komal: right. looking at a swiss firm, and you have interest rates in switzerland across the yield curve -50 basis points. youecb will cut rates so have to do something differently to make money. tom: make a smaller bank. komal: that will be the issue not only with credit suisse but will recur again in the european banking system. tom: thank you so much. in the next hour, not only will we look at the fed. ira jersey is scheduled to join withut meredith sumpter the secondary story that is never secondary, china, not the collapse but the challenging trade talks. it is fed day. this is bloomberg. ♪ ♪ tom: this morning, it is not just another fed day. it is a historic debate on what chairman powell should do. can the united states avoid the negative interest rates of japan and europe? surges, let the cook transformation begin. in detroit, the distance between the moderates and liberals, tonight, biden and harris. this is bloomberg "surveillance." absolutely historic day today. i was fascinated by what

komal: absolutely.the ecb will try to do is to reduce the deposit rate from or -0.6%.0.5% in order to make sure banks are not unduly affected, i think they will say a certain number of deposits are exempt from the negative tax so that banks can make money. you are talking about distortion on top of distortion, on top of yet another distortion. i think it is going to be difficult for banks to make money on the european side, even --ugh not only germans deutsche bank stock went up, but italian stocks are gaining. greece are gaining. i think in the longer terms, the banking sector there will be under pressure. caroline: thank you very -- guy: thank you very much. we should probably mention he is a bloomberg opinion columnist as well. coming up, chips and smartphones taking a hip. trade datas in the that is hammering this company's profit. this is bloomberg. ♪ guy: from london, i am guy johnson. this is bloomberg markets. theung has been hit by trade slow down it seats profits -- trade slowdown. it sees its