so loosening the volcker rule.t is also a cap on dividends and buy back through september due to uncertainty resulting from the pandemic. , whong us now, tim adams previously served as the undersecretary of the treasury for international affairs. thank you very much indeed for speaking with us today. do you think it is a good idea that u.s. banks don't pay out dividends at the moment? the i think it is part of trend with what we are seeing in europe and the u.k. where banks should husband their resources in not distribute capital the circumstances. i think it is a prudent decision by the fed. dividends less, but still dividends are a part of this decision. alix: so when you pair that with no longer having the kind of money set aside for the kind of loans that they are going to make, etc., when the volcker rule was rolled back a little bit, how do you swear that? on the one hand, you say take on more risk, and on the other hand it is what are we going to do with the payout. so investors are pretty confused about how

like when you said earlier right now the volcker rule that was established it was established in order to discourage banks from apparently taking too much risk and bar them from using their own funds to make certain types of investments and speculative trading activities in order to increase profits but now we're looking at which was an idea that was floated earlier this year this would allow banks to invest more of their own capital into small businesses and start ups alongside with clients so this will loosen up restrictions to allow banks to make a large investment in the venture capital and summer of funds while boyden have been set aside a bunch of cash for derivatives trades and would potentially free of billions and cap over the industry thereby enhancing liquidity which is something we all need given the economic slowdown so shares of all the major u.s. banks were trading up more than 2 percent thursday after being beaten down with a chronic virus which resulted in surging big falls on loans and last quarter the f.b.i. scene is now set to vote on the what changes that would fre

room from regulators to trade and be able to use more of their capital buffers, so diminishing the volcker rule, helping in the u.s. european futures are up as well as we get headlines that klm is securing a 3.4 billion euro bailout from the dutch government, so we see more hope of stimulus, more news of support from authorities holding up markets in terms of futures. ftse futures up .7%. dax futures gaining .6%. anna? let's talk about what we see on these asian equity markets. in terms of the grr, this is what we have for you. a fairly positive picture coming through for the asian session. the msci asia pacific up by .6%. which is interesting given what we saw in the united states. a lot of nervousness this week with regards to the virus and a second wave in the united states. this tug-of-war still going on between the virus concerns, stimulus hopes, and expectations globally, but particularly in the u.s. that is part of the narrative we are dealing with this week. the banking stocks in focus in the united states, and that is a conversation we will get to later on in the program. the bank

we want to point out that banks are getting the volcker rule and reprieve on swaps. that is feeding into the stress test that we will get after the bell, letting banks boosted venture capital fund investments. that is really interesting, if they are allowing them to take on risk, you would presume that would help the economy and funnel more money out there. later on, speaking with a buyer ceo. there has been a $10 million settlement after the acquisition of monsanto. so let's get into the bigger story of the day, what is happening with infections. we want to bring in a doctor to help us understand everything. we have with this a senior scholar from the johns hopkins school of public health. this after records have been anden in florida, texas california with hospitalizations. , whatmarket participant are the figures and numbers we have to pay attention to to understand the feedthrough of infections into the economy? amesh: it is the percent positivity, meaning how hard has a become to find cases. we are seeing places like arizona, florida and texas where it is about

saying the news is saying that essentially the feds are kind of laying back and saying remember the volcker rule remember the rules we put in place after 2008 to make sure we didn't have these problems let's loosen that up a little bit or let's at least loosen up our understanding of the rules we're going to change the rule but will clarify gotta love the word clarify which means we're going to apply new terms to this rule but it's so important as you just mentioned something that's critical the essentially during this pandemic itself we do see a lot of industries that are going to the government same bail us out the fact is it was only a little over a decade ago that wall street and banks and financial firms already had their moment and there was legislation put in place that said if we build you up today you have to act like this tomorrow so it doesn't happen again and now just over a decade later we're not holding them to that and we're going to talk about more about bailouts coming up in the show boom bust co-host and investigative journalist ben swan thank you so much. with so much new

volcker, not with the intention to dictate, because it is an independent agency and i respect that. i think that we have to face the fact that interest rates are not in themselves a cause of inflation. they are a consequence. when you have, as we have had, double-digit inflation back-to-back for two solid years now, the last time that happened was in world war i. and when you have double-digit inflation, that way, there is no question that interest rates are going to have to go up and follow that inflation rate. so, the answer to the interest rates is going to be our program of reducing government spending tied to the reduction of the tax , rates that we have spoken of to bring down inflation. and you will find that interest rates come down. we do want from the fed and would ask for a moderate policy of money supply increasing relative to legitimate growth. all of these things have to work together. but i don't think that the fed just delivered he raises interest rates. the reason that we have got to tie taxes and tie spending together is, for all of these decades, we have talked an

only banks were solidly in the green after regulators eased the volcker rule that will free up capitalwe also had mixed data in the u.s. jobless claims higher than forecast for a second straight week. take a look at what oil is doing. we are seeing upside pressure, up 1%, around 1%, above $39 a barrel for wti. we saw whale under pressure earlier this week, but russia slashed exports of its crude to the lowest in at least 10 years. that gave crude prices a boost, haidi. haidi: as you mentioned, the pandemic continues to surge across parts of the u.s. texas is now halting the reopening of its economy, with elective surgeries halted. new modeling predicts covid-19 will kill at least 180 thousand americans by october, as the cdc warned more than 20 million may have already been infected. greg sullivan joins us from washington. what have we been hearing from president trump as we continue to see rises in infections? are we seeing a reality check in the white house? >> one thing we have not been hearing are new steps to curb the outbreak. even as we see infections jumping across the country,

on the one hand, given one hand to the bank's volcker rule, and dividends.e did see the s&p 500 yesterday. chinese markets are closed. we do see a risk on trade in equities. in terms of her features are positioned, muted, up to 10th of 1%. 1% -- 2/10 of 1%. the bloomberg other index is pretty much unchanged. the 10 year yield is study. for oil -- is study. for -- is steady. , it's beenor oil tempered with a sharp drop in export plants. it is headed for its highest weekly decline since april. wall street lenders will soon be able to boost investments in d.c. funds and will no longer have to so many to backstop derivative trades. but the ended up falling and post market trading after the fed kept dividends answered -- capped dividends and said they can't reduce buybacks until february. united states hit a record number of new coronavirus cases. health departments reported over 37,000 new cases thursday. that comes as texas paused is dueng measures, which to intensive care wards which incapacity. a higher percentage of americans sought unemployment. most 20 mil

there is -- they are still recalibrating the volcker rule to make markets and make a little less punitive if you are in the slots market with a capital, and give more flexibility to invest in private equity and venture capital. that would be the largest banks, like citigroup, bank of america, j.p. morgan, and morgan stanley. our teams seek a life is winning. bigger is better, not because big is good by itself. i said break up the banks a decade ago, but as the data changed, our views changed. are also theanks largest capital markets players. they are helping to facilitate during this sobering time. revolvers,as the loans getting drawn down and banks made the loans. they were there, and then the transition to the fixed-income markets with record bond issuance. now, it might transfer to the equity markets. the big banks are there to help with financing and every calibration of the volcker rule might help investments that go along with that. vonnie: $40 billion in aggregate does not mind blowing the industry altering figures, but do you anticipate there will be a change in activity because o

the flip of the volcker rule is what happened after hour with the fed.o dividend hikes and no resumption of buybacks this year. that's not good news. news is they i am large past the stress test with flying colors as they approach this conservatively. and that is good news for value. whether it is the federal reserve or other central banks around the world, with all the action they have taken in recent years, have they basically stifled the private governing of the markets? what does it mean long-term? are we setting up for deeper problems down the line? >> i am not sure the central banks have changed on a relative basis. i would make a strong argument that they have created asset , we feel ition first and financial markets. the stock market is easier to point to. you can point to the credit market. snapback in investment grade bonds around the world. what lessons can investors take from the pace and type of recovery, particularly when it comes to the behavior of investors around the world? china despite battling with their own new ways is on the tracks

a democratic member opposed the move saying the volcker rule weakened.arren, if she were on this panel, she would have pounded the table hard on that. if you want to keep liquidity flowing, maybe this will help achieve that. that is what happened today. hays, coming up, do not forget to get "bloomberg businessweek." lebron james and his business partner maverick carter. we have that exclusive conversation about how they view u.s. politics and the protests against racism. this is bloomberg. ♪ david: welcome back. lebron james has recruited nba to form anrform -- activist group called "more than a vote." -- we spokelusively exclusively to lebron and maverick carter about their mission to get people to the polls. lebron: big success looks like educating the people on the ground in the cities. we have had voter suppression for so long, people are now understanding how they can vote, where they can vote, if their vote really counts. in the black community, you will is here to go out vote, but what you do not understand is where can i vote, how many people in

we're joined by larry cantor a former federal reserve economist who worked under paul volcker who iss merchant capital. who will pass or who will fail? >> we'll not going to know, fed. this time the around the fed will not release results for individual banks. there will not be any pass or fail grades. the last thing we need here to stoke concerns about bank capital at a time when almost all these government programs are running through the banks like ppp and all the stuff the fed is doing. they are going to be very concerned with capital positions at a time when banks are facing a lot of pressure in terms of default rates forbearance and credit lines, companies who may not make it. many of the big banks as you know have already altered share buybacks and in the wake of the stress tesss it wouldn't be surprising to see the banks suspend dividends but the banks are not allowed to announce any changes to pay outs until monday at the earliest. it is possible the fed may, because they don't want to encourage scrutiny of individual banks. that is the last thing, given how hard the economy

the fdic on thursday had approved some changes to the volcker rule that would allow banks to take a littlee risk, and that sent banks flying up. and then these stress test results came out and kind of undid everything that had happened the day before. jack: now, of course, the stress test would not have been stressful if it were not for covid-19, and those numbers are not looking good. the raw numbers are moving higher, and the percentage of positive tests is up, and that's a scary thing. >> that's right. we're seeing the numbers rise in states like florida and arizona. the positivity level rose over 10% in texas, which is what was giving us a reason for dialing back the reopening there. and everything really does come down to the coronavirus. if we can get that virus under control the way that it seemed to have been before, the economic reopening could continue to happen, and stocks that are connected to the economic activity, banks, industrials, materials, can do well. but they really need to see those coronavirus cases get under control. jack: carlton took a deeper look at banks for thi

on this issue mr congresswoman harris congressman senator did i say senate senator harris senator volcker. in the emancipation hall apple a name for those who built the capital of the united states and their honor we were there for 8 minutes and 46 seconds on our knees my members will attest it's a very long time it's a very long time and i graciously lead them and falling over when it was over said that they could do the same thing but here we are the martyrdom of george bush. there can expect merican experience a moment of national anguish as we grieve for the black americans killed by police brutality today this movement of that moment of national and which is being transformed into a movement of national action as americans from across the country peacefully protest to demand an end to end justice today with a justice and policing act the congress is standing with those fighting for justice and taking action let us my colleagues just fell over some of those names of martyrdom george floyd jackson davis oscar grant so sad briana taylor our brave botham john terrance crozier philander c

since 1975 is inflation was really the big economic issue really since another princetonian paul volcker one of the great public service -- servants of our lives, what he did at the fed and his colleagues did, inflation has been under control. the upside risks to inflation is not great. i would say of course our balance sheet can go to infinity. i would say i'm comfortable with where we are now in the path we are on and don't see risks based on what we're doing right now to inflation or to financial stability. >> thank you. we have a couple of variance on this question. once the fed is then purchasing fixed income security, so it's anticipating going down the road you're talking about earlier, what's the plan for managing the portfolio? i read the question as saying, it will have more than fixed income securities in it. >> well, with the things that wound up on a sheet during the financial crisis we help them to maturity. these are relatively short-term loans of four years. so far that's what we've been doing. the plan would be not to sell the but to hold them to maturity. i would say we

changes to the volcker rule means lenders will soon be able to boost investments in venture capital funds. they will also be able to pocket billions of dollars a set aside the backstock trades. germany is prepared to strike back against the u.s. on nord stream 2. chancellor angela merkel is looking for an eu response on the pipeline, designed to pump gas from russia to germany. may prompttervention a joint response. the u.s. house has passed a sweeping overhaul, but there is little expectation it will break the president's stalemate over reform. the bill was opposed by the white house. president donald trump is accusing democrats of wanting to we can bank the police. eakenmes after -- we ca the police. liverpool has won its first title since 1990, when chelsea beat manchester city, the first club ever to win the championship with seven games remaining. coronavirus restrictions did not stop fans gathering outside the stadium to celebrate. global news, 24 hours a day, on air and @quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. now let's

that was driven mostly by optimism surrounding changes to the volcker rule, easing up regulations banks have to face in regard to funds they can invest in and also margin swap requirements. then we got results from the fed stress test about half an hour ago. that's taking a bunch of bank shares lower in after hours trading. goldman sachs and wells fargo fared the worst in this kind of scenario that the fed put together. perhaps disappointment in the fact the fed is capping dividends at the second quarter level. also for bidding share buybacks until at least september. that's taking some of the bank stocks lower, even though they were the strong's performers on thursday session. emily: disney ending the day down just slightly. apple shares slightly rising. talk about some of these other stocks where you are seeing a real impact from the virus, and giant theme parks planning to reopen now being postponed. >> disney is delaying what was intended to be the july 17 reopening of disneyland in anaheim indefinitely. the company wasn't sure if they were going to get approval from the government,

regulators are modifying the volcker rule to allow banks to increase investments in funds. do not watch -- not forget to watch for the fed releasing stress test results. watch apple and disney, apple's closing other seven stores in houston after closing 11 last week because of increased virus counts across different states. disney delaying the opening of disneyland in anaheim indefinitely. it is not the cake and get approval from state officials in time for the planned -- it does not think it can get approval from state officials in time for the planned july opening. david: we talk about the markets every single day. let's visit one of them, exactly where it is happening. the new york stock exchange had to close to traders for the first time in its 220 euros to but now it is coming back, they are begging -- there bringing people back. we welcome stacey cunningham, the president of the stock exchange, coming to us from the floor. give us a sense of what is different now that you've brought some of the traders back onto the floor. how's it going? stacey: it has been a tremend

lately dearman spandau a this is in reference here freedom of information act requests on operation volcker trail the federal bureau of investigation has located approximately 33120 pages of records. 33120 pages of record. just the amount of information you have to collect about people to get to 33000 is enormous and knowing like the end result knowing that these 33000 pages of records never resulted in convicting anyone of terrorism. it's shocking just the number i can imagine within the. there's a mosque foundation bridge we have to see see 1st thing that you want as a way to go yet wow what a shock and fear already not much enough why we haven't seen was how does you know talk a mosque your dad was he gave the follow me. he had when he was you know. i'm expecting about it a whole slew ph the towel to this or desired. yes mike there was a time her you think yeah. i was happy because i was close to the house and you know i have a lot of. problems. in 1980 when my little brother and the 5th kid in our family was born my father decided that we should move to a bigger house and bridge view. w

lieutenant colonel vindman, volcker, hill. how do you respond to the charge that those individuals did something brave for their country by voluntarily testifying, but you refused to tell your story unless you were either forced to do so by a court, or paid handsomely as you are for this book? >> yeah, you know, let's deal with the money first. if money were the object, i wouldn't have gone into the government in the first place, you can check out the salary levels to see that. in my judgment, the people who testified did do the right thing, given their circumstances. i was put in a different position by the way my deputy charlie cupperman was treated, bit white house, when the house subpoenaed him. the fact is we do know how to conduct a successful impeachment process in this country. the watergate example, even though nixon wasn't convicted by the senate, he was forced to resign because republicans and democrats worked together. sam irvin, democrat, chairman of the watergate committee, worked with howard baker and others. th

welcome back it's a big day for the banks ktf is up about 2% as bank regulators unveil changes to the volckerells fargo is down 51% from its 52-week high still citigroup is down about 37%. bank of america down from its 52 did week high. some positive news for the banks. will >> they're up today. so the two things really driving that move high today first, the covered funds provision is being adapted this will allow banks to take stakes in private equities and hedge funds. they will still not be able to trade for their own accounts known as prop trading. the second change, a little more surprising, the fdic will no longer allow them to hold margin when trading derivatives with their affiliates marine greenberg opposed both changes. the fdic voted 3-1 in favor. the change has been ratified the margin change still needs approval from the fed as well. investment banks have led that rebound today. they have the most to gain from these changes but all the banks are high by less than they were down yesterday. so not a massive move in that regard the timing of these announcements, a little odd coming

country and basically threw jimmy carter out of office and some people still venerate the late paul volcker but he was a very different character rum mariner eccles so the thing has potential for being a people's bank but it hasn't so far. and the current fed in bailing out big corporations, that is buying up the bonds that they created, the debts that they created because for years they have been buying back their shares of stock and going deep into debt to do that. the current fed is really tempting fate in terms of moral hazard. a lot of country's are going to do exactly what the big banks have done and they assume that they're going to be bailed out and when this is all over they will probably go deep and deeper into debt. basically my back their shares of stock stock and it seems to have worked . >> another question brings up the question of shared buybacks. takes these simple issues as paul, shared buybacks area even if the political will to scale them back could be found, how could that be carried out across transnational corporations, global offices who sharetrade on various exchang

that was paul volcker. he was the last fed chairman, really follow his own beat, get off the script. but the script since then has been overwhelming accommodation. they're doing to david bahnsen's point what they have always done. >> but, charles, this is so much different. they have added trillions and trillions of dollars in liquidity which is absolutely distorting markets. what you have to remember is, is we have seen them now buying up corporate bonds, buying up junk bonds is, what they have done is, savers get nothing. the savers have to pay up higher for bonds and get less of a yield because of them. my biggest worry what i'm telling you for a while. they go overboard, we end up with a climactic run in the market which i think we may be having, and then we get a big gigantic bust. they are great throughout the years creating booms and busts. we saw one in '08. every time the market dropped over last three years, powell has gone easier. we've done this with the excuse of the virus. i'm sorry, there is

very pleased to see the volcker rule was finalized today.her other brief update on things like the excement securities offering framework and proposal to modernize framework for fund valuation practices and such. i think that comment period ends on july 21st. any kind of a quick update would be great. >> i'm optimistic that we'll be able to conclude if not all items, virtually all items on our regulatory agenda including what i want to say is the harmon sa ization and bringing transparency to a number of places where it's needed. i'm excited that the women and men of the sec, through telework posture, responding to all of these events. the fact they've been able to continue with a defined agenda in an incredibly professional way, i can't say enough good things about them. >> thank you very much. i yield back to the chair. >> thank you for being here. i am sorry you are caught up in this series of events. i'm particularly sorry this has had the effect of calling into question your integrity, your independence and your reputation. we've known

financial center banks, and the rest, ease up on the volcker rules, how much cash they keep on hand. it gets a little a gobbledygook. it doesn't have to have a lot of money sitting around. that could reflect on the group as a whole. we're following that as well as jackie deangelis monitoring all of this in new york. jackie. reporter: neil, we started in negative territory and now positive. so this market is very tentative right now. you bring up the situation in texas only compounding fears of the coronavirus and spike in cases across the country in other states as well. people sitting back, it is part of phase one, we're testing more and still working through the system or is it because states are reopening, people are congregating not taking proper precautions. we don't really know the answer but the market is a little uncertain. because of this, disney will reday reopening of dills any disneyland. it was set for july 17th. we're not sure when. add to that uncertainty the governors of tri-state governors we're putting rules in effect an apple closing stores in addition to what it d

first they were up because of easing of the volcker rule allowing banks to invest more in venture capitalds but now the fed says after its latest stress test that the banks must cap their dividends for the next -- for the third quarter, suspend any buy-backs. they say the stress test showed that some banks, of course, they don't name them, could get close to minimum capital levels in a worst case scenario of the ongoing pandemic. because of that, what you give, you take away. the financials are now down again after making some gains yesterday. stuart: down across the board. got that right. thanks very much. now then, here's an ongoing story. apple and store closures. what now, susan? susan: so we have 14 more stores across florida that are closing and that adds to the seven in houston that was announced earlier this week and 11 across four states announced last friday. that brings the total to 32 stores that are reclosing after only recently reopening most of the 271 apple stores across the u.s. after being closed since mid-march because of covid-19. apple said they are evaluating on a st