respected regional banks and a community bank. i touched virtually every segment of the industry including is serving consumers,businesses, trust functions, private banking, investment services, human resources, compliance, audit, treasury, financial manage ment andoperations. this experience provides a broad base of knowledge that would be helpful and insightful if i was chosen to be the comptroller. in 2010 i decided to leave an executive position at an established financial institution because i felt southern california was in need of a hometown bank. when i approached about the idea, i knew it would be challenging and a tremendous amount of work but ultimately an achievement for myself and the company. with the assistance of many dedicated men and women of one west bank, we were able to create the largest hometown bank in southern california. i was able to grow beyond being just a mortgage company and being able to serve the needs of local businesses, families and consumers. hopefully helping build this company is something th

retail banking, corporate banking, investment banking, treasury international and islamic banking.will look at the results for first half of 2017. it has been three years since the five-year growth strategy, bringing superior customer experience. if we look at the context, went to look at the last three years. the last three years, nbo has been proven to be resilient and represents the market here in oman. it has remained intact despite challenging conditions. the bank continues to be strong. diversewe maintain a portfolio and sustained superior profitability compared to our peers. not just across the region. yousef: i will jump in here to pick up on what usaa. you areyou are saying. what does the road ahead look like in terms of expansion plan, acquisitions? what will keep that growth momentum for the bank? ahmed: actually for our key strategic priorities today, that is based on the five-year plan we put three years ago, our key strategic priorities is delivered superior customer experience. scale up from digitization. it is becoming a big part of our business. three, diversify in

a clean bank. the restructuring is over. we have generated a return on tangible equity in the bank of 7.2% our profits before tax, year over year, were up about 78% we feel good about how the bank is positioned. our strategy of being a transatlantic consumer corporate and investment bank is free of the legacy issues. we feel good about the next chapter of barclays in front of us >> not just barclays reporting today a whole host of companies have come out with figures, including these two. ubs shares falling 3%. on investor concerns about gross margins in wealth management this despite beating second quarter net profit extechtation expectations credit suisse reported a record level of assets under management during the second quarter. the swiss lender saw it's strongest inflows in six years helping it post 78% rise in net profit both banks warn, as did jes staley talking to geoff and karen later on that low levels of volatility and geopolitical concerns were weighing on market activities before we g

that is important for banks., inflationht is more associated with the view on their ability to generate returns from low growth. nejra: thank you so much. thank you again. vonnie: still ahead, no longer a greek tragedy. the country making a comeback from the debt crisis. this is bloomberg. ♪ from bloomberg world headquarters in new york, i'm vonnie quinn. nejra: and live from london we had the european close minutes away. , aece making a comeback potential return to the bond market after a three-year absence. from -- joining us with the latest we have -- we are live in athens. >> is looking likely, there have been rumors that it would be happening at the beginning of the week. at the moment, it will be next week. there was a report in the newspaper today that the government had decided to hold off and waited till the imf released the analysis. and the ratings review later in the week. the government might be waiting to get those out of the way first. hence the speculation of this week. there were reasons why the

sitting on top of those state banks is the mother bank. right. the chief bank. the central bank. the bank of the united states and this is the second bank of the united states because as you recall, from earlier in the semester there was a first bank of the united states. 1791 alexander hamilton. pushes through congress a bank of the united states. this bank a private bank with stockholders and dividends. this bank hamilton says will benefit not only financial -- private financial interests but will benefit the country, the public, how will it benefit the public, because the treasury, the u.s. treasury, will deposit money in the bank, money coming in from taxes and the treasuries, can also borrow money from the bank. this bank has a 20-year charter but it has lots of opponents. you remember, that chief opponent, thomas jefferson, hates the bank. the bank jefferson believes is an institution that imperils american liberty by elevating to power a wealthy financial elite, nonproductive elite. jefferson opposes it and jefferson comes to power in 1800, so does his party the bank of th

banks or are we looking at was a regional banks? alisa: you've got to roll out that these will be competing globally and all scales, but they will be competing in some indexes. you have credit suisse and west management and deutsche bank onh -- but very much focused key products and key business areas. tom: i could talk to you for an hour today. thank you so much, alisa martinuzzi leading our bank coverage, huge initiative as well on the italian tanks. this is without question, the most important interview of the day. dan fuss on bonds later today. ♪ ."m: "bloomberg surveillance that at theint out o's it leads in history after in inflection point at the white house, due to scaramucci's action, people might actually leave. i wanted to let our global audience know that. right now, wells fargo and their credit strategy. you wormed my heart, george. taiwan for most of bonds, what do they have to do you with a price down, yield up in my bond portfolio? for a u.s. investor, it is a technical in the market. tom: totally and inside baseball

living on top of those banks is the mother bank, the chief bank, the central bank, the bank of the united states. this is the second bank of the united states from earlier this semester. there was a first bank of the united states in 1791. alexander hamilton pushes through congress a bank of the united states. this bank -- a private bank -- with stockholders and dividends. this bank hamilton says will benefit not only financial interests, but will benefit the country, the public. how will it benefit the public? because the u.s. treasury will deposit money in the bank. money coming in from taxes in the treasury can also borrow from the bank. this bank has a 20 year charter, but it has a lot of opponents. your member the chief opponent -- thomas jefferson hates the bank. the bank, jefferson believes, is an institution that imperiled american liberty by elevating to power a wealthy financial elite. a nonproductive elite. jefferson opposes it. jefferson comes to power in 1800. the charter expires in 1811. one year later, a war it rocks with britain. the national government finds itself in tre

at the same time as other european banks are getting out of investment banking, this is a bank that gameso become france's largest lender. one of the top three trading and corporate banking players across the continent. lots to talk about in terms of bnp and the rest of the banking it let's get to the swiss banking story because ubs has reported that that the estimates. exceedingion francs, 800.3 million francs expectations. it also noted pressure on margins, stemming from low rates in switzerland and eurozone. matt miller has wrapped up an interview the ceo and here is what he had to say about the results. we had strong money for the first half of the year and usually in the u.s. we see some outflows in the second quarter for our clients come up paying taxes out of their asses and there is a big component for that. we have growth in our international businesses of 6.6% on a very high base and this in construct with the fact we have been reducing client advisory accounts. demonstrating weaken grow -- demonstrating we can grow, focusing on quality not quantity. are on know cost cuts track

bank of america. moynahan a quarter after quarter if only interest rates would benefit hugely. we are not that far up the curve on the rates are we? >> no. what we saw on the second quarter was a flattening of the curve as well. with a long and coming down. ideally banks benefit from -- bank of america and comerica had a very good margin. the business lenders have loans tied benefit the most. is whatally that happens is the fed raises the rate and the yield curve growths and the margin starts to slow down and decline. david: you mentioned loan growth -- what we know about the second quarter of bank of america for that? >> growth starts to slow down and decline. loan demand was solid and we would like to see stronger growth across the banking industry but in their consumer business which as you know, this is a strong consumer bank. we saw solid loan demand and we will see that as the economy accelerates in growth, should accelerate, bank of america and its peers will benefit from stronger loan growth.

central bank, the bank of england, or federal reserve.hrowing the bank of canada in there as well. across the board, expectations have increased on the back of the central banks. do we now have a market that may be a little bit more in line with the reality of the direction of the central banks or in the market that may be misjudged some of the central banks this week? >> no, i think the central banks will maintain what i call really dovish posture. they are concerned about rattling the markets. we have seen this pattern before where they have strong talk and weak action. i think it as a momentary reaction to the market, but i do not think this is the beginning of an upswing. jonathan: my colleagues at bloomberg pointing out we have this strange emerging paradox where inflation expectations are diminishing or rolling over. yet central banks redefining, recalibrating their reaction functions at the same time. how do we make sense of that? >> it's certainly puzzling. i have a chart that looks at the five-year forward inflation breaks even i

peter hahn is a professor of banking at the london institute of banking & finance.many things to discuss when it comes to things like hsbc. the results are better—than—expected, beating pretty modest expectations. yes, most banks have delivered a message that they could beat so the banks have generally all exceeded expectations, that is good news. we said managing expectations, didn't they set the bar pretty low?” said managing expectations, didn't they set the bar pretty low? i think they set the bar pretty low? i think they set the bar pretty low? i think they set it pretty low. there's some good news in hsbc ‘s results. its business mix is hitting more across—the—board. it was more concentrated on one business before so some concentrated on one business before so some of their weaker businesses have come back. the results also show a greater dependence. they were stating that they were going more towards asia. asia is more of the real money for aegis pc. a lot of change underway for the banks, we know it has been cutting costs, it also has to split the retail and

and the bank of england has an inflation target. it's a single mandate central-bank.his move towards desiring to return -- return interest rates to a higher level than they currently are. all been expecting the post-brexit recession shock. and more than a year later we have had the inflation. we haven't had the recession and it's only natural that central bankers should be thinking about raising rates. if it turns out to be a mistake and there is a recession they can cut them again. if i look at orthodox economics it has to do with exceptionally low real rates. how do we get back to normal rates given the risk of instabilities? how is orthodox economics going that? >> i don't think orthodox economics is going to get you there very quickly that? because we've got a bunch of things that are not orthodox. we've got very low wage inflation. sustained drope in productivity in the u.s. let alone in other countries. got very little connection between either liquidity or monetary policy settings and inflation outcomes so this isn't that orthodox. buy lottery tickets on the su

i've been on a bank board. what's important to me is, when we have inequalities, when we're talking about economic development and monetary growth, and we don't count ethnicity in race, because it's a subset. and while i appreciate your comments on page one of your testimony, when you talk about the jobless rates have decreased, but because we know there's so much disparity when we get to unemployment with people who look like me. i have to be that voice for black people and for minorities who get caught in the gap. so with that, i am very afraid, because i know when we look at the economy and growth, if 22 million people are going to lose their health care, if we're going to cut programs where people then will have to or won't have the money to pay for them, i'm nervous. now, with that said, i serve on the financial and literacy caucus it is a democrat and republican, and as we're speaking now, i'm being appointed to the congressional black caucus economic development and wealth creation task force's co-chair

banking narrative. be cautious and interpreting the bank. the headline shows risk bank come on thatbias at the same time, it is still signaling it could use further if necessary and warning about the currency strengthening. i still see a central bank that is very, very reluctant to remove that accommodation. anna: more or less reluctant than the ecb? compare and contrast the level of reluctance around removing accommodations. elsa: it is funny because the risks bank does not operate independently so to speak. and theoned the ecb governor was signaling no reason for the bank hiking rates ahead of the ecb. both central banks will be very slow in that process of removing accommodation. the riksbank is interesting because growth has been incredibly strong in recent years. a lot of market participants have been looking for a stronger swedish krona. yet it keeps underperforming. one of the reasons that we are still relatively bearish on the swedish krona in the near term is precisely because the central bank

bank.at if revenues do not meet our expectations -- the micro investment environment and europe is still very positive. >> next, you're watching bloomberg. ♪ ♪ this is bloomberg best, i am david gura. let's continue with our week's top stories. tech earnings, starting with alphabet. >> alphabet shares dipping in after-hours trading. google's parent company releasing quarter earnings which sent shares soaring then turned south. revenues came in at $26 billion, up 21%. but, aggregate costs dropped 23% from a year ago. these numbers include the effect of that $2.7 billion fine from the eu. i talked to one of its representatives who said that it is too early for our analysis of the decision and it is illegal mark -- matter. have not decided yet if they will appeal. shares were up and then down, cory. is this about traffic acquisition costs -- >> than anything else? i think so. i have warned of a big change in their business -- they will be more mobile and this time we saw it. >> we talked about

and you had all kinds of politicians always saying we must be tough on the banks, tough on the banks.u substitute the word bar r forfor banks, -- borrowe bank, what politician would say we need to be tough on borrowers? but we need to look at that period from 2010-2015. it has made credit less available. vonnie: briefly, are you maintaining the market performance with wells fargo and jpmorgan? christopher: both companies are great. banks are likely to outperform, citi one of the much more compelling values. picking ours favorite. i think the banks in general will do fine this year. vonnie: christopher kotowski, thank you for joining us. withberg will be speaking the wells fargo cfo john shrewsberry at 4:00 p.m. coming up, hbo crown jewel, game of thrones. it revved up the network streaming service. this is bloomberg. ♪ ♪ this is "bloomberg markets." i'm vonnie quinn. season seven of "game of thrones" debuts on sunday and although the cable network has spared no expense on the show, the 2-year-old streaming service , they have been scaling back on ambitions with it. we have a great sto

we have to bank, own 55% we as afirst is to devee of the banking system. it is a huge bank.t. mr. danylyk: the biggest retail bank. the business model of this bank was the biggest retail bank which had one client on the lending side. that is why we have such a problem. that is why it has to be nationalized because of the huge lending. that was the reason. huge risks so that was a reason. bankt is to develop these and we are doing everything possible. the bank is developing. it is taking a leading position on the banking sector. is tocond priority protect the state interests. weing the nationalization, need a lot of money to stabilize the bank. miss doings to the of the previous management and shareholders. -- a legalillegal bottle. we are ready for that. we will try to recoup as much as possible. guy: you talk about stabilizing the bank. putting more money in. the governmentat have their arms around it with the problem and what is going inside? are you working your way through that, that there is a possibility that further funds will be required? mr. danylyk: we have a very

been aggressively pricing from central bank to central-bank, rather it's the bank of england or federaleserve. across the board, excavations increased on the back of the central banks. do we now have a market that may be a little bit more in line with the reality of the direction of these central tanks -- central banks, this week? guest: i think the central banks will maintain dovish posture. they are concerned about rattling the markets. we have seen this pattern before where they have strong talk and week action. i think it's a military reaction to the market but it will not be a material change in rates. i think it's the beginning of an upswing. jonathan: my colleagues pointed out we have this strange emerging paradox where inflation expectations are diminishing or rolling over. yet central banks redefining, recalibrate their reaction functions. how delete make sense of that? guest: it's certainly puzzling. i have a chart that looks at the five-year forward inflation rates and in the eurozone as compared to where the bond has been trading. if you take a look at the last two weeks or

banks.he first time ever that ubs and credit suisse, the biggest rivals in european banking, report on the same day. they did seem pretty pleased so far. not crying victory yes. very clear that they have a quite a long way to go. crosscutting is under control. if you look at things he wanted to achieve, crosscutting, capital ratios, everything is on track . it just needs to be pushed further. >> long-term i am optimistic. medium-term is difficult because .here is so much uncertainty central banks are extremely hard to forecast. increasing wealth, wealth creation in the emerging markets is there to say and is driving the numbers you see. of course credit suisse start of his overall much later but they are becoming more like a wealth management unit. it just depends on what happens to the global markets unit. as we are stronger in wealth management, as we have more customers in wealth management, that will automatically rebalance become position of the bank. matt: how did the global markets un

tom: mobile banking -- bank of america, up 13%. on mobile banking as well.k doing it. john, to the worry that our viewers have of the future of labor in america -- not everyone can wear a fancy bowtie or work in silicon valley or the in a slump like erin judge? where is labor in america? john: focused on skilled people. tom: but you're the expert. what portion of america is skilled people? now aunfortunately right small portion relative to the history of what the united dates has done. technology to eliminate repetitive positions and what we are looking for now is skilled decisions requiring decision-making in a difficult and changing environment. that has meant that you have to change the education system, why kids go to college, and what they study when they are in college. bloombergif you are a user and viewer and want to follow more on bank of america and merrill lynch's earnings, live, does the blueprint president trump has for the economy create quality jobs? john: the blueprint is there. you have to put something into action. rates,g individual tax lo

whether that is the european central bank, bank of england, bank of canada in there as well.cross the board, really expectations have increased off the back of a loaded central-bank speech this week. do we now have a market more in line with the direction of the central banks? or maybe the market maybe misjudged some of the central spanks -- banks speech this week go -- week? >> no, i think the central banks are going to maintain what i call a dovish posture. i think we have seen this pattern before where they have strong talk and weak action. so i think it was a momentary reaction to the market but i don't think there will be a material change in rates. i don't think this is the beginning of an upswing. jonathan: my colleagues here at bloomberg are pointing out we have this amazing paradox at the moment. inflation expectations are either diminishing or completely rolling over, but central banks are read finding and re-caliber -- redefining and recalibrating their reaction function at the same time. >> i have on my screen here a chart which is a look at five-year inflation co

the minister of finance for the bank of italy, i think after the solution of the three troubled bankseed for additional state intervention. mark: you say it is a turning point for the industry. let's dig deeper. -- for- is it nonperforming loans. turning point when it comes to eliminating nonperforming loans? that the well, i think solution of the two banks in the monte paschi will remove something like 50 billion euros of gross, nonperforming loans. bringing down the amount, the total amount of nonperforming loans. net,ould focus on nonperforming loans. nominal value netted. this is the real exposure of the banks. signs ineing positive all,ast years, first of inflowsial -- new net is increasing, going back to precrisis levels. this is implying that the stock of nonperforming loans is decreasing. general economic situation of italy is improving. growing at a lower pace with respect to other european countries, but is growing. for thepositive also credit quality, which is improving. so, according to our estimates, operationsnsidering is a massive sales for nonperforming loans for the n

that are the custody banks. i'm interested because for mutual fund holders the cost for those banks is passed on directly to the mutual funds. i think it's an issue that should be addressed and i'm just wondering if you have a time frame in terms of how to address the increased cost even though they are holding one of the safest instruments out there in terms of their use of central bank instruments. agree with you. we have been in touch and are aware of the issues faced by the custody banks. it's one of the reasons that we are looking at the issue of the appropriate calibration of the enhanced supplementary leverage ratio for those banks. perhaps it's too high relative to risk-based capital requirements. i'm comfortable with the level of risk-based capital requirements. this is something that needs to be looked into. takenent countries have different approaches. one approach is to exempt certain items like central-bank reserves from the ratio. another alternative is to recalibrate the ratio. i can't give you a

to lead the largest bank in europe.er, but he is cut from the hsbc cloth. >> he was a banker at jpmorgan. he claims to have invented derivatives business there. he was cfo of the bank before it merged with chase. he is a banker, most recently running an insurance company. his reputation is somewhat intact still. hsbc is 152 years old. they have had 24 leaders all of , them coming from inside the bank until tucker. the fact they are looking at external candidates is not surprising in itself, but if they pick a second one for cfo and chairman it will be a big the pressure for the bank. -- departure for the bank. >> global banks preparing to move london-based operations as great britain prepares to leave the eu. today in a bloomberg scoop, we got details of deutsche bank's plans for a post-brexit financial landscape. another win for frankfurt. what are we talking about, front office or back-office or a mix? >> they said it could be a mix of the two. that is at the high end. some of this will certainly depend on how negotia

third center as the banks rally.ittle and our it is ahead of the earnings and there is the announcing of the recall and this is on a broker of trade. highcheck at this record band it shows the stock market reflecting the yellow and blue lines. with local the rally investors and the pro-business agenda. >> thank you. thate younger trump said in a interview with fox news. >> in retrospect, i would do things differently. this is before the mania and they were building it and the press. this was opposition research and there may be concrete evidence that was underreported and i wanted to hear it out. it what nowhere and that is not what the meeting was about. this intensified and spread through capitol hill. rebounded and the dollar weakened. good to see you this morning. are the latest revelations and are they noteworthy? russian collusion into the campaign? >> it gets closer to donald trump. emails and he it knowledge is them. it shows that there is a written a turn in the investigation and appears to be. what is the m

bank?at? >> i don't know. >> what? [laughter] >> i don't know! >> have you heard of it? you should, it's a federal agency dishing out corporate welfare in the crosshairs of tonight's swamp watch. amazingly, then senator barack obama, the candidate for president in 2008 called out the bank's swampy behavior. >> the export-import bank that's become little more than a fund for corporate welfare. steve: well said, senator, but then what happened after the election when it was time to reauthorize this swampy institution? >> you'll hear some critics suggest well this is just corporate welfare for big multinationals. steve: excuse me? some critics? you were one of them. wow. obama got swamped real quick. the export-import bank uses our tax dollars to provide subsidized loans and loan insurance if india wants to buy planes from boeing, exim will loan airindia money at below market interest rates. i'm not sure if american taxpayers are fronting the money for it, the defenders are claiming it exists

we are the number one investment banking nikkei with a market and theer 10% -- bank u.k.et share over 10%. we like the strategy of being a transatlantic and we will continue to invest in our investment. >> can you give us an update on the state of the investigation with the u.k. sfo looking into the markets and the u.s. doj looking into rmbs issues? what are these telling you about legal issues? are they proving to be a distraction when you're talking to investors about company? puto we definitely want to both the rmbs and the qatari issues behind us. clearly in discussions with the thatnd the doj, but the on , we really don't want to discuss the situations as they are open investigations. >> looking at your statement time you talked about another $700 million in charges for ppr. the deadline has been extended. could there be more? endsr hope is that this the reserves for ppi/ . the bank is taking close to 9 billion pounds of these reserves related to ppi issues. the government has to put an end date to the ppi claims. 700o hope that this million pound reserves will bring

so, what does that mean for banks?ell, bank stocks were a big winner when it came to the trump bump. 0ne of the best performing sectors. now the reason for the trump, the legislative agenda of president trump, is no longer looking as plausible as before. well, that has a nalysts plausible as before. well, that has analysts wondering if this will mean the gains made by banks may start to come down. chris wheeler is banking analyst at atlantic equities. what are you expecting? we will see earnings that are down quarter on quarter. but that is common, it's a seasonal thing. it will also look wea ker seasonal thing. it will also look weaker compared to one year ago because there was a big surge after the brexit folk at the end ofjune, which made last year's numbers look bad. so they won't be great numbers but they won't be bad. will they have a big impact on the share price? we have seen from the charts that they have gone up nearly one third since president trump was elected. 0r third since president trump was elected. or

to give you an example, my bank -- i've always an online banking. when the bank was bought out by a larger bank i had to sign this agreement. the agreement was there would be no trial by jury. that is taking away from the constitution. kneeling think and tested with the arbitration -- the only thing -- they are standing up for the little man. host: go ahead, jessica. guest: thank you for calling. i think that is an interesting point you make. i think proponents of this ban on arbitration would agree and say the rule does restore a right that many people did not realize they were giving up. they do not understand when they were signing or clicking the box they agreed to mandatory arbitration. until they have a dispute that requires them to go to arbitration. they don't really understand the impact of being shut out of the court. host: we're talking with jessica silver-greenberg of the new york times and formerly of the wall street journal in business week about a new mandatory arbitration rule that allows bring class-action suits and set of mandatory

boj being the only central bank to keep one dated easing, that is a great opportunity for the bank ofapan. anna: the other thing they are buying is etf's. with the booing see we've seen in global stock, a difficult is it becoming to explain the involvement of the central bank in the japanese stock market? i think the stance of bank of japan is very clear that buying thek is a part of conference of effort to raise the price. the more the bank of japan buys anything, the price should go up. we should take the stop per is -- purchases part of the company to plan for boj to keep printing notes and stock is just one of them. manus: let's go back to the dollar in come the possibility of another carry trade reemerging. if i look at the dollar weakness, is the yen risk that donald trump does not deliver ay second half of the year on fiscal plan and the dollar remains under pressure? that is the real risk, or part of the risk, isn't it? takuji: i wouldn't say that. riskarry trade could cause if it becomes excessive too fast. but the bank of japan's primary is to get things that are not above a

central bank -- to lead the u.s. central bank . manus: the rba governor says he doesn't have to follow his global peers as inflation disappoints, the currency slumps. next diesel dilemma -- >> diesel dilemma. increased scrutiny over possible dieselon with its emissions technology. ♪ anna: a very warm welcome to "bloomberg daybreak: european open." i am anna edwards. manus: i am manus cranny. a little pieces of breaking news -- little pieces of breaking news. you are watching for a little bit -- anna crowe -- anna: i am watching for orange. manus: we have numbers first of all it when it comes to fed, the numbers are rising. donald trump promises he wants to increase spending on defense by 2%, getting everybody on board. over 6 billion euros. they confirmed the 2017 target. that is the thing we have been seeing during this earnings season. 330 -- 336s for million euros. .heir orders arising they are coming in that 10.6 billion euros. anna: let's talk about what is going on in the auto space. something.orting the second quarter operat

david: we hear from deutsche bank ceo and ceos of other european banks reporting this week.ajor data out of japan and the u.s. we size up the state of the , global economy. >> i think the economy is now picking up, but if you look around the globe it is happening elsewhere, so i do not think the bank of japan can take credit for that. >> it paints a picture of an economy overall which is effectively treading water. david: it is all straight ahead on "bloomberg best." ♪ david: hello and welcome, i'm david gura. this is "bloomberg best," your weekly review of the week's most important business news analysis , and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. the week began in st. petersburg, russia where opec members and other oil producers emphasize their commitment to continue cutting imports in order to best exports in order to put a stop to the global supply glut. >> we're pretty sure that the rebalancing process may be going on at a slower pace than we earlier projected. but it is on course. it is on course

in the investment bank.n the united kingdom, lenders are in a spiral of complacency. do you recognize that at all at barclays and has that forced you to change any of your policies with regard to credit cards? jes: we are definitely focused on it. we have been in discussions with the bank of england. what we have seen is a pretty sharp increase in consumer spending since the brexit vote. that has been matched by an increase in consumer credit. per capita, consumer credit is now at a level roughly where it was in 2008. that being said, unemployment stays very low, and we're watching it. we are adjusting our underwriting standards accordingly. we want to remain a bank with one of the highest quality consumer credit loan portfolios. so, we are focused on it and we are focused on unemployment, which continues to be quite low. but i think everyone should be mindful of the levels of consumer credit, both in the u.k. and actually in the u.s. as well. ♪ ♪ >> i just want to come inside the bloomberg. this is grr, whe

but some banks that are the custody banks. i am interested because for mutual fund holders the costs for those banks has passed to the directly to the mutual funds. i'm curious. i think it should be addressed and i wonder if you have a timeframe or concept in terms of how to address the costs even though they are holding as you indicated one of the safest assets out there, instruments out there in terms of their use of central-bank instruments. >> i would agree with you, we have been in touch and are aware of the issues faced by the custody banks. it is one of the reasons we are looking at the issue of the appropriate calibration of enhanced supplementary leverage ratio for those banks, perhaps it is too i relative to the capital requirements. i'm comfortable with the level of risk-based capital requirements but this is something that needs to be looked into, different countries have taken different approaches, one approach is to exempt certain items like central-bank reserves from the ratio, another alternative is to recalibr

about saudialk to banks.e'll also talk about the applications around the region, especially with burning season around the corner. -- burning season around the corner. we will look at that and take a closer look at politics, as well, because the political conversation is not over. tracy: first, we will talk about inflation in the u.s.. it is coming in weaker than expected. the fed the rate hike plans may hit a bump after the data we saw on friday. this is bloomberg. ♪ ♪ yousef: this is "bloomberg markets: middle east." well, we can inflation data out of the u.s. has dimmed the prospect for a third interest rate hike in the fed this year. it was unchanged in june, for -- missing a forecasts. inflation is at 1.6%, below the fed target rate of 2%. yousef: the federal reserve bank of dallas, seeing a fundamental shift in the u.s. economy. businesses unable to will the pricing power. he talked to us about the phenomenon. >> there are two parts of this inflation question. at 4.4% unemployment and relatively low amo

butch a bank and credit suisse -- deutsche bank and credit suisse, there was real concern they wouldle to raise the capital needed. they raised a combined 25 billion euros. pointsber of data seemingly positive. scarlet: looking a little better. julia: european banks doing their best to raise capital. scarlet: the market close is next. it is an early close today before the fourth of july holiday. the doubt earlier reaching a record high. the nasdaq lower for the first time in six days. this is bloomberg. ♪ . . ♪ u.s.hat'd you miss?" rally, and tech shares are slightly lower. i'm junior gently. scarlet: i'm scarlet fu. joe weisenthal is off. to -- we wantking to welcome you to our coverage, we are early ahead of the july 4 holiday. scarlet: it's a half day of trading. the short trading session, where we have the dow making a record high during intraday trading by coming off its best levels. at the close coming in by quite a bit here for the s&p 500, the dow and the nasdaq. the nasdaq off of .5%, the laggard. it's now lower for the fifth time in six days, i'll be at on pretty thin walli

bank.that if revenues do not meet our expectations -- the -- there is good and bad. the micro investment environment and europe is still very positive. >> this is bloomberg. ♪ ♪ david: this is "bloomberg best, " i am david gura. let's continue with our week's top stories. tech earnings, starting with alphabet. >> alphabet shares dipping in after-hours trading. google's parent company releasing second-quarter earnings which initially sent shares soaring, then turned south. revenue for the search giant came in at $26 billion, up 21%. year-over-year, but aggregate costs dropped 23% from a year ago. these numbers include the effect of that $2.7 billion fine from the european competition commission. i spoke to the cfo about the fine and she told me, it is so early for our analysis of the decision and it is illegal mark -- and they haven't decided if they will appeal. shares were up and then down, cory. why did that happen? >> this is more about traffic acquisition cost. >> i think so. i have war

deutsche bank responding to brexit by preparing to move large amounts of trading and investment bankingondon to frankfurt. probably will be implement and over the next 18 months and the plan would be reviewed if the brexit scenario changes. deutsche bank chief executive expects to post a profit this year. in an interview with a german newspaper, he said the bank would be in much better shape if it had done six years ago what it did in the last couple of years and rejected rumors he will stay at deutsche bank for only a short time. volvo's in 2019, all of new model will have an elected motor. -- new models will have an electric motor. they say the policy reflects the wishes of customers. that is related bloomberg business flash. text stockslobal face off against china. this is bloomberg. ♪ ♪ time for the global battle of the chart where we look at some of the most telling charts of the day. access these charts by running the function teacher at the bottom of your screen. starting things is joe. >> we all know that tech has been selling off. big stocks leading the way of are now fading --

bank. also wanted to mention what is going on in the dollar, because there has been a little more volatility on a relative basis. the bank remind you, for international settlements said earlier this year, that the dollar was the new risk proxy. the vix wasn't capturing it. if you look at your today, the dollar has been falling even as the vix has been muted. the dollar seems to be reacting more to the failure to get inlth care reform passed washington, falling more the stock averages here in the united states. that giving a boost to crude oil as well as gold. i love that dollar chart, the dollar indeed at him 11 month low. there about 90 minutes to close of equity trading. if we look at equities, european stocks down for the first day in five. euro stocks, 50 futures down -- vonnie: let's go to washington. sen. mcconnell: we understood it would not come quickly, but we knew it was the right thing to do, so we pushed forward anyway. i believe we must continue to push forward now. i regret th

. -- ventiaetian banks.r. mustier: the solution for the venetian banks was a major turning point for the country. it is good the solution was found. i just want to note that, since the veneittian bank rescues was announced -- ourdoes not change i trie strategy. our plan is based on consumption and that is what we are going to do in italy or in venice. francine: how to respond to critics that you say -- that say the bes rescue plan puts the banking union dead in the water? mr. mustier: i do not think it does. it is very important to look at the letter and spirit of the law. tian banks had an original systemic problem, which could've been much worse. you have to look at the alternative. and the solution found by the government is a very good solution and a very good -- from time to time, you need to take pain and take it under two conditions. it does not mean that nothing happens but you have restructuring. and then competition is still going on. i think these two conditions are fully met. francine: we talked

the bank owns that money you do not own that money that's the charter of the bank if you have a private key to ten million dollars a big going you own it nobody else owns it it's your ten million dollars your sovereign over that ten million dollars for the first time in history in a frictionless way you can spend it just like any other cash money in any of the world so why would this one generation not just embrace this new paradigm and say to the establishment go drop dead you know. the white house drop dead millennial to the new world order drop dead why not. well you asked some very compelling questions but ultimately you know what allows you sings that happen you know is a government i mean if we eliminate government around us what are we going to have . in census in other words i will tell is derived as a means to organize society but its nation state goes back to the greek polis gives us politics and it's had a good run twenty seven hundred years or so but its days are done at the new world of crypto coins alternative koren see the bitcoin allow for code into the chain to put in t

private banks go out and lend two and three times on those bonds to their banking clients.n you have increased borrowing and lower rating, these things need to wind down. if they do, that means there will be pressure on those bonds. we haven't seen that happen yet. the move has been very limited. that is my fear today, the hidden damage could be on the bonds. >> i want to follow up on that because it has been resilient because the demand is still very high. but moody's basically cutting it's outlook to negative. could that be the trigger point? >> it could be a trigger point together if we get some negative feedback from the meeting in egypt taking place today in the reply of the four countries. if they see the reply as negative and escalate, you are going to see a speeding up of the negative effect of the banks. a lot of gcc banks hold qatari paper. they have haven't started aggressively selling the paper. but if they do, you will see a bigger drop there, which will have a bad connotation. we could see a faster negative move on the short term. we worry about the contagion

those banks will be regulated. they will be regulated by the primary regulator and they will be regulated properly. >> my time is expired and i yield five minutes to the ranking member. >> thank you. secretary mnuchin, i want to make sure we're operating here with the same understanding. even though you are not sworn in, do you realize you're under oath? >> i do, thank you. >> thank you very much. are you familiar with the 20-- may 23rd letter i sent to you along with several of my democratic colleagues on this committee? >> yes, i am. >> do you understand that this committee not only has jurisdiction, but a responsibility to oversee the activities of the financial crimes enforcement network? >> yes. >> given that the treasury maintains these types of records and given your department's statements that the agency takes responsiveness to congressional requests very seriously, and is committed to providing useful and appropriate responses to requests from congressional members, is there some reason why i did not get