Loki rolled his eyes and noted keenly that for a man talking so big, he was still standing behind his desk. "You would do more damage than I, considering the dragon is not strictly real~" Loki confesses, trying to hit it with their weapons would make impact, but it would do nothing to stop her. "You might also note-" He moved over to look out the window. "That certain parts of your city remain untouched." It is the only reassurance he will give where Hammers daughter is concerned.
After a moments pause Loki sighed, realising that he had two options: Allow Hammer to play hero and probably cause more damage to the city then Loki himself would have, or explain himself and miss all the fun of Hammer chasing his own tail. In the end the God opts for a mixture of both. "My intentions in this instance are actually honourable." He holds up his hand in mock surrender.