Attacks between donald trump and Hillary Clinton. You bragged that you have sexually assaulted women. Trump this was locker room talk. Im not proud of it. I apologized to my family and to the American People. Mrs. Clinton it is not only about it is not only these questions that he has also targeted immigrants, africanamericans, latinos, people with disabilities, p. O. W. s, muslims, and so many others. So this is who donald trump is. I think it is very important for us to make clear to our children that our country really is great because we are good. A divided we have nation because of people like her. Believe me, she has tremendous hate in her heart. When she said deplorables, she meant it. When she said they are irredeemable, to me that might have been even worse. I did not think i would say this, but i am going to say it but i hate to say it. If i win, i am going to instruct my attorney general to get a special prosecutor to look into your situation, because there has never been so many lies, so much deception are there has never been anything like it. Mrs. Clinton it is awfully good that someone with the temperament of donald trump is not in charge of the law in our country. Mr. Trump because you would be in jail. For more analysis, lets bring our Washington Bureau chief, megan murphy, in st. Louis. And politics and economics editor Michael Mckee is with us in new york. Megan, you know every time we have a new debate the next morning we try to find the substance and focus on the policies. When we put together that video clip, we had a hard time doing this. What was the debate about . Megan this was nasty, this was ugly, this was personal. There were times in the hall last night where people watching were gasping for breath at some of the comments that were coming out. Since thed this ever release last friday night of the video, the recording of donald trump making these sexually aggressive, lewd comments about then filtered over. We saw this mastiff archer of senior republican figures, and senior democrat we saw this of seniorparture republican figures. They were going to go into bill clintons history with women. We expected that. I do not think we appreciated how much it was. In terms of donald trump, you cannot think there were that many viewers who tuned in last night and saw this as a positive, appealing message in terms of winning over voters. But in terms of his base, he hit the sweet spot last night. David he needed to stop the bleeding. I think that was the consensus going in. Do we have any sense whether he coppers that whether he accomplished that . Megan among people who really have the most vested in donald trump, there was a heavy, heavy push last night that, yes, he got encouragement from other people in the party that in general senior fee each supportiveres were and he needs to retain that enthusiasm and staunch the flow of blood. But wider than that, it appears it was another victory for Hillary Clinton in the debate. We will see how it plays out today. Alix the beginning of the debate was very nasty, but we did get two points of substance. Michael normally it is the economy, stupid, right . But not last night because of as clinton went after trump for not paying federal income taxes, here is what they said. All, i payfirst of hundreds of millions of dollars in taxes. Many of our friends took bigger deductions Warren Buffett deduction. Ive D George Soros took a massive deduction. Michael we do not know what Warren Buffett or george soros pay in taxes. Evidence suggests they both do take big deductions. Warren buffett says he only pay 17 on his income. This is not resonating with the voters versus Everything Else discussed last night. How much is the republican establishment focusing on donald trump and the senate and house races . Megan they are incredibly alarmed and concerned, but we have seen unusual pattern so far this campaign. Where republicans have been allowed to separate themselves from donald trump and from his rhetoric in very tight races. The video friday changes that dynamic. People are running for the exits to make sure they know the American People, in close senate and congress races, that they do not support his comments, his stance on women, and his vision. That is something unlike we have seen in political campaigns in decades and politics. You. thank to give us a view of last nights debate from the trunk cap, we are joined by david malpass, who supports mr. Trump. He served in senior positions in the reagan and George H W Bush administrations. Welcome to the program, david. Are a substantive person, interested in economics and how does donald trump get his campaign focused on the merits and away from these personal attacks . David i think by putting out a lot of policies, which he has been doing. There could have been more last night talking about rose, but the contrast was talking about growth, but the contrast was still pretty clear. He pointed out that she has a big tax increase going on. Under the surface, there was also this issue of corruption in washington, the special interests. One of the big parts of the Trump Campaign is to stop that, so he brought that out by talking about you have made 250 million just since you have been in office. Why have you not contributed anything to your campaign . That was a way to focus on the amount and the magnitude of the corruption in washington. Jon the events of the weekend how difficult is it for you to come in on a program like this and continue to support donald trump . David i hate the things that came out. I think we have to look at that but also look at actions and look at leadership. If youthe questions is, are president of the u. S. , the chief executive of a gigantic government way too big and hundreds ofing people through your administration actually thousands of people to run the government. Trump has a big track record of trump has a good track record of picking good people. Is a good choice. Where is still are clinton simply does not have that. She is surrounded by people who are not strong. Even barack obama, you have to look and say that a lot of the people maybe should not have been in those offices. An if we were talking about company on the s p 500 and this video was released of the ceo no matter how old it was, that ceo would be stepping down today. You have been at bear stearns. If this happened at bear stearns, the chief executive would be gone the next week. We are not talking about an s p 500 company. We are talking about running for the Biggest Office in this country. Surely you have a different view on that. David right, but if you look at what is facing the u. S. In an election, it is one person versus another, so we have to start thinking about the contrasting vision. Trump is talking about a vision where we have 4 growth, 25 million jobs, and i am continually surprised by the Clinton Campaign accepting the really slow growth that we have got. I do not know that you want to jump as you are making that choice, you have to look at what kind of people they are going to have and what policies they are proposing. David lets assume that mr. Trumps policies are the right one for the country to get it going again. Importantority is an part about getting those policies implemented. Today for aficult president like donald trump to get congress and the American People to follow . David obviously this is a big setback and there has to be a lot of work in order to build. Thewe have not talked about disclosures that came out on friday about Hillary Clinton. The timing was interesting, the two going together, the one on trump overshadowing the one on clinton. Wasif you read what she saying, it is an unacceptable vision of where the u. S. Is. It is where Public Officials talk in one term whether they are public whether they that when they are in public, another when they are in private. She has openly advocated as for the u. S. That is what Angela Merkel has done in germany, and it has been a failure. It has caused this giant wave of change in europe as well as in the u. S. Brexit is an example of where that policy would lead. I think we should be talking about that. We know a lot about the of hillary leader clinton, and that came out in the debate last night. David it is so good to have you here today. He will be staying with us for a lot more talk. We go to alix steel now with stocks to watch. Alix we have futures in the u. S. Slightly higher but a big negative in the market, and that his twitter, off by almost 8 . And that is twitter, off by almost 8 . Twitter will have to rely on their Live Streaming strategy like the nfl to create some value. When all the rumor started, and put it was trading at 15. 75. Is run outr premium of the market. We want to keep our ion Deutsche Bank, off by a half a percent. Leaving, noan settlement yet with the doj. The Financial Times came out with a report an hour ago saying Deutsche Bank was given special treatment in the u. S. Stress test it in the u. S. Stress test. In asia, samsung down by 1. 5 . It is halting its production of note 7 smartphones. The replacement phones are also said to be catching on fire. And verizon stopping at t and verizon are stopping the sale of those phones. Jon coming up on the program, more on the challenges at Deutsche Bank. Later, a conversation you do not and exclusive conversation with governor kuroda of japan. This is bloomberg. Jon from new york city, this is bloomberg. Im Jonathan Ferro. Jonathan tice joins us. With its collision of stories, three of them, on the one hand, the debate where john cryan is with the negotiations of the department of justice. Stake inboosting a Deutsche Bank. Then this story on the margin, how Deutsche Bank may have been given preferential treatment by the ecb. Walk us through all three. That is indeed strange they were given a dispensation to both the sale, and especially give them a 40 basis points of capital. Largely because it is very clear with the rules of the stress test what it can or cant do as what it can or cant do. What it can or cannot do. Beyond that, the qatari is stepping in. How much of that story is about Deutsche Bank at the moment, and how much would that story make a difference with john cryans cause . Jonathan the Capital Increase is on the cards print i do not know off the top of my head with their stake is, but that is what we saw at barclays during the crisis as well. It does give some confidence that you can until we know what the big number is with the doj, it is difficult to figure out how much they need because clearly every estimate the the story stabilized on back of another story a couple weeks back. This is at a time when it was materially lower than the 14 million profit table by the doj. Where are we with negotiations . As far as bloomberg understands, the negotiations continue. Jonathan i suspect the relief was misplaced. Clearly the fact that there has not been anything it is not at the lower end. Jonathan jonathan tice, great to have you on the program. We were down almost four full Percentage Points in frankfurt. Alix i want to bring in david malpass. You have insight. What should Deutsche Bank be doing right now . Is it an asset sale . Is it going to the qatari government and asking for more money . Is it raising debt . Europes Banking System is really having a hard time. Growth is so slow that it is hard for them to make good on loans that they have made in the past. One of the critical things going on is the Banking System nowadays is more mark to market than it was prior to the 2008 crisis. Problems that Deutsche Bank has gotten into is putting things out of reach of and othero market, regulators saying it has to come back. If you are doing that, Equity Capital is lower. In order to move fast to shore up Equity Capital but also give more disclosure on things on their assets side. What assets do they actually have, and are they properly marked . Hat is the trouble in europe there are quite a few banks that are not fully disclosing that they have carried over losses that have been around for years and years and years. That is what is coming out. David this is such a confidence matter. They do not they do not want a run on the bank, as it were. Can raising equity do that . It would dilute the equity holders. Notd it would, and i am sure they want to raise it in up with offering. What is also important here is the uncertainty about the u. S. Fine. You have this crazy world where the department of justice, during an election cycle, can assess a 14 billion or 14 is way euro fine, which bigger than Deutsche Bank can afford. So what are you going to do about that . Europe is going to come back at u. S. Companies. So you almost enter this war of governments ofhe the two groups. I think it is dangerous. They need to stop it and find a way of limiting that damage. Otherwise it is mutually assured destruction across the atlantic. David david malpass, thank you for being with us today. Continuingrn to the shock of the british pound. This is bloomberg. Jon from new york city, this is bloomberg. Is the rbcnow Capital Markets senior currency analyst. Last week happened in a big way. I want to go inside the bloomberg, and i am looking at the 10year breakeven rates. What we are seeing with that blowout, essentially the bond Market Pricing in a significant way. We start to see the negative effects of that appreciating pound bleeding into other Asset Classes . Co we have not started to see the full effects, but the markets tell you it is coming. It is not much to extrapolate. We are going to see some inflation in the coming year as it passes through to the real economy. Narrative is building up in london that they will sit through this. When does it become a problem . England fornk of several years missed its inflation target year after year, and at the time mervyn king was forced to continually write letters to the chancellor, and yet they still lived through it and did not raise rates. That was the right call. The problem now is, what will this mean for the u. K. , . This is not 1992. Very different conditions right now. Jon the cyclical story is that it seems to be ok, but there is a structural story, a massive current account deficit that somehow needs to be funded. The question for the fx market now is that if you look at the collapsing cable we have had, a much more of an adjustment to we need to see to adjust the structural issues . Elsa there is a problem. We found not just in the u. K. But in other countries that the economies are a lot less sensitive to the Exchange Rate that they were in the past in the export sector. So we are seeing export volumes not go up as much as you might expect. It takes a profit margin boost rather than a volume boost. Looking at the experiences of other countries within appreciating currency, usually it is appreciating bond markets because on the back of it, jiving the weaker currency is lower Interest Rates. The story and the u. K. Looks different. If i am a foreign investor and i have a depreciating currency and i take the fx risk, the offset i need is an appreciating asset. The bond market, if this continues, how quickly does it become a snowball rolling toward the exit and investors begin to dump u. K. Assets . Elsa we can see investors hedging their fx risk. Ftse, it isat the one of the biggest beneficiaries of sterling weakness. Investors do not need to the best trade at the moment is hedged u. K. Equities. Jon what is the most bullish cost of cable right now . All i can think of is bearish, bearish, bearish. Elsa some people are pointing to positioning saying it is crowded, but i am not sure it is as crowded as people make out. Septemberfew weeks in i think this move has caught people by surprise. We have had a call of 1. 15 for cable for 2017. We made that call before the referendum, saying that in the event of a vote to leave, this will be our call and we are sticking by that. Jon i have to say, over the weekend big debate, u. K. Media. Said it was a petulant teenager. Heat inat got a lot of the market as well. The gloves came off last night in the debate, but did the debate help either candidate . That conversation coming next. This is bloomberg. Jonathan this is bloomberg, im Jonathan Ferro. 61 points on the dow. The ftse marches higher. The story on the fx market. It is a weaker pound through much of the session. Closed. Treasury market up. Alix here is what you need to know. Twitter shares down over 8 . Potential bidders were said to have lost interest over the weekend to buy the company. Alsoche bank shares falling over the weekend. Reported thepaper ceo was unable to reach an agreement in washington. The second president ial debate was filled with personal attacks between donald trump and Hillary Clinton. Mr. Trump i hate to say this, but if i win, im going to instruct my attorney general to get a special prosecutor to look into your situation because there has never been so many lies, so much deception, there has never been anything like it. People have been, their lives have been destroyed for doing 1 5 of what you have done and it is a disgrace and you want to be ashamed of yourself. Clinton everything he just said is absolutely false, but im not surprised. It is awfully good that someone with the temperament of donald trump is not in charge of the law of our country. Mr. Trump because you would be in jail. David for more on that debate, we turn to al hunt in washington