in europe, there's not one single watch list for europe.hey have not developed a way to effectively stop somebody from traveling, even though in this case, the individual was convicted of terrorist offenses. >> narrator: for more than a decade, counterterror chiefs have proposed laws to improve border defenses, such as giving european security forces systematic access to data that airlines collect about all passengers on the continent. u.s. border guards have used this tool, known as passenger name record, or pnr, for 15 years. but european politicians, concerned about privacy and data protection, repeatedly rejected pnr legislation. >> madam president of the council, read my lips: data protection directive. >> we have, you know, maybe a different privacy mindset in certain countries in europe compared to the u.s. it depends on the different cultural historical political backgrounds of each country, and they are different. >> narrator: rob wainwright is the director of europol, the agency tasked with coordinating law enforcement across the

or less of europe? it's certainly an important question. there are lots of responses. the french government has taken a very interesting position, i think, when it comes to everything from military bases and military solidarity to rethinking the economic bases of varying regulatory agendas. if you had any comments or thoughts on that. >> when you ask the question to french diplomat, immediately the answer is better, you hope. you know, really. i have to learn my job. so better, you hope. no, again, the problem that we have been facing is obviously the fact that a lot of our citizens, not only in the uk, a lot of our citizens are disenchanted versus -- considering -- i think david said was on the front line of globalization. for my generation, your hope was something which really we couldn't question. you know, it was the way they -- the war that devastated the continent and pros pearity and security. it was all these elements. obviously for a lot of europeans and especially -- it's not anymore the case.

our topic today is europe in disarray. unite . was created to europe after the war but it has seldom looked so divide as in the past few months. first the crisis over britain's decision to leave and now the trade deal between the european union and canada is on the verge of collapse. they can't even agree on a common policy for dealing with more aggressive russia. short of-term needs are taking precedence over the common european good. is it all over for the e.u.? we have invited three renowned journalists to help us answer that question. you pleasure to welcome will reich herrmann. she says the e.u. will notot break apart. and we welcome malte lehming, who says even if an agreement on ceta with be reached, the e.u. is still experiencing its greatest crisis ever. and finally, andreas kluth, of the economist. he says all the forces in the e.u. today are sent riffugal in t's hard to imagine in other six decades the e.u. will exifment so, clearly dive ergent opinions there. ulrike herrmann, the pessimists would seem to be in good com

in europe it's the opposite. when a greek bank has a problem greece has to bail it out and that weekends the greek government even more. they have to pay for the unemployment insurance. they have this downward circle. so that gives you a hint about what is required. one of the things you have to have is common deposit insurance otherwise money is going to leave the week countries and go to the strong. the idea of having a banking union is now accepted but germany says not now. sometime in the future. but of course the damage is being done is going to be hard to reverse. when money leaves the spanish banking system they're not going to come back quickly. in in the same thing about the people. one of the things europe did unknowingly and i don't think many people realize at the time was they created the sovereign debt crises. something i saw as a cheap economist of the world bank. when you borrow money and a currency you don't control there's a risk of you not been able to repay. the united states will never have a

, europe should be getting those profits. so, his answer was if they tax it we can't because of the debt. there is a fundamental flaw in the tax agreement in our tax system that the answer is a very simple one. you have the taxation based on the economic activity profits generated in the activity that occurs in that jurisdiction. there are problems figuring that out but what is clear is it wasn't this homwasin this home o employees to generate all the prophets and it wasn't even iger land. and you know what, we were cheating but that is the way that everyone else does it but rather than be honest, they tried to be shocked about what happened. >> i have a question. i also just wanted to say representing the upper west sider's we appreciate you coming from this barnes and noble in some place in soho or washington, d.c. or something like that. >> there is a laboratory of sorts for the kind of things you are speaking about and most people would acknowledge that it was mostly politically driven. can you speculate on what one would

to me there's two ways for, there either has to be more europe or less europe. ie, the euro zone has to integrate more or it has to figure out ways of disintegrating. the -- if you think about what does it take to integrate more or what is the minimum necessary, a natural place to begin is what makes it possible for the 50 american states to share a common currency and one of the things it's very easy to migrate from one place to another, if california has a problem, people move to other places. there's a fundamental difference between migration in the united states and in europe, though, if everybody believes south dakota because there aren't many jobs there, no one really cares a lot. i mean, a few people in south dakota do, but if everybody leaves greece, people are not going to be happy, at least the greeks are not going to be very happy. the nature of national identity is really different and related to language making migration much more difficult, but far more important, other important parts are the fact that when washington mutual, one of our biggest ba

europe free, that's been our focus, but today, europe is fractured and anxious.nd unless we sort of get that discussion going again about how we work on these thing us together, not just how governments do it, but how populations think we're working on it together. that's probably the more important job as public diplomacy part of that. i think getting governments to do more systems and doing hard. >> i agree with what dan and kurt said. the strong declaration at the next u.s. administration is extremely important. not least because of what dan noted about the burden sharing debate and the extreme criticism of nato at some points in this presidential campaign. so i think, you know, addressing the way forward with our nato allies is extremely important. and keeping up the momentum on resources which has been built up so effectively over the last couple of years. and is, you know, bearing fruit perhaps slower than some would like, but is moving in the right direction. keeping that moving, it would be important as well. >> i agree with the good ideas that have been

we had never had an army in europe. at the beginning of world war i, the united states was tied for the 13th largest military in the world, tied with serbia and greece. by the end of world war i, we had 4 million men in uniform, having on from 200,000, to 4 million. them, 2 million service personnel, were in europe at the end of world war i. just the logistics of that are astounding. real life, when world war i a rocket, the combatants were not even concerned about america's role. yet today, we think of america as an indispensable power in world politics. but other beginning of world war i, we were an afterthought. it was woodrow wilson who achieve that transition. in botheard president political parties say, in my lifetime, that the united states doesn't go to war to build an empire or acquire territory. -lego to war for principal- -- for the principle, for the right. it was woodrow wilson to enunciate that proposition. love that 20 years early to the beginnings of the spanish-american war, which was about taking over

in europe were not so surprised. once we knew that the united kingdom decided to have a referendum on the subject, it was always going to be a close call, whichever way it went. the former french member of the european parliament said after the referendum that before the referendum, the decision of was one footngdom in and one foot out and after the referendum, the situation was reversed. some of you got that. it is truei think that there are a lot of u.k. specific elements in this outcome. a hesitation about joining the european union. u.k. had a referendum only two years after they joined. they had a referendum to confirm that the actually wanted to still be a member. and i think the slightly summit attached nature -- they were not part of the euro and i think there has always been a healthy strong body of opinion in the u.k. which was frankly reluctant and reserved about membership, if not downright hostile. so once you open the possibility of a vote on this subject, i think it was always going to be a close call

, but important also for institutions in brussels in europe. so the only consequence constitutional reform imparts in the political debate in my view is if we win italy will be stronger. in the debate in eu. and so i work strongly and hardly to achieve the victory. ah. sorry. [ speaking in foreign language ] >> you are american. not italian. american citizen. okay. >> i will ask the question in english, or in italian. >> translator: so let's talk about the referendum, because you hope to win, of course, but we've found many investors at wall street who are worried about the fact that you might lose the referendum. these are investors that have faith in italy, and that threaten, if there is a negative result in terms of the reforms, to just leave. so what can you tell these investors in order to reassure them to, if there is a negative outcome, will you stay on? will you continue with the reforms? and one last thing. this evening will you bring some wine to the dinner with the president? this is an italian custom. >> i agree with the prime minis

you are in the middle of europe. but you have a beautiful vantage point on what's going on in europe and i also have particularly strong concerns obviously about germany and italy in the banking or a very interesting concept to think about. in some ways one would think this is due weakest economy in europe and how worried should we be about where the european banks are because we are constantly told there are movements to the european union and european banking units and european regulation. the big and important changes yet it's difficult to to remain in you yourself pointed out that merely part of the discussion it remains a currency union without a fiscal union. >> looking outside at what has happened to does banking system over the last half-century they have created a gentlemanly genuine banking system which they didn't have. that hasn't happened in europe. >> is about the logic and somebody asked this as you get really european banks operating across borders and scale the way the big american banks are, instead

i believe that europe can and should do more.ers the american example as the reference point in this battle. of course, we also know that we have to do our homework at home. the structural reform and therefore what the president just reminded us of is the priority starting with the labor market reform. i had to ask for his forgiveness because i used the expression job's act which is obviously something that i copied but this is something that is open-source and i think that we can copy each other's expressions from the great initiatives that were set forth by the obama presidency. this has created 588,000 new jobs in italy which italy are still insufficient but at least there's a first step to leave our difficult situation. thank you, president obama, for the work that you have done as a leader in the energy field. today litly is one of the main nations that sustains and upholds the vision of paris. we will be working in november. the next few years we will be working in order to have clean energy sustainable environment for our

committedare deeply in europe's success resolving this issue effectively. now, obviously, there are a lot of contributors to it. we are very focused on strengthening the government of national accord as i indicated. secretary john kerry and others are working with his counterparts on a multinational -- multilateral basis to strengthen the government and resolve tensions that exist between the different portions to be able tothen invest and build in their capacity to control their borders and their waterways, if we do not have a partner on the other side of the ocean that is going to continue to be a problem. that is point number one. number two, we are deeply generositye of the and humanitarian impulses of the italian people in wrestling so many people through operation sophia. what it in warsaw during the nato meeting was to indicate that although that is primarily an eu mission, nato and the united states and our naval assets are prepared to assist in a robust way where appropriate. it is just a matter of coordinating with europe to find out and italy and

it was not only europe that these changes were felt. africa, too, became a major participant in the columbian exchange. i want to put a little extra emphasis on the african case, because we tend to overlook it, preoccupied as we usually are with the dramatic story of early contact between europe and america. the fact is that plant forms from the america were transferred to africa even more widely and rapidly than was the case with europe. corn, first of all, then manioc and yams and sweet potatoes and peanuts and beans and tomatoes and cocoa and squashes of many different kinds. in fact, these have long since become the major food sources for vast areas of equatorial africa. one more thing here -- from the start, the transfer of these food crops to africa was all mixed up with the slave trade. slave dealers had to start their shifts with enough food to keep their human cargo alive for a lengthy ocean voyage, and foods like maize and yams, when you drive them out, will keep for a very long time, and therefore food that can be precisely u

in the context of europe, there are many clients who ask us about val situations in europe. think -- valuations in europe. i think for us it's important to look at the european valuations ex-financials where they are not quite as cheap in our vue. we still think that a bet on european equities you have to be he reasonably sure we have seen the bottom in the european banking sector as well. vonnie: returning to the u.s. we're seeing yields rise a little bit. 20 basis points on the 10-year. 1.86%. i do want to return to that 2 1/2 percent inflation. you said maybe it's after a dollar oil prices, and we're seeing things like -- that doesn't necessarily mean that it's good inflation in the sense we have more demand from the economy and that employers will pay workers more, does it? >> well, i think that the -- clearly we're much closer to full employment, wherever full employment is, we're closer. and that should eventually lead to wage inflation. you could sigh -- say that one of the themes of the election is how evenly is that wage inflation distributed and things like that. b

the euro how common currency threatens europe. europe is in the headlines a lot right few. not just because after currency crisis. recovery from a debt crisis. but now the migrant crisis. and conflict in syria. growth and nationalist parties. they have a lot of strain. talking about brexit there. but for you, when you look at europe, the biggest problem you see is the monetary union itself. are you predicting its demise or are you trying to save it? >> both. i really am trying to save it. this idea of bringing all of the countries of europe together, which is sometimes called the european project, is a visionary idea. they would have two world wars. they didn't want to repeat that. but they made a big mistake. they put the cart before the horse. they thought that forming a single currency would move them further along the way and they pushed this economic immigration, i think, before they created the political institutions that would make it work. and before there is enough solidarity to create the political institutions and consequences i think have been very, very serious

on top of that we have a better income distribution in europe. very strong point for europe. the last 15 years, 80% of european households have seen a real income gain. in the u.s. it's only 10%, 20%. >> i've been interviewing you for years, all the way through the crisis. this is about the most angry i've seen you on this issue. >> maybe i'm getting tired of reading again and again these negative views on europe which have nothing to do with the facts. i think we have demonstrated the last six years what we are able to do in a crisis. would it have been better to do it earlier and not get into such a crisis, but we did what needed to be done at the time. and now the euro area is much stronger than before. >> james is still with us. james barty, head of global cross asset and european equity strategy from merrill lynch. there will not be the death of the eurozone, we're together. the euro won't disappear. >> you would expect him to say that where he does have a good point is that a lot of american academics have been calling for the end to the euro almost since it started. i

italy and europe have to do their part. italy will increase efforts for international cooperation and the ranking of g-7 for international cooperation. we were the last in the classification. it's not a good position. we will reach the fourth place in the ranking in terms of gdp which each of us proposes. we have an increase in terms of the money in international cooperation, in funds and in terms of libya we know they are working. we want to stabilize the government. we want to make sure there is a block of all the brothers and sisters that leave their country every time they go to sea they risk dying. we are happy and very proud to help save lives, but the ocean is one of the worst places to do that. we don't want the mediterranean. we have to have a long term strategy and short term as well. we are proud of what we are doing. the method cannot go on forever. we cannot think of being in charge by ourselves of all the problems libya and africa and from this stance on thursday and friday at the european council we will talk

nejra: down to morris is staying with us here on daybreak europe. manus: the eu foreign ministers are meeting at 8:00 this morning, uk time. syria and the migration prices will be among the top issue -- migration crisis will be among the top discussions at luxembourg. nejra: we will hear from the fed vice chairman, sammie fisher, at the economic club of new york after saying the rate decision in september was a close call. manus: tomorrow, the oil and money conference will get underway. hamed al-falih will be among those speaking. bp and exxon will be there. nejra: the third and final u.s. presidential debate is being held at the university of nevada in las vegas. manus: we will get the rate decision from the central bank. mario draghi will follow that up in a conference. the american dream be fading for the lender? manus: the biggest banking merger is almost a decade against the green light from it investors. we look to the european the earnings season. this is bloomberg. ♪ manus: it is rather over cost in the -- overcast in the hong kong harbor. t

♪ damien: hello and welcome to "focus on europe." i'm damien mcguinness.reat you could join us today. europe right now is having to deal with numerous problems, such as the refugee crisis, that are having a direct impact on the lives of ordinary people. but many europeans are also still dealing with painful memories of the past. 70 years have gone by since nazi soldiers shot 700 men and boys in the greek town of kalavryta. some of their relatives want to move on. others though are calling for compensation, such as this man, who says germany should be held responsible. but more of that later in the programme. the story of lorenzo. first, an italian writer who is traumatised by memories of a more recent event, something that happened 15 years ago. during a g8 summit, being held in the italian city of genoa, lorenzo was one of hundreds of people hurt in violent clashes between police and anti-globalisation protestors. peaceful demonstrators, like lorenzo, were beaten brutally by police. and although the wounds may have healed, in many cases the mental trauma

isit daybreak europe -- this daybreak europe. up have to percent for the u.k.alf a percent for the u.k. currency. let's get the business flash. >> netflix rise of 3% in extended trading after they gain more subscribers in the third-quarter which helped settle investor concerns about slowing growth of the world's largest online tv network. thateo told shareholders stranger things and narcos will make it more profitable in the next year. the's lowest third-quarter sales growth in more than decade. says revenueiggest increased 2.1% on a basis. total sales fell as volume dropped for the first time in six quarters. a slowdown in baby food, traditionally one of the company's fastest-growing businesses. mark swartz, the asia-pacific chairman of goldman sachs, will step down and be in advisor to the form -- be an advisor to the firm. goldman sachs is due to release third-quarter earnings later today. that is your bloomberg business flash. manus: thank you very much. the federal bank chair stanley fischer warned of risks to running a high-pressure economy. anna: speakin

luke: as long as europe six -- europe sticks together, it is not a dangerous trade.a solid trade? luke: it is ok. guy: luke, it has been great to see you. indeed.u very much up next, back to the pound. class crash out in asia. more on that story -- class crash out in asia. more that story next. this is bloomberg. ♪ guy: welcome back. you're watching "on the move." let me talk you through the markets and show you what is happening. look at the impact the pound is having on the ftse 100. the highs are 71.22. 78 are where we are trading. let me walk you through some of the individual movers. it is interesting the breakdown we are seeing today. hit.et taking another the pound and the impact we have seen already by the company is a big factor for investors. we are pressing more of that in? .8%been stuff brought up by . anglo, look at the translation affect. you're seeing the ftse 100 as the pound price starts to rise. they are respectively global stocks priced in pound, lifted on the ftse 100 and they are .ocketing today at 3.2% the pound continues and probably will be fo

and china and true with europe.y doing very well but our mass market division is really accelerating. also everywhere. re balancedch mo activity that we have now between the different divisions. francine: does that surprise you, or was it always natural hedging? jean paul agon: you're right. it's a balancing act. for us, the fact that we are o different markets and different channels and different divisions has always been a very important element of l'oreal, because it gives us this balance. and this capacity to grow whatever happens. because every year there is something wrong happening somewhere. but because we are a very global company, in countries, activities, price points, alli in all, we can manage steady growth. francine: talk to me about your partners and innovation or your startups? did you try and buy them when it is proven that what they do works? jean paul agon: we try to do everything. we try first to spot at the very early stage startups like we do here. we held them. sometimes we partner with them,

overall we are seeing stocks trade lower in europe.out the stronger dollar, so we are seeing the euro down. sterling getting pounded yet again, down 8/10 of 1%. lowest in 31 years. it's partly on that stronger dollar but also on these a hards mounting about brexit. those are the concerns across the currency markets. a little bit of a mixed picture, 10 year yield in the u.k., five basis points. a look at the movers we have been focusing on today, the biggest gainer. this after a report that a chinese company is planning to bid for the german maker of light bulbs and leds by easyjet downthen by 6.4 percent right now after reporting its first annual profit decline since 2009. easyjet down by 6.4 percent right now after reporting its first annual profit decline since 2009. terror attack hurt demand and the weaker pound inflated foreign-currency costs. we are indeed down 2/10 of 1%. easyjetsecond day of losses for europe's equity benchmark. we are seeing the bank index move higher. over three days, the sticks -- stoxx 600 inc. index of more

. >> welcome to bloomberg day break europe. 'm anna edwards. manus: five years have been defeated, we went behind the data and had a look at a couple of different things. 5, 6, 7.line, b.t.b. the blue line shows we're expanding. ere's a satellite out there, two billion observations, so this space view of what's really going on in the economy. you may be trading less with china but the cost of goods in china is rising. that's the key message over the past 24 hours. anna: yesterday we were worried about china, today seems to be about stabilization in china. you can see how this better data in china is having an impact. it's bouncing up .4%. that's the china story as is the sell -- we're selling of the yen down around a third of a percent. yesterday the yen was up on concern of export, today the yen s dun buzz of stabilization. manus: everyone comes up with the cliche, it's more about dollar strength than yen weakness but these two indicators are about a proclivity for risk. the thai bhat there, it advances 1.6%, the most since 2013. it's headed f

the apple of europe because of the way that it moves. not because it is the apple of europe's eye.er company is also getting punished, down over 12% this morning. this is the divergence. novo nordisk is down. come back to this. sanofis is also down sharply. a buy that.nnounces it does not disappoint in the insulin area or the diabetes area. it is doing significantly above expectations. why is novo nordisk telling us one thing in the diabetes space and sanofis telling us something different? u.s. storys, it is a but the u.s. the will definitely be there. bob, give us your take on this. bob: i think this is an interesting observation from your chart which is that we have had positive news from senate fee -- sanofis. we have had negative news on novo nordisk. 5%.upside on sanofis the downside for novo nordisk, 17.5%. we have a downward skew. of a markettomatic where trend upside is very limited. areof my themes is that we going to have a lot of company and sector rotation -- the risk skew in the market right now is to the downside. caroline: is it about diversifying for novo nordisk?

italy and europe must do their part. international cooperation and for the international cooperation at g7. we were the last in the classification, the seventh, it is not a good position but we will reach the fourth-place in the rankings in terms of gdp. which each of us proposes. so we have an increase in terms of money and international cooperation and funds, and in terms of libya we want to stabilize the government, make sure that there is a block of the brothers and sisters that leave their country every time risk dying.ea, they we are happy and proud to help save lives. but the ocean is one of the worst places to do that. we do not want the mediterranean to become a cemetery, so we need a long-term strategy. and we need to have a short-term strategy as well. we are proud of what we are doing, but we know this method cannot go on forever. we cannot think of being in charge by ourselves with all of the problems of libya and africa. and on thursday and friday at the european council we will talk about this. prime min.

will bring you the latest from europe's banking sector -- we will bring you the latest from europe's sector. this is bloomberg. ♪ francine: welcome back to "the pulse." markets a little bit flat. let's head to the bloomberg with nejra cehic. nejra: if we look at the stoxx 600, where up .2%. the german markets are -- we are up .2%. the german markets are closed today. that brought a little relief to asian markets. in europe, where up .2%. -- we are up .2%. using the imap on the bloomberg, energy stocks leading the game at 1.4%. not a surprise given crude oil leading the rise today. perhaps a little bit less concern over deutsche bank and we have had a mix of news over the weekend. reports about thousand planned job cuts. one of the biggest gainers on the stoxx 600 today is henderson group. this is the chart over two days, up over 50% at the moment. to --fter it agreed agreed to buy janus capital creating a money manager. both companies looking to revive asset growth and profits in an environment where asset managers have been losing out to lower indexes. this is henderson group, bigge

sven: certainly, and not only europe.lean. 2013 -- 2030ntil -- we must have emission free cars. --tever technology develops i cannot see that the diesel can -- we haveil we have a clean air problem everywhere in the cities. european law is broken in terms of clean air. think you very much indeed. a member of the european parliament. caroline is here in london. she will be back in berlin. ♪ china is said to be planning a merger in a deal that would $100ine assets worth billion. rise.factories tough talk. the e.u. president says any brexit we be painful for britain as he stresses europe's red line.

to have to europe to make investments in europe to help europe grow.g seth back into the conversation and get a look at what is happening. aboutorning, talk to me how the story is going to develop in europe. if we do see a hard brexit, if the british banks and the tight -- how capital flow and will that impact european growth? seth: it will not be good for the u.k. or europe, either. the impetus for brexit was a political decision, not an economic decision, and the biggest problem for the europeans is the u.k. is a big market for them, and also, it is the center of global capital markets for many products. if there is uncertainty about how either of those uncertainties will persist, that will affect investment and all -- ultimately affect the ability to get deals done. , if the key money question we assume u.s. corporations can be removed on the u.s. political economic debate, can we make the , thatistinction in europe nestle or others can be removed from this crazy political economics of europe and the u.k.? was at one point a vision that the world wa

europe had faith in churchill. he had faith in him as a customer, so whenever whenever he missed loan repayment deadlines or failed to bring his overdraft back under the promise limit. he tried to make sure that within the bank's hierarchy, he was given another chance. on the few days that he wasn't, he would always sorted out with insurance companies instead because he was an insurance specialist. [inaudible] the oldest son was always going to be looked after by the husband. she worried about the younger children. she left through the children over younger children. she knew she had three grandsons at least and there werin

let's go to europe.rly though you could also comment on the wider things the europeans face some pretty big challenges at the moment. the eu is still slowly evolving eurozone situation and it seems to be getting better, but lots of unemployment in italy, russia is not a political risk but the migration issues with migration, my country has decided to go in sign. completely, utterly, senile dementia. what do you make of europe's prospects? can you sell me this region? >> looks like you have summarize the issues pretty well. first of all, more generally speaking, the state of the economy and the global economy is quite challenging. if you look at it between the policymakers, academics and the market itself, there is almost no consent on why we are and that would be my first observation. this lack of growth that we are experiencing for the past six years, i fully agree we are starting to see the ability to forecast and dissipate. this has been reduced to an approximation at best. we know we can't count any

and europe rather than just 20 miles off the coast of europe in 3000 miles away from the u.s.ohn: they listen to theresa may 's speech and they heard this voice which sounded much more critical of business meant pretty much everything we have heard for a long time. more critical than cameron , more critical than tony blair. is this a government that is antibusiness in some way? ? was that the message you want to send mr. hammond: absolutely not. this is a pro-business government, strongly supportive of open markets to my free markets, open economies, free trade. -- and have a problem of it is not just a british problem . a developed world problem, in keeping our populations engaged and supportive of our market capitalism economic model. that the economy is not working for them anymore. that they are the losers of globalization. that it works for some and it does not work for all. a recognition that we have to reengage those people who feel they don't have a stake in the economy anymore. for liberalest market capitalism to be firmly rooted we have to address any symptoms, any s

and certainly you have heard because of looking at the numbers in mainland europe, no slowdown in europeresult of brexit. manus: when we look at the areas you are involved in, he went europe could benefit from a harder brexit or the relocation of financial operations away from the city of london. isit your opinion -- where -- what is the biggest beneficiary? >> if it would be a hard brexit and business would move to europe, we would be a beneficiary. that would be good news for us. whether it would move to amsterdam, frankfurt, or paris whichwould be them -- would be the three main target areas. anna: are you making plans for that? know, we are not. we are in contact with our clients in the financial area every day both in the u.k. and mainland europe but we do not see any signs of that. much forank you very joining us here on daybreak: europe. the ranstad ceo joining us from amsterdam. anna: china's offshore yuan is trading at record lows in response to plants from the pboc. causing concern for international investors. anna: patrick armstrong is still with us. what do you make of the we

it is the biggest bank in europe.em with deutsche bank, over the weekend, there was n news about this, no confirmation that the fine was going to be smaller. we will see what happens when the german market opens tomorrow, a holiday today. optimism on friday was not really that unwarranted. nejra: you made the comparison with the u.s., in terms of how much banks are a critical component of the european economy, perhaps not in the same way as the u.s. what about energy shares? >> that is an interesting point you bring up here that was one of the cases in the u.s. last year. remember, everyone was talking about oil and how oil stocks were driving the market. it was actually the smallest industry group on the s&p 500, but people were so obsessed with what oil was doing every day, up and down the market moved with it. banks are a much bigger proportion of the s&p 500 and oil shares. in europe, oil is also a very .mall industry it does move markets, but banks are really dominating headlines now. vonnie: thank you, sophia. s

when you are in europe, it is much more difficult. these are the challenges for europe.opean domestic market. talk or get did not into the nitty-gritty of bnp paribas. it is kind of a quiet period. how they can attract talent and retain millennials. tom: francine lacqua, thank you so much. we greatly appreciate it, in paris this morning. let me quickly do a foreign exchange report. 12243.g, euro-dollar, 1.15 as well. adam parker, i love the comment jamie dimon made. bring up jpmorgan. i will call it a bounce back to a 68 handle. , adam, ton says enhance customer engagement. his corporations are removed from the engagement of our politicians, the engagement of our global economy, and all the doom and gloom that is out there. there will be failures and successes, but the companies you follow are just moving forward. adam: last week, the jobs report, 180 million people in the jobs report. the biggest look equities have 38 billion u.s. employees. i think the 20% that matters is better than the broader economy. it is funny that you have an innovation congress -- that you have

we have seen this in europe as well. i think the elections could tell us more about the degree of protest votes in europe and the degree of anti-eu sentiment, and whether or not the eu is faced with a risk. francois hollande pointed out last night. francine: let's remind ourselves about the huge -- and this was tom's chart of the day yesterday -- current account deficit in the u.s.. that is coupled with a possible parity call, it spells disaster. the only thing important to appreciate as we were worried about a hard brexit for a while but it is difficult on how it stresses the market. the equity market is driven by foreign earnings in the currency was the most honorable. the other thing we saw was after this peculiar statement that theresa may is going to raise interest rate, may be the central bank is not independent anymore. the optimism relative to europe, i hope we are wrong but this feels like an earthquake in britain. tom: let's go to the shock and all last night. -- shock and awe last night. those red circles or t

and the difference between what we have in western europe and eastern europe to the judiciary without exception, so we're talking about within the balkans down to southeast europe. that makes it very difficult. that's why we wanted to focus very much on state capture. and the example of latvia shows that. if we're able to get our financial intelligence units, our organized crime units, our regulatory bodies working on concentration on monopolies, that is going to reduce the pressure. that is the antidote. >> kathy? >> i'm happy to say first of all it's not the state department taking the lead on what the response will be. i think that's a better question directed to the white house and the intelligence community and the department of homeland security. but in terms of response, there needs to be a thoughtful, principled strong response that see sends a clear message and assigns responsibility and makes it clear that we don't tolerate future intrusions. but the other part of it -- and i know department of homeland security is working on -- is resilience and defense of our own systems.

i use it for europe.ou said your great episode from in argentina and mexico but you never said your great in latin america. >> i did say where the number one bank in latin america spewing but you never that latin america is greater you say brazil is doing well, argentina simple and so on. europe is not doing well but we have double-digit growth in the czech republic are double-digit growth in slovakia. double-digit growth and many of our countries, long growth. is booming. so that a very good countries in europe, but as europe is not really working extremely well. i believe in many european countries. i have my doubts about europe over all. >> i will end on a high note as well as reflecting on your rather interesting idea of political reform. can you join in thanking what's been an excellent panel? thank you. [applause] ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> all right everyone. we will get ready to get started on our necks very exciting session so if you're talking in the aisles, i

to have access to europe, to make investments in europe, to help europe grow.lix: that's what jes staley wants. that's not the reality, though, that's shaping up on the ground. how does management need to pivot now in the next six to nine months? barrington: i think management will have to play a very careful game here between thinking about the future and planning for the possibility of the hard brexit. whilst at the same time recognizing that london is the hub of finance in europe. it has the talent pool. it has not just the financial services industries, but it's the firms, the legal firms, it's the infrastructure that london has. it's going to be very hard for every major financial institution hubbed in london to pivot to dublin, to frankfurt, to paris. that is going to be a big challenge. i think that the banks are going to be looking for middle way, which is to establish enough presence in continental europe somewhere to achieve the european passport, but at the same time, keeping probably a lot of frain structure in london and the u.k. i think it's going

-- then a united europe. -- than a united europe. their senses the global capital and deletes are not attentive to the ordinary concerns of people, that would be a tragedy. is that thesense areal capital and elites not attentive to the ordinary conservative people, that would be a tragedy. he reformed the promised or is initiative, certainly on the economic side, are the right ones and in a global, internet driven world, governments have to move fast and quickly and transparently. rooting for success but i think you should hang around for a while no matter what. thank you, mr. president. i would like to ask you about the election, donald trump telling his supporters that the election is rigged and asking them to monitor certain areas on election day. how concerned are you about the potential for violence and what about after election day, are you worried about the election may be distrusted? zi, theme minister ren offensive in mosul has begun, are you concerned about what happens after liberation? weigh-in.ent, you can one of the gre

they are a high beat on europe. they will pop if europe's stock shows signs of life. of their effect on equity markets, though, when you talk to u.s. investors, they talk a lot about european banks, and they seem to have a psychological impact. weird to see the psychological effect seat through. what are they saying right now? >> i agree, they are focused on banks . they have become a smaller sector. weird to see the psychological effect seat through. but they can move the markets. they can move the markets for two reasons. there's general indicators about the eurozone economy. the banks are crucial in terms of lending, so that is one crucial thing. goti think the banks have bigger amplitude of moves. even though they may not be the biggest sector anymore, the volatility is still going to drive the market. many years ago, the dax was always about the weather in europe, and at this moment it is the banks. they are the ones the suffering the most, and it is there recovery which is seen as crucial. but it's not the only thing. another thing u.s. investors are confident a