not since the beginning of the first world war has our banking system been so close to collapse. ancine: mervyn king was at the epicenter of the biggest crisis management in modern banking history. he was at the helm of the bank of england in 2007, pumping billions of pounds into the economy. joining me on "leaders with lacqua," former bank of england governor mervyn king. thank you so much for speaking to bloomberg tv. it is always a great pleasure. what lessons have we learned? mr. king: i hope we learned the lesson that this was bigger than financial crisis. it represented a serious problem in the world economy. i think that is the most important lesson. second, we learned we need to worry not just about the amount of equity capital banks issue, we need to limit the leverage, but we also need to tackle the problem that banks are inherently unstable. people take their money out, or they don't roll over there letting, and we need to do that. francine: did we see early signs of it? mr. king: i think we saw signs in the world economy, and we should have given more weight to the ris

we have the largest banks posting double-digit increases. it does validate some of earnings optimism, the rise we have seen recently. china reporting average net interest. 50%, i think. china construction bank with a 10% rise last week. hsbc, see where that is going. on the way down. buyback continues. the finance director saying that was on track. haidi: the bank of china, that would be the worst performer, the one who disappointed the most out of the big banks. take a look at glencore, withdrawing their hong kong secondary listing. the company says a small number of shareholders decided to pull to their shares. 130,000 shares changing hands in hong kong. this is what will happen. dealings in the hong kong shares will cease 4:00 p.m. hong kong time on january 10. is also quoted in johannesburg. coming up, we will break down the latest on china's pmi numbers. what does that tell us about the growth story? ♪ p.m., we are counting down to the start of the session. investors selling on developments in the u.s. policy.a meeting on bank of england expecting -- expected t

not since the beginning of the first world war has our banking system been so close to collapse. ancine: mervyn king was at the epicenter of the biggest exercise in crisis management in modern financial history. he was in charge of the bank of england in 2007, pumping billions of pounds into the economy. joining me on "leaders with lacqua," former bank of england governor, economist and author mervyn king. lord king, thank you so much for speaking to bloomberg tv. it is always a great pleasure. what lessons have we learned? from the financial crisis? lord king: i hope we learned the lesson that this was a lot bigger than just a financial crisis. it represented a serious problem in the world economy. not sure that everyone sees it that way, but i think that is the most important lesson. i think secondly we learned we need to worry not just about the amounts of of equity capital banks issue, we need to limit the leverage, but we also need to tackle the problem that banks are inherently unstable. and if people lose confidence in them, they take their money out, or they do not roll ov

he is equal weight on bank of america. what is your overall tank on bank earnings season so far? rprised you? jason: it has been a mixed bag. long growth. net interest margins continue to expand. expenses have been well-controlled. -- with the exception of a modest reserve building credit card. on the flip side, capital market revenue has been pressured. investment banking is down sequentially. at the same time we mentioned loan growth, while up, has been less than desired. shery: we were talking about this yesterday. we are condemning -- continuing to see losses rise for the banks. mind thatp in loan-loss provisions and loan losses are increasing office directly low levels. charges for the industry are running at half historical averages. they have nowhere to go with higher. after something like three or four years of banks releasing loan reserves you are seeing building given that they loosened credit cards a few years ago. they have grown balances. you are seeing the loans begin the season. we think the health to the consumer is fine. we wish they were making more, but most con

bank of america getting a nice pop and pre-markets. stocks seeing their highest level since last june. one of the performers is the german ten-year bund. webasis points is what printed there after bloomberg reported their bond buying but extended the length that which they buy bonds, affecting the euro. it is higher on the day but lower on the session. 118 -- 1.18.ar now waiting on inflation data and you see the spread between five and 30 is steeper but crude getting a nice pop on worries the iran deal could be reshaped. let's get an update on headlines outside of the business world with taylor riggs. taylor: president trump is expected to not abandoned the iran nuclear deal. the president will refuse to certify that the courts officially serve u.s. interests. he is expected to ask congress to amend the law. the president said it is time for the entire world in demanding that iran world and its pursuit into and destruction. the most drastic steps yet are taken to end obamacare. president trump has cut out subsidies to help lower income

the former governor of the bank of israel. of your work in chicago, are they applicable today to central banks or is it a new economics that the people -- that we talked about have to deal with? jacob: [no audio] what is important is that these statements which i'm not sure i understand now really focuses on the long-term. focuses on the fundamentals of grow in theconomy long-term. it is not budget deficit and it is not mickey mouse anti-cyclical measures grow in e . growth means medium-term perspective. a means saving, investment. investment.saving, tom: can they work in the medium term and long-term, or is a crystal of news and information flow so much that we now have short-term central bankers? jacob: they have to focus on the long-term and short-term will be at their disposal. the main issue has been the with a of policymakers crisis prone mindset because we have a big crisis. therefore the short term was the focus. it is trying to -- it is time to declare a new phase, medium-term strategy. the phase of saying independent

the cost of funds for u.s. banks around the time of the crisis was around $100 billion a quarter, and it went down to less than ten. and that is money that's transferred directly from depositors to the banks, and the same thing in the marketplace, the cost of funds dropped, so debtors had the advantage of that and earning assets for a while were a lot higher, which boosted the returns for the banks. but to see, you know, how it's barely $20 billion this past quarter, so that gives you some measure of just how much transfer there is. it's around $400 billion a year. that's a lot of money. now, the thing that really keeps me up at night is i see signs of skewing that we saw during the 2000s, but it's even more pronounced this time. and this has to do with both residential mortgages, commercial real estate, and also some other asset classes. first and foremost, this is all bank loans. you can see loss given default, which is charge offs, less recoveries, is actually pretty low, 75% for the entire $6, $7 trillion in loan

coming up over the next week, a trio of central bank decisions from the bank of japan, bank of englandd. plus, the u.s. jobs report and president trump's trip to asia. it is widely expected his fed chair decision will be known by then. still with me around the table, kathleen gaffney, joern wasmund , and jack flaherty. jack, you mentioned the u.k. the bank of england in focus, potentially the first rate hike in over a decade. now, i looked at some u.k. retail sales figures that came out and they dropped off a cliff. i looked at u.k. gdp, it was like 0.4% better than expected , but it is not really compatible with what i would call a time for a rate hike. jack: yeah, but the inflation has scared them a little bit. the weaker pound inflation has come through. it is a very open economy and i think that is what they want to address. i think it is important they address things now rather than later. they will potentially need some ammunition later on. jonathan: kathleen, if you google "unreliable boyfriend" and go to images, i found out this week that governor carney's picture comes up ever

the cost of funds for u.s. banks around the time of the crisis is about $100 billion a quarter, and it went down to less than 10 billion dollars. in the marketplace. and debtorsfunds, have the advantage to that, and that boosted returns to the banks. $20 billion in the last quarter and that gives you how much of a measure it is. it is around $400 billion per year. that is a lot of money. the thing that keeps me up at night is that i see signs of skewing, that we saw in the 2000's, and this is an commercial real estate and other asset classes. first and foremost, this is all bank loans. lowults are actually pretty . you could see, there have been times when it was also very low but if you look at it, that was the roaring to thousands -- 2000's and the 90's. look at family mortgages. one in four family mortgages is at the lowest net loss rate than we have observed. home prices have gone up double-digit to many markets, four years. the board of governors refuses to look at it in their deliberations. and there is less le

coming up, we speak to the president of the asian infrastructure bank. little bit later. we will talk about what lies ahead. ♪ manus: live shots of the governor of the bank of japan. he is covering a wide variety of targets. he is saying japan's level of debt is very high. the government must keep the faith in terms of fiscal reform. they do buy stock in etf. they are aimed at reducing risk premiums. there is no excessive sentiment in the stock market this year. get some of the japanese in this when you look at some of , theiranese indices trading very well. ryanair's first-half earnings gained 11%. more than offsetting the pilot shortage that triggered flight cancellations. income rose to 1.2 9 billion euros. the ceo joins us at 7 a.m. u.k. time. morgan stanley has dropped out of an industry accord that allows financial advisors to defect to a competitor without being sued by their previous employer. they said the agreement has become replaced with opportunity for gamesmanship and lupin all's -- loopholes. facebook, google, and twitter will be at a cong

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on there is a lot out there the bank of england that they will be one and done. that was applied to the fed and they kept raising rates. tom: the five-year, it is driving, yellen is white, and the red is a huge brexit gap of currency depreciation in england. i do not think we make enough about this and that these decisions are their own cultural and national decisions. it is not about monetary theory, carney has a deal with the unique united kingdom versus mario draghi and janet yellen. is decent conniving that will allow the flexibility, but there is among the markets enough coalition that they will all go together. we look at this time where the ecb sounded more dovish, but they does go back to program and it led to a rally. it is more like investors were worried that this was the end, and quite frankly it will not be extended for nine months. bottom line, we are added hundred point. -- we are at a turning point. nejra: insider like that -- it sounded like that what your team expects is a hawkish hike and many strategists say that is what is needed to give supp

back to bank of america.their digital payment solution zel they processed $4 billion in payments this quarter, up 68% year on year which is roughly 50% more this quarter than venmo finally, on the earnings call, the thing that had been weighing on bank of america's share price was comments on deposit pricing. not getting the boosted margins from rate hikes in june as they expected and having to pay out for deposits in the last five minutes, bank of america has jumped about a percent and a half but the wells fargo call starts in just about an hour. >> the curse of live television. hard to listen to the call when you're telling our viewers we'll come back to you for more on the banks, let's bring in david long, david george, david long, you had an underperform on wells on some expected headline risk is the punishing today in line with your expectation? >> absolutely. and thanks for having me on your show looking at wells' numbers today's, the net interest margin came in lower than expected. loan growth and depo

the other side of yourthe other- not the private bank i should emphasize. o audio] opposition in u.s. treasury bonds. the most bearish since 2006. there are a couple of facets that play into the bond market. looks as if the market is building up on aggressive fed. david: what has caused this is a shift in sentiment. much stronger than most people were expecting in terms of their predictions where interest rates would go. tax reform and how it interacts with the fed. this is the thing, the fed doesn't believe there is much left in the economy. the fed doesn't believe you need more than 100,000 jobs a month to keep the unemployment rate stable. cutou get a sentiment tax and that starts boosting demand, that is going to raise interest rates even more. manus: the market is underestimating the capacity of the fed. look at the 10 year government bond yields. where could we break to? that could our target for last year, a couple of quarters remain the same, 2.5 with a small range. wherefore he said they will hike again in december -- we have always said they will h

maria: a lot of major banks didn't pay that. pay 20% so that is why small businesses are the beneficiary. we are talking about all of the above. commerce secretary wilbur ross with us, rand paul is with us and jeffrey goodlatte is here. we kick it off this hour with for healthcare reform. donald trump followed through on that threat to halt federal payments for cost-sharing reductions under the affordable care act. the president signal readiness to reach across the aisle for healthcare reform tweeting the democrats obama care is exploding, massive subsidy payments to their insurance company stopped, should have called me to fix after he decided executive order yesterday allowing people to buy insurance across state lines as well as lower insurance costs, he spoke out about lack of congressional action to fix obamacare yesterday. >> 7 years ago congressional democrats broke the american healthcare system by forcing the obamacare nightmare on to the american people. it has been a nightmare. look at what is happening with premiums a

anna: chief executive officer of deutsche bank is losing support of some investors just seven months che bank's latest turnaround plan. speaking on condition of anonymity, they said they want to see a turnaround in the next few quarters if the ceo wants to keep his job. manus: we are bringing in russell on this story. good to see you. why are these investors concern? deutsche bank may be losing flow business and investment banking. he hasn't met some of the top shareholders. what is vexing the roster? yes. as you mentioned, it's only been seven months since the latest restructuring plan. investors are already losing patience. the investment banking side has been shown signs of turning around the bank is continuing to lose market share. to be fair, it's a difficult climate. fixed income trading, bonds trading. the low rates, low volatility, and low volume. he has an uphill battle there. another part of the restructuring plan was to reintegrate postbank in the domestic retail banking. projected that to take five years to fully implement. that is going to be a real drag on costs. investo

but the institutional framework of the federal reserve bank of america is bigger than any individual.ll make a difference? no, people are speculating and traders love this kind of thing, when you have an esteemed institution, if i was to ask the difference between eddie george and her mervyn king and carney, you would say you can't pick them out. it is an institutional framework. but of course i'm intrigued. there is a difference between the hawks and doves. i know he is the chairman and he has to go with the committee, but he still has a lot of weight. yes, but to be honest once these people get in the job, it isjob that makes them or they make the job. when you have a powerful institution it difficult to come and chop and change it. they will make a difference on the margin, but i'm not particularly worried over the next five years that whoever he picks will be a massive change in policy. now back closer to the uk and in some respects people wouldn't see this as important, but it is a car dealer which has a profit warning. there is more to that about what is going on in cars and car

the hand grenade of management, when wilson came to the bank in 1995 he came out of the private sector. he had been a banker running a private bank for a long time and made his name by leaving the crisis. now you could imagine it wasn't a kind of polite sort of place. there were morning meetings. all the partners would have coffee with each other and that they would all be pulling at their kind of team, and when wilson sent him to the bank, he sort of brought some of this file which i think is a personal style anyway. the difference is they get a bonus in the several figures. they've got economic phd's in to say what do you know about development and there is a clash between the larger then life sort of tornado figure and it's very proud in the world bank and wilson said would shake it up and it felt like a hand grenade in the middle of the building. i think what was going on in the '90s is that there was the need for some discreet things to be fixed. but in the next couple of years remember we were going through the financial fall over. the private sector prestige without an all-time

here what you need to have a new is coming up ahead confidence use cash to do is a form of protest to banks are moving their headquarters to other villages of spain . then visiting from all businesses will have that story and other news from the want of business to stay that you've got their. own interests are on the rise when required and. i am taking them to more straight to highlight different shades of nationalism and to find out what does nation me to you. to show you so or join the conversation here on to dublin you on twitter i don't facebook. crime fighters the new season of radio crime thrillers begins. in. motion domestic violence cyber crime and human trafficking for investigative cases that will keep you on your toes crime fighters series at the base idea ever so every young person needs to listen to crime fighters and share tell a friend tell a friend to a friend crime fighters don't miss it. catching up cattle and separatists cold and supporters for a run on the banks in protest at spain's threat to suspend the region's autonomy. breaking away but at what cost catalonia is not

didn't sign up.” think the bank of england only signed up just a think the bank of england onlyupjust a little think the bank of england only signed up just a little while ago, and this has been going on for some time. but i worry about these fancy signing up to charter is where. about themselves because they have ticked the box. and also in the f t, china, this communist party congress, and president xijinping, and carrie gracie, are china editor was saying he is the new red emperor, he is the new chairman mao. and his name has been written into the chinese communist party constitution, which is a big deal. mao zedong is the only other person who has been in his lifetime written into the constitution. i don't know enough about china, but i find that fairly reassuring in the sense that president xi seems to be a fairly capitalist moderniser. running, ennis party! who is bringing china into 21st—century. 21st—ce ntury. we were 21st—century. we were rather that they were democratic and liberal and respected human rights, especially in tibet, but the system seems to be working, and

that is a dovish hint of a central bank policy intent. f the mornings earlier gains, icbc gaining 2% after jumping the most two years earlier. lender second-largest rose as much as 4.3%. they have turned more positive after spending one year being cautious. the risks have started to unwind. the latest reserve cuts are going to further. buy.have upgraded tcb to icbc is the topic among chinese banks. that is a look at what is moving markets in china after the long week break we have seen. thank you, the latest on the market. china's return after golden week. rallying at the central bank's decision to cut the lenders reserve ratio. the people's bank of china said it will cut reserve requirements. in 2018.banks what are the indications? we have the banks playing catch-up this time. >> that is right. certainly the compass it playing catch-up the shares in hong kong. this announcement was made september 3. it will not take hold until 2018. the vast majority of china's banks, certainly all of the major ones and that is why you are seeing the shan

workplace, ceo of and we'll see how european banking landscape is looking. a couple of lines coming through, telefonica coming in at .0 9 billion. nokia missed but telefonica missing in terms of the estimates on oibda. about 17 billion euros. special charges for continued operations. adjusted ebitda will be slightly above the level of the prior adjusted ebitda , the market had penciled in 2.12. nejra: asian equities trading sideways in this session. we've not seen a move up more than .2% either way. asian stock follow till it he has fallen to its lowest on record. column at the headline level looking at the benchmark. a little more movement in chinese bonds. 10 year yield has gone up to 3.8%. some strategist targeting 4% for this. even before reach the level we were already at a 2015 hi on the 10 year chinese shield. we talked about it being ecb day. the euro gaining against most of its major peers, higher against the dollar for a third day but ever so slightly weaker against the yen. highand almost two-year before the ecb meeting. some questions over whether

state bank of india jumped. punjab national bank advanced 40%. get to our agent finance reporter, anto antony. good to see you. capital boosts catching everybody by surprise. yes, the position to increase to capital target has caught everybody by surprise. is creditaid that it positive. the state banks have added more than 10 billion and capital market. this will help banks to clear up indian banks which are saddled with one of the highest bad loans ratio. this will help to clear the balance sheet and add more loans in this economy. anna: anto, thank you very much. the indians bank have been the move heating up the stock market. anto antony in mumbai. about nonperforming loans. manus: this all comes down to mario draghi. the european central bank president is expected to give the details on how the put back theill parsing of more than 2 trillion euros of debt. anna: the ecb will begin withdrawing even with inflation projected to remain below its target. alberto gallo is still with us. what do you expect from the ecb this week? they cut down the a

the centraly of bank has reduced. ed. -- that could lead to some pressure in terms of yields. there could be some upward pressures on yields. rashaad: we were in unknown waters when we started off quantitative easing and we are in unknown waters at the start of quantitative tightening. what are the implications of the yield curve? some are suggesting we will see a steepening. does that mean the economy is better? or is it just artificial? recall, when the cost hated easing was ongoing, -- when the quantitative easing was ongoing, it flattened the curve. be for bias is going to the curve to steepen. you have to have some economic development. we have a secret nice recovery. recovery.d in the u.s., there is a confluence of factors that could return appreciation. theou look at underemployment numbers, when you look at the wage growth, there could be some inflationary expectations going to the u.s. the flattening of the curve was a consensus. there could be a steepening of the curve. rashaad: banks certainly like it. is it

of shares outstanding. it is significant for these banks. >> that is the trays that are public. >> in case of a few banks, wesee in a few days what happens. any other sector in europe now? >> if you look at the short positions of bridgewater they have sectors across europe. seven are in italy. five are in banks. this in europe. i woke up to your buyback asset story. it is buying back shares. >> absolutely. business,ment and this is backed by $2.8 billion in the third quarter. the money is coming into their quantitative funds. trend over the last two years. investors are coming back into lower margins and quantitative hedge funds. news hedge fund reporter. bitcoin's rally has picked up speed. surging to above $5,600. is this just the beginning? look at the chart to my right? the pace ofs how gains has been rapidly accelerating through each key level. -- our people piling in now that it has hit 5000? >> it is significant now. when china crackdown we solve that dip. below 4000. all of a sudden it is headed to less than a month. wall street may actually be responsible for driving the price. with every announceme

the bank of england hiking rates , that is one of the big questions. we have an interest rate outlook from metro banks ceo. than half anless hour away from the start of european trading after new records in the u.s. line let's take a look at what u.s. futures are doing. they are down across the board and we have the ibex in here. we expect to hear from the whetherseparatists on they will fully declare independence and on friday you get that vote in the senate to will take over. you can see we have come above this 2.4 level which is not really magical for any other reason than no gross pointing that out as his indication that the bull market in u.s. treasuries is over. we have been above 2.4 at other points in the beginning of the year. jeff good luck saying it is you are die time for treasury bulls incomemart fixed analyst says if powell becomes the fed chair guy that could inspire a drop of five basis points in the treasury yield. if taylor becomes the chair, the next fed chair, that could spark a 10 basis point rise in treasury yields so i think it is

this is short of italy's banks. we have problems surrounding some of the spanish banks. sues surrounding the credibility of them. there are issues surrounding what is happening in cs right now. we have activist investors taking a look there. can i think about european banks with trade -- which trade on a book value discount to their u.s. peers as an attractive option? freddie: that discount is a justified discount for the lack of quality in this business models. if you compare precrisis to post prices, they genuinely -- postcrisis, they genuinely computed. they are dimensioning in terms of their scale. they had up been able to invest rusesinesses because their was so leaky in the crisis. they have quality capital and ended up dominating the market. to me, it is talk and cheese on alk and cheesechla on the outside of the market. guy: will that change? the economic in data, if it improves, just from the sort of basics of the banking business, lending to companies, providing credit, getting those companies going again, you would have thought that there is some upside here. f

bank on that. tom: does this change the intellectual a change in desecration of banking? mr. es if you are -- equation of banking? are iner: it does if you investment banking, and it depends on how good your researches. if you do bottom mark equity research, focusing on corporate and corporate profitability. top-down macro research is becoming more commoditized. is our ticket revenues from that. so i think it depends if you are a strong equity house, like we are, there is research that goes along with that. mr. weber: i had a conversation with chairman bernanke recently. vice chairman fisher, who retires today or over the weekend as chairman of the fed, there is great -- wanted to the tightening -- quantitative tightening that will occur. do you share the confidence this will be an easy task? mr. weber: i am surprised all of -- at all of those is a monetary policy was a key factor in getting the economy going. supporting markets have a very denying views on the reversal of that process will not have some impact on the economy. i think you will see the in fact through -- the im

bank of england, but perhaps not so closely watched, the bank of japan meeting, i mean, the nikkei, ause today, it is still riding this global equities wave. japanese equities are doing very well on the back of this global growth, exports recently back of this global growth, exports rece ntly u p back of this global growth, exports recently up 18% year—on—year, and thatis recently up 18% year—on—year, and that is feeding through into strong earnings for japanese that is feeding through into strong earnings forjapanese companies, and the other thing you are seeing, on a relative basis, they tend to outperform when the yen has been weaker. what about the situation in spain? we have seen the euro come up a bit today against the dollar, are you watching that closely, or are you watching that closely, or are you less concerned about that now? we are not concerned about it. as we have seen it play out over the last couple of weeks, they are not in a position to leave, so it seems unlikely to us that there is a majority of people within catalonia who want to leave, and even if they did, the

of l.a. so be an l.a. city bank and why and they're well they're two big reasons for the push one is that there is this big divest movement where they wanted to do it was a bunch of young people love these young people they've got so much enthusiasm and the troops. because i was there as many reformers are. these people right here only here on whether or not an opioid. hopefully anyways so there is a movement to divest from wells fargo of course as in many other cities which have actually passed what was it why were they saying we got to get rid of wells fargo ok because they did these two million accounts for one thing and they were forcing the employees to do this or else. leave and so some of those people were actually wells fargo employees. and so they managed to get. the city council to agree to today divest from wells fargo but then the question is where do you put your money if you don't put it in wells fargo and so the obvious answer is a public bank really they're no they're being set want. big city money a

but that's what banks do. you sort of try to find that. the other thing that they do is they offer transaction services. a lot have gone to the banks partly because they left the money funds. i don't see it as an absolute negative. for the payments to banks, what you will hope for is that the fed at some point can reduce that. so i agree that the payments on reserves are higher than the banks funding costs. they are probably higher than the rates but, you know, a market rate could be say 1%. if you add the capital requirements, fdic insurance premiums they are paying for a little more. it is a very new system for them. they might be able to narrow that gap. instead of one and a quarter i could be 1.125 and then 1.25 and then much less. >> the large bank cost -- >> on average but the marginal cost -- i mean they are rereceiverr reserves. they have to fund them some how. i agree to narrow it but it's not entirely the whole 1.25. >> thanks, paul. >> yeah, so if we go forward the fed has had this argument that bank deposit rates are always slow

and we'll hear from bank of england's governor mark carney he'll sit down with steve liesman at 1:20 m. eastern time a lot of insight, that was a very odd picture of mr. carney we should change that. and bank of america, wells fargo and pnc report before the open and yesterday, sara, that cit ireport, in particular, saw citi shares down 3% the likes of bank of america was down 1.5%. we'll see if bank of america's report and wells fargo can allow them to bounce back a bit from yesterday's declines >> anything special you're looking for within wells fargo after the contentious hearings >> not really in the numbers, to be honest. we'll listen to the schools about that, but the interesting thing from the earnings yesterday was the focus on cards and consumer loans that's what derailed the citi share price. and it was only a small issue there, it wasn't like a big provision and it wasn't like and huge fall in terms of the pricing they are getting on the cards, but it came pretty soon after that july of yesterday where they come and significantly upgrade the outlook and the forward-looking

of monetary policy. thei: i want to go back to inflation conundrum, that global central banks in the midst of this almosts working out where the inflation is. that inflatione doesn't matter anymore and that perhaps inflation targeting is no longer the most relevant way for central banks to set policy? would you agree with that argument? >> i am not there yet. there is more to learn about what is happening in terms of inflation dynamics. inflation is starting to pick up across the world. i was in singapore, and they were reporting they are starting to see more positive inflation. toill be keeping an eye out see if that development happens in other parts of the world as well. a relative newcomer to the fed, you bring something others that you are the first african-american to had a regional bank, i'm talking about your expertise in housing. d, so you role of hu have a sense of housing, the mortgage market. you have a sense of being on board. are you concern the fed could make a move and a direction that would hurt the very people who are the most in danger of getting priced out of the housing market even w

in italy, shares of the world's oldest bank fell on the first day of trading since the government bailoutpaschi received a $6.4 billion lifeline from the italian government over the summer. trading has been suspended since last december. barclays might have to reassure investors after third-quarter results are released tomorrow. an slump in trading has had impact on the investment bank. that are questions about the bank's critical of business in the u.s. american, barclay's rival signaled they are preparing for more credit defaults. that's your bloomberg business flash. francine: thank you. the european central bank follow the fed's path when they began buying bonds, but is said to take a different route out of qe. the ecb will begin withdrawing stimulus. all will become clear when it makes its policy announcement tomorrow. simon and hans, thank you for joining us. what do we know about what the ecb's end game is? they want to tighten a little bit, but without rocking the boat at this point. >> they'd have a problem. inflation are stuck arounds 1.6%. cpi inflation will be as far out as q.

bank of america is set to report in the next few minutes with results of wells fargo around 8:30 easterntoday. we'll look at the u.s. equity futures now. the dow futures indicated up by 28 points. nasdaq up by 7.5 wilf cede yesterdsaid yesterday >> we weren't arguing. you stepped in when we were agreeing and you ruined the moment. >> chatter, chatter, chatter. >> you ruined the moment. >> i ruined your moment as you talked through my read i wish somebody sat on the other side of you. so while you read this, i could continue. >> sometimes people do >> go ahead, try reading >> aston martin -- >> hey, did you know -- >> taking the wraps offthe db 11 convertible in new york today. phil lebeau is joining us with a look at the car in a first on cnbc interview with martin does it have the things that shoot out from the hubcaps and they have spikes on them do they still do that? do they have that on this one? is it an option? >> reporter: it's an options package just for you let's bring in andy palmer, we'll get to the question of whether or not you have it rigged for those who want the special

the bank of england warning about thousands ofjobs going in the city of london.e a discount mechanism in18 supposed to be a discount mechanism in 18 months to two years saying what is going to happen. there are things you cannot factoring. the overriding issue is interest rates are low. where else do you put your money? people don't like the bond market, the equity market looks fully valued. there are various alternatives. people say, we will go with it for a the time being. when things change and interest rates are raised, things may start to change. we are only halfway through quantitative easing put up the scaffolding increase the value of assets. what happens when you strip that scuttling away? is the global economy strong enough to stand it? 0ne economy strong enough to stand it? one of our guests yesterday was saying, just cut through this stuff going on, the politics and everything else, and just look at the banks of what they are doing. yeah. the global economy still doing quite well. also underlying company is not doing too badly. 0n quite well. also und

it will be down to what the bank of england does. david owens was with us and he set the risk is that you could face some sort of buyers strike at some juncture in 2018 if we lurch towards the potential for a harder style brexit. gilt market three pips higher. the focus will be on spain and likewise with the central bank decision this week. that is going to be the outflow of these markets. bank of japan, federal reserve, jobs numbers, and the bank of england. does a lot of things for traders to fear or embrace. manus cranny on the markets. let me take you to a barclays note. barclays has come through with a series of downgrades since the u.k. house builders downgraded number of these due to performance and political measures on u.k. housing. group's trading down by 3.6%. simmons is trading softer this morning. that's the u.k. housing sector. we also have edf. it's trading softer this morning by 3.13%. the losers are on the left. that means the market is trading lower. there are some interesting traits on the right-hand side. spanish b

a busy couple of days for european banks. g, the parent company of iberia and british airways falling as much as 7% today. the biggest decline since the day after the brexit vote last year. struggling to raise ticket prices at the same prices -- at the same pace as rivals as the airline group boosts long-haul budget options to counter tougher competition encore u.s. through. shares getting hammered to down by almost 7%. on the flip side, we have linda today, third-quarter profit beating estimates providing a solid footing as the german triesrial gases company to get its merger in place with partner praxair. they are trying to appease regulators to divest billions of dollars worth of companies, there are about to start this 12 month countdown during which they have to announce significant disposals and order to win antitrust approval for the $41 billion tied up. they are attempted to create the world's biggest supplier of industrial gases and overtake their french rival. linde up.ay in julie: earnings and technologies are up. t

the bank of england is now preparing for tens of thousands ofjob losses which it believes will hit theree—trade deal. some will simply disappear as the financial sector shrinks across britain and some will be lost to london's competitor cities. although the bank believes 75,000 job losses is a reasonable scenario over 3—5 years, many are optimistic that a good deal will be signed on financial services because both the uk and the eu will not want to disrupt such a vital component of the economy and even with the job losses, britain, with over1 million financial services jobs, will still be by far the most important centre for banking in europe. let's go live to westminster and our assistant political editor norman smith. more. the timing of this report from the bank of england could hardly be more crucial, it comes on the day the brexit secretary david davis is briefing the cabinet this morning on the british readiness for leaving the british readiness for leaving the eu, different areas of the economy to assess how prepared they are for life outside the eu with and without a deal and o