like repealing the volcker rule or making changes on the volcker rule. something wall street .ould like to see julia: you mentioned the limits risk taking, obviously politically sensitive. it's important the too big to fail. large financial institutions that get into trouble. how likely are we to see amendments pass the senate on those two things? >> sure. yous take the last one that mentioned. somethingn, which is that republicans has called a did not end too big to fail. it would allow bank regulators to step and unwind institutions. that is something that could technically could go through a budget process that doesn't require democratic support. that is something that does have legs. republicansng that in the senate as well as the white house have expressed support for. the volcker rule ban, the other something full repeal of the rule that is seen not likely. bipartisanme discussion on both house and senate around making other minor tweaks. remains to be seen. i think any significant overhaul uphill battle. dexheimer,izabeth thank you so much. you ca

day plethora of recommendations:topics including the regulatory structure stress testing and the volcker rule but while i am still going through the report encouraged it needs to be better tailored the of those businesses that were regulated for those of our this institution in america is facing. >> so first let me comment there has been a significant amount of time since dodd/frank was passed butea the overarching theme that community banks grow properly though sadako for 50 percent of the assets in the banking system by 12,000 community banks and credit unions make up the rest. the hot we would to make sure they will have undue burdenslo they can afford to win too small and medium-size businesses gramm the primary focus is around that sector of banking. >> there was some bipartisan support for changing the threshold than the application for those indians standards if the requirements were streamlined how would thatre impact broader economic growth by. >> we think it is critical that to not having though large base entirely fund the u.s. economy and have a situation where we don't put t

the reason for trying to roll back volcker is more bureaucratic than economic or financial. so the banks have to report to fooef differe five different agencies on virtually every trade they do, which is an enormous bureaucratic nightmare because it requires thousands of -- literally thousands of people to provide the information that these five agencies want so the argument is not let banks go out and trade however they want, whenever they want, the argument is take one agency, take a limited set of data that we are looking for, and evaluate volcker on that basis. a lot of the stuff which is being proposed here is not because it's going to create tremendous increase in bank earnings but increase running a bank. >>> what about the oil sector. we have the oil price coming off aggressively how about the exposure of the banks to falling oil prices compared to 2014 >> see, this is another big point. in other words, oil is not going to cause major destabilization in the banking industry. we had 2014 period through 2015 in which out prices collapsed and banks took significant writ

tell us about the volcker rule.uest: it has passed the house and it is believed it will not pass the senate. parts could be available for budget reconciliation and parts could be put into a must pass bill because it is hard to imagine you would get democrats to vote for this. democrats have not been included in these debates and discussions. there is the tone of what they want to do and then clearly there is a regulatory environment where regulators can slow paddle or delay or not enforce rules. the volker rule came from paul volker, the previous federal reserve chair, that if you are a deposit bank, if you have fdic insurance, if the public is standing behind the fact that regular retail deposits cannot , andpanics or runs consumers are poor and being able to discipline that market themselves, if you are engaged in that you should not also be engaged in hedge from trendy -- trading. you should not issue a hedge ond that that is betting certain financial markets but not necessarily providing value for the economy an

and a number of my colleagues have spoken about the volcker ru rule. implementation of it is frankly complex. and i'm certainly open to looking at ways to reduce regulatory burden in that area. the report endorses a restriction on proprietary trading. so in that sense, it endorses the main objective of the volcker rule, which i was pleased to see. but on implementation, it's true that the rules were in part reflecting the way the legislation is written, were i think necessarily complex, but we do have some ideas for how we might simplify the rule. and certainly it's something we're quite open to looking at. [ inaudible question ] well, i mean, treasury has a -- set out a list of objectives for regulation that i'm sympathetic to and endorse. i think looking for ways to reduce regulatory burden when it can be done without sacrificing safety and soundness or creating systemic risk, that's something that all regulators should want to do. we've done an awful lot of rule-writing over the last five or six years. and coming back and looking at where we've crea

and a number of my colleagues have spoken about the volcker rule rule. implementation of it is frankly the reportndor a' restriction on proprietary trading. so in that sense, it endorses the main objective of the volcker rule, which i was pleased to see. but on implementation, it's true that the rules wer in pt reflecting the way the legislation is written, were i think necessarily complex, but we do have some ideas for howe might simplify the rule. and certainly it's something we're quite open to looking at. -- a safety and soundness of creating systemic risks that something that all regulators .hould want to do coming back and looking at what we have created, burdens and ways in which we can simplify to reduce, that is an objective that is core to the treasury review. , whilevery sympathetic we may not agree on every detail, the suggestions are something we will pay attention to. already on our own list of things we should be view. >> in light of the plans to trim the balance sheet better this year, what have you learned about key we and buying policie

reagan appointed volcker who was originally appointed by jimmy carter.enspan was originally appointed by reagan. there's a lot of ping-pong before the election. now the white house seems to be quite close to yellen. donald trump need two things. he will need a federal reserve chairman who keeps interest want tow and he will keep pumping out these 50 year so the scene is ultimately a friend of the bond market. do you like u.s. banks on less regulation for the banking sector? guy: i love them. they are an amazing parting investment toolkit. are a wonderful interest rate hedge. if we are wrong, higher interest rates being higher -- mean higher bank rates. anna: x: 26 here in london. green light to chinese stocks but will in spurts investments country is hoping for? how will it turn that into the stock market? this is bloomberg. ♪ i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a

circle, the decision to withdraw seeing as a win for chief strategist steve bannon and a loss for a volcker >> turning to the beautiful weather. chief meteorologist doug hill is here to tell us about how great this weekend will look. doug: it is spectacular with plenty of sunshine. we will see, just a few fair weather clouds now and then with beautiful temperatures and low humidity. pretty impressive numbers at noon, 81 at reagan national and 76 in reston. 79 in annapolis. woodbridge at 80 degrees. we will go up a couple of more about the afternoon with a little bit of a breeze from the northwest but a dry air mass. very comfortable. the weekend will be pretty good. tomorrow, not concerned about much weatherwise, nice and sunny with sunday afternoon maybe a few showers and storms. ,or the moment closest action weatherwise is a few showers to the northwest coming up lake erie. those will not make it in our area. fest,rndon fast -- spectacular this afternoon and evening, 70's and dropping to the 60's late tonight. we will talk about the weekend in a few minutes. adrianna: we will see you then

top banking regulators are sprinting to ease the volcker rule and other constraints. the federal reserve governor and acting controller tell -- plan to tell lawmakers they support revamping key structures. the trump administration unveiled a list of proposals last week. senate gop leaders well release a discussion draft of repeal and set to replace obamacare. meanwhile, the white house has created a website urging the repeal and replacement of possible ahead of a senate vote. global news, 24 hours a day, powered by for he 700 journalists and analysts. this is bloomberg. matt: theresa may comes to brussels to join a leader summit. the prime minister will outline the principles of her approach toward eu nationals living in the u.k.. then she will be asked promptly to leave that dinner, while the remaining 27 leaders will debate what she has said. she is going to publish her detailed plan monday. brexit dominates the program for the next two years. eight new laws easing the withdrawal from the european union. a lot going on. the brexit packed week. is going to be interes

especially if they change the 10 and $50 billion thresholds but even if you look at the volcker rule, the last year is that that's a fed study that says that they think that the volcker rule has impacted treasury liquidity. in the last week i saw an imf report that alluded to the same thing. this is really important. i think that the volcker rule for example is one of the items that should be amended. >> that gets to the capital markets, not an important area for smaller or mid sized banks but the big guys, they do still matter. it does matter in terms of ipo activity or simply trading or m&a. not much going on lately in any of these areas. >> yeah. so i think the big picture is 2% or less gdp growth isn't enough. so the answer is yes, we need more growth because we'd see more active any a variety of places. now my world includes the mid and small cap banks. so very quietly we have been building and by we, i mean my firm and the industry is building regional champions. for example, my firm worked on a merger recently which is going to create the largest community bank in virginia and

months to what the federal reserve find to your bank for not keeping its traders in line with the volcker rule which restricts lenders from using their funds to make speculative trades those close. to this matter say the sixty million in losses because of this that does not look like it's going to shrink the german lender which earned about two hundred seventy million dollars in the first quarter of this year it's now sticking to overall how it manages its risk. and gold jumped on wednesday gaining support due to a weakening dollar it rose point two percent on a call backs to one thousand two hundred forty nine dollars thirty cents an ounce silver also edged higher by point seven percent to sixteen dollars seventy six cents an ounce but it's not just a weak dollar that metals have to thank the combination of u.s. political risk brecht's that fears and italian bank bailouts could keep it afloat the rebound comes almost just two days after gold fell to its lowest price in six weeks the drop followed an accidental large sell off the order of eighteen thousand five hundred lots of gold which

short months to what the federal reserve find to a bank for not keeping its traders in line with the volcker rule which restricts lenders from using their funds to make speculative trades those close to the matter say the sixty million in losses because of this that does not look like it's going to shrink the german lender which earned about two hundred seventy million dollars in the first quarter of this year it's now seeking to over all how it manages its risk. and goal jumped on wednesday gaining support due to a weakening dollar it rose point two percent on a call x. to one thousand two hundred forty nine dollars thirty cents an ounce silver also edged higher up by point seven percent to sixteen dollars seventy so.

and a number of my colleagues have spoken about the volcker rule implementation of it is complex. i'm certainly open to looking at ways to to reduce regulatory burden in that area. the report endorses a restriction on propri teetary trading. so it injects a portion of the volcker rule but on implementation, it's true that the rules were impartly reflecting the way the legislation is written were necessarily complex. we do have some ideas for how we might simplify the rule. certainly it's something it's something we're quite open to looking at [ inaudible question ] i mean, treasury has a -- set out a list of objectives for regulation that i'm sympathetic to ways to reduce the regulatory kbu burden when it can be done without sacrificing safety and soundness or creating systemic risks. that's something that all regulators should -- coming back and looking at where we've created burdens in ways in which we can simplify to reduce, that is -- while we may not agree on every detail, certainly suggestions made there are ones we will pay attention to >> mike derby from news wires. in lig

unfortunately because dodd-frank, well, volcker was one of them, but it is what it is.l with it. that is the law of the land. it has been interpreted. the only thing dodd-frank did is that it is not a legislation that says x. it basically says make the system better. do what you have to do to do it. the regulators have a huge amount of authority to interpret these rules. so the system is better. dodd-frank is partially responsible, but dodd-frank was passed 100% democrat, 0% republicans. none of us can possibly say you can't make things a little bit better. so one day, people, rational people should sit down and say what parts work, what parts didn't work, what should be changed. i am not in favor of throwing it out and started at ground zero. a lot of good work was done and there were a lot of flaws that needed to be fixed. david: you were quoted before the brexit vote as saying you would have to move people out of london. do you have any new thoughts on what happened? jamie: brexit is what we expected. brexit is a vote for the unknown that we thought would reduce the

months to what the federal reserve find to your bank for not keeping its traders in line with the volcker rule which restricts lenders from using their funds to make speculative trades those close to this matter say the sixty million in losses because of this that does not look like it's going to shrink the german lender which earned about two hundred seventy million dollars in the first quarter of this year now seeking to overall how it manages its risk. and gold jumped on wednesday gaining support due to a weakening dollar it rose point two percent on a call back to one thousand two hundred forty nine dollars thirty cents an ounce silver also edged higher up by point seven percent to sixteen dollars seventy six cents an ounce but it's not just a weak dollar that metals have to thank the combination of u.s. political risk brecht's that fears and italian bank bailouts could keep it afloat the rebound comes almost just two days after a gold fell to its lowest price in six weeks the drop followed an accidental large sell off order of eighteen thousand five hundred lots of gold which equals

. >> that is because of volcker 1099s economy we are experiencing firsthand so if speaking of millenials working with lawmakers across the country to get started and public service at the beginning of their career put on that demographic so suddenly grow up with you to the wesleyan church public service what would you prioritize? sova would make a change through other means? or with that democratic reforms and then the best to legislate. and then work alongside people. and so i started driving last october and november don't make the money that flows to a charity so people are surprised with their senators shows up to be the driver so culturally with national or community-based so that doesn't astir with the assumption. i have an odd experience i am home every weekend if day tackle cyberissues how many complain about espn and they used to be with a data shared experience but republicans and democrats will tell me that it feels like it has to beat it eco chamber this is the thrill of victory and the agony of defeat. so we need to get together with neighbors and break bread. so they should

dodd-frank has created in terms of the consumer financial protection bureau, cfpb, as well as the volcker which bars banks from using its own capital to speculate. one of the big things does hone in on it in that it could lose power to examine its banks. givether thing is it would power to president trump or any president they are of to fire the director of that bureau, and with the volcker, there are a couple of changes for small things as well as big bang theory. this is a threshold in terms of the amount of assets. for small banks, the threshold to $10 billion in terms of assets, but for large banks, that could be raised even higher than the $50 billion threshold we are talking about. we are waiting for this to drop, but in the meantime, hop into the bloomberg terminal, because i want to show you what has been happening in terms of the trump reflation trade as it pertains to the s&p financials. here in the white, this is g #btv 7617. in early february, you see this line? that is when donald trump signed the executive order saying that he wanted to have a review of dodd-frank. we see th

it wasn't like this under greenspan or volcker.- tarted >> that is why they are making communicated what they are going to do and there are no surprises and we don't in and a taper tantrum environment. it would be worse if you see a massive spike in interest rates. i think the fed needs to do some steps, but they are doing everything to telegraph this. haidi: i want to talk about this rally in treasuries. does that make you feel cautious about these record highs after record highs we are seeing? to ae treasury rally down flight to safety or more about this this inflationary structural shift we are seeing? we are right so far to advise our clients to not be too cautious on the bond side. we don't expect yields to massively shoot up. at they, if you look equity side, i think very positive surprises in the first quarter, a nice earnings season globally to be honest, so you could say the markets are somehow priced to perfection. a lot of soft data is priced in. the second half is about to deliver on this. we will talk more about that o

since the financial crisis, the fed in acting controls over currency today are willing to rethink the volckert test the ability of banks to survive turn -- shocked. theresa may and brexit, theresa , discussingussels how the u.k. will handle one of the most contentious issues. >> how do we propose to protect the rights of eu citizens as we leave the european union? emma: there are 4.5 million european and her citizens living in each other's countries. powered by 2700 journalists and analysts in 120 countries. in corporate news, shares of american airlines trading higher today after it announced capital airways was interested in buying a 10% stake. they intend to make a significant investment of $808 million in america and just this withbloomberg caught up them at the air show. >> we don't get intimidated. we will find new markets. >> new markets indeed. for more on the news, let's bring in mike sasso from atlanta. we are talking about an unsolicited approach. how surprising is this? mike: you can never fully expect this, but the ceo of qatar airways has made no test certainly has been on the r

let's look at the volcker rule but regulators on all sides are looking at. wills?t about living orderly liquidation authority? is that something you want to see pushed back on? there seems to be limited appetite to do that. ken: sure. let's make sure the process is an efficient process. we think that is right. it could be done in a more efficient manner. it has to be done in the repetitive nature is done now. in terms of liquidation authority, certainly bankruptcy is an option that should always failingdered in a institution, but we have to consider the cross-border nature of large financial institutions. not necessarily applicable in other jurisdictions. what tools do regulars have in the toolbox to dissolve large institutions, like congress tried to do. we think they are doing the right thing, and to come back and say here is what we felt. we think the cross-border aspect is a big part of it. do you have any major complaints? wells seem to be going so far in 2017, including interest rates. ken: the industry has done a lot in two dozen eight with the regulators, n

he also weighed in on the roll back of banking regulation and the volcker rule >> the overall need toulate activity is good for us. the biggest risk of goldman sachs during the financial cray sis is that our counterparties may not be good for us we were worried about our counterparties to the extent you have certain things like stress tests, higher capital rules, certificate ain e tests, that's fine but if you put layers and layers, you bog down the system. >> blankfein defended ben bernanke and janet yellen. he said they may get the blame for shallow recovery but credit for avoiding a deeper recession. >> i like how he showed up in no jacket take off the jacket go with the shirt sleeves. >> you can't get to pick and choose when you want res regulation or more regulation. it sounds politically correct when he wants to advocate for social justices. >> that's probably the message that's gotten lost in terms of finance over the last decade because of what's happened with the financial crisis fewer people want to go into finance, fewer people think it's a a good place the evil mask that g

raising the threshold for certain regulations and small bank holding company filings to apply for the volckerule secretary mnuchin testifying this morning on capitol hill said the aim of the report and treasury proposals overall is to spark growth in this group >> we want to make sure that the regulations are tailored, that small community banks don't have undue burs of regulation that they can afford to lend to small and medium size businesses. >> reporter: but the report suggests loonsing of rules for larger banks, too. treasury supports stress tests to return capital. it wants it to occur less frequently t. way banks calculate the cushion they have been building for the last decade, treasury wants that loosened as well that was something that surprised industry observers as were two other items one treasury wants to expand and interagency regulator called fsoc and second after all that house financial reform bill that already passed last week, treasury didn't necessarily align its report with some of the provisions in that bill. a lot was on the cutting room floor. we will see if subsequen

also no clear line on repealing parts of the volcker rule around prop trading the general tone does makene key point, we could move towards a theme of deregulation or certainly less re-regulation without significant laws passed. that was encouraging particularly on capital levels in terms of stress tests moving forward. that's why we focus on june 18th this is a different tone from regulators moving forward, and it could lead to big banks having a billion or so of capital which they can use differently. something that people have been focusing on a lot with bank share prices a simple win for them. >> used differently to buy back stock or -- >> we don't know if they'll be using it for buybacks, dividends or reinvesting it. it doesn't need to be on the sidelines. president trump is hitting the road to talk jobs. the president and his daughter are traveling to wisconsin where they'll visit a technical college to promote skills based education. this is part of president trump's push to expand aprenstiesshapren apprenticesh apprenticeships. later today he will speak at a fund-raiser for gover

the bill repeals the volcker rule. it dismantles the consumer financial protection bureau, strips regulations in place to protect the american people's savings and actually lets the big banks maintain even less capital that they need to absorb catastrophic losses, making it so they're relying once again on the american taxpayer to bail them out. the pain was caused by the great recession. from 2008 to 2010 our unemployment rate more than doubled and 11 million people lost their homes. the big banks are even bigger and more powerful today. i urge my colleagues to reject this dangerous bill and pass .r. 790, the return to prudent bacon act. i yield back. the speaker pro tempore: the gentlelady yield back. for what purpose does the gentleman from new york seek recognition? >> i ask unanimous consent to address the house the house for one minute and revise and extend my remarks. mr. jeffries: our focus should be on education and job investment. we should invest in research and development. invest in technology and innovati

banking regulators are sprees -- sprinting to the volcker rule and others.y plan to tell lawmakers today that they support revamping key strictures. the trump administration listed -- the mexican finance minister says the central bank is probably near the end of its tightening cycle and may be able to cut rates next year. they said inflation is likely to fall below 4% by then however they see more rate hikes before borrowing costs come back. wide,ti-policy white, -- what the markets are seeing is potentially another couple of increases this year. they're starting to predict that the interest rates will start going down as early as the end of this year or the beginning of next. sebastian: global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. i am sebastian salek and this is bloomberg. francine: thank you so much. senate republican leaders will unveil their closely held plans to replace obamacare. it will differ from legislation passed by the house in may and the key difference is that three-year phaseout of

resemble many aspects of the house financial bill passed last week, except for its endorsement of the volcker rule, one of wall street's least favorites that prevents them from making risky bets with taxpayer-backed money. >>> treasury secretary steve mnuchin says this plan eases restrictions that hurt growth and critics argue it helps big banks at the cost of consumers. in particular, consumer watchdog advocates very concerned about weakening the consumer protection agency. they're starting to look at car loans, having a look at payday lending, starting to regulate collection agencies, things that have been a real problem for many consumers over the years. >> we've heard that it's been difficult to lend money. is that true? >> well, you know, lending -- it hasn't been difficult to lend money. the president says it all the time, but when you look at bank lending, it's up since the financial crisis, and looking at bank stocks, bank stocks are up. banks are making record amounts of profit. so, how is dodd/frank holding them back? many parts of dodd/frank haven't even been implemented yet. >> ri

janet yellen is no paul volcker.are not seeing a shock coming through and are medically squeezing the economy. , the "downtonious abbey" of policy tightening. donovan is a global chief economist. coming up, we will talk about that a. -- talk about data. we will bring you the latest. this is bloomberg. ♪ ♪ manus: it is a beautiful friday afternoon in hong kong. not so beautiful on the hang seng. all the equity markets are over, a reader, turning flipping, recognizing volatility is something that has not gone away forever. let's talk about some of the data. china's official factory gauge rose in june. activity is more robust than expected. to beijing.raight tom mcginley joins us. -- tom mackenzie joins us. tom: beating all estimates. it is the improved trade environment. if you peel back at number, then you get the new export numbers. they are the highest they have been in five years. there has been some upgrading of the industrial sector. that helped is all. the corporate in china are able to be off some of their deat

such as the volcker rules and liquidity coverage rules.t's just an ideological swng in the other direction, rolling back the parts of dodd-frank that are likely bipartisan, like the resolution regime, which the them -- some of these provisions in there, are simple, smart policy. they have a come plant portal. where if you have a problem with your credit score and you think your bank did something wrong, you can complain and they'll publish the data pipt like yelp. imagine the government trying to ban yelp. how does that make people make better choices? >> michael, what's your response to that? >> maybe we could get some of thos good thanksgiving back. bu the question is whether we need to fundamentally overhaul this law. the apes is yes. if you look at the effect on in many of america's outside the big cities. there are simpler ways to do this. why not just do this with simple liquidity coverage rate rather than have the government micromanage the affairs of individual businesses and impose enormous regulatory railroadments. >> the small b

the volcker rule, an easy way if it has been in forst, and something that haven't even gone into effectty ownerships. helpwould require some from congress. bank of america put out a report saying some of the changes around how capital could be measured would allow -- and this could be done by regulators -- would allow banks to up $2 trillion on the balance sheets which could go to lending or buybacks or dividends. david: so they could load more money -- they could loan more money than they have been keeping. we were just talking with mike about this. is there a demand for loans? christine: we have been talking quite a lot on bloomberg with the bloomberg invest conference, there is nervousness about risks in the financial system already. people are talking about the subprime auto sector and consumers debt having increasing risks, so it is sort of interesting to see this desire for freeing up the banks at a time when we have slow growth today. this is not new for him but you have the risk in all financial markets. on the one hand some of these things are called for. the non-lower banks, r

and you will see the volcker rule be revealed as well -- repealed as well, so that would allow proprietarythey're moving the ball down the hill to ease up on regulations for the big banks. >> but what we need to do is with a the regulation small, community regional banks. but it like this has more to do with the big banks. >> it will be both, the big and small banks. the small banks, as you know, have been inundated with paperwork from this regulation. for example, if you go over $10 billion in assets, which is a small bank in this country, you will get hit with the amendment, which reduces fees on debit card transactions. but will typically impact the smaller banks by giving them less paperwork to deal with. >> do you factor in deregulation and rolling back those in big corporate banks? i think that would be terrific. it would give an immediate move if you pass some kind of legislation, but for the whole market and especially for the banks, the spurts that have taken over the course of this year, obviously with donald trump and regulation, the banks ould be acting like -- it is a combinat

. >> was going to talk about leveraged buyouts and the cbo's and the volcker rule to but the truth thiscitizens about the details but the concept and mainstream vs. wall street. if you make me make a choice i with main street to. i know the radicals are against the bill i will read the vfw after interest rates will put those who have taken the oath to defend this country tend our way of life is in financial harm sway. in behalf of the 1.7 million berbers thiokol on you to oppose h.r. 10. the other radical group is the of aarp representing 30 million americans and communications workers of america and the brotherhood of teamsters representing 900,000 in the teachers' association also with those who invested $202 billion into our country. i am shocked thinking that this is some kind of a failure to be on to a nice steady plainfield we should not throw out. >> mr. chairman apparentlyso ope he also forgot about the big w wall street banks oppose this and now i am happy to yield the gentleman from north carolina. >> thank you for your leadership by support finanical choice act for reasons un

they want to exempt banks from the volcker rule and stress testing. banks cap clat their capital, those that hold a lot of capital more than required would get exempted from stress tests and capital requests for others that just meet the threshold, those events would happen less frequently it calls for significant struck turlt changes to the cfpb and expansion of fsoc secretary mnuchin chairs industry groups called it an important first step, and subsequent reports from treasury will cover asset managers and capital markets. about a third of the recommendations require congressional action, just two democratic senators ranking committee member brown and warren last night were critical of the report. senator warren saying it calls for radical changes that would make it easier for big banks to cheat their customers and spark a financial meltdown the overall response from capitol hill was quiet as l lawmakers remain row fussed conthe russia investigation and health care reform today the president will host republican senators for lunch to discuss where t

the volcker rule. a lot of the rules are onerous.es have proven to be helpful, even if it is difficult to comply to, because it allows for certainty .n the market in that sense, they do not want to see the whole thing revamp. you are a columbia university professor of immense note. if you went down there, you would be the undersecretary of this, or that. there is not a lot of sharyn o'halloran's in washington, are there? sharyn: there are not. tom: sharyn, this is a huge not the that there is bodies for the grind of your work, which is a grinding work. sharyn: that is correct. what you need to be able to do is understand the interests of each party, build up a coalition, and find, what is in essence, the rules and regulations that allow businesses to do the business but allow for consumers to have the protections that are necessary, the regulators to be able to regulate, and for the oversight of congress and politicians to take place. that is a balancing act, but it is something that has to happen. -- excuse me,n james bevan in londo

jurisdiction and exempting banks of less than $10 billion in assets from certain provisions of the volckerin it when it comes out later today. the other big agenda item is health care. with a senate bill surfacing as early as this week the leadership is currently deciding whether or not to include defunding for planned parenthood in the bill and potentially risk losing two republican senators' votes we'll see what happens there for the white house's part it's trying to regain the policy footing this week after a drum beat of news around the russia investigation and the comey testimony last week. it has labelled this week a week themed for workforce development. the president tomorrow will travel to wisconsin with key cabinet members. and with lawmakers in wisconsin and community colleges executives he'll talk about apprenticeships. the president will then go to the labor department to spearhead a labor department initiative on that we have seen support for these types of programs from the likes of ibm's jenny rometty and marc benioff. we'll see exactly who from corporate america backs the

i feel like i'm now in good company with the volcker rule and the buffett rule. >> i'm not sure it's the same company. >> well, i'll take it that way. in any event, the president's objective on the personal side of tax reform is to simplify the tax code. i think we would all agree the tax code is way too complicated. the irs is too big on reviewing -- >> mr. secretary, i agree with that. but if you would, would you answer the question? >> i am. i was going to get there. so i wanted to start with the president's objective is to have a middle income tax cut. and that's consistent with what i've said earlier. right now, what we're looking at is cutting the taxes on the high end and eliminating all deductions other than mortgage interest and charitable donations. let me just say that this was a short form for the administration's proposal. we are working very closely, as i said earlier, with chairman grady and others on trying to reach a consensus for tax. but the president's objective is to create a middle income tax cut. >> okay. but that really doesn't answer the question. in the one-

the volcker rule, which would prevent the financial institutions from taking risks at the taxpayers' expense, the classic republican privatize the gain, nationalize the risk. if we win, the private sector and these banks benefit. if we lose, the taxpayer pays the tag. something that had nothing to do with the dodd-frank bill, the fiduciary rule, which only simply said that financial advisers should have the interests of the investor that they are advising at heart. this bill says, no, we're doing away from the very compromise, i might say, fiduciary rule. that fiduciary rule to protect investors. as i say, i don't paint all of wall street with the same brush -- i have as much as i need. i know you don't want me to talk about this because it is the truth about what you are doing to the american people. but as the leader -- i'm allowed to speak on the floor. the chair: the gentlelady controls the time. ms. pelosi: i'm using my time to speak the truth to them about what this bill does to their financial stability. the american people want to know who stands with them and who stands with

firm-wide meeting this morning, and the fact that we were talking about the potential elements of the volckerk was a complete seachange. the other interesting observation was that our compliance department was really largely silent on the topic. jonathan: we will have more questions about this in the commercial break. steve wood of russell investment. from new york, you're watching bloomberg tv. ♪ [ mooing sound ] [ laughing ] it's drivng me crazy come on. [ spitting from tongue ] time for my secret weapon. sports, movies, tv, ah... show me music to distract a minion. [ voice remote click ] [ pharrell starts to play ] ahh. i'm pretty smart- ahhh! [ mooing sounds ] [ minions laughing ] show me unicorns. [ voice remote click ] together: ahhh... that works too. find your awesome with the xfinity x1 voice remote. see despicable me 3 in cinemas in june. this is "bloomberg daybreak." futures are softer. by 89 points on the dow. on a percentage point bases, the pressure on tech. in theery nasdaq down by futures market ahead of the cash open. delivery surprises today. the hard data, downside. the tre

we would hear from the trump administration today saying that we do not have to have so much volcker,much. tom: the first reaction following the crisis was more capital at banks. that has gone into the banks and stayed there for the biggest banks. most industry observers -- and i believe there is a lot of surplus capital in these banks. the next question is the regulatory machinery in washington is still stuck in post crisis mode. anye really has not been easing, and i do not think any real fair examination of all these changes that were made. that examination is just happening now. i think the treasury report that came out last week was a great roadmap for what can be discussed and what amendments can be made going forward. we have j powell speaking to the senate today. i do not think anybody wants reckless behavior or wants to take a risk with the american banking system. the question is, can you just move the pendulum a little bit and get into a more neutral position. alix: i'm glad you brought that up. is this the worst stress test we are going to see? the most strenuous stress te

destroys the consumer financial protection bureau which saved $12 billion from scams and ripoffs and volcker rule. the choice act is the wrong choice for america and a very bad choice for congress. i yield back. the speaker pro tempore: for what purpose does the gentleman from kansas seek recognition? >> permission to address the house for one minute and resize and extend. the speaker pro tempore: without objection. the gentleman from kansas is recognized. >> the house will take up and consider an important bill that will create opportunity for all americans. the choice act repeals the most harmful aspects of the dodd-frank legislation which destroyed small community banks and frustrated small businesses and made life harder for americans. it provides relief to main street businesses that had nothing to do with the 2008 financial crisis but slammed with unnecessary regulations any way. mr. speaker, we need smart regulations that protect consumers and make our markets less risky. dodd-frank did the opposite and this is a wet plank et on the economy destroying jobs for millions of americans. t

the economy then did bound back when volcker got the inflation job done, took his foot off the brake.he tax cuts helped. beyond that, they were funded with massive deficits. we added 1.8 trillion. between the monetary ease, the massive deficits, you got that growth, but you can't ignore the reason for it. stuart: all right, all right, are you still going to tell us that if we get massive tax cuts from donald trump, president donald trump, we still won't get 4, 4.5% growth? >> absolutely not. not a snowball's chance because it didn't happen then! i'm telling you guys over and over, if you take 1981 to 89 as a whole, growth was 3.4%, pretty good. that's the same growth rate we had from 1953 to 1980. no change. what we have now is an economy that is so impaired with debt. 64 trillion, not one or two. a government that is so buried in deficits and debt, that it couldn't do the kind of massive deficit finance tax cuts that accidentally happen under ronald reagan. he wanted a balanced budget. he was an anti-casian. stuart: he cut spending. >> he tripled the debt by accident. stuart: the dem

income many people are ingrained in yields decline 35 year bull market for bonds starting with paul volckerou're used to getting bonds going forward going to get coupon minus return over time. we've seen huge amounts of money in perceived safe-haven assets and we see flows at the beginning of this year huge flows in fixed income every time yields rise more money comes in. that money will start to move over time. we've seen it and that will continue >> i didn'task, but did they think 5% total we're already up double that this year. >> i was assuming that was from here but maybe i didn't -- >> these markets have surprised many people in how strong they've been we saw a very strong market. many people assume there will be a pull back during the course of the year a number of risks. the market continues to climb a wall of worry. not just the political risk we saw last year but actually this year managed to don't climb despite the political risk in europe and now focused on political risk we'll see potentially in the u.s. in the second half of this year the market is resilient. what that tells y