ubs shares falling 3%. on investor concerns about gross margins in wealth management this despite beating second quarter net profit extechtation expectations credit suisse reported a record level of assets under management during the second quarter. the swiss lender saw it's strongest inflows in six years helping it post 78% rise in net profit both banks warn, as did jes staley talking to geoff and karen later on that low levels of volatility and geopolitical concerns were weighing on market activities before we get to carolin, volatility, the banks moan when there's too much volatility and now beknomoaning too little volatility isn't that interesting when a happy goldilocks level of volatility, and they're not seeing it. carolin roth carolin roth has more. you have spoke to both the men in charge. >> i think there's a couple reasons. first, i would say that there's less surprise potential when it comes to ubs they have already delivered on their restructuring programs when it comes to credit suisse, when i

we also heard from ubs.-quarter profits, and also both wealth management units delivered higher results, low interest rates squeezing margins. but why is the stock down? it is because of the ratio. we saw it at 13.5% in the second quarter. down from 14.1% in march. that is what is causing the shares to drop the most since january. and looking at amundi. second-quarter profit. its first net fund outflow since 2015's listing. anna: that us talk banks further. bbva boosting its lending. with us for an exclusive interview is the cfo. thank you for joining us on the program. and congratulations on the numbers. you seem to be doing very nicely in these emerging markets. are you seeing a pickup in the credit demand in the spanish market? >> thank you for having me. the quarter shows the first increase in lending in the spanish system. thanks to a pretty strong recovery that is taking place in the spanish economy. our research team has very recently upgraded the growth estimates for the country. they are expecting s

ubs is down by 3%. credit suisse up by 3%.witzerland's second-largest lender. 78% rise in second quarter profit. lower expenses lifting profit at the global markets trading business. the biggest contributor to the top line, even as revenue did contribute. chief second of jobs in selling down bad assets to reduce reliance on volatile that trading in favor of more stable businesses. b.n.p. paribas is unchanged today. it is still possible to make a big investment banking franchise. of wall street for another quarter posting a standout performance to drive better than expected rough it. equity and prime services revenue jumping 26% amid surging demand for derivative products. b.n.p. paribas showing you how it's done. >> i love how france is putting it up to the swiss. let's continue with the markets now as investors failed legislation on capitol hill and keep their eye on some disappointing earnings. oliver renick joins us with the latest. quarter but we can say it is disappointing. if there is a pullback it cannot be blamed on co

ubs not so much.particularly upbeat yesterday about the european economic momentum despite the fact that deutsche bank earnings were the weakest in three and a half years. part of the reason as he can see on the chart is because of deal curve steepening story in the euro area., which is positive for banks. it's continuing and becoming more correlated with deutsche bank shares specifically. that show support there as well. mark: the macro picture is fascinating. the economy is strong, but you have the euro, the elephant in the room, resting at it ties levels since january 2015. how will that play out going forward? kristine: that is something these companies will be watching for. we had a survey and bloomberg news earlier showing a pain threshold for most companies. we are about three cents or so off of that level. it depends on the currency here and different factors like the ecb. mark: which the chart highlights. kristine: you can see the correlation is becoming more negative where a stronger euro wo

we hear from the bosses of ubs, credit suisse, barclays, and more. european tech stocks follow asia and america lower after amazon result raise concerns about earnings in the sector. and the senate says no. the so-called skinny repeal collapses as mccain rebels. trump tweets, let obamacare implode. this is "bloomberg surveillance." checkout european equities. looks like we are down for the third day in five. on track for the second straight weekly drop. earnings once again front and center. euro of against the dollar. 01.7 u.s. 10-year little changed. 2.7% annualized rate. that is what we are projecting, or the economists we've surveyed. 1.4% was the prior quarter. the rest of the economy giving less of a lift to gdp. crude oil lower today, headed for the biggest weekly gain in the month. sliding u.s. inventory, stronger demand, raising speculation. oil, $49 and change. let's get the bloomberg first word news. here's taylor riggs. taylor: the u.s. senate has rejected a move to repeal parts of the obamacare health law. it came after john mccain joined

matt" the investment bank saw -- ratededge but ubs by ubs has purposely shrunk its investment bank over recent couple of years. ubs, you see a juxtaposition of quiet activity being muted in the investment bank and we heard this from john cryan and we have heard it from u.s. banks on wall street. client activity being active and as high net worth individuals go, or their wealth management division, private investors were getting into markets and they told us that, especially in europe where they had been out and risk-averse last year, getting back in and at risk on this year. whereas the hedge fund clients are not seen any activity from them because there is no volatility where they make money. investors like private clients, family offices, they were getting back into the markets and getting very engaged with the markets. jonathan: and important distinction. you have to probably get a airplane to berlin. thank you. hanging around for that view. great to catch up. for more on the health of the european financial sector it -- sector, we turn to stephen parker. about the situation with arc

banks, down but some notes coming out ubs note on earnings pointing to weak investment bank revenues.o the stock slipping a quarter percent. >>> ubs reporting a 14% rise in second squauquarter profit the bank's ceo says he is still cautious and the company is suffering from low volatility. ubs stock down 3.6%. >>> bmp paribas reporting a better than expected second quarter profit the bank was helped by strong results from its corporate and investment banking division. >>> credit suisse reporting a 78% rise in second quarter profits. the swiss bank benefited from a strong inflow of new money to the wealth management business >>> shares of adidas are rallying following upbeat second quarter earnings yesterday they also raised full-year guidance that news came out midday or so yesterday. shares reacting to it today in german trade up about 9% in trade at the moment in europe >>> still to come, more big earnings movers including starbucks and intel. first as we head to break, today's national weather forecast from nbc's bill karins. >>> good friday morning to you we will be watching heavy

doing well despite low volatility from ubs. i think the increased volatility will be better returns. >> jack, i don't know how, somehow i made it this far without mentioning brexit. i feel almost obliged to bring it up. what effect is this having on hedge fund industry, many based in london. >> london has outside share, 80% of total assets. clearly it matters and matters in three main ways one, a lot of stock working at hedge funds, eu member states outside the uk, give them confidence to continue to work there, attract in new talent secondly, people want to have access to european investors working hard to get better understanding of that. and thirdly, a lot of funds that are managed that are new domicile funds, usage funds managed by hedge fund managers, how much are they allowed to manage from an operation in the uk as opposed to operations outside. those are concerns for those trying to get greater certainty. >> let me finish with one question on europe as investment opportunity. one thing i am struck by is enthusiasm for a

you just have to scrap the metric it is you want to understand the stock as you know, if you read ubseview report today, netflix trades on content tracking and subscriber growth. you would have to estimate how content drives subs worldwide, and for that, ubs is helped by its evidence, which while sounding like ncis ubs, loosely based on successes like 13 reasons why, house of cards and orange is the new black. when i interviewed the ceo of netflix, he explained one of the great streets behind the love for netflix has to do with how few sereries are ever canceled there have been some high profile cancellations of late, which calls into question the company's content budget, so it can't afford a lot of failures spotty execution for expensive originals he points out might put the future at risk as the company burns a lot of cash. i say given the original content they put on, the failures are inevitable that's the law of large content. but the record is darn good, much better than everyone else, and that matters i always remember hastings telling me they produce films by matching with wha

the global cio at ubs management.on the show, europe's biggest banks beat the estimates. more with the hsbc finance director. this is bloomberg. ♪ 24 in hong kong. -- 2:24 in hong kong. i caught up with the chief financial officer, the finance director to get his first interview of the day. very hard for us to consider a country other than france or post-brexit operations. for us the transition represents up to 1000n possibly boys from the u.k. banking opportunities. transitioning up to 1000 employees to support our customers. a very natural move for us. all those capabilities and technology and capability are already present. tois the most efficient form adopt. the world plumbing of of finance is in london and it is a darn hard thing to get the whole thing to move. would you concur? there is a lofty challenge to moving the plumbing. >> exactly right. london is the foremost financial center of the world to at the drop of a had try to re-create that outside of london with the and manage theve complexity around that. a

chairman of ubs is here. kentucky senator rand paul will weigh in on health care bill and jim grant is with us talking about janet yellen and interest rates. first breaking news, president trump landed in paris, he's there this morning where he is meeting with french president emmanuel macron ahead of bastille day celebrations, that's tomorrow. president trump expected to attend luncheon before meeting with french president today. joining us right now congressman claudia tenney of new york, former small business as well, congresswoman, so good to see you. >> thank you, great to be on this morning. maria: do what's do you expect out of the meeting from president trump and president macron? >> it's interesting that the president is engaging in so much symbolism. the trip is symbolic of reigniting freedom, and interesting that he keeps going back to historic roots. if you remember in g20, newly elected macron created his own party and pushed his way to be next to the president. i thought was really interesting c

expect to find this. >> the ub invited guest trying to enjoy one last day in the hotel and casino. >>> plus anxious for a deal on the health care bill. nbc 10 speaks with a local business owner who says he's been waiting for years for changes to obamacare. the solution he's hoping for from lawmakers. >>> plus right place at the right time, how good issamarita saved a baby after a road rage incident. that's next. >>> first here's a look at the closing bell on wall street today. the markets were up today. >>> this is a firenado. time lapse video was just released from california. it occurs when wind comes into constant contact with the tlams and whips them into the air. the twister-shaped spiral of smoke and fire. >> a cell phone records as a group of people rescues a family through their crumpled mini van. there's a baby inside that van. outside a water geyser shoots from a fire hydrant that was knocked over. the van was hit by a drunk driver. they later arrested him. the good samaritans are able to get everyone out including that baby. >>> we are in the middle of a heat wave bringing

seen recapitalization across the sector look at ubs stock, it is up 40%.ut we also talked about investor confidence. still saw a lot of uncertainty take a listen. >> the geopolitical front is, you know, quite worrying in respect to what's going on every day, so investors are fundamentally touched by all those, they need to see very prolonged and stable pattern going forward. zblm this is the world's biggest wealth manager, very much present in asia. the ceo told me that the cash balances on part of some investors are still as high as 35%. guys, that shows you how nervous some investors are back to you. >> big positive in the short term for banks has been slightly more hawkish comments, and yields picking up somewhat >> but the big question out there is whether european banks will be able to benefit as much as u.s. counterparts we know it is a positive for u.s. banks, the question remains for european banks. >> thanks very much. great to see you. >>> tesla's first model 3 sedan rolled off the assembly line elon musk tweeted photos saturday night he can have

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with me is dean turner, an economist at ubs wealth management. thank you for coming in.hat 0.3% figure that many are predicting, how does that set in the context of how the uk has grown over the last couple of years, and how the last couple of years, and how the rest of the world is going now? if we get to positive numbers, it would mark the 80 consecutive quarter of positive growth. that is a good outcome. but you need to put that in the context of the four yea rs that in the context of the four years at the start of this year. the quarter on quarter growth rate was averaging at 0.6%. so it a slowdown. and what about europe? compare to the uk, how is it doing? this is an important point. what we are seeing globally with the imf upgrading forecasts of the globe, and with the sentiment numbers coming out of europe, this suggests strong activity over there. a small economy like the uk, we expect to be doing better this time of the cycle. -- smaller. so you are saying we should be expecting the uk to do better?‘ couple of trends are following the brexit vote and are coming

let's get back to the cross asset strategist at ubs wealth management and john roe from elgin.ing earlier geopolitical risk and how markets have had this amazing capability to shrug it off. this year the dutch and french elections, u.k. election was a surprise. one in germany in september. to what extent are that election throw up a shock. ? >> the german election is interesting, all of these critical events, the consensus would be it is the one that we have the greatest certainty of the outcome that angela merkel will be reelected. this fight the greatest certainty of outcome, also the biggest tail risk. antacid we have leadership coming from france in the european project, if germany lost its figurehead, the impact of the markets would be far greater than any adverse outcome we have had previously, brexit or the italian referendum. wayill see this only right but the biggest tail risk. mark: is it too early to position, to hedge, to protect ourselves against the terrorist -- tail risk? >> the best way to navigate such tail risk is to spread a portfolio through diversification

that is william vereker of ubs. thank you. william: thank you. our thanks to bloomberg's ruth david. coming up, vladimir putin is retaliating against new american sanctions by ordering the u.s. to cut staff at its embassy in moscow and other facilities by nearly two thirds. we will have the latest. this is bloomberg. ♪ vonnie: it's a beautiful sunny day in midtown manhattan. live from bloomberg world headquarters in your, i am vonnie quinn -- in new york, i am vonnie quinn. this is "bloomberg markets." let's take a quick temperature of the markets. the dow jones industrial average is the winner, up for 10 severe percent. -- 4/10 of a percent. the nasdaq is lower today by a quarter of one percentage point. we will dig into the details and individual movers and a little bit. let's get the first word news from mark crumpton. mark: president trump says retired marine general john kelly will do a fantastic job as white house chief of staff. he was sworn in this morning. kelly replaces the embattled reince priebus. he reportedly will have one did, that

fines on both sides of the atlantic, having already hit the likes of barclays, rbs, deutsche bank, ubs before we go, a quick look at what the markets have been up to. you can see the figures in the asian markets. we have the ftse. the nikkei has opened after a public holiday yesterday. lots of markets reacting to china's figures yesterday. you can get in touch with me on twitter. buying a knife on line is set to become harder, as new government proposals aim to restrict children getting access to knives. anyone buying a knife on line in england and wales would have to pick it up in person with id, to stop a system where anyone can buy a blade on the internet and have it delivered. here's our home affairs correspondent tom symonds. this is the sharp end of the battle against knife crime in britain. police in birmingham make yet another stop and find yet another nice. without good reason, it is illegal to carry anything bigger than a three inch penknife. —— knife. but this is what police have found in london, including a so—called zombie knife, shown to the home secretary. why? it is ill

we also speak to the ubs ceo.s, the biggest rivals in switzerland, reporting on the same day. this is bloomberg. ♪ reporter: this is "bloomberg surveillance" and i'm taylor riggs. the end is in sight for libor. it will be phased out by the end of 2021. british regulators will try to replace it with a more reliable system. became corrupted after traders were thought trying to manipulate it. republicans are still looking for ways to get rid of obamacare after the senate rejected a plan that would repeal major parts of the affordable care act without replacing it. conservative supported the plan, but it would have left millions of americans without health coverage. congress struck a deal that would limit president trump's power to put sanctions on russia. russia says if the bill becomes law, president putin will decide on a response. president trump's chief strategist steve bannon wants to make the rich pay for middle-class tax cuts. bannon what have those making more than $5 million a year pay a top tax rate of 44%,

the pennsylvania school employees retirement system wants to revoke two allentown teachers' benefits ubs because they haven't taught for years. instead they worked in the union office on school time. those teachers stand to lose more than $76,000 in pension payments. the ruling could ripple through pennsylvania schools. >> are these teachers ease pensions in jeopardy? >> oh, yes, absolutely. this money was taken from taxpayers, but ultimately goes to fund union employees who work on a full-time basis, sometimes for decades. >> the pension system isn't the only thing threat i don't think teachers absent from the classroom. at 11 $, our investigation reveals the new law moves its way through the capitol. >>> the governor of new jersey made wave when is he hits the shore. does he have his eye on a bigger prize. his beach-day drama sign that he's looking beyond new jersey. >>> it is all love. it's all respect to you. >> mary's message, her plea to her local fans and how people are taking it to heart. the world's greatest recipe... meat and fire. a simple combination that has now been mastere

first, we have ub-40.. >> steve: yeah. >> jimmy: it's a bad name for a a birthday party. [ laughter ] great name for trump's approval rating. [ applause ] yeah, ub-40. next up we have friskies. well, that's a good name for a a cat food. it's bad name for an hr department. [ laughter ] >> steve: that is bad. >> jimmy: it's great name for a a tsa agent. [ laughter and applause ] here you go, just let me on the plane. just let me on the plane, please. after that, we have yankees, there you go. [ cheers and applause ] that is a good name for a a baseball team. that is a bad name for a a massage parlor. >> steve: what? [ laughter ] ♪ yankees! >> jimmy: that is a -- it's a a great name for trump's handshakes. [ laughter and applause ] there you go. >> steve: "get in here." >> jimmy: up next we have white walker. well, that's a good name for an evil character on "game of thrones." company. [ laughter ] it's a great name for mike pence on a treadmill. [ laughter and applause ] white walker. >> steve: he's a white

ubs, the banks in general are going to be holding the market up a little bit today.nside, you see shall, and then you see gladstone and the drugmakers, the commodities producers and the utilities there on the downside as banks relate look to beat gainers today. anna: they do, don't they? the banking sector doing well. the tone with european bank earnings with this scene. strong inflows from clients in areas where the bank has set up recruitment of private bankers. manus cranny has been speaking to them. let's go to manus now. fairlys a very -- bullish statement and he has been met with a bullish response from the share prices. manus: absolutely. the stocks are performing well as matt just said. they are hitting the upper end of what they promised in the market. in there at the top end of that ardi was bullish and he said he would not set an upper boundary for himself. for him, all lights are green. he hired 166 bankers last year and that is working. he will look at an inorganic tragic. when it comes to a cry from the clients, equities. , equities, and equities obviou

host: ubs to vote next week on a budget resolution on the house side on the hill. what are your own priorities? guest: what they are loading this up for the tax reform for the finish line. i'm the minority opinion that i would like to see is take that on in a bipartisan way. plan a has been followed and is what a budget vehicle is designed to do. goal thate biggest opens up. budget,riorities of the with to tackle the national debt. i appreciate chairman black, a great woman in congress who is a leader amongst us on the republican side. she has done work to get this budget to the finish line and i applaud your efforts. taking on the national debt, private debt prioritizing our spending is something we have to do. people need to come together and say what will we stand for. there is common ground of the military. to what were we may have gone too far and reduce spending. that puts men and women in harm's way when they're asked to do their job they are trained to do. the military national debt, i appreciate with the budget is going and let's take on the -- take that o

a's fans to look at the season as glass half full, but bottom of the 2nd, goins drives in two with a ube corner to make it 3-0. gray goes six innings, allows four runs, but none earned. jays win 4-1. >>> lose/lose situation for this rangers fan. he drops the beer and misses the ball. look at his son. >> should have taken lessons from this girl at the fort wayne king cats game. the ball lands in her cup, and she drinks and keep it is baseball! we'll be right back. is (man) hmm. what do you think? ♪ (stranger) good mornin'! ♪ (store p.a.) attention shoppers, there's a lost couple in the men's department. (vo) there's a great big un-khaki world out there. explore it in a subaru crosstrek. love. it's what makes a subaru, a subaru. [ light music playing ] you've wished upon it all year, and now it's finally here. the mercedes-benz summer event is back, with incredible offers on the mercedes-benz you've always longed for. but hurry, these shooting stars fly by fast. lease the c300 for $399 a month at your local mercedes-benz dealer. mercedes-benz. the best or nothing. tomorrow morning at 4-30.

afternoon, but 5:30 when we started hitting the rain in the area.tilly we went west to bristol, jivey ube for a little bit where thousands of people have their tents up and umbrellas up, getting ready to watch chris stapleton take the stage at 7:00 p.m. in the meantime, they're trying to stay dry. we made a u-turn headed back down i-66. right now and we are approaching the fairfax area and the traffic is starting to here.up i'll tell you what we have been -- ng, though is a lot of when it's this wet out here, the rain coming down as ha safest to t's always slow down and keep a safe carance between you and the ahead of you and also keep your headlights on if you have your we doield wipers going as right now. so that's the latest live out mobile track 7 driving back to airfax, kim, you. kimberly: good advice. stay connected with the storm watch 7 team here on air and at wjla.com. you can also download the storm watch 7 app to keep up with all these weather changes and look for instant updates on our pages.k and twitter new at 6:00 tonight, sadness in family.. news for more than 45 years, wr

ubs management's outlook. ♪ rashaad: you are back with "bloomberg markets.": a quick check of the latest business headlines. is plunging on a potential merger with showa shell. just ever 12% at the moment. a different story over at showa shell, that stock has been jumping on the news. idemitsu kosan is facing opposition from the founding family which owns over 34% of the stock. showa shell would dilute that below the one third needed to block the merger. rashaad: millions of dollars in they have been frozen. it is struggling with a cash squeeze. goods retailer rb says shanghai tang is struggling. it ranks behind european brands like chanel comedy or and beauty. opec output rising to the highest this year. member nations exempt from output curves are pumping more. market going on with the , it is on its longest winning streak in a while and it was a one percent.f is it fundamentals or speculation? >> i think it is a combination of both. certainly from a structural point of view it was a little bit more challenged. short-term, we've had some shortcoming of what

wayne gordon is the executive director for commodities and fx at ubs wealth management.o have you. what are you looking for from this meeting? is it coming on board, some of these nations that so far have an exempt? >> sure. thomashaving a doubting moment, doubting markets are rebalancing, but the evidence is clear. as we look at numbers going into the third quarter and the fourth quarter, we see the oil market in a .7 million barrels a day .9 milliond we see barrels a day deficit in the fourth quarter, so we see the deficit increasing over the next couple of quarters, and we think that will start to tell as we continue this journey as you can describe it since last november. it is also important to realize that u.s. oil production is topping out. a lot of the negativity around oil and the push back on having a bullish oil view in the next 3-6 months is people say, u.s. oil production continues to accelerate. that is not the case. the market is constraining. oecd inventories are coming down. to see,what opec wants but the market will be disappointed in the next week rela

set us up for friday, what is the best case from ubs?oo far from consensus here. we think the labor market is continuing to grow at a decent pace and that should affect the fed as well. do we get elusive wage growth or do is tell the story that unemployment will grind lower and then it will come or the inflection point is around the corner? is that the story for ubs? themos: not necessarily. -- we haved that found that it has declined. wages typically respond to inflation rather than lead to it. wages will probably mostly reflect trends. we expect decent growth and a rebound from the lower realizations of the first quarter. we don't expect a tremendous surge of inflation. higher than the current trends but not a huge amount. jonathan: for investors and market participants looking to get bullish on the dollar, do anything in the data that would enable them to become constructive and get back on the dollar-bull market bandwagon once more? themos: short term. that may play out the sense that , the euro is already reasonably high, to expect

we also have the ubs ceo. both banks released earnings on the same day.is is "bloomberg surveillance." let's get to the bloomberg is this flash. -- is this flash. -- business flash. concerns to defuse that they colluded with other german automakers. eu and german authorities are looking into the matter. grab iseast asia, getting help in its battle to fight off uber. uber andetes with markets from malaysia to thailand. more trouble from wells fargo. regulators are asking about a mistaken data breach. a lawyer for the bank accidentally released information on 50,000 pounds belonging to wealthy customers. that is your bloomberg business flash. tom: thank you. francine lacqua in london. edeker with morgan stanley. we showed a chart earlier on bbxy. let's revisit it again. we need to remind post that the lift we have seen in the dollar since 2011, is that lift broken? nd ofou say the tre strength has been broken? hans: we are at least writing the trend. over the next three to four weeks, the u.s. dollar may be at 2.5% to 3%. this may be something to write home

manager, later, ubs live from new york and london.rg. ♪ ♪ alix: if you are a bond bear, you celebrated last week. two-year treasuries are at a decade high. you can see the additions of short positions in the last week. jason trennert and greg davis still with us. is the best trade in a bond market now? greg: we are favorable in terms of breakeven expectations. we think the fed will be successful in raising inflation in the economy. when you look at breakeven at 175, we think that could move closer to 2% target. that is one area we are favorable on. alix: there is a conversation you will not see action in the long end of the curve, do you agree? greg: i think it is dependent on overall inflation in the marketplace. to the extent the fed continues to push on raising interest rates a little more aggressively than what the market prices in, that will help keep the longer end of the curve anchored. we think that the longer and will have a hard time in this environment of muted inflation to rise significantly from where we are now. alix: wh

let's get more with bhanu baweja , ubs head. or, when to september, we start rolling the balance sheet off, and december, we start increasing rates? do i think of those two as a package, or do i think of them as separate events? >> they are a package, but there is a sequence.. more likelyey will go for a rate hike. lael brainard said yesterday they do want to get rates up to a certain level. so, there is a threshold. in case they need it to, if the economy were to unexpectedly tank, they would cut rates again. they want the policy before they start moving on the balance sheet. she is also quite clear on the difference between these policies. the shortened rates, the policy rate, has an impact on the dollar, which is why she does not want that to be pushed too far. she maintains her stance that the real, terminal rate for the fed is close to zero. can go.nce sheet the reason why her testimony was regarded as dovish is because she said the terminal interest rate is still zero, and that we are almost there. we don't have a lot more

judge jeanine: don't you think they sat down and said, it behoostles ube -- -- it behoovet rid of obamacarethen they can't figure out something. who suffers? are the ones like senator paul, senator cruz, susan collins, are they the ones who will suffer or are people going to see them as a hero? >> i think what people want to see is a true free market system that enables the american people to go out and purchase quality healthcare for themselves, and for them to have those decisions they can make for themselves. the thing that when you look at what is happening right now, they could have easily gone back and passed the legislation they passed in 2015 that president trump vetoed and that could have been and easy starting point. judge jeanine: the ones who voted for it are now against it. that's up to the republicans now to say what are we going to do? are we going to take them down based on their own hypocrisy. medicaid. the medicaid we are talking about that seems to be the biggest issue is not that it's being increased or is it being increased? >> well, the things, medicaid was expanded. m

we talk bonds with ubs asset management next. this is bloomberg. ♪ ♪ this is "daybreak asia."for what is usually a pedestrian event. the u.s. treasuries quarterly refunding announcement on wednesday. why are they anticipating this? of u.s. bonds is getting ready to pay less. guess who? kathleen hays is here to connect the dots from treasury refunding to the fed in their balance sheet. >> it is a quarterly refunding announcement here at it always comes in the middle of the quarter. not beause the fed will buying back all the bonds that mature in its portfolio, people are saying what does this mean for refunding? refunding occurs once per quarter. there are so many bonds maturing. these are the threes, tens, and 30's, so the treasury is replacing the debt by buying new threes, tens, and 30's. the fed has decided it will not invest all the proceeds. once it makes this announcement, it will let 6 billion and treasuries roll off. this will just affect the treasuries. quarter, the treasury calls the primary dealers together, about half of them, and ask them questions. how is the str

joining us as the global chief investment officer at ubs world management handling $2 trillion in assets. often say there is no downside in buying equities. it never seems to change. what's the primary reason for your saying that today? >> we have changed our view a little bit. off our u.s. dollar high yield position and we have switched much more to relative trade so we can talk about that. right now thethat picture looks great. it's so great that you have to wonder if it can look better. on optimism is based continued central-bank stimulus, central banks globally have added about $1.8 trillion in stimulus in the past 12 months. there is global earnings growth and the earnings yield for stocks is still beating things like the 10 year treasury. those are strong reasons for optimism. vonnie: how much depends on the likes of u.s. growth and inflation and growth in other parts of the world? we are not seeing healthy enough growth in europe or china. i think the continued growth in the united states is an important factor. if you look back across the per iod of growth since the financial cri

she helped ubs avoid the irs.ieng her foundation and her husband got paid $1.5 million? is that pay-to-play? we need to know. there should be a special counsel. lori: the request has been put forth. what needs to happen. gregg: congress could work on its own by enacting the special counsel statute. absent that, the attorney general could appoint a new special counsel, not robert mueller, but somebody else, to look into this. there are a couple different after news, or the senate judiciary committee which is already examining loretta lynch could expand its probe into comey itself as well as hillary clinton. and the fbi has mountains of evidence from their investigation that could be mined. lori: we haven't heard fromy. gregg: i think he's writing his book. lori: reince priebus out, john kelly in as the white house chief of staff. the "post" said the shakeups feel like an episode of "survivor." whuuuuuat?rtgage offer from the bank today. you never just get one offer. go to lendingtree.com and shop multiple loan offe

leaving ub known and a challenge back in philadelphia. >> the cuts to med are devastating. >> reporter: but will there be any in a final bill. he's been going back and forth to washington talking to lawmakers, but the debate senators are in right now is particularly vexing. >> hast harder with an unknown. >> when you bring up arguments, people can say, wait a minute, that's not what we're talking about. >> in the next phase of things, we can see proposals from individual senators. one could come tomorrow. >> in the meantime, more than wub month after he was shot during a congressional baseball practice, congressman scalise is out of the hospital. a hospital statement says he's in good spirits. and is looking forward to his return to work. for now he's in an intensive in patient e rehabilitation program. >>> 561 will be closed until 8:00 tonight because of this crash. take a look. a truck ran into a utility pole causing live wires to come cr h crashing down just before noon. no word on the driver's condition to get around it police recommend the whitehorse pike. >> delaware, one of the

we will bring you interviews with the top post of banking executives, the chief executives of ubs, credituisse, berkeley. -- barclays. this is bloomberg. ♪ mark: stoxx 600 down by 1/5 of when presented a great 85 members of the european benchmark reporting earnings today. mark: live from london and new york, this is the european stocks finishing the day in european trading, european companies worth more than $3 trillion reported earnings, 85 companies on the stoxx 600 which fell for the second day in four, down by 1/5 of 1%. let's start with deutsche bank, 6.6% lower, biggest drop since 10% drop inted a second-quarter revenue than missed estimates. earnings reorganized investment banks, 16%, trading transaction banking income fell. the bank cautioned that revenues of its operating businesses will drop. followingme trading 12%, revenue from expertise trading down. net income did bea estimates. -- beat estimaes. shares down by 6% today. gainers today, biggest gain since 2008 after announcing it 1.5 billion pounds share buyback. he lifted its profitability targets, and said efficiency gains

ubs is streamlined its wealth management business in europe and will expand the role of the senior executivess the region. cross-border operations will be combined with domestic businesses to reduce the number of offshore booking centers from 10 to three. switzerland, germany, and the u.k.. wealth managers are under pressure from low rates in market uncertainty. haidi: executives told a london reported that they will deny conspiracy to commit fraud. by the mosteo's senior u.k. bank executive to face criminal charges since the financial crisis. it relates to funds made available to qatar in a deal that made $15 billion. we continue focus on bank action next and how they react to haidi: it is a: 30 a.m. here in sydney. futures showing a little more upside. i am here in sydney. in newi am betty liu york, where it is 6:30 p.m. you are watching "daybreak: australia." the japanese finance minister is strengthening his political power base to give him more control over the ruling liberal democratic party. he also pledged support for shinzo abe after a bruising defeat in tokyo elections. positiond pu

ubs says amazon's stock could spike to $1600 a share in 12 months.hour shall we say a little skeptical. nonetheless amazon is up to 1012. >>> harley-davidson cut forecast for future motorcycle sales. down 11%. >>> back to health reform president trump tweeted this morning this, we were let down by all the democrats and a few republicans. most republicans were loyal. terrific and worked really hard. we will return. joining us now fox news contributor steve cortes. all right, steve, what responsibility does president trump have for this health care debacle. >> stuart i think he has almost no responsibility. he largely delegated this task to mitch mcconnell. mitch mcconnell and speaker ryan combined have 50 years on the hill, a half century of service and they couldn't get this through their houses. stuart: but he didn't lead, did he? >> i think he did lead. he did. here's the thing he said from the get-go obamacare was a disaster. it is one of the reasons he became president. when it came to replacement, not just repeal, he delegated to the hill believ

we will talk to a simon smiles of ubs, who say the ultra wealthy are still hoarding too much cash.ities to the year 1998 in stocks? does that mean a repeat of the dot-com bubble is coming? we will speak with doug ramsey. and brexit secretary david davis is back in brussels for more talks with michel barnier. the rights of e.u. citizens are

let's bring in the head of asia asset allocation at ubs wealth management.hank you so much for joining us. let's talk about what the fed said. was the market reaction, the dollar yield sinking, warranted here? >> the statement was not that dovish. we can see that on the inflation side, there is some can learn. on the balance sheet reduction, that were much more clear. we shifted that after the statement. we think announcement will happen in september and the rabble start in october or november. , we good for our clients think there's more upside for the euro. probably start to talk about tapering. shery: you do see the balance sheet run off starting in september, policymakers do seem to be not emphasizing the impact on the exchange rate. i do wonder, we've never seen this sort of experiment done before. if we see a spike in the dollar, when that be very deflationary and counter what the fed is doing? could we expect that? >> the run-up itself would be very boring and slow. rates inthink interest the long run will spike. the target is 2.5%. doesn't sound like

macro at ubs and the global macro .trategist what is it mean?off because he does not have to justify or need to explain that interest rates can go high? >> before the reaction to the spike in inflation was hugely overblown in terms of the hawkish swing we saw in response to it. it seems categorically to us that it is a result of the fall in the pound we had on the other side of the referendum, which should be coming out on the year on year numbers soon. when you look at market inflation expectations or the empirical activity data, it is slowing down. the case for hike it seems was made in congress time, the fact that inflation has slowed down takes it off the table. francine: what was the need for governor carney to make the hawkish sentiment? was a lot of speculation there was a coordinated change in the language. we would argue the ecb was into with the data. we found it puzzling in the bank of england. we think the interpretation of the governor becoming more hawkish is wrong. a couple of the external members have, clearly they are voting for

the big board is ubs and rent the runway it will put the nasdaq at 5 below. doing the honors you mention snapchat, nbc news, our parent launching a twice daily news show. recode reports 30 employees will be putting that together it did close below 15 yesterday for the first time that's a 13% decline from the march 1 ipo. >> that's a jack tatum reference. >> that's great by the way. >> it was. >> that wasn't even talking about it, the whole paragraph about stock bubbles is odd but it would be remiss, we miss him. but i think that the -- true that he did it to comcast and to snap what's with them. >> they had a good call on snap. >> conference call. >> they were on it right away. >> from the beginning. but david, comcast never recovered from their assassination. >> no, comcast shares are still down from that point. >> what's the deal >> well, the stock is still up 13% for the year. >> it's kind of like saying it might be a tepid quarter. >> there was concern when they came out with the call that comcast was going to have a tepid quarter. we'll find out next wee

attempts to cover up the source of the money on the illegal loan and other frauds proved to be his ub doing. >> their effort to hide whatever they were doing illegally is what ends up exposing him. >> the biggest question is whether the scheme might have gone unnoticed if it weren't for his son. using campaign funds to pay off the student loans. discovered because of jr.'s business connections to jones. the acting u.s. attorney argues that the elder crimes were so blatant they would have been discovered any way. the lingering mystery to him, why the 11-term congressman risked everything for such uncertain payoff. >> that surprises me every day. it surprises me every day that it people commit some of the crimes that they do for so little gain. >> for the investigators, george spencer, nbc 10 nouz. >>> the former congressman is serving ten years for racketeering, fraud and money laundering. he is appealing his conviction. a federal appeals court in june upheld junior's conviction. he's serving five years in prison. george will sew you how the supreme court may be helping the disgraced l

he is the head of european equity strategies that ubs. >> theresa may faces questions in parliament.di minister is going to meet to discuss this situation. >> we have the all important minutes for the feds last meeting. what will the tone of these minutes be and will they talk about alan sheet reduction? this is bloomberg. >> welcome back. it is towards the end of the week in germany and there is the it isrt in germany demand interesting among the g 20. let's go to hong kong for the business flash. >> thank you. thousand over the next four years. the announcement comes less than a day after the lender got formal approval from the italian government. a ceo welcomed the decision. >> we anticipate talks with regulators for quite a long time it is what people need to move forward. >> for the first time in 17 years, taking advantage of the the tehran area. rebuild operations and that is your bloomberg business flash. >> thank you for the roundup. and he has effective outlined his top three global investment opportunities. talking about real leveraging with thisvidend reason.nd this is the