the asian banks, the japanese banks are very close in their capital as well, and i think european banks are the weaker end of the scale. >> i would probably leave the swiss banks a little bit out of that -- [laughter] >> yeah, i would leave the swiss bank out. >> thank you. >> i was just about to ask that. [laughter] >> i would just add quickly that, you know, we're sitting here in the iif, and when you listen to tim speak about the issues that are facing the global asset management firms, the global banks, he is doing a fantastic job of trying to say what we all think without it sounding self-serving from us. and he's trying to take a global perspective and trying to figure out how do we not continue to ask for more capital, bog down the system with extra -- not that you don't need this, but we have, you know, we don't just have legal compliance, risk, audit, we have people check. and and then we have people who check checkers. and to -- check the checkers. and so there's this endless quest to make sure that what you have is the right thing, and i think we're getting thwarteds the end

of still banking in the dynamics of global banking, particularly european banking.all, welcoming christine lagarde of the imf. there is so much concern about deutsche bank. how much do you worry about it? >> deutsche bank is an institution that is strongly interrelated with many of their banking institutions around the world. we believe that deutsche bank, like many other banks, has to look at the business model, which i am sure it does he goes it is in the process of selling assets here and there, has to positivityg-term given the lower about interest rates around the world and probably for longer than many fight itnd decide what wants to have and how it wants to strengthen its balance sheet. but it is not the the one in the banking landscape to have to do that job. we believe that many banks have to do a bit of introspection into how they want to be. i would mention something else which has been made quite obvious this week -- the digital banking is really hitting the radar screen in a big way. look at the ing announcement, this will probably have more banks move

what is the outlook now for european banks? >> a lot depends on deutsche bank.st friday, when the headlines came out, the rumor that the fine was going to be smaller than expected, the whole market erased gains. people are really gripped with what is happening here. it is the biggest bank in europe. the problem with deutsche bank, over the weekend, there was n news about this, no confirmation that the fine was going to be smaller. we will see what happens when the german market opens tomorrow, a holiday today. optimism on friday was not really that unwarranted. nejra: you made the comparison with the u.s., in terms of how much banks are a critical component of the european economy, perhaps not in the same way as the u.s. what about energy shares? >> that is an interesting point you bring up here that was one of the cases in the u.s. last year. remember, everyone was talking about oil and how oil stocks were driving the market. it was actually the smallest industry group on the s&p 500, but people were so obsessed with what oil was doing every day, up and down th

bank?> well, so, it's a very complicated position, because we have an election next year, and we have ongoing talks with the u.s. over this fine, which, if it gets to $14 billion, everyone thinks deutsche bank would be pushed into a very painful capital hike. the german government is playing it in a very complicated but potentially dangerous way by saying, well, it's an election year, the potential game of chicken going on with the u.s., we don't want to put the taxpayer at risk. that is something that would surely lose votes and maybe encourage a steep fine from the u.s. deutsche bank is a huge bank. it has a huge balance sheet. it has $2 trillion in assets. there's no simple or logical backstop other than germany if ever it does find itself in trouble. >> we are just over 40 days until the u.s. election, and last night marked the first of three presidential debates scheduled before the big day. one of the topics donald trump was not shy to touch on was yellen's fed. mr. trump: the fed is

coming for deutsche bank. forto the commerzbank. >> it has not been a nice day for the german banking stocks, but i think it is a short-term view after the next week. prepared to comment, but i am relaxed. >> video says there is the full dayt and that it is a unity here. is later inhow this the day. >> indeed. great job there. is the global strategist. thank you for coming in. you look at the world and the world panic because of the news article that the german government would not backstop banks. you?is the risk saying to utter lack of belief that they have the capacity to do what they say they are going to do. >> you have to look at the bankstion and it is around the world that are more rigid and more robust. what is the issue? deutsche bank has the liquidity thethe capital and there is outstanding department of can be and the bank recapitalized with a question of what terms the germans would want to recapitalize the bank and it is a different issue from a bankruptcy. , it is not correctly interpreted and th

we have seen european banks run into trouble, and even deutsche bank.ut jobs and europe. and regulators and politicians are happier with investment banking cuts than with retail bank cuts. whether it is the u.s. or london, this is about the cuts that are easy to make. it is not just about the labor laws. it is about what happens when you cut those jobs. it is such a complex, delicate balance. ultimately, i think the u.s. retreat makes more sense than the other things they have discussed. jon: great to have you on the program. what strikes me as interesting as we look at the bank reviewing strategic options. we look at deutsche bank maybe becoming exclusively a german lender. they are facing new regulations. our fed talking about resolving it. a burden. jon: maybe that is way to get the capital of without having to go to the markets to get it. coming up, post-brexit highs. this is bloomberg. ♪ alix: this is bloomberg daybreak. it it is 8:30 a.m. this is what you need to know at this hour. bank of america shares arising and on revenue beat estimates you'r

banks. so, we are watching italian banks as well.uest, it is the biggest banking merger and almost a decade, approved by shareholders on saturday. and bancanca popolare popolare di milano. caroline: it is the biggest deal we have seen since 2007. we are still waiting for the italian lenders, the banca p opolare and the banca popolare di milano, to discuss their figures. let's get over to bloomberg news' chief italian bureau chief. how important was this merger? > >> i think it was very important in the sense that this was put together after negotiation that started a year ago, approved by the bank's board in the sping. loans on theve bad books of a lot of italian banks. i think it would have been really detrimental to the attempt to stabilize the italian banking streak if this deal did not happened. it was also a cornerstone of zi'se minister ren economic program, modernizing the sector of popular cooperative banks. if it would have failed, it would have added more ear bizarre sentiment. guy: so, more is coming in this sector, yeah?

acknowledge a number of people including beven duffey the mounting evidences about san francisco hometown bank is shocking it reveals that wells fargo used personal information about their clients to open without their permission and transferred funds as treasurer i'm responsible for keeping the city save and 10 years ago i started the bank an inform program i believe that everyone money is safety in the a banknote held in cash or under a mattress when i learned that protecting people in the city if have basis assess he worked with bans and credit unions to create low-cost accounts without barriers to assess now thousand of san franciscans every year opened their first behind the eight ball through the bank on san francisco and bank that programs in dozens of cities across the country and last year, we annunciations bank think standards for save behind the eight ball with no overdraft fees so after hearing about the actions of wells fargo i met with an executive to find what information and advise to provide to the san franciscans he couldn't give me basic information including how many san fr

bad news for the banks. seeing figures in theresa may thatnment tells bloomberg they will not prioritize financial services in their brexit negotiations. ready for a hike? fed's loretta the chance for a rate hike is to live. r.b.i..or at the it's governor patel first decision remembers well that every member of the reserved banks has a vote as well. we're going to take you live to mumbai could were less than half an hour away from the european open. the fair value tech elation on my bloomberg told a fairly flat open here in europe, up less than .1% across the pc. deutsche, i'm looking at the trade day trade versus the close on friday. on trade gate, deutsche is going to open up around 1%. let's take you around the world and show you what is happening. the yen versus the dollar. the dollar is up. a bit of a ketchup move for the australian bond market -- a bit of a catch up move for the australian bond market. we will talk about the rba later . you are seeing a dyson move -- a decent move in the end. let's get

banking sector. bloomberg. ♪ francine: welcome back to "the pulse." markets a little bit flat. let's head to the bloomberg with nejra cehic. nejra: if we look at the stoxx 600, where up .2%. the german markets are -- we are up .2%. the german markets are closed today. that brought a little relief to asian markets. in europe, where up .2%. -- we are up .2%. using the imap on the bloomberg, energy stocks leading the game at 1.4%. not a surprise given crude oil leading the rise today. perhaps a little bit less concern over deutsche bank and we have had a mix of news over the weekend. reports about thousand planned job cuts. one of the biggest gainers on the stoxx 600 today is henderson group. this is the chart over two days, up over 50% at the moment. to --fter it agreed agreed to buy janus capital creating a money manager. both companies looking to revive asset growth and profits in an environment where asset managers have been losing out to lower indexes. this is henderson group, biggest gainer on the

a bank that has a lot to do. a global system bank. the main reason why you need capital is because their system -- they have time. they have until 2018 to do that. they are on the path of rebuilding the business, restructuring the business but it will take time. as far as the metrics, capitalization is more than okay. >> is there a number for the settlement that's too high, assuming it gets below that $14 billion level what do investors want to see that's comfortable? >> if we look at the reserve right now of deutsche bank it's $5.8 billion. what's very clear is that even if the settlement reaches only $5 billion you have to add to that 2.4 billion euro charge which makes the current provisioning not enough. so whatever the figure, they will need to add more money. but it can be not only capital, they can sell some assets. they have deutsche bank which can be sold for 50, 60 billion. they have a bank, 20% which can be sold. >> david, you point out a very overcrowded banking marketplace in germany and i just want to quote the numbers y

european banks of the moment.rms of asia, what are you liking? that ini will say general we like banks because from a valuation perspective, they are attractive. we feel that risk premiums have and you arebally, right, large, systemic banks -- one would be well advised to stand back from. we do like banks that are more local and regional in nature. in the united states, we like banks as we see rates potentially increasing. again in asia, we like banks with more of a local or country focus. haidi: i want to move on to the u.s. elections, you have a 70's percent probability of a clinton presidency. are the lessons learned from polling leading up to brexit give you a little concerned that markets are again underestimating the potential for a downside risk? great point. if you look at current polling, you will see hillary clinton holding roughly 85% to 90% chance of winning. assigning onlye 70% chance of winning because we have learned lessons,'s rushing the vote on grexit. we feel there may be a section of the united

she wants to break up the banks.nthony: and she gets fetd questions and answered when she goes on msnbc. gary: hoo who does she surrounds herself with? charlie and sandra, thanks for joining us. tone we'll see you next week. ♪ i found a better deal on prescriptions. we found lower co-pays... ...and a free wellness visit. new plan...same doctor. i'm happy. it's medicare open enrollment. have you compared plans yet? it's easy at medicare.gov. or you can call 1-800-medicare. medicare open enrollment. you'll never know unless you go. i did it. you can too. ♪ very gently release the clutch. -okay that was too fast. so is managing your credit. get experian creditworks basic for free today and you can start getting better. you'll get access to your experian credit report and customer service experts to help answer your questions. so you can learn to be better. good job. start building your credit skills today for free. visit experian.com/free right now. experian®. be better at credit. ♪and i ♪i will always love you, i ♪i wi

this happens to be a french bank . osha bank lacks -- deutsche bank lags.t does that do to their income statement? don't cut back, you jettison. if you were to jettison, you would have a tough time holding on to the client base. the large corporations will want a dollar syndicate in the united states and a euro syndicate in europe. tom: i don't get what they are doing. >> every major central bank and the miter want to ask in the banks to come up with these roles for resolution. to do that, they're forcing them to maintain capital with in the subsidiaries. that is a direct attack on the universal banking model. transferficult to trading books around the world. it is difficult and you are being left with stranded capital. they are trying to free up some of that capital. resizehey will be size -- the united states. you mean to say they will run the new york is this out of london? >> no, they can't anymore. essentially, you say, i'm going to be more of a german bank supplied european clients who want access to north america, rather than a resident north america

she wants to break up the banks.nthony: and she gets fetd questions and answered when she goes on msnbc. gary: hoo who does she surrounds herself with? charlie and sandra, thanks for joining us. tone we'll see you next week. ♪ there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. very gently release the clutch. -okay that was too fast. so is managing your credit. get experian creditworks basic for free today and you can start getting better. you'll get access to your experian credit report and customer service experts to help answer your questions. so you can learn to be better. good job. start building your credit skills today for free. visit experian.com/free right now. experian®. be better at credit

banks. the third quarter which was summer was really good. it's up 48% year on year. on the money market reforms, how much of that is a one-off due to that figure we won't see again in the next quarter? there is always a number of things that we are not going to see in the next quarter that we will hear analysts asking on conference calls how things are going. we are only a couple of weeks into the quarter. for the rate business, it's going to be the fed. will togoing to be help volatility to the extent that there is uncertainty around the fed position. banks of been talking for a long time about the convergence in monetary policy with the downward bias and how that is affecting volatility and volume. we have seen some pickup and some of the activity we saw the tomer and these are related rising uncertainty. but we continue to get that's uncertainty? as we are heading into both december and next year. that banksere a risk short-term funding will increase in the short-term longer term they wi

then are deutsch bank's fears overblown? after hitting 30 years lows shares of the bank recovered today. and the biggest name in health care calling on the cloud to treat their data needs. and veeva systems, a hot one, is on the front lines. but is the company strong enough to support the surge in patients? i've got the ceo, so stick with cramer! >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? >>> by now you know my catch phrase. there's always a bull market somewhere, and i come on here every night to help you find them although admittedly that's a lot easier after a fabulous day like today. sometimes, though, you'll stumble on a puzzling bull here i'm talking about the cme group, which owns chicago mercantile exchange, or intercontinental exchange, known as ice, a futures trading player that bought the new york stock exchange three years ago, and nasdaq, whi

stock of any major bank.t clearly took a lot of wind out of our sales, cost us about 30% of our market cap. we have now clawed back almost to the level we were prior to the brexit vote. we want to deliver a total return to our shareholders that they expect. >> houston do you expect that to happen? >> once we close non-core sometime in 2017, we will revisit those issues. >> let's talk about brexit. are you hopeful banks like yourself will have access to the single eu market? >> the g-20 post the financial crisis recognized it needed to re-regulate the bankinindustry globally, and it has done a lot of that, and it has been a heavy lift by everyone since the financial crisis, but the other important thing the g-20 said was let's not re-regulate the banks and create barriers to the free flow of capital, if it's from singapore to china or the tow of capital from paris london or vice versa. i think the european union, the u.k., and the rest of the major financial centers will stay connected to this. let's let capit

deutsche bank dollar-denominated bonds, and the blue bar is the average yield on bank bonds generallyget to a gold and silver producer listed here in the u.k. which said that production ofwed to two availability equipment. since the stock fell to a 170year low in september, 5%. this year it is the third-best aftermer on the ftse 100 anglo american and glencore. i want to get to premier food. 18% ofdown as much as the most in april. september's warm u.k. whether quelled demand for products such as gravies -- i can think of vonnie thinking of her childhood now. one third less than the takeover .roposal the core that the company fended off in april. the company said its -- property has changed only after putting up a planned increase in market spending. so very british. 90 minutes into the trading day in the night of dates. let's get over to the markets desk. abigail doolittle has the latest. after yesterday's dramatic declines for u.s. stocks, today, stocks are not doing very much. the dow s&p 500 and nasdaq all trading after fluctuating gains and losses, treading water basically ahead

she wants to break up the banks.nthony: and she gets fetd questions and answered when she goes on msnbc. gary: hoo who does she surrounds herself with? charlie and sandra, thanks for joining us. tone we'll see you next week. (burke) at farmers, we've seen almost everything, so we know how to cover almost anything. even mer-mutts. (1940s aqua music) (burke) and we covered it, february third, twenty-sixteen. talk to farmers. we know a thing or two because we've seen a thing or two. ♪ we are farmers. bum-pa-dum, bum-bum-bum-bum ♪ >> the government is too big and it spends too much money. john: they cover his mistakes but ignore much of the argument. they ignore his good ideas. >> parents get a choice where their children attends school. john: the media talk about donald's and hillary's health but never talk about gary. john: they praise donald trump's

evaluation of european banks in banks in the u.k. a discount to the u.s., so there are certain issues which are kind of idiosyncratic specifics of the bank but others for the sector more generally. .he outlook for regulations if you can get yourself quite comfortable with those factors, the banks in europe could be more positive than people realize. tom: let me do a data check. i'm going to call it a quiet churn within the market, clearly looking for news. the vix does better over the last number of hours, sterling with a left. dollar-pay so stronger. this is bloomberg -- dollar-peso stronger. ♪ francine: i am francine lacqua in london, tom keene is in new york. it is time for our morning must-read. i picked out something that has gotten quite a lot of traction in the u.k. william hague writes a blistering essay saying central the whole point of their independence, that they could be brave enough to help people face reality that they are blowing up a bubble of make-believe money to avoid immediate pain, except for penalizing the poor

central bank and central banks around the world. we are going into almost our ninth year of what banks continue to call extraordinary policy. at some point, it's no longer extraordinary. there has been a push from the republican hard right to rein in the fed, if you will. i don't believe that legislation will be passed, but i believe if trump is elected, there will be members of the board would ask whether or not they would choose to serve, just as he would likely ask whether or not they would like to go. >> opec has agreed to cut production for the first time in eight years. this, according to delegate familiar with the agreement, that drops production to 32.5 million barrels per day, down by 750,000 barrels per day. this certainly is history making. >> it is. and the real country that is making history is saudi arabia. two years ago, saudi arabia instigated an opec policy that said we have to grab market share, we have to defeat shale, we should produce as much as we can. it is opec back managing the global oil market, bringing ba

we are looking to chinese banks, indian banks. we think there could be a lot there.rik: talk about that in more depth. one thing everybody seems to know about china is china is very reluctant to recognize the bad debt on its banks to begin with and subsequently to do something about t how much bad debt is there in china? what is the catalyst going to be for the chinese to make a move that creates opportunities for a firm like k.k.r.? >> great question. the official figures in china would reveal relatively low amounts of that debt. our estimates are that it could be close to $1 trillion, equivalent value in bad debts just in the bankingcies tefment then you have a shadow banking system that could be another couple hundred billion of opportunity. erik: so, goodness me. we're talking about potential for $1.2 trillion if not more in bad chinese debt. the catalyst question. what is going to force the chinese to do something about it because it would seem, based on past behavior, that if there's no need for them to recognize the bad debt and get it off the balance sheet, t

already n banks have merged. there are still too many banks.ed to get together in order to be more tpbive. baseannot reduce your cost small. are too -- here is the regular regulatory body in italy? neither inthink that italy nor in frankfurt you can pose mergers. capital requirements which we need to collect new capital will oblige banks to themselves to investors with an appealing position. will be ling position achieved only in f they get together. foley, ok here at jane the thing that will move the markets. it's currently. what is your call on euro out year? >> again, very much depends on the u.s. market. have is a low u.s. category. it's going to be very difficult euro to go down. clearly it would be more useful euro were weaker. think that's going to happen. do think the fact that the market is so ginger when it comes to banks really reflects i think themarkets deception that of policies, ects low interest rates, really are the detriment of banks and we're beginning to weigh out these side effects could gaingger than the marginal continuin

meeting something to be aware of with the realities of good banks, less good banks and ugly banks? is indeed the case. the role of the financial sector has become more important. but i want to mark this in a specific way. of interestent rates that are low or negative impacts specifically and adversely specific sectors -- insurance companies, pension systems, inking systems. now, if this environment takes place for a long time, it necessitates a new business model. and owned to clarify up. questiono, there is no that there is an environment with a negative impact on this, the most important channel to reach monetary policy, transmitting the effect to the economy. you weaken the effectiveness of monetary policy. and rather than the only game in town being monetary policy, you also weaken the other channels? coordination -- all of these are attempts to internalize differences from across the world. do you worry about a recession or the next crisis? where would it come from? crisis is come from the financial sector. when you have a vulnerable financial sector, that gets the wrong way.

. >>> the banking boom fades. shares in deutsche bank and barclays come off season highs, despite both lenders benefiting from a comeback in investment banking. >>> divided divergence. two of telecoms biggest players take a different path, telefonica cuts its payout while bt heads higher. the ceo of bt told us why. >> we need to balance the use of our cash to ensure investors get a good return, look after our pension fund, which is a significant challenge, but also invest in the future. >>> a brand boost for vw. sales at porsche and skoda help drive volkswagen to a beat in q3 with minimal impact from legal provisions. >>> good morning, everybody. it's thursday. >> good morning. >> good morning. >> lots going on today. >> lots. almost the end of the week. trading higher on most european equity markets at the moment. up a half percent, a couple of the smaller markets not quite there yet. but hanging on to gains of a half percent. chinese industrial profit growth slowing overnight. data coming through from asia. we'l

she wants to break up the banks.thony: and she gets fetd questions and answered when she goes on msnbc. gary: hoo who does she surrounds herself with? charlie and sandra, thanks for joining us. tone we'll see you next week. [phone buzzing] some things are simply impossible to ignore. the strikingly designed lexus nx turbo and hybrid. the suv that dares to go beyond utility. this is the pursuit of perfection. >> >> >> the government is too big and it spends too much money. john: they cover his mistakes but ignore much of the argument. they ignore his good ideas. >> parents get a choice where their children attends school. john: the media talk about donald's and hillary's health but never talk about gary. john: they praise donald trump's

banks.t of european sue.not a deutsche bank >> and if italian banks, if we that are theyield, higher paths. >> that's why it's so hard to to the german banks. it raises the question, who's next. its aly wanted to bail out banks. germany said no you didn't. circular problem. >> do they call an insurance company? o they call a warren buffet of germany and say you have to help us out? quoted last was friday. warren buffet usually comes in when he's the last capital piece. we're not sure this is the last capital piece. the price know what tag is until we figure out what are.legal responsibilities >> it's not just this mortgage backed settlement issue. money for example and lawnering. >> structurally for european banks, if we didn't have rates what kind of problems would that solve versus remains.that still if we didn't have negative rates in europe what problems would solving?d up >> the capital infusion from the third party? > their ability to raise capital and ability to lend. >> it probably w

if you look at the way banks work you have to divide them into the small banks and big banks.oney center bank like jpmorgan if rates go up their net interest margin will go up but so will their capital markets. i think this will change if we have a bump in december. >> one of the things that you will at management has talked about earlier today was the fact that loan growth continues. how is loan growth continuing if the economy is not really operating -- >> large company loan growth by the way. small business but no loan growth. >> is it only happening at the super high end or is it that they are deciding where they want to lend the money but they're showing loan growth? >> let's look at the small banks for a second. a lot of merger activity over the last three years. it was running 300 banks a year. this year it's 180 banks and the multiples have gone from 25, 26 times to 22 times. the other thing that's starting to happen is if you are a community bank you don't have the same loan demand that you're seeing at some of the big banks and net interest margins become really, rea

the european banks.he managing director of the european stability mechanism joins us to discuss europe's dilemma. this is bloomberg. ♪ francine: welcome back to "the pulse." i'm francine lacqua. we had some breaking news from the european central bank. let's head to the bloomberg with nejra cehic. nejra: the stoxx 600 snapping a winning streak which had been its longest in almost a year. we are down about 0.7%. just wanted to show the context. we are seeing the stoxx down after bloomberg news reported a consensus was building in the ecb to rein in qe. it is taper talk sending these jitters through the markets. industry groups on the stoxx 600, most of them down. leading the losses followed by utilities and telecoms. financials pushing higher at the moment. any prospect of higher rates does tend to have a positive impact on financial stocks. i want to show you one of the best-performing stocks on the stoxx 600. it is tesco, up about 9% after earnings beat analyst estimates and set a target to restore its

you have to resolve the italian banking situation, german banking situation, portuguese banking situationthey are idiosyncratic asset class. in places where the risk is say -- iou should don't necessarily think they've overreacted. jon: a great breakdown. rick rieder sticking with us. ♪ david: this is "bloomberg ." rick rieder is still with us. news coming out of asia, big tick down in sterling. last night, there were a couple of hurricanes. there were two happening at once. the flash crash was pretty late last night in terms of that price action. then, as stabilized overnight and then early this morning, trend down again. ofre was a fair amount volume that traded down and it is reflective of the fact that there's a lot of uncertainty triggering the rule of 50 and the uncertainty around brexit. that is pretty significant to be down here. there was not a lot of liquidity late at night. rose -- iflt market you have sterling exposure, are you selling gilts and the back of that move? we talk about a big developed market currency, that is concerning. you have those sort of moves overnight

for big banks and small banks. there is not a distinction made between big business and small businesses. so small businesses are crushed with regulation. >> could i respond? >> if you would like. >> on that specific p issue, i agree. i am fighting hard to reform dodd/frank so there is a discontinuing between the regulatory burden we put on our small banks, credit unions and others. they are getting literally swashed by the regulatory bureaucratic more r bureaucratic morass that is upon them. because i have been successful in raising support, that somehow means that i am changing the way that i advocate. the fact is, na i do have support across broad segments of the economy, across this country and here in idaho. i have thousands of contributors and supporters. >> you have thousands of contributors and support yours but matt jort of your money does come from securities and banks and quite frankly, businesses that would benefit from deregulation. >> but look at my record. the fact is na you can say that. my support

are banks too big to manage?pf is saying in testimony we knew about the problem in 2013, tried to stop it but couldn't, go ahead, david. >> exactly. there was a range of things that could have been done. you realize things that were done that shouldn't have been done, forcing banks to lend to subprime lenders, now we know, we have to say, there was a pile-on going oi don't know how anybody could have stood up to the pile-on in congress against him. liz: more on the breaking news, wells fargo ceo suddenly retiring. stay with us. 7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be. . liz: joining me now, the former democrat congressman from ohio, dennis kucinich, who was the chair of the congressional investigative committee that investigated the

and they like the mobile banking, digital banking offers that the larger banks provide. >> even thoughare part of the generation and the political campaign that rallied against the big banks. they seem to have stood for so much and everybody thinks is wrong with the state of the country. you are saying the youngest generation it is not swaying their decision about where they are opening account snz. >> there is a big gap that has never been there before between customer satisfaction and image. so the customer satisfaction of these people are a lot higher than what they think of these banks. so it's got to close one way or the other. i think the image is going to go up. >> do you think banks are the larger banks are just better able to adapt given the cost of technology and investment in the kmaudatization. what is happening big picture over the last ten years? it is huge and if you will with regulation more utility like profitability for the banks. doesn't scale just make a huge difference in terms of taking advantage of that? >> finally we have talked about big banks getting bigger to

either at the bank or investment bank working for us.hat stage we could not engage in a formal toast. >> do you have a number in your head for the amounts of the capital raising you want to come from cornerstone investors or are you open to all things? marco: we are open to things. this is a mixture of interest from core investors, from into institutional investors. we need to find out what is eventually the conversion rate of bond conversion rate going to launch in the next few weeks. seek --t to gauge as we >> what would you hope for? you have 5 billion yuan to raise. you swapt of debt equals the amount you have left to raise. what is your best ambition on this? the three legs of us are tied together, are they not? marco: the bank is looking for long-term stability. we need to make sure that the bank eventually -- >> how much of that $5 billion market would you like to see converted from that? marco it is difficult to make : decisions, to be honest. we actually receive huge interest from bondholders to entertain talks vis-a-vis the pot

no banks have been hired yet.halk this up to senior executives figuring out the art of the possible here. a full acquisition would be a very large deal, although for at&t standards, certainly not something that would be seen as too large. they bought directv not too long ago and this is in the same general ballpark, but i think they are thinking through options, and one of them is a full on acquisition. >> what type of valuations are these assets getting? six times ebitda, 10, 12? ♪ alix: welcome back to "bloomberg best." -- $3 billion u.s. shaving industry has undergone plenty of disruption in the past few years. gillette still dominates in retail sales, but online sales now account for about 10% of the market. that's one reason unilever bought dollar shave club for $1 billion a few months ago. other young companies are growing fast as the landscape shifts. one of them is the subject of this week cost small to big. >> we felt like the big brand shaving had forgotten about the customer. >> we had this vision aroun

talking about the investment bank, i talked deutsche bank numbers -- looking at the investment bank,umber. does this justify keeping the size of the investment bank? what does it say to the marketplace in terms of your strategy? >> again, our strategy is anchored on being diversified, both a consumer and wholesale bank. we are pleased with our investment banking results in the third quarter. not only did a number of our principal trading debts -- they are up 40% versus this time last year. we also gained quite a bit of market share, particularly in the united states. we feel good about our investment bank performance. it's a key part of the bank strategy. it balances a strong retail franchise in our consumer credit card business. they did very well and we are pleased with the performance. guycaroline: let's stick with te banking sector. behind me is deutsche bank, which has been seeing a deteriorating share price. it started up more than 3% higher and seems to be losing that. let's dig into the numbers we got from deutsche and speak to ne-- with their search alpha value. thank you ve

she wants to break up the banks.hony: and she gets fetd questions and answered when she goes on msnbc. gary: hoo who does she surrounds herself with? charlie and sandra, thanks for joining us. tone we'll see you next week. that's it for us tonight. thanks for being with us. [♪] >> announcer: this show has never been solely about investments. we talked about anything that affected people and their money. from fox business headquarters in new york city, the new "wall street week." anthony: welcome to "wall street week," the show of record for long-term investing. i'm carr. gary: i'm gary kaminsky.

bank think standards for save behind the eight ball with no overdraft fees so after hearing about the actions of wells fargo i met with an executive to find what information and advise to provide to the san franciscans he couldn't give me basic information including how many san franciscans were effected had they been notified how much recess stews this is unacceptable i'm outrageous on behalf of all customers but for every on bank resident to keep their mean in cash instead of a financial institution given their widespread egregious and potentially criminal action i'm 13u7bd wells fargo from the bank an san francisco program effect immediately >> (clapping.) >> and we can't wait for wells fargo to help people through this terrible experience that's why the balance the community partners offered free one-on-one coupling for anyone effected started day they can call 9006006 and speak to a qualified council to run their credit report and found out what to do next we want to thank balance for stepping up their phone call will be on the website just to be clear this is a free serve servic

anderson, deutsche bank later. , deutsche bank later.ound is maybe what is happening with the london market -- the pound is being pummeled. >> there is definitely a shift. the treat from anp that the ultimate fine for deutsche bank might come in at just over $5 billion as opposed to $14 billion gave a preview financials and to sentiment in the market. seven days ago, we came into mark and the view was, there is no backstop in terms of politics. deputy vice chancellor from germany is surprised that a model which invokes risk as your business model is complaining about the risk of the market. dying a quarter. germany is closed today. we are waiting for this opening sweep to come through. merger mania is out there, in .erms of henderson when it comes to the perspective of china, the pmi, the pricing managers index, it is standing at a two-year high. that is with stimulus last week. keep an eye on sterling. on,ess a little bit earlier we talked about a slow market -- so much in car crash in terms of the potential impact of brexit. the euro s

banks compared to european banks. here we have had the deutsche bank saga that's been rolling on for quite some time about whether or not they'll need government bail-out essentially or bail-in. how do you compare u.s. financials at the moment to ours over here? >> so sh, i think u.s. financia are healthy. they're solid from a capital earnings. i think the one area that's lagged behind, if you l bu lshy ahead of other regions is earnings. so despite a relatively light quarter for earnings, profitability is still good relative to the rest of the world. and you certainly have strong liquidity and very strong asset quality compared to other regions. >> yeah. then at the same time, we look at the yield curves out there at the moment. how much of a risk are these -- oh, i'm right here. here. there. how much of risk are these super flat yield curves to these u.s. financial institutions? >> we've been talking about a lower for longer for quite some time. i think our view is that that will persist. we might have one more rate

how important is this toward people saying i'm going to go with bank of america versus xyz bank?i hope it's critically important because we've put a lot into it. we are growing a core relationship with our customers every year. so that is a key element to it. and it's not a key element only having that. you also have to have the branches because we have 130 million customer interactions a week. 7 million of them go in the branchs so you have to have the integration. each week, 30,000 people set an appointment in the branches. what do you not want to do? you don't want to walk in a branch and say i want to get a mortgage and nobody is there to serve you. think how easy it is to run the business model comparatively by don't having people walk in to ask for a product that -- it's an integrative model, the computer, the phone, the mobile, the branches. if you didn't have any component, you wouldn't be competitive. that's why we think we continue to gain share, especially among people who value that. >> also this next generation, the generation that's going to have all the great wealt

the banking sector today is completely different than the banking sector of eight years ago.ery region by region around the world. if i start here in the u.s., the u.s. banking sector is in the best shape it has ever ever been in. hands down, no debate whatsoever you can go back to how we got there and debate it, living through those moments were horrible but they were brilliant the parks came with hugely punitive capital and we had to raise capital to get rid of the tarp, repair and raise additional capital to buy back our warrants. we ended up with so much excess capital that we just figure out how to destroy capital. how do you destroy capital? you write down everything in the world on your balance sheet and you come out with the most pristine balance sheet you have ever had in your entire life and you move forward. that was a phenomenal outcome. other parts of the world have taken a different approach. they have taken the approach that we are not going to force capital on the banks, we are going to provide cheap funding for banks and allow banks to earn their way out of t

change, bank banking on european equities down by 2/10 of 1%. the bloomberg we have gdp first look in the u.s., let's look at it right now. the green circle is the bloomberg survey, and there is what is and what was. the recent 10 year moving average is pretty moldy, going to mr. trump's talk of a 1% economy. guy: we were talking about inflation or the last -- in the last hour. blemishing what is happening with inflation in sweden. rates have come down, inflation has come up, but not enough to get us back to target. inflation is coming back in the riksbank signaling it may be willing to do more on the stimulus front. say they will not raise rates until early 2018. we are thrilled to bring you david blanche flower, but seth masters is one of the true great holistic guys we have talked to, summing in everything and one of the psalms is the surprise of deutsche bank. our michael moore with bloomberg news. was this a surprise? of ael: it was a bit surprise and it was about what was not there, which was a major increase in the -- litigation reserves.

-- banking merger in europe.-- receive a dividend -- that is the world's sickest -- second-biggest mining ompany -- >> [indiscernible] to anybody -- we should not forget that it is a long-term project to build underground -- remember the underground is 80% of the project. it would take us five years to build the info structure and seven to nine years. to be able to -- you need to be profitable. until we get to a state which is 10 years down the road, will not pay dividend to anybody. sebastian: elon musk is losing some of his biggest cheerleaders on wall street at the time. two of the companies top underwriters. he is said to be looking to raise $2 billion and a new round of risk. snapchat has begun filings for an initial public offering. that is according to people familiar. the company which changed his name to snap inc. could list as soon as march. the health of the tennis economy and the outcome of the u.s. presidential election. that is your bloomberg business flash. guy. guy: rba's green energy business sta

banks, which is at 0.95. the white line is european banks, 0.72. still underway, though, aren't you? what is going to change? antonin: as a house, we are pushing for an overweight. the underweight, we feel, is from the investor community. taking a step back and trying to onpare, one region trades book, give or take. the other is about 25% cheaper. if you go back to the financial crisis, the u.s. banks were much better at cleaning the assets, which was a difference from a european point of view. buying u.s. banks in the last few months -- that is a mix of hopes of a steeper yield curve. maybe it is velocity in the u.s. and so on. there is a race to buy u.s. banks because of the yield curves. at the positioning is dramatically underweight in europe, versus the u.s. in the case of europe, one reason we are pushing into overweight is, we feel the asset is either industry extremely underweight or underweight, and they have to go back to benchmark. it is more that it served them so well for eight years, giving -- given some of the macro drivers. the risk

when the banks were established in 1914 we had a much different banking system. today the level of concentration in our banking system is at record high levels. that means we can't think that the regional banks really represent industrial views. we need to have a what to ensure that that will be the case. >> thank you. i appreciate that testimony. the chair now recognizes himself for five minutes, and i'd like to point out next week marks the collapse of lehman brothers crash. monetary loose that was too long as significant contributor. scholars show the unique structure of banks can guard against -- tend to be more concerned about overly accommodative policy than are there politically appointed colleagues on the board of governors. while this tendty has been criticized by advocates for extending what is the greatest monetary accommodation in u.s. history, doing so will increase wages at lower income levels, research also suggests we need to do just the opposite. for example, dr. christina roamer, berkeley economics professor and first person to chair president o