well, deutsche bank is a catastrophe. and deutsche bank has been his bank. and deutsche bank thus far in the courts has been told they are subject to a subpoena that orders them to hand over their donald trump-related financial information. well, today deutsche bank conceded against its will that, yeah, the information they've got on trump includes his taxes. so hotel on. i mean, as i said, this will likely continue to get worse before it gets better. this is the sweet spot as far as president is concerned, and i mean that in a bad way. stay with us. you look amazing. and you look amazingly comfortable. when your v-neck looks more like a u-neck... that's when you know, it's half-washed. try downy fabric conditioner. unlike detergent alone, downy helps prevent stretching by conditioning and smoothing fibers, so clothes look newer, longer. downy and it's done. actually, that's my buick.. your buick doesn't have a roof rack! this is my buick. how are we gonna fit in your mom's buick? easy. i like that new buick. -me too. i was actually talking about that buick.

well, deutsche bank is a catastrophe. and deutsche bank has been his bank. and deutsche bank thus far in the courts has been told they are subject to a subpoena that orders them to hand over their donald trump-related financial information. well, today deutsche bank conceded against its will that, yeah, the information they've got on trump includes his taxes. so hold on. i mean, as i said, this will likely continue to get worse before it gets better. this is the sweet spot as far as the president is concerned, and i mean that in a bad way. stay with us. ♪ limu emu & doug and now for their service to the community, we present limu emu & doug with this key to the city. [ applause ] it's an honor to tell you that liberty mutual customizes your car insurance so you only pay for what you need. and now we need to get back to work. [ applause and band playing ] only pay for what you need. ♪ liberty. liberty. liberty. liberty. ♪ ♪ i planned each charted course ♪ ♪ each careful step ♪ along the byway ♪ much more ♪ much more than this ♪ i did it my way (announcer) ver

banks a typical conservative old-fashioned good old republican bank. in 19 oh eight or 1910 he would have been the hero but he waited too long. he missed an opportunity because because of populism in the country democrats take the house in november 1810 so in 1911 the bill comes out in the democrats and liberal republicans have no interest in the aldrich plan the pinnacle of central banking dies. the democrats are in control they have to name somebody to come up with their version and glass is the only guy in the whole congress that knows anything about banking so they pick him to draft the democratic version of a central bank. and he comes up with something that very few people had ever thought about but he comes to it pretty quickly he does not want a single central bank in new york but several reserve banks in different cities around the country so those reserve banks will help the local banks who help the local economy and local merchants. it is a big country we just don't want all the money to go to new york he wants to centralize blood - - decent

i want to go to the deutsche bank case, where the deutsche bank case stands tonight. senator mccaskill, we have -- the house of representatives is now getting much, much closer to donald trump's tax returns tonight. >> yeah, and i think if the court looks at these documents in camera, lawrence, and they confirm what your source has told you, if the court confirms that there are signatures on these loan documents from foreign entities, then that just maybe the house of representatives' case even stronger. because that would be indicative to the court that congress has -- needs to look at the implications of a president who is elected when he is leveraged like this by foreign interests. and, you know, if your source is right, this is -- this is really going to shake the ground, and if the president wants to clear this up, he could do it by presenting those loan documents tomorrow at a press briefing in the white house. >> senator mccaskill, let's stay on this for a minute. legally put on your prosecutor's hat as a former attorney general. you said that the court could c

bank of canada -- bank of china above the others. there is exposure there., i think that's in mind for any bank in asia. what do you see? sonali: the protest -- ismael: the protests are not good for sentiment in terms of banks and consumer and business confidence. already disappointing time with added pressure. they are anticipating it can't go on like this. if you look at bank of china, they have had as much is 30% before coming from hong kong. it is either a boon or a boon or bane for china. if it is doing well, great. if not, the sentiment on china does not go well. we don't have any signs to suggest that asset quality is cementing. kathleen: in terms of investigating any of these banks , what is the takeaway? is it a risky bet if you pick the right one or the big one solvent enough to put money in their? ismael: we saw this before in the early 2000's. people said valuations and dividends were low. we fast-forward to where we are now, and for many years, we used to see them as a value trap. that should be applied to chinese banks of the moment in the sens

doing this is don sc bank and that's this is actually just bank i do have a report from don scott bank that i'm going to get to but this is from bank it's the 3rd largest bank. bank is the largest bank in denmark right and you know referring back to that film we did about iceland and i think those 2008 about the ponzi scheme their bank was the one who initially put out this report suggesting that iceland was a ponzi scheme about to implode and now in denmark as you're pointing out here they're using the exact same technique using the hyper leveraged mortgage real property assets as collateral to create this enormous ponzi scheme so the negative interest rates are a reflection of a ponzi scheme not as a canonic policy and yeah you might end up having 0. mortgage in the bank paying you half a percent a year or percent a year but let's keep in mind that the value the properties of a job 50607080 percent that's not a good deal again let's go back to the fact that we have this system that is unique post $971.00 all fiat's but at the end of the day do they have to back it by something whethe

not only his bank, but all the banks across europe have had a tough time lately.king money or are shrinking down. can we continue to get growth in equity markets, for example, or growth in the underlying economy if banks are not doing well? themos: going back to the previous discussion, the decline in yields has been pure and negative for banks, particularly are basicallythey being squeezed into providing less profitable financing. if you look at the overall lending conditions for europe, they have not been that bad. yearse the fact that, for , lower rates have challenged banks, the volume of credit has not collapsed or anything. that is something the ecb look set. -- looks at. profitability is something they also look at. these issues are coming from specific locations. once again, the main question environment is this one that fosters growth? basically, they can still provide credit to the economy. the trick comes in a recession with low rates, a difficult set up for any part of the economy. is because you cannot stimulated any further? themos: you end up in cor

banking branch with the investment banking branch, have they found a good balance?f we look at the contribution of capital market abctivities over total revenues, that's 40% for barclays it's slightly decreased but not significantly. other banks have decreased more substantially this kind of market activity. looking at ubs and deutsche is on a path of further reducing these activities barclays is sort of still focusing on being a big player it wants to be among the top five players globally. it's fighting against the u.s. players. that's a challenge so far they delivered but the u.s. players have higher liquidity pool, higher level of capital and also an economy which is in better shape than that of the uk and europe. >> do you think these quarterly earnings will quiet the critical voices of jes staley and his strategy >> if you look at the first and second quarter of this year, they have been in line with u.s. banks. fixed incomes were up, equity was not too bad. now, going forward, overall we are expecting a subdued environment in capital markets we're looking at

and the bank of japan, on to the ultimate people's bank of china. all the major banks in different ways throughout the world decided to find ways to electronically fabricate money to put into their systems, and then they are still going. so this thing that was an emergency and considered to be an emergency back in 2008 has become policy. and it's become monetary policy and if the people don't really think of it this way, it's our economic policy. there's this body that can create funds when necessary and that has no legal cap to how much they can create. there's a cap in terms of how much conversation they might have about how much they have created what public opinion might be what political opinion might be, but there's no legal cap to what any of the central banks can create electronically in the guise of helping the financial system or in the guise of helping the general economy. that's why they have so much more power now than they had before because they now know this, and in different ways over the last years, decade low sense of financial cr

and and you have a situation or bank stocks bank investors feel like the banks are way too risky you have an economy that's becoming on healthy because. the standard. thinking that the standard decision making in an economy is is pricing of risk and that's expressed in a cost of capital so something gets to be riskier investors demand a high yield and that helps corporations identify how much risk they can take and so forth and we take rates to 0 below 0 that whole capitalization goes out the window now you have malinvestment as a consequence you have all kinds of wasted resources you have companies taking way too much debt is doesn't cost anything in the not using it for anything productive so they're buying back their own shares now it's kinds of things and so you have an economy that really doesn't perform well and he see that in japan and you see that in europe in the united states we've had rate hikes in 20182017 our economy has outperformed that of europe and japan so you know i think negative interest rates negative yields are are they destructive think they're maybe ok very s

and bank beyond that at a bank see you get this counter party risk there that could really ignite a renewed banking sector let's just call it squeeze crisis whatever you want to call it that will then shift over the u.s. it's like 2008 so yeah we're definitely at the terminal phase the banks to create all this cash sloshes around the clock the planet looking for anything that it can that is considered safe we're up to 16 trillion and in debt that has a negative yield over a trillion dollars in corporate debt max has a negative view this is madness these high priests of finance it says if they are putting themselves in a position where they have screwed things up so badly they are now praying for america all america all of a media or the size of texas made entirely of currency strikes planet earth and bails out these insolvent institutions that's that's what seems to be their what they're banking on that by a divine intervention because otherwise they will have eaten their own thieves stockdale of consume them. catalyze each other and it's happening in real time now of course donald trump ha

bank of international settlements, vice chairman at deutsche bank, and vice chairman at the bank of canada. malcolm night joins us to discuss his view on the global economy. thank you for being with us. recession is very much top of mind. front and center when the yield curve started to invert in the united states. deepmebody who has seen and terrible crises, now that we are in the longest expansion in the u.s. in history, why are we so terrified of a recession, which is supposed to be the normal course of an economic cycle? i think the reason there was a lot of concern is, first, there is a lot of geopolitical uncertainty. we don't need to talk about that, but the trade war is a major element of it. althoughd element is, the u.s. economy is going strongly, growth in a lot of other parts of the world is rather weak. particularly in europe. china is pivoting away with a somewhat slower growth away from the kind of heavy imports of capital goods that it was making in the early part of this decade. that said, the financial markets are really priced to perfection. low interest rates, hi

. >> there's a lot of red just looking at those banking stocks. indeed we are seeing a shakeout in fixed income as well, this on news that italy has been plunged into a fresh political crisis, sending italian bond yields higher deputy prime minister mateo salvini called forever fresh elections and announced the end of the coalition government following months of infighting with their partner, five star. tensions piqued earlier this week over a mountain rail project. giuseppe conte is poised to recall parliament and hold a vote of no confidence next week. he criticized salvini for his attempt to bring down the government >> translator: i've already clarified with minister salvini during our meetings this crisis he triggered will be the most transparent crisis in the history of the republic. it's not for the interior minister to decide the timing of a political crisis it's up to the interior minister and his responsibilities as senator and leader of the lega party to explain to the country the reasons that bring him to interrupt early and brusquely

banking system.pact of the low rate environment in europe and elsewhere dragging down the u.s., or the u.s. having an interest rate differential so much off of what everyone else is doing is causing a problem. that is new. the fed conference in chicago two months ago, a great paper by my colleague surveying all the ways the international economy affects the u.s. economy. that is a big change, and interpretation change. it is historic, but it is a change. francine: plenty more with adam posen, peterson institute president. we will have to talk about the part -- central-bank challenges. we will have live coverage of the bank of england's rate decision. this is bloomberg. ♪ ♪ this is bloomberg "surveillance." week, beyond meat faces its andest challenge yet -- possible burger faces its biggest challenge yet. menu at about 10,000 restaurants. some chains reported intermittent supply problems. bankers at barclays outperforming rivals this quarter, falling less than expect did, all stirring jes staley's ho

>> not just the future of banks which is at stake. is the question of the economy, et cetera. i do believe that we have still certainly in europe very accommodative financing conditions. i feel if there is a slowdown in the economy, at least more related to macroeconomic or macropolitical elements which creates uncertainty and i am not sure that a change of interest rate would deal with that. we will see what the ecb will do and what the fed is going to do going forward. on our side, we are confident we can adapt to the environment. >> do you think the trade war is a big responsibility in this slowdown of the global economy? >> today i think there is a mix of things, certain things like the risk of a trade war or brexit which creates uncertainty. and then you have more specifications in certain sectors. i have in my the automotive industry where it is a mix of structural issues, transformations related to the climate change, perhaps a weaker market in china. etc., et cetera. it is a mixture. which effectively means a slowdown of the e

where is the bubble when ed is caused by bank test it is caused by bank policy -- it is caused by bankre you worried the slowdown will not be able to be reversed or contained by central bank action? neil: we are right at the limit of what monetary policy can do. they can cut rates a bit further and there is more they can do in terms of nonconventional policy. the question is, how effective are they? that is my big concern. on your point about asset prices , difficult to see bubbles forming at the moment. this cycle has been incredibly strange. we have had incredibly weak growth and high asset prices. monetary policy has been supportive. lingering trade imbalances around the world. i would not be surprised if we get another crisis. francine: where would the shock come from? neil: china would be an obvious one. we know debt levels are extremely high. i expect the other issue we need to think about as there is some esoteric part of the fixed income and credit market where things are frothy. leveraged loans got a bit of attention this year. systemic. it ripples through the financial plumbi

and i threw in deutsche bank. i am watching the e.u. banking system.nything, but deutsche bank and euro, under a six is a big deal. francine: i just finished a conversation with philipp hildebrand and we spoke at length about the banks. he was not too rosy about the models out there when it came to the european banks. what i am looking at is stocks drifting in europe. they were stronger just 15 minutes ago. the markets are trying to figure out the signals of a possible recession emerging in the bond market yesterday, and whether that means they still want to continue with the rally and take some of the gains. renminbi, 7.0327. we have not focused on renminbi too much. tom: as we do the data check, 1.98% on the 30 year bond. the yield is plunging as we speak. get10-year yield, i can back to general eisenhower. this is the famous h-15 chart. it is not back to world war ii, but it gets you almost back there. 14%, 15%.peaks of chart only picks it up to end of month, and we have moved so much in august, we are down well below the 1952 deflation. we are back

$100, then the bank, i have a problem here if i owe the bank $1 million, and the bank has a problem. similarly, i think we should be careful about the risk, as stephanie said, we are interdependent and if the double-edged sword as somebody said before, , if we try to use that in an inappropriate or political weight and i think we're discovering that in a lot of areas. with that sort of joint benediction, and hope for sort of broader perspectives, which is what we are trying to bring here today, also in this dialogue and thanks to you for brevity appear as the one partner representative here, but thanks to all the panelists. please join me in thanking them for a great presentation. [applause] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> ukraine's president has called for talks with the leaders of russia, germany and france to try in and the five-year war in eastern ukraine. coming up this afternoon a former u.s. ambassado

as a result, 25% of americans are un-banked or under-banked. these companies -- families still billions -- spend billions of dollars paying bills in person, seeking the most direct path to financial inclusion. we should open the doors to our already established payment system. it needs to be updated, but the securess -- system is and is widely understood. relies on waiting for new and untested technological platforms, waiting for wholesale adoption and use, and waiting for technological advancements to penetrate banking deserts. even if technological solutions are around the corner and we decide this is the answer to financial inclusion, we would be reserving the public banking system for those with enough means to be banked and relegating un-banked to the private cryptocurrency market. this is undemocratic and unfair. the federal reserve and congress are in the best position to make this possible by offering real-time payments, such as a post office checking account. as far as regulating cryptocurrency, i ask that congress approach these produ

the vast majority of bank robbers are not pastors, one-on-one bank robbers, one bank robber, one teller i got a gun give me all your money. he says the vast majority of them are robbing because they are addicted. addicted to drugs. they need money fast and feel like their back is against the wall. those guys get caught because they keep good doing it. it's an addiction in itself. it seems like easy money walking past the notebook out with $2500 $3000 but eventually your luck runs out. back in that period the fbi didn't even pay attention to you until you were up to six or seven bank robberies there were some that rob as many as 60 to 65 or 70 banks. mostly they get caught because they happen to come out when a police car is going by somebody hit silent alarm in the police cars nearby somebody drops down the license plate. the vast majority get caught. the other ones then you have your toddlers are very rare. but the takeover robberies are the ones that are extremely frightening and that's like mine where you get a group of people they run into the bank heavily armed and it's everybody g

at the end of the day, big depositors, big banks. of weakening the financial system in terms of passing those on? money is a commodity, just like any other commodity and to have money free, giving it away, it doesn't seem to be right or the right way of doing it. david: a store of wealth, we talked about gold as a defensive play. thehat starting to become great in negative -- his bling back? richard: i think so. in six months, you've seen people uninterested in gold very interested in gold. they are trading at high multiples and will go higher. gold at this stage of the cycle is the right thing. if we are going to look at things, gold is nice but it is a store of value temporarily. you can't eat it, you can't earn anything from it. basically, we are going back to sea shells and coins and tulips in terms of that. thes not a healthy sign for global economy. more of the barter system. we are living in very turbulent help whenit doesn't you have a trade war which could be made worse by what is going on with the yuan and its depreciation,

this excludes deutsche bank.evenue and equities fell more than 30% a large part because they are exiting the business. this didn't come debt trading looked even better for europe -- fixed income debt trading looked even better for europe. we saw bnp and credit suisse handily beating it. suisse saying clients saw a great pick up in activity. have european banks turned the corner? with trading perhaps, but the ecb still looms large in the picture, so the worst may not be over. we are hearing banking ceos get more vocal about this. ing, around their earnings, the ceo said a decrease of rates into further negative territory is hurting consumer confidence in the future, so this certainly continuing to weigh on banks. anna: thanks very much. bloomberg's dani burger with the latest on the banking sector. let's get back to our top story around global trade tensions between the u.s. and china, specifically. we are now hearing more from china. of thent through some comments coming from the ministry of foreign affairs. now

banks up a half percentage point. we're seeing pressure for some of the names reporting basic resources in the red down 0.15% there we heard from glencore overnight. they have reported that 32% drop in first half earnings, due largely to lower prices for copper and cobalt. the basic resources sector has been a key victim of the selloff driven by an escalation in u.s./china ftrade tensions in asia, no massive changes. shanghai ended about a third of a percent lower. the hang seng ended up 0.15% so this fragile calm followed a relative sense of calm in the asian markets. >> let's talk about banks. yu unicredit reported a jump in second quarter net profit thanks to the sale of its stake in finnacle bank, but the disposal of bad loans will accelerate in the second half. commerzbank has warned itself target for higher 2019 net profit has become significantly more ambitious the german lender blamed a worsening macro economic and geopolitical environment but lower taxes helped it beat second quarter profit forecasts. joumann

industry the banking leader in terms of adapting the technology and pushing other banks to do the sameshback. ♪ >> china is raising the pressure on taiwan, suspending a program that allows individual tourists from 47 that is to travel to the island. the ministry of culture and tourism s an election coming up -- how much do these moves have to do with that? >> they do appear to be timed perfectly with that election. relations between taiwan and china has been at deep-freeze for the past years, when beijing cuts off direct communications after the election of the president back in 2016. just thest move is latest measure from beijing aimed at putting pressure on taiwan and the economy. we have seen an increase in the number of military patrols around taiwan in this band does look like it is timed to coincide perfectly with the election in january. ♪ the second round of democratic hopefuls have competed, continuing the attacks on may 2, especially towards joe biden. >> they turned him into a political piÑata and i think the consensus was that the former vice president delivered a better pe

banks. they just started to get it together to cut costs, and now they get hit potentially with more negative interest rates. here's the commerzbank cfo speaking to bloomberg. >> it is getting harder to a certain extent, especially if you believe forecasts like this, but on the other hand, i think it is a reflection of what we have seen over the last year. the question is not how hard is it. the question is what do you have to counter the issues, and i think to a certain extent, growing with assets has been a been a very good way of dealing with it. alix: do you feel that european banks, for instance, have actually been able to rerate lower to where they should be? gina: well, they've been in a d rating process -- in a de-rating process for years and years. there appears to be significantly greater room for further compression in margin expectations. i say that because if you take the top 15 banks in the euro stoxx 600, these earnings expectations over time, so far this year the expectation

if you look at the downside, it ed down byof banks, l e hsbc but you see the italian banks.ee banko santander, unicredit. lloyd's,p. paribas, so you see an international list of banks on the downside this morning. opening prettys mixed, but still with the red arrow on the stoxx 600. asian shares were mixed, as well. u.s. futures are retreating after the big gains yesterday. the positive sentiment from a strong session on wall street being offset by trade tensions. joining us now, jane foley, head k. fx strategy at raboban let me start with a question spurred by president trump. he is complaining about the strength of the dollar so we are asking the question on mliv, what impact would a dollar intervention have across assets? what is your take on that? >> it depends on whether or not you are talking long or short term. short-term it would be a massive surprise. i think it is unlikely but with president trump at the helm, it is hard to rule out totally. if we did see something, it would be a shock. they would have initial impact but i'm not convinced it would be lasting. centr

banks also a heavy day for european banks. we're there now.o show you the picture this morning, we have deutsche, 1.4% weaker i believe this is close if not through the all-time lows there. rbs trading on the back foot, down 2.7%. another bank we've been watching closely is commerzbank, down 5%. today rebounding somewhat. italian banks are closed for business today because it's a holiday. let's get back to our conversation we were talking about net interest margin in our first chat obviously in the u.s., net interest margins are higher because rates are higher so talking about average net interest margin of 3%. europe has been having net interest margins moving lower and lower. we're at about 1.4%. japan at 1.3%. are european banks headed towards japan? >> that's a good question. in europe, we have much more of a divergence between profitability. so japanese rates, nims and r.o.e.s fall if you look at the 2009 and 2010 levels, r.o.e.s and nims have fallen a lot europe is holding up in aggregate. it's not gloom and doom, but within the banks th

the chinese central bank blamed u.s. protectionist measures for the move we have this report on the latest details and the implications >> reporter: the chinese yuan has weakened past the 7 mark, raising questions if policymakers here are purposely devaluing the currency as a way to offset president trump's anticipated 10% tariffs on $300 billion worth of chinese goods in a statement on its website, the people's bank of china linked the depreciation with president trump's tariff threat, saying the losses were due to protectionist and tariffs on chinese goods. a weaker yuan makes chinese exports cheaper. some manufacturers have been worried the tariffs could force them out of the u.s. market all together companies that buy from america anticipate paying, too like new hope, which purchasing u.s. soybeans. >> translator: of course, if they cannot reach a deal and impose additional tariffs, i believe don't sides will, it will add to u.s. farmers' costs and force chinese buyers to pay more this is something we don't want to s

some of the banking stocks as well. if you look at the banking valuations.ith the korean banks. they are affected a bit by the domestic economy at the moment, but the great banks are well-capitalized, and it is also a good place to be. hashe short-term the market also been hurt by the japanese-korean dispute, but we believe these things will be resolved in those valuations are two compelling to ignore. overweight korea, avoid malaysia and taiwan. thank you so much for your insight. if you are a bloomberg subscriber you can catch up with all our interviews by using our function tv and join the conversation by sending instant messages to our team. do check it out. tv . this is bloomberg. ♪ ♪ >> you are watching "bloomberg markets: asia." check of the quick latest business flash headlines. blackrock's private equities fund has struck a new deal, 800 $75 to be the largest shareholder in the u.s. prayed management company. they manage 50 clothing and entertainment labels including "sports illustrated" and juicy could tour. . >> ams is offering more than

, online banking.ou've joined a consortium of banks that are using blockchain to offer international currency, of sorts. i wonder what you think about that in light of the criticism facebook has received for libra. in terms of distributed technology, ing is at the forefront of that. what we do as an institution for now is taken observant view. check -- wepate, participate, check with regulators how they feel about technology but it is one of the many initiatives we do as a bank and there are many others we can talk about but it is one area of interest and we take a watch and see attitude. matt: what are you hearing about usc, the universal standard coin? i'm not so familiar with that topic, sorry. briefly, earlier this year, ing said it was looking for hundreds of extra employees to fight money-laundering. how is that impacting costs? tanate: i think we announced in q2 that we have now over 3000 staff working on our aml programs. we are adding staff and that initiative and it brings additional costs, b

investment banks.hat dream is over and it is cutting dramatically. it is one of the biggest restructuring program ever. the hope is to get the price back up and on a footing that shows he can lead a bank that is seen as stable, and not as fragile. matt: thank you very much, fantastic story there. we are minutes away from the open, nine minutes until the start. here are stocks to watch. the shipping giant maersk beat estimates, but warns about uncertainty ahead. this is bloomberg. ♪ matt: six minutes away from the open. your stocks to watch with annmarie hordern. with the windoff power company. e: the wind turbine company will have a call down today about 2%, a miss on earnings and on a revenue front. they are narrowing their guidance for profit, that will hit the stock this morning. matt: what is the story with gb c? raised its guidance. business is something powering growth in this business. it is up about 18% in this period. the benefit is from the u.k. retail business which has been hit by the gover

nejra: european banks struggle as a central banks push rates lower and lower.week we had commerce banks cfo speaking frankly. matt miller asked him about what he would say to policy makers about rates and impacts. >> what really changes if you lower the rates by another 10 or 20 basis points? is there any house that you want to buy additionally or whatever? from my point of view, it's unclear what the benefit of this lower rate is. nevertheless, if it happens, you need to deal with it. it will put up additional pressure on the sector in general. we will need to see how the answers can look like. matt: the idea is they have no other choice, right, because of the issues, that helps your customers continue in business. and that means more business for you. does that not make sense to you? stephan: no, in general that makes sense. that's what the benefit of the last year is. the question is, does the additional create an effect or the collateral damages which it also produces, do they really outweigh the positives? how important is the fiscal side of things? i spok

the wwf buzz make sustainable banking assessments at 35 banks and the other young region are lagging practices, policies and a series of criteria used to assess how they stack up —— asean region. according to the report, only 9% of asean banks have a strategy to manage climate related risks and a staggering 91% of the banks in the region continue to finance new coal—fired power plants. i spoke to jenny stan, the head of asia's sustainable finance at wwf who told me more about the report. southeast asia is extremely vulnerable to climate and natural capital risks. if we look at some of the projections, they are quite alarming in terms of projected sea level rise, inundation risks from bangkok for example, north jakarta, due rise, inundation risks from bangkok for example, northjakarta, due to unsustainable groundwater use. and these of course impact real assets, physical assets, underground. we have a deforestation issue, as well as in economy, a deforestation front where we have unsustainable infrastructure and mining industries that are continuing to drive deforestation. so, the oth

in orderice bank is outright -- nordis bank is more hawk herb.oth central banks will stick with their point of view. francine: reporting oil now? >> probably the opec cuts are the only thing. how much more do they need to cut? and will they? what is their reaction? you look at brent under $60 a barrel and you're one of these countries in the gulf that has a budget of targeting $80 a barrel. how do you prop up prices? that will be interesting to see where their reaction is. right now oil is so focused on the demand side. we saw already this summer, two tankers in the gulf damage pd. the oil market brushes it off. francine: is there anything that you could see in the markets that that could be inked? >> we are long nokei versus stocki. these value trades we expect to outperform. in the case of noki stocki what we like about it is the global growth concerns, impacts have a greater impact on manufacturing, the global business cycle. the global trade is really slowing down. sweden, very exposed from that point of view. in the case of oil, it is much l

why did the bank do this? well, to be remembered, economics 101, interest is essentially the price of money and it makes no sense to voluntarily redeem it par stock that only pays 3% interest when you can lend the money out at 5% or 6%. it's the equivalent of burning money. you're better off continuing to pay holders and pocket the difference you can make and invest the money elsewhere. polk and the opponents tried to make it look like the bank failed to redeem the 3% because it didn't have the money. the transaction was shady even if you concede that the bank was solvent. the government's banker was told to do something. it refused to do it. rather than own up, it contributed in evasion. jackson could not have been more pleased with the minority report issued on march 1st, '18 33 near session's send. the washington globe, the administration's newspaper organization sang the prizes of polk's powerful document. quote, it exposes the self-contradicted testimony under which that corrupt and corrupting institution

banks.re are few decisions that need to be taken. >> commerzbank says it is becoming tougher to reach a target for higher profit this year. the bank reported a fourth straight quarter of falling revenue. global trade tensions hit commerzbank's key corporate client unit in particular and operating profit fell. >> how hard is that to do business in this negative rate environment? >> it is getting harder to a certain extent especially , if you believe a forecast like this. on the other hand, i think it is a reflection of what we have are seeing over the last year. the question is not how hard is that, the question is what you -- what do you have to offer to counter the issues? and i think to a certain extent growing with customers has been a very successful way of dealing with it for the last year and quarter. abn amro has beaten its estimates on the bottom line and says it is well placed to boost payouts the second year. 693 million euros at the bank gain market share in mortgages. the group d

jp morgan and bank of america down sharply in the u.s., and in europe, deutsche bank and allianz downwell. guy: we also had commerzbank reporting earlier on as well. thank you very much indeed. let's get back to viraj patel, arkera fx and global macro strategist. global years are under pressure. let's talk about the pound. the latest book he odds on a no deal brexit are five to seven. is that fully reflected at the moment? viraj: the odds are like 35%. the game is guessing the right probability for what a no deal brexit should be. havenk sterling markets probably priced in above 50%. this seems like a momentum driven move related to no deal, but i'm not entirely sure we are all on the same no deal risk assessment page. i look at the probably of us, november 1, moving to the ,ideo trading terms -- of us november 1, moving to wto trading terms, i would put the probably be much lower than implied betting and certainly much lower than what sterling markets are indicating. guy: are you willing to bet against the market at the moment? as you say, it is kind of a one-way trade at the moment.