the u.s. banks had to get out and the canadian banks had to work something out. we see in the caribbean, the canadian banks are still prevailing specially in former british colonies of jamaica, et cetera, et cetera. the retreat from caribbean, though you see citibank returned to haiti after many years, the larger legacy was less of the actual presence of wall street and of u.s. bankers in the caribbean than their understanding of what this history meant for them to the present and if you look at the kind of corporate biographies of citibanks, you understand that they looked at the 1920's and -- 1910's, 1920's of expansion when they were able to create new financial institutions and financial instruments that would -- were largely unregulated by the government and go out into the world and make money as they wanted to. after the 1930's, they were restrained. what you see in histories of citibanks, you need to get back to this era of unregulated expansion where you can collapse investment functions and move across national boundaries and where we can basically do wh

the p.r.a. supervisors to banks. d what that's for is to address tail risk to the economy, not central expectations. likelihood is that we have a relatively modest recovery, one matching the growth of supply and that it's principally driven at least initially by investment and net exports and a consumer that's consuming out of his or her income as opposed to borrowing. >> what about complacency, one of your officials, you flagged it as a danger before. mr. carney: first off, you're not quoting me in that line and secondly, the issue that we have, and this is now we're moving quite a ways away from monetary policy because this is not what's driving the economy. i'm going to say that again. this is not what's driving the economy. it's an issue for a subset of borrows and a subset of lenders, the percentage of vulnerable consumers, consumers who have debt more than 40%, debt service requirements, more than 40% of their income is one and a .25%, it was 2.5% five years ago. so again, we keep it in context. the complacency

not the bank of england. times on their cover today with all of the news in washington shows prince philip at 96 in his last public visit. i thought this was quite something, as well. francine? francine: a day late for this one, "the new york times." we did cover it quite significantly yesterday here. and anythingg fx to do with gilt, anything like that. what does it mean for pound? if we have no change today, is it an end for the pound bulls? correlations the between the pound and the u.k. data, the correlations have fallen off a cliff. the narrative on sterling is very much about the brexit negotiations him of the top of transition. does today's meeting really matter for the overall trajectory of sterling? i don't think so. given the slowdown in growth momentum we have seen into today's meeting, the market is probably looking for a dovish vote. why not hike today, mike? mike: realreasons -- income growth is negative and the savings rate is that a 50-year low. you are piling pressure on to an already constra

the message out of the bank yesterday was gloomy what we did see from the royal bank of skocotland was that the net income margins were squished, but they perpetuated growth on the mortgage side. i asked how that outlook for the uk economy was in general. >> if you look at our payment trends in the first half, they appear to be benign. we are cautious. we look at consumer trends it feels like the growth in consumer credit, poor savings rate, decline in real wages all point to future issues regarding consumer commentary yesterday >> has that altered your assumptions built into your molds going forward? >> if you look at what we've been -- where we've been positioning our loan portfolios recently, we've been prioritizing secure mortgage lending for sometime over unsecured. we've been cautious on where we want to lend to in commercial. for example, commercial real estate is somewhere we have been cautious on. >> that was ewen stephenson talking to me. capital was stronger, beat expectations cet coming in at around 14.8 >> that's a really strong number >> it is the jump from 14.1 last time

should the bank of england be hiking rates? look at the blue it shows there was an opportunity when the economy was doing very well in 2014 and 2016 to start the normalization process. the white line is telling you the consequences of failing to do that. borrowing is expanding rapidly. of financial stability side the bank is sending messages to the prospect to stop lending. the best way to send a message to the public to stop borrowing is to see interest rates. problem -- vase -- very senior guyana bank of england, executive director, gave a speech where he said borrowing is going to fast. the london they were not doing about it is raising interest rates. he would say he is not a monetary policy committee but his boss is. he has not voted for any rises in interest-rate spin. the bank of england may look 2014 to 2016s from and regret that it did not take advantage of the opportunity to start the process and raise rates. vonnie: what will it do for the economy where employment is not strong enough. we know there is a lot of uncer

the community served by these ll banks. i hope my colleagues are acutely aware of the consolidation community banks that they understand what we are talking about here. here. mr. quarles lobbied the government so his employer can invest in deals for the yes he would take on all the risk private equity investors would reap all the benefits in the future the community banks involved was merely an afterthought and that worries me in the context of some of the comments you and i discussed yesterday about your views onors regulatory oversight changes in regulatory reform, changes in the wall street reform that came in the aftermath of the world's worst -- the nation's worst financial crisis where we were told by the vernacular of the global financial meltdown.an and so i worry about that. mr. otting come i heard thenc answers you gave to senator tester and mike secretary minetd chinned -- mnuchin, there's contrary facts.. let me ask you something else. did one must engage in dual tracking, offering a struggling homeowners the hop

the great bank holiday getaway is on and there are more problems than usual. expected to add to the disruption. london's euston station — one of the main lines into and out of the capital — will be completely closed over the weekend. there's also disruption on routes serving london bridge, london liverpool street, cardiff and bristol. adina campbell is at euston station and dan whitworth is on the m6 motorway near knutsford. deli. well, you only have to look behind me to see just how busy it is here at euston station tonight. hundreds of people packed out under those information boards, hoping to get to where they need to be over the bank holiday weaning. this, of course, because of this major enfwleerg project which starts tomorrow. it'll close euston station for two days, it is a multi—million pound project costing more than £130 million, involving 17,000 engineers. they will be extending platforms it make way for longer trains and also making improvements to signalling and tracks, as well as preparation for hs2. this will mean major disruption for passengers

tonight at ten: the bank bailed out by the taxpayer — now a damning report accuses royal bank of scotlandf the systematic abuse of many of its business customers. it reveals how businesses in trouble were deliberately mistreated by the bank — rbs has set aside hundreds of millions of pounds for compensation. it was like the gestapo walking in, their aggression, their divisiveness, the whole way in which they'd talked. rbs — the biggest business lender in the uk — has apologised for some of its practices but denies systematic mistreatment. also tonight: police in brussels shoot dead a man who attacked two soldiers with a machete — it's being treated as a terrorist incident. hurricane harvey gathers strength as it heads towards texas — it could be the biggest storm to hit america in more than a decade. riots in india after a self—style spiritual guru is convicted of rape — at least 28 people die as his followers go on the rampage. the driverless cars being deliberately crashed as insurers try to work out who'd be to blame in an accident — the motorist or the computer? and one of the most hy

i will ask, what is next for the bank? is is bloomberg. ♪ vonnie: live from bloomberg world headquarters in new york, i am vonnie quinn. mark: counting down to the european close in roughly 20 minutes time. facing an uncertain future, bill winters's overhaul of the bank is in its third year. they reported second-quarter earnings yesterday. shares falling for a third straight day, even after reported revenue gains. joining us now for an exclusive interview to explain what is going on at the bank is andy halford. make sense of that 6% drop yesterday. andy: one needs to see it in the context that the share prices went up sharply in the five weeks before that. actually, even at the end of yesterday, a 6% fall, the share price is up 20% on the year so far. s ebbs and is absen flows. some are exporting a dividend, which we said, not yet. overall, the progression on the share price has been pretty strong this year. yesterday, clearly, it came down and corrected to some extent. mark: give me probabilities. below 50? andy: 100% it w

, the royal bank of scotland, which itself had to be bailed outs been accused of systematic abuse of its customers. a leaked report by the financial conduct authority seen by the bbc says it mistreated almost all of its customers, with 92% of viable firms experiencing "some form of inappropriate action" by the bank. one small business owner has told the bbc he considered suicide. rbs denies the allegations. here's our business correspondent joe lynam. it's britain's biggest lender to businesses, its customers are the backbone of our economy, but a major report has highlighted the scale of mistreatment faced by some at the hands of rbs. tunbridge we opened in december ‘98... tracy standish used to own bowling complexes and had been an rbs for decades. when profits fell during the recession, his bowling business was placed into rbs‘s restructuring unit, grg, supposedly to get the company back on its feet. it was like the gestapo walking in. the aggression, the divisiveness, the whole way in which they'd talked. they would bang tables, shout, point f

the financial crisis. but instead of helping them their bank, the royal bank of scotland, has been accused of systematicallyof them. a leaked report for the financial conduct authority and obtained by the bbc reveals the extent of that abuse. it shows that hundreds of companies which the bank said needed restructuring were treated inappropriately, in many cases deliberately. 0ne business owner has told the bbc he considered suicide. rbs denies the allegations. we bailed out rbs when it was in trouble, but when thousands of its business customers got into difficulties, the bank, in many cases, was much less generous. the uk's biggest business bank has admitted that it mistreated many small firms, but now we have learned about the scale of this mistreatment. tracy standish was the former owner of the bowlplex chain and had been an rbs customer for decades. tunbridge we opened in december ‘98. when profits fell during the recession, his bowling business was placed into rbs's restructuring unit, grg, supposedly to get the company back on its feet. it was like the gestapo walking in. their aggression, their divi

may and canadian banks one of the things i found in my research was the canadian banks even the bank of nova scotia or montreal where the biggest competitors to u.s. institutions of the 20th century. through the rope baying of canada there also for competed for deposits and when the of cuban revolution there was a negotiated settlement on behalf of the canadian banks. soap there still prevailing. with a retreat from the caribbean and in returning to haiti with that actual presence so with their understanding of what this history in some places. looking at corporate biographies looking at the 1920's or early '30's that is a glorious period of international expansion to create new financial institutions so to go out into the world with the new deal banking legislation. to give back to the era of unregulated expansion wary we can move across boundaries with those pesky sovereign caribbean nations the other is a sense of wanting to move back into those markets and with that branch expansion into the caribbean of offshore investment vehicles. >> the bank of nova scotia that is like h

even the bank's own staff are unhappy about wages. n pay starts to catch up with prices that we may see interest rates rise. that's not expected until next year. one of the most seniorjudges in britain says society will have blood on its hands if a 17—year—old girl, who's tried to kill herself several times, is released from custody, without adequate supervision. the president of the family division in england and wales, sirjames munby, says it's disgraceful that it's been so difficult finding suitable provision for her when she's released in 11 days time. nhs england says it's making every effort to find appropriate care. our home editor mark easton reports on a case, which highlights a crisis in mental health provision. "a disgraceful and utterly shaming lack of proper provision for young mental health patients in england" — the words of one of england's most senior judges, sirjames munby, head of the family division. he issued an extraordinary statement after being unable to find any suitable hospital bed for a suicidal 17—year—old

and the bank's less optimistic. ous forecast in may, it said total uk production would grow this year by i.9%. that has been revised down to 1.7. the rate at which prices are rising, inflation, it sees as peaking at 3% in october, before falling to 2.6% in a year. today's report is sifted through for signs of how the governor, mark carney, and his team think we are doing in the wake of the financial crisis and with the uncertainties of brexit hanging over the economy. financial markets, particularly sterling, marked down the uk's relative prospects quickly and sharply. households looked through brexit related uncertainties initially but, more recently, as the consequences of the fall in sterling have shown up in the shops and squeezed real incomes, they have cut back on spending, slowing the economy. their own no clear answers. will be uk being good enough shape to withstand a rise in interest rates from the bank in a few months next year? some say that's what we have to be ready for. in truth, nobody knows. let's sp

the bank left interest rates unchanged at 0.25%. mark carney outlined how he saw the uk economy. given the outlook for supply in the economy, even a limited pick—up in growth is likely to have consequences for the stance of monetary policy. that is because, as the mpc has previously emphasised, the mpc has previously emphasised, the process of leaving the european union is beginning to affect potential supply in the uk. brexit related uncertainties are causing some companies to delay decisions about building capacity and entering new markets, and the uk ‘s eventual new markets, and the uk ‘s eventual new trading arrangements will require a period of fully allocation in some sectors of the economies expand and others contract. moreover, prolonged low investment will restrain growth in the capital stock and increases in productivity. indeed, if the mpc ‘s current forecast comes to pass the level of investment in twenty20 is expected to be 20 percentage points below the level which the mpc had projected just before the referendum. as a

today is super thursday at the bank of england. ll take you to all the nuances outside the bank of england. is mervyn king and carney. these are the periods of time. look back to thousand 5, 2006, when you had this momentum move 2006, when you had this momentum move. they think august is live. "a slow-motion downturn rather than a cataclysmic drop." the pound, if you take all of that in conjunction, the pound has had a run. the dollar weakness, not so much. the sterling strength. up to present on cable. this is the bloomberg british pound. we are in this band with anxiety. what does it take to get the pound to move distinctly in one direction or the other? isxit anxiety risk dissipating. the spreads are down. what is it that makes or breaks the next move on sterling? guy, i am off to digital radio with carolyn hester. matt: i wanted to take a look at some of the winners and losers on the stoxx 600 as far as company names. if you break it down into in this point, you see hsbc as the on the stoxx 600. i believe this is one you ex-divv

fca said: for the bank, which is 73% owned by uk taxpayers, the fca said: for the bank, which is taxpayers, this is yet another obstacle on the road to full health. being accused of wholesale mistreatment of its own customers may delay that rehabilitation. millions of people have been on the move for the traditional bank holiday getaway. but there are more problems than usual because of major engineering work planned on the railways over the weekend. the south—east of england will be badly affected with station closures at charing cross, euston and liverpool st, and limited services from others. and in the north—west england engineering works will affect stations in manchester, preston, blackpool, and bolton. a former rock star jailed a former rock starjailed for multiple counts of child abuse could have been caught earlier if investigated properly. the lead singer of the band, lost prophets, was jailed years ago. but an investigation by the independent police complaints commission found that south wales police missed a series of opportunities to stop him. our wales correspondent,

earnings crossing the wires from standard charter. emerging market focus bank underlying income of 7$7.2 billion, up 6% year-on-year. underlying expenses of 4$4.8 billion, up 5% year-on-year. first half eps, 29.2 cents the net profit of 1$1.2 billion i'm looking at the pretax profit of 1.92 billion. that seems to be a little bit better than expected looking at a deutsche bank forecast so that seems to be a bit better than forecast. the underlying basic earnings per share of 34.4 cents, it says it is on track to deliver an additional 7$700 million in planned gross cost efficiencies in 2017 and 4$400 million in 2018 the underlying return on equity 5.2%, up 5.1% in the same period last year. the board has decided not to declare an interim dividend on shares this was in line with expectations the board will consider at the end of the year whether it is appropriate to recommend if the balance sheet quality has improved in terms of some of the commentary, saying the economic environment has shown signs of improving, though geo outlook remains uncertain. the group is

the bank of england flagged it. ear to you, manus, that it was expected to go up in the future, but right now, looking for signs in weakness in the consumer market. it is benign at the moment. the competition is so fierce. the markets is a horrible place to be. consumer credit, you have the credit cards, pcp, small for them, bigger for lloyd's, competition is not going away. as people are growing ingressive in this environment, you question why, and in you know it is because there is a bad debt around the owner. i will be interested in what they do. these are all problems that are not going away. manus: that was the line -- we chatted about this. economy is brittle, but it was a warning shot from the bank of england. anna: eyeroll. manus: what lenders are in the spiral of complacency. it is a cliche, but what did you make of this? jonathan: what i think was interesting as there were very clear winners and losers. there are still problems. at the french, which should be at a sweet spot. anna: it is not forming on the

the great bank holiday getaway is on — and there are more problems than usual. he railways is expected to add to the disruption. london's euston station — one of the main lines into and out of the capital — will be completely closed over the weekend. there's also disruption on routes serving london bridge, london liverpool street, cardiff and bristol. motorists have also been advised to expect longerjourneys as people take to the roads instead. adina campbell reports. with the queues building here at euston station, it is set to get even busier as millions of us prepare to travel over the bank holiday weekend. this station will completely close from tomorrow, affecting passengers up and down the uk, with no trains to london from the west coast mainline. there's never an ideal time to carry out these railway improvement works, but we carry out 15,000 projects every year, and most of those happen overnight. during bank holidays, fewer people are travelling and we can deliver much bigger projects for passengers. this will be the biggest ever august bank holiday engi

the bank cut its growth forecast for this year from 1.9% to 1.7%. downgraded its estimate for the next year from 1.7% to 1.6%. meanwhile, it pushed up its inflation forecast, saying it will rise from 2.6% now to peak at around 3% later this year, while wage rises remain stuck at 2%. that widening gap is being felt in margate. the price of food has definitely gone up. butter, cheese, bacon, those things have gone up. and yeah, wages aren't going up in line with inflation. bus, transport, everything is so expensive now. i drive now and even then, car insurance has gone up. it's getting ridiculous now, £140 a month. can't afford it. for the same amount of money, you're getting about two thirds of the goods that you used to, so you're cutting back all the time. in another year's time, i'll be sitting here a litle skeleton. brexit was the theme that ran through everything the governor said today. the post—referendum fall in sterling has pushed up prices. that in turn is affecting consumer confidence, and businesses faced with uncertainty are not making t

the recapitalization of the italian banking sector. that growth is on a much firmer footing across the and will see continued growth in consumer confidence. manus: stephen, thank you for being with us this morning. callsup next, kim jong-un the latest testfiring of a missile over japan yesterday a meaningful prelude. what next for tensions in the region? this is bloomberg. ♪ manus: a meaningful prelude. missilejong un said the firing was a step toward containing the american territory of juan. -- guam. costs.merica counts the have -- epicat what happened. it happened in texas and texas can handle anything. may's charm offensive. visiting japan n/a search for post-exit trade deals. backing macron. the french president macron is delivering on later reform despite a drop in the polls. this is what we need for the business, for the economic recovery. ♪ you are welcome to "bloomberg daybreak: europe." in00 and 8one germany. yesterday was a fascinating session. we saw steep losses and we saw a rally in the u.s. session later on in the day as

of england decision, the central bank expected to leave rates unchanged. james, thanks for joining us. june was exciting. it will probably be less exciting. the score tomorrow, wanted? >> i think so. the two dissenters that remain on the committee from june continuing to vote for immediate rate hike but noted new members joining them. markets will be watching closely how they indulge. our expectation is they stand out as well and we deliver 6-2 on change rates. vonnie: we haven't -- mark: we have a chart that shows the probability of a rate hike. a couple of weeks ago it was much higher than it was. it has come down one month ago, the orange line. the white line is right now. we knew come down from 70%, to just above 50% -- when it comes50% to the probability of a rate hike this year? first quarter of 2018 is when he thinks the eob should raise rates and not end brexit negotiations. wait longer.to we don't think rate hike this year will be prudent. thus far pretty weak growth. part of the business sector struggling too. t

banks. you look at the fed, the european central bank, the bank of japan, another big central bank that is watchings the people's bank of china. as to the federal reserve, we have seen a rally and bond yields that is push the yield on the benchmark tenure down to its lowest level of the year. north korea and missile strikes, did axed income team story today talking to people saying actually it is still the federal reserve that is behind this. there is more and more doubt they will be up to make one more rate increase this year. >> follow your bouncing cursor and look at this number. no chance at all of september or november, but even december the odds were over 60%. just a couple of months ago, it's down to 30%, around 29% or so and that's because inflation is lagging. fallen away from target and we will get another reading on inflation this week, on thursday, jobs on friday. i'm talking about the pce in the pce core. looking for the pce core to fall , it wasaugust, 1.4% supposed to be going back toward 2%, and it is not. up 180,000, in july it was up 200-9000. bottom line, if you have inflation pu

what about the banks? ese big four reporting later. >> that is the sector where people have the most questions. they are still underway china, but particularly chinese banks. they are reporting today. we are more bullish than consensus. 5%, 6% epsxpects growth for chinese banks. we would be close to double digits, particularly factoring in the currency translation side with the strength in the renminbi. so we are between the big sectors, i.t., financials overweight, but there is still plenty to play for on the china banks. we have 20%, 30% upside on our target price. rishaad: what will you be looking at when earnings come out? how bad the nonperforming loans side of things is, or other fundamentals, which can be encouraging, dividend return on equity, that sort of thing? particular, we are slightly more bullish than consensus that chinese banks have worked through a large portion of the npl's they had accrued 2011-2015. as you come down the other side of the hill as it were on npl's, earnings will recovered

the bank of england cuts its growth forecast for the uk economy and leaves interest rates unchanged. the governor was also downbeat about wage growth and the impact on families. as the consequences of sterling's fall have shown up in the shops and squeezed their real incomes, they cutback on spending, slowing the economy. also this lunchtime. a seniorjudges condemns as disgraceful the lack of support services for young people with mental health problems, and says the state could have blood on its hands. mental health patients are waiting up to three years to be discharged from hospital, even when they're medically fit to leave. i used to see other people leaving before me and i'd be like, yeah, but i've been ready a long time and i'm more equipped, but they seemed to get out quicker. five weeks into a bin strike that's left rubbish piling up on the streets of birmingham, we meet the volunteers taking matters into their own hands. feeling the heat — emergency measures are put in place, as temperatures hit record levels in many parts of europe. aiming to be a roaring success — england'

campaign, before now it wasn't the vtb bank, it was the veb bank, another gigantic bank, met with whosedpicked chief executive met jared kushner during the presidential transition, which kushner never reported until it made its way into the press. veb is also the bank that had a rank of russian spies out of the new york city office. or spy ring that just happened to target and recruit trump campaign foreign policy adviser carter page. so there's vtb bank, there's veb bank, both sanctioned by the u.s. government for their close links to the putin regime, both of those banks inexplicably tied up with trump campaign figures. another u.s. sanctioned bank close to putin, which is the bank that decided to hire donald trump's top russia lawyer to work for them on a legal case in new york this spring. really, of all the guys? and before all that, there was alfa bank, another big russian bank linked with putin. but alpha bank is not sanctioned by the u.s. government. in fact, they're trying to become a big business in the west and in the u.s. to give a little brand distance from their russian or

the community bank in the fourth quarter, i can leave a chart to show that. al drop in profit and that community bank, which is always been a strength for wells fargo. that was the quarter right after we first learned about the sale scandal. nejra: technology plays a big part in this as well, doesn't it? laura: exactly. that's a way that banks can look at cutting costs. if they are able that customers not deal with that heller who they have to pay on an hourly basis and do with this preferred atm's, that's a lot cheaper. nejra: what does that mean for headcount if they are encouraging customers to use tablets? is wells fargo cutting headcount across community banks? laura: that was one question that we talked to mary about and asked her, houses working if you're cutting branches any of cut 88 so far this year, faster than any of your competitors? does that mean we will see the frontline staff leaving the bank? what she told me is that actually know, they have been able to keep that down. only 10 people, fewer than that have lost their jobs as part of this resh

the u.k.'s biggest banks rigged libre rates the daily measure showing the interest rate at which banks can lend to one another the lawsuit brought by the federal deposit insurance corporations high court claims that each bank defendant had a common financial and profit based incentive to collude to lowball us dollar library submissions and in turn to cause us to live or to be lower than it otherwise would have been this in turn increased profits now the f.b.i. see which bailed out a number of these affected banks during the financial crisis points the finger u.k. giants including barclays lloyds banking group and royal bank of scotland the claims on behalf of thirty nine american banks it's part of a much broader rigging scandal which came to light back in two thousand and twelve joining me now. now from london steve keen the author of can we avoid another financial crisis and the world's first crowd funded economist at page tran dot com steve thanks for joining me now let's talk about this case do you think the u.s. government actually has a solid case here. or has a rock solid case this is a

there's no need for the bank to move. it would be risky for them to d so when consumers are under such pressure. i don't think there's any prospect of them doing something today. >> they do nothing. the prospects for inflation are steady enough. if we look at expectations for the marketplace, this puts together everybody's forecast a huge number of markets forecast, you're in there, john. won't embarrass you for looking at the u.b.s. number. i want to go for the bloomberg weighted average which is 1.31 by the end of the fourth quarter. getting up to 1.51 by the second quarter of next year that trajectory for, giving everything you've said is that a fair representation? >> i won't disown our own forecast, we're slightly lower than that, but the direction of travel is correct. yields have clearly been rising. they're likely to rise further. this is more a global story. other central banks we know are either in the process of addressing balance sheet reductions or getting close to doing that in the case of d.c.b. and therefor

you can't just pay the bank. you send your check to the trustee.r bills and makes sure everything's taken care of, and we do that for five years. >> and when that's completed, the debts are gone. again, it's a new way to start your life. >> i was offered but did not declare any of my credit cards or other items that i could have put into the bankruptcy. >> they were also able to get a federal court-ordered mediation and a loan modification. so, what does that all mean? it means that you go with a group of people -- a representative from the lender; a representative on your behalf, in this case, the bankruptcy lawyer -- and you try to figure out if you qualify for a loan modification. the lender looks at all of your financials, and then they decide if there's enough of a hardship. i believe we know in this case surely there was. what is your message to those people that are still going through this in america? and they still are. what is your message? >> you don't accept what's being told to you. you keep fighting. >> if things change and you can't

in iceland, they let the banks go bust and jailed the bankers. we put billions into our banks. he financial system down with it. too big to fail, remember that from the town. this text, the crunch became apparent in 2007 with northern rock, widened the regulators do anything until the bailouts a year later? that is a good question. in september 2007, northern rock got into trouble. it was one of these situations where people weren't quite sure just how big the problem was. it was a florida problem, what northern rock was doing was lending people lots of money, but not out of the deposits they had from their savers. they we re they had from their savers. they were renting money from third parties to lend on ad very aggressive rates. theirs was quite a racy lending model, maybe it was just them. bit by bit, the chancellor of the exchequer at the time was talking to the bb c. alistair darling, he was interrupted ina alistair darling, he was interrupted in a meeting by the chairman of rbs and he said, we are in terrible trouble and haemorrhaging money. he said, we have a plan for th

the e.u. a deutsche bank official declined to comment. ezuela are losing their resolve amid sanctions turkey government officials and power grab my president maduro. the country's bonds have lost almost 1/5 of their value in the past two weeks on speculation washington could impose further sanctions that would cut off oil revenue two countries -- to all of the country's income. global news powered by more than 2700 journalists and analysts in more than an hundred 20 countries. this is bloomberg. guy: apple shares set to open higher, possibly later today. the market is waiting for that. apple says revenue would be at $49 billion to $52 billion. that eats expectations for joining us now, bloomberg's tech reporter. i am curious. i have a stock price that tells you apple will be opening up in record territory. it will be up 6%. i am looking at what we have just seen, and i'm scratching my head to see what is important about the quarter we just had. i know the next quarter will be important, so what is it that has got the market so excited? ada

the bank of england is not the only central bank concerned about this. ook at canada, switzerland, australia, new zealand, you name it. these countries are worried about the level of household debt. the reason for this is that interest rates have been very low and property prices have been fueled higher. people have to take on more debt. there is a concern that people on the margin, those most likely not able to afford those payments, they will get burned. the banks are concerned. they are likely to announce more macro potential measures to curtail lending. if we look at some data, we see consumer borrowing at the highest levels since the 1960's. there is a concern that consumers throughout the u.k. will see real wages eroded and will not be able to borrow more to support consumption. and we already have record high debt as well. it's not a very good outlook for consumers at all in the u.k. francine: what does this mean for gilts? >> the gilts will not move far from where they are at the moment because there is a lot of uncertainty for the bank of england

the amount of treasuries owned by foreign central banks and held in custody at the federal reserve bankark for example dropped to $3 trillion last week. today fed watchers will be watching the refunding announcement and could provide guidance on how the debt ceiling and balance sheet normalization could affect the yield curve. let's get back to paul donovan and kit juckes. kit, do you worry about the debt ceiling, or just about the fed? >> i worry about the debt ceiling if it gets in the way, if it becomes some kind of protracted, big, ugly fight that affects fiscal policy. there is a lot being invested in the idea of sfiscal policy from the united states. if the debt ceiling gets in the way of that, then the fed's the only game in town. that becomes more important. francine: so, the fed is watching this, paul. let me bring you over to my chart that hillary clark kindly added. hillary added the swiss national bank. does the fed look at the debt ceiling? >> i think it has to. it does have a bearing on at least near-term economic performance and some inflation pressures. if you are gettin

overhaul of the bankrative. he sounded caution about the company's growth prospects. shares falling for a third straight day even after it reported revenue gain. give me probabilities? 50, above 50, below 50? >> well, 100% it will be reviewed at the end of the year. two things are important for us. one is we are comfortable that there is a profit stream and earnings stream which is going well. we announced nearly doubled profits. the second one is making sure there is enough captain no banks who have been paying regular dividends. our situation is a little bit different. we did stop paying the dividend a while ago, and the decision to recommence it, and when we make it, we want to confidently ay it going forward. >> they raise it. business is broadly stable in 2017. the pharmaceutical's firm earnings beat in the second quarter, and the sell of older vaccines and m.s. drugs previously had been expected to roll over. my question really is how do you keep the momentum going, and will the newer drugs help you

and the bank's less optimistic. previous forecast in may, it said total uk production would grow this year by 1.9%. that has been revised down to 1.7%. the rate at which prices are rising, inflation, it sees as peaking at 3% in october, before falling to 2.6% in a year. today's inflation report is sifted through for signs of how the governor, mark carney, and his team think we are doing in the wake of the financial crisis and with the uncertainties of brexit hanging over the economy. financial markets, particularly sterling, marked down the uk's relative prospects quickly and sharply. households looked through brexit related uncertainties initially but, more recently, as the consequences of the fall in sterling have shown up in the shops and squeezed real incomes, they have cut back on spending, slowing the economy. there are no clear answers. will be uk be in good enough shape to withstand a rise in interest rates from the bank in a few months or next year? some say that's what we have to be ready for. in truth, nob

we will leave the governor of the bank of england there, mark carney, on the day that he and the banked to 15 years byjudges at the court of appeal. he was sentenced in may after being convicted of performing unnecessary surgery on ten patients. in the last few moments the solicitor general has been giving his reaction to that increase in the sentence. throughout our lives we are expected to, and we have a great bond of trust with our doctors who care for us. for far too long this offender, paterson, abused that trust. he abused it in a grotesque way. by winning the confidence of vulnerable victims and then systematically mutilating them on the operating table. today's hearing in front of the court of appeal, i think, hearing in front of the court of appeal, ithink, has been hearing in front of the court of appeal, i think, has been a ringing endorsement of my decision to ask for this sentence to be reviewed. the substantial increase in the sentenced to 20 years sends out a clear message to the wider community that our system will not tolerate such egregious breaches of trust. i very

you need more than the 2% who move their bank account every year. the 2% who move their bank account or 20% of searchers, that would be enough to make the bosses pay attention to this and focus on the customers, rather than the bank. your bank along with many others are known as challenger banks. you are trying to change the big five. switching is very important within this context. is any change actually happening? we are doing our bit to drive some change. we have 1000 customers a day moving their account and we are delighted with that. we cannot change and industry by ourselves. we do need the regulators and the competition bodies to pick up and the competition bodies to pick up the ball and make a difference. the report that came out one year ago by the competition and market authority played into the hands of the big banks and they stopped doing anything material. i do not know why we do not send a monthly bill. i do not know quite more do not switch andi not know quite more do not switch and i do not know why the banks are not reminding the customers that they can move without p

in terms of some of the other corporate's to watch, that includes the israeli bank, the largest bank that caters to individual and corporate clients. 14.7 billionenue, shekels. i am looking at how analysts are feeling about the stock. a kind of footprint that gives us a better impression about what is happening with the financials. that's the story here. david: just over an hour away, 9:00 a.m. in dubai, 1:00 p.m. here in hong kong, close to 6:00 a.m. in london we have anna edwards is standing by in london with a preview of what's coming up. early, approaching 6:00 in london. in terms of the agenda, picking up on the geopolitical themes you have been discussing, very relevant to europe. but, activist investment, brexit is also very important today. we have a paper being presented by the u.k. government. ahead of that, we heard from the department for exiting the european union about what relationship they want to see, a little bit more detail. gradually we get closer to what they want. for an association unspecified amount of time. we will discuss that later, and have the former u.k.

banking. that is a real concern. that is right. the to the chinese banks themselves. they have traditionally been very conservative with credit policy. they have really conservative with credit policy. thegifiiavereally— "f" "w conservative with credit policy. theléif‘iatheall-y; 77—77 w, interesting is recent innovations have brought p2p and on line lending companies to these. there have been many innovative solutions up illias fifa be subsidies of alibaba for example. —— solutions. there are new ways to do this. even if banks don't wa nt to ways to do this. even if banks don't want to touch someone without credit history, these p2p lenders have their own models, with social media and data and on line platforms. uber‘s new ceo says he wants to take the company public as soon as 2019. the former head of expedia met his employees for the first time on thursday. he said an initial ipo would take place in 36 months. he also said he would stem the financial losses of $3 billion. we will speak to a reporter now. is that likely? this is still

was the among those bank of the united states, chartered in 1791. it was a commercial bank owned in part by private investors and in part by the federal government. the institution established branches in eight seaport cities and made short-term loans to businesses and manufacturers. it was also the federal governments tank. it paid interest on the national that. it transferred money when the government earned it, which was mostly in the major port cities. the government spent it mostly along the frontier and military forts. as i explained couple of minutes ago, the bondholders lived throughout the country. lentimportantly, the bank money to the government if that's outstretched its current revenue. statesk of the united was a lender of last resort during the financial panic that hit the financial system in 1791 and in 1792. rule, amented a description of the money market. it's a geological term that means originally called. hamilton did not spell the rule out in his. he implemented her quickly in 1792 when he persuaded bankers to lend freely. the ma

controls for four state owned banks the biggest when you control source banks their mega banks among the largest banks in the world they have huge loans outstanding a lot of these loans are in off balance sheet vehicles so they're not really visible on the bank balance sheet this came out fitch analysts did that in that work in two thousand and eleven and that's pretty radical at that time and it's now common knowledge and so yeah so the government says less than one trillion is as bad of this. fitch analysts form of fitch and was done in working in private so that it's actually more like seven trillion dollars. and that would be. like sixty five percent of g.d.p. china's g.d.p. so if you try to fix that in the traditional ways. so. these companies. go bankrupt to default on the loans and for the banks to to take the losses it would not only take down all the banks but probably much of the chinese financial system there's just a huge amount and everybody is expecting this to happen some day. but you know there john has a lot of tools available to try to. to create this fake sense of s

the russia investigation. because, all right, there was alfa bank with the server thing. there was veb bank with the carter page connection and then the jared kushner meeting. sberbank hiring trump's russia lawyer. there's all of these russian banks getting strange new starring roles in american politics. there's another one, alfa bank, veb bank, sberbank and another one called vtb bank. it's a very large russian bank not as big as veb bank but it is very big. vtb pabank is sanctioned by the u.s. government as punishment for crimea because this bank is seen as the russian government. it's an arm of the russian government and that's how the u.s. government views them. in fact if you go to vtb's website tonight, click on about vtb and they'll tell you in exact mathematical terms how they're controlled by the russian government. the russian government owns and controls 60.9% of the vtb bank. the majority shareholder of the vtb bank is the russian government. what that means in plain english is that putin runs vtb. putin controls the bank and what it does and what it spends on

the bank of england cuts its growth forecasts and warns that uncertainty over brexit has hit high—streetpending and business investment. a seniorjudge condemns mental health support for young people and says the state could have blood on its hands over the case of a suicidal teenager. a breast surgeon who intentionally wounded several patients, has had his 15—yearjail term, increased to 20. also in the next hour: tributes to the stage and screen actor robert hardy. he has died at the age of 91. he became a household name in the 1970s with the tv series all creatures great and small and then appeared in the howard potter films. —— harry potter film. on meet the author this week, my guest is the best—selling writer victoria hislop. she will be talking about her new novel, once again set in greece, cartes postales. good evening and welcome to bbc news. the bank of england has said families are facing the worst squeeze on their incomes for more than a century. it has warned of slowing economic growth and rising inflation. the bank's governor mark carney said that uncertainty over brexit was

let's look at the banking stocks in hong kong. given the slight losses, the big four beating estimates, but a mixed bag when it comes to investor reaction. falling almost 2% this morning. earnings watch for sunac. it did jump 10% ahead of results. galaxy entertainment writing after profit beat. we are also keeping and i on cosco shipping after return to the black in the first half. when you look at the rundown for energy, the likes of jumping over 10%. , this stockut jumping the most in's january 2016, leading gains on the hang seng so far today. on the other side, laggards down over 2% this morning, dropping after its results. a last look at the shanghai composite, marginal gains, but telcos leading the drop there. consumer staples of .3%. discretionary stocks marginally higher after galaxy entertainment's earnings. earnings driving the movement we see for hong kong and chinese shares. rishaad: earnings and economic data. well, indeed, let's get to first word news from paul allen. china shows stability with the official factory ga

let's get back to the banking scene. e the numbers from the texas -- natixis. .oining us is laurent mignon the ceo. great to have you on the program. let's start with how well you performed in the bond trading business. my colleague is noting your one of the few investment banks that bond trading revenue in the second quarter. how have you managed to achieve that? laurent: it has been a good quarter for natixis. in the bond trading in the fixed income area we had rising revenues in the second quarter. the market where most of the company had decreased revenues. of a changingon business model, we moved from the traditional house in this business to a solution oriented, client focused house and we have been able to develop a relationship with their clients all of the world from the asian client base to the u.s. and it has been very successful for orders on quarters and this is another illustration of that success. manus: the other side is the investment banking side is doing well, good morning to you. up 20% in terms of net