exclusive, morgan stanley's james gorman tells us he is still bullish.ngland governor gets ready to face mts in his last public statement before the pre-vote. what would an exit mean for its business? we speak exclusively with jes staley. this is bloomberg

more with james gorman.e told bloomberg that he thinks britain will choose to remain in the eu. >> my guess is they vote to stay. should they not, there is a two-year transition. it will have some impact on global investment banking businesses. some increased expenses, but it is not that meaningful. i'm more concerned for the markets. rightly for the state of the european union which has been an extraordinary success over 70 years. tinkering with that model just doesn't seem to make a lot of sense. medecin is still with us. you listen to them and you think the market is still going to be fine. the market looks really relaxed about a brexit story. jean: the market has chosen to focus -- that is where the risk lies. if you look in polls, it is pretty even. when you look at the bookies, it is a very large majority in favor of the remain camp. the biggest risk might be complacency ahead of the vote. -- kind of like a call, if the kind of wake-up call, if -- guy: how do i position my portfolio back of walk me thr

this is according to morgan stanley ceo james gorman. clusive interview with stephen engle, he expressed confidence in the world's second-largest economy. have a listen to what he had to say. james: it's the second largest economy in the world, it's growing last year and six when i percent. whether that's exactly right or not, it certainly growing at a thandemonstrably faster the rest of the world trade the third's largest economy in the world with japan has negative growth. forced largest is germany with 1% in the largest is u.s. with about 2%. i will take six plus percent any day. percentagewise, yes, it's slowing. china accounts for nearly 35% of growth. >> how about the unvarnished view on china? saying the debt problem at the banks is far worse than anyone is reporting. upwards of 22% of outstanding credit she says the chinese banking system will go in pl -- npl by the end of the year. needing big bailouts. npl is going to rise. the chinese economy is a complex , enormously complicated set of things going on, moving from an export le

now james gorman says he is bullish on china despite the slowdown.loomberg, he said china will face what he called some bumps as it transitions to domestic demands as its main driver. >> the chinese economy has had 10 trillion -- economy is a trend -- is a $10 trillion economy. it certainly is growing at a rate demonstrably faster than the rest of the world. japan has negative growth. germany at 1% and the largest is europe with about 2%. percentagewise, yes it is slowing. china accounts for newly 35% of global growth. >> how about the unvarnished view of china? -- with the interview saying the problem at the banks is far worse than anyone is reporting, upwards of 20 bridge -- 22% of outstanding credit and the chinese banking system will leaving trillions of dollars in bailout. >> that is pretty obvious from where they are currently. the chinese economy is a complex , in normal sleep complicated -- enormously complicated set of things going on to a domestic demand economy. moving from a consumer savings economy to consumption economy. all of these ch

more from james gorman about 20 minutes from now. do stay tuned. let's catch up with some other stories we are watching today. >> sources told bloomberg that deutsche is subject to an investigation as to whether the bank inflated the value of securities in its trading business and hid millions of dollars in losses. cryer has another headache with moody's rating it as junk. they say they have been week for several quarters and face substantial headwinds, including low interest rates and macro economic uncertainty. sources say the ceo of deutsche's latin american operation is to leave. we are told the company is quitting the region, including argentina and mexico, and will cut half of its jobs in brazil. it is estimated to affect about 25,000 positions globally. more banks may have been hit by hackers than previously reported. an eu financial services conference will help clients make system checks. $12 million was stolen from an ecuadorian bank in january of 2015. haveal u.k. letters privately been lobbying the bank of england to push cyber defense.

shery: that was morgan stanley ceo james gorman in beijing.avid: half a world away, jes staley was asked where -- where he sees european bank lane -- banking over the next two years? mr. staley: barclays is can -- committed to the u.s. investment space. we like the hand we have between new york and london. we are a set up bank and the u.k.. 30% of the country's gdp goes through our payment systems every day. we have a strong consumer business in the u k, germany, and the u.s.. we have more credit card uses in the u.s. today that we have the united kingdom. we have a great corporate bank, a strong investment bank. we have some news on deutsche bank today. is it better for you if you are stronger on your own, or do you need at her rivals in europe? mr. staley: the investment banking industry everywhere is having a difficult time. you could argue that almost no investment bank, the american, german, or british, is covering its cost of capital. for thenot healthy financial system globally. it is not just an issue in germany. it is an issue also in

james an interview with gorman of morgan stanley and we spoke with him about business. elieves his business is doing better. james: the returns were modest, they were not where we want, but i was not troubled. on this,as on my own but i felt pretty good about the first quarter because this was a very challenging environment and we produced a 6%. stay tuned. gorman, like many bankers saying this is a tough environment and he is feeling good about trading in the first quarter. let's get to michael moore who follows the u.k. banks. when you look around the world, there are so many risks and that means risk to trading and capital markets. michael: it does, and it does not seem like that is going away. you had some analysts come out and say the second quarter is likely to be down again after we saw significant drops in investment banking revenue in the first quarter. while gorman sees upside once things get better, the question is when is that going to happen? i just mentioned this, i refuse to believe that things are normal in a millieu of negative interest rates. what are y

looking ahead, don't miss our exclusive interview with the morgan stanley chairman and ceo james gormang and singapore time or 10:10 a.m. in sydney. cap's up next, the yuan its longest losing streak. details and your fx headlines coming up next on "first up". ♪ haidi: it is monday, the 23rd of may. fx headlines. a lot of losses have to do with cap's atrength, yuan third week of declines. it fell against the greenback this week. the researching dollar is testing the pboj tolerance for a weaker currency. between onshore and offshore yuan and volatility jump. a june rate hike could accelerate china's capital outflow problems. markets, indian rupee saw its first week since january on speculation that fed rate hikes will accelerate outflows from emerging-market assets. the rupee retreated 1% last week, down 2% this year, ages worst-performing currency. overseeing holdings fell by $634 million in four days, the biggest tech line in 12 weeks. the slow pace of pushing through structural reforms and policy by the government also seemed to be putting for their downward pressure on the rupee. when