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Speaker 1: This is Bloomberg Surveillance the victory of Leave and Brexit.

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Speaker 1: I'm doing different things given the NATO majority with which

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Speaker 1: Leave has won, but actually my in fact never occurred.

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Speaker 1: The UK is really not that importer for most of

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Speaker 1: oberg in Asia, Coreason for China. This is a continuation

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Speaker 1: of the crisis that has not gone away, and we

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Speaker 1: may well see the more year. Good Bloomberg Surveillance your

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Speaker 1: link to the world of economics, finance and investment on

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Speaker 1: Bloomberg Radio. Good morning everyone, Michael McKee and Tom Keane

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Speaker 1: this day from Washington, d C. We welcome all of

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Speaker 1: you to our studios here in Washington. Later this morning

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Speaker 1: a conversation with Alan Greenspan, and then Michael McKee and

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Speaker 1: I will travel one or two blocks away for a

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Speaker 1: conversation with a former Secretary of State Madeline Albright will

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Speaker 1: join us as well. Let me get our good support

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Speaker 1: and messages for an eight am our Bloomberg Surveillance and

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Speaker 1: War Shton, London and New York March You by Cone

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Speaker 1: RESNEC Accounting Tax Advisory. Is your business ready to break through?

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Speaker 1: dot uh com. Michael, let's get through a data check

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Speaker 1: here to get to our steam guest, uh quickly, Sterling

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Speaker 1: simply doesn't have a bid one STE is at an

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Speaker 1: ugly half hour of it continued appreciation. We are well

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Speaker 1: over ten big figures away from where we were a

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Speaker 1: number of days ago. Euro rather under one ten one,

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Speaker 1: and Michael, very quickly, her future is negative eighteen non

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Speaker 1: negative sixteen a little bit. What else do you see, Mike, Well,

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Speaker 1: here's what we're gonna be talking to Karen through in

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Speaker 1: a moment. Let's look at what's happening with the banks

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Speaker 1: in Europe. The Europe the Eurostock six Bank index is

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Speaker 1: down seven point six percent this morning. It is the

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Speaker 1: worst two day performance in years. You're looking at Deutsche Bank,

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Speaker 1: you've been focused on that at UH twelve point two euros.

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Speaker 1: It's down eight and a half percent, Standard Chartered down

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Speaker 1: six percent, Barkley's is ugly down nine. Yeah, and so

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Speaker 1: far this morning. We need we need to be clear

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Speaker 1: that there's a nuance to banking from too big to

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Speaker 1: fail big European banks, And in every single interview, the

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Speaker 1: pros are looking at the midsize of the small banks,

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Speaker 1: and then uh, I want to look at this one.

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Speaker 1: UNI Credit is off seven point three percent this morning.

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Speaker 1: There are reports that the Italian government is planning a

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Speaker 1: forty billion euro injection of capital into the banking system there,

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Speaker 1: and yet that has not increased confidence in Italian banks.

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Speaker 1: This morning, we have a wonderful guest, really truly the

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Speaker 1: right guest at the right time. I'm banking. Karen Shaw

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Speaker 1: Petro out of Wellesley, out of m I T and

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Speaker 1: Berkeley owns the high ground on banking analysis. I think

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Speaker 1: I have right, don't I? Mike, Yes, Karen, as you

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Speaker 1: sit with your prism of American banking, I critically want

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Speaker 1: to know does Europe have the regulatory and processes to

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Speaker 1: adjust an amend their European system like we assume we

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Speaker 1: have here, or is it just a totally different beast

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Speaker 1: It's different there. Um. I very much hope that first

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Speaker 1: with they're back to the wall, some of the squabbling

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Speaker 1: will end. And also, I think very importantly in Europe,

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Speaker 1: as in the United States, the financial system is very

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Speaker 1: dependent on the very biggest banks, and particularly in terms

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Speaker 1: of overnight the kind of stock market and currency and

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Speaker 1: liquidity gyrations that Mike is describing all of that runs

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Speaker 1: first through the very biggest banks, and each of them,

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Speaker 1: even the weakest of the very big banks, like a

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Speaker 1: hunic credit is fundamentally and far stronger than it was

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Speaker 1: in two thousand eight. Well, even that may though that

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Speaker 1: may be the case, you have to ask how close

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Speaker 1: to a real systemic problem could we be in Europe

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Speaker 1: if you look at banks like those in Italy with

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Speaker 1: tough capital situations, who have now taken an even greater

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Speaker 1: hit on their equity. The the thing I think, Mike

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Speaker 1: is the near term, the really thing that that I'm watching.

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Speaker 1: Equity is a forward looking earnings price. Survival is overnight funding,

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Speaker 1: thank you. And we need to keep the lifeblood of

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Speaker 1: the financial system moving so that each one of the banks,

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Speaker 1: and therefore each one of their customers pays its bills

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Speaker 1: every minute of every day. And despite the blood all

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Speaker 1: over the floor and equity markets were, we're not in

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Speaker 1: a Lehman moment, at least not not yet. Let's go

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Speaker 1: back to our clinic. We need a Monday Primmer. What's

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Speaker 1: the different between solvency and liquidity? That's not a primary question, Tom,

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Speaker 1: because some days the line is very, very fuzzy, but

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Speaker 1: liquidity means you can pay your bills because you're solvent,

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Speaker 1: but you need your money that you lent to somebody

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Speaker 1: else to come back to you, so you can pay

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Speaker 1: your bills and turn to the people who you owe.

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Speaker 1: Every minute of every day, trillions, tens of trillions of

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Speaker 1: dollars are flying through the financial infrastructure, and that has

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Speaker 1: to work. What happened in two thousand and eight was

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Speaker 1: that Lehman couldn't pay its bills, not necessarily in a week,

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Speaker 1: but that minute. And that's what blew what the as

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Speaker 1: lungs we're doing the primer stage here, is there a

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Speaker 1: difference in funding models between the US and Europe. Are

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Speaker 1: European banks as dependent on the wholesale funding overnight funding

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Speaker 1: as American banks have been. Actually, in many ways they're

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Speaker 1: more dependent. Um. They and the financial systems in Europe

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Speaker 1: are more dependent on banks than in the United States. Um.

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Speaker 1: But let me just throw a statistic out that for

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Speaker 1: US banks, for example, the biggest US banks, the ones

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Speaker 1: maybe they're too big to fail, I hope they're not,

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Speaker 1: but they're the ones I know we depend on. Since

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Speaker 1: the crisis of the biggest US banks balance sheet are

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Speaker 1: now Treasury securities, government agency debt, highly liquid assets that

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Speaker 1: they can sell for cash. Maybe not as much cash

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Speaker 1: as they wanted, but they can sell for cash. When

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Speaker 1: the financial crisis hit in two thousand and eight, they

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Speaker 1: let alone the other and the EU banks are better.

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Speaker 1: They're better than they were. They're not great, but they're better.

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Speaker 1: What will we see mergers and acquisitions? I remember just

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Speaker 1: the rep up of my healthy I mean, Jamie Diamond

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Speaker 1: was at Bank one. I don't know what that became,

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Speaker 1: and that there was a whole Boston Bay Bank, uh

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Speaker 1: Bank of Boston things. Can that happen in Europe? That's

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Speaker 1: a great question, And that's where the difference is. It's

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Speaker 1: it's really here where we're one country. They're they're twenty

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Speaker 1: seven countries, most of whom don't really like each other.

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Speaker 1: And an integrated European banking system is a much more

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Speaker 1: complicated question than than ours here. I think it's states

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Speaker 1: support tom and not so much mergers and market solutions. Well,

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Speaker 1: it's not an integrated banking system yet, but you do

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Speaker 1: have one entity, the ECB that sort of gets stuck

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Speaker 1: with the bill um, you know, if it comes due.

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Speaker 1: How capable are European systems with dealing with any kind

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Speaker 1: of systemic crisis At the moment, they don't know, so

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Speaker 1: I don't know. I think the answer is they will

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Speaker 1: do what it takes. That's Mario draws longstanding promise and

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Speaker 1: he will keep that commitment at the market. I believe

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Speaker 1: expects that the complexity comes because you have the Eurozone,

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Speaker 1: then you have the peripherals, and you have local currencies

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Speaker 1: and the pound so within the Eurozone, I I really

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Speaker 1: do believe they will do what it takes and then

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Speaker 1: pick up the policy pieces later. Karen, uh what it's

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Speaker 1: like to see George Osborne on stage with James Diamond

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Speaker 1: in the United Kingdom last week. I can't imagine a

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Speaker 1: major banker in the United States, even Mr Stump of

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Speaker 1: Wells Fargo a bit removed from the folly on stage

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Speaker 1: with Jack lou what's the relationship of our bankers with

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Speaker 1: the rest of America, with the people of America? Now?

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Speaker 1: Are they bonding and connecting like Mr Diamond bonded with

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Speaker 1: the Chancellor of the Exchequer? Uh? No, I don't think

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Speaker 1: Americans like their banks very much, and in the in

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Speaker 1: London in particular, the the UK economy is so much

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Speaker 1: more dependent on finance and therefore banks than our or

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Speaker 1: is that the political relationship is a little bit different too.

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Speaker 1: Before we let you go, I have to ask the

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Speaker 1: how the the US is shaping up now with the

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Speaker 1: Republicans talking about repealing Dodd Frank UH and UM changes

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Speaker 1: coming in in regulation one way or another. Are we

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Speaker 1: at a point where banks can operate in enough certainty

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Speaker 1: that they can make money but still be safer. I

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Speaker 1: think the short answer to the terrific question is no. UM.

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Speaker 1: The uncertainty is I believe, and I've I've been working

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Speaker 1: on running some numbers that one of the major reasons

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Speaker 1: that recovery is so slow is that the banking system

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Speaker 1: is unable in some ways and uncertain in others about

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Speaker 1: putting money back into the economy. If we don't clear

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Speaker 1: up that uncertainty, I really don't see how we get

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Speaker 1: the economy moving. We need to stay on stage for

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Speaker 1: the next eight hours. You put a bit on the

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Speaker 1: s You single handedly have lifted Sterling in the last

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Speaker 1: five I'll stay here all week. Jaren Petro with Federal

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Speaker 1: Financial Analytics UH, talking to us on the future of

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Speaker 1: our banking system. Mike Sterling a low one thirty one

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Speaker 1: fifty two up to seven. It's the true rally. I'm

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Speaker 1: not gonna call about him yet. I guess fure future

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Speaker 1: is negative eighteen or now negative thirteen, So a little

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Speaker 1: bit of a better feeling the market, and I think

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Speaker 1: the key thing to stake this morning, folks, is Michael

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Speaker 1: McKee mentioned is with volume coming in towards the New

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Speaker 1: York trading day, uh, many of the vectors trying to

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Speaker 1: find a bid from Washington Later, Ellen Green Span this

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Speaker 1: is Bloomberg surveillance. Let's check in with Michael by now

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Speaker 1: and get the latest world and national headlines. Michael, Mine, Tom,

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Speaker 1: Thank you very much. The Supreme Court has set to

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Speaker 1: close out at the current term before the summer recess.

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Speaker 1: There are three remaining cases after a flurry of decisions

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Speaker 1: last week. The last trio of cases are regulation of

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Speaker 1: Texas abortion clinics, federal law that seeks to keep guns

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Speaker 1: out of the hands of people convicted of domestic violence,

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Speaker 1: and the public corruption conviction of former governor Bob McDonald

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Speaker 1: of Virginia. Secretary of State John Kerry has meetings today

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Speaker 1: in Brussels and London about Britain voting to leave the EU.

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Speaker 1: Carry is urging Britain and the European Union to work

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Speaker 1: together to calm markets. West Virginia has already been founded

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Speaker 1: by heavy rains and may have new flooding problems this week.

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Speaker 1: More heavy rain is forecast today in the same area

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Speaker 1: where floodwaters have already killed at least twenty five people.

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Speaker 1: Global News twenty four hours a day, powered by more

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Speaker 1: than twenty six hundred journalists and analysts more than one

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Speaker 1: hundred twenty countries. Michael Barr, this is Bloomberg, Mike, Tom Michael,

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Speaker 1: thanks so much. The Secretary of Treasury out with the

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Speaker 1: headlines now across the Bloomberg contingent. Steps are taken on liquidity,

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Speaker 1: We'll have more. It's Bloomberg Surves What does Brexit mean

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Speaker 1: for the global economy? Coming up nine o'clock Wall Street Time.

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Speaker 1: Alan grad Spent, the former FED chairman, joins Tom Keene

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Speaker 1: and myself on this special edition of Bloomberg Surveillance. Global

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Speaker 1: Business News twenty four hours a day, if Bloomberg dot Com,

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Speaker 1: the radio plus mobile app and on your radio. This

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Speaker 1: is a Bloomberg Business Flash and I'm Karen Moscow. The

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Speaker 1: after shocks of the UK's vote to leave the EU

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Speaker 1: reverberating across financial markets after a weekend of political turmoil,

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Speaker 1: with a pound extending its records, sell off in European

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Speaker 1: equities dropping to levels last scene in February. Let's go

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Speaker 1: to the first Bird breaking news desk for today's morning call.

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Speaker 1: Here's Bill Maloney. Good morning, Bill, Good morning Karen. That's right.

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Speaker 1: Breaks It followed continues with the U S features under

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Speaker 1: pressure this morning, death yougure lowered by a hundred nineteen points,

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Speaker 1: has to be, futures up fourteen and Nazak futures a

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Speaker 1: climb by thirty five. The US ten yel drops to

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Speaker 1: one point for seven per cent. The knee k jumped

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Speaker 1: two point four percent overnight. Well. Europe is also under pressure,

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Speaker 1: with most markets down two percent. The pound fell below

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Speaker 1: Friday's low and the UK ten yield drop below one

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Speaker 1: percent for the first time on record. On the US

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Speaker 1: Economic Frinday eight dirty advanced goods trade balance at market,

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Speaker 1: U S Services p m I and at ten thirty

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Speaker 1: Dallas fed. In other news, the Financial Time supported that

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Speaker 1: Intel is set to a sale of its cyber security unit,

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Speaker 1: and in dear news, Metronic to buy HeartWare for fifty

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Speaker 1: eight dollars a share in cash. Finally, some of your

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Speaker 1: wallsheet upgrades and downgrades. Bank of American downgrades is Semis

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Speaker 1: and XP Analog Devices and maxim Investco cut to neutral

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Speaker 1: over at City Group. Manpower Group down graded to neutral

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Speaker 1: trade sweez ad Co cut to underweighted. Jping Morgan and

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Speaker 1: Leonar raised outperform over at Raymond James Live from the

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Speaker 1: First Breaking News Desk on Bill Maloney. Karen thanks Bill

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Speaker 1: to hear by breaking news over your Bloomberg type squawk

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Speaker 1: and go on your terminal. That's ask you you a

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Speaker 1: w K go and that's a Bloomberg business flash. Tom

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Speaker 1: and Mike Karen thanks so much stability to the tape.

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Speaker 1: We're a negative eight teen before and now we're negative

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Speaker 1: fourteen as well, and now joining us the Washington Post.

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Speaker 1: We're in Washington and the Brooking Institution and the man

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Speaker 1: we Uh turn to for good political advice, and the

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Speaker 1: men that perhaps Uh, the owner of a Scottish golf

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Speaker 1: course should turn too for good political advice. That would

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Speaker 1: be true because he is truly one of our great

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Speaker 1: writers and thinkers on American religion. He did this out

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Speaker 1: of Portsmouth Abbey and Rhode Island, South of Boston a

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Speaker 1: number of years ago. Mike, why don't you pick it

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Speaker 1: up on Mr Trump and want let let's just go there.

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Speaker 1: Donald Trump goes to Scotland to the reopening of his

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Speaker 1: Turnberry golf resort and says Brexit may be a good

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Speaker 1: thing because I'll make more money as the tourists come

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Speaker 1: to Scotland. Already. That was Friday. Yesterday. Hillary Clinton was

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Speaker 1: on the air with ads saying, how could you possibly

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Speaker 1: do this? Uh, he's Trump finding out that he's now

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Speaker 1: in the big leagues of political campaign He's tried to

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Speaker 1: be with you guys. Thank you, And I don't think

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Speaker 1: Donald Trump is gonna call me for advice. And that's

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Speaker 1: okay with me. Um. I found you know, every time

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Speaker 1: you say Trump isn't going to surprise me anymore, he

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Speaker 1: surprises you again because he has been completely unable to

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Speaker 1: separate himself his personal business interests from the fact that

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Speaker 1: he's running for president. I mean, this is an astonishing thing.

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Speaker 1: How many people lost how much money? And I'm not

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Speaker 1: just talking about really rich people, but take a look

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Speaker 1: at all the people in their retirement accounts who were

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Speaker 1: just hit so hard by Britain's decision and the market's response.

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Speaker 1: And here all Trump can talk talk about uh is

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Speaker 1: or the maintaing Trump talks about is the fact that

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Speaker 1: a low pound will make people come up to his

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Speaker 1: golf course in Scotland. It was really amazing. And so

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Speaker 1: it's not surprising that Hillary Clinton jumped on that because

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Speaker 1: you know, one of many issues that's going to be

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Speaker 1: used against Donald Trump is this extreme narcissism. I mean,

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Speaker 1: I'm almost getting think of the term narcissism. We are

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Speaker 1: all using it about Trump, but it's very hard to

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Speaker 1: find a term that better describes his approach to running

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Speaker 1: for president, and a lot of people are afraid to

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Speaker 1: being president if he ever got there. Yeah, e J.

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Speaker 1: You were doing multicultural religious analysis before it was even

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Speaker 1: thought of in America. I think you worked on that

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Speaker 1: for Madison in Washington a few years ago. And as usually,

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Speaker 1: you've got a brilliant sentence suggesting that the candidate, in

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Speaker 1: this case, Mr Trump, seems uncomfortable around the subject. I

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Speaker 1: don't recollect it. America elects uncomfortable people. Bob Dole, who

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Speaker 1: was a great American hero, he struggled with uncomfortable. I'll

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Speaker 1: be with the word uncomfortable of what you observe. Well,

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Speaker 1: when you see Trump talking about religion, it seems to

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Speaker 1: be of a guy for whom uh it is not

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Speaker 1: particularly important. Remember that line during the primary where it

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Speaker 1: talks about the wine and the cracker, which is not

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Speaker 1: somebody who sort of reveres religion kind of line they use,

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Speaker 1: or the way he refers to Scripture. Yet he knows

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Speaker 1: that conservative, white, conservative evangelical Christians are a very important

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Speaker 1: part of the Republican base, and so um, he knows

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Speaker 1: he has to talk about it. And um, last week

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Speaker 1: I wrote about this sort of attack, saying, we haven't

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Speaker 1: heard anything about Hillary Clinton's religion. Um, well, obviously he

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Speaker 1: hasn't been listening. Everybody, including Clinton's critics, know that method

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Speaker 1: or methodism is very important to who she is, just

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Speaker 1: as every critic of George W. Bush uh took very

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Speaker 1: seriously his religious commitment. And here you have a candidate

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Speaker 1: who not only goes after Clinton's religion. Um. He asked

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Speaker 1: his mitt Romney really a Mormon? Uh? And of course

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Speaker 1: when you look at Romney's life, his faith was deeply

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Speaker 1: important all the way through. He went after Ben Carson

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Speaker 1: for being an Adventist. I just can't, I cannot remember,

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Speaker 1: and I'm not sure there ever was a politician who

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Speaker 1: went so directly at the different religions of so many people.

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Speaker 1: And I think with Trump, um, it's not clear what

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Speaker 1: he wants to say on the you know, on the offense,

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Speaker 1: so he doesn't on the on the offense, I have himself,

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Speaker 1: so he does it on the attack. He also says,

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Speaker 1: by the way, everybody will be able to say Merry

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Speaker 1: Christmas and stores if he's president. I don't know how

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Speaker 1: he's going to legislate that. A j thank you so

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Speaker 1: much for joining us. We've got to keep it short

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Speaker 1: today because of news in Europe, Mr Dione, the wash

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Speaker 1: didn't post in the Brookings Institution. Mike, that's a stunning

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Speaker 1: headline from the chancellor at Germany TRUP. It is the

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Speaker 1: is the latest on the whole topic. Angela Marcoll, talking

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Speaker 1: in Berlin, says there will be no informal talks before

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Speaker 1: the UK files it's EU exit papers, triggering an article fifty. However,

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Speaker 1: she is leviting that by saying she has some sympathy

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Speaker 1: if the UK needs time. I wonder if those talks

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Speaker 1: go with Scotland as well. I would presume they do well.

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Speaker 1: That it isn't clear from the headline, but the Scots

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Speaker 1: are hoping to negotiate with the EU to have a

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Speaker 1: path to remain in if the English and Wales portions

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Speaker 1: of Great Britain want to leave, that's all they do.

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Speaker 1: And they know you're the euro Soccer match going on

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Speaker 1: right now. What I know is a big came out

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Speaker 1: of the market negative thirteen. We're now negative sixteen on

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Speaker 1: future stuff. He's just negative one three. Uh sterling. If

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Speaker 1: I can find out there's you're there. There's one one

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Speaker 1: sixty two from Washington with Alan Greenspan Bloomberg Surveillance that,

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Speaker 1: live to New York, Bloomberg eleventh, Rio to Washington, d C,

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Speaker 1: This is Bloomberg Surveillance. Good morning from Washington, d C.

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Speaker 1: Michael McKee and Tom Keene a very special edition of

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Speaker 1: Bloomberg Surveillance this morning, as we keep track on of

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Speaker 1: what's going on in Washington and around the world in

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Speaker 1: the wake of the British decision to leave the e you,

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Speaker 1: we can tell you markets are lower. The foot see

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Speaker 1: trading down a hundred and twenty five points now the

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Speaker 1: pound going for one thirty one sixty six are economic

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Speaker 1: Vinnie del Judai says word on trade in the US, Mike,

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Speaker 1: what's the merchandise trade deficit from May? We're waiting for

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Speaker 1: the number for some reason. It's not out yet, but

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Speaker 1: let me tell you the forecast fifty nine point five

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Speaker 1: billion dollars. That would be wider than the prior month

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Speaker 1: May versus April. We'll get the full trade report and

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Speaker 1: goods and services July six at the Bloombert first word

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Speaker 1: desc company del Judi. Let's go back to Washington. All right, Well,

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Speaker 1: we'll keep it I Vinny on that number. For some reason,

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Speaker 1: as you mentioned, it is delayed as supposed to be

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Speaker 1: out at eight thirty this morning, and it Uh, here

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Speaker 1: we go. We've just got the number. It is sixty

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Speaker 1: point six. So it is a deterioration from the month

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Speaker 1: of April, which was fifty five. The merchandise trade balance

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Speaker 1: widens to sixty point six billion, and that is generally

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Speaker 1: seen as a drag on the overall level of the economy.

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Speaker 1: But we will keep you informed as the quarter goes on.

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Speaker 1: It's the first number of the quarter, first trade number

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Speaker 1: of the quarter. Tom, Well, let's to talk about this morning,

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Speaker 1: and I think one thing, one person to catch up with.

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Speaker 1: We could have like four different interviews with Gary Gunsler.

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Speaker 1: I mean he's he's he's the democrat or the supporter

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Speaker 1: of Democrat policy where Republicans lean forward and listen just

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Speaker 1: to find out what's going through his brain. Go through

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Speaker 1: his careers here quickly, ce FTC. We know that public

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Speaker 1: service at Treasury uh to to extensive that and now

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Speaker 1: I guess it's a public service for Republicans or Democrats.

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Speaker 1: He's providing continuity and intelligence to the former secretary of State.

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Speaker 1: Good morning, Gary Gunsler, What are you doing for Mrs Clinton?

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Speaker 1: Tom Thank you so much for having me back on

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Speaker 1: your show. I well, Uh, she's running for president, as

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Speaker 1: you know, and uh, I think she'd be the terrific

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Speaker 1: uh as a forty fifth president and her campaign's chief

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Speaker 1: financial officer. That's getting more it's really getting more mission

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Speaker 1: for the money. I mean, all of these wonderful supporters,

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Speaker 1: small dollar donors and and and and even larger downers

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Speaker 1: who want to ensure that their money is invested well

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Speaker 1: and uh robust uh campaign right. So, Gary, are you

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Speaker 1: the one that tells the intern from Georgetown that after taxes,

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Speaker 1: room board and fair they made twelve dollars this month?

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Speaker 1: Are you the one that tells them that, Well, I'm

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Speaker 1: I'm involved in uh whatever campaign manager Robbie Luke wants

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Speaker 1: me to do. But it's really a largely what a

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Speaker 1: chief financial officer does. And uh, we're trying to put

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Speaker 1: as much of the Secretary Clinton's message out before voters,

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Speaker 1: and that's getting people in the field in the battleground

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Speaker 1: states as well as ensuring that we've got the right

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Speaker 1: analytics and data and of course have some resources to

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Speaker 1: put advertisement on radio and TV. What is the discussion

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Speaker 1: inside the campaign post brexit Europe? Former Goldman Sachs executive.

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Speaker 1: Hillary Clinton was a senator from New York who was

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Speaker 1: seen as very friendly to Wall Street, and yet now

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Speaker 1: you've got this political earthquake shaking people up. The possibility

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Speaker 1: to maybe the resentments on the against the banks are

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Speaker 1: still out there. UM. I think that what it reminds

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Speaker 1: us of again is the need for calm, experienced leadership

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Speaker 1: in times that it can be volatile. And UH, the

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Speaker 1: the public in the United Kingdom decided UH this past

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Speaker 1: week to leave the European Union, and as you saw,

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Speaker 1: markets UH moved dramatically. There's a significant uncertainty and it's

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Speaker 1: a time for the experience of Secretary Clinton rather than

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Speaker 1: as we saw Donald Trump a golf course in Scotland,

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Speaker 1: UH really talking about Brexit something that might advantage him

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Speaker 1: in his uh worldwide holdings in his golf Everybody knows

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Speaker 1: that Hillary Clinton was Secretary of State and that she's

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Speaker 1: got a lot of experience, etcetera. How do you deal

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Speaker 1: with the perception that and he Trump is certainly trying

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Speaker 1: to encourage it, that she is too friendly to the

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Speaker 1: big banks, to Wall Street at a time when the

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Speaker 1: vox populi is we don't like bankers. Um. Secretary Clinton's

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Speaker 1: laid out a very robust plan uh for ensuring that

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Speaker 1: Wall Street never again gambles with taxpayer dollars and puts

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Speaker 1: Main Street at risk. We have to go beyond the

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Speaker 1: very strong reforms put in place by President Obama and

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Speaker 1: which a reform plan called Dot Frank and ensure that

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Speaker 1: a note to bank is too big to fail, and

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Speaker 1: and and individuals have to be held accountable, not just corporations.

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Speaker 1: Too often it's the other way around. One of the

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Speaker 1: great things about you, as people think you're an elite,

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Speaker 1: the fancy education, the fancy golden sex. You started out real,

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Speaker 1: real basic. How does for that matter? Mr? Trump? But

431
00:26:34,040 --> 00:26:39,080
Speaker 1: how does Secretary Clinton speak to an American public that

432
00:26:39,320 --> 00:26:42,760
Speaker 1: is worn out by all the gains going to the

433
00:26:42,840 --> 00:26:47,680
Speaker 1: elites like Gary Gensler, How does she speak to your childhood? Well,

434
00:26:48,040 --> 00:26:51,080
Speaker 1: she speaks, she speaks I think all of our childhoods

435
00:26:51,440 --> 00:26:56,080
Speaker 1: uh by listening foremost listening to people and uh that

436
00:26:56,320 --> 00:26:58,639
Speaker 1: they don't have enough for their healthcare, they don't have

437
00:26:58,880 --> 00:27:03,440
Speaker 1: enough for their college. That we have a robust plan

438
00:27:03,560 --> 00:27:06,000
Speaker 1: and need to do more to ensure that college is

439
00:27:06,080 --> 00:27:10,240
Speaker 1: debt free. Um. And she speaks to him to ensure

440
00:27:10,400 --> 00:27:14,280
Speaker 1: that in the workplace that everybody gets a fair shake

441
00:27:14,359 --> 00:27:16,280
Speaker 1: and it's not just the top one percent of the

442
00:27:16,320 --> 00:27:19,840
Speaker 1: corporate executives. Garret Gunsler, wonderful to catch up with you.

443
00:27:20,000 --> 00:27:23,680
Speaker 1: Really look forward to speaking to you. Is a campaign unfold.

444
00:27:23,920 --> 00:27:28,400
Speaker 1: Mr Gunsler is the chief financial officer a Secretary Clinton's campaign.

445
00:27:28,520 --> 00:27:30,520
Speaker 1: Michael McKee and Tim Keene were getting ready for a

446
00:27:30,600 --> 00:27:38,439
Speaker 1: conversation with Alan Greenspan from Washington Bloomberg Surveillance. All right,

447
00:27:38,520 --> 00:27:40,359
Speaker 1: let's check out with Michael BYRT and get the latest

448
00:27:40,400 --> 00:27:43,040
Speaker 1: world in national headlines. Michael, fake time, Thank you very much.

449
00:27:43,119 --> 00:27:45,600
Speaker 1: The Supreme Court plans to close out its current term

450
00:27:45,680 --> 00:27:49,560
Speaker 1: with opinions today in three cases. The justices. Last three

451
00:27:49,640 --> 00:27:53,920
Speaker 1: cases concerned regulation of Texas abortion clinics, the public corruption

452
00:27:53,960 --> 00:27:57,560
Speaker 1: conviction of former Virginia Governor Bob McDonnell, and a federal

453
00:27:57,680 --> 00:27:59,399
Speaker 1: law meant to keep guns out of the hands of

454
00:27:59,440 --> 00:28:03,120
Speaker 1: people con that of domestic violence. Officials say two thousand

455
00:28:03,200 --> 00:28:07,440
Speaker 1: firefighters continue to battle of wildfire in central California that

456
00:28:07,640 --> 00:28:11,080
Speaker 1: has killed at least two people and possibly more. About

457
00:28:11,119 --> 00:28:13,800
Speaker 1: two hundred homes have been destroyed, including one belonging to

458
00:28:13,880 --> 00:28:24,240
Speaker 1: this woman. Containment on the square mile blaze increased from ten.

459
00:28:25,800 --> 00:28:29,400
Speaker 1: It could be busy on the nation's roadways this holiday weekend.

460
00:28:29,800 --> 00:28:32,720
Speaker 1: Triple A estimates tens of millions of road trips this

461
00:28:32,840 --> 00:28:36,399
Speaker 1: Independence Day weekend will help break last year's travel record.

462
00:28:36,840 --> 00:28:40,000
Speaker 1: Triple as has because of cheaper gas prices. About fourty

463
00:28:40,120 --> 00:28:43,440
Speaker 1: three million Americans will go somewhere this Independence Day weekend,

464
00:28:43,840 --> 00:28:47,720
Speaker 1: with the overwhelming majority driving global news twenty four hours

465
00:28:47,800 --> 00:28:50,960
Speaker 1: a day, powered by more than twenty hundred journalists and

466
00:28:51,000 --> 00:28:53,960
Speaker 1: analysts in more than a hundred twenty countries. Michael bar

467
00:28:54,160 --> 00:28:58,240
Speaker 1: this is Bloomberg. Tom all right, thank you time now

468
00:28:58,360 --> 00:29:00,840
Speaker 1: for the Bloomberg n we see sports update. Here's drop

469
00:29:01,000 --> 00:29:04,280
Speaker 1: push up. Good morning, Mike and Tom. The sweep was

470
00:29:04,360 --> 00:29:06,360
Speaker 1: not to be for the Yanks, who stumbled in a

471
00:29:06,440 --> 00:29:08,360
Speaker 1: four run six inning and route to a seven one

472
00:29:08,440 --> 00:29:11,400
Speaker 1: lost in Minnesota at the stadium. Ethan new Valdi starting

473
00:29:11,400 --> 00:29:13,200
Speaker 1: pitcher on what went wrong? You know, I think it

474
00:29:13,280 --> 00:29:15,280
Speaker 1: was just a two out walk. I had to I

475
00:29:15,320 --> 00:29:17,840
Speaker 1: gotta be able to turn the page and continue to attack,

476
00:29:17,960 --> 00:29:21,800
Speaker 1: and then I hung to split to uh tozer Homer

477
00:29:21,840 --> 00:29:25,719
Speaker 1: and then you know, three two calendar hung the slidder

478
00:29:25,760 --> 00:29:29,000
Speaker 1: and then he trailed just one nothing at that point.

479
00:29:29,080 --> 00:29:31,800
Speaker 1: Who Valdi is now six and five homestand continues to

480
00:29:31,920 --> 00:29:34,600
Speaker 1: night with the first place Texas Rangers in town Ivanova,

481
00:29:34,840 --> 00:29:37,680
Speaker 1: welcoming chee cheap Gonzalez. The Mets dropped to five to

482
00:29:37,880 --> 00:29:40,959
Speaker 1: decision in Atlanta. Tough luck loss for Bartolo Cologne, who

483
00:29:40,960 --> 00:29:43,760
Speaker 1: allowed just one run in seven innings. Wilma Flora is

484
00:29:43,800 --> 00:29:46,200
Speaker 1: the only Met with a multi hit game. New York

485
00:29:46,280 --> 00:29:49,520
Speaker 1: heads to Washington to face first place Nationals tonight. Noahs

486
00:29:49,560 --> 00:29:52,560
Speaker 1: Ynderguard versus Joe Ross and here's a name in The

487
00:29:52,640 --> 00:29:55,040
Speaker 1: Mats signed Jose Reyus over the weekend, the thirty three

488
00:29:55,120 --> 00:29:57,360
Speaker 1: year old who started New York for the Mats from

489
00:29:57,440 --> 00:30:00,480
Speaker 1: oh three toleven. He went over three no wears while

490
00:30:00,520 --> 00:30:03,840
Speaker 1: playing six innings at third base for Class A Brooklyn.

491
00:30:04,120 --> 00:30:06,360
Speaker 1: NASCAR was a long time coming for Tony Stewart. He

492
00:30:06,400 --> 00:30:09,640
Speaker 1: captured his first checkered flag in eighty four races, conquering

493
00:30:09,760 --> 00:30:12,880
Speaker 1: Sonoma and on the pitch Copa America title goes to

494
00:30:13,120 --> 00:30:16,120
Speaker 1: Chile again. They beat Argentina in a repeat of the

495
00:30:16,280 --> 00:30:19,320
Speaker 1: twenty fifteen game, Chile one on penalty kicks in the

496
00:30:19,400 --> 00:30:22,000
Speaker 1: world's top right of player, Leonel Messi said he's tired

497
00:30:22,040 --> 00:30:24,440
Speaker 1: of losing with Argentina. After the match, he's done playing

498
00:30:24,480 --> 00:30:27,520
Speaker 1: for them. That's your NBC Bloomberg Sports update, Mike, Tom

499
00:30:28,280 --> 00:30:30,520
Speaker 1: thanks so much. Appreciate that, Mike. The last time we

500
00:30:30,600 --> 00:30:33,320
Speaker 1: were here, I believe we saw a hockey game between

501
00:30:33,360 --> 00:30:36,840
Speaker 1: the Washington Capitals and another team. I can't remember who

502
00:30:36,920 --> 00:30:42,640
Speaker 1: that was. Yeah, they didn't look good. That the Nationals.

503
00:30:42,720 --> 00:30:45,960
Speaker 1: We can first place five seventy nine ball play guard

504
00:30:46,040 --> 00:30:48,400
Speaker 1: New York Metropolitans. We should stay for the I think

505
00:30:48,400 --> 00:30:51,480
Speaker 1: we should stay. Forget about London. Forgot about Maybe they

506
00:30:51,560 --> 00:30:54,480
Speaker 1: may be sitting us to Paducca next there it is,

507
00:30:54,560 --> 00:30:56,840
Speaker 1: but tonight, I guess Washington and New York a good

508
00:30:56,920 --> 00:30:59,920
Speaker 1: game with good pitching. We have a bit to them.

509
00:31:00,080 --> 00:31:03,240
Speaker 1: Arketicizable bid to the market off that negative eighteen futures

510
00:31:03,600 --> 00:31:07,560
Speaker 1: now negative ten. Michael McKeon Tom Keane from our studios

511
00:31:07,720 --> 00:31:13,000
Speaker 1: in Washington, coming up a conversation with Alan Greenspan. This

512
00:31:13,160 --> 00:31:23,040
Speaker 1: is Bloomberg Surveillance. Italian banks are Italian banks are lower.

513
00:31:23,120 --> 00:31:26,040
Speaker 1: We're gonna talk with Christopher Wheeler about what happens next

514
00:31:26,080 --> 00:31:28,640
Speaker 1: to the global banking system in the wake of the

515
00:31:28,760 --> 00:31:33,240
Speaker 1: Brexit vote right here on Bloomberg Surveillance Live from Washington,

516
00:31:37,480 --> 00:31:40,840
Speaker 1: Bloobal Business News twenty four hours a day at Bloomberg

517
00:31:40,880 --> 00:31:43,960
Speaker 1: dot Com, the radio plus mobile lap and on your radio.

518
00:31:44,280 --> 00:31:48,280
Speaker 1: This is a Bloomberg Business Flash and I'm Karen Moscow.

519
00:31:48,400 --> 00:31:50,960
Speaker 1: This updates brought to you Bisector Spider e t F.

520
00:31:51,040 --> 00:31:52,880
Speaker 1: So I buy a single stock and you can invest

521
00:31:52,920 --> 00:31:56,520
Speaker 1: in the entire sector. Visits sector spd r SA dot

522
00:31:56,600 --> 00:32:00,760
Speaker 1: com or call sector et F. After shocks of the

523
00:32:00,840 --> 00:32:04,320
Speaker 1: UK's vote to leave the European Union reverberating across financial

524
00:32:04,440 --> 00:32:07,440
Speaker 1: markets after a weekend of political turmoil, the pound is

525
00:32:07,480 --> 00:32:10,320
Speaker 1: extending its records sell off. European equities are dropping to

526
00:32:10,440 --> 00:32:13,680
Speaker 1: levels last seen in February. U S stock index futures

527
00:32:13,720 --> 00:32:16,720
Speaker 1: also lower. We checked the markets every fifteen minutes throughout

528
00:32:16,760 --> 00:32:20,360
Speaker 1: the trading day Onloomberg. SNP Emity futures down twelve and

529
00:32:20,360 --> 00:32:22,960
Speaker 1: a half points now in many futures down one hundred

530
00:32:23,080 --> 00:32:27,080
Speaker 1: sixteen Nazdaki Many futures down thirty two decks. In Germany's

531
00:32:27,120 --> 00:32:29,440
Speaker 1: down two point one percent. So is the foot Sea

532
00:32:29,480 --> 00:32:32,760
Speaker 1: one hundred tenure treasury of twenty thirty seconds, the yield

533
00:32:32,800 --> 00:32:35,520
Speaker 1: one point four seven percent yield on the two year

534
00:32:35,600 --> 00:32:38,920
Speaker 1: point five seven percent. Nimax screwed oil down two point

535
00:32:38,960 --> 00:32:41,040
Speaker 1: two per cent, or a dollar two to forty six

536
00:32:41,120 --> 00:32:44,200
Speaker 1: sixty two a barrel Comax schoold is of nine ten percent,

537
00:32:44,320 --> 00:32:47,160
Speaker 1: or eleven dollars eighty cents to thirteen thirty four twenty

538
00:32:47,200 --> 00:32:49,960
Speaker 1: an ounce. The euro and dollar oh nine seven six,

539
00:32:50,080 --> 00:32:53,200
Speaker 1: the British pound a dollar thirty one eighty two, and

540
00:32:53,320 --> 00:32:56,720
Speaker 1: the yen one oh one point five seven. Mettronics saying

541
00:32:56,720 --> 00:33:00,400
Speaker 1: it'll buy Hardware International of Framingham, Massachusetts for about one

542
00:33:00,480 --> 00:33:04,240
Speaker 1: point one billion dollars Hardware up ninety two percent in

543
00:33:04,320 --> 00:33:08,600
Speaker 1: early trading. PepsiCo plenty to revamp its lineup of diet colas,

544
00:33:08,640 --> 00:33:11,880
Speaker 1: including renaming one product and releasing an older formulation of

545
00:33:11,960 --> 00:33:14,720
Speaker 1: another in a bid to revive sales. And that's a

546
00:33:14,760 --> 00:33:18,480
Speaker 1: Bloomberg business flash. Tom and Mike Karen, thank you very much.

547
00:33:18,520 --> 00:33:20,760
Speaker 1: We are watching futures turn around now and start to

548
00:33:20,880 --> 00:33:24,600
Speaker 1: deteriorate again. S andp features off by twelve about six

549
00:33:24,680 --> 00:33:26,680
Speaker 1: tenths of a percent. It's a seven tenths decline. For

550
00:33:26,800 --> 00:33:30,000
Speaker 1: Dow futures, they're down a hundred and twelve points right now,

551
00:33:30,040 --> 00:33:33,440
Speaker 1: and the AZDAC features off by thirty one three quarters

552
00:33:33,600 --> 00:33:35,640
Speaker 1: of a percent. The foot seat down a hundred and

553
00:33:35,760 --> 00:33:40,680
Speaker 1: twenty five points, the pound at one. The Bloomberg Futures

554
00:33:40,720 --> 00:33:43,360
Speaker 1: reporting is brought to you by Interactive Brokers and CME Group.

555
00:33:43,600 --> 00:33:46,680
Speaker 1: If you're looking for global futures contracts with low trading costs,

556
00:33:46,720 --> 00:33:50,160
Speaker 1: look no further. Interactive Brokers is the industry leader. Learn

557
00:33:50,200 --> 00:33:53,720
Speaker 1: more at Interactive Brokers dot com, slash, c m E Group.

558
00:33:54,160 --> 00:33:58,600
Speaker 1: It's on Wall Street. The following is from Bloomberg View.

559
00:33:58,920 --> 00:34:02,480
Speaker 1: Opinions in common area from Bloomberg columnists and Megan mccartell,

560
00:34:02,560 --> 00:34:05,280
Speaker 1: a columnist for Bloomberg View. Why did people vote for Brexit?

561
00:34:05,400 --> 00:34:07,840
Speaker 1: One answer is that transnational elites try to build a

562
00:34:07,920 --> 00:34:10,080
Speaker 1: state without a nation the current mess and the EU

563
00:34:10,360 --> 00:34:13,279
Speaker 1: is the result. There's a reason nineteenth century architects of

564
00:34:13,360 --> 00:34:16,800
Speaker 1: fledgling states spent so much time and effort nurturing national identity,

565
00:34:16,960 --> 00:34:19,400
Speaker 1: but the EU never did that work. No one identifies

566
00:34:19,440 --> 00:34:21,960
Speaker 1: themselves as European when you ask where they're from, and

567
00:34:22,000 --> 00:34:24,560
Speaker 1: while an EU white soccer team would be invincible, who

568
00:34:24,560 --> 00:34:27,160
Speaker 1: would root for it. These sorts of tribal affiliations do

569
00:34:27,280 --> 00:34:29,600
Speaker 1: cause problems, which is why elites were so eager to

570
00:34:29,680 --> 00:34:32,960
Speaker 1: tamp them down. Unfortunately, they're also what glues polities together

571
00:34:33,080 --> 00:34:35,959
Speaker 1: and makes people willing to sacrifice. Elites missed this because

572
00:34:36,040 --> 00:34:38,520
Speaker 1: they're the one group that has a transnational identity, and

573
00:34:38,560 --> 00:34:40,560
Speaker 1: in fact, the arguments for the EU look a lot

574
00:34:40,640 --> 00:34:43,400
Speaker 1: like the old arguments for national states. It empowers us

575
00:34:43,560 --> 00:34:47,319
Speaker 1: against them. Unhappily, for elites, there's no Cosmopolitistan to which

576
00:34:47,360 --> 00:34:49,520
Speaker 1: they can move. They have to live in physical places

577
00:34:49,600 --> 00:34:52,080
Speaker 1: filled with other people whose loyalties are to a particular

578
00:34:52,160 --> 00:34:53,920
Speaker 1: place in a way of life, not the joys of

579
00:34:54,000 --> 00:34:56,839
Speaker 1: rootless cosmopolitanism. So it would be folly to let their

580
00:34:56,840 --> 00:34:59,360
Speaker 1: fledgling identity drive them into a war with the neighbors

581
00:34:59,440 --> 00:35:01,359
Speaker 1: they can't win, and has happened with so many new

582
00:35:01,440 --> 00:35:04,400
Speaker 1: states in the nineteenth and twentieth centuries. Trying to reforge

583
00:35:04,440 --> 00:35:07,319
Speaker 1: common identities with those neighbors instead of demonizing them, would

584
00:35:07,320 --> 00:35:10,480
Speaker 1: be a good idea. Unfortunately, it's not clear that transnationalism

585
00:35:10,600 --> 00:35:12,960
Speaker 1: is any more capable of tempering its own accesses than

586
00:35:13,000 --> 00:35:15,839
Speaker 1: the nationalism that preceded it. I'm Megan McCardell from more View.

587
00:35:15,880 --> 00:35:17,840
Speaker 1: Please go to bloomberg View dot com review, go on

588
00:35:17,920 --> 00:35:22,520
Speaker 1: the bloomber terminal. This has been Bloomberg View. Limber View

589
00:35:22,560 --> 00:35:26,360
Speaker 1: commentaries can be heard hourly weekdays on Liemberg Radio. The

590
00:35:26,520 --> 00:35:31,160
Speaker 1: highlight this morning, besides headlines worth these in Europe has

591
00:35:31,239 --> 00:35:34,400
Speaker 1: been European banking. I don't know if they describe it

592
00:35:34,440 --> 00:35:38,040
Speaker 1: as highlight. Well, it's been important headlines. There's a headline

593
00:35:38,080 --> 00:35:40,399
Speaker 1: from miracle, there's a headline here, there's a headline there.

594
00:35:40,880 --> 00:35:45,240
Speaker 1: There are no headlines from the European bankers. Christopher Wheeler

595
00:35:45,280 --> 00:35:49,040
Speaker 1: has given us terrific perspective this weekend and before with

596
00:35:49,160 --> 00:35:53,920
Speaker 1: Atlantic Equities. Christopher Wheeler, you've worked at major London banks,

597
00:35:54,320 --> 00:35:58,400
Speaker 1: You've studied their financials. What are the bankers of Europe

598
00:35:58,520 --> 00:36:01,600
Speaker 1: doing right now? What what do they do when they

599
00:36:01,640 --> 00:36:06,319
Speaker 1: see their equity road as it's roading? Well, I think

600
00:36:06,400 --> 00:36:09,080
Speaker 1: first of all, obviously they try and reassure their customers

601
00:36:09,120 --> 00:36:11,759
Speaker 1: and their staff that the business is usual and this

602
00:36:12,000 --> 00:36:15,000
Speaker 1: is a blip caused by a single event. Of course,

603
00:36:15,360 --> 00:36:17,880
Speaker 1: as we all know, you know, single events have a

604
00:36:17,960 --> 00:36:20,600
Speaker 1: habit of turning into something rather than uglier at the

605
00:36:20,680 --> 00:36:23,960
Speaker 1: same time. At the same time, undoubtedly there's an awful

606
00:36:23,960 --> 00:36:26,359
Speaker 1: lot of work being done on making sure the bank's

607
00:36:26,400 --> 00:36:29,560
Speaker 1: liquidity is long, making sure they stay close to their clients,

608
00:36:29,560 --> 00:36:33,239
Speaker 1: and obviously reviewing the lead mostly the loan book. How

609
00:36:33,440 --> 00:36:38,600
Speaker 1: close are we to bank ballots or nationalization? Look, I

610
00:36:38,680 --> 00:36:41,320
Speaker 1: think that at the moment is highly unlikely because I

611
00:36:41,360 --> 00:36:44,040
Speaker 1: think the capital position at the moment and tom you know,

612
00:36:44,440 --> 00:36:46,640
Speaker 1: if your stocks is thirty percent down in theory, that

613
00:36:46,719 --> 00:36:48,239
Speaker 1: tells you learning is are going to fall by tht

614
00:36:49,160 --> 00:36:51,719
Speaker 1: or more. I don't see that at the moment. But

615
00:36:52,160 --> 00:36:54,560
Speaker 1: their capital is releasingly strong or very strong in most

616
00:36:54,600 --> 00:36:58,160
Speaker 1: case some cases strong liquidity um and you know, pretty

617
00:36:58,200 --> 00:37:01,520
Speaker 1: decent leverage. This is uh. This is still a case

618
00:37:01,640 --> 00:37:04,400
Speaker 1: of trying to absorb the shock and this massive uncertainty

619
00:37:04,480 --> 00:37:06,800
Speaker 1: that we now have as nobody knows the way ahead.

620
00:37:06,880 --> 00:37:09,680
Speaker 1: We have complete confusion in the UK, with no no opposition,

621
00:37:10,120 --> 00:37:12,720
Speaker 1: no no government to say, and we have a problem

622
00:37:12,760 --> 00:37:16,440
Speaker 1: of nobody knowing the timetable for the negotiation with the

623
00:37:16,800 --> 00:37:19,000
Speaker 1: the EU and between the EU and the UK, and

624
00:37:19,080 --> 00:37:22,360
Speaker 1: that just you know, uncertainty is the biggest enemy of

625
00:37:22,520 --> 00:37:26,000
Speaker 1: the market. Well, there is chris a report this morning

626
00:37:26,040 --> 00:37:29,440
Speaker 1: that Italy is considering a forty four billion dollar injection

627
00:37:29,520 --> 00:37:34,200
Speaker 1: of capital into its banks despite that UNI credit still

628
00:37:34,280 --> 00:37:37,000
Speaker 1: down seven percent this morning. Is this tarp is Are

629
00:37:37,000 --> 00:37:39,879
Speaker 1: they finally getting around to the U S Madel Look,

630
00:37:39,920 --> 00:37:42,080
Speaker 1: I think that they are. They are showing that they

631
00:37:42,280 --> 00:37:45,880
Speaker 1: are not going to just stand by and see problems emerged.

632
00:37:46,200 --> 00:37:47,880
Speaker 1: If they're well, as the funding of the banks is

633
00:37:47,960 --> 00:37:50,920
Speaker 1: under pleasure because people are concerned about the impact on capital,

634
00:37:50,960 --> 00:37:53,239
Speaker 1: they're going to act. Clearly, that would be, as you say,

635
00:37:53,280 --> 00:37:55,640
Speaker 1: tarp Then forget the UK told you how to do

636
00:37:55,760 --> 00:37:57,279
Speaker 1: TARPA just we just didn't do it as well as

637
00:37:57,320 --> 00:37:59,320
Speaker 1: the United States. We did exactly the same. We just

638
00:37:59,400 --> 00:38:02,319
Speaker 1: pumped money to into Lloyd's lad Bank of Scotland um

639
00:38:02,840 --> 00:38:04,439
Speaker 1: in the same way that you did to the US banks.

640
00:38:04,480 --> 00:38:07,319
Speaker 1: But we were still are in those banks. So yes,

641
00:38:07,360 --> 00:38:09,800
Speaker 1: you're lying. It's this concept of central bankers saying we

642
00:38:09,880 --> 00:38:11,759
Speaker 1: will do whatever it takes at this point in time

643
00:38:11,800 --> 00:38:15,480
Speaker 1: to stabilize the market. A grizzled pro like you aren't

644
00:38:15,480 --> 00:38:18,320
Speaker 1: you concerned at the rollover in Uni Credit, the rollover

645
00:38:18,440 --> 00:38:21,680
Speaker 1: in Deutsche Bank, the rollover and Berkeleys. I refuse to

646
00:38:21,719 --> 00:38:24,600
Speaker 1: believe that long only buys. I can sit around on

647
00:38:24,680 --> 00:38:27,160
Speaker 1: a Monday morning and say, well, this is harsh, but

648
00:38:27,280 --> 00:38:30,640
Speaker 1: we can withstand it. Come on, Chris, Look, I think

649
00:38:30,719 --> 00:38:32,719
Speaker 1: that the bottom line is this is this is an

650
00:38:32,800 --> 00:38:36,239
Speaker 1: unpleas iddented shock, but it's a weird, weird kind of shock,

651
00:38:36,320 --> 00:38:38,640
Speaker 1: because I like join the classis when things were hitting

652
00:38:38,680 --> 00:38:41,399
Speaker 1: as left line center. We we've got one very clear

653
00:38:41,480 --> 00:38:44,600
Speaker 1: issue to deal with, which has knock on impacts, allowed curlencies,

654
00:38:44,640 --> 00:38:48,080
Speaker 1: and allowed allowed markets. And I think the focus on

655
00:38:48,200 --> 00:38:50,439
Speaker 1: that is actually as an fun manager at the moment,

656
00:38:50,760 --> 00:38:53,239
Speaker 1: I don't need to own banks given the uncertainty allowed banks.

657
00:38:53,280 --> 00:38:56,960
Speaker 1: I mean, look, these bank stocks are down ten today

658
00:38:57,120 --> 00:38:59,560
Speaker 1: that I'm the markets off two percent. The border market

659
00:38:59,680 --> 00:39:03,680
Speaker 1: is not showing the same concerns as the bank sectors.

660
00:39:03,760 --> 00:39:05,600
Speaker 1: This is like, I don't know the answer for the banks.

661
00:39:06,000 --> 00:39:07,520
Speaker 1: I'm just going to leave them alone for the time being.

662
00:39:07,560 --> 00:39:09,439
Speaker 1: And I think they're just walking away and saying let's

663
00:39:09,480 --> 00:39:13,320
Speaker 1: just see how it settles down. Are any banks close

664
00:39:13,400 --> 00:39:15,319
Speaker 1: to the edge? I mean you look at Barclay's down

665
00:39:15,400 --> 00:39:19,520
Speaker 1: another sixteen percent today, and you have to wonder, if

666
00:39:19,600 --> 00:39:23,799
Speaker 1: you're a non expert like myself, at what point does

667
00:39:23,840 --> 00:39:28,440
Speaker 1: somebody say, oh, well, look, I would suggest at the

668
00:39:28,440 --> 00:39:30,520
Speaker 1: Bank of England is already looking at this and saying

669
00:39:31,160 --> 00:39:33,320
Speaker 1: is this something that should concern us? If it is,

670
00:39:33,680 --> 00:39:36,920
Speaker 1: what actions do we take to to to obviously safeguard

671
00:39:37,000 --> 00:39:40,200
Speaker 1: any concerns about Barclays or indeed any of the UK banks,

672
00:39:40,560 --> 00:39:43,359
Speaker 1: And we'll try and take those actions. And yeah, they've

673
00:39:43,360 --> 00:39:44,880
Speaker 1: got to be careful here because they don't want to

674
00:39:44,880 --> 00:39:47,080
Speaker 1: start some kind of scare going aloud about the banks

675
00:39:47,160 --> 00:39:49,719
Speaker 1: when what we're seeing here again I can't even start

676
00:39:49,760 --> 00:39:53,040
Speaker 1: to explain to Tom was over here the weekend, but

677
00:39:53,320 --> 00:39:56,400
Speaker 1: what's occurred since splidy with the Labor Party in the

678
00:39:56,440 --> 00:39:59,800
Speaker 1: main opposition party imploding, So we don't just have a

679
00:40:00,520 --> 00:40:02,880
Speaker 1: a gap in government, we have a gap in opposition

680
00:40:03,200 --> 00:40:05,080
Speaker 1: and we have no idea who's I mean the country

681
00:40:05,160 --> 00:40:08,080
Speaker 1: iris to Darling too, is the Chance of the Exchequer,

682
00:40:08,120 --> 00:40:10,000
Speaker 1: who did bail out the British banks in two thousand

683
00:40:10,040 --> 00:40:12,320
Speaker 1: and eight, is asking the question where all these people

684
00:40:12,360 --> 00:40:15,399
Speaker 1: who land the exit campaign because nobody is stepping forward

685
00:40:15,440 --> 00:40:17,640
Speaker 1: to time work out what to do next. Isn't the

686
00:40:17,719 --> 00:40:20,160
Speaker 1: important thing though, that the Bank of England is running

687
00:40:20,160 --> 00:40:24,080
Speaker 1: the banks and there is stability there you absolutely like

688
00:40:24,200 --> 00:40:25,839
Speaker 1: And you know, I think one of the great things

689
00:40:25,960 --> 00:40:28,439
Speaker 1: is that Mark Arney is is is probably a better

690
00:40:28,520 --> 00:40:32,080
Speaker 1: communicator this pleaducessor howver much this plead decessor is admired.

691
00:40:32,120 --> 00:40:34,759
Speaker 1: And indeed he has been on the wise today saying,

692
00:40:34,800 --> 00:40:36,839
Speaker 1: you know, this is another market hiccup. Marcus go up,

693
00:40:36,880 --> 00:40:39,600
Speaker 1: Marcuts go down. I think Mark stlength is he has

694
00:40:39,600 --> 00:40:42,479
Speaker 1: got much more experience of other markets than Irvin had,

695
00:40:42,680 --> 00:40:44,920
Speaker 1: and I think that from that perspective, I think we're

696
00:40:44,920 --> 00:40:46,600
Speaker 1: really lucky to have him in place at the moment.

697
00:40:48,600 --> 00:40:51,239
Speaker 1: Christopher Wheelers, thank you so much greatly. I appreciated and

698
00:40:51,320 --> 00:40:53,520
Speaker 1: the banking with a bit of a bid right now, Mike,

699
00:40:53,600 --> 00:40:56,600
Speaker 1: let's do an extensive data check before we go to

700
00:40:56,680 --> 00:41:00,800
Speaker 1: our conversation with the chairman. Uh. Simply, I would almost

701
00:41:00,840 --> 00:41:03,680
Speaker 1: think futures could go green this morning, the way we're

702
00:41:03,719 --> 00:41:08,840
Speaker 1: gyrating around a catalyst to get them that far. But

703
00:41:09,040 --> 00:41:11,920
Speaker 1: they're they're feeling a little bit better than they were

704
00:41:12,000 --> 00:41:16,440
Speaker 1: earlier this morning. Yeah, and and yields doing it's just

705
00:41:16,520 --> 00:41:19,760
Speaker 1: a little bit improvement on the table Sterling his benchmark.

706
00:41:19,800 --> 00:41:21,520
Speaker 1: What do we have in Sterling right, Well, we're looking

707
00:41:21,560 --> 00:41:24,920
Speaker 1: at one. It's above it's loads of one thirty one

708
00:41:25,080 --> 00:41:28,000
Speaker 1: fifty two, but it's been holding below one thirty one.

709
00:41:28,080 --> 00:41:30,000
Speaker 1: That's the grind lower there, and of course the foot

710
00:41:30,040 --> 00:41:33,040
Speaker 1: see no real change in its position, down a hundred

711
00:41:33,080 --> 00:41:36,480
Speaker 1: thirty one points to point. That's about the percentage lost

712
00:41:36,800 --> 00:41:38,760
Speaker 1: for most of the day so far. When you first

713
00:41:38,840 --> 00:41:41,600
Speaker 1: observed Alan Greenspan, was he sleeping on the floor of

714
00:41:41,680 --> 00:41:44,719
Speaker 1: the Oval office, Well, the first time I met al Greece,

715
00:41:44,719 --> 00:41:46,839
Speaker 1: but I think he was watching a Baltimore Orioles game.

716
00:41:46,920 --> 00:41:48,879
Speaker 1: But well, that would be good. We have to find

717
00:41:48,880 --> 00:41:51,600
Speaker 1: out if he switched his allegiance to the Washington Nationals.

718
00:41:52,680 --> 00:41:54,480
Speaker 1: Take us to the game tonight. Did you ever think

719
00:41:54,560 --> 00:41:57,640
Speaker 1: we would talk to him about the collapse of the

720
00:41:57,760 --> 00:42:01,359
Speaker 1: European model. I've never really and uh, I don't think

721
00:42:01,400 --> 00:42:04,359
Speaker 1: anybody really thought that was possible. That's why we're looking

722
00:42:04,400 --> 00:42:07,120
Speaker 1: at the markets doing what they are doing. The euro

723
00:42:07,520 --> 00:42:12,560
Speaker 1: at one five, solidly below one ten now and continuing

724
00:42:12,680 --> 00:42:16,000
Speaker 1: to move over. The German tenure note is negative eleven

725
00:42:16,080 --> 00:42:23,319
Speaker 1: basis points extraordinary. That's a conundrum. As Chairman Greenspan would say,

726
00:42:23,360 --> 00:42:26,400
Speaker 1: we are here in Washington, d C. This was book

727
00:42:26,560 --> 00:42:30,640
Speaker 1: weeks ago. This was an important interview, but maybe has

728
00:42:30,760 --> 00:42:34,360
Speaker 1: become the most most interesting interview that Mike and I

729
00:42:34,440 --> 00:42:38,399
Speaker 1: have had in ages and ages coming up. A conversation

730
00:42:38,880 --> 00:42:42,960
Speaker 1: with Alan Greenspan as the United Kingdom tries to find

731
00:42:43,160 --> 00:42:48,600
Speaker 1: a path forward from Washington. With Bloomberg FM. This is

732
00:42:48,640 --> 00:42:49,840
Speaker 1: Bloomberg Surveillance