the andant to see ferment that you operate in being part of banking unions, do banking unions hold thesion ways we saw the spanish and italian banks being with recently? jacob: that is to questions, we have no view. they need to do what they think is sensible and we will take note of that. in terms of banking union in general, they view is positive. it could make sense for them to be part of the banking union, there is a number of things that needs to be considered in terms of the danish banking market. generally, the idea of the notion of the banking union is something we are positive towards. you mentioned the recent of elements in spain and italy, we think that when you look at what happened in spain, that is an example of the system working well. situation before it becomes critical to the system. that has not changed our view on the banking union but there is a lot of analysis that needs to be done before anyone has a view on them joining or not. manus: your central bank is quite prolific in terms of the ascending and the noise they are making. they say there is a risk. risk, ofdu

to crumble and stock markets buoyed by italian banks rescue but critics say it has killed the banking union critics are saying deal to save italian banks is ruined credibility of banking union proponents of the deal claim that it was necessary to protect the prosperous than neato region and preventing damaging italy's nascent economic rebound so yes seventeen billion euros the italian taxpayer is on the hook for bailing.

to crumble and stock markets buoyed by italian banks rescue but critics say it has killed the banking union critics are saying deal to save italian banks has ruined credibility of banking union proponents of the deal claim that it was necessary to protect the prosperous then neato region and preventing damaging italy's nascent economic rebound so yes seventeen billion euros the italian taxpayer is on the hook for bailing out these banks and you notice what they say that created the people who are endorsing this bailout they're saying that well benito area so prosperous these are where the rich people live so we should protect them well you know johnny young first of all saying that won't be another financial crash in our lifetimes i mean she believes she is correct she believes that she controls the market that's the north or tarion regime for you they this is what she believes that the markets federal open market policy committing committee in the central banks have the ultimate authority on prices that's not a free market that's like capitalism that is a not arthurian regime and as far as

a banking union is an important element here.ra: they have identified copenhagen in helsinki as potential headquarters. street bankers beware, a new report from mckinsey says new technologies are poised to perform a third of work now at investment banks across trading operations and capital market businesses. that is your business flash for this hour. vonnie: still ahead, much more on that bloomberg scoop, robert mueller said to be expanding his probe into president trump's business transactions as well as associates. this is bloomberg. ♪ ♪ atnie: let's take a look where european markets are trading as we head to the close. lower now come off by .4%. gaining, but seeing broad-based losses. the storyuro has been since mario draghi spoke, and that has picked up also on dollar weakness. bond markets, yields coming down, particularly that 10 year yield, germany down one basis point. this is bloomberg. ♪ vonnie: live from london and new york. close. european nejra: equities finishing up the day. let's take to the action today. ecb day

we have strengthen the euro -- and strength in the banking union. we are working to make an even stronger. -- it even stronger. scarlet: ahead on "bloomberg best," more of the week's compelling conversations, including interviews from the conference known as the davos of asia. ceo's speak about trade and tax reform. a for us to be competitive on global basis, it is essential -- we are working very hard with them. scarlet: this is bloomberg. ♪ ♪ where we see the biggest risk is that as we roll forward, there are going to be changes in government policy, public policy will be made in may, that has an effect on industries. they will be changing technology. this will shift the competitive landscape quite quickly. ad there will be potentially pull forward in anticipation of such changes. who is going to win, who is going to lose, who is going to benefit, who is going to be penalized? if i'm allocating capital, i want to know where is the information to make those judgments, and i want some perspective on who is thinking about this so i can make those qua

we have strengthened the euro integration and the banking union.g to make it even stronger. ♪ scarlet: straight ahead on "bloomberg best," interviews from the conference known as the davos of asia. ceos from around the world speak out on topics of concern, along with tax concern. >> to be more competitive on a global basis, it is essential that it gets done. we are working very hard with them. scarlet: this is bloomberg. ♪ ♪ riskere we see the biggest is that as we roll forward, there are going to be changes in government policy. public policy will be made on made. back at have big effects on industries. think of german utilities a few years ago. there will be change in technology, which will shift the competitive landscape quite quickly. and there will be, potentially, a pull forward in anticipation -- because that is what markets do best -- of such changes. who is going to win? who is going to lose? who is going to benefit? who is going to be penalized? if i am allocating capital, i want to know to be able to make investments. i also want soft in

you can argue things like the banking union or the banking side of it -- the venetian banks being tiedurope was famous for having happening in europe. failed reform. all the things american businesspeople in particular scorn brussels for. some are beginning to move a little bit. that is all good, but everything in this narrative work gradually things begin to happen again. the idea in brussels that macron and merkel will combine and get integration in the eurozone. that is the key it. under the surface nobody expects the european union to reemerge as this sort of force for a greater union. people are beginning to help, especially in brussels and other parts of europe, that will happen is there is greater integration in the eurozone. there are a lot of economists who would look at that and say that makes sense. it definitely makes sense. it is very hard to have a currency union without some kind of banking union, which they still don't really have, and risk sharing. all those sorts of things. the fact that mrs. merkel talked about a european finance minister, that gives hope to that. if

have strengthened the banking union and we are working to make it stronger.aight the weeks compelling conversations, including the conversation known as the davos of asia. and trade is on the list, along with tax reform. >> for us to be competitive, it is essential we work very hard with them. scarlet: this is bloomberg. ♪ whoooo. you're searching for something. like the perfect deal... ...on the perfect hotel. so wouldn't it be perfect if there was a single site where you could find the right hotel for you at the best price? there is. because tripadvisor now compares prices from over 200 booking sites... ...to save you up to 30%... ...on the hotel you want. trust this bird's words. tripadvisor. the latest reviews. the lowest prices. ♪ >> where we see the biggest risk is that as we roll forward, there are going to be changes in government policy, public policy will be made in may, that has an effect on industries. think of german utilities a few years ago as one example. they will be changing technology. this will shift the competitive landscape quite quickly

we have strengthened the euro integration and strengthed in the banking union.working to make an even stronger. -- it even stronger. scarlet: ahead on "bloomberg best," more of the week's compelling conversations, including interviews from the conference known as the davos of asia. and c.e.o.'s from around the world speak out about topics of concerned. trade and tax reform. >> for us to be competitive on a global basis, it is essential -- that it gets done. we are working very hard with them. scarlet: this is bloomberg. ♪ ♪ >> where we see the biggest risk forward, there are going to be changes in government policy. government policy will be made, unmade. that can have big effects on industry. think of german utilities. there will be things happening with technology which will shift the competitive landscape quickly. a pullill be potentially forward in anticipation because that is what markets do best, anticipation of such changes. win or lose, if i'm money, i want to have that information and soft information about who is thinking about this so i can make quali

the eurotrengthened integration and we have strength in the banking union and we are working to makeonger. ♪ scarlet: straight ahead on "bloomberg best," more the weeks compelling conversations including the conference known as the davos of asia. speaking out about topics of concern, trade on the list along with tax reform. >> for us to be competitive on a global basis, it's essential that it gets done. we are working very hard with him. scarlet: this is bloomberg. ♪ ♪ >> where we see the biggest risks though is that as we roll forward, there are going to be changes in government policy. that can have big effects on industries. german utilities a few years ago is one example. there will be a change in technology. that's another example that will shift the competitive landscape quite quickly. there will be potentially a pull forward in anticipation because that is what markets do best and intensive patient of such changes. who's going to win? who's going to benefit? who's going to be penalized? capital, iocating want the information to make those judgments. want to have some soft info

so, does thatng damage the credibility of the eurozone banking union? about the cost of the deal. the italian government has committed up to 7 billion euros. but this is a commitment, not the costs of the deal. be cost of liquidation will computed at the end of the liquidation process once the asset management company, owned by the treasury, will complete the work of -- of working out and selling the assets that have not been transferred to the bank. we are confident that, in the end, the cost of the liquidation it ise minimal, and possible that it will turn into a profit. the liquidation is a procedure that is coparent with -- is coherent with the european framework. co-communication has been very clearly stated by the commissioner in his public statement. i think this measure, on the one hand, is complying with general principles that troubled banks should exit the market. and this is an exit be performed in an orderly manner with the help of the italian state. i think that -- mark: if i can ask you one final question, given your glass half full view

on the other hand, an important architectural feature of the european banking union is now typical, andit eu was doing it, you create exceptions. who still abides by the percent of gdp for deficit limitations? gdp fors by 3% of deficit limitations? it does undermine credibility. tom: if it is a european way of can they clear markets in europe to allow for a sustained economic growth and a lower unemployment rate? the jury is still out, isn't it? >> i believe so that the recent french election -- i think france, germany, it is an outlet to lead to a forms, labor market reforms in friends and that would be beneficial. and then, that might spill over into europe. in terms of institution building within the eu, i think there's more momentum now. we have to see how well macron can influence what he wants to do but followed give him the benefit of the doubt. i think europe looks different. unemployment remains the problem but i think we now have seen the beginning of dealing with that. time has come to raise rates. vonnie: deutsche bank chief economist earlier on bloomberg surveillance. mark:

but it's sounds like there is no banking union. >> there are growing pains. , from the vantage point everyone, the treatment of one bank versus another can be seen or not there. we should try to make the rules consistent and make sure everybody gets the same opportunity to do this for their own country. >> we have yield curves moving we're thinking about the domestic saviors and that has to be the next step. >> this will work. about thek evaluation. based on the value of the equity and the growth of the equity. that and thell for banking system needs consolidation that is capable of creating return on the equity. i would be a proponent of this and the problem is that this onated debt and solutions balance sheets. to create mechanisms solutions for the european banking system and would put pressure on equities and it is a bit of a vicious circle. ist is standing in the way politics and nationalism. politics and you have the new balance of europe with france and germany, rather than the u.k. and a push from to be a-- from france financial center. the conversation and we have a major ro

the does that mean -- banking union is no longer there? david: that is the key point. is the italian banking system improvement through the d capitalization with a very positive impact on systemic risk. basically, systemic risk is out of the system now. more of a concern, spinning out of control. on the other hand, an important architectural feature of the european banking union is now impaired, shall we say? eu way ofereotypical doing it, you create exceptions. who still abides by 3% of gdp? so it is a very european way of doing things. and i think it does detract from credibility. it undermines credibility. tom: specifically said -- it is a very european way of doing things. 1940, 1950, 1960 -- can they clear markets in europe to allow for a sustained economic growth and a lower unemployment rate? the rate -- the jury is still out. david: desperately so. i believe that the recent french election was a pivotal point. reforms, labor market reforms in france, it would be beneficial. and then presumably that might spill over. i think there is a lot more momentum now than

it is very hard to have a currency union without some kind of banking union, which they still don't really and risk sharing. eurobonds, all those sort of things. the fact that mrs. merkel talked about a european finance minister, that gives hope to that. if the rest of europe reforms, it is in germany's interest as the main beneficiary of the euro to support them. that is all great, but it depends on macron succeeding and we don't know it's going to happen. that is part one. part two was if you are a german taxpayer, humidity forcing yourself into a position where you might trust marcon a little bit, but any promises you make through the european union or the eurozone also apply to you. -- apply to italy, and italy has 120% debt to gdp. and italy is not a good be a friend to the euro at the moment. that is a problem people are thinking about now. that is a second layer of problems. the fundamental reasons are that europe has to start thinking about how exactly it should be. not everything the british said was wrong. oliver: up next, the story behind the far right information -- transformat

we talk about small banks and credit unions being able to make business loans, that's not a reason to take the giant banks off the hook. they are near collapse. when they have a prime plus four or prime loan it's a little shaky. you could do more than any of us to get small business loans made by local banks. the debt clock has been behind you, we've commented on that. i would hope any tax return that came out of your department would not increase that that. they are the umpire here as far as what increases and decreases deficit. the debt limit is just over the horizon and i hope you would use your voice to remind us it's not enough to deal with the debt limit and overtime. the harm is to our economy now because have to invest in the risk. you probably didn't think you'd be dealing with the media today. we needed tax treaty. your department to allocate one tax lawyer for a few weeks. in making the decision is whether to allocate them to the project, you'll be told we should make it based on the size of the transactions. i hope you would drag your department to add two more criteria. t

guy: does it undermine the credibility of the banking union?uite good discussions in the euro group about this. we are in a learning process after start of the banking union. we have the first bank resolutions and unwinding taking place. we learn by doing. what we find out is that there are certainly still some loopholes. tom: a little bit of technical difficulty there. we froze with london as we did. we'll come back with guy johnson and our team in london here in a moment. tomorrow, a very important interview for you. i just spoke to him at the council on foreign relations. robert caplain, the dall federal reserve president. a very important conversation about rates and the balance sheet and the unique experience of robert katlan. stay with us. this is bloomberg. ♪ >> welcome. you're looking at london. a big focus today on what is happening surrounding brexit. tom keene is in new york. guy johnson in london. first word news with taylor riggs. taylor co. trump is in paris to begin a two-day trip. he is meeting with macron and we'll talk about s

it is not just monetary union, we need political, fiscal, banking union for this to work for the nextbig ask but if we can pull that off, that would be a fantastic outcome. guy: and the world is underinvested in that? bob: to some extent. there are other idiosyncratic issues that we need to figure out. geographical placing with north africa and the middle east is not going to way. it has approached the turkey and russia -- these are difficult things to figure out. the germans have a special relationship with russia, which the rest of europe doesn't share. europe gets its own energy deals with russia. tensions down the road, but for now, let's enjoy it. we are happy to let people get boldin to this story, -- >> when you see the change starting to become clear, and if it hasn't, at what point do you make a decision -- this isn't going to work and i have to rethink my optimism. german elections, if that goes wrong and we haven't got the big changes by the end of this summer? what are you looking for? bob: single event, i don't know but we get a sense of how unifying he is. i think it is

you have to build foundations of a closer europe and banking union is part of it and fiscal policiesanna: less gross comes less crisis. guest: right. to mean's going anything, it's about sitting down and doing work when it is not terribly exciting. manus: thank you very much. --ing up, anna: it's harder than it seems. we will get an analysis next. this is bloomberg. ♪ manus: 6:20 a.m. here on the daybreak. we can smell the weekend already. -- testimony from congress. it happened over those two days. janet yellen said they conclude readings sayakened the central bank will fall short of the target. yellen responded to a question on the question of economic growth. >> i think it's something that would be wonderful. if you could accompany it, i would look -- accomplish it, i would love to see it. anna: sheet as a little skeptical. manus: the 3% is something that would be wonderful if you could accomplish it, but it would be quite challenging. 2% growth, various equity people have been through the door. you get double-digit earnings. share herpticismu sh skepticism? guest: i do share her

something about the rules and regulations that have been put down on our smaller community banks, credit unions. relief is needed out there. when we talk about rural america, the strength of the borrowing and lending in that area is with our community banks so -- and i hear a lot from community banks about reporting requirements as well. that were not included in the original home mortgage disclosure act. but some requirements that have come out because of rulemakings and rules and regulations. i hope that your may address some of those issues as well, that maybe not necessarily were included within the dodd-frank but you mentioned the community reinvestment act. maybe there's some other pieces of legislation as well that have within out the been out there, laws that you're addressing. >> it specifically raises the limit on qualified residential mortgages for community banks. i think as you appreciate, particularly community banks and areas that are rural with farming and agricultural, which is a seasonal business, they know how to make these loans. they understand how to underwrite these indiv

that's money that our community banks and credit unions won't be able to lend to our small businesses and to our families and to american workers. the cfpb's rule is bad for consumers, it's bad for community banks, it's bad for credit unions. it's bad for our economy. washington should be focused on creating more jobs, not more class action lawsuits. so, mr. speaker, it's time to fight the bureaucratic swamp, it is time to pass the resolution offered by the gentleman from pennsylvania, mr. rothfus. i appreciate his leadership in helping protect consumers instead of enriching trial lawyers. and i reserve the balance of my time. the speaker pro tempore: the gentleman reserves the balance of his time. the gentlelady from california. ms. waters: mr. chair, i yield myself such time as i may consume. the speaker pro tempore: the gentlelady is recognized. ms. waters: h.j.res. 111 is an affront to hardworking americans across the country. using the congressional review act, this joint resolution repeals consumer financial protection bureau's final rule to curb forced arbitration clauses in co

you talked about the importance of small banks and credit unions being able to make business loans to companies in our districts. that is not a reason for us to take the giant banks off the hook for prudential regulation. it is very near collapse. it nearly collapsed the economy. it is the reason for you to deal with the occ which is under your jurisdiction and have them when they audit banks and those banks have a prime plus for or prime plus five loan to a company that have ay, that they reserve of an extra 1% or 2% rather than 30% or 50%. secretary, could do more than any of us to get small business loans made by local banks. the debt clock has been behind you. you commented on that. that any tax reform that came out of your department or that was supported by your department would not increase that debt according to the cbo and we just voted in the house yesterday not to cut the cbo because they are the umpire here in washington to determine what increases and decreases the deficit. i hope you would use your power break up the too big to fail banks. the debt limit is just over the

last month spain's bronco couple are was a victim of the biggest bank run in the european union as a result of the bank spent billions of euros in emergency funds and needed to be rescued by government regulators to prevent similar scenarios from happening in the future the e.u. is proposing new measures that critics say. it actually makes things worse boom bust bianca sheeny has more on that for us now bianca how long have you regulators been working on this proposal so regulators have actually been working on it since the beginning of the year but once bunco popular have their crisis about a month ago they really have been hitting the ground running to get this official proposal to everyone for approval one of bank fails the impact structures far and wide across the economy is that it operates in and even though it's been almost a decade since the global financial crisis some countries still haven't agreed on how to deal with struggling banks and the european union a new proposal on how to do that could make the decision harder regulators are debating whether to allow banks to block

those recommendations you would support and reducing regulations to help our small community banks and credit unions? i am-- chair yellen: supportive of trying to reduce burdens on community banks. we have suggested that community banks, there are things that congress could do to help reduce burdens. for example, the volcker rule and compensation. >> you would eliminate the volcker rule for small community banks? where would you make the cut off? justll eliminating it or desk where would you make the arbitrary decision on what makes a small bank? chair yellen: we could discuss that. >> you do not have an idea in mind? i would love to know. chair yellen: i prefer to get back to you. >> ok, no specifics. chair yellen: there is a lot the banking regulators can do on the road. we finished a review. the banking regulators are committed to addressing concerns of community banks about the complexity of capital regulations to come out with a simplified capital regime. we have recently cut reporting banksements for community and are trying to extend exam tailor thetaylor -- work we do so more of it is done o

union to avert the first strike in 50 years. meton security and hospitality staff of the bank are threatening to go on strike. e trade union claims it will make the bank more effective. guitar‘s diplomatic row with four arab guitar‘s diplomatic row with four ara b states guitar‘s diplomatic row with four arab states is affecting its foreign reserves severely. the net international reserves fell by more than $10 billion injune to the lowest level in at least five years. -- qatar. four arab states cut ties with them alleging they support terrorism. unlike the majority of americans, or even the chinese, most japanese don't consider being an entrepreneur a good career choice. the government is trying to change that to be with me is the bbc‘s mariko oi. you have gone to japan for a series of reports on this. usually, entrepreneurship has the challenge of starting with enough money. in japan, there challenge of starting with enough money. injapan, there is plenty available. the government has been offering a lot of subsidies. that is because entrepreneurship in general creates jobs and activities in the economy. whe

turning to today's agenda, get ready for a flood of earnings reports, abbott labs, travelers, union pacific, bankf new york melon and blackstone those are some companies report bridgette opening bell then we will hear from ebay and microsoft after the close. >>> still ahead, the kuroda pop. asian stocks rally after the bank kicuts its inflation forecast. >>> and alphabet wants some intel on uber, and they are going to court to get it we'll explain when "worldwide exchange" returns. in the meantime, a little carrie underwood to start your morning. the new guy? what new guy? i hired some help. he really knows his wine. this is the new guy? hello, my name is watson. you know wine, huh? i know that you should check vineyard block 12. block 12? my analysis of satellite imagery shows it would benefit from decreased irrigation. i was wondering about that. easy boy. nice doggy. what do you think? not bad. wyogig-speed internet.me? you know what's not awesome? when only certain people can get it. let's fix that. let's give this guy gig- really? and these kids. and these guys. him. ah. oh hello- that lady.

considering that you can do in the administration to better taylor rules to your community banks and credit unions? >> mr. chairman, thank you for that question. let me first say, we are very fe focused in making sure community and regional banks grow. they account for 50% of the assets in the american financial markets and that is problematic. what we want foodo is make sure there is robust lending, particularly in community banks. i have met with many people, these are not republicans or democrats. these are hard working business people particularly in agricultural communities, particularly in small manufacturing communities that constantly complain that the community banks are nut able to lend because they are over burdened by regulatory issues. and i firmly believe that community banks no how to make loans. let me say they should be regulated and can't strive. we are very focused on raising the burden and look forward to working with the community on it. the treasury report recommended raising the threshold for the application of the standards raising it from its current 50 billion threshold t

they said it would establish a european union banking base ahead of britain's official departure from the eu. shares fell to 89.21 and select energy services, which provides water management to the oil and gas industry is merging with privately held rival lock water energy solutions. it's a deal worth half a billion dollars. shares of select energy services soared almost 20% to $14.92. >>> united airlines beat earnings estimates and saw profit and revenue grow as we reported yesterday, but its outlook is weighing on shares this day. t pacificr caught off guard b route, but the ceo says the airline is not off track. >> with regard to third quarter guidance again, i think united is firmly, i mean firmly, on the right path and a quarter does not make a difference. the simple difference is others have guided hire. prt of it is they're cycling some issues from last year and it's the forecast. united fell nearly 6% today ch. >>> and united generates a lot of its revenue from fees. the most of any airline, but think aren't new report from id show that is the top ten airlines worldwide genera

what we have seen is that despite the strict banking rules put in place by the european union that weave seen some rescue plans and that allows us to focus on what is really the important point for the eurozone banking which is can we see continued credit growth and can we therefore see continued profit growth? i think that is crucial for a sector that has rebounded really quite strongly since late last year. we do need to see a return of .onfidence balance sheets. more importantly the potential for earning the momentum to resume. we still have carsten nickel's. it may be a good thing for italian banks. is it a good thing for the eu? is the eu really loosening up its rules? is this eroding the authority of the eu to regulate banks? there's a technical perspective on this question in brussels and probably the answer would be no. it's a pragmatic approach from the european side. of course there's a political interpretation that runs along those lines especially in these bailout skeptic northwest european states. finland, the netherlands and so on. goingsk is if there is a impression of

smith worked at union bank where co-workers declined to work on camera. the couple was known by employees at sunrise market as well as this independent car dealership. a man who works here said mia and ed were engaged at one point. also, that he just stopped to talk to ed who was with his grandson saturday afternoon. he was shocked to hear police arrested smith. she'll be arraigned tuesday afternoon. in burlingame, melanie woodrow, abc 7 news. >>> police arrested a man after an early morning shooting at the santana row complex. residents reported gunshots from inside one of the units at the apartments. police say one bullet apparently passed through the wall from one unit to the other. police made contact with two men inside. officers detained them and made an arrest. no one was hurt in the shooting. >>> the abc 7 news i-team has uncovered new information on the terror case against a west oakland man. >> prosecutors say he was willing to die in a suicide bombing here, but that he was planning a series of attacks. >> dan is here with the story you'll see o

francine: how to respond to critics that you say -- that say the bes rescue plan puts the banking unionead in the water? mr. mustier: i do not think it does. it is very important to look at the letter and spirit of the law. tian banks had an original systemic problem, which could've been much worse. you have to look at the alternative. and the solution found by the government is a very good solution and a very good -- from time to time, you need to take pain and take it under two conditions. it does not mean that nothing happens but you have restructuring. and then competition is still going on. i think these two conditions are fully met. francine: we talked a little bit about your strategy, and you are saying there is a plan, a marathon, three-year plan. you came in charge of body year ago. how, overall, is the execution going? are you comfortable? three-year: it's a plan. but in fact it is a 20 year exercise. the banking sector is going to a very large transformation because of technology, of client changing. so, it's an adjustment because it is a 20-year. known to a certain number of

the unite union says bank of england workers are to stage a four—day strike from the 31st ofjuly in aill receive no pay rise at all this year. president trump has been accused of inciting violence against journalists, after he tweeted a spoof video showing him assaulting a man with a cnn logo super—imposed on his head. in the wrestling video, he's shown punching the cnn character repeatedly. the president regularly accuses cnn and other media outlets of broadcasting what he calls, "fake news". it's been re—tweeted more than 250,000 times. that's a summary of the latest bbc news — more at 10.30. thank you very much. here's some sport now with 0llie. the gates open at the all england club in the next half an hour. the queues will start moving very soon. andy murray should also be arriving very soon. he says he's good to go for wimbledon fortnight but it's looked touch and go for the past week or so. he's been putting in extra practice this week to try and shake off a niggling hip problem. remember, he lost in the first round of queens a fortnight ago and he also had to pull out of a cou

flex ability on behalf of europe or is it a problem for the banking union? n the direction of consistency across the board. in italy, retail investors support of banks when they needed them the most. the government doesn't want to let them down ahead of an election. that will be great for the antihero party, to rile up these retail investors. anna: so in terms of the banking sector, reformers is the one reason to buy or maybe just the growth story around the eurozone. >> it is interesting, look at italy, for instance. cheap,till underperforming by 50% or so in the last decade. if you look at a number of countries, even france, banks, need higher oil prices because it moves the inflation outlook higher which helps draw you in the mood to increase rates, which helps the banks. so europe and the eurozone is all about higher inflation, oil prices at least stabilizing. doing a little bit higher, that will really help. anna: it is about oil being the solution, higher oil prices are what we need in the eurozone. oil prices were supposed to help the consumer. >> in t

smith worked at union bank where co-workers declined to speak on camera. not far from the home, the couple was known at sun rise market, as well as this independent car dealership. a man who works here says me and ed were engaged at one point. also that he stopped to talk with ed, who was with his grandson saturday afternoon. he was shocked to hear police arrested smith. he'll be arraigned tuesday afternoon. melanie woodrow, "abc7 news." >>> a 69-year-old woman died today in a collision along niles canyon in fremont this afternoon. the victim's car crash eed and went off the road. drivers are being detoured away from the road at mission boulevard in fremont and main street. >>> chevron reached an agreement over a fire from five years ago. the huge fire in august of 2012 sent thousands to the hospitals complaining of breathing problems. alyssa harrington joins us live to explain the terms of the settlement and why some still don't feel safe. >> reporter: osha did withdraw and amend some of those citations, so critics feel that chevron got off easy. osha, ho

later cashing the check at the education system federal credit union where he banked. montgomery college confirms he is now on unpaid administrative leave. that said, his name is still listed on the school's felony criminal case which carries a penalty of up to 15 years in prison. he gave police the montgomery village post office as his mailing address. we managed to find him on linkedin and sent along a message, but so far we haven't heard back. at montgomery college in rockville, i'm kevin lewis, abc7 news >> thank you. firefighters are still working on a fire involving multi-approximately row homes in -- multiple row homes in south baltimore. the flames spread to eight homes on hazel street near curtis avenue if you are familiar with the area. two of the homes we are learning are vie can't. one person was taken to the hospital and a firefighter suffered minor injuries. the cause of the fire is unknown. jonathan: well, as we get ready for independence day, a sign of freedom missing in the d.c. area. replica of a liberty bell. as ryan hughes reports there is a push to

smith worked at union bank where co-workers declined to speak on camera. not far from the home, the couple was known at sun rise market, asell as this independent car dealership. a man who works here says me and ed were engaged at one point. also that he stopped to talk with ed, who was with his grandson saturday afternoon. he was shocked to hear police arrested smith. he'll be arraigned tuesday afternoon. melanie woodrow, "abc7 news." >>> a 69-year-old woman died today in a collision along niles canyon in fremont this afternoon. the victim's car crash eed and went off the road. drivers are beg detoured away from the road at mission boulevard in fremont and main street. >>> chevron reached an agreement over a fire from five years ago. the huge fire in august of 2012 sent thousands to the hospitals complaining of breatng problems. alyssa harrington joins us live to explain the terms of the settlement and why some still don't feel safe. >> reporter: osha did withdraw and amend some of those citaons, so critics feel that chevron got off easy. osha, however, s

. >>> joining us now to discuss, chief financial economist at mufg union bank.is, good morning to you thank you for joining us i don't think anyone was expecting record highs as janet yellen speaks, but that's what we got does the rally continue? >> remember in the old days when the fed was going to withdraw items stimulus, stocks would crater, thank goodness -- ago yn >> maybe the fed doesn't matter as much as it used to. stocks are doing their own thing. >> as to to what extent does that not matter because of a crucial phrase that we're near the neutral rate, ie the normalization is in fact not very far from where we are peak of interest rates might be quite low. >> i'm not a big advocate of that they kind of torture themselves and said that this natural rate of interest is really zero i don't buy it i've seen so many mistakes made by the fed over the years. with the use of target policy off of those money supply cones and stuff like that. i don't think this is going to be one of those ideas that it will be with us forever. anyway, let's put this way, a couple

banks. i visited with your predecessors and all of the variety of regulators that affect our financial institutions, credit unions and banks in particular, but i would highlight how important it is, so at least you have heard from a third senator this morning, senator language forward talked about lack of mortgage lending. that's one of the most egregious examples of over regulation. banks don't make loans because it is not a credit worthy borrower. they don't make loans because of the overregulations, the burden and costs and associated penalties of a minor error. that's not anything that rural america in particular can withstand. we have looked to our local lenders to be the pillars of our community, to provide that funding for someone who wants to buy or remodel or build a home, and it is not happening. secondly, particularly today with commodity pries y prices ie agriculture sector they are, i have concern that what has happened in the past when times are tough is that long-time relationships between lenders and farmers and ranchers, know the family, know the business plan, have a sense of their character, th

now have a man in custody accused of robbing a bank, high-jacking a car and holding three people hostage. police say william ethridge entered a credit union last night and robbed several bank tellers at gunpoint. they say he then took a male teller hostage and car-jacked a married couple. police say he made the couple drop him off. etheridge was later caught trying to buy a motorcycle with his stolen money. this morning all three-victims are okay. it's not yet known what charged ethridge will face. outrage this morning over a disturbing video from florida posted on social media. it shows a live shark being dragged by a boat a high speed. the state fish and wildlife conservation commission says it's unclear if any laws were broken -- but they want to talk to the boaters responsible. they're asking for help to identify the people in the video. happening today - a huge soccer match at fed-ex field - and traffic is today. john gonzalez joins us live with more on this. john as john mentioned, traffic noon today. find out about delays by signing up for text alerts at wjla dot com. a moment to remember a d-c broadcasting legend. jim vance was ho

regulatory relief is in order could you tell me what you would support to help our small community banks and credit unions >> i am very supportive of trying to reduce the burdens on community banks. we have suggested that community banks, there are things that congress could do to help reduce burdens, for example, volcker rule and incentive compensation. >> are you saying that you would eliminate the volcker rule for small community banks? >> wouldn't apply it for -- >> where would you make that cutoff something you would be interested in overall, eliminating the volcker rule, or where would you make that arbitrary decision on what makes a small bank >> we could does that. >> so you don't have an idea in mind where we could actually do that i would love to know honestly, i'm asking your -- >> i would prefer to get back on -- >> okay, so we don't have a specific cutoff. >> but i think there's a lot that banking regulators can do on their own we've finished in the grip review the banking regulators are committed to addressing concerns of community banks about the complexity of capital regulations to come ou

institutions from company-run stress testing requirements and reducing the burdens on community banks and credit unions. do you agree that it would be appropriate for congress to act in each of those areas? >> i do. >> thank you. and could you please give the committee after this hearing, i don't want to use up my time on this right now, some additional suggestions of ideas for legislation the committee could consider to reduce the burden in these areas? >> yes, we would be happy to do so. >> thank you very much. next, at our hearing last month governor powell said the federal reserve is reviewing the volcker rule. he noted that there is room for eliminating or relaxing aspects of implementation regulation that don't directly bear on the volcker rule's main policy goals. can you elaborate on the fed's review of the volcker rule? >> we look forward to working with the other agencies that have a role in rule writing. it's a very complex rule, partly reflecting the legislation that i think we could find ways to reduce the burden and is shut be a multiagency effort. >> and many of us are aware that the mul

by the way, missouri today -- i should mention that bank they robbed owned by union militiamen, it existed before the civil war. it was one of those banks that was owned by leading secessionists who cut aid check cuttings game and lost control of the bank. the banks, that is where the money is, and yet they were also political targets. these were very shrewd people. when jesse james robbed to trains that is because he understood the national bank act. the creation of the greenback and giving national charters, they were required by law to keep reserve deposits in new york. so, all your long, they are shipping cash to new york banks and when the harvest happens, they ship cash back so everybody has cash for the transactions of the harvest, etc. there's a seasonal flow of cash. it's going by express car. they usually did not rob passengers. they robbed trains going the right direction. it was flowing south at a time when they were flowing south for the cotton harvest. these are not rubes finding some easy excuse. if we know it better -- i could try to make an exaggerated thing to say jesse j

citigroup has settled on frankfurt as trading hub in the european union. bank to present that option to its board of directors this week for approval. they said the choice to expand the banks existing broker-deal in germany will create between 150 and 250 new roles there. lufthansa has raised financial forecast after up -- operating profit doubled in the first half of the year. the airline said adjusted earnings before interest and taxes in 2017 will rise "above the previous year." that topped earlier productions the measure would be slightly below. that is your bloomberg business flash. a guy? guy: juliette, thank you. there is little chance of a "quick fix" of the gulf standoff over cap are with country's they want a solution that will stick. uae's foreign affairs minister said the four-nation bloc wants to know it can be trusted and is transparent. a says they are ready for process that could take "a very long time." >> weeks, months, as long as it will take them to realize that this is not a crisis that we are looking for a quick fix. this is a crisis we wa