the wolfgang schaeuble is the high priest of this.d done as chancellor, albeit laudable, he got halfway to balancing the books. we can have dead still rising at some point we will deal with it, said dead still rising at some point we will dealwith it, said philip hammond. this warning is very timely. we can't help ourselves but spend and economies require us to spend, don't they? the bank of england has a problem monitor hands. totally. it's very easy for the german minister to say, let's have sound finances. it is harder if you are dealing with the political pressures . are dealing with the political pressures. we have had austerity for seven years. people feel they want a bit of spending. they want to loosen the belt. preaching fiscal discipline is very easy. it is harder to do in practice. the budget coming up at the end of november. philip hammond will be between this rock people want to spend more, and a hard place. huge march in barcelona, calls for unity. very different pictures from this time a week ago when the police were ou

batches in surplus it was the big goal for many finance ministers, but they've never a chofd it wolfgang schaeuble it there is also a flip side to that he also is the finance minister who is presiding over the highest batch of surplus in germany's history since reunification which, of course, is great the end of his rein of the german finance ministry, what does this mean for the eurozone? commentators are quite divided what i'm hearing from berlin, it does not change a lot if an acting liberal would take off. general ma any's strong budgets is also engrained in other parties. so you won't get a big change with a new german finance minister in brussels you won't get a big pro spending slur from a new finance minister when it comes to the european levers of course what might change with a liberal is you might get more investments, in education, in roads, and putting together lower taxes which could, of course, help the balancing of the budget with other nations, meaning, it could actually lower the budget surplus we're not seeing it in germany it's the end of an era but of course we're going to be

erik: you may be aware that a decade ago, wolfgang schaeuble and, the outgoing finance minister of germanyggested the rising amount of debt could trigger the next crisis and of course he was spot on. are we at that point yet with the accumulation of debt, particularly in markets that are not as visible as they used to be to financial regulators? that accumulation of debt is getting to a point where we could be confronting another crisis? 2017/2018ok at differently than how we 2009.ved 2007, 2008, the financial institutions were so much more levered and less transparent in the 2007/2008 financialwould argue institutions has had an improvement in their balance sheets and we should take comfort. people are using leverage and there are individual investors and institutions who buy long-term assets with short-term liabilities. ,hat is an institutional issue i do not think that is a market risk as much as an investor or institutional risk. erik: what about underwriting standards? the longer a credit cycle goes on the looser they tend to become. this one is getting long in the tooth. how loose ar

ago, wolfgang schaeuble, the outgoing finance minister of germany, suggested that the rising amount ofigger the next crisis and he was spot on. are we at that point yet with the intimidation of debt, particularly in markets that are not as visible as they used be too financial regulators? that the commission of debt is getting to a point where we could see another crisis? >> i look at 2017, 2018 very differently than how we 2008, 2009.07, the financial institutions were so much more levered and less transparent in the 2007-2008 period. financial institutions have had an enormous improvement in balance sheets and we should take comfort. people are using leverage and there are investors and institutions that by long-term assets with short-term liabilities, yes you should scratch your head over that, but that is an institutional issue. i don't think that is a market risk, but more an investor risk. >> blackstone has intentions, plans of doubling its assets in the next five years. $8 billion. for the past five years. they are planning to continue on the same pace of growth even though they

ago, wolfgang schaeuble, the outgoing finance minister of germany, suggested debtthe rising amount ofext crisis and he was spot on. yet?e at that point with the accumulation of debt, particularly in markets that aren't as visible as they used to be to financial regulators? accumulation of debt is getting to the point of confronting another crisis? >> i look at 2017, 2018 very differently than how we perceived 2007, 2008, 2009. the financial institutions were so much more levered and less transparent in the 2007-2008 period. i would argue financial institutions, at least in the u.s., have had an enormous improvement in balance sheets and we should take comfort. yes, people are using leverage and yes, there are individual investors and institutions that continue to buy long-term assets with short-term liabilities, yes you should scratch your head over that, but that is an institutional issue. i don't think that is a market ank as much as i think it is investor or institutional risk. >> blackstone has intentions, plans of doubling its assets in the next five years. two roughly $8 billion

. -- wolfgang schaeuble declared a new era has begun. he told lawmakers that a respectful style would be important in the new parliament. europeandent of the council is toting the idea that the u.k. will stay in the uf drawl. donald tusk -- in the e.u. after all. british prime minister theresa may had struggled with splits and her own government over how to handle brexit talks. kenya's supreme court will meet tomorrow a day before the repeat residential election to decide whether thing should proceed if a credible vote cannot began teed. the court will hear a case by --ee kenyans who want government crackdowns on opposition protests have left 67 people dead since the august elections. global news 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. , with anotherhead communist party congress winding down it is clear the president is intent on leaving his mark on china. a report from beijing is next. this is bloomberg. ♪ ♪ this is bloomberg markets, i am juli

. >> a decade ago, wolfgang schaeuble, the outgoing finance minister of germany, suggested that the risingcould trigger the next crisis, and of course he was spot on. , are we at that point yet with the accumulation of debt? especially in markets that are not as visible as they used be to financial regulators? that accumulation of debt is getting to a point where we could be confronting another crisis? 2018 very,t 2017, very differently than how we perceived 2007, 2008, 2009. the financial institutions were so much more levered and so much less transparent in the 2007-2008 period. i would argue financial institutions in the u.s. have had enormous improvement in their balance sheets, and we should take some comfort in that. yes, people are using leverage and there are investors and institutions that continue to buy long-term assets with short-term liabilities. yes you should scratch your head , over that, but that is an institutional issue. i don't think that is a market as an investor or institutional risk. >> blackstone has intentions, plans if you will, of doubling its assets in the next

wolfgang schaeuble is leading the finance ministry to become president of the lower house of parliamentnce minister to the head of the lower house of parliament? >> i think it will be an important position, because for the first time in a long long , period, there will be six parties represented in the bundestag in the german , parliament, and now the range is are presented. the far left all the way to the right wing, actually the first time we are having all of this broad debate in the bundestag and it requires a very senior, very experienced person to run the show and keep it under control because we can expect some very severe controversy in the bundestag. it is an important role for him. and he has just turned 75, so i think he is senior enough and respected enough to hold the position. >> a major shakeup at equifax. the company ceo resigned over uproar over a data breach that impacted 143 million americans. a company veteran was named interim ceo. he was president of the asian operations. i suppose it is no great surprise the ceo has resigned. >> well, so actually a lot of folks, a

matt: another reality is that today is wolfgang schaeuble is last meeting in brussels.nger going to be there. who knows, but we may have an sdp minister going to brussels from no one. are the ties between europe nations going to truly deepen, or may -- or may we see the deepening put on hold? hans: that is an important point. the free democratic party had an election program that puts into question the future of the isn. -- ism. members of the european party said we have to rethink our position concerning the european stability mechanism. situation of the free democratic party seems to be moderating. ist germany has to look at that we have seen a very tense election campaign in france in april. we have seen populism in france. populism in france is a big issue. you wanted to make sure that this macron government is a success, so the question you have to ask, what is germany willing and able to deliver in order to make macron a success? that is a different environment whenich we were than 2011 we had no populism and the eurozone. matt: even before coalition , didn't west

that includes who replaces -- cooperman of the replaces wolfgang schaeuble at the finance ministry.e a lot to discuss on policy questions. for example, immigration also. energy. you would imagine that they would hunker down and camp down thosep down some of things before they talk about who is leading the policy and the ministries. be a longs going to negotiation. probably, i don't think we are expecting it to be finished until christmas or even january february. tony: the notional deadline is always christmas. in this case, some of the party leaders have said we may go into next year. there is definitely weeks and weeks of talks if this is true. matt: tony, thank you so much for joining us. us, freddie lait, cio and founder of latitude investment management. freddie, i wonder what your reaction as an investor has been to these last two german elections and to the coalition talks? does it change at all for you the picture of germany and its role in europe? it does not.e, to me, it is a continuation of a theme we have been seeing the past two years across europe. more political divis

i listened to wolfgang schaeuble talking about his view of how european debt should be treated in termsil and. il-in. i am looking at eastern europe. there is plenty of reasons to be skeptical. steen: there is a huge amount of political capital invested. this is summer for european politics. i think, the u.k. was expecting negotiation with the u.k. you have the u.k. dealing with europe. to that extent -- the key really is, and maybe this is for match to answer. who will become the finance member of the fdp? relaxed and cool to a lot of these european countries relatively to what they have been indicating is their stance on the weaker european economies and the dutch forgiveness -- the debt forgiveness that is for us to happen. guy: steve jacobson same with -- steen jakobsen staying with us. 11 30 p.m.rview, u.k. time. the fed firmly in focus today. says he sergio massi expects a smooth contraction of the fed's balance sheet. we will bring you more of the ourceo's thoughts from exclusive interview, next. this is bloomberg. ♪ guy: 15 minutes into the cash session in europe. a live shot fr

how should we view the german election, that wolfgang schaeuble resigned to make place for someone else hardly because of this new coalition be informed, and what do you make of the italian elections? >> until maybe the development of the last few days, we have to reassess how far this can go. until now, we thought the italian elections were the biggest remaining risk in europe. ms. merkel is clearly weakened. it will affect a little bit the sense of these markets and how much germany will be willing to share risk possibly in further integration of the union. on the spanish ministry, i doubt we will see a strong change in policy, because the likely new minister from the free democrats will probably not be that different from shyla when it comes to policy. francine: what would it take for you to buy italian yields, italian bonds? >> italian bonds have rallied quite a bit. i would like a little bit of a spread. i'm not worried about the italian election. francine: why not? >> italy has created about one million jobs. gdp has risen 1.5%, as opposed to expectations below 1%. we don't know h

it was the german finance ministry celebrating the tenure of wolfgang schaeuble and they do it by dressing -- zero. [laughter] not know if you can look at a picture and make a definition. jonathan: culturally, this is where things will stay, balance budgets in germany. >> there has been tremendous improvement in germany and you have to recognize that. it has been reflected in assets, particular risk assets in the eurozone. there is still work to be done. >> this was to say goodbye. that is the big change coming. there is anus -- >> article in the german press how much this coalition will spend, adding up the promises, 100, 150 billion euros. i am pretty sure we will get looser fiscal policy in germany in the next few years. david: terry simpson, blackrock and markus schomer of pinebridge investments will both be staying with us and we will talk to steven swartz coming up, the first president and ceo. ♪ david: this is bloomberg, i am david westin. u.s. -- --will tell you this graph blackrock may this goal. -- made this call. and we have markus schomer from pinebridge. >> the graph is indica