the bank of the united states. this is the second bank of the united states. if you recall from earlier in the semester, there was a first bank of the united states. 1791, alexander hamilton pushes through congress a bank of the united states. this bank a private bank with stockholders and dividends. this bank, hamilton says, will benefit not only financial interests, but will benefit the country, the public. how will it benefit the public? because the u.s. treasury will deposit money in the bank coming in from taxes and the treasury can borrow money from the bank. it has a 20-year charter but lots of opponents. the chief opponent, thomas jefferson hates the bank. the bank, jefferson believes, is an imperils american liberty by elevating to power a wealthy financial elite. jefferson opposes it. jefferson comes to power in 1800, the first banks charter expires, but one year later, a war iraq with britain. a very expensive war -- a war erupts with britain, a very extensive war. thomas jefferson charters a second bank of the united states and this bank, much like

time but make it actually legal at the state's level without interference we think that's a positive step that opens up banking at the state level so that would be an opportunity to carve a niche where the state banks have almost been shut out of everything else. the other major component won the resolution of 280-e which is a burdensome tax implication on the industry so we think that would be very positive and a great step forward for cannabis globally. >> a lot still needs to happen banking support, regulation, obviously as you said institutional shareholder bases, good to see you. our own leslie picker and morgan paxia. >>> look at where the major averages stand nasdaq is negative but the dow and s&p 500 continue to push into new record highs. almost up in the s&p "squawk on the street" will be right back

morgan with cash barred from the fed it had been the fifth largest investment bank in the united states. on september sixth the federal takeover of us government sponsored mortgage lenders fannie mae and freddie mac. . a little over a week later another blow when u.s. investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor under macko and then finance minister patched work had this message for savers. those are telling savers that their deposits are safe because and an attempt to avoid a run on the banks. what began as a u.s. subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the u.s. economy contracted by almost three percent and the german economy shrunk by five percent. that brings back memories certainly from my colleague who was a correspondent at the time tell me what was it like on that there a day well it was certainly shocking that

looking ahead is the worst case sanctions, sanctions on new sovereign debt and sanctions that affect state banksn debt this year's have already pushed ruble bond yields hires and sent the ruble itself weaker . we have seen foreign holdings decrease as well. i asked is in extreme scenario you could he the central bank intervening and he said this would be a possibility. >> you do get that worst-case scenario of sanctions on new sovereign debt, that affect the state bank, what will you do to protect the economy? >> the key things for what we we have a surplus on the fiscal side and on the current account side and all those factors allow us to keep stable in case of any kind of fixed are no risk. whether it is sanctions or an em have increasedes in the past couple weeks, so in case of anything external we have strong metals domestically that protect us. ♪ economy, expanding as the fastest space and nine manufacturingst have set off worries about a trade war. a 7.6% median estimate in a bloomberg survey. >> the glass is half-full, very strong gdp, and a very favorable base. was atresponding quarter

in tokyo on the human rights situation turkey and i guess they will also have talked about the state bank that you have mentioned already where func like the steinmeier the german president told the turkish president which problems he has with turkey on the way president calderon is treating the freedom of press and just treating human rights issues in tokyo. the president will. will leave building today and he will go on to cologne will be going to see another highly debated issues yeah you can watch to be expect from that trip to cologne. president out on one stew fishley open the great mosque of cologne a mosque which is run by the d.t.p. organization detail is the biggest islamic organization here in germany which is directly linked to the turkish government. preaches for instance are paid by the docks government they get their prayers directly sells directly sent from ankara and out one wants to open the mosque and he wants to do this in a very. open way he wants to have a big ceremony he wants to have thousands of people around it but already the security forces in cologne said no y

. >> if you do get that worst-case scenario of sanctions on new sovereign debt, that affect the state bankl you do to protect the economy? and the a lot of things key things is what we have done on the policy side. we have a surplus on the fiscal side and on the current account side and all those factors allow us to have a stable economy in case of external policy. whether it is sanctions or an em areis, the chances increased in the past couple weeks, so in case of anything volatility, we have sound fundamentals domestically that protect us. >> in this economy, expanding as the fastest pace in nine quarters, robust manufacturing have set off worries about a trade war. gdp grew a .2% from a year earlier. .2% from a year earlier. -- 8.2% from a year earlier. >> the glass is half-full, very strong gdp, and a very favorable base. the corresponding quarter was at a multiyear low. it was notwithstanding a strong print. two things stood out, one is consumption, india continues to hold up well. i think more importantly for the first time in many quarters exports began to grow stronger than imports

sanctions on sovereign debt and sanctions that would affect state banks.f we get these worst-case scenario sanctions, will you be further cutting your growth forecast for 2018 and 2019? >> it can change slightly below the 2% level. the economy is performing pretty well. it is more the volatility we are seeing. argentina, south africa, brazil, india. we see volatility. the fact that russia is pretty stable is a good sign. >> i take your point about what is happening in emerging markets also having an impact on russia. sanctions from the u.s. specific to russia, and you have already cut your growth forecast for 2018, 2019. not by much, but you have cut them. if you get that worst-case scenario of sanctions on sovereign debt, sanctions that affect state banks, what will you do to protect the economy? is -- we have a surplus on the fiscal side, on the current account side, no external debt for all those sectors. we have a stable economy developing in case any kind of external volatility, whatever, crisis,s, a deeper em substantially increase in the quarters --

maybe 1-2 banks will be on the final list of sanctions did not 6-7 state banks. t only for russia, but for the global financial system at all. if this scenario, sanctions for 2-3 banks in the final law, of course the bank of russia and the banking system can ship some , internal payment systems inside russia. onlyen if the sanctions affect 1-2 banks. >> smaller banks. rat affect the spillover , what would be the spillover effect? >> movement from the clients from little banks to other ones. some russian banks had this experience after 2014. again, there are some internal whichisms already at work will be there for this step. >> what should the government and central-bank do in the event week get the sanctions from the u.s. affecting state banks? >> of course we have a very small influence on political decisions. ?> what would you like what with the russian government and central-bank do? >> they already made some instruments. it is special payment systems between the central bank and the , our ownussian banks astems of payments combined big part of the russian eco

anti-doping agency could be reinstated it's been suspended since twenty fifteen amid allegations of state bank cheating and it comes after the compliance review committee of the world anti-doping agency recommended it be brought back the final decision will be made following a vote on thursday. the c.r.c. reviewed at length a letter from the russian ministry of sports to water and was satisfied that this letter sufficiently acknowledged the issues identified in russia therefore fulfilling the first of the two outstanding criteria every side has road map to comply and it is important for us to reinstate the next war the executive meeting we decision on september twentieth with hope believe we did everything that we could and we are ready to for the corporate with our foreign partners to continue to work in this direction and follow common rules which are equal for all. when it was suspended water gave russia a list of commitments to win reinstatement the majority of which says russia has now fulfilled a key point those been lack of access to data and samples stored in the moscow laboratory the

maybe with the government should do would say certain banks needed capital and to publicly state's bankid not meet capital. what i said to him is this is up to you, but if you come back to thesury for tarp capital, second helping will not be as honest attractive terms as your offer today. on attractive terms as you are offered today. theyiately thereafter moved to inject capital to the next largest banks and moving quickly to put capital throughout the financial system. for a short period of time, i briefed a sigh of relief. i thought back over the period beginning in mid-august when we were rushing to stabilize fannie and freddie, all the problems we had gone through with lehman, all the issues we dealt with before we went to congress to get the tarp, getting the tarp authority. i knew we had a lot of work to do, but i thought we had done by far the biggest part of it. and then, citigroup started to wall. >> markets at the basement again today after news that citibank would cut another 52,000 jobs. >> citigroup watched shares fall below four dollars, the lowest level in 15 years. moly,

these two indian state banks here are seeing huge moves today. a 25% upside after the finance the lendersommended to merge with another state bank. that overall to strengthen the banking system and the debt system. also, this stock down 1.7%. this is the japanese e-commerce company. billionairempany that paid speak first passenger to head to the moon. we got that announcement from spacex a couple hours ago. not sure about the price techie paid. paid.ce tag he nejra: the u.s. government will slap 10% tariffs on $200 billion in chinese goods next week and will double the rate in 2019. donald trump's latest move strengthens what is shaping up to be a prolonged trade war between the world's two biggest economies. for more, our chief asian economics correspondent joins us from hong kong. great to have you with us as always. seem,as saying, markets to a certain extent, to be shrugging off this escalation in the trade war. what can you tell us about the latest round of tariffs in terms of how they compare to what was expected? >> good morning. on the on

bonds but then when i asked him as well will could be the fallout from anything shows that affect state banksid there could be significant damage. >> in this environment we are very likely to see other china, etc., euro willing to shift away from u.s. dollars denomination of trade because of the vital this of the exports. we are very likely to see the shift intensifying. that just showcases that we are of internalthe line sanctions, very likely at the line. it is likely to ricochet to u.s. interests and u.s. ally interests. they are a big part of the global economy. it is very hard to isolate a. -- isolated. reporter: in the event there were sanctions on russian state -- he said they are not limiting capital flows. anna: how concerned was he about ruble weakness? tell us the latest thinking there in moscow. reporter: he was actually fairly sanguine about where the ruble is at the moment. he would not commit himself to any levels. i asked him how much of the weakness he actually thought was down to external factors. sanctions, one of those but also the general em selloff we are seeing. right,t

important to say that the president the german president said all this program the military honors the state bank that's not a sign of normalization bitch in the relations between turkey and germany it could be the beginning of a normalization as peter has mentioned the studio there are many many pale points where germany is absolutely unhappy about the turkish side and those are not forgotten the nats comparisons for example the rest of german citizens of journalists in turkey the violation of human rights all these topics they are still on the menu but then again germany also says we have an interest in a stable turkey in international relations turkey is an important partner and also in via lettre relations business but also in the refugee questions for example germany ones to cooperate with turkey so that's important on the other had turkey needs partners at this moment more than ever since they have tremendous problems with the united states at this very moment and it with their own economies or turkey needs partners and they want to reach out to germany more than ever ok yes turkey has imme

are talking about state bank. it is likely to be self-correcting.also says while the weakness stems from the u.s.-china trade war, it may help in this economy. to sell its products elsewhere did rishaad: american airlines has become the last of the leading u.s. carries to raise its fee for checking bags. like its rivals, and now charges $30 for a first. they adopted the fee after jetblue took the lead. dave: bloomberg has been told in early talks to buy a food delivery company for $7 million. the uber ceo has made food delivery -- as a top priority ahead of the plan for early next year. was last valued at $20 billion. we are told that any offer we need to be higher. rishaad: markets in a row position, moving to the upside but what is moving on these markets. 10%?s saurruga bank up yvonne: we have learned about this bank scandal. we have heard some bank chiefs quit and some of the founding family members will be selling its holdings and repaying loans. stocks up 10% in japan. world surging 10%. they will be actively considering a share buyback. they

united states in the run up to the financial crisis of two thousand and eight even if china's state owned banks can avert a full blown collapse a greater problem of too much that is when you don't have a crisis for example japan japan never had a debt crisis but i did speak japan was seventeen percent of the global economy roughly the same size as china today. today after two three decades without a crisis what with too much that the japanese share of the global economy has dropped to roughly seven percent. lead pay for one isn't particularly worried a few years ago she received a lump sum as compensation when a contract was dissolved prematurely parents said she should use it to pay down her moves now that might have meant going to a smaller flat we're not going to cafes like this any more going out for a drink with my friends. she chose to stick with a long term mortgage with low instalments at this rate leave bay won't have paid it off before she retires. tourism is booming in germany visitors come from all of the world and germans themselves are also spending more money on trips in their ow

united states in the run up to the financial crisis of two thousand and eight even if china's state owned banks can avert a full blown collapse a greater problem of too much that is when you don't have a crisis for example japan japan never had a debt crisis but at its peak japan was seventeen percent of the global economy roughly the same size as china today. today after two three decades without a crisis what would. the japanese share of the global economy has dropped to roughly seven percent. lead pay for one isn't particularly worried a few years ago she received a lump sum as compensation when a contract was dissolved primitive early her parents said she should use it to pay down her mortgage but she decided not to. you know. if i had used all the money for that i wouldn't have any cash reserves now that might have meant moving to a smaller flat we're not going to cafes like this any more going out for a drink with my friends she chose to stick with a long term mortgage with low instalments at this rate leave bay won't have paid it off before she retires. our final report this week takes u

morgan with cash barred from the fed it had been the fifth largest investment bank in the united states. on september sixth the federal takeover of u.s. government sponsored mortgage lenders fannie mae and freddie mac. . a little over a week later another blow when u.s. investment bank lehman brothers filed for bankruptcy. the u.s. government chose not to step in. stocks around the world crashed as banks lost even more confidence in each other. the following month german chancellor angela merkel and then finance minister patched on book had this message for savers. bizarre telling savers that their deposits are safe the shows and an attempt to avoid a run on the banks of. what began as a us subprime mortgage crisis soon had an effect on the global economy trade slowed down dramatically the result in the year two thousand and nine the us economy contracted by almost three percent and the german economy shrunk by five percent. well back to the present time now and the c.e.o. of amazon jeff bezos on his wife mackenzie basis have launched a two billion dollar fund for charity it will help h

plunging by 17% after the government announced plans to merge with two smaller state run banks.he third-largest lender, criticizing new delhi for entertaining -- interfering. and finally, coca-cola is said to be exploring new options for drinks in canada. >> the company is in talks with the medical marijuana producer aurora over some new recipes. both companies confirmed they were discussing drinks infused with cbd which is the non-psychoactive chemical found in cannabis. it would help reduce pain and inflammation, according to reports. 17% forbis shares up aurora in tomato. rochelle: how would that work? marijuana supposedly makes you flat, 17% for aurora in so -- >> there will be some interesting chemistry going on. carroll withphen the business update. time after the press review. ♪ here with a look at the main headlines in the papers, hello, dt. we'll start with reactions from the korean press as the leaders of north and south korea hold their third summit. >> avoiding clashes and nukes is how one paper has pretty much summed up the goal of this -- is at the korean june with

you know it was rolled back largely for smaller banks inside the united states who really the cost of compliance for dodd frank was prohibitive for a smart of for smaller to midsized banks and basically all that was functionally was a protection scheme for big banks who could afford the compliance the compliance costs involved but again the you know it's amazing how we worry about shutting the barn door when the cows already out the real threat in the near long term is is is publicly held debt and i stick by that and it's scary and it's and it really scares me ok well that's worrying then don't join us economist and also advisor to the current u.s. administration thank you so much for your time my pleasure. it was the car of the find a generation and one of germany's most iconic brands but now the venerable v.w. beetle time is coming to an end fox has announced it will halt production of the beetle in twenty nineteen bringing an end to the cost a seventy year history but it's not all bad news for people fancy w. will release two more editions of the cult car before the beetle rides of

think the whole thing is revolutionary somehow well i don't want to say that it challenges the state or banks or whatever but if you look at the whole economic system you can see the problems that crop up time and time again . and then suddenly big point comes up with this idea complex because you read it through when you go into it a bit deeper and you start to look at blace and the whole technology behind it and then you increasingly realize that this is an idea that can really work because it can really pay off really function. as a start it's going very well we should be in the black by the end of the year and our goal now is to have thirty stores in three years with the next one's opening in london and stockholm later this year. and that is south. vienna's postal service now even sells bitcoin veldts is proof that the block chain revolution is even reaching traditional companies. but there is also a dark side particularly in its early days that coin was seen as gangster money because the anonymity of the chance sections meant it could be used to launder cash and buy and sell weapons and

denying these elite elite transferring six hundred eighty one million dollars from the state's investment fund into his bank accounts. the head of israel's air forces due in moscow following the downing of a russian warplanes syrian air space russia's defense ministry blames israel for the deaths of fifteen and then on monday israeli government has expressed regret its accusing syria of firing in accurately during an air raid targeting hezbollah weapons talent's has more from moscow. this israeli military delegation headed by the commander of the air force major general and mccann nor can has come to moscow essentially to argue israel's case following the downing of this russian plane and in addition to say to the russians that iran is continuing to attempts to transfer strategic weaponry to hezbollah and establish a military presence in syria now regarding the downing of the plane what israel says is that it wasn't their fault their points are that it was extensive and inaccurate air defense fire from the syrian anti-aircraft batteries that down the plane that when these missiles were launched at the russi

the outer banks under mandatory evacuation orders and four states have declared emergencies. cause as much as $27 billion of damage. global news 24 hours a day on air and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. nejra: thank you so much. breaking news across the bloomberg. img's cfo will step down. this just crossing the bloomberg in the past couple of minutes. img group saying the cfo will step down as member. the group citing a supplement of shortcomings on due diligence. the dutch fairly taking a break from being angry at their bankers. heads incurred their wrath once again just to get more context. manus: this was a big issue last week. the bank agreed last week to pay $900 million to settle a dutch investigation into issues around money laundering. if you go on to the management board of ing, you can begin to see and understand that timmermans was there for over 11 years -- 11.4 years, delivering -4.96% overrn of his entire tenure. a man who was there throughout the crisis of banking and issues that hap

guilty to receiving hundreds of millions of dollars prosecutors say the money in his bank account came from the state investment fund one m d be set up by not cheap eight years ago to work over one billion the issue of the two point six billion ringgit has been used to still enter any soft me today's charges will give me an opportunity to clear my name and proof that i am not a thief. the new charges are in addition to seven others for allegedly receiving ten million dollars from another state owned entity police in at least six countries are investigating transactions involving one m. d. the us department of justice alleges not just and his associates stole at least four and a half billion dollars from the fund and go but the corruption scandal helped defeat not jobs coalition government in the general election in may and during the sixty year rule of the bars a national party a new government led by former veteran prime minister mahathir mohamad wasted no time in reopening the investigation into one m. d. b. which is not to pet stopped police in malaysia issued an arrest warrant last month for a ma

and the bank of the united states, jackson saw the bank of the united states is a corrupt monopoly that financed credit, money was centralized among the wealthy in very few hands, and jackson wanted to tear down that monopoly. and the problem with the bank that supporters of the bank war did not agree on the best alternative. some supporters of the bank war believed we should have totally decentralized banking and bank notes issued by anyone who really wanted to issue them. that was an alternative called free banking. other people were against all banking, altogether. jackson was probably in that group. and he referenced abraham lincoln. printed ancoln greenback currency issued directly by the treasury and not by a bank or a central bank, and of course our currency today is issued by the federal reserve, not by the u.s. treasury. far as why trump hank andrew jackson in the oval office, he sees himself as a jacksonian-type president, he sees himself as a populist, he admires certain qualities about andrew jackson and has made that quite evident, and so have those surrounding him. host: n

> i have been a customer of bit co a long time now and this product and having it regulated by state bankingrity changes the game for me. >> all right mike, hope you'll dom come back and give us the jupt the ceo of bit co. >> check out the after hours action in adobe. reporting earnings what are the wall street analysts saying about the stock we get the details plus you have seen the don't miss the bar school sports ceo coming up on mad money you see the cramer camp at the top of the hr.ou live at the nasdaq markets more "fast money" still ahead. introducing e*trade personalized investments professionally managed portfolios customized to help meet your financial goals. you'll know what you're invested in and how it's performing. so you can spend more time floating about on your inflatable swan. [ding] this wi-fi is fast. i know! i know! i know! i know! when did brian move back in? brian's back? he doesn't get my room. he's only going to be here for like a week. like a month, tops. oh boy. wi-fi fast enough for the whole family is simple, easy, awesome. in many cultures, young men would stay

there's no bank involved no state no central bank and no privacy concerns. crypto currency isn't logged in any central location every transaction is replicated on millions of computers and recorded in a block chain that can be accessed by all users but the transactions are anonymous that means kitty could be buying drugs or weapons without the police knowing that's been damaging to crypto currencies image their own security concerns in aug twenty sixth hackers stole fifty eight million euros worth of bitcoins causing the price to plunge twenty percent there are now almost two thousand crypto currencies and a growing number of coins are in circulation their market capitalization is currently about one hundred seventy billion euros. and that number is growing and so are those security concerns for crypto currency holders. news of hacks every few weeks and whole countries are now creating their own digital currencies take venezuela and the petro it was designed by the country's president nicolas maduro to get around the latest u.s. sanctions put in place by thi

businesses reducing or delaying investments in the united states its central bank the federal reserve says the trend is due to concerns about washington and beijing's trade war so far the effects of the tariffs have been modest they've boosted some production costs according to the fed several american companies warned that more tariffs could hurt their businesses the president donald trump said washington was ready to impose tariffs on all chinese imports on wednesday the u.s. government proposed another round of trade talks with beijing. apple shares leapt by two point seven percent on bale its latest smartphone line up with the customary fanfare of course the tech giant says the i phone ten s. and its biggest sibling the tennis max the fastest i phones ever liquid proof and have the most secure facial authentication technology in a smartphone apple is counting on hands and profits for the tennis macs with the company's biggest display so far. a deadly bacteria is devastating italy's all of industry it strikes down trees extremely quickly and leaves fields unusable so far the area a

government take your time but make it actually legal at the state's level without interference we think that's a positive step that opens up bankingould be an opportunity to carve a niche where the state banks have almost been shut out of everything else. the other major component won the resolution of 280-e which is a burdensome tax implication on the industry so we think that would be very positive and a great step forward for cannabis globally. >> a lot still needs to happen banking support, regulation, obviously as you said institutional shareholder bases, good to see you. our own leslie picker and morgan paxia. >>> look at where the major averages stand nasdaq is negative but the dow and s&p 500 continue to push into new record highs. almost up in the s&p "squawk on the street" will be right back see that's funny, i thought you traded options. i'm not really a wall street guy. what's the hesitation? eh, it just feels too complicated, you know? well sure, at first, but jj can help you with that. jj, will you break it down for this gentleman? hey, ian. you know, at td ameritrade, we can walk you through your options trades step

state investment fund into his personal bank account denied corruption when charged with seven seven similar offenses last month. he has the latest from kuala lumpur. the new charges facing former malaysian prime minister najib razak centered around allegations that he had received two point six billion ringgit or the time of the transactions worth around six hundred eighty one million dollars interest personal bank accounts around two thousand and thirteen and that these sums of money came from the state investment fund one and that he had set up these charges a more significant they involve a much bigger sum of money than the ten million dollars he's alleged to have received from another state own entity as our senior international he was charged with criminal breach of trust money laundering in relation to those transactions over the last two months these new charges will involve a much more complex investigation investigators believe that front companies and well as well as foreign offshore entities were used to siphon the money from one end d.b. and eventually into use. bank acc