on 2.0 enables bank of america to efficiently support all the existing bank ons but new ones as wellill be built to meet the national standards and in essence it is giving efficiency to our local market that have to do the work obvious to connect the products and grant and our society to the bank on movement so but for national bank is creates efficiency local people know what is happening on the ground and local bank on movement will be meeting through this new model it is set out and for us that creates a great more enhancement it is exciting to see that i know this energy could come back brought forth to better people i think that also will inspire us hopefully, all of us in the room to bring that energy to the local programs as well i'll taken place to talk about what save balance banking is it is our save account we rolled to out 8 months ago and in front of the fdic committee financial inclusion council and brought it forgot to the chairman really as a model in our way of contributing a new account to the chairman's fdic save account movement but the account was built at bank o

the bank doesn't cost the taxpayer a penny. we're doing more in the way of reforms than since president reagan. it returns $500 million to $1 billion a year back to the treasury. now i know that they have take then position to kill the bank. but this kills jobs. this is about jobs in tennessee. jobs in california. jobs in oklahoma. jobs in illinois. this is not a level playing field. china, russia, all of these other countries are just hoping that we make the mistake and we don't re-authorize the charter of the export-import bank. let's be responsible adults. let's not play politics as usual. and worry about these outside groups and our political scores, mr. speaker. isn't it sad that we would worry about some score with an outside group more than our districts? and more than our constituents that have jobs because of the export-import bank? we should be ashamed of ourselves. i again urge my colleagues to vote no on all of these amendments and let's get to the serious business of the people's house. with that i yield back. the

not by the bank. and so, the charge that this is a fraud within the bank is similarly not true. these are people who tried to defwraud the bank. there was one fraud which they called out one incident. dub ust want everyone to don't be misled into thinking that it is a fact. and that's why we have an i.g. creates a nonpart san chief officer and requires the g.a.o. to require the bank's fraud controls. legitimate controls raised. you he bank shouldn't be are but it is a good evening but it has strong bipartisan support that cre ace jobs and reduces the deficit and enables u.s. companies to have markets for our products overseas. not only big businesses that is addressed in this amendment. and for small and moderate businesses that wouldn't have he resources to find markets abroad the ex-im bank has created for that purpose. thank representative dent and others for bringing this to the floor, and we have a bill that's not only good for our highways in terms of transportation but also re-authorizes the ex-

this is one of the other changes at the world bank group. use i've been working in texts, i had come to the -- working in development i had come to the conclusion that what was missing was the science of delivery. not the science of what needs to be done, but how to make it work. you need to focus on childhood stunt. i say if i need to do that. while bying attention to priorities, we need to see, if you have a different kind of community health workers, you can improve the outcomes from malaria, and improve the outcomes from chronic diseases. the non-infection diseases. you can do all that. you can help children stay in school and tackle stunting at a lower price than you might have imagined and by the way, we have a special fund in which the donor countries are going to help you february this at low costs. >> if we come up with the multiple solutions, they not just similar, a single program, one that helps them solve many problems, then i think we'll sa allies. we are putting the burredan on ourselves to come up with the approaches. those ar

the banking sector is front and center. the -- the news from standard chartered rocking the banking world this morning. bill winters is cracking on with changing this institution. let me show you the share price reaction. standard chartered, from top to bottom, 8% drop in hong kong. we will see how we trade through here in europe. ubs has just been breaking as well. in terms of the headline numbers, we had a net income 07 billion swiss franc. looking through the numbers, i would say that the asset management division has slightly underperformed. few misses,is -- a a few gains. manus cranny is going to be talking to the ceo later on. really looking forward to hearing what he has to say about his bank and where it goes from here. 6:45interview coming up at london time the a big focus on the banks in london and in europe and in hong kong. let's get the details on how asian trade is taking place. zeb eckert is standing by in hong kong. zeb: good morning. markets today generally higher despite this blockbuster news from standard

on 2.0 enables bank of america to efficiently support all the existing bank ons but new ones as wellill be built to meet the national standards and in essence it is giving efficiency to our local market that have to do the work obvious to connect the products and grant and our society to the bank on movement so but for national bank is creates efficiency local people know what is happening on the ground and local bank on movement will be meeting through this new model it is set out and for us that creates a great more enhancement it is exciting to see that i know this energy could come back brought forth to better people i think that also will inspire us hopefully, all of us in the room to bring that energy to the local programs as well i'll taken place to talk about what save balance banking is it is our save account we rolled to out 8 months ago and in front of the fdic committee financial inclusion council and brought it forgot to the chairman really as a model in our way of contributing a new account to the chairman's fdic save account movement but the account was built at bank o

let's talk about the world banking and joining us is many the manager partner. chief economist and co-chairman. you know, this world banking is still tough as we know. we have known that for awhile but these french lenders outperform expectations in the quarter. >> it's doing okay. but the reality is the european banks even if they are able to improve on their revenue at the group level they are essentially laiden with their capital market operation which is is not performing as well as it used to. the main reason is a loss or decrease in revenue and profit. >> right. so credit i recall when you look at their numbers the strength is coming from the retail banking side. >> always been. >> always has been, right. but a lot of banks are switching more to focus on retail, for instance, you know, for instance here in the u.k., barclays and the like. is that the future? banking should be boring as we heard in 2008? >> it's not just about switching to retail. essentially the banks are shifting from setting assets, managing risks for their clients or on their own behalf

they are reducing cost at the bank? nue has fallen but the cost could take an upset. -- this story is about cost-cutting. down not tooks much of the earnings. what is happening in china and the numbers in china. it is a reasonable set of numbers. that means the dividend is sustainable. 615 year yield -- 6.5 year yield at hsbc. -- francine: are they any was serious this time that they may leave? >> the feeling from the management team is a they are wedded to china. they are excited about that part of the world. them whether the bank makes that decision. a big call to make. they are pivoting toward the region. investing when i just billion dollars in that part of the world. a venture ind china today. they are going forward in that region. doesn't it make sense for the headquarters to be there? that is+++ for the headquarters to be there. that is a big call. there is push back for them to consider. manus: manus: -- manus: we were talking about deutsche bank. when you look at the whole landscape, the value of ubs's top -- is

anna: linkage is between the central banks. it comes into the fed, bank of england conversation. t's talk about the news we have had in the last half-hour. more recently, the french bank general reported -- we have the report. >> we saw a 28% increase in third-quarter profit for france's second-biggest bank. 1.3 billion euros versus estimates of 840 million euros. this is an accounting gain tied to socgen's odette. consumer levels raising. in the second quarter, socgen had a -- it's highest profits in the financial crisis. it was largely equity trading driving. this time we had a drop -- 5.5% drop. fixed income revenue drops 23%. bank had aniggest increase in revenue from trading in the quarter. on the consumer bank, 17th percent in profit as revenue rose. guy: we will be hearing from the ceo at socgen in a few minutes. he has some interesting things to say about the retail banking story. anna: let's talk about what is going on in the u.s.. let's talk about toyota. breaking news. operating profit coming in ahead of the estimates. guy: they have cut the global target to 10 million

robert: it sort of the ares by the central bank. ross the world, they are worried about china and emerging markets this year. one thing that rose in importance over the summer is the outlook for central banks changed over that period. we also had a big fall in oil prices as well. it really just delays action, rather than preventing it. also, probably forced people to cut rates as well. the other thing you've got is some of the major economies, the u.s., the action, rather than preventing it. u.k., wage growth didn't pick up as fast, in fact still hasn't picked up in the u.s. as fast as most people expected. the unemployment rate is pretty close to precrisis norms. that is really quite a surprise. in the eurozone, we've got continued worries about inflation expectations, that the recovery is an fast enough. francine: one of the things we were talking about was whether this was communication from the central banks. manus: the fed guided us all the way to the precipice of september, than circumstances. ahead of the fed. the world really

kim, president of the world bank. intention to spur economic growth for the world's poorest people. and their increasing vul benerability as kim sees it to climate change. i'm joined by dr. jim kim, the president of the would have world bank. the world bank has just come out with shock waves about the way that climate change could change the future economic development of the poorest people in the world. and the bottom line, i guess from the study, unless we do something like this, it's kind of game over for hundreds of millions of people. >> absolutely, if we don't reach our targets, we're talking about an additional 100 million people who will be plunged into poverty, so it literally is game over for us. and we have been very focused on climate change. everything that we might be able to do. we have a 5-point plan. there are some no brainers. climate-smart agriculture, growing crops that are more hardy. thinking about agriculture as a way to help poor countries adapt to climate change. it's a no-brainer. building sm

if you had to look today, the place that there is more risk is in the non-bank, the shadow banks. e the regulations have basically pushed the risk, the most risky things, out of the banking system. erik: and cit knows a few things about regulated banking because until the one west merger, it primarily was an asset-based lender to medium-sized u.s. companies. it also did a bunch of leasing and saw what is going on in the aircraft industry, in the railroad industry, but it did a lot of lending to midsized companies. least aa group or at segment of the economy that is being targeted by these non-bank lenders+++ clubs, but there are others -- the on-deck, the funding circles, that are making loans, commercial loans, outside the banking industry. i have heard anecdotally there is a ton of capital flowing into this industry, and the risks that they are going to make, irresponsible loans to companies as opposed mortgage borrowers, but the point is we might find ourselves in a situation not unlike what happened in the mortgage crisis. a bunch of loans that are going to go bad. betty: and y

the swiss bank took a tax credit and set aside fewer provisions for legal growth happening at the investment banks. meanwhile, the lender postponed next year's rough it ability target. australiae bank of left the key benchmark rate unchanged while opening the door to cuts in the future. said theovernor outlook for inflation may afford scope for further eating -- easing of policy. there is a deal we need to talk about. activision blizzard has agreed to buy king digital for $5.9 billion. candy crush maker king digital has fallen or than 30% since the high in july last year. let's get more with caroline hyde. let's talk about the deal. it makes sense in terms of the business model and a decent premium as well. caroline: a 16% premium over where it was trading yesterday. king digital is a european company. it was born out of sweden and registered with its headquarters here in dublin to make the most of that more appetizing corporate tax rate they have in ireland. a 60% premium sounds like a good amount, but $5.9 billion is less than the market valuation of king digital when it ipo would in 2014

the balance sheet of the bank of japan is a portion of gdp -- the balance sheet of the bank of japan of gdp is twice as large as that of the united states. the question is, how do you exit? it is more like a drug addiction where you know it is very high but you cannot risk drawing yourself -- what you cannot withdraw yourself. -- but you cannot withdraw yourself. will be with us next week from oecd. if we are codependent, how can we'reeak -- dr. komar, codependent here at "bloomberg surveillance." omal: i would try to give you my prescription. the only way you get out of drug addiction is, one, you are willing to wean yourself by taking the adverse impact it is going to cost. so the fed then should have raised interest rates two years ago, and it would have caused a market correction. that is the only way to get out of the situation. if the fed raises interest rates at some point in time, the dollar will go from 1.09 to the euro today to past it. and then you are going to put the u.s. economy in a recession. that is how we get out of it. tom: we are going to come back with sri-kumar.

the ftse 100 slightly off with bank of england's super thursday. got the rate decision, got the minutes. cac 40 moving almost 0.4% higher. we do have a lot of corporate earnings. let's take you through some of the main movers have been watching. increase in8% third-quarter profit. that number was a beat. the consumer banking unit. icole, down 2% at the moment. a 15% jump in third-quarter profit. it was helped by higher earnings in its stake. -- astrazeneca also beating third-quarter profits. jon: keeping an eye on glencore profits. up by over 2% after deutsche bank upgrades the stock. here is what is happening in today's program. up, december first is live. and super thursday. carney's last chance to show his cards ahead of christmas. and the shanghai composite closes back in a bull market. yellen sets the scene for a december rate hike. the federal reserve chair hit a hawkish note suggesting that a 2016 rate hike was still on the table. >> what the committee has been expecting is that the economy will continue to grow at a pace that is sufficient t

three, the investment bank -- and this is what he said, which was revamped the investment bank. and they made money and goodies. -- on equities. wealth management which is the core of the business missed a headline numbers. there are a number of factors that helped us through this seasonal period. if you think back to what we talked about throughout the quarter, glencore, he still believes, though, that there would be wealth creation in china. legal costs coming down, and the investment bank or the reshaped investment bank which is what every other bank is trying to achieve actually delivered in this turbulent period. francine: manus, we heard from the ceo and it is all about reofitability that seems mo difficult to achieve -- not probability but what they are expecting profitability to be. let's get to guy in standard charter. it is great to have you in this seat. it is pretty tough, right, overall. he's having a really tough time. and we have a surprise loss. he'ssome would say kitchen sinking the numbers. promised when he came in in june that he would deliver repositioning. in

ana: we want to be the best bank, the best retail and commercial bank for our people, our customers, r shareholders, and our communities. the strategy has to make sense for our customers, but also for our shareholders. the reason we can spread the circle is we have a best in class cost/income. we reported in june a cost/income ratio of a bit less than 47%. that is best in class among all large banks in the world, and that is what allows us to deliver great products with great prices and excellent service. now, we are not there yet by any means, and that is exactly what we are going to work on over the next few years, is how we do that in our larger markets. francine: and what was so successful in the u.k. that you can replicate elsewhere? ana: well, when i was in the u.k. we were probably one of the worst, if not the worst, bank in the u.k. in terms of service. and since then, we are ranked pretty much at the top. and that is very, very important. but also, we have, i think, come up with a strategy that customers like, so we have been the biggest beneficiary of the switching service.

it is super tuesday for the bank of england. e minutes of its monetary policy meeting will be released. governor carney will release his final quarterly inflation report of the year. the possibility that upon caused the crash of the russian airliner is putting a new focus on airline security in egypt. there was a security breach in may in the airport with a flight started. government forces are fighting --itants linked to you linked to the islamic state and the region. in russia, the first of the crash victims is laid to rest today. all 224 people on board were killed. survivors trapped in the rubble of a class pakistan building use their cell phones to call for help. more than 100 people were pulled from the wreckage of the factory. they fear the death toll could rise. some say the owner would not stop construction at the factory even though an earthquake cracked walls last week. secretary carter is visiting a u.s. aircraft carrier in the south china sea. the carrier is stationed not far from artificial islands built by china. t

santander is one of the oldest and biggest banks in the world.ith a footprint in spain, the u.k., and the united states, it is a truly global bank with more than 100 million customers. recently, the spanish lender had undergone several big changes, most recently when emilio botin, the executive chairman, passed away in 2014. his daughter, ana botin, took over from her father and quickly implemented a share sale of 75 billion euros. in her first television interview since becoming chairman, i speak exclusively to ana botin about her vision, emerging markets, and regulation. ana botin, thank you so much for joining us. we have seen these huge changes in the last 12 months. are we going to see more, or are you happy where the bank is now? ana: the last 12 months have been very intense. the capital rates are changing the dividend policy, but more important the governance of the people changes on the board. we changed the ceos in our five big countries. that is over. we are ready to actually start executing on our strategy. francine: your strategy is

nine of the 12 bank presidents must approve. any concern with the belt and suspenders approach that way? >> i think the approach that we have currently that's in dodd-frank is quite adequate. >> so you do have a concern with adding the district fed bank presidents? >> i might have some concern with that. >> what concern? >> this is always been a board to decide when to authorize particular reserve banks to engage in programs through the discount window, emergency lending programs through the discount. >> you understand there's a bipartisan concern. and bicameral concern of how that has been used in the past and there is too big of a door open, yet, for the massive wall street bailouts to happen and that what we are trying to address is, in addition to collateral and borrower definitions, we are trying to make sure there's not a check and a rush to find a solution here, but we also have the fed bank presidents in there. >> well, dodd-frank clearly restricts the way in which this power can be used and the rule we finalize will addr

choco as you look at the banks, we know in the u.s. -- jonathan: as you look at the bank's, we know in u.s. if you push .own yields we know in europe it is a very different picture. augusta bank for credits, loans -- if you go to banks for credit, loans, are we disturbing that by taxing the banks even more. they are cutting jobs. they can't lend even if they wanted to. some of them because they cannot be as aggressive as they need to be. we texan banks so they cannot are we taxing banks so they cannot function in the way they need to? antonin: the deeper cut would hurt. the hope or assumption would be in theeated growth context of your, we feel u.s. -- as we see a pickup, if we start writing back some of the spanish loans, that should be very positive. genco as we wait -- jonathan: as we wait for mario draghi, the german argument is it dead? antonin: it is convertible overtime. by promising and delivering and under delivering and doing what he said he would do, he has been pushing. jonathan: antonin jullier, think you very much. mario draghi on the states. gentlemen, a year ago in this

are you talking to any of the banks? have you had conversations with any of the banks? ing to see your technology replicated in an investment bank, in a retail bank? peter: i think it's an incredible moment of opportunity. we've probably engaged with every major bank in the western hemisphere. 2015 would have been a year that the industry built a lot of infrastructure. i think 2016 will be the year of big partnerships. manus: who are you close to signing a deal with? american, european, or british? peter: i think the banks in new york are probably at the forefront of adopting new and exciting technology. right behind that is london. manus: would that be an investment bank in wall street or a retail bank in the united states of america? let's break news here. who are you going to do a deal with? peter: you should know better than most the kind of confidentiality agreement these partnerships operate under. manus: do you think investment banks are more open to this technology? more open to embracing your technology than retail? it's actually commercial banks and insurers. w

adjusted -- plus out the bank. ss asking for more clarity. how much is the government going to end up owning? there are a lot of questions. how many of those are we going to get answers to? philip: in line with market expectations. greek banks have to raise 4.4 billion euros. baselinegoing to be assumptions. news, because the greek banks will not have an 4.4 -- theising the remaining 10 billion euros on the -- 25 -- understandably, the greeks have much less bailout package and already estimated. the fund said yesterday that it will stop at 10 billion euros under the adverse scenario. the 75% will be through convertible securities. it won't make them feel comfortable to invest into greek banks before the second time in 18 months. are onemind us where we the debt restructuring story. it is something the imf has been pushing for. there are many voices in your that are not so keen on that conversation. reminder tois is a greece that debt relief issue. bank recap was the thing to resolve at the moment. into --er we get [

the central bank. a lot of news out of the central bank. bloomberg intelligence's chief with all theomist news flow out of the bank of england yesterday. jamie murray joins us in the studio. preparing for liftoff in 2016, one of the key messages coming out of that interview with mark carney. does that tie-in with what markets, economists, what you were expecting? >> i think most people are surprised at the dovishness of the report. i think that is the right thing to thing. markets had priced in the first when the forecast was closed. at isteresting to look the inflation forecast. there's still a relatively significant overshoot of inflation. that tells you the overall path of market rates was to zulus. loose.too anna: when in 2016? is this a point of contention for everybody, economists, investors? so, becauseightly it depends on what happens to the u.k. economy. i think most people now feel less confident about taking any particular quarter. we still think may is quite likely. see a weaker recovery and

the more liquidity central banks add the less there is in markets. in addition to regulation central banks distortion of markets has reduced the hetro jen nate of the investor base. so the question is is central bank liquidity forcing investors to view them expensive making markets more prone to sudden corrections? >> well, we hold significantly more assets the federal reserve than other central banks than we did prior to the crisis. but we have very deep and liquid markets in the treasury securities and mortgage backed securities that we hold. so i'm not aware that our behavior is significantly influencing market functioning. i'm not aware of any evidence suggesting that. >> thank you for your testimony. >> the time of the gentleman has expired. to accommodate the chair's schedule the gentleman from maine will be the last member recognized. >> thank you mr. chair. and thank you chair yellen for being here. they always save the best for last. that's what they say up in maine anyway. but i'm thrilled to have a discussion with you in the lobby before we

a huge amount of anger at the banks. you are relatively popular. tempt on youan to try to expand this to the british public. it is not think it has gotten through. >> i think it is understandable the residual skepticism people have. how much progress has been made, a lot has progress has been made. progress on paper has been made in terms of making -- now it has to be implemented. the key issue is around conduct. i think what angers people with what is being tackled now, individual responsibility has not been there. we have seen big fines against institutions, relatively few institutions -- >> some have gone to jail. >> it is broader than that. culture anderall with a broadavior set of people in the industry. we have made sweeping changes. i would underscore, in conjunction with banks and market participants who are in the process of rewriting the codes of conduct in this industry. we are connecting as regulators, the fda and us as the financial regulator, are correcting those cold and behaviors to individual responsibility and accountability. it is

and the bank deposits went up. you can look at the numbers.what was happen is allowed the institutions getting punished by the markets and getting ready to fail, how much damage would have been done by that is a hard thing to know, but if we hadn't created -- i'm fairly confident we would have had a more severe short-term correction but better off today. i don't really know what the feds should have done. like a fireman started a fire, they burned down half of the town. [laughter] >> what a great analogy. >> let me understand what you're saying, your testimony is that the collapse of 2008, leaving aside freddie and fannie which i completely agreed with you, were badly run institutions specially after they were privatized. >> you say that now. >> your testimony is that the federal reserve created the collapse of 2008? >> my testimony is that the feds created the bubble that let to the crash. they were like -- they took us on a party to the caribbean and encouraged us to drink a lot and then we had a hangover. the reason that it turned into a pa

>> all right. $39,000 in the bank. you can split that with the lottery section and your husband right now. [ indistinct shouting ] >> keep going? one more? one more. we're gonna go one more card. >> one more. she's going. >> one more card. number 1. >> number 1. >> yes. yeah. >> paige... >> come on. come on, paige. >> ...what is behind number 1? >> hey! [ cheers and applause ] that's $45,000. >> all right. i know. you can split that right now. i know. >> there are three good cards and two bad ones. >> right. you are two propertrtsets away from $100,000. >> i know. i know, i know, i know. >> so, do you want to do that, or do you want to split the money with your section? what would you like to do? >> no, i'm gonnanatop. i'm gonna stop. >> you're gonna stop? >> yeah. i'm just afraid... >> congratulations. >> thank you. >> that's great. okay. >> thank you. >> you are gonna split $45,000 with the winners in the wheelbarrow sectioio but i don't let anybody off easy, so i want to know, what would you have picked? what would y

you said the prospect of banks -- how much do you worry about how much bad stuff there is on the balance sheets of chinese banks? >> i think anytime you have had a sharp increase in credit growth as you have in china and non-japan asia, one can expect there will be an uptick in nonperforming loans. we have not yet seen that. the increase in private credit, the increase in aggregate credit in china has doubled to more than two times gdp over five years. as the economy slows and is normal growth slows in china, to put a figure on that, chinese nominal growth was about 20% in the immediate aftermath of the crisis. it has slowed to about 6% at present. the debt dynamics get more difficult. one would expect there would be an increase in nonperforming loans and banks would have to adjust to that. >> do you think they are measuring it correctly? >> the issue with nonperforming loans is they have to start nonperforming before you measure them. it is more prospective than actual. i would underscore chinese banks have a strong capital position. chinese authorities are aware of the risks and would

he said the prospect of banks -- how much to worry about how much bad stuff there is on the balance sheets of chinese banks? >> i think anytime you have had a sharp increase in credit growth as you have in china and non-japan asia, one can expect there will be an uptick in nonperforming loans. we have not yet seen that. the increase in private credit, the increase in aggregate credit in china has doubled to more than two times gdp over five years. as the economy slows and is normal growth slows in china, to put a figure on that, chinese nominal growth was about 20% in the immediate aftermath of the crisis. it has slowed to about 6% at present. the debt dynamics get more difficult. one would expect there would be an increase in nonperforming loans and banks would have to adjust to that. >> do you think they are measuring it correctly? >> the issue with nonperforming loans is they have to start nonperforming before you measure them. it is more prospective than actual. i would underscore chinese banks have a strong capital position. chinese authorities are aware of the risks and would take ap

also the prospect of banks inside china. worrying about how much bad stuff there is on the balance sheet the chinese banks? >> anytime you have had a very sharp increase in credit growth, and more broadly in non-japan asia, there will be an uptick in nonperforming loans. we haven't yet seen that. the increase in private credits in china has doubled to -- in e lastive years. particularly normal growth in china let's put a figure on apps chinese normal growth was 20% in the immediate aftermath of the crisis. he went to just above 6% to present. 1-wood expects that there would be an increase in loans. and banks would have to adjust to that. the issue is the have to actually start nonperforming. it's more perspective than actual. chinese banks have a very strong capital positions -- the chinese authorities are aware of these risks and take appropriate action. of adjustments and that process through the financial sector is one of the reasons growth is slow. comee there any emerging -- other countries are worried about? issues acro

it is all about overhaul at the bank. it is a familiar story. the world, it comes home to roost in italy. we take a look at what is in store after this short break. ♪ unicredit's earnings are due out in just over an hour. the italian lender is expected to announce job cuts. martinuzzi.o elisa great to have you with me. talk me through unicredit. you and i cover a lot of these banks. here we are. it is coming home to roost at unicredit. >> that's right. much like the other european banks, one of the measures that unicredit will turn to to improve profitability will be job cuts. we're hearing that the numbers could be in the range of 12,000, up to 9% of the workforce, and investors will probably be looking for other measures on how unicredit is going to the grappling with the interest rate environment which is pushing lenders to think about doing things differently. you know this bank well. where's the emphasis on the review? it is about building capital. which profit areas do you think it is going to build up? what do you think is going to come t

aboutample, if you think the chinese banks. they have been lending money to companies that have borrowed in dollars. currently appeals are one for 4%. -- r 1.4%. they are worse than two dozen eight. into the snake, they were 7%. -- in 2008, they were 7%. the region is that of an hurt the most are the two to that's tierhe tier two -- are the two, three, four. jonathan: after the break, were going to talk about banks. tom: there are two international banks. hsbc arechartered and vulnerable. the head of rbs, stays with us. europe's largest bank makes more than two thirds of its profits in asia. hsbc this morning. ♪ jonathan: good morning. welcome back to "on the move." good morning from the city of london. good morning to turkey. a huge move and the turkish lira this morning. dollar try down -- the biggest move since 2008. it's a straight to your bloomberg top story. in a surprise when, turkey's ak party has swept back into office. took 49% of the vote. it will regain the parliamentary majority in lost five months ago. data and chi

lve into the deeper. his bank outperformed other competitors this year. ♪ manus: welcome back to "the bloomberg tv, streaming on bloomberg.com, your tablet and your phone. mark carney says britain should ready for a rate increase in 2016. in an exclusive interview with bloomberg, the central bank governor says that's prudent behavior. given the progress of the u.k. economy. governor carney: forward guidance initially was very much about early stages of the recovery and what are the minimum conditions required before we would even begin to think of raising interest rates. it is interesting. if you look at the historic reaction of the bank of england, given the strength of the initial recovery 2013-2014, the strength of purchasing managers indices and the growth, historically, the bank of england would have raise rates three times. it would have revealed outcomes that would not have been the right thing. but it was partly binding the hands of the committee to say let's see what the attraction is in this recovery. le

but if the bank refuses to repeat so it is able to maintain this the whole -- and also requires the banksre in boston pushing for a bill through the municipal authority that will allow musicality is to control and dimbleby is cities and neighborhoods. i am the mother of two young children. so i have to be very careful if i want to remain inactive participant because if i don't come i cannot chaperone? i do talks - - american culture limo laziness schools countersigned told the shy. in begin by giving your name. >> my name is very. end and i really enjoyed the presentations that may help to clarify because i am not sure everybody here --. hagen to your thought. >> review and direct action limited to talking. >> my name is billion so i do remember in the '80s there was a movement that the college against apartheid in selfie africa. it is hard to get the -- visualize now but there was as many 5,000 people in south africa. they say there's numbers in a string if you want to accomplish anything, apartheid was put out of business so to speak. it ended that part so i don't say that was and when

in the others. that bankshave to raise more debt that could be used to bail the men, the implication there is they will have to to that so the government will not have to come in. there is less benefit than any. did he have any solutions on how true fix that in the financial markets? gok: as far as shadow baking -- shadow banking goes, no, we did not get to that point but the answer is it needs to be regulated. there is nothing wrong in principle with the kinds of things lending club is doing, modelng a very low touch and some of them are working with banks, that banks and that owning on balance sheets perhaps syndicating and securitizing. there is a symbiotic is there but a lot of origination is happening outside the eyes of regulators just as it did in the mortgage factory, crummy loans. ultimately, i'm not saying it is exactly the same thing that the point is not all that different. scarlet: we need to go back to the financial crisis the civic late. he was right there, he felt it. what did he say was the bi

the bank of japan is interesting. they are in recession. you are much more likely to find yourself in recession. is it a big deal? probably not. the fact is, inflation will pick up slowly in japan. that is due to the effect of oil. inflation is still below target. guy: do you agree with that? will he fed have to be talked out of it? >> that is a good way of putting it. the measures he is likely looking at is not headline inflation. excluding food, which is not current at all. it does exclude food and fuel prices. trajectories are upwards. the ecb is going to and he will have to follow suit. he will have to allow it to fall and perhaps, push it even lower. guy: the boj will perhaps go big. the spread is widening. some of the market is already priced in. we underestimating how big that spread widening will be? >> it depends on the trajectory of the rate hiking the fed puts in place. the fundamentals beneath it suggest that the widening could be why do. the fundamentals are the u.s. economy uniquely. there is no new normal for the u.s. economy.

and the prospects of banks inside china. how much do you worry about how much bad stuff there is on the balance sheets of chinese bangs? >> anytime you have a sharp increase in credit growth as you have in china, and non-japan asia one can expect at some point there will be an uptick. we have not yet seen that. the increase in private aggregate credit in china has doubled in the last five years. as the economy slows, as normal china, let's put a figure on that, chinese normal growth was 20% in the immediate aftermath of the crisis. present.at the one would expect that would be an increase in nonperforming loans and banks would have to adjust to that. is they have to actually starred not performing before you measure them. it is more prospective than actual. chinese banks have a strong capital position. chinese authorities are aware of these risks and will take appropriate actions but there is a process of adjustment. >> are there any other emerging countries you are worried about? >> there are a series of issues across latin