nejra: that was a board member of bundesbank speaking to david westin. to come on "bloomberg markets: rules & returns," are repeals of dodd-frank and the volcker rule dead on arrival? president trump called the legislation a disaster. how likely is it that strict regulations will be dismantled? we go to d.c. next. this is bloomberg. ♪ ♪ nejra: welcome back to "bloomberg markets: rules & returns." i am nejra cehic at bloomberg's european headquarters in london. rewriting the rules of washington, president trump has called dodd-frank a disaster, but is a fix in the works? when it comes to the volcker rule, how likely is a repeal? joining us for more is our bloomberg government analyst from washington, d.c. nathan, great to see you, it is are for all the presidents talk about repealing dodd-frank, it is going to take a lot of time for some of the key issues to be rolled back. let's talk about the volcker rule first and foremost. the congressional talk, is that just talk? natahan: it is just talk. you will see people trying to produce bills to repeal or chan

nejra: that was a board member of bundesbank speaking to david westin. to come on "bloomberg markets: rules & returns," are repeals of dodd-frank and the volcker rule dead on arrival? president trump called the legislation a disaster. how likely is it that strict regulations on wall street will be dismantled? we go to d.c. next. this is bloomberg. ♪ ♪ nejra: welcome back to "bloomberg markets: rules & returns." i am nejra cehic at bloomberg's european headquarters in london. now rewriting the rules of washington, president trump has called dodd-frank a disaster, but is a fix in the works? when it comes to the volcker rule, how likely is a repeal? joining us for more is our bloomberg government analyst from washington, d.c. nathan, great to see you. for all the president's talk about repealing dodd-frank, it is going to take a lot of time for some of the key issues to be rolled back. let's talk about the volcker rule first and foremost. the congressional talk about volcker, is that just talk? natahan: it is just talk. you will see people trying to produce

being held in new york apparently no german citizens knew that and thus began this process of the bundesbank repatriating their gold from america so we caused a firestorm of controversy in germany when we got somebody inside the buddhist bank to admit apparently for the first time that most of germany's gold was held in fact overseas in the u.s. and in france and they repatriated more than three hundred tons of gold back to germany the cost of doing this i understand was something on the order of thirteen million euros and huge bill to move it in the crypto space of course you could have moved three hundred million a billion times billion from. new york to frankfurt in instance amos lee at a cost of depending on the transaction fees and what a lunatic is responsible for a passion power this minute maybe twenty bucks let's go back to the numbers because it's actually five hundred seventy four tons that they moved the buddhist bank one of the biggest holders of gold in the world moved six hundred seventy four tons even more from the vaults of the federal reserve bank of new york and bank to fr

bundesbank it's humid out but he still. has to kind of. program because i'm not getting married yet that he's in there you. don't get there i haven't decided i've. got no money. to spend time and love one second me that. i would either but i want i was going to get us through it. harkened michelman much as i was in a mess about it will know when we still make it because i'm in the region where you . challenge all to say you're particular as to the f c o. y and they there has to be. given a lot of them not just these you see the elephant. yeah whatever label you have no . getting in your. ear when he can not indeed a little limits on the novel less easy to finish and that even with the ending up. in the. whole of my. system the on this news comes. out of. us all what are. you staying. you know if they don't see on your head. that their mental they thought the last one they see their thief or see they could not say it again sam made me though the. end where they knew we'd have a new openness in those in the middle then as now there's a lot o

they broke any link to the idea that this was a bundesbank, central-bank motif, they would never do qed they went massively into qe and groundbreaking in terms of a central bank going negative on interest rates. they were chasing money out. as if that was not enough, they have moved on to political fragmentation, populism, concerns about the netherlands and austria, the greek package was in the balance, concerns in italy, and the le pen situation. so now, if you fast-forward, you are past the dutch, the austrian, the french outcome was phenomenal as far as europe is concerned. italy is kind of the only outlier there. the money is now coming back. europe is a place where the underlying fundamentals of being a savings block, sort of like japan which had an ironically , strong currency is there. now they now have a cyclical upswing going on. the politics are coming together. and unless you have steady outflows on the portfolio side, this is going to be a strong currency. jonathan: that all makes sense except bund yields at -76 basis points, why do you want two-year notes out of germany wh

that is the message from bundesbank.hear what he has to say on regulation, over banking, and the low rate environment. welcome to "bloomberg markets: rules & returns." i am nejra.

being held in new york apparently no german citizens knew that and thus began this process of the bundesbank repatriating their gold from america so we caused a firestorm of controversy in germany when we got somebody inside the buddhist bank to admit apparently for the first time that most of germany's gold was held in fact overseas in the u.s. and in france and they repatriated more than three hundred tons of gold back to germany the cost of doing this i understand was something on the order of thirteen million euros and huge bill to move it in the crypto space of course you could have moved three hundred million a billion times billion for. new york to frankfurt. instantaneously at a cost of depending on the transaction fees and what lunatic is responsible for a passion power this minute maybe twenty bucks let's go back to the numbers because it's actually five hundred seventy four times that they moved the buddhist bank one of the biggest holders of gold in the world moved six hundred seventy four tons even more from the vaults of the federal reserve bank of new york and bank to france t

nejra: that was the board member of bundesbank speaking to david westin.n "bloomberg markets: rules & returns," are repeals of dodd-frank and the volcker rule dead on arrival? president trump called the legislation of disaster, it how likely is it that strict regulations will be dismantled. this is bloomberg. ♪ ♪ welcome back to "bloomberg markets: rules & returns." in bloomberg'sc european headquarters in london. rewriting the rules of washington, president trump has called dodd-frank a disaster, but is a fix in the works? when it comes to the volcker rule, how likely is repeal? joining us for more is our bloomberg government analyst from washington, d.c. you, it isat to see going to take a lot of time for some of the key issues to be rolled back. let's talk about the volcker rule first and foremost. the congressional talk, is that just talk? natahan: it is just talk. you will see people trying to produce beals to repeal or change the volcker rule, but it will not get pass the senate. the volcker rule is still subject to the filibuster. you need 60 votes.

this is from jim records weird things are happening with gold so he mentions the fact that the bundesbank has received returned repatriated its gold three years early then he mentions the fact that steve minutia the treasury secretary of the united states and mitch mcconnell who's a senator from from kentucky where fort knox says they were pictured going into fort knox a new member statement issue was holding those bars of gold well he's asking like why why now why are they there and like treasury secretaries never go to fort knox they don't ever want to be pictured holding gold because that might so the seeds of doubt into the minds of global investors the answer may lie in the fact that the treasury is running out of cash and could be broke by september twenty ninth if congress does not increase the debt ceiling by then but the treasury could get three hundred fifty five billion dollars in cash from thin air without increasing the debt simply by revaluing us fold to a market price u.s. gold is currently officially valued at forty two dollars and twenty two cents per ounce on the treasur

this is from jim records weird things are happening with gold so he mentions the fact that the bundesbank has received turned repatriated its gold three years early then he mentions the fact that steve minutia the treasury secretary of the united states and mitch mcconnell who's a senator from from kentucky where fort knox says they were pictured going into fort knox a new member statement issue was holding those bars of gold well he's asking like why why now why are they there and like treasury secretaries never go to fort knox they don't ever want to be pictured holding gold because that might so the seeds of doubt into the minds of global investors the answer may lie in the fact that the treasury is running out of cash and could be broke by september twenty ninth if congress does not increase the debt ceiling by then but the treasury could get three hundred fifty five billion dollars in cash from thin air without increasing the debt simply by revaluing us fold to a market price u.s. gold is currently officially valued at forty two dollars and twenty two cents per ounce on the treasury'

this is from jim records weird things are happening with gold so he mentions the fact that the bundesbank has received turned repatriated its gold three years early then he mentions the fact that steve minutia the treasury secretary of the united states and mitch mcconnell who's a senator from from kentucky where fort knox says they were pictured going into fort knox a new member statement issued his hole in those bars of gold well he's asking like why why now why are they there and like treasury secretaries never go to fort knox they don't ever want to be pictured holding gold because that might so the seeds of doubt into the minds of global investors the answer may lie in the fact that the treasury is running out of cash and could be broke by september twenty ninth if congress does not increase the debt ceiling by then but the treasury could get three hundred fifty five billion dollars in cash from thin air without increasing the debt simply by revaluing us fold to a market price u.s. gold is currently officially valued at forty two dollars and twenty two cents per ounce on the treasury

same thing the fed was doing to the bank of japan was doing that there was a vestige of the old bundesbank that they were anti inflation that they would never monetize debt and yet they want to did it and drag has been doing it and they don't seem to care about it and but the capacity to continue on this game with the bank and switzerland buying back by apple stock and buying assets in the bank of japan buying e.t.f. i mean i hear what you're saying well i don't see why now should this and i mean i can and i can hear the whole another fifteen trillion dollars worth of us going forward so draggy is running out of booms to buy that's one reason and let's just go back to two thousand and twelve though you remember the european debt crisis circa two thousand and twelve. when you had a greek to your no ten you're no at forty percent ok and it's allensworth seven percent portugee seven eight percent so you know they had to come in because the amount of debt extent in the world today requires low interest rates or the whole charade implodes as i said before so i mean when can they ever get out of

who will be speaking with the executive board member at georgia bundesbank. where european markets headed today. north korea test of the nuclear bomb on sunday. we saw the price of gold, the price of the yen, government bond yields decline as well. yen, swiss franc were the currencies of choice. the dollar euro up against the pound today. the bond board highlights the fact that it is all about haven assets today. no trading in the u.s. because of the labor day holiday. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. announcer: the following is a paid advertisement for time life's video collection. >> from beautiful downtown burbank. announcer: it's the best of rowan and martin's "laugh in," exclusively from time life. john wayne: y

. >> we just completed a major survey together with our colleagues from bundesbank on the impact of low interest policies on all german banks the impact is massive and creeping into the balance sheets more and more. the longer it continues, the higher the risk for change of interest rates is increasing >> ten years af s after the onsf the financial crisis, how solid is the german banking scene. >> it's much more solid compared to ten years ago when the crisis broke out. both the amount as well as the quality of capital has been massively increased, risk management procedures have been improved governance procedures have been improved remuneration has been curbed a wide range of things have been do done, but no regulatory system and no financial market in the world is unvulnerable. there can be and there will be new crisis coming up in the future >> one potential crisis coming up from bubbles in the market, and here at the conference people are talking about bubbles in the market. how concerned are you that we are going to see perhaps a massive price correction in the market >> we are co

the boss of the bundesbank has apologized for this. mess of communications by telling the wall street journal that we need another realignment. in fact, it was just a monumental error. they allowed us to get out. losing a lot of money. the guiltyeren't party. the bundesbank lost a lot of credibility after the. francine: do you agree with that? lord lamont: i think the mistaken joining the erm, i was not part of that decision but i think looking back to mistake was that the inflation differential between ourselves and germany was so huge. that had originally been part of the conditions mrs. thatcher had said must be satisfied before we join, the inflation rates converse but they had not. that meant interest rates in germany and britain were wide apart and it was difficult or should've been wide apart, and it was their difficult for britain to maintain its currency without having inappropriately high interest rates. that was the root of the whole problem. francine: thank you both. too short of a time. author of "six days in september" an

are looking atwe the possibility of having six different parties going into the bundesbank. 5% of theaveast vote. that is one of the main stories , the true the main main bar, which is of course who is going to win or run this country. german political scene has long been one of coalitions, but even more so when four becomes six, as you say. what about the prospects for the far right? this looks set to be the first time we see a far right party entering the national parliament since the second world war. this could change even if they are not in any position of power, this could change the and dynamics of the national debate in germany. matt: certainly. to some extent, you are seeing that in government and referendum around the world. itthis case, germany's case, looks like the far right party is only going to get into the double digits. %.ey are pulling around 10-ish there is concern germans are not willing to admit they intend to vote for the afd and they could score higher on sunday, but it is unlikely they will get, say, unit to join any kind of coalition. in any case, nobody would j

two hospitals and the bundesbank germany's central bank. were also forced to evacuate. our correspondent daniel coop has spent the day with some of the sixty thousand evacuees in frankfort he sent us this update. but i can tell you i've never seen frankfort like that frankfort that financial capital off a germany with big parts on lock down to day. the day started already with big delays because about three hundred people simply said we don't see a reason to leave our home but the police was very strict throughout the day. they were saying that the raid does a one point five kilometers needs to be empty not a single person was allowed there during the bomb diff usual now. people are very happy and excited to go home mostly also elderly and sick people i was. all day and for inside and in front of. one of the exhibition halls here in frankfurt where many people came that nominee lift and senior citizen homes and now can return back is going to. be a day that frankford for sure is not going to forget. are you wanna go back to our top story and that is the debate tonight b

coming up, the bundesbank board member will be joining us.ok at the potential companies moving to germany from london. this is bloomberg. ♪ ♪ it is the call after yesterday's big selloff. s&p futures down by three points. a flat over in europe. take a look at other asset classes. the 10 year yield pretty much goes nowhere after moving lower by at least 10 yesterday. the euro dollar inching higher as the dollar is mixed on the day. crude up by 1%. we do have the trade balance coming out for july and it is -$43.7 billion. will be exporting more than we are importing. the weaker dollar will help those exports as we move forward. the trade balance down $43.7 billion. byid: we are joined now bloomberg fed reporter matt basel are -- by fed reporter matt. yesterday we heard from the fed president hu warns they are doing some damage to the economy because of rate hikes. hikes areur rate actually doing real harm to the economy. it is very possible our rate harks -- rate hikes are leading to slower job growth, more people on the sidelines, lower wage g

i look at the credit balance which the bundesbank is continuously building and the borrowing via thearget two system, the balances that never square back to zero. and this is getting bigger and bigger. francine: for the help of the european union, can we care who's finance minister in germany? simon: given his popularity and germany, i would be very surprised if there was any change, and given that we're strongly expecting another cdu led government, they are not going to abandon their key principles of balance budget. and not going to give away much more by way of money unless other countries give away more fiscal -- theall of macron's claims french public is not going to go along with giving away huge amount of fiscal power. in terms of integration, a little tough around the edges but not a huge step forward. francine: how much of a headache for mario draghi is a high eruu? it depends on which country you are looking at. the less could, for competitive economies like france and italy, next year it could reduce export growth slightly. will beably inflation around a percentage point

puglierin: that will be a new problem because the ife will enter the bundesbank as they third-biggestnot seen not in a very long time. them really reaches the right wing positions, sort of lining with the fascist position , so to deal with them is really a thing of culture in the german government. if there will be another will be thet largest opposition party, the afp will always be the first to answer angela merkel in the parliamentary debates. i think that will definitely change the tone in parliament. puglierin, thank you so much, german counselor on foreign relations. we will speak with ellen zentner of morgan stanley. we have much to talk about as well. i want to talk about preparing for the morning. thank you for listening to our conversation on bloomberg television. when you get in the car, bloomberg radio, "bloomberg daybreak" coast-to-coast, serious xm channel 119. this is bloomberg. ♪ taylor: this is "bloomberg surveillance." i am taylor riggs. let's get to bloomberg business flash. breaking news this hour -- a big blow for uber in the u.k. london is not renewing the operat

what euro does the bundesbank need to do but -- need to deliver?needs right now. michael: the euro has decreased against the euro dollar quite a lot and that means we are not as competitive as we used to be at the beginning of the year in export sales. i think the level we reach right now, like 120, is a reasonable level and we should not complain too much, because a level of one or 105 that we had at the beginning of the year is definitely too low. i think we are pretty ok with the level we are now. i even think most italians can live on that and most other countries can do. francine: what worries you the now,about europe right trying to figure out the german position of the greek banks, where are we now? are we too optimistic about the future of europe? michael: not too optimistic, we have done a lot of work. -- although the situation isn't stable yet, they overall debt is far too much in comparison to gdp, but the other countries, in particular spain also has been a -- and italy seems to be on the right way, the right track. i hope that macron i

bundesbank president sees your area policy staying loose even after bond buying ends. >> even after the end of net buys under the qe program, the monetary policy of the ecb will continue to be extraordinarily accommodative. anchor: a very warm welcome everybody to "bloomberg daybreak: europe." it is friday morning, our flagship morning show. i am anna edwards. matt: and i am at miller in berlin. quite a night for markets. quite a rocky ride. the missile over japan sent a lot of people running first aid haven trades that kind of fizzled out. ina: certainly putting guam range. that did not seem to make the market worry more this time than last time. just to tell you briefly what is coming up in the program, let us get our viewers up to speed. jpmorgan spoon founder tim martin joins us for the first interview of the day to talk about earnings and brexit. but matt, you dive into what has been moving markets are not moving markets over the last 24 hours or so. you see the second missile launch in japan in as many months, putting guam within range of these missiles. we did see it move the yen