um, okay risk. i'm sorry other risk is related. fraud and the scam so on obviously you handle it through rule making enforcement reporting and then the third category which people usually over unlike not paying particular attention. that is safe keeping functions like the loss password. i think you're probably generally aware like 20% of certain digital asset was lost due to the lost key. so safe keeping. yeah custodian service may be that thank you man. thank you very much. i'm out of time and i'm chairman. i'm gonna go back. the general ladies time has expired. the gentleman from georgia mr. laro milk is now recognized for five minutes. thank you, mr. chairman, and thanks to the panel for being here. it's a very important hearing we're having here today and i think is something we need to be looking at but one of the aspects of being here is a lot of times people draw a line in the sand very early on and they take in early position on something especially when it's dealing with technology because it's something either don't under

but that is the risk.een: in terms of the pressure that they are going to see, they are starting to get pressures from the public. a lot of regular people are talking about the higher prices of used cars and food and all kinds of things. it is not in the u.s. yet, but in germany today, after their consumer price index hit a 13 year high, a leading service sector union immediately called for strong wage increases. is the fed going to see more of that? charles: they very well might but they are going to push back on the others if inflation does not receive very quickly from others because the fed has made a promise that it would not raise rates until they met their inclusive full employment objectives, whatever that means. and if they start to talk about raising rates and tightening policy and they have not reached somebody's definition of maximum inclusive employment, they won't get pushed back politically against tightening policy. and that should be a real political problem for that i think but they set t

i think it is a good metaphor. >> there is risk in the system. with risk comes great reward.you want to ban risk you also ban reward and you ban innovation. i thank you for all that w. that, i yield back. >> gentleman yields back. the gentleman from california, mr. sherman, who is also the chair of the subcommittee on investor protection, entrepreneurship and capital markets is recognized for five minutes for questions. >> especially after the last gentleman's comments i have a lot to say. i will use my five minutes say them. of course as i pointed out in my opening statement, thank you, mr. chair, for allowing me to make an opening statement. those who live in the crypto world have their relevance, their fortuned caught up in making this successful. we are told that while cryptocurrencies are fun and useful, and there might be somebody in my district who enjoys trading them. one thing that would be useful would be a $10,000 bill. it would occasionally be used to buy an automobile. but it would be valuable for drug dealers. we would make their lives so much easier if they had

i was told earlier this year that— risk. i was told earlier this year that there _ risk. grandparent with you're in and telling children to get the vaccine tickets— telling children to get the vaccine tickets with my life at risk if you come _ tickets with my life at risk if you come and — tickets with my life at risk if you come and see me. i think there will be a generational pressure on you people _ be a generational pressure on you people and michael keane and was 34, not that— people and michael keane and was 34, not that young, but younger than that who — not that young, but younger than that who are the holdouts it seems awesome _ that who are the holdouts it seems awesome of this. so effectively more pressure _ awesome of this. so effectively more pressure and more strong messaging from the _ pressure and more strong messaging from the government. so effective last weel— from the government. so effective last week on hands, face, space and similar— last week on hands, face, space and similar messaging.— similar messaging. let's pick up on the financial _ similar m

translation: no, not anymore, it risks the lives of l anymore, it risks the lives of children.o keep on livin~.~ . ., living. wilder garcia's father is believed _ living. wilder garcia's father is believed to _ living. wilder garcia's father is believed to be _ living. wilder garcia's father is believed to be in - living. wilder garcia's father is believed to be in an - is believed to be in an immigration centre in mexico and will soon be sent back to honduras. no happy ending in america at a family reunited, safe and sound. tim allman, bbc news. thanks for being with us, goodbye for now. hello again. sunday was the hottest day of the year so far in both england and wales. cardiff saw a maximum temperature of 30.2 degrees celsius — the new highest temperature of the year for wales. but it was a bit hotter at london's heathrow airport, at 31.6, and that's the highest temperature we've seen in both england and the uk as a whole in 2021 so far. now, if you're heading outside over the next few hours, chances are you'll come across clear skies. the exception — northern scotland, whe

the world economic forum has warned the member countries of the risk, and the risk has elevated form, so they can offer ac taking them to a currency without proper regulation like facebook does not address all the risk. i wanted to start with you. how urgent is this need for regulating stable coins and protecting the us dollar? >> thank you for the question . i think stable coins have a red urgent need for regulators to look into them. we've had state attorney generals looking at the problem . letitia james operates the tether to stable going and they reached a settlement that you can no longer buy tether in the state of new york but there are questions about what is heather actually backed by? they had to disclose a number of their reserves including commercial paper but they th have actual, very little actual cash. they had digital assets and i think there was recent reporting in the financial times that they asked some of the large banks which tend to be one of the counterparties for commercial paper and they said they hadn't done any business with it so who are they doing business

we need a different measure that accepts the risk _ risk.her risks as well. give us _ but mitigates other risks as well. give us some _ but mitigates other risks as well. give us some ideas— but mitigates other risks as well. give us some ideas of— but mitigates other risks as well. give us some ideas of what - but mitigates other risks as well. give us some ideas of what you i but mitigates other risks as well. - give us some ideas of what you would like to put into practice in your school. we are not going to have the system or bubble, but mitigating systems which you like there to help deal with covid—19 in the future? we've got eight or nine weeks until september tare we've got eight or nine weeks until se tembe ., ., ., september we need to have a significant _ september we need to have a significant effort _ september we need to have a significant effort in _ september we need to have a | significant effort in supporting schools — significant effort in supporting schools of— significant effort in supporting schools of testing _ signifi

how much risk is acceptable to you? what's your risk tolerance? what about the risk of passing the virus on to others? what's the cost benefit analysis? covid requires constant risk assessments. but those nuances don't always come through in the media coverage. in the argument with public health officials that we've all come to know over the last six months haven't talked about risk assessment, either. quality news coverage and careful messaging should help you assess risk and make thoughtful decisions. we all have to think more like risk calculators. for example, the current covid surge in the u.s. is very real but very unevenly distributed. the risk is very low in some places and quite high in other places. for fully vaccinated americans, the risk of serious illness is supremely low. but for the unvaccinated, it is significant. significant risk. people keep saying this is another instance of two americas. and it is. it's almost like we need two kinds of newscasts or two versions of the weather report. the forecast is pretty sunny for the vaccina

they are at quite a big risk of getting severely ill, quite a big risk of getting severely iii, and _ast the evidence... i sought— ill, and at least the evidence... i sought from _ ill, and at least the evidence... i sought from the states today, people who are _ sought from the states today, people who are not vaccinated are ending up in hospital— who are not vaccinated are ending up in hospital in— who are not vaccinated are ending up in hospital in higher numbers than they were — in hospital in higher numbers than they were back in the first outbreak back in_ they were back in the first outbreak back in march, are the first few waves — back in march, are the first few waves so— back in march, are the first few waves so i_ back in march, are the first few waves. so i think there is still a risk to— waves. so i think there is still a risk to people, even if you don't think— risk to people, even if you don't think you — risk to people, even if you don't think you are invincible, which a lot of— think you are invincible, which a lot of young people do, there is still quite — lot of you

, caught on fire and it is extremely high risk, we lose 80% of our water supply. we have had continual litigation, opposition, replanting, another litigation, replanting, and at the end of the day, the project has not changed much. presumably we will get into the forest and do restoration to reduce the risk of catastrophic fire. we are not eliminating the risk of fire, we are just trying to lower the intensity of the fire. what just came out in the forest service was appealed, so we will see how long it takes to get into the forest and do something. we will hope it does not burn before then, because that would put a lot of us here at great risk of not only the smoke but also not having freshwater. >> for holly fretwell, we hear from bart in maryland. go ahead. >> thank you for taking my call. you have already probably answered this since i have been waiting, but how -- what steps do they take to mitigate the damage to wildlife in these control burn areas? that's always fascinating to me how they just determine we will lose this percentage and there is nothing we c

the world economic forum has warned the member countries of the risk, and the risk has elevated form, so they can offer access, and still protect the sovereignty of the currencies. last congress i introduced a bill to recognize the stable coins as securities and pegging them to a currency without proper regulation like facebook has done with dm is a step worward, but it does not address the risks. ms. goldstein, i want to start with you, how urgent is the need of stabilizing the coins and protecting the u.s. dollar. >> congresswoman, thank you for the question. i think that stable coins is important for the regulators looking to them. latesha james is looking to them, and bit operates tether, and they have recently reached a settlement so you can't buy tether and that led to who are they backed by? they had to disclose cash protects, and other digital assets. there was reporting in the financial times who asked for one of the commercial parties of the commercial paper, and they said they had not done any business with business connect, and so who are they doing business with. and this

inflation -- is inflation a risk, is growth a risk?e hesitating between the two and we cannot blame them because markets are doing the same. mark: given your expectations around the balance of risks, what is the risk reward play? is it the real yield? where is the best sector going into this? florence: i think it may be a broad way to look at rates and that is the way that we do it. first, take a directional view and from there, on rates, we think the risk reward of being long bonds is very negative. we tend to have the view where we think that the downward movement in rates, the flattening movement in curves, has gone way too far. if you look at curves, if you look at the level of even real rates, these would tend to indicate that the u.s. economy is in a recession or close to moving into one and that is something that we really don't see. we tend to think the u.s. economy will enter midcycle. we are close to something which could be take growth and we will have gdp out which will show a very strong acceleration. what we going to see

when you are compensated to take risks, you should feel free to step into risks. when you are not, risks leverage back. we think now is an opportunistic time to be dialing back and waiting for a better entry points in the fixed income markets that have not presented themselves as of yet. >> always great to have you with us, co-head of investment joining us. beijing's education [indiscernible] helping every sector. we take a look at what to expect in the market open after monday's row. the u.s. and china leave room to talk after a contentious meeting. the latest ahead. this is bloomberg. ♪ >> you are watching "daybreak australia." president joe biden says no u.s. combat will remain in iraq by the year's end. the white house official says washington is expected to maintain a military ground presence. iran faces pressure from hard-line action that want the remaining 2500 u.s. troops to leave the country. u.s. state department raised an advisory to the highest level, urging americans to avoid traveling there. the cdc boosted their warning for spain to the highest leve

it won't be zero risk but there will be a degree of risk there.ay it's the biggest festival in europe since the reopening. the outcome of this and other events will be watched closely. corinne wheatley, bbc news. joggers have been taking part in the first park runs in england since coronavirus restrictions were lifted. the events were suspended during the pandemic. john mcmanus went to watch runners in bushy park in southwest london. park run has returned and no better place to see that happen than here in bushy park in middlesex where it all began way back in 2004 with just 13 runners and a couple of volunteers. and look at it now. across the world, thousands of people take part in park run in normal times across the uk and as far afield as australia, the united states and japan, but it has been suspended in the uk since march 2020 because of the pandemic. organisers tell me they are confident that they can keep people safe while they are taking part in park run. i think you can see from what is going on around me that there is real enthusiasm fo

that's more of a risk. most people i talk to -- i can't think of many -- most people think the 10-year yield is backing up a few exceptions but most do. and they're positioned in sectors and stocks that benefit if that continues to happen. i think a risk could be you're sort of off sides on that where, you know, maybe you're making a value bet on both sides our off side that's the biggest risk. inflation doesn't happen the way. >> let's go to thoughts on fang. and microsoft in that category you have interesting thoughts here about this group of stocks and what -- what role they play in a portfolio explain your sort of nuanced position on them. >> yeah, look, it's 22% of the s&p 500. if investors are benchmarking themselves to the s&p, you know, i think you have to own a chunk of them. it's a risk management decision, not really an alpha decision everyone i talk to most people are bottom up stock pickers. but i don't think that's sensible logic on facebook, amazon, apple, et cetera why? because i can explain

there would be zero risk but a degree of risk. ., . , would be zero risk but a degree of risk. ., .,d on the _ risk. for many people here in the crowd and on the stage, - risk. for many people here in the crowd and on the stage, it - risk. for many people here in the crowd and on the stage, it is - risk. for many people here in the crowd and on the stage, it is a i crowd and on the stage, it is a joyful return and it is certainly a milestone. organisers say it is the biggest festival in europe since the reopening. the outcome of this and other events will be watched closely. they certainly well. and, before we go, a record number of people acquired pets during lockdown and might be wondering what to do with them now restrictions in many places are being lifted. one london bar called the after bark is serving up cocktails for dogs. the owner says they're trying to help people who became dog owners during the pandemic get back into the swing of after—work pub life. there is of course no alcohol in the drinks, at least not the ones the dogs are enjoying. looks like fun, doesn't it? a re

investor, there so many opportunities, value, growth, risk curve or non-risk curve. >> james, do youlated risk and the risk was not rewarded there's always going to be a push and pull struggle in power between capitalists and patriots at some point they have to partner together they will go back into business. they will give the chinese government the access to the data they want i do think a company like this that has critically necessary data on the citizens that the government wants and maybe not has another channel to get it as fluidly as didi, i think they figure it out. i think this risk goes away in the macro sense that the government will allow them to operate. >> sounds like down 5% interest you, potentially >> i think perhaps a little bit more down. i don't think isomeone takes a company public with that much upside without understanding the potential for this risk. the ipo market has opinibeen we. i think this company comes back maybe six months out after this is behind. >> all right up next, lordstown motors hit veigionother mayjor instatn. details when we come back. uno,

but we should not have to take a high risk approach, we should be pushing down risks and indeed, we mitigate across society all the time. we just do not accept other diseases, we take interventions to try and prevent other diseases. so, why is he collapsing all mitigations completely when he knows that the covid—19 rates will continue to rise? now, it's important to remember that this announcement affects only england. northern ireland is due to review its rules in the next few days, with the welsh government looking to announce its plans next week. the snp—run scottish government hopes to end most restrictions on the 9th of august, and its record prompted some fierce exchanges at westminster. the uk governments failure to lock down last september allowed the alpha variant to emerge in the southeast of england and spread across the uk and indeed the rest of the world. so, if the health secretary is going tojust let it rip, how does he plan to avoid generating yet another uk variant with even greater vaccine resistance? with over 150,000 people dead, why has he returned to the false narrative

are you being paid for that risk, are you getting the proper risk premium, i think is the question investorsre asking themselves. some are starting to ask themselves if it is un-investa ble. here in the u.s., the sec has halted ipos of chinese companies until they boost disclosures of those risks posed to shareholders. ben bain has been following the story and joins us now. what kind of risks need to be disclosed, what has to be said to investors before they can get back into, before chinese regulators can allow ipos to go ahead? ben: a lot of the points that you just raised, actually. one of the things we saw today was sec chair gary gensler coming out with a statement saying those recent actions by the chinese government, which includes enhanced security views, our relevant information to u.s. investors. the sec is essentially a disclosure agency. while they are not putting an edict saying no chinese companies can list in the united states, they are saying if they are things that u.s. investors need to know about risks in china that don't exist elsewhere, or how these companies are structu

there should be high risk specialties there are high risk diseases and specialties but we say that'sdiac surgeons are in a high-risk a specialty. they are not at risk but they bear that liability risk and the premium tax that is far disproportionate to the likelihood. >> i would mention california and texas what type of reforms in your opinion you might have written about in the book? >> one that is implicit is an action all practitioner data bank enacted by congress in the late eighties. it was successful because it gave a window into a lot of information that was simply not available of paid claims you cannot figure out which it is but follow the same physician over time and across state borders and look at claims by states and there is significant variation. you can do a little bit with specialties. there is an quite as much data publicly as we would like but we do know a lot more about the nationwide medical malpractice system because of the databank so making data available it's not always what they were thinking about at the outset. >> on the data issue, how often do providers

whether or not so many risks like that. so what's, what's happening there is a gradual crisis of integrating to ask risk management with economic planning at the national level. and i think that's already happening. emily, i saw you reacting to some what tim was saying and it looked to me like you, you wanted to jump in, so go ahead. thank here. yeah, i think it's also referring back to what tim is saying about many actions and activities have been developing already. but also that me, simon said earlier about we don't necessarily stream 6 dream events leading to action or social my boy's ation. but i think this is an area that we need to understand much more about because we do see the emergence of social movement. we do see the youth groups. we do see the emergence of grass have for example, and engagements and people be interested in issues around facility and issues of climate change increasingly. so i'm wondering that perhaps, you know, these events are having an effect on a momentum of social engagement. maybe it's no

it comes back to risk management and how to integrate cyber security into your overall risk management> have you begun the process yet of giving down grades based on cyber security risk has any company been downgraded because that have? >> i can speak to a cyber attack in where we've seen down grades following attacks and i can speak to high level where we are looking in our analysis in the preparing against an attack. just because you have a cyber attack it doesn't necessarily mean it will be an instant down grade. we've seen the municipal side that i cover, atlanta and baltimore have come through without an impact on their credit princeton community hospital was a small issuer that did lead to credit action. similar situation on the corporate side the colonial attack that didn't lead to a downgrade but downgrades with the solar winds attack following those events there. >> so how do you differentiate all these guys have had attacks. they've all been kind of crippling. how do you say this is a credit risk that one is not. >> that's a great question it comes down to a framework we look

rate risk and the credit risk, so we always need to calibrate between the two.ave started actually, given the valuations in credit, we are a little bit tight and we saw very little room for further tightening, so we started to calibrate away from credit risk and more into interest-rate risk. that is what we are -- what we have done in the last few weeks. we looked at the technicals and the technicals indicated that interest rates could move lower, because clearly that move where interest rates going lowered in yield and higher in price was starting a few weeks ago. when you look at the technical charts that indicated that we could go further, we went through very significant breaks lower, so that indicates we are staying lower and may even go a bit lower, so we started to take advantage of that. but at the same time, also reduce some of the credit risk. we see that to play out at the moment, with credit spreads widening and interest rates continue to be quite strong. dani: yeah, i mean, what is it, tightest since 2007 in high yields in the u.s.? these are kind o

they have problems with risk management. also want to get a sense of what the company can do to stem the tide of management losses. what is the real story around turnover? i started by asking the ceo about the numbers and what had underperformed estimates. >> we had very resilient second-quarter results. we had income of 813 million swiss franc. we are back in profit after the 5 billion swiss franc loss in archegos, which was an achievement in itself. we had, on an underlying basis, 1.3 billion of pretax income. we chose the resilience of our business. very satisfying. record levels in wealth management as well as asset management. most of burnley, rct one ratio at 30.7% is one of the strongest we have had in years. anna: that is the sum up of what you have reported, but something seems to have been less than anticipated. i see your reporting of investment banking pretax loss. do you think the archegos scandal is having an impact on the wider business? >> as you have seen in the numbers, we had another 600 million dollars, r

the question is, how does the risk of covid compare to other risks that kids face? and the truth is that covid much more dangerous than many, many other risks that children face, and we should be careful. i'm not sure why we would subject kids to a really infectious disease where we don't know the long-term consequences. that strikes me as iesponsible. >> let me ask you about tokyo. the olympics are currently under way, as you know, and tokyo itself has recorded a record number of new daily cases just this week. despite that spectators have been banned from the games and many other precautions have been taken, the local media is now reporting that hospitals might have to start adding beds and postponing non-emergency medical procedures. dr. jha, is this the outcome that you expected? >> yeah, this is a bit of the outcome that i think many of us expected. i feel like the tokyo olympics organizers disome things very well to try to keep the outbreak under control among olympians and others participating. but they could have done so much more. personally, i think they s

.— entire squad at risk.quad at risk. drastic measures for _ entire squad at risk. drastic measures for the _ entire squad at risk. drastic measures for the squad - entire squad at risk. drastic measures for the squad to l entire squad at risk. drastic i measures for the squad to be completely changed but the ecb and other nations aren't always going to have the luxury of completely overhauling the squad. how far do you think this can go before see reason is in coming jeopardy. it’s a reason is in coming 'eopardy. it's a serious business reason is in coming jeopardy. it's a serious business and _ reason is in coming jeopardy. it's a serious business and yes _ reason is in coming jeopardy. it�*s —. serious business and yes the fact that england are the home team have been able to bring in a whole new squad and that has got to be the first issue to address is to avoid a situation where if one or two positive cases come in and it wipes out the entire squad but it's imperative that the pakistan series but then af

there about 6:00, 7:00 pm in our it's not a huge risk.hink the greatest risk will know focused here. event of tahoe and nevada. that's where we have the best chance of finding thunderstorms. as that energy moves through it were there, is a risk of lightning. or lightning strike. it's a risk. not detecting any lightning strikes locally. into monday, very confused. there is that risk of lightning around the mountains of lake tahoe. moderate to high, in fact. it is so dry right now because we're in the drought. red flag warning, 5:00 pm. it's not for wind. red flag warnings typically become a gusty wind. tomorrow, all for dry lightning. likely in the warmest temperatures and the driest humidity. we'll deep our eyes on it. tomorrow evening, there that chance of that energy. 60s and 70s around the bay shoreline. 96 in antioch, 97 in clover dale. here's the seven-day forecast. the next seven day, that lightning threat tomorrow, and again, i think the biggest risk in california is really across the mountains. we'll have that threat continue for

change and the offices high-risk list. to save lives and lower the federal government's fiscal exposure to climate change, the gao stated and i quote the federal government needs a cohesive strategic approach with strong leadership and the authority to manage risk across the range of related activities unquote. reports released by both the u.s. department of homeland security and u.s. department of defense catalyzed climate change as an urgent and growing threat based upon its ability to cripple goal infrastructure, deplete military resources and fuel terrorism. despite the need to address the risk posed by climate change and despite the progress made by the obama administration president trump disregarded these challenges increasing the likelihood that americans would experience these risks and took steps to eliminate federal research and respond to climate change programs. in contrast through multiple executive orders on the climate crisis and by providing $1 billion to communities through the predisaster building resili

with covid atient but there are risks. with covid patient number _ but there are risks.umber set to - but there are risks. with covid patient number set to rise - but there are risks. with covid - patient number set to rise further, there are fears that hospitals will come under renewed pressure and again have to postpone nonurgent operations. fiur again have to postpone nonurgent oerations. _, . again have to postpone nonurgent operations-— again have to postpone nonurgent oerations. _, . ., operations. our concern about even small increases _ operations. our concern about even small increases in _ operations. our concern about even small increases in covid _ operations. our concern about even small increases in covid activity - operations. our concern about even small increases in covid activity is l small increases in covid activity is that it _ small increases in covid activity is that it will— small increases in covid activity is that it will impact the efforts of trusts _ that it will impact the efforts of trusts to — that it will impact the efforts of trusts to tac

who are low risk will not be offered the vaccine for now.er countries are taking different approaches, particularly 12-15 euros. france started team vaccinations on june 15. austria aims to have 340 thousand children vaccinated by the end of august. israel began vaccinating 12-15 euros in june. the u.s. began vaccinating teens on may 13 and has given at least one dose to more than 30% of children within that age group. so progress is being made at different speeds in different countries. and epidemiologist wrote in the british medical journal that vexing children was hard to justify right now for most children in most countries. i asked her why. i think the first key thing is that you really need to be thinking about, when you look at a vaccination scheme, what is the cost benefit for direct protection to the vaccinated individual. in this case, that is asking for a child who is maybe 13 years old, what is the cost of getting a vaccine, part of the health risks associated with it, and what are the benefs? because it tends to cause fairly mil

2.5% of the stock's value at risk on this particular trade.ike the short strike that he's using, the 220 short strike because that reflects the support level for amgen that's likely going to get a target to the down side if they do miss on earnings. >> all right let's stick with health care here we have an update on a moderna trade we laid out earlier this month, you can check it out on our twitter feed @optionsaction. >>> we're taking a look ahead to a big earnings report in the payment space, square is on deck and tony is expecting a tough take tony, take it away >>.yeah, so i want to take a look at square here which is currently trading at 123 times next year's earnings i simply think the expectations here are a little too high going in so let's take a look at some charts if you look at the chart over the last six months or so pretty much since november the stock has been trading between 200 and 270. recently just bounced off the top end of that range and i simply think that it's heading back towards the bottom of the range towards that $20

>> yep risk there's a ton of risk. there's actually 75 pages of risk in the s-1.ey list everything temporary outage, customer outage risk. especially pushing people towards these products a couple of things that red flagged customers. people who say i want low risk tolerance would still be approved for options there is misleading and as you push people towards the risk, are wear they are a more lucrative business clearly the sec will be in on this a few months ago, we thought this company might go under. they are back with a $40 billion ipo. maybe they can turn it around in that regard. it is important to know over 80% of the revenue come from payment and over a third of that is coming from scitadel in particular this is a company that does not have diversified growth. >> so payment for order, they take their customer orders and then they improve the price. pass that back and keep that as revenue. >> sit adele, 34% lies with that one market maker robin hood lists this clearly if they change their terms or stop dealing with them. that does represent a big risk agai

cramer: with regard to climate risks, whether it is political or true risk, i just want to remind myolleagues that when we assess climate risk in terms of the u.s. economy or u.s. investment, do not forget that every time we do not invest in energy or climate manufacturing issues in the united states, another country does not do it as well as us. this is a global issue. supply chain is a global issue. let's think about risk in a global context. sen. ossoff: thank you, chairman brown, ranking member toomey. thank you for your service, chairman powell. the covid 19 pandemic over the last 18 months has been the most significant shock to our economy and the financial system but stepping back, what do uss to be the most significant systemic threats to financial stability over the medium-term, limited to the u.s. or globally? chm. powell: the thing that worries me the most is cyber risk. you know, it is a constant concern and we spent lots of time and resources on it. so does the private sector but that is the one where we have a playbook for bad lending and bad risk management. we have a

risks, subject to financial risks, as we have been talking about. contract disputes. labor that needs to be upscaled or replaced, in some instances, which is what china tends to do. there is a shortage of bankable projects at this point, frankly. so this is not a deployable resource and a way you might exploit widgets, for example. in addition, you look at all the initiatives out there, these are consortium projects. of course we have trading partners, trade arrangements, free-trade agreements and so on, but the trade that happens is within each country's control. it is not the case with infrastructure projects where it would be attractive to g7 or g20 countries. no, it is not a substitute for a trade strategy at all. it can, i think, supplement and activist trade agenda. and so, just think for a minute about icp, which runs through every single one of these infrastructure project announcements, like build back better, u.s.-eu trade and tech counsel, all of the various initiatives, japan, australia, india, all the same countries largely, right? if y

we can head out easily the duration risk and monetize spread risk.t is how you should think about it. if you are worried about duration risk and the spread risk portfolio, you can have more of a floating rate type of fund or bond, loan. i do take some exception to the fact that putting those two things together because you are supposed to separate them out. at the same time, we do see value in clo's, loans is an error that has outperformed our expectations. i think the best place to be in credit right now is this crossover divide, bb, where we will see unprecedented rising activity, and the bbb part of the market that is continuing to see balance sheet repair. it is a relative value opportunity that we like a lot. but the large beta game is over, it's all about relative value. jonathan: when you talk about the golden era credit, is that the statement of credit quality that captures that story for you, bbb, bb? greg: it does. historically, that has been the best place to be over time. i think that is an area -- you went on both sides of the aisle, so

absolutely, i have different level of risk. absolutely, i have sympathy _ different level of risk.ely, i have sympathy with that. - different level of risk. absolutely, i have sympathy with that. if - different level of risk. absolutely, i have sympathy with that. if i - different level of risk. absolutely, | i have sympathy with that. if i was going into a shop, because i am not going into a shop, because i am not going to be in there too long and any chances of meeting other people are brief and fleeting, so i don't feel the need to wear a mask in a situation and it is very much anyone in a public facing role as things open up will have to continue to wear a mask. it is true that a mask does two things. it helps protect you if you are wearing it but of course it also stops respiratory droplets coming out from people who are wearing them on the other side. so i can understand some of the reservations those people facing workers have. in reservations those people facing workers have.— reservations those people facing workers have. ., ., workers have. in the end though, and i hear w

the underlying risk in investment banking has been very strong.was the credit suisse ceo after earnings. it's get more on credit suisse. octavio marenzi, ceo of opimas joins us now. there is an independent report from credit suisse labeling lackadaisical risk and lackadaisical staff for what happened with archegos. can credit suisse get back from something like this? octavio: it is very hard because you have to be asking yourself the question what is out there? this does not happen in a vacuum . i doubt this is a one-off thing. i do not think much about other things they have unearthed. they talked about risk management. that is pretty obvious that was what happened. a particular matter of risk they took in this event. the real is how much more is out there? there must be more. i think vizio has to take possibility. -- i think the ceo has to take possibility. he promoted people in this position. he bears the brunt of the responsibility as well. dani: there has been a lot of action taken. they let go nine people, cut $70 billion in bonuses, risk em

they have a political risk to operational risks that are subject to financial risk.ubject to contract disputes, to labor that needs to be up skilled or replaced, which is what china tends to do. there is a shortage of bankable projects at this point, frankly. so this is not a deployable resource the way you might export widgets, for example. in addition, you look at the build back better initiatives that are out there, these are consortium projects. when you think of the trade agenda, we have trade arrangements, we have free trade agreements and so on, it would be attractive to g7 or g20 countries. >> it can lament an activist agenda. think for a minute about ict. what runs to every single one of these infrastructure projects? build back better, the trade and take counsel, all of the various initiatives, different combinations. if you look at ict alone, you could imagine a robust ict infrastructure plan would enhance trade in heartland, software, in a variety of services apart from software. as well as construction, many aspects. it is complicated to do. it is hundre

if you want to think about something like risk. so i do sometimes and i generally made the point that i think we have to be careful about bringing people or employees or persons viewpoints into the boardroom . as powerful shareholderswe have to be careful about that . talk about large non-independent boards with strategic stake activists onto the board because you don't want them to bring a view that might be very narrow and maybe doesn't take into consideration the sort of more. picture but these are evolving debates and discussions that i think the best boards have a time as things are changing but we do want to make sure we get that message in from the employees in particular but also more generally from society with large. >> in terms of the makeup it's a question about should the board be part of it but it's also a question of what kind of diversity the board has. you're right about major institutional shareholders, there's legislation in california and we had that proposal recently. what data do you seek out to track and moni

if you want to think about something like risk. so i do sometimes and i generally made the point that i think we have to be careful about bringing people or employees or persons viewpoints into the boardroom . as powerful shareholderswe have to be careful about that . talk about large non-independent boards with strategic stake activists onto the board because you don't want them to bring a view that might be very narrow and maybe doesn't take into consideration the sort of more. picture but these are evolving debates and discussions that i think the best boards have a time as things are changing but we do want to make sure we get that message in from the employees in particular but also more generally from society with large. >> in terms of the makeup it's a question about should the board be part of it but it's also a question of what kind of diversity the board has. you're right about major institutional shareholders, there's legislation in california and we had that proposal recently. what data do you seek out to track and moni

ah, there is a risk in registering a new purchase. this is a risk. this is a benefit. am i willing to take this risk? yes or no, and the regulation today gives us an answer. if you look at the car off today, it's much safer than the car yesterday. you know, the 1st car that i drove in when i was a boy and my father was writing, had no safety belt and has no, no airbag, no, no a b s and, and yet z. baker was not the murderer. it is a car was exist and it was a very safe car for the time. and i'm not saying that the bessie says off 1950. you know where fantastic. but by then there were very with betty side, and then we discover that they have some side effects and then the regulation evolves in regulation becomes more demanding, and especially sides are bond or are withdrawn from the company. and that's normal, that's normal. evolution of any industry, the power of innovation doesn't come from the big companies to be companies are too big to be innovative anymore. they just want to preserve that privileges, but they're not innovating anymore. or it look at, look at that.