from mifid ii to dodd-frank, we will speak to those reacting to a new generation of rules. t's get straight to mifid. take a listen. mifid ii is disrupting the world of investment research. in the past, this has been offered as a free service. from january 3, that research will have to be paid for separately. why? eu lawmakers wanted to curb conflicts of interest that could leave investors facing opaque costs. under the new rules investment firms will have to demonstrate they are getting the best execution for their clients when they trade. regulators hope this will lead to more transparency and competition. analysts are rushing to prove their worth, and investors are growing increasingly selective about what they will pay for. then there are the regulatory conflicts, along with who pays. some buy side firms are planning to pay for research out of their own profits, while others pass costs on to clients. there are various offers. packages being modeled by companies include basic pay-as-you-go to all-in offers. prices vary widely, in some cases prices range from close to noth

from mifid ii to dodd-frank, we will speak to those reacting to a new generation of rules. t's get straight to mifid. the new regulations are set to change the landscape for investment research ahead of the legislation going into effect on january 1. -- january 3. take a listen. mifid ii is disrupting the world of investment research. in the past, investment research and corporate reports have typically been offered as a free service to carry out their trade. from january 3, that research will have to be paid for separately. why? eu lawmakers wanted to curb conflicts of interest that could leave investors facing opaque, steep costs. under the new rules, investment firms will have to demonstrate they are getting the best execution for their clients when they trade. regulators hope this will lead to more transparency and competition. analysts are rushing to prove their worth, and investors are growing increasingly selective about what they will pay for. then there are the regulatory conflicts in the europe and the u.s., along with who pays. some buy side firms are planning to

nejra: mifid ii the lead lawmaker on in the european parliament, thank you for joining us. next we are back in brussels. we willalk about mifid ii and transparency. that conversation next. this is bloomberg. ♪ ♪ nejra: welcome back to bloomberg markets, rules and returns. let's get a roundup of the latest news on financial regulation. >> in jackson hole the world's most powerful central bankers delivered warnings against dismantling tough post crisis financial rules. the trump administration blames for stifled at u.s. growth. mario draghi said it was a particular dangerous time. echoing similar remarks by janet yellen who urged any rollback of post crisis rules to be modest. banks are trying to figure out whether retail banks need to charge for meetings with clients. a lack of clarity over new market rules. the danish bank plans to offer credit research for free while charging for special requests. europe's main bank lobby, because u.s. commitment to a framework has become shaky. that is your regulation news roundup. nejra: thank you, sebastian. one of the main aims of mifid ii is to improve trading transparenc

there will be adjustments throughout the beginning of next year. let's keep the conversation on mifidspecifically the buy side. earlier, we talked about how the new rules will reshape the relationship between asset managers and clients. >> this is a critical juncture in the industry because the will involve owners very directly in the research projects for the first time. asset owners are going to have to ask detailed questions about how research spending my change from historic norms which govern product returns that decisions are being made on. it will reshape this entire relationship between the two. assumption that absorbing research costs will eliminate regulatory and client scrutiny and if that is the assumption, is a correct? evolving. a number of managers saying, they will pay out of p&l for european clients but not u.s. clients. it remains to be seen how asset managers feel about that. if we have managers moving to p&l, we want an idea of how much the research has changed. if it is reduced it may have an impact on future performance. managers are starting to benchmark researc

there will be adjustments throughout the beginning of next year. nejra: let's keep the conversation on mifiduy side. earlier, we talked about how the new rules will reshape the relationship between asset managers and clients. >> this is a critical juncture in the industry because the mifid ii will involve owners very directly in the research projects for the first time. asset owners are going to have to ask detailed questions about how research spending my change from historic norms which govern product returns that decisions are being made on. it will reshape this entire relationship between the two. nejra: is the assumption that absorbing research costs will eliminate regulatory and client scrutiny and if that is the assumption, is a correct? >> it is evolving. a number of managers saying, they will pay out of p&l for european clients but not u.s. clients. it remains to be seen how asset managers feel about that. if we have managers moving to p&l, we want an idea of how much the research has changed. if it is reduced it may have an impact on future performance. managers are starting to ben

when they do, we will bring them to wolfe. create al mifid cottage industry for specialization?re starting to see some analysts right away from the larger banks. the larger banks are starting to realize that the clients under mifid will not pay them for the 80 or 90 analysts that do not add a lot of research are you and the three or four that are very strong left at the banks are starting to say, i am holding up this department and i can do it better on my own. that is how i was thinking in 2009. the problem is, commissions have been under pressure. the clients want to have few onorters -- fewer parties the sell side and i had to have enough depth so we could help clients in multiple sectors, in case one sector was out of favor. we are seeing and will see, a major change in research. the big change people are not expecting, especially larger banks, is that clients do not want to pay for the whole department. they want to pay for the four analysts they care about any five conferences they want to but have been billed for 25 coverages and 20 they do not care about and research in

a vast set of new european union rules known as mifid ii will force unprecedented transparency on bankse eu rules will apply to any institution trading european securities. traders are scrambling to comply with a revision of the eu markets and financial instruments directive. effecthich goes into january and will update the way broker share information and get paid. many of the rules like those were crying brokers to synchronize clocks and store recordings of phone calls, are designed to give regulators information to reconstruct events quickly, if things go wrong. others and rebel conflict of interest like the practice of routing trading commissions to firms in return for investment research. some of the mifid ii guidelines go much further than dodd-frank in the u.s.. banks and brokerages say regulators are overreaching, critics say that by forcing the disclosure of prices, trading may be inhibited and marketing accredited may be reduced and cut into bank profits. authorities say the numerals will help restore trust and strengthen consumer protections while fostering competition and en

and as the negotiations with the banks around mifid ii continue, i think there will be a quality element fewer people. andrew: some people not willing to pay a penny for it. tom: brutal. lisa: i found it interesting, but it is true, this is why you are seeing banks lowering and lowering their expected prices. credit suisse lowered their price to a very competitive rate of zero for their fixed income research. that was the story on the bloomberg today. tom: but i interviewed james sweeney there, head of global economics and i believe mr. sweeney has children that need to be fed. how does this work? lisa: that is my questions, because how does this follow the mifid guidelines? restrict out to the function of providing research from trading profits how do they provide it for free? , i don't know how that works. but they will set an interesting model here. tom: can we go longer? andrew, i think this is absolutely critical. do you end up talking to only five big firms, or is this good for the boutiques? andrew: if you go back to why mifid ii is happening, it was designed as an inducement to t

mifid guidelines? how do they provide it for free? i don't know how that works. they willresting model here. tom: can we go longer? andrew, i think this is absolutely critical. do you end up talking to only five big firms, or is this good for the boutiques? andrew: mifid two was designed as an inducement to trade. i question whether the people that have that assumption have managed money before, because we don't trade unless we think we think we're going to make money for our clients because the performance pressure is such. i think you will see higher quality research produced both internally and externally, and the week hands will not be with us. thank you so much, david riley, from london. lisa abramowicz, andrew chorlton, thank you for joining us. thank you for joining us. we never see each other. people think we do. we sort of like go down the hall. ♪ tom: from new york, that does it for us. we will see you next friday. jonathan ferro. "bloomberg real yield." ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast fo

will not be with us. tom: thank you so much, david riley, from london. lisa abramowicz, andrew chorlton, thank you for joining us. much more to come on mifid 2. ou for joining us. , we never see each other. people think we do. we sort of like go down the hall. it is sad. that does it for us. we will see you next jonathan friday. ferro. "bloomberg real yield." ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. [seagulls cawing] >> this is my happy place. and it has been for a long, long time. it is the ferry that goes from my parents' house near manly beach to downtown sydney. there is nothing magical about the boat itself. tourists and locals ride this thing every day, but really that is what makes this ferry so special. no commuter ride on the planet offers up more amazing city views. it's routine made spectacular.

the eu rules to upend trading, this is a good watch in terms of your understanding of what mifid ii willeed, particularly for the wealth management business. matt, something worth paying attention to. you have a program coming up on the subject, as well. matt: i will go out on a limb and say the producer of this program also produced that most watched video. kudos to her. up next, are unicorns too good to be true? alibaba founder jack ma. more from that exclusive interview throughout the day and the program tonight. unprecedented access to alibaba. you don't want to miss that program, either. this is bloomberg. ♪ guy: getting a bit of the moves on sterling. this is the cable rate breaking up to july 16 bubble. the london book, basically the book for asia, now london liquidity starting to kick in. there is another move to the upside. it will get quite interesting around here. the market setup doesn't have a lot about it. 151.30, really fast. in terms of the setup, it will get quite interesting in what the technicals are that could potentially send this market really moving. matt: i just n

will explore strategic options. years, stone, in recent has been losing readers and advertisers. vonnie: that is your latest bloomberg business flash. iik: still ahead, mifid. it comes at a bad time for global investment banks. a tradingould spark execution price were. exclusiveot miss an interview with the president of lumbee a. -- of columbia. he will speak about the crisis in neighboring venezuela and his relationship with president trump. that is coming up at 11:30 a.m. eastern time. this is bloomberg. ♪ ♪ vonnie: live from london and new york, i am vonnie quinn. mark: and i am mark barton. this is "bloomberg markets." a price war is looming between banks as mifid ii comes into play in january. they may be able -- willing to cut prices to enable trades. we are not talking about research, but we will squeeze in a research question. there is going to be a bit of a price war when it comes to equities trading. >> a looks that way according to executives. it looks like the same exact thing is happening in research as well. execution is going to be the same thing here. once the starting gun kicks off on january 3, we will see a free-for-all on these ala cart

mifid ii regulations. the bank president spoke exclusively to erik schatzker in new york. >> i don't think anybody is really clear on what willanuary 1. we know the rules of engagement. how everybody adjusts to those rules of engagement starting from the client to going back to the provider are very difficult. all we are doing at the moment alongside all of our competitors and clients is engaging in discussions and debates on ok, mifid ii is arriving. how are we going to address it together? erik: you must have a better idea than you did six months ago. have a muchigh better idea. our approach to mifid ii improving and evolving over the last three years has always been is that if mifid ii requires unbundling kumal which by the way the industry has said for a number of decades that that was not possible, but if it requires unbundling, then we need to value ads and everything will piece of our value chain at a competitive price. so if you go back to the value chain, what we do next is we tried to become the top providers, differentiated by execution for a number of means, and we have been working on that for three years. when w

mifid guidelines? how do they provide it for free? i don't know how that works. they will set an interesting model. go longer? i think this is absolutely critical. do you end up talking to only five big firms or do you go back to boutiques? two was designed as an investment to trade. we don't trade unless we think we think we're going to make money for our clients because the performance pressure is such. i think you will see higher quality research produced internally and externally, and the weekends will not be with us. -- weak hands will not be with us. tom: lisa abramowicz, andrew chorlton, thank you for joining us. david riley in london. thank you for joining us. we never see each other. people think we do. we sort of like go down the hall. ♪ york, that does it for us. we will see you next friday. jonathan ferro. "bloomberg real yield." ♪ >> it's 12:30 p.m. in new york, 5:30 p.m. in london. i am vonnie quinn. welcome to "bloomberg markets." from bloomberg world headquarters in new york, here are the top stories on the bloomberg and around the world that we are following this hour. it's jobs fr

ubs things profits will be under pressure because lenders are forced to charge for research. to with the -- mifidarios, i don't think anybody will tell you i have it all figured out. on january 1 i know how i'm going to approach it and my providers know it and we are aligned. definitely there will be adjustments throughout the beginning of next year. taylor: european regulations are designed that investors are not swayed by free research. unit sold to bain capital, the preferred bidder almost three months ago, but the process was delayed by lawsuits and government opposition. was $1.9 of the deal billion. augmented reality futures on the iphone may help sell its most expensive iphone yet. posested reality super to -- superimposes digital information into a view of the real world. that is your business flash. tom: let me show you the augmented reality here. it is going to fail, it is terrible. not the chart. apple, 2000, here is where i sold all of my shares. loaded the vote right here, it is going to fail here. they're going to die. terrible, jonathan ferro had the greatest quote on twitter. citi

mifid ii leave asset managers with a dilemma. back to work for washington, how likely is the repeal of the volcker rule? and what willhear on regulation over banking and the low rate environment. welcome to "bloomberg markets: rules & returns."

mifid ii leave asset managers with a dilemma. back to work for washington, how likely is the repeal of the volcker rule? and what will.s. banks? plus, we need to learn the lessons from the crisis. we hear on regulation over banking and the low rate environment. welcome to "bloomberg markets: rules & returns."

mifid ii leave asset managers with a dilemma. do they pass on the costs of investment research? back to work for washington. how likely is the repeal of the volcker rule? and what will message from bun desbank. we would hear what he has to say

mifid ii leave asset managers with a dilemma. do they pass on the costs of investment research? back to work for washington. how likely is the repeal of the volcker rule? and what willor u.s. banks? plus, we need to learn the lessons from the crisis. that is the message from bundesbank. we would hear what he has to say on regulation, over banking, and the low rate environment. welcome to "bloomberg markets: rules & returns." i am nejra.

mifid ii leave asset managers with a dilemma. do they pass on the costs of investment research? back to work for washington. how likely is the repeal of the volcker rule? and what wills, we need to learn the lessons from the crisis. we would hear what he has to say on regulation, over banking, and the low rate envnt

will see how that unfolds. great to see you. catch our new program on bloomberg about the ever-changing regulatory landscape from the volcker rule to mifidplications and opportunities of regulatory change by drawing on our own in-house expertise and industry figures on the frontline. watch it on the bloomberg this weekend. next, 35ean close is minutes away from the end of the friday session, a little bit of a reaction to the jobs report but pretty much the main index, stoxx europe 600 is higher throughout the day, 7/10 of 1%. i will leave you with the bond the board. the jobs report, maybe the ecb will push back news on ending the qe program until the end of december. the close is next. this is bloomberg. ♪ mark: 11:00 a.m. in new york and 11:00 p.m. in hong kong. from london, i am mark barton. vonnie: i am vonnie quinn. this is the european close on bloomberg markets. ♪ mark: big top stories we are covering from the bloomberg and around the world with the euros fighting high and loses gains after a bloomberg scoop, the ecb may hold off on finalizing its qe plans until december, what it means for mario draghi. investors confident the new

mifid is a big component of that. our discussions with the asset management industry on how, for example, research will be paid for andanges equities and classes are opening a lot of discussions. thatare going on a path makes me optimistic that we will be ready come january. tom: thank you so much. greatly appreciate your attendance this morning. a great perspective on germany. thiel ofnue with mr. blackrock. you can migrate over to coast-to-coast, bloomberg daybreak, -- this is bloomberg. ♪ ♪ on a monday, bloomberg surveillance worldwide. tom keene in new york. we are focused on germany in the stunning elections. we will do much more on the upper over the weekend in the united states of america on football and politics. the speech, it was something to see prime minister may give an important speech, some would argue the most important since june 23, 2016. to do that in florence last week. scott is with us from blackrock. scott, let me go to you first. what is the follow-on to the , the tories, will they coalesce around the prime minister? scott: the speech lacked critical details and direction as to where we are goin

mifid your friend? are you saying, i am going to love this or not? willlitically correct answer because we have not made an announcement yet. pointing inu are the right direction given that we have a strong in-house research capacity and that should come as a strength to us. tom: diplomatically said. i wouldn't sure you we would love to have you on set with your fidelity leadership when you make that announcement. -- i am sure we would love to have you on set. it is fascinating to see what these old houses will do. fidelity, capital trust, and others as well. sonja, thank you for joining us. coming up, an important interview in the next hour. talking about assumption. they are focused on making it. the single-digit landscape. from london and new york, with francine and italy, this is bloomberg. ♪ ♪ tom: this morning, brent curve rel, the yen bar stronger, the swiss franc also. republicans go down in flames. cassidy, called deeply flawed. the white house, email on private account. nfl and taking shots. john mccain, the president, considers the collapse of

will share interview with the fca's andrew bailey next. this is bloomberg. ♪ francine: don't go cring. -- crying. when the new mifidules comes into effect. that is the message from andrew bailey who says firms need to be preparing now. all, there is a lot of work going on during the course of this year we make sure that we do everything we can to be ready. that's involved -- being out and about as it were, making sure firms understand what is needed. everyone knows what they need to do. plotting out the timelines. we're not finding in many cases a deliberate refusal to -- so , i'm recently comfortable with where we've got to. when i said -- liability, what that really means is the rules come into effect on the 3 of ja nuary. our supervision will take over the markets in the firm's. but obviously, we work with them to make sure the thing is embedded. i expect to be taking that forward as time evolves. and no doubt we will find things that are better than others and we have to address the things that go less well. firms will tell us about that. nejra: you have asked about paperwork to be submitted by july the 3. many