all across europe fourteen e.u. states impose sanctions on austria now there is barely a peep and in fact we hear of the social democrats in austria have not ruled out themselves entering a coalition with the freedom party what's going on i have feeling that the freedom party moved more to the center they tried to. get rid of people and positions extremists and far right of course there was a few arguments and t.v. discussions also were anti-semitism was lying under the surface but i think they're eager to to leave it there and not bring it up like before that's one point the other thing if i may i would like to come back to it how many witches this is our last chance in europe i disagree i think this is the biggest chance for what europe has now to to change the system to change the bloc towards more integration towards more europe with these societies and these countries that want to move forward ok let's come back to that in just a moment i saw him shaking her head rather vigorously there and i have a way that it

rather than with more europe. when hungary was a candidate for the europe, a lot of people invested and got credit in euro currency and then had problems paying back their mortgage. he won a lot of votes and won the latest election. a group of core european countries will create the kind of extreme where others will follow or we had a situation where for a long time we have different speeds. of differentidea speeds has been debated for really be can there different speeds on immigration? the european court of justice, for example, has just rejected a challenge from hungary and on quarters. if austria tries to balk at taking more refugees, might it also wind up getting a reprimand? withe: yes, but i agree matthew. i think the issue is decided in the sense that no c cntry in all of europe e wants to take more refugees. any european country no matter which does not want to have more integration towards europe. that is even true of germany and also of the netherlands, of belgium. what will happen is, of course, the on

is europe the e.u. is europe much broader i think it's very important in a way to clarify who to sort this out you know because usually when we mention europe people consider that it is only e.u. so the twenty eight order twenty seven if you consider that the u.k. still out but is only as a way to look at what europe means and as you may know you know my last job. before creating the global com past was as a director of education and you said the council of europe and the council of europe. comprise forty seven countries and member states including russia including turkey including. crane and many other counties that are not part of the e.u. well aware mr buswell let me have them and they're all my question because when we talk about the european identity or the european values which by the way while we're at the center of the ukrainian calling for a conflict i think we in russia at least we mean first and foremost the european union and the values the so-called european values that it sets out to promo

there are expectations for more europe, but also a different europe. the challenges challenges that we face of the continent are all bigger than what can be addressed by a single member state, be it migrations or climate change, terrorism, trade competition, all these challenges you to be addressed at the european level. and there is a very high expectation from the citizens to have a more efficient, more active, more dynamic europe. do you think there is a desire from the people of europe for, to use your phrase, "more europe"? if you look at the polls, eurobarometer, it shows more and more expectation about europe. which does not mean more trust about the way the european union functions at the time being. there is a lot of expectations, but it's also a demanding attitude to, say, be more efficient, do more. but minister, never mind the polls, just look at reality. i mean, you know what happened in britain. you know, friendly, looking at germany, that there is now a significant proportion of the population in germany who are prepared to vote for an e

how is their integration going those who have to rights to stay in europe that. granted asylum. or i was will will be for me perry in the reasons except it as residents of the european countries they have to be integrated and this is not of one way street. the governments regional governments local governments have to offer the opportunities for integration but people has also be ready for integration we have in austria just in our piece discussion because some radical islamic movements are against the integration of. muslims who came to australia i was i'm favor i was i helping i was i want to be integrated so. it is also a cutie of migrants and refugees. to contribute to the only to gratian learning the language of the country where they live accepting their way of living living in this country is accepting equal rights for men and women for example there's a clear request well what do you think is going to happen to those tens of thousands of people who got eighteen are they going to end up settling in ghettos like in paris and other major cities. no one shoul

macron who put forth his grand vision for europe? that might be hampered by the inflexibility of angela merkel and her coalition talks. what do you make of mr. macron his popularity ratings have fallen somewhat. the honeymoon period is over somewhat do you think he has what it takes to integrate further. >> i think macron's speech last week was a very, very pro european concise, strong message full of hope and full of realism. very pragmatic and full of hope. i think the couple, macron and merkel, if this couple works in an inclusive way, including italy, spain, other founding fathers of the european union, if they work to avoid in an exclusive way, i'm optimistic for the future of europe i think they can have the strength and what jlegitimacy merkel is in her fourth term she knows she has to leave a legacy, and macron is strong in france with a large, clear majority what is very important, macron had a strong pro european mandate because the voters in france, in the second turn of elections against marine le pen, they voted for macr

you joined is a valid europe anymore you set your government now apparently sees itself as protector of european values your prime minister said twenty seven years ago here in central europe we believe that europe was our future today we feel that we are the future so why do such as you what you've suggested here this from a man who boasted in twenty four to you know what i mean a real king with the dogmas and ideologies that have been adopted by your question suggested something which is completely untrue. we are not breaking away from the european values and the perception we had we stick to it and that's the difference others are trying to make is something different we have agreed to you believe that you are the future of europe we believe that that hundred that's quite a tall order for one goal jairzinho yes sure but hungary is not standing alone i mean if you take a look as for the past especially two years what are the bad boys in the european union you can name that better let's let's talk serious the central european country is eventually more than ten years after their acce

open borders is about people coming from outside of europe and within europe i think on the continent there isn't all that much objection with internal eu migration in the way that there was here in the country here because i think that will be solved. lots of that will be very confused anyway. fear that all of those outside europe people arriving in germany would come through the borders and have come to us, it was a much more anti—muslim, to put it crudely, feeling than it was really anti—polish or east european. i think i agree with stephanie that the danger is not so much that the far right parties will take power because their rhetoric and thinking seeps into what used to be the centre—right parties, and moves the whole spectrum to the right. and i think that is happening, and in europe we also have two very right wing governments, hungary, poland, czech republic, and so the issue is how to manage this so that it doesn't infect the whole system. but i also don't think it is about immigration only, i don't think that the far right vote is only about immigration processes. in

the landscape is changing in europe. it is different when you look at europe and the u.s. in terms of demand for etf's for retail versus institutional. do you see mifid ii boosting retail and retail institutional demand in equal measure? >> i think it will increase both. in terms of those two pieces to mifid ii. one around the distributor and transparency costs, that is focused on the retail and retail wealth market. the trading cost transparency in the trade reporting really boosts the institutional uptake. if you look at the u.s., you have seen that over the last couple of years. that is what we will see in europe over the next three years. nejra: thank you so much, stephen cohen, at blackrock. up next, beyond mifid ii, as the legislation goes into place, what does the buy side have to fear. this is bloomberg. ♪ ♪ welcome back to bloomberg, rules and returns. let's get a roundup of the latest news on financial regulation. there is sebastian. >> morgan stanley is ready to charge two point $5,000 an hour to a new eu financial rules. that will be on top of the annual ra

sign him in europe you know in one club from europe . here's the press it was with the sixteen yeah. with the national team and now it's the second. place on the press plane in europe from a top you know but he was the sec is a sort of. the new seems happy and scandal beo were given time to adapt he's making good money and his chance of playing in their own party wrote. the following offering to obtain yeah looks like it was the right. just again so i thought. i was i. going to miss. beard as a little sister's just a definitive as a father. just . couldn't it was over and. football is loved in africa. break players have come from the continent and they're successful everywhere they go but while the african coaches in europe's top leagues we ask are they simply not given the chance. very good job to go down to come on come on. look at an african coach puts his team through its paces this is forty. a traditional club in the dutch second division sunday only say is one of the first football players from africa to turn coach in the european

i think europe is at least or some european countries are at least trying to face the end deal with the consequences of all of their own actions the united see. it was also a major player off of that intervention and yet we know that the trumpet ministration has just recently decided to cut the refugee selling at forty five thousand for the fiscal year of two thousand and eighteen which is five thousand last done a year before and represents annual record low for the united states what do you make of that do you take it as an anomaly of the trumpet ministration or is it perhaps the continuation of a long a longer term trend i think that certainly mr trump has sort of created an alternative world when it comes to refugees and the numbers and where they're coming from and their requirements that they must meet etc etc and that alternative is cutting more than by half the numbers that mr obama promised in the united states has always begun back and forth from these matters but lever to the degree that the trumpet ministration. has brought in terms of the numbers so clearly we have a ne

to europe where i love your money. like hundreds of thousands of others the brothers hamada and ali are trying to reach europe since the beginning of two thousand and fourteen at least two hundred thousand unaccompanied child migrants have managed to cross europe's borders but according to the authorities at least ten thousand of these children have fan issues on route and one estimate of unreported cases puts the figure at twice even three times that. who are these children and how did they manage to make themselves invisible we followed their trail from spain italy and greece across europe and often found ourselves straying into dangerous parallel worlds. you're. you're. malaya the spanish enclave on the coast of north africa which shares a border with morocco. there are around three hundred unaccompanied child migrants here at the moment. we start our search in a place where we can be sure of finding some lapper is a reception center for boys traveling alone most american and only come here occasionally in the eveni

long mexico and short core europe. that is one way to play it. jonathan: you want to be short duration and long yen? cufflink, do you agree with -- kathleen, do you agree with that? kathleen: i like long. i would not go short duration. that is a huge give up. currency is the key in the market. jonathan: kathleen gaffney, sticking with us along with joern wasmund and jack flaherty. coming up on this program, stranger things happening in the auction block this week. some really interesting supply coming to the market, including netflix. we will get to that in a moment. from new york, this is "bloomberg real yield." ♪ ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head to the auction block. netflix is burning through cash as it invests billions in programming. to invest those billions, they needed to raise the money in the debt market. they sold $1.6 billion in bonds, the largest dollar denominated sale ever to help produce that content. junk rated notes yielded 4.875%. over in sovereigns, a few notable offerings in a

also with us is judy dempsey, the carnegie with europe think tank. judy says there are all kinds of divisions through europe and they're becoming deeper and more spain,, but compared to britain and poland, germany still seems to be a haven of stability. and a warm welcome too to anja reich, chief correspondent of the berliner zeitung newspaper. anja says the west germans should stop looking down on the east germans. seeing the world through others' eyes and questioning your own values. germany has been celebrating unity day this past week. the question is, how united is germany or disunited is germany? germany isthink still, in a way, not really united. and it hasn't really been different in all those years, the reunification. it's just that all of a sudden, it seems to come out, like we see it, because there is this party, afd, and all of a sudden, you see the voters, you know, east germany and most are men. about. to talk it just comes out, it's suddenly there. now?s it there >> because, you know, people have the feeling that -- like that they can

they want like everybody else in europe to live in peace and to decide on their own. affairs so compromise should people feasible and i call upon to both sides to be ready to such a dialogue you know in carrying down and the united kingdom central government allowed secession referendums tribute them whether respect and personated people to state peacefully why didn't the same happen in spain. just to just to declare it's illegal is this not enough of it is of course not in accordance with the spanish constitution so. the musicians of the. constitutional court then the bill but. the this is the cut alone people should have to opportunity to express their opinion and i'm not sure that on the peaceful conditions there would be a majority for independence. but you're right the spanish government should be ready to accept the referendum with. full information of the people what does it mean what it means independence what it means and hence autonomy so and the question perhaps should not be only yes and no to independence by those zero option enhanced autonomy for catalon

thanks to the migration crisis in europe hungary's profile is higher than other but it's controversial and e.u. court says budapest is wrongly denying asylum to the mike fleeman war and deprivation the government of prime minister viktor orban is defined calls the league a joke and says the e.u. will pay for its security council with serbia orbán is also accused of cracking down on political activists and free speech he's even trying to close a university started by the hunt gary an american billionaire george soros a man considered a threat by political so is hungry willing to play by the rules and embrace its values or is its chosen path the way of the future peter c.r.t. hungary's horn minister talks to. foreign minister of hungary thanks so much for joining us here thanks for being with azure thank you obviously migration is the big issue that everyone thinks of when we talk about your country hungary this was your reaction to the european court of justice ruling on immigration quotas back on september sixth and i'm quoting this decision jeopardizes the security and future of all

for them all better than to discover that on arriving in europe islamic state was here to. buy our supporters launched numerous attacks on european cities targeting berlin and december twenty sixth game. of course they are here where you know they are in all of europe otherwise what happened in the. beginning of the last new year when the man who. his car killed many people even just before many days in paris also in france it happened and even in many places in the world it happened. so many attacks from that there are no it's coming to europe with the influx of refugees from northern syria in twenty fourteen and twenty fifteen brought many members of militant organizations to germany there were isis members and others to . kill says the very same supporters that he had encountered in various prisons in syria and now here in europe. he tracked down most of them through the internet. you know only twenty sixteen he passed through the process of being registered as a refugee in germany he was just one of hundreds of thousands no one was interested in his information on ins.

with the rise of new political movements bring to the country and to change in italy starts reform in europe. microcell veiny welcome to the show it's great to have you on our program today mr selvey the italian regions of bardia and veneto are going to have a referendum on greater autonomy from the central government on october twenty second you say they have chosen a peaceful path towards that but so that the people in catalonia look what happened there how can you be sure that there will be no rubber bullets no tear gas in milan and venice when the day of the vote comes. first of all thank you for having me know about the upcoming referendums the are fundamentally different from the one in catalonia referendums in lombardy and then it all will be held based on mitali and constitution with the court and the italian government's approval the law enforcement will be helping us instead of forcing people out of the polling stations it's not independence we demand but actually wider autonomy so that regions can have over. over schools healthcare roads so that they can help the disabled and i wo

i don't think that europe or the e.u. is trying to impose its values it is indeed trying to promote its own set of values and i think it is important you know way to bring together and to create this esprit de corps among europeans and the way i think europeans can be proud of some specific and important achievement by the e.u. if you take for instance the leading role of the u.s. played for instance in the paris agreement on climate change i think you know there are a few specific positioning on global issues where europe is trying to come up with a set of common values and i don't see we can say we should say that it is trying to impose whatever minister but i agree with your point that there have been many achievements by the european countries and there are many values that people are quite naturally and genuinely are aspiring to but i think you would also agree with me that the european countries on a number of occasions joint military interventions to protect quote unquote democratic values that was perhaps not they

in particular europe and london. nejra: with all this regulation on the cards other than mifid ii, what does the buy side look like after it has absorbed all this legislation? >> it is a good question. i think that once we get through mifid ii and it is digested, the ultimate look of the asset management industry is it will be more transparent than it was before. it is probably going to see pressure on fees that it hasn't seen before. i think there will be more competition around, for investors and that will be a good thing. nejra: sean, thank you so much. head of market and regulatory intelligence, great to have you on the program. coming up, we talk cryptocurrency, bitcoin so is above $5,000 for the first time. we get the latest from washington. this is bloomberg. ♪ ♪ nejra: welcome back to bloomberg markets, rules and returns. there are two side to do introducing new regulation. on the one hand, regulation builds credibility and confidence in the marketplace. when the rules are not clear it creates uncertainty

do you support the idea of two speed europe to support what. is proposing right now that those who want to move faster should move faster and have different type of economic zone and then those who want to stay where they are you know then stay in a different kind of this is the present situation of the treaties that you came up for more cooperation or you can be a normal member and i'm sure that in some areas there will be much more engagement for instance when you need to produce he or indeed you do co-operation to could be much more either we do it would to get go or some moving faster did the race but i think if some are really trying to go ahead i'm sure most of the countries will forward so the idea of macro is not so much to divided to split europe but to give a wake up call to those who are a little bit more reluctant and that they and most of the member states will come along. i want to hear your opinion on what the polish president under. said recently actually said that e.u. is turning into a class society with some countries becomin

europe.

member states seeing how our last few governments voiced no protests but all the decisions in europe were made by france and germany alone the northern league would never allowed it if we win just like berlusconi who was head of government had the courage to say no when the situation calls for it all right we're going to take a break right now and when we're back we'll continue discussing tough issues until he has to deal with such as day influx of refugees and devastating sanctions stay with us. well. when the ruling classes protect the. when the final merry go round lifts and we the one percent. time during the whole middle of the room six. million more you need. what politicians to. put themselves on the line to get accepted or rejected. so when you want to be president. or some want to. have to go right to be prosperous like them for free in the morning can't be good. i'm interested always in the waters of our. question. i have the absolute from fiction that's to be. you. and rush. have a common interest to look at closer cooperation and to see why i seem to be so important to mo

so i think indeed this shows that people in europe really want more flexibility there's all of europe more demand for. basically having more control over one's own fate i would say that's why we see all this populist movement in europe ordered from the left or the right this is what they sort of having common they feel they're losing control over their own fate and indeed also the cuttle on the scottish independence movements they of course have always existed but in the last ten years they have become much more popular and again if we wonder how to deal with that i think we have to look at switzerland cicerone as a country where there's a lot of decentralization we're the decentralized entities the continents can decide it's over taxation policy to much larger extent than was the case elsewhere so and this really helps to keep switzerland together nobody in switzerland wants to wants to sort of secede from the country because the country allows a lot of flexibility people are generally happy with how swiss run this so if the e.u. is wondering how can we become more stable they have t

in europe did with africa in the past two centuries the same way that the u.k. and france and most recently the us have had to have done in the middle east these are all things that are historical that go back a long time and there cannot just be fixed in a matter of a decade or more. the borders of many of these countries see both in the middle east and in africa a completely artificial and all of those things now a plane rolled into this mr by the mature you just said that there is things cannot be fixed in an hour in a matter of years and yet there has been some a temporary solution to it i know that you believe that you're bound migration was state stabilized largely because of the agreement between the e.u. and turkey and i'm correct recently has been i think very blunt about using blackmail to get what it wants how stable is that migration stabilisation isn't europe still add at the mercy of president erred on the whole i think once referred to migration as a tap that can be turned on and off yes and you know certainly he holds the upper hand on this and h

in europe, it's time for a show of confidence. only a courageous performance on the world's stage will persuade those hesitating within the e.u. who will do a better job. she or he -- one way or the other, this election will decide the course europe takes. damien: here in berlin you can really feel that an election is about to happen. on the streets, there are more political rallies than ever. but what is the mood like in the rest of the country? we have been to the north german coast. because of the geographical location, it is one of the smallest constituencies in germany, the issues being discussed a there are very different to those in the rest of the country. >> langeness is one of the halligen, 10 small islands off the north sea coast. it's home to more cows than people. everything locals need is brought here by ship, including the ballot cards for the upcoming election. the polling station is the local school, which is attended by 19 children. the mayor is setting up the ballot box. not many politicians bother campaigning h

i am much more optimistic about europe overall then kathleen is. i think -- we will see some riots and dramatic pictures in catalonia over the next couple of weeks, but overall i would consider this more of a buying opportunity. -- ifl i believe spreads spreads widen to wanted to 35 basis points, that would be a fine buying opportunity. jonathan: at the moment the policies of draghi, is that rational to think that way from markets or is that another sign of complacency? kathleen: know, i think that is what is going on. -- no, i think that is what is going on there. is still driving with the low rates. it is driving the retreat yields into the supply. with netflix and china and mongolia, it is an issuer's dream market. jonathan: that's not really in investors dream. kathleen: not at all. jonathan: what about netflix? kathleen: absolutely insane. you were not compensated for the credit risk you are taking. ,onathan: kathleen gaffney joern wasmund and jack flaherty. the race for the fed chair. the president is set to announce a fed chair pick next wee

i am much more optimistic about europe overall than kathleen is. i think -- we will see some riots and dramatic pictures in catalonia over the next couple of weeks, but overall i would consider this more of a buying opportunity. overall, i believe if spreads widen as they did to 135 basis points over bunds, that would be a fine buying opportunity. jonathan: at the moment the policies of draghi, is that rational to think that way from markets or is that another sign of complacency? in the same vein as when we talked about treasuries? kathleen: no, i think that is what is going on there. you are keeping things as calm as possible, but it's still driving with the low rates. it is driving the retreat yields -- that reach for yield into supply, as you said with netflix and china and mongolia, it is an issuer's dream market. jonathan: an issuer's dream is not really an investors dream. kathleen: not at all. jonathan: what do you think about the next flicks issue question -- netflix issue? kathleen: absolutely insane. you were not compensated for the cred

third judy says there are all kinds of divisions through europe. and they're becoming deeper and more complex but compared to spain britain and poland germany still seems to have still seems to be a even of stability and a warm welcome to turn your rice chief correspondent of the berlin sights on newspaper and your says the west germans should stop looking down on the east germans unity means seeing the world through other people's eyes and questioning your own value. while i do i'd like to begin with you and as we've just seen germany has been celebrating unity day this past week and the question is how united is germany disunited is germany. well i think germany is still in a way. not really united and. it hasn't really been different in all those years after the reunification it's just that all of a sudden it seems to come out like like we see it because there is this party if. all of a sudden you see. most of the war voters. come from east germany and most of them are man. talk about that when you say. it just comes out it's suddenly there why

the defense of europe is more important to europe than us. it is bizarre to me that a continent that a gdp roughly equal our ours cannot defend ourselves. we're wringing our hands saying how will we defend poland, the baltics? shouldn't this have been thought before you extend to the russian borders? now everyone's wringing their hands and trying to figure out what to do. starting a war in ukraine is not a way to run nato cost effectively. it is to take care of the problems that beset nato. i was against nato from the get go, but having done it -- it seems to me -- we're to obliged to make it work internally rather than using the budapest memorandum as a reason to say, well, that's the way to fix the alliance. that strikes me as very perverse logic. >> my thanks to the con side for their closing statements. gentlemen on the pro side about two minutes each. >> okay. well, first, let me reciprocate the thanks. this has been an interesting experience, and it is good we can have a civil discussion. there's no kind of open and shut case on this is

and europe. anna: how much is the fiscal side delivering already, because i know we were speaking to one guest who said, do not underestimate what they are doing. and how much do you think they need to ramp up? it would be more political pressure in germany to start spending money. we see it in europe and spain, italy, france, portugal. yes, that will be critical. manus: we are waiting for more german data to come out this morning. had a little bit of a seesaw here and there in terms of how europe is looking. what are you expecting from this earnings season in europe? aymeric: momentum should continue. as mentioned earlier, we come earnings 18 months ago. this recovery should continue in the short-term. we talk about also a stimulus could help consumers in europe. we should not underestimate what has been done in europe with germany, with france going forward. for a time being, we expect it to remain and we expect earnings growth between 8% and 10% next year. anna: thank you very much. manus: mat

what about in europe? there is regulation coming through that means they ask have to share their data with rivals? does that concern you? challenge, is a there will be winners and losers in every situation there is deregulation. in europe, there is a culture of startups, and this technology, there will be interesting .pportunities whichl, it is a factor in we see emerging in europe. this gives you a good breakdown of how earnings season has gone. you can click on the growth cap. to see if we are releasing earnings growth. the company's web reported so far averaged out a drop over the same quarter as last year. sales are rising as far as stoxx 600 companies. our european companies doing as well in growth as u.s. companies? does not neglect the season has been strong so far for both equity markets. point does or data not constitute a trend. we are positive on eps growth. your season is a little behind, so it is hard to make the some aggregate numbers. we expect europe to do better in terms of equity fundamen

i said europe is working hard and building a europe which is new, but it doesn't mean that europe is ready to finance all member states in their day-to-day operations abroad. this is also one very serious question at the european level. that's why president macron said we are financing that on our own but we would like very much to extend the financing to european contribution as well which means we should be able too. >> we have three questions in the back and then we'll have the minister give her closing remarks. right there. thank you. >> my name is andrew. i'm up reporter with politico. washington has been somewhat cool on the regional architecture project before but there is some suggestion that that the u.s. division might change on this. do you plan to talk about this topic with secretary mattis today, and you have any sense that momentum might be changing on this on the u.s. side? >> thank you. >> the morning. i'm in a piggyback on the last question, if you can talk more about what you want to discuss with general matus. also, you talked about the french defense industry as a