you were pivotal in dealing with the financial crisis as the head of the bundesbank.did you wish you knew then that you know thou? axel: i think at the time what we experience -- what we experienced it looked like a , cardiac arrest. arrests,t of cardiac it takes a long time to heal, a long time to recover. the expectation was if we fix these problems, we can go back to normal. we have not gone back to normal. we will not go back to the old normal. the world has moved on. markets are different now. some product's are gone, i think for the better. in the future, it will all be about how we can navigate this more complex world where complexity is ever increasing. that is the challenge in financial markets. central banks are only providing liquidity to banks. what you see now with market-based finance increasing with risks migrating away from banking, which is better regulated into market-based finance, central banks will find it harder to provide liquidity to problem areas because they , will not be the core counterparties like banks with access to central banking. you

being at the helm of the bundesbank during the start of the financial crisis.s since moved from central banking to the private sector, taking over as chairman of swiss banking giant ubs in 2012. so, what kind of leadership style does it take? we are back with axel weber. axel weber, what does it mean being a leader today? axel: sometimes it means taking difficult decisions, taking decisions where you are unable to consult with a lot of people around you, where you basically have to show leadership in a short moment in time. my experience was in the financial crisis, we had to do that. and very often, i saw the role of the central banks as providing collective rationale where sort of the individual rationale would not have lead to a solution of the problem. and so in the financial crisis, all leaders of financial institutions behaved individually for their institution, rationally, but the sum of all these behaviors would have amounted to a major financial crisis. so the central banks had to come in as the provider of a collective rationale that led to a better o

bundesbank said look through this data point. fork you will be solid.arkets have taken this in stride -- four q will be solid. >> signs that the trade war is hurting china, continuing now for six straight months. >> more concerns that china is entering this scenario once again. deflationary scenario. >> we hear from the likes of cicc, the chinese investment bank saying deflationary pressures are building as you see a slowdown in demand and external demand is looking weaker as well. in terms of consumer inflation, that is down as well. 1.9% from 2.2%. it is now concerned about deflation. >> samsung shares swinging between losses and gains after quarterly profits end sales missed estimates in the last three months of 2018. >> i thought this is a big mess and yet, we are not getting a hugely negative reaction in the market. what is going on? >> it is the big miss. 20%,erating level, miss by the largest in two years. the is a miss against sell side. the buy side, the investors, they have been selling stocks. in october, the told us what they were expecting

the bundesbank came out today and said, you've got to look through this data point. the fourth quarter will still be solid. i think that is why markets are taking this in stride. >> signs that the trade war is hurting china, continuing now for six straight months. down sharply in december, continuing the slowdown for a straight six months now. >> more concerns that china is entering this deflationary scenario once again. >> we hear from the likes of cicc, the chinese investment bank, saying that deflationary pressures are now building. as you see, a slowdown in demand domestically and external demand looking weaker as well. in terms of consumer price inflation, it is down as well, 1.9% from 2.2%. it is now concerned about deflation moving to front and center for some here in china. >> samsung shares swinging between losses and gains after quarterly profits end sales missed estimates in the last three months of 2018. demand for memory chips slumped. >> when i saw the numbers come out, i thought, this is a big big miss. what is going on? >> you are right. it is the big

the bundesbank came out today and said you have to look through this one data point.h in the fourth quarter will still be solid. i think that is why the markets are taking this in stride. david: as far as we know, is it idiosyncratic, or does it have to do with export and trade uncertainty? >> i think the focus is for q3 primarilyis idiosyncratic. you cannot strip out completely trade tensions and the impact that might possibly have on the german economy. i think the idiosyncratic factors are amplifying that. you would have to say, you would be brave to say that none of the global tensions we have seen have not had a negative impact on the german economy. germany is a big winner from globalization. with the changes we have seen, this is a headwind for the german economy made worse late last year. rhine levels made it harder to ship stuff. that contributed to deliveries. david: let's go to matt, do you not invest in germany because of the rhine levels? >> and are crazier indicators than that that work. this time last year, everybody loved europe. everybody loved emergi

he was the president of germany's bundesbank and a member of the ecb governing council, which includedrs of the global financial crisis. now he is chairman of ubs and a member of the group of 30, an international body that looks to deepen understanding of global economics and financial issues. today on "leaders with lacqua," we meet axel weber. axel weber, thank you for

. >> this is data from november both thed that time, bundesbank and finance ministry warned that germanyld suffer through a slowdown in the latter someof 2018 due to idiosyncratic factors and would lead to a slowdown. i think as a result of that, markets are shrugging off today because there is no narrative. it is something they have been prepared for already. dataave to look at this point and as a result, i think that is what markets have taken this dive. >> signs that the trade war is , continuing now for six straight months. >> more concerns that china is entering this scenario once again. ofwe hear from the likes cicc, the chinese investment it is building as you see a slowdown in demand and external demand is looking weaker as well. in terms of consumer inflation, that is down as well. it is not concerned about deflation. >> -- it is now concerned about deflation. >> after quarterly profits and sales missed estimates in the last three months of 2018. >> i thought this is a big mess and yet, we are not getting a hugely negative reaction in the market. mess -- next -- miss. investors,

>> this is data from november, and around that time, both the bundesbank and the german finance ministryned that germany would suffer through a slowdown in the latter part of 2018 due to some idiosyncratic factors that would lead to a slowdown. i think as a result of that, markets are shrugging the data off today because there is a known narrative. it is something they have been prepared for already. you have to look at this data point and as a result, i think that is what markets have taken this in stride. >> signs that the trade war is hurting china, manufacturing continuing its slowdown now for six straight months. >> more concerns that china is entering this scenario once again. >> we hear from the likes of cicc, the chinese investment bank saying it is building as you see a slowdown in demand and external demand is looking weaker as well. in terms of consumer inflation, that fell as well. it is now concers about deflation that are front and center. swungsung shares have todayn losses and gains after quarterly profits and sales missed estimates in the last three months of 2018. i tho

around this time, the german ministry of finance in the bundesbank were advising market participants and investors that there would be a slowdown in the german economy in the third and fourth quarters. and that this is idiosyncratic. it is not something they expect to last. the fact that this data is from that time means that markets have been able to shrug it off. treat it as yesterday's news. and look toward some of the optimism and he was talking about as perhaps the trade tensions start to update a little bit as the u.s. and china come closer. with germany being one of the main beneficiaries of globalization, if the u.s. and china strike a deal, germany will be a beneficiary again. guy: some suggest that this acts as a harbinger for germany heading to a recession. can the ecb hike if germany is in a tentacle recession? >> it depends if it is something that is short-term and temporary, i think given where the ecb's timetable is, which is after the summer of 2019. it could be that we look back on the quarter or two of negative growth and say it was temporary. it was not a massive s

he was the president of germany's bundesbank and a member of the ecb governing council from 2004 to 2011ded the early years of the global financial crisis. now he is chairman of swiss banking giant ubs and a member of the group of 30, an international body that looks to deepen understanding of global economics and financial issues. today on "leaders with lacqua," we meet axel weber.