Surveillance: Johnson & Trump Dissimilar, Diamond Says

Bridge in nodding, I don't know. I can't keep track. It's like the prime ministers. Who knows? Notdingham Shire? Is that what you call it? Nothingham? Okay, Nottingham That was like his childhood home. So for him it's as big as it's as big as Lords. But John, I didn't know this. Lord sees twenty eight thousand. Well it's cricket. It's very cool there and it sells out. And that's the voice of David Merritt. Go to cricket, I do, go to cricket. I've got my tickets for the summer.

We've got the World Cup has just started here. Can you explaine him, David that it's a good day out of drinking. It's an excellent day out. There's a bit of sport in the background. There's Pakistan in England and people are like totally focused on this. Oh yeah, it's a big thing. It's a big thing. I'll take you to the game. How long you here for? There's some I have to go see the charts, don't I know

that season's ended. Spurs done for the sleeping until everybody on a coast to coast in America's thank god, Premier League is done. I think there's a South American Cup that we can discuss, though, to fill in the boordom over the next coup, we have two esteemed guests here with a date calendar to a press company. We do Jenny Lennard joining a swell Bloomberg trade reporter David help us set us up in about what an hour from now, a joint news conference. I have no idea what it's about.

What is it about? Well, it's going to be about everything. I suspect, you know, this is this the last time that's happened. Last time the president came, it went on for I think much longer than an hour. He takes questions from everybody. He has rather long answers, and there's a lot to cover here. We have Brexit obviously lurking in the background. We have the question, a big question about the US trade deal what that might look like.

Lots of controversial comments from the American side. The last couple of days, Mrs May is gonna be asked about that. We've got questions about Iran, questions about Europe, and of course the big one who is Mrs May's successor going to be Um? He is not shy about wading into that debate, and you can bet your going to be really awkward. I agree, Jenny, this as important as you work out of Washington, and of course the expertise is trade.

How would you suggest a president or response you after the pump and circumstance of forty eight hours when somebody goes something about Mueller or bar or name the other scandal of your Washington, How does responned well? Trade for President Trump is always sort of a pivot away from domestic politics. Are ugly? Yeah, somebody brings up Mexico and immigration in the border wall. Is he going to be offended that these questions are being asked in England? I

don't know that he will be defensive about it. I think he's actually about the Mexico border wall and his latest announcement of tariffs coming on Mexico. I think he's happy to talk about that. I think he's pretty confident that that will, you know, solve the problem that you know, no one in Congress is going to throw a wrench in that. And and I'm sure who would be happy

to ask answer all kinds of questions. It's difficult to find a topic that both individuals can speak to that just seems to be a bunch of separate, different things going on that you want to one ask Prime Minister make and that you would like to ask the President of the United States. One thing of a couple of things that I think both can speak to is Shuawei David, and I just wonder to what degree that has been

discussed in the last twenty four hounds. Yeah, well this is this is definitely on the agenda when the two met in Danning Street earlier today. And again, of course it's something else that they both disagree on. Mr Trump's trying to ladle on the pressure for Britain to change its mind and to join with them in restricting Hawawei completely from building the five G networks. So far Britain has said it's it needs Huawei, it needs this to do it in a in a cost effective measure. Um

that is she going to crumble? Is she going to say? Well, in fact, the Americans have helped just change her. Then twisting there and dug what what what are the ramifications if she crumbles or doesn't crumble? Well, the big arm twisting is around the sharing of intelligence Britain and America. Britain particularly prides itself on being having this special access to American intelligence and that has been one has been

put at threat in the last few weeks. They've said, well, look, if you're going to insist on having your networks done by Huawei, we're not gonna be able to send you all of our intelligence. Johnian Leonard the Bucking Impels yesterday, along with Secretary Molution taking a video of it off as iPhone, were the worthies of the Trump at wustration lined up. And there was Steven Miller who was on the trip and he's part of the border wall in

immigration debate. How does he fit in to the trip and how does he fit in to the linkage to trade with Mexico. Good question that the trip, it's you got it gets a good question. The trumpet wise advisors that came on the trip kind of do not fit in its minutent. And his wife here but you know they're talking about trade in the U. S. Trade rep isn't coming, so you know, is not here. He's not here, He's not part of the trip, which I think the

constellation of people is a little bit interesting. Stephen Miller is of course, one of the architects of Trump's immigration policy. UH to Wawwei. I think one interesting thing is that Trump himself isn't really consistent when he talks about Wawei, right well, I mean we heard him. We heard him say before he left for Japan a couple of weeks ago, you know, Wawe is a really big intelligence risk. Our

national security folks are really were read about it. And in the next sentence he says, well, maybe we wrap this into a trade deal, which makes his advisors, his national security advisors, really uncomfortable because they don't want to want this to be, you know, kind of part of a trade discussion that could be traded away because they want actually to focus on uh you know, convincing allies like the UK to go through with banning Hua Awei

from from this. So we'll see if Trump gets asked about it, if he has a consistent message here, uh, and then and then we'll see what Primeister may have. Jenny, certainly at home, no problem convincing both Democrats and Republicans of the push around China and Huaweifi that matter. When it comes to Mexico a very different story. Interesting development overnight, some great reporting from the team in Washington, Jenny that maybe Senate Republicans are looking to push back against this effort.

How can they formalize that? What can they do so they could pass a resolution of disapproval, which you have to overcome a mutual proof majority, which we've seen in the past when they have tried to do that. That's actually more difficult then you think. And I would note to anyone who you know is looking at this with maybe some optimism that Congress could stop Trump on his trade agenda, don't hold your breath. We've seen this before

on national security tariffs, steal aluminum with autos. We've seen kind of a momentum even from his own party saying this might be a step too far. I don't know if they can actually swing this one. And now one final question, fair when I counting the minutes of no Brexit, no leave, are you bringing question David? I have to Okay, there's the headline the President maybe we'll meet with Mr Gove. What level of Brexit is Mr Gov And does the

President greet him as a brexit here like the others. Well, he suddenly was one of the architects of the Brexit campaign. But if you look at the spectrum now, or that the Brexit rainbow, if you like, the Tory hits somewhere in the middle. Actually, you know he's not actually going out and advocates we storm out with no deal come what may, which is what Mr Johnson and Mr rob are saying. He was the one who stuck by Mrs

Maid through second thin. He voted for her deal. Remember he didn't leave the cabinet saying this is a subject in Britain to European laws forever. So here's a loyalist to the Prime minister. He is more of a Centrists. He says we should find a middle way. And it's very interesting that Mr Trump has chosen to use his spare time this afteron to meet with him rather than with Mr Johnson, as was suggesting very kind to Mr of describing him as a loyalist. Well, okay, strategically known

as Macbeth. But he has I think it's undeniable, you know, he was. He was the heaviest way to actually stick with Mrs Mayor throughout this. Now you can you can question his motives for that? Is it because he was lining himself up for where he is now for the job. Possibly David the windsor lamb snap? Is that like lambs that they kill off the hills of the winter. I don't think they go out and shoot them themselves like

they do the deer. Perhaps in the pheasant I think they're probably sent to the Abbotts Fare, but I guess they must be. They're a sheep and I walk my dog and wins a great park sometimes that the weekend, and there are definitely you know, dotted sheep. You should get over to. Winter is beautiful. I can't compete with this, me and Vette mill for making it out of the circle park and we're lucky to the baseball. You do

what with your dog? Well it's not far, you know, my my son goes to schooler there, so I I walk my dog And how do you say it's like nasty Bush. I don't think. I don't think says nasty. You get all sorts of around wins. And I'm telling you, David Merrick, we're saying thank you to David, were saying thank you to Jenny, and we're going from London for our audience worldwide this Unfortunately today it's still Bloomberg surveillance. Let's bringing mind Ryan Shower you bus Americans see I oh,

he joins us on this program. Great to catch up with. You might walk us through the essence of the research that you guys have put out. Well, good more and Jonathan, thank you. Well. First of all we try to do is we tried to lay the framework out for what's likely to be a pretty certainly entertaining but also informative series of debates that are going to happen between the Democratic candidates, but also begin to set our sitelines a

little further afield. Obviously, the election is going to have huge implications not only in terms of who is a resident of the White House, but also the composition of Congress. Before we get there, though, we need to talk about what the major issues are going to be focused on. So one of the things we did in that report was we highlighted a number of focus issues they we're gonna be writing follow up reports on over the course

of between now and the election. These includes in issues ranging from a regulatory environment, to tax issues, to health care, to and for structure immigration policies. These are things that are critical not only to voters, but certainly two investors

as well. Looking at the situation, going into something a lot of people got very very wrong was framing the president of the United States now President Donald Trump as the risk off candidate, the high vul risk golf candidate Mike And what we found out subsequently is he was anything but for much of the first year. How are we framing the two parties from a market perspective just in terms that he invest the bias? Right now, what

is it around these two parties? Well, I do think when you when you think about the potential candidates, and obviously it's it's very very early start handicapping who could emerge from the Democratic field as the as the ultimate nominee. But as we think about this um, this field where we're gonna be focused on now is where the policy pass start to lead. Obviously, one of the things we saw from the election of Donald Trump was a focus

on several things. One was on regulatory reform and others on tax relief, which were very market friendly the concerns. Of course, whoever emerged from the Democratic field could take a very very different posture on both of those. That could be talking about increasing taxes in the way of closing the duct the budget deficit, but also of reimposing some of the regulations that have been put in place

during the Obama administration. Mike, what's fascinating to me, And this is the last couple of days, I've seen articles that clearly show there's no policy traction yet among the many Democratic candidates, people learned focused on it, which I you know, I guess I understand. I guess we learned healthcare mattered in the mid terms. Do we get to the first or the fourth or debate in healthcare just becomes the topic as we saw in the mid terms, It certainly could be time. I think it's gonna be.

First of all, as as you as you mentioned, it's it's really early to story handicapping exactly how the policy path will map out and also who will emerge as the primary candidates. However, when you look across the field, what you do see as some commonality, healthcare is one of the that emerges from almost all of the potential candidates from the Democratic side. So there's no question that over the course of debates and going into the party convention,

healthcare is going to emerge. Is one of the critical issues for the Democrats. Listening to some investors out there, I always think that some investors receive more attention that maybe they deserve. Stan Drumla is not one of those investors. He spoke yesterday evening and said the following when the Trump tweet went out. He's referring to the Trump tweet on China. A number of weeks ago, I went from invested to net flat and bought a bunch of treasuries.

Not because I'm trying to make money. I just don't want to play in this environment. Talk to me about this environment right now and whether you can play in this environment. Well, we want to be really careful about it. Is not to play two tactically against trade. You know, our our view as we want to maintain a relatively balanced portfolio or ultimate view is that we do think a pathway will be found for a framework and an

agreement between the US and China. But remember John, this is the the issues that the U. S And China are contending with have been decades in the making. The notion that we're gonna solve this in in six or twelve or eighteen months, or that we're gonna come to this comprehensive agreement that the two parties signed have a

big signing ceremony, I think it's all native. Instead, I think you'll see is they will be First of all, we do expect to see some more back and forth between the U. S and China, but ultimately it's it's in both parties interests to come to some sort of framework that allows for the following the eventual easing of tariffs,

but it has to come with verification. But you mentioned the key item, and we've heard this in London in different conversations in both parties interests is a rational statement. Have we seen rationality in these trade debates? You can argue there has been rationality because so forth it's has been about how you posture and how you try and gain tech for advantages. Nothing there's nothing irrational about that.

What it is irrational is if you take it to its endgame, where you see both parties back in the corns into a corner. But I'm looking at West Texas Intermediate, which John I haven't really brought up in weeks, and I've got an exceptionally elegant shirt from sixty three straight down to one. And you know, you look at as a proxy for global demand, oil demand and also the economic demand. It's out there and it's speaking volumes. I

think reading the data right now, it's really difficult. We had some I S M and P M I yesterday weakness Tom and slightly disappointing as well. Relative to the solid economy that was painted by the data, yeah, a number of months ago. It's not there in the same way. And I think if there's any anxiety right now, Mike, it's always about the DOWTA. Where does the change come from? In China, we know it's weaker relative to where we were before. In Europe, we know it's weaker relatives to

where we before we were before. The unknown seems to be the United States, Mike. What is happening with the this U S economy? Is it just a return to trend growth or do we overshoot? What's the answer, Mike, Yeah, I don't think we overshoot at I think with you're saying, look, we've had these these periodic growth slowdowns throughout this entire expansion.

I think we're seeing one right now. I'd also argue that if you if you actually look through the data, we are starting to see some signs now of some underlying strength. So we don't think the economy is set to roll over, nor do we think their session risks are particularly acute. We are walking through a period of weaker data at least certainly versus consensus expectations, but we still expect to see growth somewhere towards trend over the

course of this year. In two thousand two, Micael Ryan, thank you so much with ubs political statement, and of course we will have much more from Mr Ryan and his team in the coming eighteen months. Guy Johnson is with us who has memorized the resume of every prime minister of candidate. At the end there Guy Johnson, who is Jeremy that he was speaking down to Mr Jeremy Hunt, the Foreign Secretary um and asking him whether or not

one of his competitors would do a good job. And I suspect that, Jeremy, what are the shades of the What are the shades of the Conservative Party right now? For Americans? Are American listeners in Morning America? I would suggest it's a bit confusing. There's Boris with a hair like Trump, and there's everybody else. What are the shades? Yeah, interuting to see the two standing next door to each other, wouldn't it We may you never know that might that

might happen? And as the President suggested, um that the two our friends. Um. Look, basically, you've got a Conservative Party split into two basic factions, one of which is the hard Brexiteers, of which Boris Johnson is the most obvious candidate, but there are others, and then you've got the more centrist candidates who are pushing back and are concerned about the possibility of a hard Brexit. Um. The Conservative Party has sort of been split in this way

for really quite some time. At the moment, Tom, the best thing is that a hard Brexit here is likely to win out if that is Boris Johnson, will he actually deliver upon that hard brexit? Boris has changed his spots one or two times. Yes, I see that within the British media, the vibrant newspapers of this London. You see that every day. But then you get to October thirty one, every date has been extended. Do you and the British media just assume it's another can to be

kicking down the road? We went see, we can probably ask the question to the French. The French seemed very keen that that date is more firm than maybe others are suggesting at this stage that a deal needs to be done. At this point, I think it's very hard to get your arms around understanding whether or not that would be the case. Um, I think the EU would be nervous about forcing a hard Brexit. Are you with

Ronnie Queen here? In twenty minutes? I am with Fonny quin will be in New York, though I'll be I'll be with her here. She'll be with me in spirit here as well. Wonderful chemistry as well there between the Irish and the Britishers of Anny Quinn and Guy Johnson moved the dialogue Ford on Bloomberg Television, Tom, we are very fortunate to welcome to the Bloomberg and Actor Broker Studio Bob Diamond, partner and founding partner and CEO of

Atlas Merchant Capital, of course, former CEO of Barkley's. Bob, thanks so much for joining us in studio. UM, I know you're here for the Bloomberg invest Conference. I just wonder, you know, just given what we heard from President Trump and Teresa May, one of the topics obviously is Brexit. Given your experience in the UK with Barkley's and so on, how do you think this is going to play out

in your opinion? You know, it's the question of the day, and I think we're not going to know until leadership is is settled, which we've been talking about in the Conservative Party. It's going to take leadership to deliver this. Um. You know my starting position as it was a bad decision, but I think it is what it is, and now it's about implementation and execution and moving forward and certainty. And I think the business community, in particular in the

financial services industry needs certainty. So I think the next leader has to be someone that we can be confident can deliver and execute. Is it your sense, given you know your understanding of a British corporate Um, you know, politics and what's going on. Is it your sense that corporations in the UK have done what they can to prepare for what might be a less than clean Brexit. Yeah, I would say a couple of things, Paul. It's a

it's a good point. And through Panmore Gordon, which is the middle market broker dealer that we're we're an owner of in the UK, we talked to small businesses every day and they have moved on so they fully expect Brexit. I think they're to your point as prepared as they can be right now. And I think if you asked the chief executives, they'd say, to a person, we just

want certainty and we want to move forward. I think the kinds of things they were hearing today about the potential for trade agreements with the US and UK will be will be taken very very positively. But it's certainty more than anything else that they need now. Bob Diamond, Tom keenan London and we say good morning here from the reign of London Light Rain, I should say beautiful.

As the President moves on with his day. You have an uncommonly direct relationship with Boris Johnson, going back to his time as mayor, with your leadership with Barclays and for all of our listeners worldwide identified with Premier League sponsorship, but particularly those bikes pedaling around And I can I'll say right now, folks without editorializing that Bob Diamond's leadership and getting bikes around cities, maybe it was your most

it was your most profound effect. Bob tell us about the border Johnson, you know, and can he get along with multinational business in London. So I as you say, Tom, I've known Boris for over twenty years. I think he was an absolutely terrific mayor. I think London, why is he a lightning rod of criticism? I think I think many great leaders can be can be lightning rods. I think this whole process of Brexit, um, I think everyone has come out, you know, around an issue that divided

the country this much. Of course there's going to be some light lightning rod impact. But you know, I even worked on the Mayor's Fund for London. When Boris set up a fund for London, it was to ensure that young children um had a good introduction to school and that meant everything from making sure they had meals when they got to school to making sure that the teachers

were prepared, and it was a recognition. He never talked about it, he never got credit for it, but it was a recognition that the importance for London of the younger generation, young kids getting a good start in school. But I think what he brings, what he brought to London was he's really really smart. He's a really really strong leader. He's very very strategic, and he's willing to

make bold decisions. And I think, um, you know, right now, when we're looking at execution, execution, execution being critical, we know the direction that we're going on Brexit, it's all about execution. That's the kind of leadership that we need. How would Prime Minister Johnson be different from President Trump. I mean they've got the same blonde hair. There's a story about that may able to get the Bob Diamond look going. But but how is Mr Johnson different from

Mr Trump? Yeah, I don't think there's any similarities really. I guess the fluffy hair might be. But you have to go back over over the time that that the Boris has had real impact and I look at the London of today. One of the reasons that you know that city has weathered all the if I can call it the kerfuffle of Brexit, not Brexit, maybe Broxit sometimes Brexit. Where is everyone going? London is still the key financial

center in the world. I'm glad you brought that up because I think a lot of concern, Bob is that with the uncertainty of Brexit, that London would lose its position as a global financial marketplace. And I guess we really haven't seen it today. We've seen certain jobs moved to Frankfurt to other parts of Europe. Do you expect that to accelerate if we have maybe a messy Brexit deal. Yeah.

I think there's two ways to look at it. One, for the next decade or a hundred years, London will be one of their key financial centers in the world and will be a place where people want to live. Great schools, great environment, great culture. But most importantly it

will be one of our key financial centers. There are jobs moving to Dublin, to Amsterdam, to Frankfort, but Paul I would say this is something that that these capitals have been looking for since the introduction of the single currency. There's always been why is everything in London that's right? So everyone wants to get their piece of the business. The was a little bit of a crack to allow some of that to happen. But I think some of

it is a natural evolution. Is the asset management industry, you know, managing pension money and Frankfort always going to be in London. No, They're going to always try and pull more of it back, the same way Chicago wants to pull business from New York. So some of this is natural. It got a little bit of an impetus.

I think a lot of the services, legal services, accounting services will be spread out a little bit more, and so there will be an impact on London, but not an impact that's going to remove it as the as the premier financial center in the world. Both. I guess at the press conference today about both the President Trump and Prime Minister May talking about a UK US trade deal and how it could be potentially President Trump shorts significantly bigger than the current trade agreement. How do you

think that might develop? Well, I think I think both for the US and the UK right now, having the positive momentum of a substantive real trade deal between the US and UK would be great. I think it would be terrific for both countries. Um. You know the history of this relationship goes way back thirty years ago when I moved to London with Morgan Stanley. UM, I was there for Big Bang. I was there to see the impact that the US financial services industry, Morgan Stanley, Goldman, Sachs,

Solomon Brothers. You know, the beginning of their really international expansion was to London. The growth of the financial markets, the incredible capital markets that we take for granted today. So much of this as a result of the UK US special relationship. I don't think we can underestimate it. We are thrilled to Bob Diamonds with us, of course, the former leader of Barclays. He's got all sorts adventurous moving on now, including speaking in Bloomberg today. Bob Diamond

will continue with us. He is with Paul Sweeney in our Bloomberg Interactive Broker studios in New York. I'm Tom Keane, the Queen Victoria Street, Paul, I should point out, with better coffee than you have. The coffee here is extraordinary. We've got the absolute most spectacular building in our newest building at Edition in London. It is it's really something here in a course with Roman Roumans down in the basement, Bob Diamond, I think he held a Colby fundraiser in

the Roman ruins. Uh, you know, a couple hundred years ago as well. But it is indeed historic here and an historic moment as Prime minister may really possibly her last appearance before she loses leadership of the Conservative Party and then towards a new prime minister avoiding a general election with President Trump the Doalop two d and thirty nine points. As we speak with Bob Diamond. Uh, Bob, it is a special relationship as well, and yet we

go to a trade deal without question. The British press this morning talks about the aggressiveness of President Trump in a mercantile non lateral negotiations. What kind of trade deal could be negotiated in a post Rexit world. Um, you know you're you're well beyond my area of expertise, but

I thinking about this just from the UK position right now. Um, as they moved towards exiting Brexit, there's probably nothing more important on the economic agenda than than to ensure um trading relationships and UM the documentation of that with their key trading partners. We've talked about this before, Tom, but both when I was at Barclays and now in Atlas Merchant Capital with Panmore Gordon. I've spent a lot of time in towns like Leeds and Birmingham and Manchester with

small businesses and it surprised me early on. It will never surprise me again. Every single business, no matter how small warehouses to to chocolate makers, to to raising to to razor manufacturers, all have trade with Europe and almost all of them have trade with the US as well. This is a trading nation and so I think the shock of the uncertainty of Brexit is most profound with the small businesses across the UK, and the benefit will be most profound if we get certainty and we get

we get some good trade agreements. Well, I don't go all David Ricardo on you, but I will so. Do you assume that a post Brexit United Kingdom can overlay a burgeoning US UK relationship on top of the existing volume of EU trade or does its substitute. I don't think it will replace by any means. I think the trade with Europe is critical for the UK. I haven't got the numbers to hand but I know trade with Europe is is significantly greater than trade with the US

for businesses in the UK. I was not in favor of Brexit for for just these reasons. But we've moved beyond that. It's now into execution and we have to execute it in a way that the trade relationships between the UK corporates and UH and Europe stays as strong as it can. So about one of the issues I know for global financial institutions is kind of just the European market in general, the strength of the European economy.

One of the big issues I guess from your part of the world of financial services part of world is Deutsche Bank. Where do you what do you think happens to Deutsche Bank specifically banking in Germany in general. So I think banking in Germany is it a very interesting crossroad right now? They have two very large, very um low profit in both Commerce Bank and Deutsche Bank. UM, so they have two very large institutions. They're not performing well.

They're clearly in play. As we've watched the Deutsche Commerce Bank discussions go forward officially and then end. You can read as well as I can that Una Credito from from Italy they have a they have a very very strong CEO, and JP Mustier are looking at Commerce Bank, and so if you asked me a transaction like that would be very very positive. I think Germany has an issue and they need a resolution to at LEAs East

one of Deutsche Bank or Commerce Bank. And over you didn't quite ask this, Paul, so I'm kind of adding a second thing, so I think it relates. But Um, over all of this is the fact that we have a new ECB governor coming and I think Europe needs, um, a very very strong governor of the e c B, someone more like Mario drag who made that incredibly important comment in two thousand twelve that he'll do whatever it

is necessary in the interests of the Eurozone. And what Europe does not need is another hard line bundas Bank orthodoxy, orthodoxy driven one variable um kind of approach. We need bunch more flexibility towards towards monetary policy in Europe. And I think who succeeds Mario d is a critically important factor. Well, one of the things Tom and I've talked about, you know, continually on this show is it seems like after the financial crisis, the US banking industry cleared, for lack of

a better word, consolidated, rationalized. Yet Europe does not seem to have done that. Ergo, the banks are not as strong, we have negative interest rates not helping in certain major markets. Do you believe that there needs to be a clearing or a consolidation of European banking broadly? Absolutely, and it's gonna it's gonna take a while. But if we go back, and I've spoken at length with Tom about this, not with you, Paul, but the Tart program was brilliant, you know.

It basically put more equity than any bank needed in all of the systemic banks. The trick was number one, you can't pay that capital back until you pass the stress test, which means you've cleaned up your balance sheet. And until you pay it back, you can't pay bonuses and you can't pay dividends. So the US banks repaired quickly. Is there a program like that that could be implemented across Europe? I think if there was a will in

a way, it would have been done. And so I think a lot more of the pressure is on each of the each of the nation. So in Greece, for example, they did consolidate. They had twenty five banks and two thousand, two thousand nine. Today there's four major banks, which is the consolidation of those, but they average over non performing loans today ten years on. And that's the situation with Deutsche Bank and Commerce Bank. They never addressed the balance

shooter shoes. Well, let's go right to that, Bob Diamond, about time for one more question. We're waiting for Chairman Powell to speak an important speech in Chicago. We'll have that for you on Bloomberg Radio. Bob Diamond, I think the last time you and I talked, the red sox uh we're playing I don't know, above below five ball. Now they're doing a little better. And also Deutsche Bank was at seven euros per share. We had a five handle the other day. The vector is not good. What

occurs does the German government step in? I mean, each nation has your own ballet. How do you see a Deutsche Bank workout? So that's you're getting to the nub of the issue is I think the Commerce Deutsche combination allowed something that that that because the government had an ownership in Commerce Bank, that could kind of get away by being involved in that. In that merger. But no elected official or no regulator wants to be associated with

too big to fail or bailing out a bank. And that's why SIPHI and g SphI and buffer upon buffer of capital. It's created massive opportunities for US Anatlas merchant capital. So we kind of love it. But that's not the question you're asking. You're asking what's the resolution of Deutsche Bank? And I think it's really challenging, and it puts it puts the elected officials in Germany in an enormously challenging

position if they have to bail it out. But if I can be quite direct, they kind of are already. You know, the markets have the underpinning that the German government would step in if necessary. And this is the exactly what the regulators and elected officials hated in two thousand and eight and two thousand nine was too big to fail, And here it is again. Bob Diamond, thank you so much, just generous of your time. You're today Mr Diamond of course with Barclays and he's moved on

to other investment action here in two thousand nineteen. Thanks for listening to the Bloomberg Surveillance podcast. Subscribe and listen to interviews on Apple Podcasts, SoundCloud, or whichever podcast platform you prefer. I'm on Twitter at Tom Keane before the podcast. You can always catch us worldwide. I'm Bloomberg Radio