swiss banks in future it says only the national bank should be allowed to create money not private banks anymore the initiative is fighting for fully backed money and an end to the privilege of big banks to generate an ectopic money at the push of a button. that you have i not having or used to be city treasurer in st gallen it was then he understood that we can't carry on with limitless loans and debts. ninety ninety percent of all our money is just numbers on a computer in a bank somewhere and the banks make this money that's what we find worrying and that's what we want to change. the all. great things have small beginnings. but members of the initiative asked trucking accord with many passes by. they distrust the financial system. and of the major banks are creating a spiral of loans and debt with them money creation. you know it's been in fine form a bank. now retired i can't say that with pride any more that casinos no. go lobby for me his son is beat up on paper it's way up my alley put up for knowledge the manipulation happens everywhere but i saw for a. way in the future generat

swiss banks in future it says only the national bank should be allowed to create money not private banks anymore the initiative is fighting for pulling back money and an end to the privilege of big banks to generate and tronic money at the push of a button. will kill you the crying out having a used to be city treasurer in st gala it was then he understood that we can't carry on with limitless loans and debts. ninety ninety percent of all our money is just numbers on a computer in a bank somewhere and the banks make this money that's what we find worrying and that's what we want to change. the all. great things have small beginnings. but members of the initiative a striking a chord with many passes by. they distrust the financial system. and of the. major banks are creating a spiral of loans and debt with them money creation. you know it's been in final form a bank has now retired i can't say that with pride anymore the casinos know my view i think a lot of the for me shudder speed on paper is the up money body up finale and the manipulation happens everywhere but i offer a. way in the f

banks. it is also plausible it could produce healthy competition. the risk of excessive would be mitigated by making any new form of central bank money more like cash and less like deposits. thank you. i'll be happy to answer any questions. >> thank you. dr. norbert michelle, your now recognized for five minutes. >> thank you. the views i express today are my own. they should not be construed as representing any official position of the heritage foundation. crypto currency has rapidly expanded since the introduction of bitcoin in 2008 and underlying technology, distributed database that allows digital assets to be transferred without a third party intermediary holds the potential to transform the financial industry. this innovation should be fostered, not smothered. my remarks today will provide four specific points relating to the use of crypto currencies, cash and other alternative forms of money. electronic means of payment has become more widespread as technology has changed. paper curre

access to central bank money could distant immediate banks, but it is -- this intermediate banks, butmediate it could also foster competition. d byrisk could be lessene making it more like cash, less like bank deposits. thank you. >> dr. norbert michel, you are now recognized for five minutes. >> chairman, members of the committee, thank you for the opportunity to testify today. my name is norbert michel, director of the center for data analysis at the heritage foundation. the views i express today are my own.they should not be construed as representing any official position of the heritage foundation. cryptocurrencies have rapidly expanded since the introduction of bitcoin in 2008, and their underlying technology, a distributed database that allows digital assets to be transferred without a third-party intermediary, holds the potential to transform the financial industry. this innovation should be fostered, not smothered. my remarks today will provide four specific points related to the use of crypto currency, cash and other alternative forms of money. first, electronic means of payment hav

years in the bank she. must attend she did an amazing job wrote one hundred sixty page report. was then fired by the bank was then absolutely abused and or five years they have absolutely destroyed. she deserves all the credit for it the bank the government the regulator. you know we have the support for five years it's been kept secret police to put a copy and each and seize of a core piece but it's never commit the public domain to the victims of never seen so so r.b.s. in their option the group whereas now we know better bol and torching and crashing blowing apart thirty thousand up to thirty thousand british businesses depth to seize those assets it's part of a orchestrate it smash and grab fine. natural terrorism avenues that were in a while but that is exactly what it is so now you've got the smoking gun here well the thing was that they regulate to spin investigating r.p.s. geology since two thousand and thirteen when i was last on the show and they finished that a port nearly two years ago and that

the banks. and they're not ready to sell the banks. but i don't hear a lot of glowing commentary about the banks. it's a different story if you're not in the stocks yet. >> look -- >> you're saying it's not. >> the banks have underperformed the last few months. that's coincided with the flatter yield curve. algorithms kick in old perceptions die hard, but 28% yield growth if you strip out the tax benefits, it's still double digit eps growth we get a run, we'll sell we think that would be a mistake too. >> particularly with citi, which you say is your priority stock of the whole group sdwr citigroup stop, they're buying back their stock after they report their earnings last year, they bought back stock at a pretty aggressive pace in the second half of the year never before have we seen this amount of buybacks and cap return at a stock trading close to tangible book value i think this is unprecedented. >> let's talk about some of the outperforms. you have one on goldman sachs and only a market per

bank.they require banks to manage risks better than before and ensure they have sufficient liquidity to stay afloat. fund crucially to boost their capital reserves five. to see why this is so important take a look at this very simplified example of a bank's balance sheet on one side is the money the institution has lent if all goes to plan the bank gets that money back plus interest these loans have to be backed up by sufficient capital this could comprise deposits such as personal savings accounts or bonds but technically neither belong to the bank after all customers can withdraw their cash anytime they want and when bonds depreciate in value banks write that off. the bank's own capital on the other hand includes things like profits it's previously made so what happens during a financial crisis if companies don't pay back their loans the bank loses capital it eats the loss. if the bank has enough capital reserves it remains stable by the way before the financial crisis the reserve ratio o

bank of the west.rst republic had pulled permits in the spring of 2016 for interior tenant improvements and ground-floor exterior storefront modifications. however, this permit and the subsequent permit referral have characterized the use of a restaurant that which would be principally permitted. as the employee cafÉ is not open to the public however, it is not a retail use in the same way a restaurant would be. consistent with how the department has reviewed other employer cafeterias, these uses are considered to be access rate nonretail sales and service uses. the conditional use authorization today is therefore to abate the active enforcement violation and legalize the activity. during review of this project, staff is received one communication from the public regarding the proposal in which there were concerns about the conversion of the space to private use and how this exacerbates safety and lighting concerns around market street and around downtown generally. commissioners scent via e-mail this

looking at the landscape keep one distinction in mind between the central bank that could use the bank with technology and crypto currency with no backing behind them like u.s. dollar. moving from digital forms that is a legitimate argument how to use that activity in the shadow economy with that illicit activity or to make monetary policy more efficient even where the fed cannot use interest-rate policy anymore but all of us have what is fast becoming technology lee is a -- feasible what this what was suggested this would make that voluntary policy implementation a lot easier but you think in a broader sense money is created by the central bank but also by commercial banks this is where there is a serious implication in the economy because has new financial technologies more broadly the non-bank financial intermediaries have questions that remain what will the banks play because those are the institutions that they are responsible for creating deposits and a very important part of many that other aspect but the federal reserve digital currency what it does to the payment system but it

bank of america recommends shorting after the social media stocks flop. central-bank bonanza. in japan, the u.s., india, and japan meet this week with markets expecting hikes from the r.b.i. and the boe. good morning everybody and happy monday. breaking news from the boj. its thirdnducting fixed rate operation this month. that brings it up to seventh the start of yield curve control. we will keep an eye on that and give you the reaction. we have seen the 10 year jgb yield edging higher above 0.1%. also, numbers from heineken. we are deep into earnings season here in europe as well as the u.s.. first half adjusted operating profit coming in at 1.7 5 billion euros for heineken. it's for your views updated. first half organic revenue of 5.6%. the company compiled estimate was up 4.6%. that seems to be a beat. the interim dividend per share coming in at 59 euros. -- revenue growth is expected to continue. those numbers coming through from heineken. we did get that headline from the boj. the 10 year jgb yield actually not moving a lot on that. we can see maybe if we have got any re

we're taking a look at banks, discussing bank of america and deutsche bank. but i wanted to point out, the two day chart of jp morgan, what happened on friday. they had stellar numbers, but the stock pretty much went nowhere. what do you make of that? what does it tell us about earnings season? >> it is all about loan portfolios and loan growth, as allison touched on this. what people really want to see over the long term, is how these banks are growing their business. we are not seeing it show up in their loan portfolios or on the deposits side. so the question is, how are they profiting going forward? jp morgan is probably the best of the bunch in terms of their performance so far. and you are seeing that they are not even getting a pop out of this. the bank of america numbers coming in this morning are a mixed bag, but there are falling in mortgage lending, but also investment banking. they were ranked sixth among the big banks, and they are not making any progress there, so where's the growth going to come from. alix: that is a good point. marty, that was

what is the piggy bank for the bank of japan?n they create money, the answer is yes. tom: why can they not create their way out of this problem? kim: it is remarkably difficult because of their own past behavior. 20 years ago, the bank of japan allowed japan to fall into deflation. it has stayed that way for almost 20 years. people in the japanese economy expect prices to be stable or falling. raising those inflation expectations is difficult to do. they are trying very hard to get there. overall, you live better. as the economyn no one wants to look like. over and over in europe, we cannot end up like japan. even if there is an aging population, people live well. kim: the japanese economy is growing again. bank of japan has brought about an and to deflation. it is a really good,. they just have not reached the goal -- a really good accomplishment. they have not reached the goal they set, namely 2% growth in the price level every year. they have not got there. they will probably not get there in the next year or two. they have sa

bank. it's manager. says it's a mutually beneficial arrangement of course he could those are the sort of synergies that can form in the heart. of. the biggest advantage is definitely the proximity you can skip down the stairs and meet a business partner for a coffee that makes things very easy we are very busy days but can use those five minutes to swap notes had. done with them on our side. once a month as the so-called lottery lunch to encourage networking lots are drawn to decide who each with whom. lover likes to take part it's a good way of getting to know new people he only started work here six months ago as well as organizing the event the hope operators also pick up the tab. this time denish lover meets employees of a firm that enables you to switch bank accounts online and a company that develops financial planning software. as a sitter. this is a very fast moving sector of the whole start up business many people change their jobs within their companies very quickly but also more universally an

and all the other banks and many of the other banks at least in the united kingdom in the certainly the financial system itself were bailed out by the inflation tax caused by the quantitative easing so they subpoenaed peaceful aides released that report to the public and lloyd said well well we can't do that because of confidential confidentiality of our clients and our customers and things like this well neil mitchell had the report and he released it in the matter of national interest. a lot of you know the attitudes are the consumer in the banking sector in the u.k. straight them like mushrooms you feed them essentially feces and you keep them in the dark and feed them dog poop essentially that's the attitude that the regulators number ten downing street everyone who has any oversight capacity whatsoever for the u.k. banking industry treat them all like mushrooms now we of course were reporting on this in real time we informed the british public about the frauds that were going on the massive fraud oh my little camera seems to have become flacid well put them over there first so

banks.ejra: brought crossing networks are now outlawed under mifid ii, but some of the features such as providing electronic liquidity through the systematic internalizer platforms. nejra: what impact has that had on the research unbundling? rob: remember, pre-mifid ii, a manager could pay for the execution research bill through the trading process. they could buy all types of trading research through this one channel of trading. now, there is a clear policy that these two should not be combined. what the policy wants to make happen, is that there be two separate purchasing positions. of course, now what we have seen is the fee rate for trading has now fallen, because there is no research component. the are some firms who are still essentially admitting funds to pay for research, -- debiting funds, which is still allowed, but many of us believe that the a lot of money explicitly being spent on research has fallen significantly, and again, that was one of the policy goals of brussels through

at deutscheyou look bank. you don't own any deutsche bank.uld it take for you to go in and buy some? jpmorganports about looking to buy some, would that make you take a second look at the bank? david: not really. there are a couple of problems with deutsche bank from our viewpoint. we need better transparency financials. so many of their profits from the global market business are not so strong. they have a widespread of global markets businesses, but there are other strong players, credit suisse, ubs, morgan stanley. in their home baking markets, in germany, it is very difficult for companies to make money in retail banking. their core business should be should beeir core retail banking, and they cannot make money there. nobody can make money in germany's retail banking. this?ne: what should, look for businesses, and we know quite its release is -- credit suisse is growing, a reformulated global markets business trading at 7.5 to eight times normal earnings. why look at deutsche bank that is opaque when we can look at something like credit s

they were banked by the loans in investments in capital of issuing bank. the dominant historical trend in money has been to create evermore central bank. what create more competition and currency. in the famous economist. i do get might be a good idea but i don't think it will happen. i believe it's easier to imagine. that is towards even a greater monopoly by the central bank through digital money. mr. foster make the point is not only our own central bank but other powerful central banks we might think about in this context.. the general public. in addition to carrying around its paper currency in the appeal of this idea to central banksar as a natural. it would greatly increase their size, their role in their power. there is not much singing in the way. with all private banks. that's where tried to develop out of. could a federal reserve digital deposit account system grab half of them might not. it would be $6 trillion which would ask that the balance sheet to $10 trillion.an it's to remember that if you had deposits on one side. if something else on t

we have seen record bank profits some of which we reported here on the program earlier in the week at the same time we see continuing calls for relaxing regulation in the financial sector and even things like stress tests conducted by the federal reserve which are meant to guard against another government big bank bailout here discusses the former banker herself she's also the author of collusion how central bankers rid the world nomi prins know me thank you for being with us again we sure appreciate it the big banks have never made more money than right now does that surprise you. well now they've had ten years of being subsidized by the federal reserve by the policies that have allowed them to mass a lot of extra capital the quantitative easing policies that even though they have tapered off still have amassed a multi-trillion dollar book of assets from the banks to the fed over the last ten years and as a result they've been able to buy their own stock with the blessing of the fed pay dividends to shareholders to also buy their own stock and to invest in complex securities and acti

in the banking. banking sector is full of people predicting the doomsday scenarios the next in this business you learn to be very confident and they want to put forward a clear standpoint to state your mind. in the beginning you meet people and think oh right we're on the brink of a new crisis if they were two weeks later you meet the same people and they suddenly have a completely different take on what's happening which they just as confident about . this time yesterday was there be another crisis not in the form we expect after the last one we were determined to reduce debt levels but that's not really what's happened we did build breaks into the system but i wouldn't be surprised that the system didn't break down for another reason something no one realized this is a problem until it all blows up. well we'll find out soon enough for now the financial crisis is history but the ripple effects can still be felt countries like greece suffer while repaying the debt accumulated during the crisis intern

tom: we are going to go to the bank of japan, the fed and then the bank of england. friday? tell us how we want to feel good come friday. >> i think what you are likely to see tomorrow with the bank of japan is subtle signals that there will be i further assessment of policy, and quantitative easing policy. the bank of england though, i think they will be executing a policy error in putting rates up. i think there are missing the trick here, which is that the u.k. economy is going through a structural change, brexit, and not factoring that into their forecast, or their implicit assumption that the neutral rate 1.5%.e somewhere around i would say the neutral rate is pretty closer to .8%. francine: yes, and the boe is set to give a forecast, guide us that.t comes to over all, central banks in the u.s., japan, u.k., brazil and india all meeting this week. on the part of the boe, how much do you worry about the boj? we saw the news in the? tenure today, what does that mean for governor kuroda? gilles: i think it is showing the most significant thing, the market move is s

areas of investment banking there is a clear weakness despite having said that, deutsche bank today is saying they want to be one of the big investment banks out there so there's a lot of room for improvement in that unit in order to sort of close the cap towards their competitors. that's one big area. the other big area is their private and client business. because here also they need to improve their earnings otherwise they need to cut costs even further so it's like a spiral they're caught in. and the answer to, like, the perfect storm deutsche bank was facing is first to cut costs credibly, and that he's doing very well. he's delivering on what he's promising. now the revenue line needs to get better, and the net revenue line for the second quarter, which is better than expected, needs to improve as well then the bank should be on good track. investors do still have a lot of concern and that is, of course, reflected in the low share price. even the shares now having popped last week, they're so much below where they were some years ago that many people say, listen, why should we

we have seen record bank profits some of which we reported here on the program earlier in the week at the same time we see continuing calls for relaxing regulation in the financial sector and even things like stress tests conducted by the federal reserve which are meant to guard against another government big bank bailout and here discusses the former banker herself she's also the author of collusion how central bankers rid the world nomi prins know me thank you for being with us again we sure appreciate it the big banks have never made more money than right now does that surprise you. well know they've had ten years of being subsidized by the federal reserve by the policies that have allowed them to mass a lot of extra capital the quantitative easing policies that even though they have tapered off still have amassed a multi-trillion dollar book of assets from the banks to the fed over the last ten years and as a result they've been able to buy their own stock with the blessing of the fed pay dividends to shareholders to buy their own stock and to invest in complex securities and acti

deutsche bank is a global bank.ant internationally successful, you need to have a meaningful location in the u.s. and we stay there. matt: how has the business there been affected? i think of major issues out of the u.s.. one, the tax reform moves president trump has put through and the other is trade concerns that have developed. policies -- have president trump's policies been a headwind or tailwind for you? christian: long-term, to be honest, on the tax reform, it hit us in 2017. that was the reason from a pretax profit, we turned into a net loss but over time, that will be positive for us. lower tax rates, and hence, it doesn't impact our day-to-day business. on the trade side, that is actually something which, in particular hits the underlying economy. i am still of the expectation we will find an agreement and the politicians will find agreement on the tariffs side, which is mutually beneficial for the economy. that would be good for deutsche bank, but has not impacted our business. matt: jean-claude juncker h

, banks that beaten to your one ratios and you get banks that is north of 10% and banks that are notependent on trading at the. nejra: is it positive generally knee-jerk plant in the u.s.? in the u.s., yes. we like the west bank state of we think they are important and researcher in and a strong position. in europe, there is work to do. the last few days, i mean, we have had some pretty mixed signals. i think the european banks have a lot more work to do to sort out the balance sheet and cut costs. nejra: looking at the earnings season, is it an in bull market inequities? jullian: i think the market is coming to terms with the fact that assets very early on, u.s. earnings probably, this quarter will be the best the season. but i don't see a massive shakeout in markets. but i think markets will adjust but outthink investors will be too concerned. the adjustment, a meaningful correction or a little bit of volatility? jullian: a little bit of volatility but a little bit of downside and i think people will move on and frozen rope remain reasonable into 2019 as soon as donald trump will p

banks and the yield curve? what about chinese banks?g they can keep rolling money through the economy but people doubt that can work now. bill: let's start with american banks. starting in 2009, the american banks have had their problems, cleaned up their act raising capital, writing off bad loans which did not happen in europe, which is one of the reasons the u.s. banks are in a better shape in general than a number of european banks without getting into names. on the case of asia, i think there are problems with the smaller midsize banks in china, but the big state-owned banks have built up capital. the real question there is how much in the way of shadow banking loans are on their books? this is part of the famous reform which i think is necessary and which they were concerned about. stay with us. the global advisor president and ceo stealing -- staying with us good luck more to talk about, but getting this line crossing the bloomberg concerning what we have been reporting about the china tower ipo, eight dollars hong kong -- $8.6 bi

banks.more volatile market were a boon for ubs's investment bank, helping beat expectations, but that contrasted with the wealth plans unit which posted net yield money outflows and missed profit estimates. >> this quarter had some seasonality effect. the tax outflows in the u.s. were expected. we had one-off outflows from corporate transferred stock option plan, which is an interesting business, but low margin. we had almost no effect on leverage, on lending, so clients are very cautious. we also had a very good signal of good momentum for financial manager was a threefold compared to last year. outside the u.s., we had almost 6 billion net new money. overall, i am still positive about our developments and we don't look at net new money on a quarter to quarter basis. i am confident the rest of the year will be ok. >> switzerland's third largest wealth manager has boosted net new money in the first half, in line with the company's target. >> where are you finding these bankers? which is the

up trends but all in all the banks have not been performing last earning season the banks have gapped up and sell on the earnings even though the earnings were good a lot of the reporting good but then they fell they sold off that's not what you want to see what you want to see on friday morning a lot of the banks report the big ones j.p. morgan chase wells fargo citi bank the big ones report on friday morning what you want to see is good a good report with a strong move up in the premarket and then you know you need these charts these banks to rally rally on the day but the problem is because of anything that's happening in the overall market right now we're tyrus i'm not sure if we see a negative reaction carry through from today today's wednesday to march thursday friday morning the banks report if this selloff continues from today into the end of the week i don't even know if the banks are going to do it in other words if we're going to lift the market really up and if we didn't have this type of thing going on and the banks didn't report that it might lift the overall market but

bank of england, bank of japan, reporting numbers. we have to get through the tech stock story.ascinating friday as we saw the fang selloff. the nasdaq for the brunt of it. -- bore the bronze of it. borea lower -- the nasdaq the brunt of it. canada lower. the chinese market started ok this morning, but has faded. the chinese currency continues to weaken. we see this as an interesting parameter to the global trade story. it is fascinating to watch what is happening, the relationship between the global trade, the global trade story, the war, all right -- all well represented. the boj will be the big story tomorrow. this morning, commodities are a little lower your -- lower. let's get a first word news update. charles koch has voiced concerns that donald trump's actions on trade and tariffs put america's booming economy address a recession. protectionism at any level is very detrimental. at the same time, the u.s. treasury secretary says the country's well on the path for four or five years of sustained annual growth of 3%. rosy outlook is at odds with many economists and the fed.

guy: is there a place for deutsche bank in investment banking?nion, deutsche has to stay in investment banking, but in a different way. they have to focused on certain niche and markets where they have high growth where they can generate a high returns, they have to scale back other activities. the big issue for them is if you scale back of activities, it interrelates with your core business. have to make wise decisions that you shrink the business in a carefully. primarily, and my understanding, they have to reduce the u.s. and a have to focus on europe, partially in asia where they are pretty strong. faithoes the market has a in christian? is there a place that he can do what is necessary at deutsche bank? at the moment, my sense talking to investors that that fate is not that well-founded. what are the milestones he needs to achieve to generate that faith? >> execution, execution execution. to keep it simple. he has to show that he can cut costs and has cut costs in this efficient way. second step is you have to think about the businesses in i

and you know in india the banks come along and state. the banks are no longer allowed to work with crypto currency exchanges so how does an exchange i mean they're going to react like that well they say well thank god we don't have a banking license let's create this create something centralised all the gee let's look at different opportunities well let's look at the cash to create a market is the banks on allowed to participate regulations a safe thing that we can participate now the banks can't compete with us and so a lot of these announcements that you see all of them interpreted as negative but actually have very pulled the can have positive results when the in this industry i'm in bill and so it's just for the environment all right i saw it when we got a cutter up there but a fantastic message just work around it the entrepreneurs in crypto are the best and the fear of money is in retreat simon dixon back to bring on the guys report thank you matt. well that's going to for this edition of the guys report with me max geyser station

decision from the bank of japan.sday, the federal reserve making its decision on monetary policy. thursday, it is the bank of england's turn. on friday, job day in the united states. payroll data for the month of july. who saw august coming? still with me are my guests, marilyn watson from blackrock, jack flaherty from gam, and victoria fernandez. marilyn, we have you from london so let's make the most of it. will we get a hike from the bank of england? marilyn: it is pretty much priced in by the market anyway. i do think we will see a hike. i think when you look at inflation, it is still above target. actually, economic data, growth we think is stabilizing around 4.4% quarter on quarter. the labor market is still pretty tight in the u.k. i think we saw the shift in that direction with the last npc decision, where we saw a 6-3 vote. i think we could definitely see a hike. jonathan: the bank of england has been criticized many times, and in many people's opinions, quite justifiably around the communication of interest

the bank of japan announces its decision tomorrow. thursday, the bank of england expected to hike rates. central banks in brazil and india hold decisions this week. joining us is stephanie flanders, senior executive editor for bloomberg economics. mark carney is the cover story for the latest bloomberg markets magazine parade let's get into that story because at said he wask carney spending half his time on brexit and said this "let's be clear, it takes 50% of my time. " he spent a fair time in contingency planning, but now it crowds out other things. he mentioned it because the issues are important, there is a responsibility to manage the downside. howdy they continue to do this -- how do they continue to do this when they don't have a plan for part two, let alone part one. stephanie: they have said repeatedly we are hoping to have clarity on what this post situation will be once britain tradeft and has a new relationship that everyone is equally in the dark. i was struck talking to governor carney that he admitted it was taking at l

bank of america leads the banking industry in fines.ty of mortgage abuses, consumer protection operations, price fixing and fraud and yet we continue to bank with them. they gamble with other people's mind and their executives rob us blind. brian moynihan took home $21.8 million in 2017. 250 times the wages of his employees. >> as a result, you've got a 27 billion-dollar class action lawsuit filed. why is continued construction and announcements in the public on the news, talking about new housing being built at treasure island, when you have a radioactive material all over the place? where a black skin coloured female testified how to up your friends died and two more people died in the same building complex where the soil is located. by the statement response packet is also evident and it explained 35 people have died out there from a radio active contamination. one black skin coloured mail came to your office and verified how he had talked with radioactive surgeries on his stomach or stomach and came to you said that you slammed the

coming up, looking at banking, american banking. kbw. ♪ tom: this morning, the dollar weaker, yields higher. there is a fed meeting in nine days. in this hour, john silvia of wells fargo. just before midnight, president trump said that iran will suffer consequences the likes of which few throughout history have ever suffered before. no word on their response from beijing, moscow, general mattis at the pentagon. is seriouslyhionne ill. can the italians continue? good morning everyone. i am tom keene with francine lacqua in london. this is a huge cultural change for the family. they had a crisis meeting over on saturday and that is all anyone was talking about. this was a man who was considered a turnaround, who was always going to step down in 2019 but he was meant to stay on as chairman of ferrari and now you have a british person as head of fiat chrysler who does not speak italian and has very big shoes to fill. so. 29% ownership or it is really an amazing story for the family and for all of italy as well. your monday "first word n

>> our coverage of chinese banks are limited to the largest state and joint stock banks.must have heard of that. oure have written in research that the weakest link are the smaller entities, because lacking a deposit franchise, they tend to be reliant on market funding and aggressive in terms of shadow activity. for most of the commercial banks, and most cases the size of the investment securities book would be just as large, if not larger, then the large banks. rishaad: there are inherent dangers, correct? bankstime you have excessively reliant on deposit funding and you have volatile market conditions such as right now, that introduces more volatility into earnings. , these banks have flight balance sheets. rishaad: what about the big banks you do cover? in the likely change to their credit ratings from fitch? >> fitch has upgraded ratings for three state banks earlier china,ar, icbc, bank of but the upgrades are based on the intrinsic improvement in their financial profile and indicates the level of increasing geographic diversification. we don't think the deregulatory

is germany germany is abundance bank is on this bank is the euro and the arrow cyprian central bank is germany and the bundle spank and they can print lots of money and cover lots if they will the nine debt was high now it's low you know they are there under leverage as compared to the federal reserve bank of new york or the bank of japan the e.c.b. is relatively on leveraged no i don't i don't agree the germans and the french are paying for everything they've had a defacto union in fiscal year we're going to spend that founded on the e.c.b. by now there are five fifteen trillion euros and they will what are your determined banks and the french banks and the dutch or all ultimately underpinning us or one of the. bank itself the rumor is that it's a basket case that is going to explode going to go the way the lehman brothers your thoughts a slow death painful dwindling death because of this is model that doesn't make sense anymore but in the model well it was london based capital markets and investment banking with this time. a rump bank back in germany they don't have a banking busines

alix: the big week for central banks kicking things off with the bank of japan.gayeski and stephanie flanders. her recent interview with mark carney is the cover story for bloomberg markets magazine. we will talk about some of that interview. troy, you can see what's happened to the 10 year yield over in japan. 1/10 of 1% is where it sits. as a traitor, investors, what do you need to watch for? troy: if you see material moves higher, a basis point or two is not considered a material move in japan, perhaps we will see a steepening of the yield curve in europe and the u.s. one of the reasons we have an artificially low back and of your curves is because of central discontinued central bank intervention. , ecb isoj starts moving going to be tapering more aggressively predicting future hikes. if the fed continues on their path we could see the yield curve steep and backup. alix: it's hard if you like that is a huge move. in terms of capital flows what is the significance of a change? stephanie: the bank of japan has been the final frontier for the global bond market.

the rump bank back in germany they don't have a banking business in germany so they have to figure out what they want to do with themselves same thing with citi i thought why don't we marry them this wonderful german american alliance but in both cases you have businesses that are big fund themselves off the markets they don't have core deposits they don't have stable funding the way a wells fargo has for example and so they have to figure out a way to be profitable and they haven't they've lost money for ten years right wells fargo's business model is something other than stealing money from clients i'm unaware of that money where the only answer own money. they have something other than just a larceny you know it's basic banking a lot of the. same thing yeah you wrote the book for it man now what do you say about the reports that a ford will stop making cars and make only trucks and s.u.v.s walk us through this they're listening to the market the market wants s.u.v.s they're what hybrids they want things that look like could they came out of the avengers or something cars are really