the state bank -- bloomberg spoke to the city the state bank's ceo. >> there is great political questionessure on all financial markets. the state department with the consequences, no, we do not understand it because the issues of bonds is not subject to sanctions. francine: ryan joins us now. how much of a problem with political pressure? right now we were talking about euro clear and euro clear bonds. agreed to buy the it began long before that. originally russia was talking about using notches the tb -- .ot just vtb they began the conversation with everyone from deutsche bank to goldman sachs but they decided to pull out because the u.s. told american banks, you should not participate in this. the european union quietly told european banks that you must be sure that this money, even though that russia, the government itself is not under sanctions, that this will not go to any sanctioned institutions. the banks' compliance departments were saying, we do not want to get on the wrong side of the regulars that regulators and u.s. government so they stayed away. do not have the traditional

he's murdered at the state bank and trust in dallas, texas, just as he is about to make his nightly deposite taken someone's father. they've taken someone's husband, someone's brother. it was senseless. they didn't have to take his life. >> surveillance cameras captured the chilling incident, but there yet, we haven't been able to >> i was on him about stopping you should be in the bed >> i said, is he all right? and she says, we'll talk to you -- we can't give you any information over the phone, we'll talk to you when you get here. get here as soon as you can. >> barbara and one of their daughters arrive at the hospital and receive the news, phillip has been murdered. >> in my mind, i thought accident. and she said, "i'm sorry, he didn't --" and so, at that course, captured the whole scene in mr. washington's pickup actually found mr. washington down in the parking lot and >> when i saw it, i just wanted i didn't look at the murderers. capital murder and are currently also the reason many criminals that's it for this edition of a mother cheers on her teenage daughter in an after-school fig

he's murdered at the state bank and trust in dallas, texas, just as he is about to make his nightly deposit've taken someone's father. they've taken someone's husband, >> it's rare to actually capture have the murder on video, and yet, we haven't been able to the problem is, the suspects are masked, so one cannot identify a and as a result, the case >> as a money courier, phillip's >> his normal routine was to and he would go pick up the >> he is aware it's potentially so, philip always takes several he never tells anyone what he >> i was on him about stopping i don't like you having to leave you should be in the bed >> and when he doesn't come home at his usual time, she's worried an hour later, when a phone call comes from the hospital, barbara's worst fears are >> i said, is he all right? and she says, we'll talk to information over the phone, we'll talk to you when you get here. get here as soon as you can. >> barbara and one of their daughters arrive at the hospital and receive the news, phillip has been murdered. >> in my mind, i thought accident. and she said, "i'm sorry, he didn't -

the bank and say are you sure this company is an upstart. the banks are fighting back in the same in media. in fact, xi jinping is increasing state control.a lot of journalists are quitting, things like that. but on the other hand, the internet is becoming a popular way. the way jack jokes about this, i forget how many, 78 quotes he always makes it's probably going to be this one. if people really want to be successful, they had to be wise, credible and audacious. he often talks about the government if you've never married the government, fall in love, but never married them. if you do marry the government, you are polygamists because there's so many errands that the government and they confided to a friend of mine last year. it won't happen again. 40,000 government visit in one year. this could be the provincial head, the bureau, local mayor, whatever. you can't say no. they have the whole two were. it's amazing they have lots of maps and things. people are proud of the alibaba including government officials. alibaba is a bright and shiny product. they move from the old china manufacturing pollution. that's very useful. jack has made him

china's yuan performing overnight, with the state bank intervened for an increasing spread between thepot point and midpoint. and other news out of china today, the manufacturer's purchaser's index shrinking for a 14th month. the major asian equity sort of a mixed bag. shanghai managed to throw up by a percent. >> quite surprising we saw the gains in shanghai, given the data out of china, the pmi worse from the official numbers on sunday. also the surprise that we saw australia so well because miners in london are suffering heavily. the minors reacting poorly. ftse down 1.75%. the banks out of focus as well. we've seen ubs reporting a sharp drops in profits and that decline. and we'll hear from the bank's ceo in 10 to 15 minutes and also on the downside, commerzbank in germany. and hsbc reporting the decline. and it was up over 2% initially. this is quite a change in sentiment in the last hour for hsbc, albeit it's offset a lot better than ubs and commerzbank. french back bnp paribas with a 10% net profit even as taking a hit from volatile market. that one is holding ton gains at 2%. >

the big state banks and the capital markets are encouraging that creation.is mortgaging the future. how much of that growth is manufactured through increased debt and continued capital spending versus real underlying growth. i think the majority is real underlying growth and most of us would be happy with 5% growth with no incremental increases in the debt stock. especially in the second biggest economy in the world. francine: you're not concerned about defaults? you will be quite active in china? bill: we are active in the local lending and the local markets. we are concerned about defaults. there has been an increase. they are still manageable. francine: they are managed. bill: the quality of our book in china is concentrated toward some companies and banks. the large banks. we are a trade bank. we are facilitating payments. the nature of that business is very encouraging. where we have a broader based commercial banking and corporate banking, we are seeing some stresses and strains as the economy adjusts, in the old economy areas. we think this is managea

well, if you have money in your account, you can put it in a fund, we will pay you 2% more than the state banks and could have left over treasury, well, a hundred billion dollars went immediately into that thing and the banks were scared even though the banks controlled some of the trillions of yen, they never experienced competition like this and they've actually been pushing back and you go to the bank -- well, are you sure. [laughter] >> the banks are fighting back and the same in media, you know. the fact xi ping is increasing control, a lot of journalists quitting, but on the other hand, you know, the internet is becoming a popular way, of course, to consume information and jack is looking away to do that. the way jack jokes about this, i forget how many 78 quotes that he always makes, it's probably going to be this one, no, this is another one. i think if people really want to be successful they have to be wise, credible and ad -- >> it's alibaba and the 40 wives. if you're marry the government, you're a polygamist. jack confided -- it won't happen again. 40,000 businesses to alibaba in o

the bank. the japanese bank was placed under effective state control in 2003 after the government injected public funds of about $18 billion at current rates into the bank. resona closed its new york office the following year and pulled out of the u.s. market. >>> here is a look at other business stories we are following. >>> sales in japan's department stores in april fell 3.8% from the same month last year, marking the second straight monthly decline. purchases by foreign visitors dropped for the first time in more than three years on a slowing chinese economy. the earthquakes in southwestern japan also hurt sales. japan could be on the verge of seeing more visitors from spain. top officials from the two countries have reached an open skies agrgreement that willl gi the airlines greater freedom to set the number of flights and routes. spanish care ye . >>> japan's crude steel output in april rose 1.2% from a year ago marking the first rise in 20 months. industry officials say redevelopment in the tokyo area for the 2020 olympics is behind the recovery and construction demand but production for

these banks, not just the big state owned banks, they rely on these deposits. goldman?other thing that could spur more defaults. goldman sachs first of all says the dollar was in a sweet spot the fed had more dovish comments. slow down and things were hunky-dory according to goldman. to hike feds starting rates possibly, they see the sweet spot ending. that could spur again another round of outflows, a weakening of the yuan, making corporate's payhina more difficult to dollar debt, and neck and spark more defaults. unhappy news today. rishaad: array of sunshine on this monday morning. thanks a lot for that. let's look at at the stocks in hong kong. they are calling for a review of trading fees, pointing to these high charges which they claim are eating into profits. what exec to are they complaining about here? >> they are called minimum charge. rishaad: which is high? yeah, two dollars is not really high, but because modern day training since lots of orders to the exchange and small transactions, and when you pay this fee, costs x late. -- escalate. every time you incu

the dubai government and its creditors some two years ago. guest is based in frankfurt. he leads the banking sector for the india region. he is in the nine statesk at the main digital banking event. every ceo talks to me about the digital proposition. the digital revolution. a huge amount of changes going on a global banking. deutsche bahn. what is digital, where does it fit in in this new landscape. >> industry gives the incumbents a chance to transform their business models. something much more efficient. taking out costs. customerg the overall orientation. a lot of these countries will use that chance to change their business model. minas: i speak to a couple of ceos every day. there was fascinates me because the next generation is a digital generation. 70% of the customers will only ever operated the online banking. that is the challenge is that? >> absolutely. one of the restrictions that we see on this is that a lot of managers are part of that generation that can really think wast how the new generation acting with digital tools. none of our kids will step into a branch. when it comes the real complex problems. mortgages and investment p

the state. there is a fog bank and you'll notice this. ing the surface winds that are trying to push back the fog bank and see some of the overcast that will regroup late tonight through tomorrow morning primarily near the immediate coastline and you can see a few showers in the southern sierra but that's about it. the state is fairly quiet today. the numbers, warming up, 80s in fairfield, concord, walnut creek, livermore, and santa rosa, for and san francisco, 65, and the coast, not too warm. only in the upper 50s. and hot inland monday and beyond, lots of 90s in the inland areas and just a little bit of haze. first thing tomorrow morning, haze and lower 50s and patchy fog at the bay but the weekend is starting off nice. san francisco, 74 and we'll take this into the afternoon hours, lunchtime, mostly sunny and 69 and sunny and warm at 4:00, 72 degrees. if you are heading to the coast, the beaches are not warming up too much, only in the 60s to right around 70 degrees and patchy morning fog and water temperatures in the 50s, 56 at last ch

. >> the letter stated that bank of america many times the thought process is i have no responsibilitye note, in fact, she did. why? they are both still responsible for the underlying loan. they say hey, if for some reason this property never goes up in value and this guy wakes up one morn and says i'm done. they have two people to go after for the deficiency. they have you and your ex-wife. they look upon her as another safety net. when he makes the payment for a period of time of time, he could go back to the servicer. she his good faith payment and ask them if they will consider removing his ex-wife from the loan. you can say i will provide you updated financials. i'll give you my tax returns. will you consider removing her from this loan. just as an alternative. let's assume they want her on there. if you have a friend, a brother, sister that is willing, many times you could go to them and say i have somebody that will guarantee this loan would you consider just for purposes of removing her name from the note. there are alternatives. by the way, the over and under this is loan will

we're going to unpack the latest report on the state of the market. doha banks looking to expand overseas. we'll continue our conversation with the ceo of that bank. manus: the chief executive officer executive officer of doha bank is with us. i hear your point. you are the ceo of a bank. that you want to say have bad nonperforming loans and things are going to get worse. but the economies are not strong server. oil is under pressure. nonperforming loans are set to rise. i am not as convinced as you are that things will get better. loan to deposit ratios are deteriorating. >> i see the economy is strong. regaining economic momentum. according to the spring meeting in washington. the deficit of around 5% $3 billion. the economy is still growing literally. the region has been growing in absolute terms. there is no contraction. they have huge sovereign funds in many of these countries. there is a huge call for market capitalization the capacity to borrow including the measurements for movies. of theve clear awaiting other ones. minas: you are fighting back there.

the state run bank was the sole organizer of the sale.ins us now he an exclusive interview and quite a bit of insight into the story. >> andre is on the phone with us now. i want to ask you for starters, what is going on with euro clear . we understand that russia met with them yesterday and they decided to make the bond euro clear rubble. what is the problem? there's a great deal of discretion america and europe come a made by the state department -- we don't understand that because the issuance of sovereign bonds is not subject to sanctions. but there are questions about what if. sectors a very negative on the financial institution and particularly. >> we understand that russia will meet with euro clear the finance ministry again today. is that going to lead to some kind of resolution whereby they would expect the bonds for the secondary market? >> i mean the protection is done without them at the moment. it will be handling the federation. the minister of finance greece is the paying agent, plus we look continue our discussions with eu

possiblees probing money-laundering over the troubled malaysian state. bsi bankl shut its operations in the city state. bsi noticed intention to withdraw its status as an emerging bank in singapore. serious reaches of anti-money-laundering requirements and gross misconduct by some of the staff. deutsche bank is the subject of an investigation of whether it inflated the value of securities in its mortgage bond trading business and billions of dollars of losses in 2013. all of that with people with knowledge of the matters. it could've boost the banks earnings for several quarters. the chief executive has another headache with news he is cutting the rating to just two grades above junk. the agency says it's performance has been weak for several quarters and substantial headwind including low interest rates and macro economic uncertainty. facebook is changing how determined its new stories are trending after recent allegations of political buyers. the company says it will no longer require stories to be from sites to be news leaders as that requirement could lead to

janet gerber, a teller at the dairyland state bank, is nearing the end of her day when two young menks and carrying bags. but they're not looking for candy. >> i thought it was a halloween joke, a funny prank, until i had seen their gun come out of the bags. >> 20-year-old robert mccallie and 19-year-old steven willard jr. hold the teller at gunpoint and demand all of the money from the bank's vault. >> i knew that they meant business. i wasn't going to question or even argue or even try to say, no, i don't have a vault. i just did what they asked. >> gerber hands over $17,000, but the teller has a feeling the robbers won't have it for long. >> i knew that they were going to jail. i knew that they were going to get caught. i knew their lives that day were over. >> the teller notifies the authorities and jeremy peery gets word of the pursuit. he's then a field conservation warden at wisconsin's department of natural resources. >> they advised me that the bank had been robbed and that the suspects were last seen heading west out of town. >> peery learns the two robbers have jumped out

the imf could unlock $15 billion in aid. their central bank chief says it will help opec's second-biggest producer with finances into one with the islamic stateexpected to receive $10 billion in assistance from the world bank with a further $5 billion coming later. john kerry has held talks with --di arabia's king solomon king salmon. his visit comes amid efforts to rein in fighting and encourage dialogue. is trying to sure up a trachea -- shaky truce in syria. he travels next to vienna for a series of meetings about the three war-torn countries. yvonne: let's get the latest from the markets now. reporter: it is looking a lot better than it was on the open around this region. most majors -- markets tracking higher. off a tenseas come of 1%. that the the fact plant failed tax hike could be very combined. gains coming through on health care stocks in australia led by primary health & at this is on land from the current government malcolm turnbull's government that if they get reelected they will keep rent controlled and that is going to be a boost coming through to their bottom lines. some gains coming through from the philippines which had a s

he said he will announce a central banker on monday and make other announcements at the state-run bankso we will need to see what happens. need to move quickly on everything. >> they do. quickly and hee said himself to keep the trust that investors are giving him early on. carol: thank you. the bureau chief joining us from brazil. coming up, did donald trump masquerade as a publicist to brag about himself? it is one of the unusual topics that is grabbing plenty of attention but will this matter affect voters? apple moving into the bright sharing business investing $1 er's chinese rival and when it means -- what does it mean for apple? and battling it out to be the termsaluable company in of market cap. going back and forth in terms of that. ♪ carol: this is "bloomberg markets." i am carol massar. american and united airlines will try to beat the discount carriers at their own game, offering basic economy fares. and not including typical benefits such as being able to select the seat before getting to the airport. they are trying to compete with budget airlines like frontier. and the app

state basis. because they're still doing that, you can't work with banks. that's one of the biggest problems in the industry. it keeps growing and maturing and expanding, but you still can't get banked access. come november, we may have a tipping point where many states in the country have medical cannabis, but you still don't have a banking solution. it's coming to a point where the federal government will have to make some type of stance on it. an industry can't grow and expand if you can't bank regularly. >> so if you're not getting loans from the bank, how can people raise cash and get investment? >> it's all personal funds, angel investors or the venture capital fund that have been set up specifically for this industry. again, raising money from those guys too is a difficult task because everyone's trying to do it. these guys are flooded with deals day in and day out. it really comes down to, again, you're team. they have to believe in your team, that the team is the one to carry it forward. >> would you describe the cannabis industry as the new gold rush? >> i would, j

the u.s. bank and the state street bank, and these costs are for the bond council, and the rate savings and advisers and the rated costs and in addition the city will incur, the estimated ongoing, fund costs of 822,000. per year, to pay the fees for the new letters of credit of $150 million, again, provided by the u.s. bank and state street bank and that is showing in table two on page six. and we do recommend that you approve this resolution. >> okay, thank you mr. roads. >> colleagues, any questions? >> okay, we will move on to the public comment, anybody wish to comment on item four? >> okay, seeing none, public comment is closed. >> i move this to the full board with a positive recommendation. >> motion by yee, and seconded by tang and i want to say thank you for bringing this forward. and we could take that without objection. >> madam clerk, would you call item five? >> res lus, approving the agreement with the south beach marina to preserve, 101 affordable housing units in the south beach, apartments no the to exceed, $60 million. >> okay, thank you very much. do you have the mayor's office of

the u.s. bank and the state street bank, and these costs are for the bond council, and the rate savings and advisers and the rated costs and in addition the city will incur, the estimated ongoing, fund costs of 822,000. per year, to pay the fees for the new letters of credit of $150 million, again, provided by the u.s. bank and state street bank and that is showing in table two on page six. and we do recommend that you approve this resolution. >> okay, thank you mr. roads. >> colleagues, any questions? >> okay, we will move on to the public comment, anybody wish to comment on item four? >> okay, seeing none, public comment is closed. >> i move this to the full board with a positive recommendation. >> motion by yee, and seconded by tang and i want to say thank you for bringing this forward. and we could take that without objection. >> madam clerk, would you call item five? >> res lus, approving the agreement with the south beach marina to preserve, 101 affordable housing units in the south beach, apartments no the to exceed, $60 million. >> okay, thank you very much. do you have the mayor's office of

the u.s. bank and the state street bank, and these costs are for the bond council, and the rate savings and advisers and the rated costs and in addition the city will incur, the estimated ongoing, fund costs of 822,000. per year, to pay the fees for the new letters of credit of $150 million, again, provided by the u.s. bank and state street bank and that is showing in table two on page six. and we do recommend that you approve this resolution. >> okay, thank you mr. roads. >> colleagues, any questions? >> okay, we will move on to the public comment, anybody wish to comment on item four? >> okay, seeing none, public comment is closed. >> i move this to the full board with a positive recommendation. >> motion by yee, and seconded by tang and i want to say thank you for bringing this forward. and we could take that without objection. >> madam clerk, would you call item five? >> res lus, approving the agreement with the south beach marina to preserve, 101 affordable housing units in the south beach, apartments no the to exceed, $60 million. >> okay, thank you very much. do you have the mayor's office of

the entire state. the community food bank of new jersey in egg harbor township serves atlantic, cape may counties and more 14% of the population in each county is food insecure. it's no secret that the cost of living in the state is high, and, fortunately, it's not often enough for one person to scrape the money together to feed a family. >> about half of the households we serve do have one member, at least one member who is working. that's what we're seeing. this is the working core. we are not seeing, you know, droves of people who simply are not working. >> how can you help? hold a food drive in your community. you can donate money. vehic volunteer, or advocate. follow new jersey food bank on social media and share their content. >>> working to improve the relationship between cuba and the united states, pennsylvania lawmakers begun a sports exchange with the island country. they visited pennsylvania lieutenant governor stack and ired out details of plan to feature boxing and baseball athletes from cuba and pennsylvania. they already have a boxing match set set in pittsburgh in july. we're told they ar

banks to eliminate political heat on megabanks. >> i think the guy that wrote it is a jerk. i'm stating a fact. we are one of the biggest community banks. >> now, camden fine was on "squawk box" this morning and here was his response to being called a jerk. >> i guess we found out yesterday that if you have a policy disagreement with mr. dimon, you are a jerk. i mean, that's his response? really? i think he was channelling his inner mr. potter, you know? mr. potter said something akin to that to george bailey in the movie, "it's a wonderful life." potter wanted to turn bedford falls into potterville. jaime wants to turn america into jaimeville. >> this feels personal, right? >> the sense of the argument that jaime dimon is making, in the shareholder letter, his point in the case is when he looked up, you know, the bank that wrote this and whatnot, they were a client of j.p. morgan's. his point is, whave to stop the bank on bank violence or rift. it's not to say they have to be id logically and policy wise on the same page. smaller banks often need the big bank to be their bank. >> if you are try

of the united states which was our central bank. do you see a potential battle similar to that? peter: i see echoes of jackson and thomas jefferson, too, and frankly, abraham lincoln. i'm choking as i say this, in trump, in the sense that he's seeking to say, i'm a frontiersman, a man of the people. there's nothing about his authenticates that claim. the difference, and the reason i don't think we can see in trump ishoroughbred populace, there's no governing principle that motivates. week ago i had no idea at all what his views were on something as important as the bank and i couldn't say -- same thing about request of any of the other republican candidates. that's what's so interesting, about populism against the interests with donald trump because there's so many different frequently contradictory veins within what trump has articulated. >> question number two, i think, over here and we are running please make late so the question brief. >> simple question. what role should financial settingy play in monetary policy? hogging thee

consultation with this committee for ongoing efforts was safe efficient travel to and from the united states banksyou may have. >> the principal deputy secretary from the u.s. state department. >> thank you chairman and ranking member distinguished members of the committee we welcome this opportunity to testify on behalf of the department of state with the process and russia now to have that arrangement between guinness states with the transportation between the two countries the longstanding practice to lead their delegations with bilateral aviation agreement arrangements in consultation with department of transportation and commerce and others that is appropriate shortly after the president's 2014 announcement that the united states would take a number of steps to work towards normalizing relations of cuba and after coordinating with relevant agencies we approach the government to wrote prose those technical discussions to restore commercial air service for many years all air travel has been through a charter service id adequately served that will level of travel between the united states and cu

the united states are below $80,000. the lowest threshold. 99.2% of the 401(k) balances in the united states are below the $800,000 threshold. so if united states banks respond like united kingdom's banks did to this rule, we might find that less than 1% of americans will be rich enough to receive retirement advice at one of our nation's largest banks. we should call this the only the rich retire rule. americans with smaller retirement savings or americans who are just getting started out saving for retirement are at the greatest risk for losing access to affordable retirement advice. unless you have at least $80,000, you may not able to get advice. your spall account won't be worth the liability to the advisor. this rule will force low to middle-income americans to invest on their own without advice. this means americans may not save at all or may make poor decisions at critical times. younger americans, minorities and women are the most likely to be hurt. 95% of americans between the ages of 25 and 34 with 401(k)'s have balances under $80,000. 75% of black households, 80% of latino households age 25 to 64 have less than $10,000 in retirement saving

the banks go under because of npl? >> i don't shall the four banks are state owned. 80 some odd% of the four big banks. i don't think that is a risk on any level. what i think needs to be sped up or actually articulated better is the move of provincial debt into a municipal bond market. the whole idea with the u.s. savings & loan crisis in the 1990's is happening in china where they'll take provincial, nonperforming scary debt and move it into some asset. so the risk in china right now is that they don't produce a yielding asset onshore and money keeps looking abroad. >> capital control is done. all right. thank you so much for that. we got to go. all right. our brand new show "bloomberg markets middle east" is coming up at the top of the hour. what do you have for us today? >> angie, very good day to you. we have got an action packed show. we'll kick it off with a conversation. i had a discussion about oil, the region where he sees the best investment. side by side with that we'll break it down. what is the bigger conversation in terms of emerging markets? where are the biggest opportunities? will oil

while the casino generates only a small part of the state's revenue, its many banks, which provide anattractive way to protect your money from the tax man, earn much more. there is no income tax here, but the prince collects plenty of money in value-added taxes, real estate taxes, and corporate taxes. nearly all of monaco's sights are packed in a cinderella neighborhood atop its fortified hill. its impressive aquarium, which proudly crowns the cliff like a palace, was directed by jacques cousteau for 17 years. a medieval castle sat where monaco's palace sits today. the palace square features a statue of françois grimaldi, a renegade italian who captured monaco disguised as a monk in 1297. this first ruler of monaco established the dynasty that still rules the principality. today, over 700 years later, the current prince is his direct descendant. palace guards protect the ruling grimaldi family 24/7. and they change with the pageantry of an important nation. every day at about noon, tourists pack the square to witness the spectacle in this improbable little princedom. [ band playing ma

community banks ever since he now serves as a delegate for the northern half of violent for the independent community bankers banks for testifying we welcome your statement. >> dash as you stated unprecedented in a sea of community bank the of old-line -- uelwein i want providing products they need while treating them like friends and family measured by the relationships and individualized hands on service located in northeast iowa serving those of livestock soybeans and corn. the community banks in the rural areas with virtually every small town to an outstanding job with credit in good times and bad. role committee banks provide more than one half of all credit from the banking sector. most barbers at best are breaking even and only if they have low debt levels the most threatened are the youngest and small if they have no financing backgrounds those are the most times but the continuation of low farm prices will cause many farmers to exit including those better strong and we do urge senators so they don't overreact my testimony makes recommendations on usda farm loan programs to keep the farmers and business. regarding ses ending 2015 total assets was three 1/4 billion doll

in the united states in 2008 the great state of nevada, the government of the state of nevada had, when the real estate sector was collapsing and construction workers were losing their jobs and banksg and imagine if the government of nevada had to go to the international markets and cap in hand in borrow money in order to bail out the banks of nevada and pay the unemployment benefits, and then of course the state government of nevada would go bankrupt and then it would have to go to the fed to ask for a loan from the fed and imagine if that loan came with strings attached. you will ruce pensions, social security, you will reduce expenditure of the state government of nevada by 30%, 40% and then what would happen is a downward debt spiral would start in nevada and incomes would shrink, debts would go up, and suddenly the state of nevada would be bankrupt as would its banks and then that contagion would take on a life of its own and it would move to missouri and mississippi and eventually it would hit california. and then, of course. >> and this is what -- >> and then californians would hate people of nevada and the people of nevada would be pointing fingers at the people of califor

the sucker u.s. to go to the bank to exchange. of course, the people just accepted the soil to note no one would have to go to the bank at all. in the united states i've accepteaccepta torn dollar billd dollar bills, dollar bills with pictures and numbers on that, take and even one with george washington's face cut out. if it has to serial numbers, i would get. but not in india. no one will accept toward rupees because no one will accept warren road peace. when i traveled in the i refuse to accept rupees and i conditioned to for perpetuating the whole phenomenon. it just keeps getting would. in somalia to, the opposite was happening. money with no legal value was thriving. the currency of choice for small transactions was the somalia schilling which is not legal tender. dollars were used for large transactions. due to a long running civil war the central bank of somalia had shut down, transitional federal government was supposed responsible for monetary policy but that authority very extended past mogadishu. from the legal standpoint at the time, the somalia schilling had roughly the same legitimacy as monopoly money. the notice regulation have b

the moment. it rose to 13%, and that is a good level. and above the bank statedt they needed for supporting regulatory purposes. the capital dictates how strong the balance sheet is and how much dividends the institution can pay when it has finished the turnaround program and a couple of years time. guy: we got new first quarter european bank earnings, creating a mixed picture for the industry. the chart shows yesterday a beat while bloomberg loan impairments declined and capital levels improve. profits are 25% to £793 million. analyst predicted £846 million. our clays going through this but you have profit down 24%. this number heavily affected by foreign exchange. michael: it is not as bad as it could have been. the investment banks need to hold up better than some of the they had a weak quarter, somewhat easier of a comparison. trading held up, better than expected. there is some nuggets good news, and a lot of the bad news came from businesses that are exiting. investors can say, if i believe they are going to get out in a timely manner, i can look past that.

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economy and on the host population, so we are hopeful, again, here, the united states has been instrumental in working with the world bank, other international financial institutions, turning the corner in that respect but really, we half to look forward, way to organize humanitarian and development responses in the future when there are new emergencies. the last thing i would simply thats it is very important as many refugees as possible are given the opportunity to move legally. we have moved -- we have heard a lot about irregular movement and we were talking about last year, resettlement to the united states, there were not pictures of asylum officers interviewing individually and a 7 -- a refugee for an hour and a half, taking down all of the information about their story, to validate them and to verify who they are in with a recovery from -- no, on cnn, we saw pictures of masses of people going through the fields of croatia, macedonia, serbia, as if that is resettlement in it is simply not the case as i am sure simon will elaborate. so it is very important that we promote resettlement, other legal avenues whether it

states. the brazilian impeachment processes back on track. the lower house had changed his mind. there will be sessions against the brazilian president. the senate votes tomorrow. illegallyused of using state banks to plug a hole in the budget. dayal news 20 for hours a powered by our 2400 journalists. thanks a lot. we have much more coming up on bloomberg targets, the european close. we are looking at the bloomberg dollar index. this is a five-day winning run it. it has come to an end. it is falling today. what a run it's been. it has risen by 1.5 percent. mark: i am mark barton. you've got some, we've got rain. lucky you. betty: i am betty liu. this is the european it's time for the bloomberg business flash u.s.job openings in the have risen for the second highest level on record. the number of jobs waiting to be filled rose to almost 5.8 million in march. demand for workers has remained steady. lockheedhas told martin to fix quality control measures in ships. delivery ofayed the a ship. secretary has reduced the rope ships that will be built from 40. a springtime come back has not come back. salesn -- same-store fell. comparable sales were down 10%. gap is the largest apparel retailer in the

centered in the second bank of the united states, which was our central bank. do you see a potential battle similar to that? >> i see echos of jackson and thomas jefferson, too, and flange, abraham lincoln. i'm choking as i say this and donald trump in the sense that he's seeking to say, i'm a frontiersman, a man of the people. there is nothing about his biography that authenticates that blame claim, unlike -- not so much thomas jefferson but andrew jackson and abraham lincoln. the difference, though, and the reason i don't think that we an see in trump a thorough pred populous, is there is know governing principlal. before a week ago i had no idea at all what his views were on something as important as the central bank. i couldn't say the same thing about any of the other republican candidates. that's the thing i think is so interesting. it's not about populism against the interests with the donald trump because there are so many different frequency contradictory veins within what trump has articulated. >> question number two is over here if i remember correct

board, everybody wants to be -- ol weinberg joins us yesterday and he was heated about the state of the italian banksthat they are truly the canary in the banking coal mine. your thoughts on the fragility, the combination of events that face italian banking. james: i worry about all the peripheral economies and their banks. when i look at the support that the banks have had an terms of, the european central bank, both buying debt directly and therefore allowing them to exit government debt at good prices. but also the whole challenge of target two. for yours who are not familiar, target two not like the federal reserve. they do not zero balance at the end of a period. there are vast and palance is. everybody knows, the commercial banks are going to be very sensitive to the resolution -- there are vast imbalances. the problem with italian banks is that media b anco, the fund that was set up by the government, atlantic, may accelerate losses. ermotti saidfrom about a cocktail of macro events. that perfectly gets to where we are this morning. francine: it is a balance of how much you cut or how much you

it happened east of the states outer banks. says a commercial fishing ship pulled before weree out of the sea and taken to a hospital in norfolk, virginia. billionaire businessman donald trump has reached the number of delegates needed to clinch the republican presidential nomination. he was put on top by small number of unbound delegates who told ap they would support him. mr. trump is the only remaining republican candidate left in the race. the nomination this summer in cleveland. in paris, right police used tear gas to rake up violent protest fordisperse crowds challenging labor laws. police made 16 arrests and estimated between 18000 and 19,000 people took part in the protest. global news 24 hours a day powered by our 2400 journalists in more than 150 news bureaus around the world. i'm mark crumpton, back to you. scarlet: thank you so much. data this morning shows jobless claims falling for a second straight week. by fed chairents janet yellen to determine if the economy is ready for a rate increase. alix: paul hickey is t

put this into perspective, the farm credit system, if the farm credit system were a bank, it would be the nineth largest bank in the united states and it is larger than 99.9% of the banks in this country. the farm credit system benefits from significant tax breaks, valued at 1.3 billion in 2015, giving it a significant edge over private sector competitors. moreover the farm credit system enjoys government backing formalized by creation of $10 billion line of credit with the u.s. treasury in 2013. it is shocking that nearly half of the entire farm credit system's portfolio is to individuals that each owe more than a million dollars. these are not young, beginning and small farmers and ranchers. the system now primary serves large, established organizations that do not need subsidized credit. it is clear that the farm credit system has become too large and unfocused, using taxpayer dollars to subsidize large borrowers. we urge congress to perform an autopsy on the system, to insure that their charter of helping young, beginning and small farmers is being followed. if it is not, we urge congress to remove the significant tax break

and then from the baking crisis but the history of the united states is the history of the banking crisis there was a panic you have never heard of and that led to the creation of that and at their core the nature of finance. you cannot get back all of the same time because it is a panic than healthy institutions become unhealthy. so the institution with the full oversight of the money. and i do love that treatment will undoubtedly take it is worth the give it to was that we will give you books in exchange. and to be escorted out of the building and not just here but anywhere. the central bank is responsible for that so the ones charged with protecting as system so what is money? and then talk about the banking field house in time for questions and answers and if 2009 north korea did something unusual even by north korean standards. they issued a new currency that takes two zeroes off of the bills so was declared one of 100 of the old currency it is not a new track that is a tool to fight inflation. but to the government would announce it would be worth 2750 but then and this is inherentl

bank. we have talked about nonperforming loans. dan: what is been forgotten in the last three months a miss this turmoil in the banking industry -- amidst this turmoil in the banking industry, this state rescue plan --the fact that monte carlo -- monte paschi has been searching for a deal. that has to be resolved going forward. anna: thank you for joining us. dan leaf green joining us. were --idents say they four president say they were 10%,to considering -- at down from 20% a month ago. investors are keeping an eye on u.s. payroll numbers that are due out today. economists predicting 200,000 workers were added last month. let's bring back into the conversation, lucy macdonald. u.s. datas link the picture with what is happening in stocks. i've got here on the bloomberg terminal which shows economic surprises for the united states. you can see in 2016, we had policy surprises. we had some moves to the downside and stocks as a result. are these two moving in lockstep? lucy: is cyclical and independent -- it is cyclical and independent. as far as the recent weakness, particularly in employment, that comes after a period of strong labor market. i think we have seen some short-term weaknes

old city where the phillies phestival brass quartet is performing a ceremony to open the second bank of the united states. they're starting a campaign to rebrand the district. they will also take center stage this weekend in fairmont park. for the first time the philly pops will perform a memorial salute, a concert honoring those who serve. it's happening this saturday at 7:00 p.m. it's open to the public. if you're a veteran and active military, philadelphia police officer or firefighter, you can get into the show for free with your families. also public school students, teachers and administrators can also get some free tickets. for more information and details, just go to our website, nbc10.com, or check it out on our app. by the way, nbc 10 are proud sponsors of the memorial salute this weekend. >>> since 2009, students have participated in the philadelphia youth orchestra. many musicians perform right now with the philadelphia orchestra. they're ready to welcome a new generation of talent to their ranks. maestro maurice skaliano is very involved with the philly pops. he'll tell us about auditions co

everything they can to pretend that iran is a normal nation, including having the american secretary of state urge european banks to do business with iran and disregard the possible risk of american economic sanctions. it's just unbelievable how far the obama white house is tilted towards iran. >> the administration says their efforts are all aimed at preventing iran from building a nuclear bomb, and they say that is a success, but time will tell. ambassador john bolton, as always, thank you for your analysis and insight? >> thank you. >> arthel? >> also in the middle east, there's breaking news in iraq this sunday. isis terrorists launched a deadly attack on a natural gas plant near baghdad killing at least 12 people. smoke and fire gilg the air in a chaotic scene. officials say a suicide bomber used a car to ram the main gate allowing several more fighters to break inside the plant. conor powell has more now from our middle east bureau. conor, what's behind this increased aggression by isis in iraq? >> reporter: today's attack the latest in a string of bombings in and around baghdad in the last week or so. aft

mayor kenney and council members helped reopen the second bank of the united states.ewly defined district encompasses parts of the delaware river, waterfront, old city, society hill and independence mall. >> it's been quite a turn of fortune for a horse named lily. she was abused and shot dozens of times with paint balls. but now she's getting a new home and it's thanks to comedian jon stewart. we'll have more on her journey to recovery at 5:00. plus this -- >> i felt this poom, and i was flying with the pocketbook. >> a trip to the store took a frightening turn. her warning for other shoppers. >>> plus, new video of the suspects who attacked her. and experts say, it's the time to fly. why airline prices are cheapest they've been in years. and how long that's going to last. first, a live look at ben franklin bridge. there it is. beautiful day out there to roll down windows and feel the breeze on the drive tonight. 87 in pennington, mercy county. 87 in bayer, new castle county. d plane on its way to lehigh valley as part of a trip around the globe. a look at flight tra

the debt's forgiven. >> what happens to that deficiency? >> every state has different rules, but here, the bankhat difference. you could do the short sale, go through all the steps, jump through all the hoops, and if they didn't specifically state in their short-sale-approval letter that this deficiency is waived, they could come after the short sale and sue you. >> and then a lot of people are still forced into bankruptcy. >> if there were no other options left, bankruptcy tended to be your hail mary to get you out of that debt. it wasn't a great situation or a resolution for everyone. >> there are a lot of people out there that still don't have the credit to be able to go out and purchase a home. >> folks that have gone through this, i think, are a little bit gunshy to jump back into a mortgage. >> when you lose your home, you just don't disappear. so now they're turning to the rental market, and they're getting past their delinquencies and they're gonna be in a position to be able to purchase again soon. >> i know all this information can be confusing. when we come back, i'm gonna break it d

mayor kenney and city council members helped reopen the second bank of the united states.he rebranding comes just in time for the busy summer tourist season and the dnc. >> make people feel they will never forget the feeling and they will go back to st. louis and texas and florida and tell friends what a wonderful time they had in philadelphia. >> the newly defined district encompasses, old city, society hill, independence mall. >>> as summer tourism season approaches, it's starting to feel the part outside. >> many neighborhoods hit 90. tim furlong spent the day outside. people enjoying the day that feels like summer. >> now that's the sound you like to hear in late may. but for the regulars at the golf club in wilmington, guys that try to play every single day, today has been a buzz kill. >> terrible. terrible. brutal. >> it's not squishy. it's nice and sunny. >> reporter: today's weather is a hole in one. the sun is hot but feels nice. the swim club and other local pools are about set for the busy memorial day weekend. folks are eating outside the logan house and bernie

the highest quality banks. those are jp morgan and wells fargo. clearly the highest quality banks in the united statese globe. 3% dividend yields, very modest valuations. and combine it with another blue chip high quality company that's selling 20% off its lows and that's disney. we think those are three very good picks right. liz: yeah, they're all moving higher. jp morgan jumping about 2%. >> purely gossip. number one you hear a lot of talk coming out of viacom that sherry redstone, they want out of viacom. what i hear is that they would have less run cbs who run the whole thing. that sherry redstone gets along with him very well. and that's one bit of gossip. the other bit of gossip is we're going to be hearing a household name once bayer mon santos gets done and his name is michael cramer. liz: and, by the way, -- not to keep ping-ponging back but this news flow is very quick, guys. if you put up cbs, which has run, cbs has outperformed -- one would argue overweight years, what viacom has done. in a very good position. in fact, you want to talk scuttlebutt, has learned that was seen at michael's r