risa, of the eurasia group in washington.rewrite of the volcker rule is set to loosen strengths on wall street. a revamped version of regulations could make it easier for banks to cash in on the exam juncker google talk about that next. this is bloomberg. ♪ ext. this is bloomberg. ♪ ♪ shery: this is "bloomberg markets: balance of power." i'm shery ahn. david: i'm david westin. time for our stock of the hour. shares of the regional banks are plunging. the worst day since the brexit fell off in june of 2016 to that was after they announced a $4.7 billion acquisition of and be financial. abigail joins us. the street is not like this deal. why not? abigail: they don't like the deal. first, let's set it up. a big up -- it is one of the larger regional banks in the country. most of their deposits and ohio, 50% or check out illinois, florida. they are acquiring financial for their presence in chicago. this will make them the second biggest bank in chicago behind jpmorgan. as for why the stock is down, i should mention and the financ

out of power and overthrown and gadhafi was brutally killed in fact ian bremmer the head of the eurasia group put out a he has an orca called jeezy labs that makes little cute puppet shows that reinforce his political messages and the latest one quite tasteless and really disturbing had kimmel jong. having nightmares of waking up like a doll. being brutalized raped and then murdered by rebels and that of course is the message that was sent to north korea the reason john bolton said this is because he intended to sabotage. it it was easy we identified it early on that he was one of the biggest obstacles to these talks and any progress being made and he would have a target and a trumpet that you have you have pump aliant is actually secretary of state right now he was there before he was even confirm to start moving the go she asians had so and he's butting heads it would seem with john bolton well it's true and it's just amazing how trump says i had to cancel this meeting because of your hostile statement. to no one well i mean if a new one made host of statements it was mike pence who compare

out of power and overthrown and gadhafi was brutally killed in fact ian bremmer the head of the eurasia group put out a he has an orca called jeezy labs that makes little cute puppet shows that reinforces political messages and the latest one quite tasteless and really disturbing had kimmel jong. having nightmares of waking up like khadafi being brutalized and raped and then murdered by august rebels and that of course is the message that was sent to north korea the reason john bolton said this is because he intended to sabotage the glocks. it it was easy we identified it early on that he was one of the biggest obstacles to these talks and any progress being made and he would have a talk and it and a trumpet that you have you have pump aliant is actually secretary of state right now he was there before he was even confirm to start moving the go she ations had so and he's butting heads it would seem which. bolton well it's true and it's just amazing how trump says i had to cancel this meeting because of your hostile statement. to no one well i mean if a new one made host of statements it was m

out of power and overthrown and gadhafi was brutally killed in fact ian bremmer the head of the eurasia group put out a he has an orca called jeezy labs that makes little cute puppet shows that. since political messages and the latest one quite tasteless and really disturbing had kimmel giong. having nightmares of waking up like being brutalized raped and then murdered by rebels and that of course is the message that was sent to north korea the reason john bolton said this is because he intended to sabotage the glocks. it was easy we identified it early on that he was one of the biggest obstacles to these talks and any progress being made and he would have a target and a trumpet that you have you have a pump a and it's actually secretary of state right now he was there before he was even confirm to start moving the go she said so and he's butting heads it would seem with john bolton well it's true and it's just amazing how trump says i had to cancel this meeting because of your hostile statement. to no one well i mean if i knew on late host of statements it was mike pence who compared korea t

vonnie: kim wallace of eurasia group was in a little while ago talking about geopolitical concerns. on his way out the door, he said he thinks macroeconomic concerns will affect markets a lot more --r the 6 to 12 mark months. he was talking about how officials are not immune to destabilization. our client -- are clients talking to you about that or are you seeing signs of it? stephen: our expectation is in the global economy, global growth in the world economy still looks very good. it is pretty strong. you see this in a number of export figures in the developed and developing world. in labor market data across the globe. our expectation is growth is continuing. what effectively we have seen in the end of the first quarter is a pause in the equity market rally, inflows into emerging markets have retrenched. we don't think inflows into emerging markets are going to be materially where they were -- below where they were in 2017 and given where growth is and 2019,ed to be in 2018 at em flows should accelerate again. looking at the broad dollar view, we are still bearish and that is har

group up, eurasia strategy head, we will talk to her about china. mberg. ♪ taylor: this is bloomberg "surveillance." in the u.k., bt group while cut 13,000 jobs or 12% of the workforce. they said revenue would fall 2% in the next fiscal year. we spoke with the ceo gavin patterson. x. we are increasing cape we announced a big transformation plan but some of that in the short term would be offset by higher regulatory pressure, particularly on regulatory pricing. years, probably 2021 onwards we can see it growth. pay $2.9hey need to billion over the next three years to close a pension gap. in china, the former chairman of on bank insurance has been sentenced to prison for masterminding a $10 billion fraud. wut seals the downfall of zhong we. the chinese government seized control of the bank in february and injected $9 million of capital to bolster its solvency. that is your bloomberg business flash. tom: we are thrilled in london to bring in, with all the em uproar we are seeing, bank of england coming up later and nejra cehic outside the bank of englan

betty: we will talk about that with michael, eurasia group asia director. he will be discussing u.s.ks. he says the u.s. demands are vague at best but believes the deal will happen between the two. haidi: trade and geopolitics, two topics the markets continue to grapple with. all the news on bloomberg asia next. this is bloomberg. ♪ yvonne: it is 7:00 a.m. here in hong kong. we are live from bloomberg's asian headquarters. the top story this wednesday, asian-pacific markets had for a lower open after wall street fell on north korea. president trump says the kim summit may not happen. surging to the highest since late 2014. betty: from bloomberg's global headquarters i am betty liu in new york, where it is just after 7:00 p.m. tuesday. china lowers import tariffs. china, u.s., france may benefit the most.

. >> let's bring in john avalon and president and founder of the eurasia group author of the us versus them, the failure of globalism. unfortunately, grave day for your book and the discussion. this is not new in terms of authority for u.s. administration. republican and democrat presidents have waived on this. they said we have the power to move the embassy. we are not going to not because they don't recognize jerusalem as capital of israel but because of political implications to the peace process and wanting the two sides to work it out before the u.s. would make a dispositive move. what is the plus/minus? >> the israelis are our friends and we don't care about palestinians. you just saw jubilant about opening and so are the israelis. 25 palestinians are dead throwing themselves against the wall in dpauzgaza. president trump said walls work. nowhere do walls work better in the world than separating the palestinians from the israelis. as long as you're not palestinian what is the problem? and if we don't care about the palestinians this is a great day. jubilant. that is what we are h

and ian bremer of the eurasia group told axios that this looks embarrassing for the president, it's collapsedno one was necessarily predicting and the letter that the president wrote yesterday and submitted yesterday had harsh rhetoric in a way that is again bringing back this threat of maybe military preemption with north korea. >> are they saying he should have gone forward with the meeting despite the rhetoric coming out of noik noik and not showing up for the meeting a week or so ago when they should have? >> they didn't say whether or not he should have moved forward, but they're saying the way in which it's been handled is not necessarily productive given the fact that last summer we were close to military or a war with north korea. and now this is bringing back that threat. so they're thinking whether or not to move forward with it this is not the way to handle it with our best interests in mind. >> what are we hearing from the white house with regards to the summit being canceled? >> the white house is very skeptical of kim jong un's intentions and they're increasingly distrustful of

let's bring in ian bremmer, president and founder of the eurasia group and the author of "us versus theme failure of globalism." first, the topic, the cover of this book. we feel that, man, it's worse here than it is anywhere else. we're dealing with this cataclysm, these fringes, this anger, this us versus them. you say not so. >> i say not so. we talk about trump literally all the time. i was in london and all they talk about are brexit. their heads are just as blown up over that. every advanced industrial democracy in the world has growing populism, growing majorities of people that are saying the system isn't working for them. you see it in all their elections. the only exception is japan where no immigrants, population is shrinking so the working class is feeling better. military is constitutionally forbidden from fighting wars around the world. all of the things that are causing all the backlash in the united states for trump and sanders and the uk, in germany, in italy, in france, not happening in japan. that is a much more fundamental problem with liberal democracy as we have pro

eurasia group's ian bremer and also what's next after the pullout of the meeting with north korea. the philadelphia fed and the ceo of amc, the summer movie season and the movie pass controversy. all that and much more when "power lunch" starts in 11 minutes. don't miss because the halftim report" is back in two minutes this is my headquarters. this is where i trade and manage my portfolio. since i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities - trade confirmed - and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. >>> all right. we're back john and pete are at the telestrator. you're up first. >> yesterday we talked about jd. i'm coming back there because we had more paper -- yesterday we had two unusuals in jd alone they're coming after the september call 5,000 being bought today that's aggressive. that follows yesterday where we had all kinds of different buying of different strikes. some were deep into th

senior asiahe analyst for the eurasia group. great to have you with us.y the water has been muddied by talks of a future live in model as far as north korea is concerned. we've obviously got china talking to many of the players in the background and we've had the military exercises between the united states and south korea also. what are the prospects it is -- that the meeting goes ahead? still a think there is good chance that it goes ahead as scheduled and the two leaders meet on june 12. there is always a chance, and president trump mentioned that today and he's mentioned it before that if he decides that it looks as if he's not going to have what he needs for a successful summit, that he is ready to pull the plug. this could get postponed. if it does get postponed, that isn't necessarily a bad thing. if anything, it might give all the players involved more time to take a step back, take a deep breath, and do a little more planning to ensure they are all on the same page when they do finally meet. there are so mean moving parts right now, with korea an

happens on that front ian, thank you for calling in today, ian bremmer, the president of the eurasias group points they have cut their losses in half, though the industrials lower by about 84 points, the nasdaq lower by almost 3 points and the s&p lower by a little more than 6. eric freedman is chief investment officer with the u.s. bank wealth management and mike santoli is cnbc senior markets commentator. mike, first tell us, give us your assessment of what the market is telling us today relative to what the president did with stopping the summit with north korea >> well, michelle, we see once again that kind of reflex twitch lower whenever you get one of those headlines which i guess in the market's estimation, around the edges, makes a little more trade hostility with china slightly more likely but then you see this market has been much more difficult to rattle on an ongoing basis i would point out it's not as if the market rallied for days on end in march when we heard there was going to be this summit so i don't think the market expectations for results were all that high. i think the

regardless what happens joining me right now to talk more about it president eurasia group the author to see you congratulations book on "new york times" best-seller list good for you -- >> thank you very much. >> o do you think the president completely pulls out. >> he should not. i think he will. but you know, there are the only sanctions that are due up today are oil sanctions. and the other sanctions very important energy sector shipping banking insurance, actually come up until mid july so any -- president trump saying i am going to leave a window next two months europeans can come back to me, with a better deal by then, then i won't have to actually put these additional sanctions back. >> in doing that he will basically effectively say energy sanctions go back in place. >> the oil sanctions. >> the oil. >> absolutely, and that means that. maria: the -- of the deal but soft -- he is going to look at it again in july you are saying. >> what he is trying to do is what is the question is is could being to use a carrot or stick with europeans try to get something better? this is a st

for a look at what is at stake, let's bring in michael hirrsen, the eurasia group's analysis can theyectively negotiation great when you have wilbur ross, larry kudlow, mnuchin. >> it raises some questions. you have not only different players there who will want to assert their views, but also different camps. there's a more conciliatory pragmatic camp in terms of what the approach to china should be. i would put mnuchin and kudlow in that camp, and then you have robert lighthizer, wilbur ross, and pete nor vavorro who has be strong on china. what would be a win here they're only there for two days. it's unlikely they will convince china to up end their economic policy >> i think a win for the u.s. side would be a sign that china's willing to engage on the two main issues that are at stake here the first is the trade deficit that matters to president trump. the other is the substance of concerns behind the second shn 3 -- section 301 investigation. that surrounds china's industrial policies and the way innovation moved to the center of these disputes. >> a lot of that involves protect

. >>> joining us now, president and founder of eurasia group and foreign affairs columnist and editorfor "time" magazine ian bremmer. his latest book "us versus them, the failure of globalism" is out now. congratulations, and his latest piece for "time" magazine entitled "rise of the strong man" is the cover of this week's international issue. i want to start there because you wonder why donald trump actually isn't on the cover or maybe he's inside in some way but can i ask you what have you seen in this presidency so far that indicates a sincere effort to lead a democracy. >> i haven't. he'd like to be on the cover. as you know, he thinks he's on more "time" covers than he has been. but i didn't put him there. i didn't put him there because ultimately even though trump has little regard for support for the precepts of liber democracy, there's only so much he can do as the american president. i was just in london and the queen is about to see trump. and her view is, yeah, not the best of the presidents but i've seen 13 of them, they come and they go, u.s. institutions are stronger tha