especially bank stocks were on a downhill ride. but it's about more than stock markets wanted to leave central bank the dillies future within the euro zone can only be secure as a reliable partner. to go beyond the reader's simple preserving we have to keep in mind the great risk of losing irreplaceable trust in a short period of time a few do. lovely trust in the strength of our country that beside the patty in the judgments is great. both on an economic and social level a good round so gonna go normally call it should be either. but it's not only italy that needs the euro zone the currency union stability relies on the financial stability of its member to the south. and we can speak to our financial correspondent in new york so fishermans good joins us now sophie what are investors in the united states saying about this drama unfolding in italy. well we have been observing a remarkable reaction in the markets here today and early trading the dow lost around two hundred points and the loss got even bigger during the day we were do

especially bank stocks were on a downhill ride. ut it's about more than stock markets wanted to leave central bank italy's future with india you can only be secure as a reliable partner with your book to go beyond the read a simple brazilian we have to keep in mind the great risk of losing irreplaceable trust in a short period of time. loughlin trust in the strength of our country that beside the patty in the judgments is great. both on an economic and social level a good round sum down economical issue. but it's not only italy that needs the euro zone the currency union stability relies on the financial stability of its member to the south. when all financial correspondent qualified it was and is in frankfurt we can speak to him now call that let's try and stay cool about this and nevertheless also a very big question is a new euro crisis lurking just around the corner. well there are people on the markets who say that this feels a lot like the year two thousand and twelve when we had the last euro crisis and when the concerns were

rise in europe or you could expect that in the near future.we are at a point where european banks, especiallyeem to be absolutely disintegrating. i'm talking about one in particular. let's talk about the whole sector. is this the right sector -- time to undertake the european banks? say if you see what happens in other countries, if you see in france, the discussion about banks there, i would say yes, that could be a good idea to look deeper and deeper into the skate. the issue with german banks is that you could buy only two banks there and i would say there is not a lot of possibilities, but i would say banks,ral, the european especially the banks, they are already through the discussion of cleaning out. guy: let me ask you a broader question. why are investors not rewarding u.s. companies for producing decent numbers and taking a very different approach to european countries? why are they being treated differently right now? i would say we have already seen a couple of quarters in a situation that the united states, i would say only the top 10 names are running good. i would say the techno

i think banks are great. especially regional banks. not so much the monsters >> we'll get into that more and how sensitive those financials are to interest rates. stay with us, patrick. that's patrick spencer vice chairman of equities at baird. >>> chinese smartphone maker xiaomi filed an ipo in hong kong the listing is expected to raise $10 billion, making it the biggest chinese tech ipo since alibaba there 2014 xiaomi made the announcement alongside results which showed revenues soared to 114.6 billion yuan, but posted a net loss of 44 billion yuan. speaking to cnbc earlier this year, xiaomi's head of international talked about the market >> this is the first time the total market size dropped, but our market share grows very significantly. so i think our key is to keep bringing the better performance product to the consumer and sell at an affordable, attractive price to the consumer. that's our key business model. we will not change that. >>> if you have thoughts on tech stocks or tesla, get involved in the conversation tweet us @st

blocking regulation could be of limited effectiveness that given international nature of the banking system and especially the exposure of large systemic banks to the u.s. financial system and u.s. dollar transactions. history has taught us the transplanting partnership has been strengthened by cooperation of trade the fence and shared values but in this current crisis and needs to be taken even if the european union would act to protect european companies. want to continue to do business review iran they cannot really prevent the united states to sanction them on the american markets they don't want to push to meet of a trade war with the european union member states be strong enough to really have a political reader to really. decide to come to measure us which really bites the united states beyond not so far you need a position to do this while the e.u. scrambles to save the nuclear dale this hasn't gone unnoticed by tehran which is ramping up the pressure these political support for the nuclear code is not sufficient there nonsupport of the possible withdrawal by major european companies from the corp

blocking regulation could be of limited effectiveness that given international nature the banking system and especially the exposure of large systemic banks to the u.s. financial system and u.s. dollar transactions. history has taught us that transplanting partnership has been strengthened by cooperation of trade defense and shared values but in this current crisis and mission needs to be taken even if the european union would act to protect european companies. want to continue to do business review iran they cannot really prevent the united states to sanction them on the american markets they don't want to push to believe me to have a trade war with the european union member states be strong enough and we have a pretty car we needed to really. decide the countermeasure us reach really night the united states we are not so far you need a position to do this while the e.u. scrambles to save the nuclear dale this hasn't gone unnoticed by tehran which is ramping up the pressure these political support for the nuclear code is not sufficient then ounce one of the possible withdrawal by a major european comp

regulation could be of limited effectiveness that given the international nature of the banking system and especially the exposure of large systemic banks to the u.s. financial system and u.s. dollar transactions history has taught us the transplanting partnership has been strengthened by cooperation of trade defense and shared values but in this current crisis and needs to be taken even if the european union would act to protect european companies. want to continue to do business review iran they cannot really prevent the united states to sanction them on the american markets they don't want to push to bully me to have a trade war with the european union member states be strong enough that we have a pretty good a real to really decide the countermeasure us reach night united states we are not so far in your position to do this while the e.u. scrambles to save the nuclear dail this hasn't gone unnoticed by tehran which is ramping up the pressure these political support for the nuclear court is not sufficient then ounce one of the possible withdrawal by major european companies from the corporation wi

regulation could be of limited effectiveness that given the international nature of the banking system and especially the exposure of large systemic banks to the u.s. financial system and u.s. dollar transactions history has taught us the transplanting partnership has been strengthened by cooperation of trade defense and shared values but in this current crisis and mission needs to be taken even if the european union would act to protect european companies. want to continue to do business review iran they cannot really prevent the united states to sanction them on the american markets they don't want to push to bully me to have a trade war with the european union member states be strong enough that we live apart it's going to really to really decide the countermeasure us reach really bite united states we are not so far in your position to do this while the e.u. scrambles to save the nuclear dail this hasn't gone unnoticed by tehran which is ramping up the pressure these political support for the nuclear court is not sufficient then ounce one of the possible withdrawal by major european companies fro

regulation could be of limited effectiveness that given the international nature of the banking system and especially the exposure of large systemic banks to the u.s. financial system and u.s. dollar transactions history has taught us the transplanting partnership has been strengthened by cooperation of trade defense and shared values but in this current crisis and mission needs to be taken even if the european union would act to protect european companies. want to continue to do business review iran they cannot really prevent the united states to sanction them on the american markets they don't want to push to go to meet of a trade war with the european union member states be strong enough to relieve the political reader to really. decide that the counter measures which really bite the united states and not so far are you know position to do research while the e.u. scrambles to save the nuclear dail this hasn't gone unnoticed by tehran which is ramping up the pressure the us political support for the nuclear court is not sufficient then ounce one of the possible withdrawal by major european companie

america's holdings, overseeing the banking sector, and reforming inefficient policies that create obstacles for families and job creators. ms. mcwilliams is especially attentive to the difficulties facing smaller community banks. in her testimony before the banking committee, she explained how government regulations inflict outsize compliance calls that can be too much to bear. she was also examined by our colleagues on the banking committee and was also reported out by a bipartisan voice vote. i would encourage all of my colleagues to join me in voting to advance her nomination later today. now, finally, speaking of community banks, yesterday marked a big step forward for local lenders across the nation who've been crushed by the regulatory burden of dodd-frank. yesterday afternoon our colleagues in the house passed the economic growth, regulatory relief, and consumer protection act which the senate had passed earlier this year. now it will head to president trump's desk for his signature. this is the call minute nation of -- this is the culmination of extensive bipartisan work led by senator crapo and his colleagues on the banking committee to giv

pressureupward especially since the central banks started with the fed have announced they will startaking away the punch bowl in terms of market pressure easing and othes measures they have been engaged in. there is a headwind from the huge volume of debt issued since the global financial crisis. not only in the united states but around the globe. further, a lot of the debt is of a relatively low quality with very few to protect lenders by way of example. in addition to the no headwinds, there are a lot of wildcards, i would say to her seems to be picking up and despite some numbers people talk about, if you are feeling your tank, your car with gas or trying to buy a home or pay rent in an apartment or various places around the country, you are feeling much higher price increases in the .eadlined in x moving up there are a lot of geopolitical risks. i think you are as well aware of those as i am. we have a nontraditional president that is hard to present -- to predict. where that will lead with additional tariffs and trade wars, we have still got concerns about cyber breaches. think

lot ofe: you see a banks, especially swiss banks, wanting to go after the asian market.tandard charter is basically an asian market play, so could you infer that barclays wants to be bigger in asia, or again, that something don't be against what they need to focus on. >> you wouldn't take it on with all the loans. one of the reasons standard charter can give reasonable guide is we don't know how they just an asiann't franchise, you have india etc.. prices,ook at the share they're both trading intangible for good reasons. gettingt see them there, certainly not standard charter for 3-4 years. >> what is your take? >> i think barclays has a significant challenge associated with the uk's domestic business. i am not a bowl of the u.k. economy, and i anticipate that far too much of the growth we to takeerved has been equities out of the housing markets or other means of plundering savings. therefore, we have an economy that is highly leveraged. i certainly think they will be exploring other ways in which they can address the challenges. francine: talking a bit about god frank,

policy,a 3% regulatory especially with banking and capital markets. this is the banking portion.id pass with a strong bipartisan vote. we expect to have a on the president's desk. this means that people throughout america will have better options to buy homes, buy cars and put food on the table. kevin: could there be another package before the midterms, or is that not realistic? >> it is very realistic. i am not ready to sign a blood oath it will happen, but we have a guarantee from the senate that they will vote on a package of bills that we have worked on, that is about capital formation. s-2155 is mainly a regulatory relief bill for banks. what we do not have, as you know in america 80% of corporate debt comes from capital markets, not from banks, so we have a different system from much of the other industrialized world. we have had in the past something called a jobs series of bills to jumpstart the business startups. the first series of bills were signed into law by president obama. so this is all geared toward venture capital, to startups, brokers., strong m&a we have a pac

infrastructure is apparently terrible and we can't forget that the banking industry especially is seeingo much change due to digital video tell ization and automation so they're wondering how deutsche bank could possibly compete this is going to be important to german multinationals as well as they play catch up themselves now reports of the job cuts got shareholders excited yesterday not the case today but rather a stormy shareholders meeting. precisely now yesterday the news reports of ten thousand job cuts because the share price rally before it eventually evened out today we actually saw the share price drop after saving speech and as far as i can see it's still declining now two possible reasons for that the first reason is that because the headline figure reported yesterday appears more than the seven thousand figure being bandied about today although we have to say that they said at least seven thousand. points to a minimum seven thousand could also mean eight thousand or nine thousand another reason of course is the cost they don't like about it will cost eight hundred million eu

especially when you get a bank holiday.re is a bank holiday and it is wonderful, eve ryo ne holiday and it is wonderful, everyone is having a wonderful time. snow in winter, children out on their toboggans, and everyone saying what a wonderful day, and the british are able to enjoy their weather. i think it is one of our great traits. astonishing this weekend. 28 degrees today and it makes me feel a little bit smug that for once we can compete with johannesburg, ibiza and rio. we have been hotter than all of those places today. that's it for the papers tonight. thank you, dame joan ba kewell and lucy fisher. coming up next, it is meet the author. how can a writer make us care about a creature from greek mythology born of the gods asa it's a challenge for any novelist. madeline miller did it first with achilles, now she tells the story of the great sorceress and enchantress, circe, who leads us through many of the great stories of mythology, behaving badly — which she so often did — but at the same time emerging as a figure

bank must comply with extensive regulatio regulations especially in the post dodd/frank environment. are you concerned about non-banks often times with the competitive advantage of lower regulatory costs offering nearly identical financial products and services without being subject to the same regulation, and if so, how would you address this in your role as vice chairman of supervision? >> i think that our regulatory system should not create unlevel playing fields. that's across a whole range of issues, whether bank or non-banks, banks or different types of regulated entities. small banks and big banks. we should not be creating an unlevel playing field. on the specifics of how to address that with banks and non-banks, that gets complex within the limits of our statutory framework that we have to work under, but that is a high priority for me. >> thank you. i yield back. >> the chair recognizes the gentleman from california, mr. sherman. >> i think mr. huizenga reported that the people don't know what the fed does. that is not by chance. that is by design. the bank is an example of

in my experience, financial services, especially the banks, are considered best in class not only in terms of and investment, but also for leading engagement with stakeholders ecosystem. large banks are accustomed to higher levels of regulatory scrutiny and their third-party risk management programs tend to robust mature and but challenges remain. today, financial institutions deal with third, fourth and fifth-party risk. in addition to vendor risk, most institutions struggle to secure resources and cyber, experienced professionals are in high demand. often small firms turn to third-party providers to those needs. there is no one size fits all solution. so i will focus on three areas where e.y. believes mitigated. corporate governance in risk aicpa cyberthe reporting framework and solutions. ultimately, the board is responsible for governing a andany's risk appetite providing credible challenge to management. by doing so, boards help protect investors and enhance the company's value and performance. a three lines of defense risk management model. the larger ones are adopting this mod

banks. what is your view on regulation in terms of the economic cycle? where do you think we are in the cycle? and how does that impact your assessment of regulatory changes, especially now as it relates to capital? >> those are extremely good questions. in general, banks should, and i think that they are, build their capital during the good times so they can survive stress when it comes. we know that there will be periods of stress in the future. i think that it's an open question. there are regulatory tools that are designed to try to provide those counter cyclical incentives. the stress test is one of them. it becomes -- as asset values increase, as times become good, the stress necessarily, if you assume that asset values are going to fall to a certain level, that stress is going to be greater and that provides a certain counter cyclical incentive. there are other tools that we could use. at the same time, the efficiency of the system does -- you know, is supported by predictability. the ability of the cfos and the banks to predict how to respond to the regulatory system and balancing that is the difficulty that we wrestle with. >> let me ask you another question

i think he's thinking of sanctions down the road, especially on chinese banks. >> do you think the president on it? >> the date is not important, denuclearization is. i think we have to give the president credit. he has gotten north korea to the table further than any other president has in decades, so i think we have to give him credit for that. i think it is important ideally if we would have had all these concessions in place prior to announcing when we were going to have the summit, but i think it's critical for us to be very firm on what exactly do we mean on denuclearization. it has to be complete and irreversible. i think our definition is different than t-- >> has the u.s. actually gotten anything in return for agreeing to have these talks? >> at this point we haven't really made concessions. you're absolutely right. when you have trump and kim in the same room, that is a big concession to the north koreans because that is leg legitimalization. although i'm sure that kim was cynical, those are markers that senator trump and the international community can hold the koreans to. that's

. >> data is global, isn't it these days, is that especially so for banks >> it is many of them havece centers that spread around the world to give them 24/7 service and having to make sure each of those operate at this level to make sure they meet compliance >> one other question is about contractors. other banks and businesses in the uk and across europe use subcontractors is that a challenge? >> similar constraints are there today that already exist about sending data outside the eu and making sure right contracts are in place to manage that. that's an area to refresh across organizations, generally banks are good at that they understand the supply chain, they put in the controls to make sure they can share that data >> if you look at the banks and finance firms, how do they measure against other businesses >> one of the easy ways to see the huge difference, i'm sure you've been receiving many e-mails, the fascinating question is how many came from banks? how many came from financial services organizations very few does that mean banks are not taking this seriously? absolutely not

ingo: deutsche bank has to it strategies especially in the u.s.. deutsche bank is a smaller player and they have to think about the strategy in a way in which segments to they want to be in terms of market share, profitability, and growth. banking at deutsche is tied to investment is inadequate. we need to see more adaptation of strategy. when you look around europe, do you see another bank that maybe has the right kind of ?rofile some of the french banks maybe? guy: deutsche bank has no strong business competitor their counterparts. perspective, there is no strong revenue base to stabilize investment bank area ingo: we have to admit -- bank. ingo: we have to admit that deutsche bank is a specific animal and the changes the past have not been enough. we have to a the strategy now. now is the time. adapt the strategy now. now is the time. guy: what happens in the doesn't happen now? -- happens if it doesn't happen now? admitfirst we have to what would wrong 20 years ago and two years ago. it depends on interest-rate level, it depends on the and ifnt

crypto you get purchasing power is not inflated away by the central bank that's quite important you get a saving of real money especially in the field. what we're doing we're issuing a long central banks issue the additional dollar but now you're providing a bridge between one of the in my opinion safest asa classes in the world. fantastic i mean this is such a multi-faceted story and when you're in the space as you are you get to wear the camel jacket and he also get to wear the big cohen socks i think there's a big going to get a shot of the big client socks this is the kind of forward looking fashion statement. that crypto pioneers can wear in public and get you know big applause for it but anyway we got to go gabriel thanks so much for being on the kaiser report. already well that's going to do it for this edition of the concert for with me maximizer and stacy herbert want to thank our guest gabriel abed he's the co-founder of bit of barbadoes bass krypto fantic company making waves in the caribbean so next time by you know. united states. and its tax on other countries. sanctions are often just the beginning anothe

in my experience financial services especially the largest banks of the best in class. not only in terms of investment but in engagement of stakeholders from across the system. large banks are accustomed to high levels of regulatory scrutiny. third-party risk management tends to be mature. but challenges remain. financial institutions deal with third, fourth, party risks. in addition they struggle to secure resources and talent. experience cyber professionals are in high demand. small firms turned to providers to meet those needs. there's no one size solution. a focus in three ways it can be mitigated. corporate governance, the aicpa framework and policy solutions. ultimately the board is responsible for governing the risk appetite and providing challenge. for itself protected investors and enhances the company's failure performance. banks use a risk-management model larger ones are adopting it for cyber. we consider this a best practice. regulators, investors and others want financial institutions to build cyber resiliency strategy into three lines. another challenge i

sanctions , especially the banking ones remain in place has limited this and we have seen european companiesing in and checking things out, looking at potentially making deals. it has not really happened. it has not taken off in any major way which is a huge disappointment to the iranians. if the u.s. now tightens sanctions further, you are likely to see even that european interest in the research disappearing and dying away possibly completely. david: breaking news, there are reports the buyout from -- raised in dubai is in talks with a stake.ck to sell it has been somewhat troubled through misuse of funds of it had to lay up a lot of people. and colony -- barack northstar could be a partner. a real business that makes real investments. not just donald trump's spokesman. inside the bloomberg here and you can see the underperformance of energy stocks versus the oil price. energy stocks that white line. are you playing energy on the supply side-based rally? >> we really are and one of the more important things is the supply and demand dynamics from a global market got to balance a lot quicker

job.w we have to focus on we also have to focus on banks, especially the french banks we thought coulde in short of estimates. tom: yield compression over the last two or three days. it really goes into fx instability. francine: i'm looking forward to speaking about pounds a local election coverage and what that means for brexit. let's get to first world bloomberg news. tell her column there is one area of agreement after two days of trade talks between the u.s. and china in beijing. the two sides agreed to keep on talking. there was consensus on some issues, but major disagreements remain. therding to a document, u.s. wants china to reduce the trade deficit by $200 billion by the end of 2020. two developments today from the korean peninsula. first, the u.s. has denied a new york times report that president trump ordered the pentagon to prepare options for withdrawing u.s. troops. that comes from south korea's presidential office. meanwhile, north korea reportedly will allow international inspections of its nuclear facilities with the u.s. potentially an explosive decision involving br

difficult days have passed on the west bank jerusalem and especially on the gas history these relic you patient launched today a fierce aggression on the gaza strip with rockets and aircraft this indicates that your q patient does not want peace however we want peace and we demand peace the policy an islamic jihad. is a fashion that opposes the existence of israel it was founded in the late seventy's by palestinian students in egypt who were inspired by the muslim brotherhood and later influenced by the islamic revolution in iran the group's aim is to destroy israel liberate palestine and form an islamic state within the pre-one nine hundred forty eight borders islamic jihad does not take part in the palestinian political process and has opposed peace agreements like the oslo agreements that p.i. j. consent traits on armed revolt it's mr wing the brigades your suicide bombs against israel during the second intifada in two thousand the group which has its headquarters in syria reportedly receives funds from iran it is designated as a terrorist group by the us you and the u.k. let's now g

banks. >> the negative effects of the regulation in terms of cost, that has been a big one. especiallyr the smaller banks that do not have the leverage so that relief is important. it saves them some of the compliance cost, but the other aspect is, it makes it more beneficial for these banks to emerge. -- to merge.ge smaller banks will get relief under this bill but that does not hide the fact that what this bill does as an unnecessary gift to the larger banks. you are talking about to release up to $250 billion in assets. cutting import duties on cars from 25% to 15%. around the world rallying on the news. which automaker benefits the most? be theill probably makers of the high end, premium car manufacturers. rover, thed manufacturers that do not have a large production facility in place in china and rely more on importing vehicles into the market. one of the highest profile glass ceilings in finance has been smashed. the new york stock exchange promoted stacy cunningham to president. given that shey started off as an intern at the big board. >> she was a floor trader as an intern and

an already complicated job when you come to looking at price pressures for the central banks of the world, especially the fed. >> it certainly does it's not just the bank of england, central banks around the world trying to gauge what will happen with the oil price environment. history has shown that often central banks including the fed looked past the oil price factor because as we were talking about earlier there's a feedback loop aspect here where sometimes it becomes headwind on further growth uk gilt features extended gains by 15 ticks after that weaker than expected uk inflation picture. >> the wrong type of inflation let's leave that conversation for now and get back to technology the knives were out. european lawmakers failed to land a blow on facebook boss mark zuckerberg as he testified in brussels, answering questions in the wake of revolutions that users personal data was compromised. he apologized again but also riled those delivering the questions. >> would you allow users to escape targeted advertising? i asked you six yes or no questions, i got not one single answer you asked for thi

crypto you get purchasing power is not inflated away by the central bank that's quite important you get a saving of real money especially in the field. what we're doing we're issuing allowing central banks issue the additional dollar but now you're providing a bridge between one of the in my opinion safest asa classes in the world the current fantastic i mean this is such a multi-faceted story and when you're in the space as you are you get to wear the camel jacket and he also get to wear the big cohen socks i think that is a big point actually to get a shot of the big going stocks this is the kind of forward looking fashion statement. that crypto pioneers can wear in public. and get you know big applause for it but anyway we got to go get real thanks so much for being on the guys' report. already well that's going to do it for this edition of the kaiser for with me max kaiser and stacy herbert want to thank our guest gabriel abed he's the co-founder of bit of barbadoes based crypto fantic company making waves in the caribbean so next time bio. united states can. tax on other countries. economic sanctions are often just