the deaths resulting from bank bailouts during the financial crisis germany's central bank the bundesbank announced the national debt filton sixty four percent of g.d.p. at the end of last year germany is working its way closer to the sixty percent ceiling agreed upon by all eurozone countries most of germany's debt load came from working off shaky financial assets it it had acquired as the government bailed out financial institutions that had suffered crippling losses. germany's economy might be doing well but the country is suffering from a chronic shortage of skilled workers the new coalition government plans to address that issue with an immigration law focusing on skilled trades but companies in germany have been recruiting abroad for years one of them full based r. and r. and s. solution has long been taken advantage of a regulation allowing skilled construction workers to enter the e.u. to fill shortages. these migrant workers in the german town of fulda play some basketball after work. they're bakers masons and electricians. one of them is thomas the gift to each and electrician w

ran up a bailing out banks during the financial crisis germany's national central bank that's the bundesbank announced the national debt fell to sixty four percent of g.d.p. at the end of twenty seventeen so germany is working its way closer to the sixty percent ceiling agreed upon by euro zone countries most of what germany's dead load came from working off shaky financial assets it had acquired as the government to bail out financial institutions that had suffered crippling losses were german business leaders had high hopes that the tarnished relations between germany and russia would improve in twenty eighteen instead things could deteriorate further as bill and his expanding for diplomats to russia the german government is joining other european states in a concert at response to a nerve agent attack on a former russian spy in england which britain blames on moscow german industry fears this new diplomatic crisis could crush business ties with russia. it's been hard to come by any positive news about german russian trade relations these days the that's because of the reciprocal sanctions

they completely wrong the central banks are telling that these now the bank of england than the bundesbank and you have a twenty percent fall in aggregate demand which is the by anybody's definition across us that's what matters but it's still ignore it by mentioning economists like paul krugman larry summers and all that crowd. now steve when you look at some of the numbers coming out some of the figure is in the u.s. and about debt that is accumulating and people failing to pay their mortgages on time more than they have and i don't know if it's six or seven years do you think we're beginning to see some of the indications that we are headed down this rough road yet again. partially i mean you if you look at the peak level of private debt than america accumulated during the bubble it was about one hundred seventy percent of jay-jay pay through the daily verging off to the process of people going bankrupt a debt ridden written off and so on it fell by about twenty percent of g.d.p. to want one point five times a day pay it's now rising again it's rising in the right of about seven percent

>> my favorite is the former head of the deutsche bundesbank. , companiesmployees and stuff like that would have trafficked in. if deutsche bank played even a minor role, [indiscernible] a disaster. matt: what was your problem with the ipo, was at the pricing? frexit is the pricing. -- the investors get holding rights, that is not what yuoou do. it is in favor of deutsche bank but not in favor of the investors. matt: i wonder if you think any of the other candidates we have heard about in the news, the board has gone to goldman sachs, the board has gone to standard charter. the board has gone to some of the other places around here, around the city of london to look for a replacement area does that make any sense to you or do you think they need to find a german? >> it does not make sense and i do not believe one of these people is going to take over this thing. we need a german corporate banker. otherwise this will continue. matt: is john cryan aware of this and ready to go, he has been at the helm for three restructuring attempts. is this going to be something, a peaceful handover?

. ¥ and isn't particularly popular but his role is to represent the bundesbank. quite as german as he sounds as the boss of the bundesbank, but it is not clear that he would be widely supported. all right, thank you very much for joining us. next, russia's election. his fourth term as president while tensions rise between the kremlin and the west. we are live in moscow with the story, this is bloomberg. . . >> welcome back to bloomberg markets, 30 minutes into the trading day. the top headlines off the bloomberg terminal. russia goes to the polls in the shadow of the u.k. attack. ahead of this weekend's election, we're live on the round in moscow. macron meets in russia to plot the future of the e.u. with europe's economic surprise index and stock momentum fading, is the best already in the bag for investors? plus, watch net group, up 30% after bloomberg confirmed the chicago based c.m.e. is considering an offer. the firm has a lock on electronic treasury trading, about 80% of a $14.5 trillion market. good morning. welcome to bloomberg markets. i'm matt miller he

just to give you all of the op the most obvious example of that is the the bank of england in the bundesbank of both come out and said that the why the textbooks teach about money creation is frankly wrong and if you get the bank of england saying the economist understand money it's a pretty bad stops of the credibility of economics so what we've been taught for a long long time is that specialize in is better the more special laws we are the better off we are and empirically that's been a failure as very good research by god called danny roddick who you should have on the show one day who has shown that countries which have actually industrialized foster are the ones that followed protection for example includes america as you mentioned the only protectionist yeah that's what i meant to americans can assess was right capture. if you don't yeah yeah so. the theoretical argument simply wrong it's a very interesting fallacy ostend up in a cartoon book i call it called comics by the way job that i think about specialization in terms of light and ignoring the fact that you can't shift machinery

just to give you all of the op the most obvious example of that is the the bank of england in the bundesbank of both come out and said that the why the textbooks teach about money creation is frankly wrong and if you get the bank of england saying the economist on the stand money it's a pretty bad stop of the credibility of economics so what we've been taught for a long long time is that specialize in is better the most special laws we are the better off and empirically. that's been a failure as very good research by god called danny roddick who you should have on the show one day who has shown that countries which have actually industrial oss foster are the ones that followed protection for example includes america as you mentioned the only protectionist yeah that's what i meant to america you can assess was right. he didn't yeah yeah so the the theoretical argument simply wrong it's a very interesting fallacy all sent up in a cartoon book i call it called comics by the way job that i think about specialization in terms of the light and ignoring the fact that you can't shift machinery from

decline in the debts resulting from bank bailouts in the financial crisis its central bank the bundesbank says the national debt fell to sixty four percent of g.d.p. at the end of last year germany is working its way closer to the sixty percent ceiling agreed upon by all euro zone countries most of the debt load came from working off shaky financial assets were acquired as the government bailed out financial institutions that had suffered crippling losses. let's go straight over to frankfurt and speak to markets man there danielle what are you hearing there wedding bells in that cost second here. yes the wedding bells might be ringing very soon not confirmed but i can tell you this is a really hot topic here on the trading floor and this and the nor could become very soon one company we are hearing that the boss often nor might be announcing this merger very soon no and this one has been working very closely already together since one thousand nine hundred nine mostly in the technical and purchasing field so there have been speculations for already quite some time at the moment the norse

just to give you all of the up the most obvious example of that is the the bank of england in the bundesbank of both come out and said that the why the textbooks teach about money creation is frankly wrong and that you get the bank of england saying the economist understand money it's a pretty bad stop of the credibility of economics so what we've been taught for a long long time is that specialize in is better the most special laws we are the better off we are and empirically. that's been a failure as very good research by god called danny roddick he should have on the show one day who has shunned the countries which have actually industrialized foster are the ones that followed protection for example is america as you mentioned the only protectionist yeah that's what i meant american is this was right capture. if you don't yeah yeah so. the theoretical argument simply wrong it's a very interesting fallacy are sent up in a cartoon book i call it called comics by the way job then i think about specialization and turns the light and ignoring the fact that you can't shift machinery from one of

they completely wrong the central banks are telling that these now the bank of england and the bundesbank and you have a twenty percent fall in aggregate demand which is the by anybody's definition across us that's what matters but it's still acknowledged by mentioning economists like paul krugman larry summers and all that crowd. now steve when you look at some of the numbers coming out some of the figure is in the u.s. and about debt that is accumulating and people failing to pay their mortgages on time more than they have and i don't know if it's six or seven years do you think we're beginning to see some of the indications that we are headed down this rough road yet again. possibly i mean you if you look at the pig level of private debt that america accumulated during the bubble it was about one hundred seventy percent of j.j. pay through the daily verging off to the process of people going bankrupt a debt ridden written off and so on it fell by about twenty percent of g.d.p. to want one point five times a day pay it's now rising again it's rising in the right of about seven percent o

just to give you all of the op the most obvious example of that is the the bank of england in the bundesbank of both come out and said that the why the textbooks teach about money creation is frankly wrong and if you get the bank of england saying the economist understand money it's a pretty bad stop of the credibility of economics so what we've been taught for a long long time is that specialize in is better the most special laws we are the better off we are and empirically. that's been a failure as very good research by god called danny roddick you should have on the show one day who has shown that countries which have actually industrialized foster are the ones that followed protection for example includes america as you mentioned the only protectionist yeah that's what i meant to americans can assess was right capture you don't yeah yeah so the theoretical argument simply wrong it's a very interesting fallacy all sent up in a cartoon book i call it call in comics by the way job than i think about specialization and sons the light and ignoring the fact that you can't shift machinery from

they completely wrong the central banks are telling that these now the bank of england than the bundesbank and you have a twenty percent fall in aggregate demand which is the by anybody's definition across us that's why it matters but it's still ignore it by mentioning economists like paul krugman larry summers and all that crowd. now steve when you look at some of the numbers coming out some of the figure is in the u.s. and about debt that is accumulating and people failing to pay their mortgages on time more than they have and i don't know if it's six or seven years do you think we're beginning to see some of the indications that we are headed down this rough road yet again. i mean you if you look at the peak level of private debt than america accumulated during the bubble it was about one hundred seventy percent of j.j. pay through the daily bridging off to the process of people going bankrupt a debt ridden written off and so on it fell by about twenty percent of g.d.p. to one point five times a day pay it's now rising again it's rising at a right of about seven percent of g.d.p. every

drawn up bailing out banks during the financial crisis germany's national central bank that's the bundesbank announced the national debt fell to sixty four percent of g.d.p. at the end of twenty seventeen so germany is working its way closer to the sixty percent ceiling agreed upon by eurozone countries most of germany's dead load came from working off shaky financial assets it had acquired as the government bailed out financial institutions that had suffered crippling losses. have something to talk about with our man at the frankfurt stock exchange daniel call per that first of all me why is it so important to lower your debt. well first let's talk about the conditions there are great germany is getting more and more money with taxes and also with lower lower national debt is happening right now because of those interest rates at zero percent here in the eurozone but that's the thing germany needs to comply according to the so-called master reached agreement and this agreement clearly says that germany's debt related to the g.d.p. is still four percent too high but the country is certainly

a member of the executive board of the bundesbank in frankfurt. chances of ae deal.s is bloomberg. ♪ newsad: a bit of breaking coming through from the chinese ministry of commerce talking about the moves to buy the united states to strap tariffs on chinese goods. just a response coming through that china will be able to handle trade protectionist measures while they say that the u.s. trade measures are typical of protectionism itself very very quickly saying that what we for here is actually waited advanced economies here. it will cast a shadow on the global recovery. is coming through from the ministry of commerce there in beijing. let's turn to japan where the drugmaker takeda is looking into a deal with shire for $50 billion. this could be the biggest deal for the world's biggest pharma company. what is going on here? that is the question that we all want the answers to. just came out yesterday, quite unexpected. the reaction has been confused and head scratching here in tokyo, given the size of the deal and the target in this case is bigger in terms of market cap

smith: the bundesbank was saying they want to know by october, november.lked to people in the priced inhey already what is going to happen. they are not moving that many people at all. if they move any. francine: what is the number you are getting? mr. smith: a few hundred here or there. we were told back at the time of 100,000, there were people. it is not the case. the city is still the number one global center. new york is number two. frankfurt has fallen back to number 23. paris is around number 20. seriously big financial center. employs nearly one million people. the movement of a few thousand is not a big deal. this is really for the retail business, not for the wholesale market. it is the retail business and passporting affects the europeans. what barney reynolds has written is we should have enhanced equivalence. francine: the u.k. doesn't want that. they want mutual recognition. tom: mr. smith: equivalence is the area we should be aiming for. barney reynolds works in the city. he's written a very good pamphlet. whatells out how you get is called

the head of germany's bundesbank the ecb could do a better job of says signaling its course.etary larry summers shares his thoughts on the fed's new leader. and, david rubenstein says the american economy in pretty good shape, but investors should not get too comfortable. >> my biggest concern is when things seem great, that is when something bad happens. ♪ ♪ >> you said pretty bluntly in your speech, governor, bitcoin has failed were largely failed. -- bitcoin has largely failed. what did you mean? >> there are three ways to measure eight currency. is it reliable and hold a stable value? clearly anyone who looks at on your bloomberg screen the, volatility of bitcoin is 10 times more volatile than sterling. it is not a stable holder of value. the most important thing is that working as a medium of exchange, how well can you use it to buy goods? it is not that efficient. for example, they cost about 1.5 pence to use cash. eight pence to use a debit card in the u.k.. it costs about two pounds to use bitcoin on a transaction basis. you layer on top of that the environmental cost

decline of the debts resulting from bank bailouts during the financial crisis its central bank the bundesbank says the national debt fell to sixty four percent of g.d.p. at the end of last year germany is working its way closer to the sixty percent ceiling agreed upon by all eurozone countries most of the debt load came from working off shaky financial assets acquired as the government bailed out financial institutions that had suffered crippling losses. and that's a business that spectrometer no thank you very much returning now to and it is it just preparing to posture just it's criminal code that would outlaw certain aspects of homosexuals and pretty much sex we've been able to establish a line. since she is the chairwoman of the german a parliamentary human rights committee and has just come back from indonesia good that you've spent some time on a fact finding mission in the country what did human rights and activists say to you that. yes thank you actually i've been only to indonesia once and that was the last two days and i discovered that especially the civil society is very concerned

terms of timing, this may not be the worst possible timing for a person like the president of the bundesbankine: great comments the former director general of general -- the former director of general market operations at the ecb. guy: let's talk about turbulent times elsewhere. kingdom holdings has revived talks to raise up to 1 -- up to $5 billion in loans. will be airing our full interview with the most famous face, then saudi arabia's so-called corruption crackdown -- with the most famous face in saudi arabia's so-called corruption crackdown. unfortunately, i was out of that group, but fortunately, i and so i it right now am not the person who is going to come and say i forgive but don't forget. guy: joining us now is erik schatzker. thatther participants in give us the, skinny. it must've been a fascinating conversation. i have known the prince for almost a decade, so i approached this interview with both anticipation and trepidation. but would he be like? the man spent 80 days in confinement at the ritz-carlton. is one of the most fascinating men in the middle east, the richest man in

jones move by 27% on the monday after the treasury secretary at the time was disgruntled with the bundesbankn germany. that is the parallel with regards to the japanese yen. rishaad: does not seem like we are going to get anything like the plaza accord now. what about you? how do you then manage your money? it is not the time to be a passive investor? >> no. we are in the longest human expansion in history. we are seeing convergence and hyper convergence. , the peoplen to believe there is more upside in markets? if not, we believe we are coming into a downturn or possibly a recessionary stage. where'd you move your money? it is that simple. rishaad: where do you move the money? >> in that scenario, you move to cash if you believe we are moving to recessionary times. it is very early to make that call. rishaad: you are not positive on equities. >> not in the current might, but things change. rishaad: always a pleasure, sterling larkin. be discussingo more on these trade tensions between the u.s. and china. later, we are speaking to pauline long. we comef bath 11:00, from sydney with the cente