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tv   Bloomberg Markets European Close  Bloomberg  April 10, 2019 11:00am-12:00pm EDT

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accountable. the index banks in are now lower, but many of them are just fractionally. we heard questions on student loan prices, diversity and inclusion, the financial crisis did not have any questions which is the origin for this hearing. guns, overdraft fees, income inequality -- many of which will be front and center and the 2020 presidential election. as we continue with the recess, let's check global markets. >> we are looking at very small moves are stocks around the world. the dow and s&p 500, mixed action. the dow is down 1/10 of 1%. the s&p 500 is up 1/10 of 1%. dax, the german dax of about .5 of 1%. investors mainly treading
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water after the cooler than expected cpi dating -- data. we also had ecb president mario draghi, let's take a look at the euro because he did send it slightly lower. it was a day drop from the highs, the around 1/10 of 1% but he reiterated the idea that the global risks are still batter link the euro economy -- still battling the euro economy. no new details were given around the 10 year yield plus some of the big banks as the ceos are really getting grilled. the 10-year yield, it is actually not showing but it is down about three basis points. it is surprising perhaps that they are not done more considering we do have yields lower not helping up banks. as for the s&p 500, up slightly
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on the day, over the last two are on the s&p 500, yesterday closing down .6%. today off about .2%. over the last two days, and about .4%. what made the fed pivot to a dovish tail. chart.onth they have used it many times in the last few months. caught by the range between 2600 and 2800. now, we are above it. momentum was spalling. kicking off in earnest with big banks.
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for the hearing on capitol hill. >> the latest inflation figures often -- offer reinforcement on interest rates. and the year, among other things, apparel prices fell. that may reflect some of the new data collected directly from the part -- from the department store company. scientists call it a breakthrough for humanity. ae first-ever glimpse of black hole. they say the image proves black holes exist and that proves the albert einstein theory of general rent -- relatively -- relativity. -- across the globe, helping to cash the initiative. they could go up to a year.
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it is likely to be the largest ipo in less than a year. uberl information about tomorrow. kicking off the road show to market shares this month. shares could get trading in may. the bridge is said to be speaking to raise about $10 million. global news 24 hours a day on air and on tick tock on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. >> let's get a check of the markets. 2.2% higher. turned negative in all the banks in the negative right now.
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some of the bigger ones have started off the day positive. homebuilders getting a boost today on lower interest rates per the tenure at 2.47%. crude oil having another bounce today. crude oil 26 per barrel. this is bloomberg. ♪
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this is the european close on bloomberg markets right now. down .1%.00 up .5% p german carmaker not doing so well today. meanwhile, the year's biggest making $10t to be billion.
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the company filing as early as thursday. here with the latest is lizzie. what can we expect? ofthere will be a lot in februaryback that gave a fair idea of the latest numbers and the losses. all the numbers they want investors to focus on. how people are using different platforms. , --s not just the sharing we have pieces of information, and the pieces were left out. per mile., slightly different from left to right.
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international part of the business. and how much detail we get. >> let about the timing of this? it obviously could come as early as this week in very likely to come tomorrow. had a mega ipo and dropped off around $18 billion now. is there anything that will affect uber's ipl about the timing? .> tomorrow, bare boned a lot of gaps to we will not see how much they're looking to raise. the number we hear is about $10 billion. we look for a few weeks from now for them to have that information. that is when you go on the road show and get the countdown. even -- even though things are around this one, there is still a good few weeks.
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a lot could happen in that time. there is a lot more that could happen in markets and geopolitically that could affect how uber is looking from now until it starts trading. >> investors plenty interested in getting a piece of this? is what we have been waiting for. a slow ipo activity for a shutdown in the last few weeks, we have had levi's lyft all going out with a large offering. it all depends. i think people are interested to see how much is left for uber. how much waiting for this one and going for that over lyft. i think a lot of people will be interested in investing in both of them. there will be comparisons about cracks is it possible that investors will value over bank differently in other they have viewed?
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it is below its ipo price. we stopped and just come out earlier this week and said they were looking below the last round. i don't think there is any bank. of that with over over.s the other parts of that is really so they can invest in new places. limit is a good revenue growth in the ridesharing but what will probably see his investment in other areas. quacks is there a lot of dry powder out there still? investors have been waiting for this one.
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how much will it be oversubscribed? it depends how cautious they want to be. or whether they want to play a cooler. then talk about keeping it close to their chest. then you see a huge oversubscription. quacks >> that will come in the next few weeks. we were unlikely to get that. be a few more weeks before we know the kind of detail. >> remind us of the history of the funding rounds. it was priced more valuable than
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it would be at the ipo. it was by unit 76 billion dollars. we are talking about a $10 billion raise here. of theage ipo cells 10% company. as so we are looking at a hundred billion dollar company. that is an early estimate. it is a jump from the last evaluation. do we know if there are any interested parties and exiting at this point? >> we don't know that yet. this is a very mature company. it has been around for a good 10 years. there are people who got in early. they have been long-term shareholders for a while. others who have always seen this as a long-term investment. fantastic information.
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thank you. let's get a check now of the markets. starting in europe because we had the ecb decision today. the mario druggie press conference. the euro is not moving much off the back of that. not all that much new. druggie downplaying the chances of a recession. german automakers are lower today. dime a being one of the worst performers down for 10th of 1%. in britain, the ftse 100 is down a 10th of 1%. tesco is up about 3%. easyjet also up. the dow is down attempt on percent. the s&p is up. is getting a bonus
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from chipmakers today. it is up one half of 1%. this is bloomberg. ♪ >> live from new york and, i'm a
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bunny quinn. we have mixed markets in europe but not a huge amount of movement in either direction. the ecb president got his press conference widely awaited. we are keeping our eye on current events. washington, seven of the biggest banking ceos before members of congress. breakfast is continuing.
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we're still at a sticking point between britain's conservatives and the labour party. not good foris is the prime minister. and she hoped to brussels to tell them she had a draft to a cross party deal. this is what the europeans would love to hear. the only way to get the deal through the line is there a cross party deal. whether or not she gets this extension, the conditionality attached to it. not good news for the prime minister. we did hear from her 15 minutes ago. is not too concerned about the extension of whether we go into a year-long. she intends to leave the eu by the end of june in a matter what. >> what are we waiting on out of europe?
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europeans had their hands full today. is in the background as well for the european council. the debate here will be very much about the length of the extension. we know there are two dates that are being floated around here in brussels. withill have to do december 2019. at the end of the year. another could go to march 2020. we also understand that the french have moved away from the idea of a veto. they would like to see strong conditionality attached to any extension. that may be a case of the french just coming out and tell in the uk it is fair for you to stay for a few months if that means we get an exit to breakfast. you will not be able to run for those big commission jobs. you will not be in a position to that we legislation should be coming to by the end
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of this year. that is another sticking point. the conditionality that will be questioned today when the prime minister asks for more time. it that weistic is will get some kind of resolution on what kind of extension we are going to get? it's a say in the next week. understand that european leaders want to come to some kind of resolution. they know it will be very difficult for the prime minister to get a deal done. they still think it is a big? . they don't want to be in a position where every two weeks they have to fly back to brussels to grant her more time. they do want to help her if that means it reduces the cost for the eu. we heard from ongoing merkel today who said she does not want to be trapped in a situation where european leaders have to grant the uk more time and get
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stuck in a cycle where it is almost a cliff edge every couple of weeks. this is something they want to avoid. they want to be in a position that when we get to the elections, they avoid any kind of cliff edge around that date. leaders who are being more hardline about this than others. i am thinking of the french leader for example. the adoration leader doesn't want the irish issue to get sidelined. how is that going across to the rest of the leaders? you therish will tell negotiation has been done. the withdrawal agreement cannot be changed. maybe this is a line we could get in the document that comes out of the european council today. we do not want to be collateral damage in terms of negotiation. when it comes to the french, what is clear is that in my new
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, he has moved away from the idea of a veto straight away going into the summit. he wants to hear what theresa may has to say today. he does not have a good track record when it comes to her performance. european leaders argue that she is vague. we understand a lot of the points that he wants to hear about, she has already told him. there is conditionality that the french will push for today that the uk does not get to have a big say on uk policymaking going forward. this could be a case of them just not being able to run or apply for those european jobs. >> thank you. i want to point out that sterling is trading stronger versus the u.s. dollar. the euro is fractionally weaker. for more on markets, let's bring
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in our analyst in london. some of what the ecb president told us today. >> it was a wait and see mode. there was probably some outside bets for more hawkish tone coming from him. that was not seen. the euro fell slightly. it was higher before the ecb president spoke. it helped the european stocks that growth from earlier. you mentioned the sterling rate, we saw sterling depreciate a lot against the euro. under perform slightly but going back to the
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ecb, he reiterated the downside risks to growth. he reiterated downside risk but we have a handle on it don't worry about it and recession is not the possibility. what is the markets take it up on that? outsideink there were bets of more hawkish rhetoric coming from him. if you look at what bloomberg intelligence is saying for example, the data has not been bad enough to justify being completely dovish. i think that accounts for the weakness in the currency. also, with the other risk going on, she summed up the bricks it talks. there is uncertainty there.
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anymarket is very wary of kind of small incremental changes at the moment. gotk's >> the president negative interest rates and the negative effect of negative interest rate policy and he said the ecb hasn't got the pros and cons of mitigating tools. how important is that for the market to hear? some people were in the market waiting for more stronger signals on how they would mitigate those impacts of negative rates. also, there was another comment to note that the consolidation in the industry is probably needed within the banking sector. that suggests that he doesn't think banks will be able to reach the profit levels that they felt they could do without conduct -- consolidation. when you take into account -- we saw the european financial index fall sharply this afternoon. >> thank you for joining us.
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let's look at the broader indices. five minutes to go in the european session. the ftse down 1/10 of 1%. the dax is higher. german automakers are not faring too well in that session. the cac 40 is up one quarter of 1% as well. this is bloomberg. ♪
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we are coming toward the "european close" here. lefta few seconds
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, and as you can see, it is mixed. the ftse 100 down fractionally, although it is trying to claw its way up. , and dax inp germany is up .5% as we approach the close, even though german carmakers, as you can see, are lower. volkswagen also lower. deutsche bank is down .7% in germany. on european news in general, we also have the ecb leaving andy mario draghi press conference. here in the u.s., the dow jones industrial average down .1%. all of the banks in the index are lower as we speak. let's bring in romaine bostick now. the markets are hearing what is happening on capitol hill.
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even lloyd blankfein saying boy, i really miss my old job. romaine: yeah, but they are not really trading on this. particularly on a date when you have so many other things sort of happening, whether it is economic data, the ecb, that minutes, and of course the start of earnings season, so a lot more tangible things are potentially moving the market compared to what this point is still a little bit of political theater. vonnie: as i said, we are also expecting bank earnings. the bank index trading more on what is to come for the quarter than, say, what is happening in washington. romaine: this is obviously the big question. banks have done well in terms of their profitability, but we have not seen the bank stocks have that kind of conviction that we see in other sectors. a lot has to do with the fact that we have the fed moving to a dovish tilt. a lot of concern about how banks will be profitable in this sort of longer rate environment.
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this will affect net interest margins come along competition. margins, a lot of -- long competition. there are a lot of questions. big banks kick in monday and tuesday. we saw reaction to the ecb earlier. we did not get that much information. romaine: i think part of it with draghi's tone. you see him take much more of a wait and see attitude. there is a sense that he does not want to do anything to ahead of whoever his successor is going to be. i think you see that reflected in the euro. it did not really react too much to what he said. i think some of the commentary we got during the press conference with regard to negative rates from banks, i think that had a more lasting impact on the market mindset. maybe that is not something they are trading on today, but it will have a huge impact over the next few months. vonnie: traders are certainly
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busy out there. conagra up more than 6%, better than forecast. romaine: they are still seeing a lot of demand with reports -- regards to people buying basic goods, midpriced goods. regard toen with consumer staples and even the consumer discretionary sector, there does tend to be a sweet spot where a lot companies buy conagra and take advantage of the current spending trend. vonnie: we definitely saw some upgrades and some downgrades. spurgeon also having -- romaine: yeah. there are a lot of people, and you will see a lot of talk about what is going on in the health care space. theirof people turning attention to suppliers, to a lot of the middlemen with regards to the health care space. keep in mind you have not only a lot of talk about prescription drugs, you have the medicare for formallythat was
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introduced by bernie sanders and a bunch of other democrats. this is something that will play into the future not only for the company but everyone in the health care space. vonnie: early on the best performers, it is not like no longer the best performer, but it is still higher, retailers, nordstrom's, for example, and we should talk about under armour as well. romaine: under armour, they were kind of down yesterday, because there was an analyst note saying they had fallen behind with regard to footwear. puma,re behind adidas, everyone else. today, they got an upgrade, saying their trend is still doing well. keep in mind, their stock outperformed others like nike. i would not put too much stock in under armour's fluctuation. trends can shift pretty much from quarter to quarter. vonnie: a quick word on global markets. we have not seen a huge amount of equity moves, even though all of the same things are
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behind in the markets. a potential trade war overhanging in europe with the automaker some of the boeing situation, brexit. romaine: traded the big one here. is the big one here. a lot of people are expecting something on the u.s.-china trade, and you have u.s. in a tit-for-tat with europe, and that could affect trade on a strictly financial basis. not as severe as what we saw with china, but it is another worry. on top of that, you have geopolitical issues that have to be sorted out. you have a current economic crisis, i guess you could call it, in italy. that is in regards to whether the eu will crackdown and enforce some measures. you have brexit, which could go on for longer than a lot of people had expected. when you bring it back onto the u.s., you are dealing with a lot of political issues here. , with regard to the hearing, and a lot of people
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are watching it not so much for the market but really for the in athat maxine waters democratic setting and potentially what the democratic candidates offer the 2020 election, what they are going to start talking about, and whether they will pressure on banks, on health care companies, on a lot of industries that have basically had a much more operate and permit to in, at least from a governmental policy perspective. vonnie: on that note, maxine waters hardly allowing some of the questions to be answered in fact. looking for written answers to some of those questions. and lloyd blankfein obviously watching the hearing, and he tweeted out a picture from the "new york post" of lawmakers be grilled and captained it "white, i really-- "boy, i really miss my old job!!" romaine: i wonder what he was wearing? flip-flops on the beach.
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[laughter] vonnie: let's get to courtney donohoe. courtney: in israel, prime minister benjamin netanyahu is set to begin a fifth term as prime minister. army chiefnd former has won 35 seats in parliament, but netanyahu's right wing and religious partners would give him a majority. european union warning of global have it. eu trade teeth cecelia martinson said it will be the rules of the jungle and only the most strong will survive. president trump has called the wto the worst trade deal ever made, but still, it would need congressional approval to follow through. elon musk's spacex is set to fromoff the falcon heavy the kennedy space center in florida. it would carry a payload from saudi arabia, a satellite services provider. the introduction of a chance to
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bid on heavier payloads. it is one of the largest cases handled by the irs. renaissance technologies is in talks with the agency over a talks maneuver. the firm's founder and robert mercer are among the insiders, and they would have to bear the cost of the settlement. so what other investors. the irs is seeking billions of dollars in back taxes, interest, and penalties. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am courtney donohoe. this is bloomberg. vonnie? vonnie: courtney, thank you. first word news there. as we head to the break, the four100 still down about points. dax in germany of about .5%. the cac 40 up about .245. -- .24%. this is bloomberg. ♪ this is bloomberg. ♪
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vonnie: live from new york, i am vonnie quinn. this is "european close" on "bloomberg markets."
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wherever you are on capitol hill today, it is a major hearing, several of the banks' largest ceo's. let's get together is really, who has an exclusive interview with us. kevin: thank you, bonnie. get to kevint's cirilli, who has an exclusive interview with us. kevin: thank you, vonnie. what have you heard from the ceo's? >> what i have tried to drive this hearing towards is a question of systemic risk and the global economy and our u.s. economy. what is happening here? that is the deeper question to be focused on, and we see a divine between republicans and democrats when i questioned that. kevin: what was the point of having this hearing? there were a lot of questions as to how this hearing him about. >> that is a good question. this was not how my -- outlined by the chair's opening statement
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or in the outline from the majority. that is the question i have been asking. what i have been asking for the hearing from regulators to make sure we are prepared for a no deal brexit, to make sure we are prepared for an economy that is going down in europe, in china, the questions to a systemic risk, which is what we should be focused on in the committee, not taking shots for stuff that they have not actually done. kevin: in terms of the future, there is a debate whether or not there will be another recession. what about in terms of what the committee is doing, what washington is doing, and what regulators are doing to help prevent another type of great recession from happening again? do you think that will, but all -- will come up at all? well, i hope it does, about brexit and china and how that impacts our economy. i try to focus my questions along this line, and republicans have done that. we see from the democrats is
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complaints about dodd frank not recognizing that dodd-frank actually gave him a privileged position in our economy, that dodd-frank eliminated over 2000 community banks, and those that are small-sized either are no longer here, or they had to consolidate in order to survive this regulatory environment. kevin: i'm is meant patrick mchenry, currently in a recess, the hearing -- congressman patrick mchenry, currently in a recess, the hearing, the star power here, congressman maxine waters, alexandria ocasio-cortez, and the headline risk that represents to wall street, investors and shareholders, is this just political theater, or is there any ability for there to be any concrete developments out of this hearing? rep. mchenry: well, that remains to be seen. goal is no, this is
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all about washington, d.c. trying to get in on the action. a opening statement, this was hearing in search of a headline. so far, it is still searching for that headline. terms of bipartisan areas, are you confident at all that there may be some developments or whether it is cyber regulations? think about getting something done from the private and the public sector? rep. mchenry: two congressman on the republican side, one asked aboutpeace, and one asked cyber threats. we are trying to have discussions as policymakers as opposed to getting on some sort of tweet action or celebrity type culture coverage of capitol hill. kevin: i would be remiss if i do not ask you on your thoughts about the president's nomination for fed board, herman cain. on the republican
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side, it will mean something, and obviously it goes to a confirmation. that a lot for herman cain? a questiony: that is about performance and hearings. they are two very different individuals, one with tremendous experience them of other with economic background. i think the president should have his nominee confirmed and on the board of governors. kevin: i know you have to get back into that hearing. how long do you think it is going to go? rep. mchenry: who knows? [laughter] kevin: here until the end. thank you, congressman. it is always a pleasure to be with you. vonnie, we are waiting for the official restart your they are in recess. the votes have wrapped up, so we are anticipating the house financial services committee hearing will begin shortly today. our thanks to the top public in on that committee, congressman patrick mchenry. vonnie? vonnie: kevin, thank you. meaningful calls, new
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legislation, or anything that might actually change the environment. let's bring in our bloomberg banking reporter. are well-intentioned, and there are social problems in this country. >> the social problems may be the biggest take away from the hearing so far. if anything, we're watching the --t apple of hours to see couple of hours to see if the big banks continue to see. i am wondering if alexandria ocasio-cortez will bring it up, she didn't bring it up during the wells fargo hearing. up during bring it the wells fargo hearing. bank of america has had some setbacks, issues also. they have had some exposure in the management division. not a lot on the systemic issue that patrick mchenry was talking about. lloyd blankfein tweeting a few moments ago, boy, i really
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miss my old job. it is comical but also a little bit ironic about lawmakers warning 10 years after the crisis, and there are arguably more social problems in the country than there were then, and not really asking them to much about the social problems. all right, sonali, hang on for a second, we are going to get back to washington, d.c., where cap is really is speaking -- kevin cirilli is speaking with the chair of the committee cabinet. onnie. thank you, v we are here with maxine waters. waters: we have been doing tough questioning of the biggest in the country. i started asking them about whether or not they were eliminating lines of these rules that caused difficult problems in management. surprisingly, most of them downsizing, eliminating lines of businesses,
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helped them to do better management, and i wanted that on record. kevin: what do you hope to come out of this hearing as it moves forward? what is the hope for you to get to the bottom of this was the hearing wraps? rep. waters: my great hope is that a big banks who have had the power to influence the congress are so many years will understand it is a big day and it is -- new day and it is a new way, and they will be held accountable. their lines ofat business, their sizes, whether or not they are lending to homeowners who deserve to have a mortgage. we are looking at what they are doing for millennials. we are looking at whether or not these banks are insistent on just making money for themselves and the prophets, or whether or not they are going to use that opportunity to help out our communities with economic development. kevin: just one more question, i know you literally have to go in there to gavel income of the while i have you, in terms of eliminating another potential
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economic recession, what has to be done? rep. waters: exactly what we are doing now, legislate, step up to the responsibility, and the public forum for big banks of america and represent the consumers. i want to come out of this committee. i want and understand, again, that we are going to do oversight, we are going to do investigations, and we are going to represent our consumers. it is a new day, and they cannot keep the way that they were before 2008. kevin: house committee chair maxine waters, thank you for your time. she is going into that hearing now to restart that hearing. vonnie, i will send it back to you, but there you have it, republicans and democrats on a clear divide in washington on full display inside that house financial services committee hearing room. vonnie: kevin cirilli, there went committee chair maxine waters, thank you.
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she says she is there for her constituents and for the country as a whole theater let's get back to somali bas -- sonali basak. spectre of the crisis is still there, but what legislation is being called for? so interesting that she brings it up right now, because during the trump administration, bank regulations goingeen lighter, but through volcker rule rewrites, there have not been a lot of changes. there was a bloomberg investigation of a jp branch opening, shifting to more affluent areas, so, you know, what she was talking about about banking and lower income neighborhoods, that is something that, you know, let's see if something tangible comes out of this, because right now, i do not know if there has been a government wide study about where people are banking and what communities are being served.
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call for everything they want and anything their constituents want, but ultimately, the ceo's are going to do what is in the best interest of your companies, their employees, their shoulders -- their shareholders, and in their clients. sonali: these are corporations. it is funny that you mention this, because one of the things that michael corbat set right out of the gate is what his bank does is allow these multi- corporations to bank across the world, for, procter & gamble, and at the end of the day, these are public companies that are private. vonnie: exactly. kevin cirilli, did we get a sense from any of the lawmakers that there is legislation or call for legislation or anything in the offering that might legally and legislatively address some of their concerns? kevin: from the top lines you know, to be quite frank, there is no major piece of legislation
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akin to dodd-frank, for example, or even a major walked back from the top line. weeds,dive back into the they are trying to get a common standard across the board, more on the same page and more parallel to each other. that could come up. there are strange political bedfellows working on issues like that. but i think you already heard from chairwoman maxine waters that this ise out "a new day," and this new day is starting the 2020 cycle with a takeemocratic populace rhetoric that -- populace rhetoric that is on full display. vonnie: all right, taking the microphone now is the representative from missouri. >> it is supposed to be under section 1071 of dodd-frank. unlike the mortgage market, we
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have far less information about what is happening in the small business space, including potential dissemination of your to ensure we have a fair market place, shouldn't policymakers have access to that kind of data? just on small business lending generally, we billion of origination last year. our portfolio is over $36 loans under $1 million in size, so it is a major business for us. and i would say our satisfaction level is around 80% via survey. publiclyta is available, so i am not sure what the consumer bureau is going to collect, but i think the data at the fdic has been delivered for years to get the loans up to $800 million that you make and we supply that data. that is what i was saying to you, sir. y: and how much
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consideration is given to your bottom line and how much do you invest in small businesses? brian: it is a major part of our franchise. , million small businesses business is on the consumer side, so we do it with the competitiveness, so all participants of the seven banks are out there. disciplineust practice for us all over the we leave the path. rep. clay: thank you for that response. the financial crisis, citigroup at saturday's a troubling pattern. inedarch of 2019, the occ f citibank $25 billion for violating the fair housing act. they have a program to provide discounts on closing costs or productions on interest rates to customersigible
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seeking a mortgage. the bank failed to offer these benefits to all eligible customers. some customers were adversely affected because of their race, color, national origin, or sex. provide agreed to 24,000 customers impacted by the bank's discrimination approximately $24 million in her dress. -- in redress. why didn't citibank have appropriate policies and procedures in place to ensure that it not illegally discriminate when it implemented the program to provide benefits to certain customers seeking a mortgage? mr. corbat? michael: congressman, i would like to apologize to anyone who did not receive, as we call it, the rising benefit. it was an incident that we sell identified and self-reported to our regular readers and came up with our remediation to go back,
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because it is in our interest to make sure that our customers receive the benefits to which they are entitled. will say that of there were0 people, not race, ethnicity, gender biases in the data that we could compile, and we would say that our shortcoming or our error was really one of not having the employees properly trained. rep. waters: the gentleman's time has expired. the gentleman from michigan is recognized for five minutes. i very quickly, mr. corbat, will let you finish your sentence at least. michael: thank you. we did not train our employees to execute and implement the program that we have in place. we have remedied that and look forward to the opportunity. >> reclaiming my time on that.
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i will try to move quickly, gentleman. sorry it is a very large panel. one of my colleagues talked about the tax relief that you all corporately had received and that america had received to try to make this more competitive. there was someone mentioning about it not being permanent for personal income tax rates. all we need to do is actually get the democrats to engage on that, and they could have voted to make those permanent, i might add, so i do not expect a comment on that. but as someone who was publicly the bailouts that had happened under dodd-frank july was not in congress at the time, but i am dealing with the echo effects of it yet today. was verywas -- i frustrated having to see that and having to explain to constituents about why that had toe on, and i had a chance
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express to at least a couple of you personally that you cannot count on this congressman to ever allow that to happen again or to vote for a situation like that again, but part of the action here and what we are trying to do is to make sure that it never happens again on anybody's watch. line of have one main questioning in this come and i would like to have all of you answer very quickly. it could be yes or no are just briefly. are you properly capitalized, properly sized, and stable so that you can survive without hard-working taxpayer or s' dollars on the hook? mr. corbat, are you properly sized? michael: we are scaled to serve our clients. enga: -- >> yes, we are. >> yes, we are.
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>> yes, we are. enga: i appreciate that. there was a lot of questions about whether you work properly capitalized or mismanaged, and i think the numbers speak for themselves on that. i want to move quickly to brexit, because this is some real significance, two days away from a heart exit. london is the center of the derivatives market. there are 2 billion contracts that were written there in 2018 allow. hundreds of trillions of dollars that flow through there. the u.k. has been dominant in the space, and because of the regulatory regime imposed by the bank of england and authorities, one maintains a presence. i assume you all do. does anybody not? everybody does? ok. giancarlo has a
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quote that london is and will remain a global center for derivatives training and clearing, and he also mentioned that the pack of measures will provide a bridge over brexit for uponulatory framework which driving derivatives between the united states and you came will continue and injure. so i am very concerned about regardless of whether the brexit outcome is, whatever that is, are your institutions going to be needing to do more direct trading with continental banks by the those, regulated bank of england,how are you plag this happen? michael: we have set up a vehicle that encompasses our u.k. operation. we have separated are european operation from that. we have hang seng brokerages in
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both jurisdictions and at this point -- we have banks and brokerages in both jurisdictions at this point. anybody else care to weigh in on that? diamond said uncertainties but we have put the planning in place. is this an area you need to be in? what you doing for the world economy? >> we need to be in europe, absolutely. we finance the largest institutions in the world, a predominant number of which are in the u.s. rep. huizenga: i will be submitting questions and i want to say thank you, jamie dimon and michael corbat from your involvement and -- in detroit. rep. waters --

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