our colleagues in new york caught up with the berkeley ceo, jeff staley.ortant passport and rights into the eu. are investment banking franchise across europe is important to us and it's part of our core vision and strategy and we will continue to prosecute that vision and strategy. following the brexit vote we did one of the first euro bond issues was actually for a railroad company in germany. we did the first take ipo coming , privatization in italy. berkeley's presence in europe is important for berkeley but also for europe. i would add in this exit discussion, as recently as last month we had to completely reengineer the legal constitution of our business in the united states. had to execute our banking business in the u.s.. we're currently in the process of completely reengineering our banking presence in the united kingdom in order -- in order to meet the rules, we have to create an entirely new bank called barclays u.k.. isusting our legal construct something we are getting pretty practiced at. wrecks it will be another issue that requires to adjus

how big a blow was the brexit vote to jeff staley's turnaround effort? s is bloomberg. ♪ francine: barclays second banker profit fell as the posted a pretax loss. ceo jes staley spoke to bloomberg earlier about brexit. >> at a bank like barclays, rather than the part of the crisis in 2008, now we are seen as a place of stability, liquidity. we are open for business. we are extending credit to small businesses and consumers. we want to work in cooperation with the bank of england to minimize the economic impact of brexit and be on the side of our customers and clients. francine: for more, let's bring in bloomberg's finance editor, michael moore. also with us is brendan brown. when you look at barclays, the turnaround is tough. will it get better anytime soon? >> the stock is up today and i think that is in part due to staley saying it will get better next year. non-core costs are supposed to drop off by one billion pounds. this quarter still had some tough elements to it. francine: what are we expecting from the next couple quarters? they are impacted by b

staley --ceo jeff staley, youo jes will hear from him later in the hour.nt and investment banking generated less profit, still, ubs earnings beat estimates. ermotti made it a priority. francine, you're sticking with ubs. francine: we are. the u.k.'sout decision to leave the eu, brexit, if you have a large presence in london, is not a good news. always there are opportunities, but we need more clarity about what kind of form take, and vote will then people will be able to evaluate where there are opportunities. there are also a lot of challenges, not only for the u.k., but for the entire european system. is thekey thing for you past sporting -- passporting rights. sergio: it is a risk in terms of finding other options of how to operate. we have a high degree of flexibility. we have strong local presence in europe, so we would be able to adapt and really apply resources should they be necessary. but the outcome could really be that the u.k. retains access to europe. francine: that is the ceo of ubs, sergio ermotti. by -- growing is hurting banks, trading is

francine: jeff daly, the barclays ceo, jes staley. banks are trying to figure out their path forward. italian government has been given the go-ahead by the european commission to apply 150 billion euros in liquidity. ceocredit appointed a new after seeing its stock slump 68% this year. let's get morerom the head -- are italianhy banks so frail? mentioned, there is a big problem in terms of nonperforming loans. 1/6 of the credit extended is nonperforming. a huge amount. and, obviously, our legal system is slow. if you want to work out these huge piles of bad debt, it takes a lot of time. this is something that ecb is not tolerating. they are very worried. they are putting pressure to sell those bonds to international investors mainly. if you have the pressure from the regulator to sell quick, bids are very low. and so, we have to find the right balance between the approach of the ecb, which is sell the debt as quick as possible, and a decent price. otherwise, apart from the losses that italian banks have on the balance sheet, you will