mifid came about as a result from the financial crisis, how does mifid ii take into account of unconventionalonetary policy on the markets? >> that is not the challenge of the mifid, the challenges, to bring as much as possible trade to a regulatory framework so that there are no unregulated markets. the question of liquidity markets, which is different, i will discuss that with stephen, we have difficult is -- we have difficulties but liquidity is not the problem itself. liquidity goes to unregulated markets and that is what we want to avoid. nejra: one big issue as well is investment research. this issue of unbundling research costs from trading commissions. we had all sorts of quotes the reported on, some as low as a view thousand euros for research. is there a point which research become so cheap it is an inducement and do you think regulators should be looking into this? >> i think what we have done is to make transparency in this area. with this closure ruling, we have established, we are fulfilling these criterions. it can be the case that the new inducements, especially in member stat

that includes having to deal with mifid ii among other things.are trying to work out how to transport it into u.k. legislation. which is challenging in terms of timetables and load but we are having to do that obviously. the commitment of the u.k. is that on day one, we essentially have the same framework of legislation, rules, operating as is the point from which the u.k. goes forward. nejra: does this in any way mean you will have to adapt more as -- as the fca, u.k. firms might get more time or leeway? eu, andmember of the the same way as the other members and then we are working out what it means to be transporting into the u.k. realm. it is a like for like in that sense. when you do this work, how do we transport it? we tend to call this the inoperable's. framed and a european union institutional setting and you have to move it into a national u.k. setting. the institutional structures are different. the governing principle doing it is, we are not amending it, altering it, changing it. i have always wanted to do something there, that is not

that includes having to deal with mifid ii among other things. out how to transport it into u.k. legislation. which is challenging in terms of timetables and load but we are having to do that obviously. the commitment of the u.k. is that on day one, we essentially have the same framework of legislation, rules, operating as we do, that is the point from which the u.k. goes forward. nejra: does this in any way mean you will have to adapt more as the sca -- as the fca, u.k. firms might get more time or leeway? >> as a member of the eu, and the same way as the other members and then we are working out what it means to be transporting into the u.k. realm. it is a like for like in that sense. when you do this work, how do we transport it? we tend to call this the inoperable's. the thing is framed and a european union institutional setting and you have to move it into a national u.k. setting. the institutional structures are different. the governing principle doing it is, we are not amending it, altering it, changing it. i have always wanted to do somet

let's get straight to mifid. take a listen.ifid ii is disrupting the world of investment research. in the past, this has been offered as a free service. from january 3, that research will have to be paid for separately. why? eu lawmakers wanted to curb conflicts of interest that could leave investors facing opaque costs. under the new rules investment firms will have to demonstrate they are getting the best execution for their clients when they trade. regulators hope this will lead to more transparency and competition. analysts are rushing to prove their worth, and investors are growing increasingly selective about what they will pay for. then there are the regulatory conflicts, along with who pays. some buy side firms are planning to pay for research out of their own profits, while others pass costs on to clients. there are various offers. packages being modeled by companies include basic pay-as-you-go to all-in offers. prices vary widely, in some cases prices range from close to nothing to over $450,000. as the january 3 dead

lisa: that is my questions, because how does this follow the mifid guidelines?t to the function of providing research from trading profits how do they provide it for free? , i don't know how that works. but they will set an interesting model here. tom: can we go longer? andrew, i think this is absolutely critical. do you end up talking to only five big firms, or is this good for the boutiques? andrew: if you go back to why mifid ii is happening, it was designed as an inducement to trade. -- because there is a perception that research is inducement to trade. i question whether the people that have that assumption have managed money before, because we don't trade unless we think we think we're going to make money for our clients because the performance pressure is such. i think you will just see higher quality research produced both internally and externally, and the weak hands will not be with us. tom: thank you so much, david riley, from london. from schroders, there is much to talk about coming up on mifid ii. lisa, thank you for joining us. we never see each o

let's get straight to mifid.he new regulations are set to change the landscape for investment research ahead of the legislation going into effect on january 1. -- january 3. take a listen. mifid ii is disrupting the world of investment research. in the past, investment research and corporate reports have typically been offered as a free service to carry out their trade. from january 3, that research will have to be paid for separately. why? eu lawmakers wanted to curb conflicts of interest that could leave investors facing opaque, steep costs. under the new rules, investment firms will have to demonstrate they are getting the best execution for their clients when they trade. regulators hope this will lead to more transparency and competition. analysts are rushing to prove their worth, and investors are growing increasingly selective about what they will pay for. then there are the regulatory conflicts in the europe and the u.s., along with who pays. some buy side firms are planning to pay for research out of thei

how important is fixed income research in with the new lower pricing of mifid ii?nounce it. with mifid ii, what is going to happen with fixed income research? david: it is a good question. we still don't really know the answer, as to what is going to happen ultimately with research provided into fixed income from brokers, as result of mifid ii. we, as well as many others, are going for a process of assessing what is available for research, applied discovery process with brokers, how we're going to absorb those costs, what it means in terms of our clients, but fundamentally what we have been doing and reflects our basis as a house is strengthening and building our in-house research capabilities. one thing about fixed income as well when you are dealing with macro is that macro is -- a lot of that information is public good, it is out there. we have good access to policymakers as well. so, we think we can absorb this impact. tom: andrew, you are in the trenches on this. schroders in london and frankly, i think with in new york, is in the crosshairs of this. how are y

for all of your mifid ii ,ions, head to mifi .ropean close next. 35 minutes until the end of the wednesday session. shares lower in london and higher elsewhere. stoxx 600 marginally higher. it was lower earlier for the first day in six after the longest winning streak since april. check out the currency boards. sterling gains on the dollar after strong inflation data. average wages though back in line with the earlier three months. real pay is still negative. boe tomorrow. this is bloomberg. ♪ . mark: 11:00 a.m. in new york and four quite dim in london. 30 minutes let any trade in europe. from london, i am mark barton. vonnie: from new york, i am vonnie quinn. this is the european close on bloomberg markets. ♪ big top stories we're covering from the bloomberg and around the world. sterling stronger and what will the bank of england decide as it releases its latest monetary policy decision tomorrow. how many wall street jobs at risk. we will hear from former citigroup chief executive who says 30% of banking jobs could be gone in fi

that was a special quick take on mifid ii.erg solutions. , among theid ii eight or 10 subsections you can go to. ,he european closes next following stocks less than 35 minutes until the end of today's session. aeck out stocks, it has been week of gains and a couple of days of little change, up for a week of gains, 120%. the currency board, sterling, the bank of england, ready to hike rates? sterling investors think so and posted to a 15 month high against the dollar. vonnie: for u.s. stocks, the averages are doing not too badly in the first 1.5 hours of trading. invidious, higher by up 5.5% and western digital up 3.1%. no news concerning western digital where nvidia, interest of apple may these sending the shares higher. s&p 500 at a 10th of a percent. .t records the nasdaq leading the way, up half a percent. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ whi

andrew: mifid two was designed as an inducement to trade.whether the people that have that assumption have managed money before, because we don't trade unless we think we think we're going to make money for our clients because the performance pressure is such. i think you will see higher quality research produced both internally and externally, and the week hands will not be with us. thank you so much, david riley, from london. lisa abramowicz, andrew chorlton, thank you for joining us. thank you for joining us. we never see each other. people think we do. we sort of like go down the hall. ♪ tom: from new york, that does it for us. we will see you next friday. jonathan ferro. "bloomberg real yield." ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how yo

create al mifid cottage industry for specialization?re starting to see some analysts right away from the larger banks. the larger banks are starting to realize that the clients under mifid will not pay them for the 80 or 90 analysts that do not add a lot of research are you and the three or four that are very strong left at the banks are starting to say, i am holding up this department and i can do it better on my own. that is how i was thinking in 2009. the problem is, commissions have been under pressure. the clients want to have few onorters -- fewer parties the sell side and i had to have enough depth so we could help clients in multiple sectors, in case one sector was out of favor. we are seeing and will see, a major change in research. the big change people are not expecting, especially larger banks, is that clients do not want to pay for the whole department. they want to pay for the four analysts they care about any five conferences they want to but have been billed for 25 coverages and 20 they do not care about and research in

more difficult under mifid ii?ll be more , more explicitly expensive for those who have previously paid for it by directing trades, and that is in truth most of the market. the written research that people receive as i would term it is commoditized. ultimately nobody gets much of toedge by even signing up the highest rated analyst on such and such as stocks. the edge comes from theirtanding the basis of decisions, and also getting them to help you with the basis of your decisions. of a personalore service, which clearly will be expensive. nejra: how much it is there a risk for asset managers of thing accused for taking inducements for cheap analysis? guy: i think that is a source of great anxiety for them. again, everyone uses research in a different way, and if you read lots of hardcopy research or pdf research, that has little marginal costs to produce, so it becomes difficult to ascertain what the value is, and that is where they have a real problem. if you use an hour of analyst time, that is expensive, and you

a price war is looming between banks as mifid ii comes into play in january.illing to cut prices to enable trades. we are not talking about research, but we will squeeze in a research question. there is going to be a bit of a price war when it comes to equities trading. >> a looks that way according to executives. it looks like the same exact thing is happening in research as well. execution is going to be the same thing here. once the starting gun kicks off on january 3, we will see a free-for-all on these ala carte services including research and execution. banks really want to get that market share. vonnie: there could be a race to the bottom in some ways. is there a level it cannot go below? >> we have heard one or two executives say that it could go to zero. whether or not regulators will be ok with that, we just do not know. we do know they are trying to squeeze out those mid tier r ivals. there will basically be to offering -- two offerings, a tiffany's and a walmart. everyone else in between is going to get squeezed. mark: is price going to be the dete

. ♪ nejra: the final countdown with less than 100 days to go in the mifid 11. , we speakethod exclusivelyhe head of the conduct authority about brexit and the

how does this also follow the mifid guidelines? how do they provide it for free?w how that works. they will set an interesting model. tom: can we go longer? i think this is absolutely critical. do you end up talking to only five big firms or do you go back to boutiques? two was designed as an investment to trade. we don't trade unless we think we think we're going to make money for our clients because the performance pressure is such. i think you will see higher quality research produced internally and externally, and the weekends will not be with us. -- weak hands will not be with us. tom: lisa abramowicz, andrew chorlton, thank you for joining us. david riley in london. thank you for joining us. we never see each other. people think we do. we sort of like go down the hall. ♪ york, that does it for us. we will see you next friday. jonathan ferro. "bloomberg real yield." ♪ >> it's 12:30 p.m. in new york, 5:30 p.m. in london. i am vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories on the bloomberg a

firms are for that iinding method to -- mifid deadline. this is bloomberg. ♪ manus: we've got around 12 minutes before the market opens. hittingpi numbers just -- french cpi numbers just hitting. you got a 1% headline you're in 1.1 cpi coming through at versus a 1% survey. a slight at the french pickup -- at the friendship pickup. the ecb target of 2%. let's get to bloomberg business flash with juliette saly. juliette: u.s. regulators are said to release aig from the government oversight ordered efforts central role in the 2008 financial crisis. the council has called unusual last-minute meeting for today to reevaluate the company's designation. while aig is not named in the statement, two people familiar said the council has been working toward releasing it on the label is an important financial institution. ken griffin seven dell is returning capital--tim griffin seven dell is returning capital as a 60 tighten up its -- according to people with knowledge, some of the investors will receive all of their money back from the city dell globa

falling research prices under mifid ii leave asset managers with a dilemma.what will it mean for u.s. banks? plus, we need to learn the lessons from the crisis. we hear on regulation over banking and the low rate environment. welcome to "bloomberg markets: rules & returns."

falling research prices under mifid ii leave asset managers with a dilemma.ly is the repeal of the volcker rule? and what will it mean for u.s. banks? plus, we need to learn the lessons from the crisis. that is the message from bun desbank. we would hear what he has to say

falling research prices under mifid ii leave asset managers with a dilemma.for washington, how likely is the repeal of the volcker rule? and what will it mean for u.s. banks? plus, we need to learn the lessons from the crisis. we hear on regulation over banking and the low rate environment. welcome to "bloomberg markets: rules & returns."

rocky 2018 to bank profits as mifid kicks in, what their investment had of banking says about the expectedx writer says the release of a tax plan framework the week of september 25. julie hyman is here halfway into the trading day that is busy but you would not necessarily know it. >> not much change, a pause after the record" of the three majo

falling research prices under mifid ii leave asset managers with a dilemma.f investment research? back to work for washington. how likely is the repeal of the volcker rule? and what will it mean for u.s. banks? plus, we need to learn the lessons from the crisis. we would hear what he has to say on regulation, over banking, and the low rate envnt

falling research prices under mifid ii leave asset managers with a dilemma.ass on the costs of investment research? back to work for washington. how likely is the repeal of the volcker rule? and what will it mean for u.s. banks? plus, we need to learn the lessons from the crisis. that is the message from bundesbank. we would hear what he has to say on regulation, over banking, and the low rate environment. welcome to "bloomberg markets: rules & returns." i am nejra.

most watch video, mifid ii explained. getting off a close.he eu rules to upend trading, this is a good watch in terms of your understanding of what mifid ii will need, particularly for the wealth management business. matt, something worth paying attention to. you have a program coming up on the subject, as well. matt: i will go out on a limb and say the producer of this program also produced that most watched video. kudos to her. up next, are unicorns too good to be true? alibaba founder jack ma. more from that exclusive interview throughout the day and the program tonight. unprecedented access to alibaba. you don't want to miss that program, either. this is bloomberg. ♪ guy: getting a bit of the moves on sterling. this is the cable rate breaking up to july 16 bubble. the london book, basically the book for asia, now london liquidity starting to kick in. there is another move to the upside. it will get quite interesting around here. the market setup doesn't have a lot about it. 151.30, really fast. in terms of the setup, it will get quite int

mifid ii does not go far enough, says markus ferber.

mifid your friend? are you saying, i am going to love this or not? a politically correct answer because we have not made an announcement yet. pointing inu are the right direction given that we have a strong in-house research capacity and that should come as a strength to us. tom: diplomatically said. i wouldn't sure you we would love to have you on set with your fidelity leadership when you make that announcement. -- i am sure we would love to have you on set. it is fascinating to see what these old houses will do. fidelity, capital trust, and others as well. sonja, thank you for joining us. coming up, an important interview in the next hour. talking about assumption. they are focused on making it. the single-digit landscape. from london and new york, with francine and italy, this is bloomberg. ♪ ♪ tom: this morning, brent curve rel, the yen bar stronger, the swiss franc also. republicans go down in flames. cassidy, called deeply flawed. the white house, email on private account. nfl and taking shots. john mccain, the president, considers the collaps

rocky 2018 to bank profits as mifid kicks in, what their investment had of banking says about the expected tumult. the chief house tax writer says the release of a tax plan framework the week of september 25. julie hyman is here halfway into the trading day that is busy but you would not necessarily know it. >> not much change, a pause after the record" of the three major yesterday. the russell 2000 continuing its outperformance, it had been lagging, it had a big start postelection and came down. or the past few sessions, it has been doing better than the majors in terms of the percentage gains. the dow slightly in the green, very slightly. the s&p and nasdaq trading a little bit lower. we have been watching oil prices . inventories data this morning, that showed that a larger than estimated built in crude oil inventory at a big drawdown and gasoline and distal inventory in the wake of hurricane irma and the recovery from hurricane harvey. that was a bit of a surprise. oil went up. still hanging onto a gain of 1.7% and holding about $49 per barrel. that means strength in the oil industry.

our new program on bloomberg about the ever-changing regulatory landscape from the volcker rule to mifidplications and opportunities of regulatory change by drawing on our own in-house expertise and industry figures on the frontline. watch it on the bloomberg this weekend. next, 35ean close is minutes away from the end of the friday session, a little bit of a reaction to the jobs report but pretty much the main index, stoxx europe 600 is higher throughout the day, 7/10 of 1%. i will leave you with the bond the board. the jobs report, maybe the ecb will push back news on ending the qe program until the end of december. the close is next. this is bloomberg. ♪ mark: 11:00 a.m. in new york and 11:00 p.m. in hong kong. from london, i am mark barton. vonnie: i am vonnie quinn. this is the european close on bloomberg markets. ♪ mark: big top stories we are covering from the bloomberg and around the world with the euros fighting high and loses gains after a bloomberg scoop, the ecb may hold off on finalizing its qe plans until december, what it means for mario draghi. investors confident the new

francine: one of the things we talked about, how do you deal with mifid ii?s being challenged by figuring out exactly what needs to be reported by january 3? changes,gulatory anyone in the financial industry is challenged by regulatory changes and mifid is a big component of that. our discussions with the asset management industry on how, for example, research will be paid for and priced? in execution changes equities and classes are opening a lot of discussions. thatare going on a path makes me optimistic that we will be ready come january. tom: thank you so much. greatly appreciate your attendance this morning. a great perspective on germany. thiel ofnue with mr. blackrock. you can migrate over to coast-to-coast, bloomberg daybreak, -- this is bloomberg. ♪ ♪ on a monday, bloomberg surveillance worldwide. tom keene in new york. we are focused on germany in the stunning elections. we will do much more on the upper over the weekend in the united states of america on football and politics. the speech, it was something to see prime minister may give an important

all the intention has been on the impact of mifid on research.aying for research involved hidden costs. when you separate those two, what happens? the other part of that is execution of trades. to believe the execution of trade costs is going to plummet as the bigger players can aggressively cut down on price, forcing others in the game who don't make a profitable business in equities to get killed. do it in the short-term and squeeze out the smaller players and incerrease margins. i was thinking of operating margins in equity trading, the lowest among the three main investment banking divisions. equities, morgan stanley, jpmorgan, and goldman sachs actually make money. they are only the top three players. there are the only ones who make money. this could change the equation for them. reorientmifid needs to themselves. think, why need to am i in this business? can we outsource parts of this business or excerpt -- exit parts of them? julia: which business are we talking about? a lot of this matching of trading goes on electronic platforms anyway.

all the while, the clock is ticking to mifid ii's january deadline.sues, catch "rules and returns." the first episode airs tonight and features a key writer of the regulation. some headlines coming out of germany. we have the pmi manufacturing data coming out at the 9.3. we were looking at 59.4. just off that, but still relatively high. we have some headlines coming in from martin schulz and his interview with the built site to tung, and the competitor to angela merkel technology will be around for a while and it makes sense to invest in this combustion technology. keep in mind, how many people are paid to make diesel engines? people employed in carmaking directly and one in four indirectly. head-to-head this sunday, we will have plenty more on that monday morning. up next, it is "surveillance." for matt i come a we are off to join the bait -- daybreak team. this is bloomberg. ♪ we get the latest u.s. jobs data. we set for the -- will august overshoot or undershoot and return for a seventh straight year? the message for the u.k. government. energy. wh

to with the -- mifid 2. >> i think everybody has run scenarios, i don't think anybody will tell you i1 i know how i'm going to approach it and my providers know it and we are aligned. definitely there will be adjustments throughout the beginning of next year. taylor: european regulations are designed that investors are not swayed by free research. unit sold to bain capital, the preferred bidder almost three months ago, but the process was delayed by lawsuits and government opposition. was $1.9 of the deal billion. augmented reality futures on the iphone may help sell its most expensive iphone yet. posested reality super to -- superimposes digital information into a view of the real world. that is your business flash. tom: let me show you the augmented reality here. it is going to fail, it is terrible. not the chart. apple, 2000, here is where i sold all of my shares. loaded the vote right here, it is going to fail here. they're going to die. terrible, jonathan ferro had the greatest quote on twitter. cities eight hate more, the fan boys or the doom and gloom crowd on apple? this is ma

when the new mifid rules comes into effect.hat is the message from andrew bailey who says firms need to be preparing now. all, there is a lot of work going on during the course of this year we make sure that we do everything we can to be ready. that's involved -- being out and about as it were, making sure firms understand what is needed. everyone knows what they need to do. plotting out the timelines. we're not finding in many cases a deliberate refusal to -- so , i'm recently comfortable with where we've got to. when i said -- liability, what that really means is the rules come into effect on the 3 of ja nuary. our supervision will take over the markets in the firm's. but obviously, we work with them to make sure the thing is embedded. i expect to be taking that forward as time evolves. and no doubt we will find things that are better than others and we have to address the things that go less well. firms will tell us about that. nejra: you have asked about paperwork to be submitted by july the 3. many firms have met this dead

because of regulation, because they said they want do basel ii in or even mifid certain cases, is thatr? jim: i think it is a bit naive. i spent much of my career working for american-based firms. they are generally so aggressive and probably a bit more focused, and they seize the opportunities where they are. what i would say in response to goes to many of the challenges of the e.u.. they don't really allow european banks to play as european banks. why don't we have a huge cross european bank? then you would be having a like for like bank. bank of america, goldman sachs. francine: thank you, jim o'neill. this is "bloomberg surveillance ." ♪ who knew that phones would start doing everything? entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, v