the etf's container portion of bank debt. we stop buying the etf several months ago but is imported by the etf to jumpstart the general process of restoring the economy which has benefited everyone. >> you said you were -- so the fed could buy bank debt a loophole on bay fed's web site and it swallowed up $2 billion in taxpayer money to bail out these banks even as he told the public the money could not go to any bank. >> we did not purchase any bank that pleaded not purchased the tip we wouldn't have it credit market implosion that would have been devastating to the economy. no one would have wanted that. as soon as i was no longer necessary -- >> reclaiming my time. who is the world's largest issuer of the etf? >> i don't know off the top of my head probably blackrock. >> who is larry sink? >> larry sink is a seau blackrock. >> this seems beyond belief to me they bought their own etf products? >> i'm sorry the alarm has gone off read mr. chairman may i submit these documents for the record? >> it will be taken into the recor

i spend the bulk of my time working on minority inking and community development financial and banking at a time of relative stability and i vacate into the expansion at the start of the leadership on a perfect opportunity to tackle these issues. the covid-19 pandemic and nationwide with police brutality and racial injustice have laid bare the injustice and quality and i would argue the agenda set in this committee on the 116th congress were proficient and laid the foundations for the earlier priority [inaudible] i thank you for tackling these issues and look forward to continuing to work with you. >> thank you. the chair now recognizes the subcommittee's ringing member for one minute. >> thank you, madam chair paid thank you to all the regulators here today for being here at this critical time for our nation's economy. as you note the pandemic caused a blanket shutdown across the country and cost tens of millions of american jobs. the strength of american businesses and workers responding to the astounding 32% increase in gdp as a third quarter. americans have undergone an heroic effo

also spearheading the unique bank, the standard chartered bank. bill winters next. futures -23. stay with us. this is bloomberg. ♪ tom: bloomberg surveillance. good morning, everyone. futures -22, the vix 34.44. we are going to look at carbon and some of the global climate initiatives here in a bit, but right now, a more than timely interview on global banking, in his unique bank. bill winters, standard chartered chief executive officer, the gentleman from america corralling the interesting emerging market dynamo, standard chartered. bill, wonderful to have you on. if i look at the performance of standard chartered and you came in under great duress and corralled the bank, your share price is back to where it was 25 years ago. what is the strategic plan to reverse the trend and add value to your very unique bank? bill: nice to be here, tom and francine. that is the big question. frankly, we have some really good answers. five years ago when i arrived at standard chartered, we set about on a mission first to clean it up. we spent a couple of years doing that, to great effect. but

banks have been part of the solution this go-around versus the main cause of the last crisis banks have implemented new systems for the ppp program, they've given assistance to customers, they've waved all sorts of fees here and there bank america itself, which is the best beneficiary from this better rate environment among the largest banks, they reallocated 5% of their employees for the pandemic you're going to have calls coming down and everything else. having said that, look, i think you could have some flashing yellow lights, regulation should be tightened up some, whether it's the volcker rule, consumer protection lending, that is to be expected but the most important point is the governing law for banks is dodd/frank and that was passed under president obama. you have a bipartisan law, that's the governing law, that sets all the rules for today and bilt, the head head of the fed and the fdic, they remain in place for the next two years gern, the bears on the banks are saying, banks will have to issue new stock, regulators will be tough on them. news flash, instead of issuing stoc

generally speaking the street is negative on bank fundamental you look at the 24 s&p groups, banks have the lowest of buy ratings. i think it's a decent environment for credit you have dividends and buy backs starting back up we're still many that trade but i think you could have some turmoil in in the near term. >> jamie diamond was talking about how there was near term significant uncertainty when it comes to the economy however by summer he thinks things will turn around significantly. how do you explain that? >> they saw they had lopes up crease by 15 billion and deposits by 582 billion. if you look at pnc, one of the largest banks, they only have deposits of 350 billion. i like this type of trade in the news today and get into something like j.p. morgan you're going to see the deposits go up. if there's any type of lopes going out to corporate or consumers, these things are going to pop higher, so i have good news. >> let's hope so we saw retail sales disappointing for the month of december, rericed downwards for the month of november. do you like the banks here >> i think -- well,

the u.k. bankbank, the nordic banks have frontloaded significantly and more than, say, the french or italian or spanish banks. they have still frontloaded to a degree, but much less so. given what we are seeing, given all the talks on delays to vaccines and travel restrictions, i think it is way too early to expect visitors to pay up for any good news on provisions. i think that is the story that will come through, but it is far too early for investors to get their teeth into. alix: if you are in equity trading, are you going to have a killer quarter? andrew: it should have been. it should have been. that is what the u.s. banks' results would've indicated. results were up significantly. it is going to be harder looking into 2021. that is what investors tend to look at for q4 numbers. we are really interested in have the first quarter is going and what is going to happen from here on in. i think most of that good news from equities is being absorbed by the market already. we are keen to see what the

the banking industry has become a nativity. t now it is priced as a risky asset, but in reality, the top 70% of banking assets which are 150 institutions regulated by ecb is becoming more a nativity factor. i think there is more upside than the market is pricing. francine: speak in plain english, look at what is happening with gamestop, reddit, various tweets by elon musk, what does this mean for the hedge fund? davide: [indiscernible] in our view, the idea of having all of this technology stock come along shorting -- is something we do not understand. we stick to our nitty-gritty. we rank very well. in particular, my view in the digital world, there is craziness in valuation. i think it is probably a -- faction rather than a fundamental. not every company can be an apple or a tesla. people are looking to stop a problem that doesn't exist. francine: talk to me about apollo global management's. our governance issues resolved, or should they have gone further? davide: certainly it is not for me to tell. that is a u.s. firm. it is

manager buy anotherlead and big bank in the country. m: we will talk about american banks. bank,ure bank, deutsche but separate from that is the state of deutsche bank. from where you sit with all of your experience, is deutsche bank america's separate and removed from frankfurt? elisa: deutsche bank had been getting to a place where, if you look at the headlines over the last 6, 12 months, it is becoming a little more boring, which is probably what it wants to be after having obviously some tumultuous years, marked by various allegations and investigations, various wrongdoing across the globe. it has struggled to generate profit. it really seems to -- things are turning a corner. it has obviously been buoyed by the strong marketing 2020, but there is optimism, they are finding their stride. clearly what we are seeing in the u.s., particularly what we around the financing that involves donald trump could bring them draw -- could certainly draw headlines. francine: there is also talk that credit suisse is considering bonus pools by as muc

guest: most of the listed banks that we cover are actually the best banks within the banking sector inhina. banks,e large national their financials are stronger. what you mentioned of these smaller regional banks, they are the ones with more problems. listed, so their financials are not as transparent. 2019, a number of troubled banks were taken over eithercentral bank, to bail them out or take them over. that will probably continue. we think the troubled banks, recapitalization will happen continuously. the impact is actually relatively small. estimate those problematic banks maybe 3%, 4% of the banking system. the central bank has the ability to bail them out. tom: how should investors be looking at the financial technology crackdown taking place? how does that play into investors use about the more traditional banking sector? guest: there have been impact players, challenges to the traditional banks. they were in a number of ways. for example, in the payments business, the lending business. they were extending into wealth management, and insurance too. as you mentioned, there has be

alix: what bank would benefit the most for that? ank has this certain type of loans that would benefit? betsy: it is really the institutions skewed to consumer lending. that is why we are overweight, our consumer finance names we cover. our estimates for eps this quarter are roughly 40% above street estimates. that is without much reserve release at all. that is looking at the quality of the credit that has been coming in for the last three months. alix: moving forward, he get goldman sachs, morgan stanley. what are you going to be watching there? betsy: key question here is how are we setting up for m&a in 2021? my colleague has a 40% uptick in m&a in 2021. we are factoring that into our models. that will support some nice leverage lending. that is really a key question for an edge meant. how did they think the set up is going to be into next year? the flipside is trading. we talked about this quarter, trading we think is going to be strong, the question is, how persistent can it be into 2021? a time when specifically we had -- spec

on the banking front, this week alone, the ambassadors of all countries participate in a banking union and agreed to a treaty to bring forward and to change the role of the european stability mechanism into the context of the banking union and banking difficulties. and as we viewers will know, this is an issue that has taken years of efforts, years of negotiations. the finance ministers agreed last november, and the treaty has been signed this week, and it is part of how the architecture, the economic architecture of the eurozone has been strengthened to deal with the very kind of uncertainty that you and i have just discussed. francine: minister, thank you so much, the irish finance minister and eurogroup president paschal donohoe. coming up, we have another great interview for you. we speak to the ubs chairman, axel weber. we will talk about market movers , gamestop, and banking in general. this is bloomberg. ♪ bloomberg. ♪ francine: economics, finance, politics. this is "bloomberg surveillance." i am francine lacqua here in london. last year, i spoke to axel weber about market conce

the swiss banks and the american banks -- in the eurozone, interest rates are low and costs are high.es of rates rising at the long end of the yield curve, asset quality will be better. a structural underline problem -- underline problem. -- underlying problem. the only kind of europe where banks make good money is in scandinavia. it allows them to make money. it is a structural problem. tom: it is a structural problem, i understand, but they have to fix it. you mentioned the european banks doing business in america. i do not want to get you in trouble but what is holding back the mating of profit desiring u.s. banks and profit desiring eu banks? culture? ronit: consolidation is much easier inside markets. most big u.s. banks already have established capital market operations. buying a big european bank comes with other issues, and it does not tend to be high up on the agenda for an american bank right now. i would expect consolidations to be more in countries within europe. bank to wealth manager. i am not expecting asia to u.s., u.s. to europe cross-border m&a. francine: do you have

and keeping the pressure on those bigger banks. i think there will be some encouragement to participate with the bigger banks to do what they can but i think to even the playing field we need to continue to allow regional banks to step in and help those who can tell a story. big banks have to standardize everything so they cannot -- alix: it is always great to catch up. marty mosby of vining sparks. we also have been watching arrivals on capitol hill. we saw chuck schumer, amy klobuchar as well, elaine chao and mitch mcconnell. now we will take a look at what it means for the broader stock market as well. burns mckinney joins us. j.p. morgan is his number one holding. he also has morgan stanley and citigroup. what is already priced into the stocks? if they report good numbers, the market did not care that much this time around? burns: we saw a little bit during the bank earning season, little reversal from what we had last year. last year the market allowed the banks to have some mediocre earnings. in this case expectations have ris

and the world bank, to invest in reconstruction of then-war-torn countries. vid: so your job at the imf is to, let's take a country that has financial problems. their economy is weak or they have other crises. you can help them through that difficult time by lending them money. right now, you have about $270 billion outstanding. do you actually get paid it back? kristalina: the loans we provide are with very attractive interest rates because the members extend help to each other with a helping hand. for the poorest members, we charge no interest. these are much softer than traditional imf loans. countries pay us back. the poorer countries have longer maturity and longer time to serve their loans to us. but, what matters is not just the money. what matters is that we work with countries to make them stronger, so they can repay with more ease. and that is absolutely paramount for people to know about the fund. we are there to help countries to have strong economic fundamentals. david: there are some people who say sometimes when the imf has lent money in the pas

there are many outside the banking sector. if i can mention briefly three of them come of the first one is money bucket funds, some open-ended short funds, and we shouldn't forget this lesson. central banks had to intervene, so we should change the rules for the future. we took a lesson from the banks from the previous crisis. second, the possible overvaluation of financial markets, a possible discrepancy between valuation and the economic prospect. we know that it can be successful, so it remains a potential source for fragility. and most important lick, the main vigilance we must have is about nonfinancial corporates. this could be the risk in the months to come for the financial sector. francine: thank you, governor. we will talk a little bit about monetary policy later because i do have questions on that, too. mary, how do you see the resilience right now of the financial system? do we need to do more? have we been complacent in any part of the market? >> i think those comments were exactly right. this is the first time we'

anna: what about others in the banking sector? the more rank-and-file banking community. ay, as we hear his pay in cut 30%, morgan stanley and goldman are seeing pretty much the biggest bonus bumps among bankers in asia, so their giant bonuses are up 20%. morgan stanley. 15% at goldman sachs and that is even stronger than the folk on wall street desks. matt: thanks very much for joining us. we like to keep up with the big banker pay. tom metcalf from bloomberg news our u.k. finance reporter. coming up, how far will earnings drive tech stocks? earnings, not reddit. we will put that to simon flint, bloomberg's em strategist. this is bloomberg. ♪ >> by the middle part of this year, we will get systems back to normal, the vaccination rollouts will continue to rollout and we will accelerate our growth in the back half of the year. >> we are only safe when europe is safe. providing covid vaccine to anyone around the world. >> we have the tools, but we will make covid like the flu. that means it will disturb neither our lives on the social, or the economy. >> the light at the end

the banks, the british banks and banks everywhere have had plenty of time to prepare for this day. the day has finally come, but do you think banks are sufficiently prepared >> they're prepared for a bad deal, if you see what i mean, a hard brexit. we for example have set up a subsidiary in amsterdam, a branch in frankfurt, we have a capitalized entity which can deal with european union clients. so we've prepared as far as we can. what we can't prepare for is uncertainty which persists at the moment we do not know yet what the future arrangements or the regulation of cross-border entities in europe will be that's part of future discussion on regulatory cooperation, which is mentioned in the agreement but not described. and also there's a big issue of in the jargon equivalences to the extent of which uk markets will be regarded as equivalent in their structure and their regulation to european union markets. that's not been decided either so there's a limit to what individual financial institutions can do when there are still significant moving parts here >> but indeed the document do

he was in frequent contact and conflict with the banks. he was a driving force behind the government's new oversight of the massive over-the-counter swaps market. global news, 24 hours a day, on air and at bloomberg @quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am leigh-ann gerrans. this is bloomberg. francine? francine: leigh-ann, thank you so much. after a historic day on capitol hill, the house when i'll vote today whether to impeach president trump for a second time. malcolm of the vote comes a second time after a mob of drunk supporters swarmed a congressional building. the house is demanding vice president mike pence use the 25th amendment to remove the president from office. that vote was mostly symbolic. joining us is bloomberg senior editor stephanie baker. stephanie, mitch mcconnell, according to people familiar with his thinking, would, you know, i am choosing my words carefully, because they did not say he would support impeachment, but he was not against it. stephanie: that is righ

it's you know the banking networks that it's now. and the insulin issues system and everything it's. 'd you know it's better so. and there 'd that's what it will chew you know for the for the for the people to what end. quite in services to the out so would and technology and so that people can accept like it's a fuss payment network as well it can accept the payments from from anyone in the wood digitally and kuwait into the kess that is the whole. ranks out of touch on that the remittances market it's a 24000000000 dollars last year and i would imagine that that would be a huge use case in pakistan because for remittances correct correct that's correct ah a lot of pakistan is working outside of what different countries and they send money to do household their family in pakistan and you know me as well my family members or what can a different countries they send us money 3 and it takes a lot of you know some time and it was so close is high so if we have our infrastructure. and this network they can use and they can send money quic

sooner than the market banks? ncerned we will see it over the medium term, not so much because of the fiscal policy come about because of the change in the monetary policy frameworks. we know that the federal reserve tends to be more tolerant of inflation overshoot in the future, that they will worry about the labor market running too hot, so that, i think, amounts to a change in the federal reserve reaction function, and that, together with cost pressures caused by the covid pandemic, caused by globalization being rewired, will push inflation higher, but i do not think it will push interest rates higher. in fact, it will push real rates lower, that allows the economy to grow even stronger and support risk assets. francine: elga, dr. fauci is also addressing the world health organization, and seconds ago, he said the u.s. will join the vaccine covax, which trump aide said was -- had said was too china-centric. what is your best case for allowing the economies to reopen or get back some of the gdp loss? dr. bartsch:

ralph hammers, the new ceo, trying to find his foot at the new bank. other highlights from the earnings announcement, they basically are doubling the size of the previous repurchase program and they are saying they are expecting to buy $1.1 billion of shares in the fourth quarter. they saw a rise in income and the investment bank revenue also was pushed higher. that helped bring in this set of results. it is a boost for the new ceo who has been in focus because of the scandal that has overshadowed his start from a previous engagement with ing. the focus on wealthy clients by ubs -- ubs stock has outperformed the benchmark swiss stock index over the past year. we will get more reaction throughout the day. from the ceo of ubs, rob hamers, he is going to be reflecting on his first earnings day since taking the helm of the largest wealth manager in the world. don' miss that at 7:00 a.m. u.k. time. give us the flavor -- it gives us the flavor in terms of what they expect from major european banks. it is a day where we are seeing risk aversion across the boar

and you don't have the same limitations in paying back your bank if you happen to own it so that is the fundamental underlying piece of why you've got to separate the 2 the real dangerous level of private debt a lot of souls couldn't share like condie of an aggregate figure for a lot i could do with a few minutes not is that not a lot of the an american situation with the best want to talk about and that started 40 percent of g.d.p. after the 2nd world war rose to 170 percent at the peak of the financial process and this fall into 150 percent was fluttering along at that level which is 3 times the level that enabled you're sure you have half of the golden age of capitalism and that's the the anchor that's the china. around the ankles of the global economy too much profit so. my hope is we might get some sort of movement to wipe out that profit it using the government's capacity to create money what i call a modern day i would never for the have a hope in hell of happening but off the code maybe some things will be on that cycle but that's the real danger so much profit that frightens it

> but the bank would not give them the funds they still have on that debit card. >> reporter: he said it's a repeat of what he saw happening this past fall when at edd's request bank of america froze 345,000 debit card accounts because of suspected fraud. turns out there was collateral damage then as well, to potentially hundreds of thousands of innocent people. >> i got charged with $1,000 on an atm, like far, farar away fr me. >> reporter: he said someone hacked his edd debit card, and right after that, his account was frozen. >> all of the money i have coming from unemployment, over $8,000, is there. >> reporter: it's money he needs to cares to his disabled daughter. edd has confirmed his identity and sending him paper checks, but three monks later, bank of america sometime won't unlock his funds, and she not allen. >> those people are still locked out of their accounts. >> reporter: publicly bank of america and edd are saying they are working together to solve what they admit sat least a $2 billion fraud problem involving these debit cards. we've obtained internal e-mails showing

does china have the influence bank?world kristalina: they have increased shareholding in both institutions. activeve been also very in supporting the institutions. china,case of the imf, u.s., the rest of the world, in this crisis stepped up significantly support for us for concessional lending. china as engagement of constructive. --t is so very important that is so very important when we are in the midst of the worst crisis since the second world war. david: imf stands for the international monetary fund. have you ever thought of of changing it to i am fair, i am friendly? [laughter] kristalina: i like that. for,people say it stands it is mostly fiscal. this is what i would relentlessly work for. to always think of the people whose lives are impacted by the policies we recommend. david: you are the most prominent person in the west from bulgaria as far as i know, maybe there somebody else but. . i cannot think of anyone else. you could probably go back to bulgaria and run for president. i do not know if that is a bett

and the bank of japan. he view, what the fed has looked to do is push real yields in the united states, minus 1% on the normalized 2% inflation rate. we think they're going to continue to pursue it going forward. we need to see inflation really move above that 2% target. we don't think that's the case on a sustained basis for much of 2021. maybe that's a 2022 discussion from here. from that perspective, yes, there is some concern on the upside from here, but we think bonds are more volatile, probably stabilize here 1.5 going forward. annmarie: what does this mean if year going to see even a little bit of higher bond yields, what does it mean for risk appetite when it comes to global equities worldwide, that hitting average is just baseball excellence, think of babe ruth. norman: i think when we look at the scenarios, i think a lot of people are fearful of the 2013 paper tantrum type of move, 150 basis points move in 10-year yields in three or four months. the trajectory looks more like 2016 where you saw the

we had the national bank of kuwait, the biggest large-cap in the banking industry and the company, 0.6%yesterday with strategists, with an investor in kuwait and he follows closely the market. he says the news from the central bank, they were reassuring and they should give boost in the near term for this sector. at the same time, he highlighted that attendance for 2020 are factored in price of this stocks and the announcement should be impacted somehow by how much lower the profits for last year were when compared to 2019. and an investor should be ready for that. yousef: looking at some of the losses in dubai, the biggest in the gulf, what were some of the stocks that dragged on the index? were it the real estate plays? >> just as we were expecting positive reaction for the news we saw over the weekend, in dubai, it wasn't surprising to see the index was the biggest decline here in the gulf on the section. we saw the dsm dropping 0.7% at close and then when looking at the name, he mentioned the property stocks, that's correct. he was down close to 2%. and then we had properties at 1.3

and we have less than the bank for business investment. est to us is how can we unlock more business investment, how can regulation or reregulation be pro-business? anna: it all comes back to that investment theme. tony, i want to get your thoughts on the friction we have seen in eu-u.k. trade. how much of that friction is teething trouble? and how much of that is by design? tony: i think it is teasing troubles. the reason we have to get on it is firms have held back and are waiting until the problem settle down before trade flows returned to normal. from our intelligence, the biggest problem is that gbni order. northern ireland was always going to be the most complex part of the deal. the other thing holding people back is confusion about rules of origin. it is still incredibly confusing to british businesses. if we are going to unlock this, we have to get in control of those border flows. the full volumes have yet to hit test. and we have to have clarity around the issue of rules of origin and how firms can provide the necessary evidence

what is the position of the consumer from these banks so far? octavio: the research is it has held up a bit better than people expected. p if -- if you look back, the amounts of reserve those have not come into fruition the way we expected. too pessimistic the first half of the year. things have not been quite as bad as they expected. not great but not as bad as they expected. credit card spending is down. deposits are of quite sharply. people swearing away more money. guy: there seems to be this view about the fact that the biden administration will be good for the banking sector, would you agree with that? octavio: last time we had a change, if you remember what happened with donald trump being elected, there is an enormous boom in banking stocks. for a couple of months after he is elected. it seems they are very happy now with trump and biden in terms of the banking sector. it creates uncertainty. for the banking sector in particular. they are relieved they are going through a smooth transition. they will not come into play. more than anything

they accused the bank of turning a blind eye to the situation.hong kong, where pro—democracy campaigners have taken to the streets. joining us now from our asia business hub of singapore is mariko 0i. mariko — some pretty testy exchanges between mps and mr quinn. at the heart, is the question of whether the bank is too close for comfort to china. that's right. the allegations that hsbc faces including acting in a political manner. and being too close to beijing. especially because the bank appeared to have frozen some accounts belonging to a pro—democracy politician but mr quinn said the bank wasn't acting on political grounds, that it would only freeze accounts when it receives a formal request from authorities and in that case, it had no other option but to comply. there is also criticism over how the bank appeared to welcome the introduction of their new security law. to that, mr quinn also said the bank had simply pointed out that it wanted the security situation in the region to be stabilised after 18 months of violent protest. he also said

the virtual banks lack. sformations make our presence much more compelling. haslinda: some say it is an overcrowded space. do you see consolidation? guest: it is too early to know. we will see how the purely virtual banks operate. i see that most of them will operate in the mass markets, which we have chosen not to. i do see that as soon all the virtual banks start operating and operating heavily in the mass market segment, there will be some sort of successes and there may be some sort of failures. at that point in time, we could probably address your question. but probably now it is too early to see whether consideration at that stage might come aboard. rishaad: sebastian, what is the weakest part of your business in hong kong and what are you doing to address it? guest: i think that we are operating in a position of strength. 10 years ago, our strategic weaknesses was our funding structure, but we have corrected. 10 years ago, our liquidity ratio was 37%. today, our ratio is 80%. we are very well poised fo

the american bank j.p. morgan is calling it the new gold but it wasn't always like that the banks feel used to see that crypto currencies were nothing but a fraud even threatening to fire any employees who traded in bitcoin but the bank changed as the valuation soared now j.p. morgan is watching bitcoin climb to dizzying new highs i think institutional investors are now realizing that this is a real asset class their customers are asking the about it and they had to migrate from saying no don't touch it it's it's bad to. help you by will help you manage it bitcoin increased 400 percent in value since january 1st it's been reaching record highs since december according to g p morgan because again is gold's loss the bank maintains that many investors saw gold as well as shares in gold funds and they vetted those investments to big point but is because in really the new gold opinions in the financial industry differ widely some see big khans recent price gains as a speculative bubble that is set to barstow othe

it on the commercial bank and the central bank finances the government. done in small doses, it can be done for a small period of time. over time, if you do this, then effectively what the central bank is doing is essentially forcing the financing of government debt into the commercial banks of the country. it has a lot of dealer serious effects, possibly the fact that there is no check and balance on how big the government deficit gets. >> could i ask, how concerned are you now about the independence of central banks? you make the point we are in a crisis, but some of these actions are merited, but at what point do we cross the line whereby the central banks and ministries become blended and the independence they fought for disappears? raghuram: i think it is important that these be decisions taken by the central bank rather than enforced. of course it is very hard for the public to see what the exact relationship between the central bank and the government is, but we should respect the central bank's ability to say no. and when should the central banks

all of the largest banks in the u.s. system has signed on to the gcfd, financial disclosures. we also know that many of our banks have expressed to us that they are struggling with some data issues such as the geographic exposure, that often arise in which they are not accustomed to working with and that uncertainty we talked about earlier. so that's where our work, cochairing the basel committee, the task force of climate related financial risk we think that we really important. it's already looking at analytic or looking to issue analytic reports on transmission channel and measurement models. and then based on that it will be in a position to develop recommendations for effective supervisory practices to mitigate climate related financial risk. we think there's a lot of work going on in this space within the private sector and in the public sector and i think that work will grow. >> obviously not unique to the banking system. last panel discussed that in terms of the broader economy and we are doing some work, will release the report said on affect the federal government doe

what has the world bank done? 020, what was the biggest thing the world bank was able to do to push back against that? and what do you want to do this year? carmen: i think an important action or set of actions is in lending, especially earlier this year when financial markets really -- even now, private capital flows are quite skittish to a lot of the middle and lower income countries. much more selective than it was. that lending is not indiscriminate. very much it has been focused. yes, there has been considerable lending to provide general budgetary support to deal with the emergency, but much of the world bank programs are geared toward social protection. i.e., building and strengthening social safety nets, cash transfers and the like. these programs target the most needy and it is an offset. but let me say that when i say an offset, it is an imperfect offset, because this crisis has been much more aggressive than what i would call a more standard financial crisis. who can work from home? again, going back to

you really asked about the non-banks in the non-bank sector. we monitor financial conditions vary broadly and while we don't have jurisdiction over many areas in the non-bank or other agencies do so we do coordinate to the financial stability oversight council counsel and with other agencies who have responsibilities for non-dank supervision and in fact as you know in the last crisis the banking system held up fairly well so far and the dislocation that we saw from the outsized economic shock of the pandemic appeared in the non-bank sector so right now we are engaged in carefully examining and understanding and thinking about what in the non-bank sector will need to be addressed in the next year or so. >> thank you. >> thank you so much chair powell. have a question on fiscal policy. last year you consistently said the economy needs more fiscal support and i believe when the 900 billion-dollar package was approved in december we have now a new president and a new congress and a weakening short-term outlook they do believe the economy still needs

come but the wall street banks -- regional banks, but the wall street banks. underwriting is still quite strong. a lever here, we need to see acquisition financing to keep the going forward this year. goldman also bought more than $1.5 billion in consumer revenue, so the stronger the consumer, you're seeing the strength going through goldman sachs. lisa: that is exactly where i wanted to go, their effort to push into consumer lending. can you give us a sense of what you're looking for on the earnings call, and terms of how much business that has expanded and how successful it has been? sonali: nobody expects goldman to be bank of america tomorrow, but it could bring down the cost of funding and also help them compete. you heard j.p. morgan just last week say they are keeping an eye on goldman and pushing it to cars, so any value they can give us on their cars business will be a value. they are also launching more retail investment products. we are going to want updates on how well they are doing. tom: the efficiency ratio later down in the powerpoint is 65%, b

so tell us about the moment about pakistan's monetary system in the central bank the pakistani central bank what wanted to have a issued any any thoughts about big coins at all what is the monetary policy there as far as you know. with the monetary plus polisi is not it's like not different than other countries you know it's the pakistani who pay its back by us dog so they can actually print more. lanny you know keep your are they have to ask as to the united states and it's not like a back by the cool as a lot of people misconceptions and in the country so it when it comes to the this is just not it's ikhwan. actually it's not the band put on the olympic quine it's not i mean it's by the state and. they are restraint. people because once it is and they have put a ban on this they went to the strip spam court and they are at the bank in the country to shut down a trade trace it if you if you see any trade happening it into the banking chat to the big consist it should be back right so the state bank has an opinion it's not necessarily the government's opinion the prime minister of paki

two big stories we will be tracking over the next couple of hours. bank earnings clearly one of those. the other, the virtual confirmation hearing of janet yellen. alix: of course, you have results coming up from bank of america and goldman sachs earlier this morning. both of those themes seeming to play out within the markets. you have the russell 2000, you have banks pushing their way higher. the nasdaq outperforming, up 0.8%. the nasdaq had a massive run, really outperforming other sectors. if you get the stimulus, that is going to be a big boost. it is a mixed dollar story, a very big reaction from what we saw yesterday in the dollar market. the assumption is that janet yellen will speak about how the market is going to handle the dollar and not the benefits of a weaker dollar, so that is what we are watching. let's kick it off on bank earnings. mixed results for wall street banks. this morning, bank of america falling. it is pretty much flat after trading revenue fell short of expectations. goldman did rally on investment banking beats. now little so

the virtual summit. merkel and macron follow. deutsche bank says it is conducting an internal probe after a report stated that it intentionally sold clients risky investments they did not understand. we are just under one hour away from the start of cash trading in europe. let's take a look at the futures picture this morning. we are looking at green arrows across the screen here. euro stoxx 50 futures up more than .5%. ftse futures getting point -- gaining .4%. green arrows as well. in terms of s&p and dow jones contracts, we are looking at .3% gains. nasdaq futures up .3%. anna, what are you seeing on the gmm? anna: we saw a nervousness amongst investors, concern. today, we have very gloomy headlines around the pandemic but investors putting that to one side, focusing on hopes for fiscal stimulus. and that the fed has invested back for a lot longer, longer than maybe some had feared a couple weeks ago, hoping we will avoid any kind of taper tantrum. no doubt that will be a team as we go through the week. south korea higher, hong kong higher,

optics throughout the rest of the bank. have a large disparity, so it does not look great with the new guard in washington to give your workers this huge pay increase when so many people are struggling. they want to avoid that scrutiny. just because of the wall street portion of these lenders did well in markets, other parts of the banks did struggle. lending did not do as well. we see this average overall pain number look disconnected from the growth. goldman sachs, 15% increase in revenue year-over-year but only a 2% increase in pay. jp morgan, the disparity is bigger. 22% revenue increase versus 1% for pay. again, it is an environment where there is a crisis and it does not look great to pay your traders that much more money. matt: if that is overall pay, what about the top rainmakers, the big executives who get multimillion dollar checks? is there pay also stalled? dani: we have seen some of those stalling. jp morgan is keeping jamie dimon's pay flat. we usually get the figures around the end of january. we are expecting

at the bank in the country to shut down a trade trace it if you if you see any trade happening in the banking chat to the big consist it should be back right so the state bank has an opinion it's not necessarily the government's opinion the prime minister of pakistan emraan khan as he said anything about this yes a lot of good people in the end at out he they are white and they were not you know promote the option of a question and legalizing the industry. it's a coincidence pakistan and a lot of member was that. working with him and he actually got the one of us to pick up the mining legalising in in the in the region and it's working and you know they have made a lot of progress in the towns and the energy costs in fact us and you know a big claim mining is dependent something like made it in 90 percent of the cost is actually the energy cost can it get cheap energy in pakistan. exactly and as he is in the relatively cheap accent but there are some you know we don't have much and you see you know regular shutdowns is a normal thing here because we have less and consumption is moved

the early u.s. colonies. whatting significant about tobacco money and lan bank money? and with respect to the latter, lan bank money benjamin franklin referred to it as coined land, amazing kind of description but one that does get at something. what is significant is that tobacco money and coined land both gesture to key sources of american capitalism. slave labor and the appropriation and dispossession of indigenous licenseds testimony back co money is nothing but the physical certificates representing the physical product, tobacco, of slave labor, and coined land was underwritten by ongoing wars of dispossession and extermination against indigenous peoples as more and more land was seized, this was the very foundation on which land banks were constituted and they would expand into new territories, bring new land within their injures dirks, sell them off, repay their debts and so on. so, foundationally , then, money in the united states is deeply inscribed with just the kinds of violence and domination that i've been discussing. and all of the major shifts in the hist

the 1790. his second proposal was for a bank of the united states. n december of 1790, hamilton asked congress to charter a national bank. this bank would be jointly owned by the federal government and private stockholders. it would issue currency and that centralization of currency would ideally make the u.s. currency sound. the national bank would handle the government's finances and it could make loans to merchants and banks thomas jefferson said, no way. this is unconstitutional. nothing in the constitution gives the federal government the power to charter a bank. thomas jefferson proposed the constitution, and who became a strict interpreter of the constitution, because he said the federal government cannot take any powers that are not already outlined in the constitution. hamilton says, oh, no, no, it's in the constitution, i see it here. it's right here in article one section eight where it says, congress can make all laws which shall be necessary and proper to carry out the constitution. that's kind of a loose reading according to some, but th

haidi: that was the world bank president. om that interview in the david rubenstein show on bloomberg television. coming up next, tencent is on the cusp of joining the trillion dollar club. the company has pushed its market cap near the milestone for the first time. we will discuss, just ahead. this is bloomberg. ♪ shery: here's a quick check of the latest business flash headlines. noble is losing its chief financial officer after just a year in the job. just attorney is a former cfo and only joined noble last march but is leaving to pursue other opportunities. this adds to a string of executive changes at noble. southeast asian ride-hailer rabbit said to have picked banks for a u.s. ipo that could raise about $2 billion. we are told morgan stanley jp morgan have been selected to work on an offering that could happen before the end of this year. grab is back and saw a net revenue rise last year. u.s. listed casino operators showed gross gaming revenue falling last week. jeffries says it was expecting a negative reaction to the