporter: i'm not sure that 9:00 to 5:00 is the way to charact

a bank like jpmorgan, or citigroup, or bank of america?dance that the banks and their boards and their departments are doing with the regulators when it comes to the resolution, that a bank that large could be unwound, wound down, resolved, in the event of a crisis and a subsequent collapse. a fiction?t could you ever unwind jpmorgan? john: it is a question of how you unwind it. the idea there is no longer too big to fail, it is not true. you cannot allow jpmorgan or city or goldman sachs or morgan stanley to go bankrupt in an uncontrolled well it -- uncontrolled way. them over time? of course. it would take a long time. you have to be able to stabilize. no question you have to have the capital and the liquidity to make them be stable and have the time. erik: do these big banks come i'm talking about the biggest ones, have the funding advantage by virtue of the implicit tax support? john: absolutely no question the biggest banks are still too big knows that.ryone it gives them an advantage in the marketplace. compete with the biggest banks

then, we went to another bank. the other bank turned around and could dobe we something. next thing i know, they had a reason why they couldn't do it, but yet they took $200. now, we are in fannie and y.eddie mad they accepted us, but i took it to the bank to see if there were hidden things. yes, $600, and that was to rewrite the loan. the guy told me afterwards -- after i ripped up the papers, he called and said, what was wrong? $6,000, i haven't got that money. he said, that was going to be written into the loan. where is the truth? why is all this money going out? are at 6%.e -- we we are struggling, and we are senior citizens. three of us in one house right now. our incomes total $27,000-$30,000. they wouldn't change the loan at all. we have top credit. host: gretchen morgenson? guest: sandra, i would urge you aido you have a legal society or some sort of pro bono legal assistance program in your area? i would urge you to go to someone there who could help you. not -- gorepeat, do to one of these companies that claims to help you, and are really a for-profit company t

bank of england this is revolutionary.lso revolutionary because this is when interest rates could start creeping higher. if you are a traitor, or and in -- a trader or an investment officer, this is a lot to digest very quickly. >> it is. probably why he's picked august to do it. it is a relatively quiet month. most people are not expecting a rate rise. we don't expect a forecast rise today. i think the more interesting thing will be to see whether the asset purchase is adjusted at all. if you think about how the fed responded in terms of dialing down qe before a rate rise, what the market hasn't thought about is why we continue to pump up the system and raise rates at the same time. we might look to see if there's an indication of an early move in that area. what i would say is that, we do think there are increasing inflationary pressures in the u.k. economy. that's partly a reflection of a year on year run rate of a lower oil price and the effect that feeds through to consumers. a rising oil price is a tax in developed m

that surpassed the euro banks index. they want to target 11% by the end of 2016. >> thank you very much. six minutes past 6 a.m. in london. let's talk about numbers for the second quarter the dutch banking groups. second-quarter net profit coming in at 1.3 6 billion euros. -- 1.36 billion euros. we're getting were details on their balance sheets. it is a fully loaded ratio. they are giving us underlying assets. going into these numbers, is lot of focus on the capital ratio and whether that would be boosted by some of the asset sales they are doing. they're focused on the cost side of things and talking about whether we would see cost the lower and improving the environment and driving a better picture. all of that when we talked to the cfo of ing in about 40 minutes time. mystic a look at asia. -- let's take a look at asia there is a chance they will delay the chinese currency in the reserve basket. david english joins us now -- -- david ingles joins us now. >> good morning. that me get started with some headlights -- hi

for an fdic insured bank. it is controversial, but it was deemed necessary after the lehman brothers collapsed. that is one thing that could have come into play if there was a big correction. another thing is that the federal reserve now has extra powers to mandate capital requirements. it is the source of a lot of debates. it says that banks have to be insured. more broadly. and also against liquidity or financial panics. that has madeing -- i do not think the stock market would have thrown off wall street, but that is one thing we would have looked at. host: this is a major stress test, or at least decent sized of the past two weeks. does it show there are places where dodd-frank has overreached or was unnecessary? not think so. most of the places dodd-frank has reached is not related to the stock market. we should step back and remember. the sec has historically taken a disclosure approach. the real reaction is we will tell investors the financial based onon -- this is what extent is were done before -- exc

joe: we'll talk to a texas bank chief about oil, housing, banking and how the lone star state does it differently. alix: we begin here with stokes. the dow jones industrial average falling, ending that three-day advance and it was about the commodities, energy, materials, all leading the declines lower. on the upside, those home builders keep killing it. hot, hot rally. up 16% so far this year. joe, we need that in the market, because if you have the bioteches and the media stocks rolling over, you need another sector to lead. joe: another theme that we keep alking about, emerging action, the central bank of turkey held raids. we saw their currency fall. another bad day. like that story every day. alix: emerging markets currency as important impact on commodities. take a deep dive into my terminal to talk about wal-mart and how much higher expenses are going to get. what you are looking at are these blue bars are revenue growth, sales declining there on a percentage growth. and these orange bars are operating expenses. operate ping expenses far outpacing sales. two reasons. wages and

bank. i get direct deposit on a bank in another town. >> i'm not a total expert in everything that banks are doing. i think in recent years, as some of them lost a lot of money in housing and other things, that some banks have become stricter about the free services they will provide to other people. you may very well have a harder time doing things if you don't have an account than you might have ten years or five years ago. >> bank regulations and changes brought by the dodge frank financial reform, a topic we are going to be talking about in our next hour if you want to stick around as well, judy is up in lady lake, florida, waiting to talk to christopher rugaber. go ahead, judy. >> i am thinking that these banks are becoming international and they are way too powerful. they really don't care about local needs and the people. they buy off politicians with their power. this is a very dangerous thing. i think the banks need to be broken up like they did in the last century. >> right. that'

let's talk more about the bank of england.ext guest says today's inflation report is likely to signal more tightening in the markets expect as the next rate hike approaches. he's the head of rate strategy, lawrence martin. lawrence, great to see you. ask for coming in. when are you expecting a hike? there's not a great deal of conviction when you look at percentages. lawrence: the percentage has been growing over the past 24 hours. we think the most likely time is february. obviously, governor carney mentioned that the turn of the year would be the time he would think it was right. so rather like in the u.s., we know that the market has tended to take a very dovish you of when the stock might fall -- a very dovish asview of when the stock might fall. we will have to see what they come up with from all these different ways of communication. anna: a trifecta is due at high noon. we have been flagged by the unreliable boyfriend in the past. he got this me because the markets were a little bit confused by what he meant sometimes.

we'll talk to a bank today.hey have to start taking some risks in order to make a little more money. it's wells fargo and jpmorgan and it's working. it's too expensive to rent. your home is going up in value. you're not a fool to rent. not everybody has enough money, but this is all part of loosening of the banks. it's no longer as hard to get a mortgage, particularly one for more than 500,000. it's not as hard. it's still difficult. and when you go to get a loan for a beach house, that was just a -- that would be like are you kidding me? >> a second home. >> and now it's like we'll look at it. i went to a bank to look for a loan for a second home and they were like, you know, incredulous. i said well, i don't know, if faber were here, i would say this is my 15th home, but the fact is that banks now listen. and they don't just close the door and they're not afraid of the regulators and that's really important. >> something to watch as we get closer to the fed minutes tomorrow. >>> disney, cbs and fox being downg

bank back to bad loans. we saw profits tripled. there are problems in the bank.oans left. aib?ine: what is next for is 99% owned by the irish government. in six to nine months there is an election. the government would like to have some payback from aib. signal that that could happen soon. the bigger question is when an ipo of the bank will happen. the minister of finance has indicated it could be in november, but more likely it will be next year. the results today have brought the timetable forward. in the space of the next three to six months i would say. nrancine: if you are a investor, what are risks people should look out for? ara: one thing is that it is state owned bank so there's pressure for the bank to reduce interest rates. the political environment is pressing for more rate cuts. are a lot of outstanding shares in aib. if you look at the capital it is bigger than deutsche bank. consolidatedare which could see a fall in the share price. michael noonan a year ago warned investors not to buy shares in the bank because of the consolidation prices. it is p

you cover banks, you got to talk about banks. when i look at my whole portfolio.this ever going to be a growth sector? is this something that i just harvest for dividends, it's a steady eddy hopefully that's like a utility? >> well we make a distinction between banks run as utilities and banks with utility-like outcomes. you see other segments -- >> they're being regulated like utilities? >> that's a little extreme. you're not regulating -- >> you have more regulation, but you're not regulating the deposit rates, you don't have required rates of return. what you do have is more utility-like outcomes. if banks have more annuity-like outcomes there should be multiple expansion. >> from what to what? >> well right now we have jp morgan going up to $78. we have our four-year target on city group at $107. you have a double in citigroup in three and a half years. >> i'm looking at a pe of trailing of 12 on citigroup for example? that's, that's -- >> that's all it tells me. >> if it just gets to book you have decent upside. more upside than an intel -- >> convince me. >>

they lowered the banking system. these banks are now being required to sell assets. talk about that. >> you have got noneconomic sellers. you have got to sell. we are buying from people who are buying more because they' re being forced to instead of thinking it is a good decision. we are able to buy that somewhere around $.60 $.70. you get paid part. you have got to do a whole restructuring it takes two or three years, you take a lot less risk. >> i wouldn' t a bank just wait to do that themselves? this is the real opportunity in the hedge fund space. >> the ecb told the bank, i want you to reduce your leverage. any a company goes into bankruptcy or has an issue, the ecb forces you to take a hit to your capital. you got to take a $.50 into your capital. it is better for the bank to end up selling that loan at $.70. they are only taking a 30% hit. >> given the fact that a chase in the quantitative easing, any thoughts on the equity market? >> i think it probably makes sense. you are going to have this qe1 or qe2 out there. to generate an equity return. >> be looking a

the prospect that these banks may need to raise more cash weighing on those banks that this point.-bagger earnings stories today. big your pick -- three earnings stories today. chemicals producer based in melbourne, 13,000 employees. they basically cut their profit floor task. there is a lot of metrics here. ashave an impairment charge much as 1.6 billion aussie dollars. impactso see fiscal year of 10% to 15% below the median deficit if you strip out the outliers. if you do the simple math, and we did it for you here at bloomberg, that implies about 416 million to 441 million for fiscal 2015. second-quarter income basically missing, not surprising there. we leave it there for now. a look at the bank of england because it released a wave of data at its monthly meeting. they are attempting to improve openness and transparency. >> it has been dubbed super thursday because for the first time ever, the bank of england released not just its rate decision but also the minutes from its meeting. the votes from the monetary policy committee, and its outlook for inflation as the economy -- at

the central bank intervened yesterday? did the central bank buy? did it sell dollars? today's intervention was verbal with the central bank saying that is no basis for depreciation to persist. it will step in to control large fluctuations. the pboc seemingly drawing this line in the sand, according to a strategist at standard chartered in shanghai. so, the size of the decline in the yuan seems to be abating. what about the movement in a sian currencies? i was telling you about the jpmorgan asia dollar index. this measures the dollar against 10 asian counterparts. yes, it continues to fall today. yes, by .2%. yes, it is at its lowest level since 2009, but the slide is abating. as the yuan slide is abating. of 1.8% through wednesday was the biggest since 2011. still, this index is at its lowest since 2009, but the decline, as the yuan's decline, is abating. very quickly want to show you the dollar against the south korean won. this is another currency that has moved wildly in the wake of this china devaluation. south korean's won today rising the most since 2011. this is

important institutions like the european central bank and the bank of japan.hink it is likely to continue to strengthen and will not go away. that is something the federal reserve will be taking into consideration. shery: where did you see opportunities in the u.s. amid this environment? mark: we still think the u.s. economy is 30. sturdy. consumers actually are in pretty good shape. we think job growth has helped get consumer confidence which bodes more firsor spending. we like consumer discretionary stocks like the housing space. we like the consumer staple which benefits from oil prices. financials are performing very well as we see better domestic and commercial loan activity and recovery in the housing market. collectively, those are high conviction sectors in the u.s. shery: you mention oil. we are seeing it read out a little. commodities overall, are they overdue for an upside, rebound? mark: they probably are. i was looking at a chart this afternoon and by all accounts it looks like it is poised to rebound. pca countertrend rally in the context -- you