are you talking to the treasury department about reducing volatility? , is it thating repo you would be inclined to do it but need to figure out the details? what would drive the decision on whether or not to do that? chairman powell: on treasuries versus reserves, we have done a ton of work on that if you look at the banks, they are all over the place on their buffer. you have a business model that suggests what your stress outflows will be and what your buffer should be. he see them making different choices. some have lots of reserves and then change their mind. it's not obvious there's one ing.g happen tga, we have not tried to pull the tga into this yet. i don't know that at some point we won't have those discussions, we want treasury to have the cash it needs. we are essentially taking that enous tostion us -- exog our work. facility, we are more focused, frankly, on the year-and --es, the year end, and the regulatory issues we are digging into. these are structural things where you could, without sacrificing safety and soundness, allow the liquidi

a little buying in the 10 year treasury. one of the stocks that had moved higher in earlier trading, just off the highs now in the regular session, is apple. gene munster putting a note out saying that it will lead again next year. we talked about tailwinds. tesla is down almost 1% now, even though we are hearing that the china delivery will begin on monday, the first delivery of a tesla in china, the china built model three. let's get to europe. we are open again after two days of holidays. stoxx 600 is up 0.2%. the dax is leading. resources are the top performers today, along with utilities. the dollar index weaker. let's get to the markets now. joining us in studio is dennis debusschere, evercore isi head of portfolio strategy. we have a great piece on the bloomberg today talking about the decade beginning with everything crumbling and a lot of panic, and now we are heading into a new year when apparently nothing can go wrong. dennis: i think part of the reasons the market is acting like that is because people think every

so treasury sources have told me today that those rules could be entirely scrapped and new rules would come in in their place. that would mean the projects would be weighed on a different basis. so perhaps on wellbeing of certain areas or indeed to rebalance the economy across the country, which would naturally favour areas like here in leeds and across the north of england, that haven't seen as much funding in recent years. but for anyone getting too excited, thinking that that means projects will be coming to their area within the next few months, it's going to be a lot longer than that. infrastructure projects take a long time to deliver. so even if we hear in this spring's budget, more spending across the north and the midlands, it's going to be years before those infrastructure projects are actually delivered and people see new rail lines, new rail services, new roads, new research and development, which is exactly the kind of things that the treasury are talking about today. the headlines on bbc news... at least 12 people are killed, after a plane crashes in kazakhstan. the head

as we mentioned, treasuries are cheaper. say as chinese officials they are in close contact with u.s. counterparts on trade negotiations. the prospects of a u.s. china trade deal, just one of the challenges weighing on the bond market as we head into 2020. for more, let's welcome in dan fuss of loomis sayles. let's talk about what is moving the treasury markets. we continue to see these trade headlines and we had those disappointing adp numbers yesterday, bad german factory output overnight, and yields are still rising. so it's all about the negotiations right now? dan: the data coming through on the economic side has been quite strong. a lot of the assumptions on the economy, however, a different factor is built in. that is the length of the economic expansion. about 11 years now. the economists are using the exact same phrase that my doctor uses at my annual physical. he looks at me and starts out by saying, for a man of your age -- the same thing with the economy. economists are doing the same thing. they are watching on

you see the letterhead here, "the secretary of the treasury in washington." "boys and girls of america, here's a way for everyone of you to help your country. every time you buy a saving stamp, you are helping uncle sam to pay for a part of a gun, plane, or ship, which your fathers, brothers, or uncles are using for the defense of the country. if every one of you, 40 million boys and girls, would buy at least one $.10 saving stamp every week, you would be lending your uncle sam, $200 million every year. think, of all the guns, planes, and ships he could buy with that. remember, you can help to keep them flying, by buying a defense stamp every week. sincerely, henry morgenthal jr." there is a minuteman symbol again, right on here it says "this space is donated by the publishers of the magazine. in the interest of national defense and victory." okay? it costs of course the company was dc comics. dc comics had some levels to his organization at the time. was the there was the national comics wing that gave the superman, batman aquaman, and green air arrow and th

part of that might be because treasuries have done so well. the correlation between stocks and treasuries has really lessened in the past few days, which i think speaks to the fact that trade is back in the driver seat. bad fory, it is equities, good for bonds. scarlet: thank you very much. now let's get you wake up check of the latest business flash headlines. shares of general electric falling for a fifth straight day, the longest losing streak since august. they are disappointed about the lack of a definite type -- definite timeline for the business to go public. starbucks has a problem. the chain is replicating to fast growth in china and as a result is cannibalizing sales. starbucks warned again that sales could rise as little as 1% this fiscal year. the cfo says the company has picked up the pace of new store development and with that comes cannibalization. he says it is intentional so they can grow total sales. twitter ceo jack dorsey is off to africa next year. he tweeted that he plans to live on the continent for 3-6 months. he hasn't

one of the things that we did at treasury and the folks at treasury still do was essentially financial diplomacy. we would go around the world and we would meet with principally financial institutions but others as well in private, you know, behind closed doors and we would say to them, we know what you're doing, here's how we know what you're doing. with some help from the intelligence community on this. if you keep it up, this is what we're going to do to you. and we did that with large financial institutions. we did it with small financial institutions. and it was enormously effective because it was a clear, consistent, credible, message that was being also provided by others in the international community. we did that at a much more macro level with the government of iran. we were saying to the iranian government throughout that episode, we're going to increase the sanctions on you, you know, with some help from congress, with some help from sanctions we would devise, but we're going to increase the sanctions on you unless you negotiate in a serious manner the nuclear program. the

well it can't control the treasury and this is the real problem not only does it not have a treasury through to backstop this happens with the united states treasury and backstop but the federal reserve it also. doesn't have any control over the fiscal policy where you can draw getting out and saying in place tonight the economy will with fiscal policy but of course the fiscal rules are constrained by the the 3 percent limit on deficits and the 60 percent but on government on government debt which means that you know economy can seem like it's a profit state that by having all public sector spending so a lot of the point you made about it being external factors that's false it's fundamentally internal factors that the sonnet the a you was always day flash mary and the prediction that legally made back and not enough money to win the crossest these years does not make it worse has been well and truly borne out by the facts and now state of finance ministers are now pushing back against the c.p.p. for their negative rates saying it is having a detrimental impact on. beings and pension

treasury adopted this symbol. this is the minute man soldier. this is from the revolutionary war days and they said, you know, we've got to impression e press upon the american people that this world war ii that we are involved in now is just as important a fight for freedom and independence as was the revolutionary war in 1776. so if you want to be in that grand tradition of the patriots of 1776, then you've got to do your part for defense and buy united states savings bonds as stamps. this was the very prevalent symbol around the country, advertising the need to buy savings bonds as stamps. it even made its way into the first issue of wonder woman's own magazine. this is a panel from a story from the end of the story of one of the adventures wonder woman had in wonder woman number 1 f. and wonder woman says, when you see these minuteman posters, boys and girls, remember, he's talking to you. so, yes, the super heros that we have been spending a number of days in this class researching the origins of and getting into the background of, they, to

a lot of pressure on the treasury and the treasury secretary steven mnuchin to do more investigating as to what happened there. f soccer announcing they will do that investigation. scarlet: let's get a look at what stories are trending across the bloomberg universe. schroders is cutting hundreds of jobs around the world as it grapples with a downturn in the industry. firm has reportedly been eliminating positions for several weeks. the cuts will affect about 5% of its workforce. on bloomberg.com there is a not asn a macro fund popular as the billionaire himself. even though his 600 page book for successful principles has sold 2.2 million copies, is macro fund has lagged behind the past eight years in roughly 2% decline this year is shaping up to be one of his worst years on record. it is rare and money manager's stature with the public seems so at odds with the recent record as an investor. quick takes by bloomberg is reporting that retail work is riskier than factory jobs. nonfatal injuries increased for people working at a mall, a store or an outlet in 2018, making them menu -- mor

and 50% in treasuries. that is concentration risk, isn't it? >> it is a very interesting report and it does address some of the concerns in the market and the disruption to the market wasn't just a one-off or temporary issue. it is here again and it could be something that is more of a systemic rather than a sort of short-lived issue. how is the fed going to address this? further balance sheet expansion, maybe there needs to be some change in regulation. all of these will be features of the debate going forward. manus: stay with us. sarah human from standard chartered. can europe find a way out of japanification? the outlook of someone with rather unfashionable take on the argument. this is bloomberg. ♪ this is bloomberg. ♪ manus: this is bloomberg daybreak: europe. europe -- can europe save itself from japanification? many investors think it is unlikely to find an escape route anytime soon. >> this morning's call comes from jefferies analyst geoff -- david owens. he says it might be unfashionable to say this but the euro area is not going

-- s&p futures and treasuries. we have had a decent rally across equity markets going into year end and people are more comfortable. that does it mean to say we can to say we can't get some very unusual trading. earlier int period the day before asia gets full liquidity when people try to exploit these moves. it is on people's minds, the risk that during this illiquid. when we comeeriod back in january, we might see someone trying to push dollar-yen around. push dollar-yen around. there are not that many big players around to hold it in check. matt: we also have the chinese pmi data to talk about. how did that look today? mark: i think generally, a sense of relief early. this is one of the most important data points in the chinese calendar. it came in slightly better than expected, 50.2, still holding above that 50 line. the other, composite and services, were slightly below forecast but they were still pretty decent. all in all, i think people are pretty relieved and quite interested to hear now what president xi

well it can't control the treasury and this is the real problem not only does it not have a treasury through to backstop this happens with the united states treasury and backstop but the federal reserve it also. doesn't have any control over the fiscal policy where you can drive is not the same place to me like the economy will with fiscal policy but of course the fiscal rules are constrained by the the 3 percent limit on deficits and the 60 percent but on government on government debt which means that you know economy can seem like it's prada say that by having all obvious excess spending so a lot of the point you made about it being external factors that's false it's fundamentally internal factors that the sonnet the a you was always de flash mary and the prediction that legally made back and not enough money to win the crossest these years does not make it worse has been well and truly blown out on the facts and now instead of finance ministers are now pushing back against the c.p.p. for their negative rates saying it is having a detrimental impact on say. beings and pension syste

this the united states treasury. reserve it also. doesn't have any control over the fiscal policy where you can drive is not the same place tonight the economy all with the school policy but of course that the school rules are constrained by the the straightest and limits on deficits and the 60 percent but on government on government debt which means that she no economy can stimulate its profit state by having all obvious that the spending so a lot of the point you made about it being external factors that's false it's fundamentally internal factors that the sonnet the a you was always de flash mary and the prediction that legally made back in 9092 when the cross of the is because it was designed to make it worse has been literally blown out of the facts and now instead of finance ministers are now pushing back against the c.p.p. for their negative rates saying it is having a detrimental impact on savings and pension systems they want to hire but you know president trump here stateside is big claiming that the fed di

i don't know that at some point we won't have those discussions but you know, treasury, we want treasury to be able to have the cash that it needs, and then we are essentially taking that as exogenous to our work, you know. there may come a time when we talk about that, but we haven't done much of that. standing repo facility, your question is what are we thinking about it? i think we are more focused frankly on the bill purchases, the year end and also the review of supervisory and regulatory issues that we're digging into. because we think, you know, these are structural things, where you could, without sacrificing safety and soundness, just allow the liquidity that is already there to flow more freely, perhaps by making fairly straightforward non-controversial changes. we think there is some of that so we're working hard and fast, but those are the things, you know, they take rule changes, it will take notice of public rule making, it will take three months and things like that. those things take time. these things that we're working on now, though, like going through year end with th

banking stocks overall higher on rising treasury yields. the whole sector doing better. j&j had good news, saying yet again, its talcum powder contains no be a asbestos in it. fda still says it does. look at that number. 67,000. what does this mean for november jobs out friday. consensus 140,000. traders day that it may be difficult, i'm sorry, 180,000. traders say it may be difficult to reach that number. oil higher today. saw inventories coming in lower than expected. the first u.s. crude weekly supply decline in six weeks. that where we saw good news there. google cofounders, big headline for the company. sergey brin, larry page, stepping down. they have been ceo and president. the two will remain on the board. they control a majority of the voting power of the company. the company's 21 years old. so big news for google. shares higher there. back to you. melissa: gerri, thank you. connell: a possible game-changer. the new york yankees teaming up with amazon to become the first major league baseball team to stream games directly to viewers without a cable subscription.

well it can't control the treasury and this is the real problem not only does it not have a treasury through to backstop this happens with the united states treasury and backstop but the federal reserve it also. doesn't have any control over the fiscal policy where you can drive is not the same place to light the economy will with fiscal policy but of course the fiscal rules are constrained by the the 3 percent limit on deficits and the 60 percent but on government on government debt which means that bush you know economy can seem like it's a profit state by having all public sector spending so a lot of the point you made about it being external factors that's false it's fundamentally internal factors that the sonnet the a you was always de flash mary and the prediction that legally made back and not entirely true that when the crossest these years does not make it worse has been well and truly borne out by the facts. instead of finance ministers are now pushing back against the. for their negative rates saying it is having a detrimental impact on savings and pension systems they wan

quite hard to see the treasury yielding up anything? it is very noticeable that the treasury is basically immune from reorganisation. there is that... tha nkfully reorganisation. there is that... thankfully the treasury saw that one off so it is very interesting to see. interesting also that if the prime minister really follows through on some of the things that are being briefed, briefings haven't a lwa ys are being briefed, briefings haven't always been the best guide to what actually happens. they do decide to dramatically reduce the number of cabinet ministers, the uk has a ludicrous number of ministers compared to others... over 100. yes, but people have found that useful as a way of rewarding people are keeping the pile t loyal because thatis keeping the pile t loyal because that is the payroll stuck —— keeping the party loyal. down the line, if he has taken some rough and tumble blows he might want to find some of those jobs and certainly david cameron found in the coalition that some of his biggest opponents were people in t

steven mnuchin treasury secretary. thank you for being with us. up next, the radical left and ability to sell impeachment to the american people. it turns up there not very persuasive. we will have that and much more right after this break. >> new polls show, support for the dems sham impeachment. cnn finding opposition to impeachment running a 47%, those two-point higher than those who favor pretrade 51% opposition to impeachment and other polls show stronger opposition to impeachment. investigative journalist john solomon is not reporting the flagging suspicious payments to hunter biden as far back as 2016 and asked ukraine to investigate. that request came just before joe biden in the firing of the ukrainian prosecutor overseeing burisma corporation investigation. joining us tonight poison prize-winning new york post columnist and fox business contributor, michael goodman and great american himself, wor are radio marks a simone. these polls on appeasement, the democrats have got to be got sick. they spent all this time running the scheme on the

mindful of the fact you have worked in treasury in different capacities in a legal capacity. important leadership role inur e intelligence community thinking about many aspects of the work of that community. around what it should be and the methodology about how to communicate with that. grounding this in the real world grounding. i would appreciate that. >> sure. thank you to liz and jordan for involving me in this project. i will give you some real-world examples of how we use sanctions for signaling purposes. can i take a step back to try to put this in a conceptual frame which i will admit while i was a treasury never did. i think the broader theoretical underpinning of how we were aing sanctions, in the way we are thinking about it today. escalation ladder. a little bit of an overstatement. we never thought about it. we did not think about it in a particularly rigorous way tied to a sort of broader framework to guide our actions. i think this paper, one of the important contributions is to say that this whole area of sanctions broader or an economic course of tools are e

in both our repo operations and treasury build operations are ready to mitigate risks. we think the pressures appear manageable and we stand ready to adjust the details of our operations as necessary to keep the federal funds rate in that target range our strategy has been essentially the key to our strategy is to supply reserves in the near term through both overnight and term repo, at the same time, we're raising the underlying level of reserves through bill purchases we'll take that now. we said that we were willing to adapt our strategy, we're not at this place, but if it becomes appropriate for us to purchase other short term coupon securities, we would be prepared to do that, if the need arises we don't -- we're not in that place. it looks like the bills -- those bill purchases are going well, just according to expectations i mean, the other thing i'll say is that we're in very regular contact with market participants all the time we'll be providing, continuing that and we're prepared to adjust our tactics we're focused on year end as well to adjust our operations

treasuries leading equities or equities weeding treasuries? katerina: treasuries historically have been a fantastic hedge to look at where equities are heading. in the short timeframe, this inverted relationship we are accustomed to may not happen, but in the longer time, it is very much in place. joe: i don't know what the ,atest number is on the 10-year but how significantly should investors be exposed to bonds? katerina: they play such an important role in risk allocation. we tell investors not to get divested on bonds, be mindful of the income that they need. income gives them persistent cash flow, a nice, diversified portfolio, fixed income should be in place. it shouldn't be just treasuries or municipal or corporate bonds. it should be a well-crafted portfolio of all the above, strategic portfolio, especially in this market. taylor: i love your notes on limiting portfolio risk. looking at risk parity strategies for example. what are you doing to limit risk in the portfolio? we are adding high-quality dividend paying stocks, insuring cash

one of the things that we did at treasury and the folks at treasury still do was essentially financial diplomacy. we would go around the world and we would meet with principally financial institutions but others as well in private, you know, behind closed doors and we would say to them, we know what you're doing, here's how we know what you're doing. with some help from the intelligence community on this. if you keep it up, this is what we're going to do to you. and we did that with large financial institutions. we did it with small financial institutions. and it was enormously effective because it was a clear, consistent, credible, message that was being also provided by others in the international community. we did that at a much more macro level with the government of iran. we were saying to the iranian government throughout that episode, we're going to increase the sanctions on you, you know, with some help from congress, with some help from sanctions we would devise, but we're going to increase the sanctions on you unless you negotiate in a serious manner the nuke rar program. the

the times is talking about the northern categories, treasury to rip up northern categories, treasury to rip up rules in northern cash boost.|j am sure either of us can talk about it and am sure either of us can talk about itandi am sure either of us can talk about it and i know nigel has a certain inside into this... both of you. .. we can talk over each other. no, let's not do that, we have had enough of that for the last year or so. enough of that for the last year or so. the treasury is planning to change the way it works out how much public money goes into a certain region in order to make sure that the north, where the tories have won a whole lot of seeds from the labour party, would get a fair share of theirfunding for party, would get a fair share of their funding for infrastructure and investment. —— seats. resources allocated on the basis of improving well—being, not just productivity, which is what they are at the moment. the gross value added. interestingly, there was a paper published last year by academics at cambridge and manchester university who say it is the mo

treasury secretary steven ma chew chin. secretary, always good to see you. does anything change for your economic agenda, given that the president has been impeached >> first of all it's great to be here with you, and the answer is absolutely no. it's been a terrific end of the year for the president's economic programs. we're looking forward to usmca being passed today the china phase one agreement, and the president's approval and passage of the appropriations bill which is very important to our military, and has lots of important policy wins for the president. >> yes, it was an interesting end here, as impeachment went on we actually seemed to get some bipartisan work done by the congress were you sursurprised? >> no, i wasn't. the impeachment is really a partisan issue and you know, these are very important economic issues that have bipartisan support that are going to be terrific for our workers and our companies, and this is just, this is what the president has been delivering on the economy, and we look forward to all these year-end wins >> let's talk

for one, there is a treasury auction today. in thesh balance sheet treasury starts to build up like it did in september, we could see cash drain from the system making it harder to fund daily operations. it is not just the treasury auction. we also have a corporate tax payment due. what is different this time is one, it is december. the seasonal illiquidity in the market and the treasury has started its operation of injecting half a trillion dollars into the system by year end. there is a 32 day operation starting today. the question swirling around fed doneday is has the enough to relieve the stress in the repo market? anna: we approach the start of the european trading day. time to check in on other news. bank of america is out with a 2020.ld call for annmarie hordern has more. >> they are calling it a melt up for risk assets of are the first order of next year. strategists say they can see the s&p 500 reaching over 3000 on the third day of the third month of next year. a 5% increase from friday's close. inc. of america says

one thing we do in the treasury is accepting financial diplomacy. we would go around and meet with principal financial institutions but others as well in private. behind closed doors. we would say -- we know what you are doing. here is how we know. and getting some help from the intelligence community. if you keep it up, this is what we will do to you. did this with large financial institutions and small ones. and it was enormously effective. the was a clear, consistent, credible move.nd we did that at a much more macro level with the government of iran. we are going to increase the sanctions on you with help from congress. we are going to increase the sanctions on you unless you negotiate in a serious manner your nuclear program. the number of threats -- the number of times -- and it was not just me. it went across the administration. very clear, consistent, and credible message being delivered and it had an effect. it was also complemented by others in the international national security community. that sends a clear signal about the escalation of

with treasuries as well, you can see the rise and treasury yields is quickly being reversed. it has dropped substantially yesterday. they are taking the rest of the world down with it. you can expect they continue to play a big role as a major haven. you can expect treasuries to be very much in place over the next couple of weeks. if it goes on long enough, if things get really bad between the u.s. and china, people will be looking at gold again because that is the ultimate haven. it is early days but the fact gold has gone back below 1500, means it is not skewed towards the bullish side it would have seen three or four months ago. gold is something that can come back into play. some assets that have been on the sidelines for the past several weeks can come back into the picture if december turns into the kind of situation we saw last year. haidi: mark cranfield there. plenty more market coverage throughout the day as risk comes roaring back into the session. we have an exquisite interview with wealth management cohead boris calardy joining us. joining us now is claire reid.

treasury minucci and says if we are not careful with sanctions people will start using other currencies and there is no other currency money more solid and with a great history than gold so the paper bugs call them really in a moment back when gordon brown the chancellor of the exchequer in the u.k. when he was that that role sold off half the country's gold around to $2.00 and $50.00 an ounce they actually believe that having that rolling that over into treasury bills or paper was a superior idea that of course even if you're only getting half a percent on your paper treasury paper is better than any return the gold while since the time we've seen actually paper go into negative rates in europe so they're making of rates obviously are the last than even a 0 percent rate and the appreciation of gold against all this paper money would also make that argument quite dead on arrival because it's outperforming all these other paper assets yet but as we have said the us weaponize and the dollar weaponized in this which sifts swift system that that would cause you can only use that once perhap

treasury get involved and even. troll and create certain outcomes and so there's a desire to create some insulation from the u.s. treasury and their ability to manipulate or control financial circumstances gold again represents financial freedom both for the individual investor as well 'd as for the central banker who wants some distance from us from u.s. policies now another diversification away from the us talk a little bit about bitcoin big quine is what we call digital gold but that digital gold needs to be stored and i kept a wallet and right now there has been another clamp down recently google removed. rouser mehta mask from its android app store and now apple may also forced to remove their data browser feature from its crypto while app as well so this is really unfortunate to see and as web 3 is in direct competition with google and apple should we expect this continued censorship on metamath and other dapper dollars. kristie i think the consistent theme from talking about the e.c.b. to talking about google

treasury will like that either david mckelvey mcavennie financial thank you so much . thank you christine. satchell by this time you can catch boom bust on you to dot com must stand next time. and when you. look at that is. a bot. just show. financial. money laundering 1st visit this is just a different. something you're going to america something over the cayman island to do all these banks are complicit in there just. to do some serious money laundering ok let's see how we did while we got a nice watch for max and for stacy oh beautiful jewelry how. do you know what money laundering is highly illegal here for a watch guys record. for headline stories this. stormed the u.s. embassy and after last week's deadly american airstrikes in a rug diplomatic stuff including the ambassador reportedly been evacuated from the compound. also ahead. claims he's dying in a u.k. prison with sedatives subjected to 23 hours of solitary confinement every day we hear from his friend who was told the chilling details in a call from the wiki leaks co-founder on christmas eve. because he sp

treasury minucci and says if we are not careful with sanctions people will start using other currencies and there is no other currency money more solid and with a great history than gold so the paper bugs call them really a moment back when gordon brown the chancellor of the exchequer in the u.k. when he was that that role sold off half the country's gold around to $2.00 and $50.00 an ounce they actually believe that having that rolling that over into treasury bills or paper was a superior idea that of course even if you're only getting half a percent on your paper treasury paper is better than getting any return the goal well since the time we've seen actually paper go into negative rates in europe so they're made of rates obviously are the last than even a 0 percent rate and the appreciation. gold against all this paper money would also make that argument quite dead on arrival because it's outperforming all these other paper assets yeah but as we have said the us weaponize and the dollar weaponized in the swiss sifts swift system that that would cause you could only use that once perh

problem not only does it not have the treasury to backstop this happens with the united states treasury and backstop the federal reserve it also. doesn't have any control over the fiscal policy where you can drive is not the same place tonight the economy and all with fiscal policy but of course the disco rules are constrained by the the straight ascent limit on deficits and the 60 percent is on government on government debt which means that she no economy can seem like it's a profit state by having all obvious that the spending so a lot of the point you made about it being external factors that's false it's fundamentally internal factors that the sonnet the was always de flash mary and the prediction that legally made back in $9092.00 when the crossest the is because it was designed to make it worse has been literally blown out of the facts and now instead of finance ministers are now pushing back against the c.p. for their negative rates saying it is having a detrimental impact on savings and pension systems they want to hire but you know president trump here stateside is big claiming

that is a wider issue of the treasury and the department for transport will have to grapple with. just looking at the statement the northern powerhouse put out, it appears your vice chair, lord jim o'neill, appears your vice chair, lord jim 0'neill, isn't entirely convinced that the government will come through on this, because i quote, "i hope it is real." i think he is right about that. we have had previous conservative ministers under theresa may who have made suggestions they want to do this. we have very clear if this does come off on have very clear if this does come offona have very clear if this does come off on a budget alongside a green light for the northern powerhouse rail, that would be a strong signal the government had changed direction and was taking these issues seriously. i don't think we can take the musings of dominic cummings on the musings of dominic cummings on the front page of the times at face value. we have got to see the detail behind it. i do believe that the chief secretary is very serious and if they are given the support needed from the wider cabine

treasury minucci and says if we are not careful with sanctions people will start using other currencies and there is no other currency money more solid and with a great history than gold so the paper bugs call them really a moment back when gordon brown the chancellor of the exchequer in the u.k. when he was that that role sold off half the country's gold around 2. $50.00 an ounce they actually believe that having that rolling out over into treasury bills or paper was a superior idea that of course even if you're only getting half a percent on your paper treasury paper is better than not getting any return the gold well sent us and we've seen actually paper go into negative rates in europe so their negative rates obviously are the last even 0 percent rate and the appreciation of gold against all this paper money would also make that argument quite you know that on arrival because it's outperforming all these other paper assets yeah but as we have said the u.s. weaponized and the dollar weaponized in the swift swift system that that would cause all truth and you could only use that once

treasury minucci and says if we are not careful with sanctions people will start using other currencies and there is no other currency money more solid and with a great history than gold so the paper bugs call them really in a moment back when gordon brown the chancellor of the exchequer in the u.k. when he was that that role sold off half the country's gold around to $2.00 and $50.00 an ounce they actually believe that having that rolling that over into treasury bills or paper was a superior idea that of course even if you're only getting half a percent on your paper treasury paper is better than not getting any return on the gold while since the time we've seen actually paper going to make it of rates in europe so they are making of rates obviously or the last than even a 0 percent rate and the appreciation of gold against all this paper money would also make that argument quite dead on arrival because it's outperforming all these other paper assets yet but as we have said the us weaponize and the dollar weaponized in this which sifts swift system that that would cause you could only

you have in the red zone there goldman sachs as part of treasury department leadership. if you go back during the obama era, we checked and you had goldman sachs former executives running treasury then. back to bush, also goldman sachs. you go back to bill clinton, also goldman sachs. in a warren administration, would there be a former goldman sachs executive running the treasury department? >> nope. >> is that a pledge? >> absolutely. >> that's a litmus test. >> absolutely. let me tell you why. the problem we've got right now is a revolving door right now between wall street and washington that causes everybody to be on guess for, wait a minute, the next time this treasury secretary puts forward a proposal, is it because it really helps the economy, helps the american consumer, helps the american homeowner, or is it because it helps their former and possibly future employer? let's just do for one second the gary cohn example, another goldman sachs. >> sure. >> so trump appoints gary cohn, he leaves goldman sachs. gary cohn is going to have exactly one job, and that is t

treasury get involved and even. troll and create certain outcomes and so there's a desire to create some insulation from the u.s. treasury and their ability to manipulate or control financial circumstances gold again represents financial freedom both for the individual investor as well as for the central banker who wants some distance from us from u.s. policies now another diversification away from the us talk a little bit about bitcoin big quine is what we call digital gold but that digital gold needs to be stored and i kept a wallet and right now there has been another clamp down recently google removed. rouser mehta mask from its android app store and now apple may also forced to remove their data browser feature from its while app as well so this is really unfortunate to see and as web 3 is in direct competition with google and apple should we expect this continued censorship on metamath and other dapper dollars. kristie i think the consistent theme from talking about the e.c.b. to talking about google is contro

treasury will like that either david mckelvey mcavennie financial thank you so much . thank you christine. by this time you can catch boom bust on you to dot com must stand next time. that's geysers financial survival guide liquid those that you can convert as quite easily. to keep in mind as it's me into a place. for. storming the u.s. embassy and after last week's deadly american airstrikes on iraq diplomatic stuff including the reportedly being evacuated from the compound. also at this hour julian claims he's dying in a u.k. prison life with 7 subjected to 23 hours of solitary confinement a day we hear from a son just friend who was told the chilling details in a call from the wiki leaks co-founder on christmas eve. do you rang me because he spent christmas with me and my family in 2010.

treasury minucci and says if we are not careful with sanctions people will start using other currencies and there is no other currency money more solid and with a great history than gold so the paper bugs call them really in a moment back when gordon brown the chancellor of the exchequer in the u.k. when he was that at that role sold off half the country's gold around to $2.00 and $50.00 an ounce they actually believe that having that rolling that over into treasury bills or paper was a superior idea that of course even if you're only getting half a percent on your paper treasury paper is better than getting any return the goal well since the time we've seen actually paper going to make it of rates in europe so they're made of rates obviously are the last than even a 0 percent rate and the appreciation of gold against all this paper money would also make that argument quite dead on arrival because it's outperforming all these other paper assets yet but as we have. the u.s. weaponized and the dollar weaponized in a swift sifts swift system that that would cause you could only use that on

on your paper treasury paper is better than getting any return the goal well since the time we've seen actually paper going to make it of rates in europe so they are making of rates obviously or the last even a 0 percent rate and the appreciation of gold against all this paper money would also make that argument quite dead on arrival because it's outperforming all these other paper assets yet but as we have said the u.s. weaponized and the dollar weaponized in this which sifts the swift system that that would cause you can only use that once perhaps twice and ease it twice you're gone or this thing is you're not going to be able to come up the turn of stephen utian is now agreeing with us he's obviously watching for it this is what he's been doing because he's obviously saying this publicly when we said it we get called like bad names but here steve is agreeing with us so we've been proven right on that again you know switzerland by the way also you have to look at that chart of gold versus s. and p. 500 everybody in the mainstream media things switzerland is so genius to sell all thei

treasury minucci and says if we are not careful with sanctions people will start using other currencies and there is no other currency money more solid and with a great history than gold so the paper bugs call them really in a moment back when gordon brown the chancellor of the exchequer in the u.k. when he was that that role sold off half the country's gold around to $2.00 and $50.00 an ounce they actually believe that having that rolling that over into treasury bills or paper was a superior idea that of course even if you're only getting half a percent on your paper treasury paper is better than any return on the gold well since the time we've seen actually paper going to make it of rates in europe so they're made of rates obviously are the last than even a 0 percent rate and the appreciation of gold against all this paper money would also make that argument quite dead on arrival because it's outperforming all these other paper assets yet but as we have said the us weaponize and the dollar weaponized in this which sifts the swift system that that would cause you can only use that once

treasury yields in the region of 1.8%, we don't think there is much value holding overweight treasuries at this point in the cycle. everything depends on whether your view is you see a recession in 20's -- 2020. that is not our base case, i'll but we are late cycle. we are underweight bonds, so we are holding more cash, just waiting for the right time to increase equity allocations and doing risk assets again. nejra: when the time comes, which equities look best? daryl: for global markets, u.s. markets look pretty well priced in. european markets have potential to rebound. these are your cyclical markets. european markets are export driven. everything depends on whether trade normalizes a bit. that depends on whether the phase one deal gets done. we think asian markets have the potential to rebound. one of the things we are tracking on a micro level is we are seeing the likes of samsung providing better guidance for 2020, which suggests the tech cycle is bottoming out to an extent and could improve into 2020. part of that has been driven by 5g rollout happening in most of the markets in

treasury get involved and even control and create certain outcomes and so there's a desire to create some insulation from the u.s. treasury and their ability to manipulate or control financial circumstances gold again represents financial freedom both for the individual investor as well as for the central banker who wants some distance from us from u.s. policies now another diversification away from the u.s. talk a little bit about bitcoin big quine is what we call digital gold but that digital gold needs to be stored and i kept a wallet and right now there has been another clamp down recently google removed. rouser mehta mask from its android app store and now apple may also force quine base to remove their data browser feature from its crypto while app as well so this is really unfortunate to see and as web 3 is in direct competition with google and apple should we expect this continued censorship on metamath and other dapper. kristie i think the consistent theme from talking about the e.c.b. to talking about google is control the word is controlling who is going to control the wor

treasury yield currently 1.945% the two-year yield 1.644%. that difference about 30-basis points wide at this stage. let's look at the asian markets. the nikkei off by about one faurter. change high down by about half a percent. looking at european trade. those markets generally green. the dax up one half of one percent. the ftse 100 up 0.1% as well merck has received fda approval for the ebola vaccine. those shares moving to the upside there check out what is happening overall. america shares up in the extended hours of trade. reportedly near a deal to buy a minority stake in mira max expected to give viacom the right to distribute. the wawa chain says a data breach may have been affected. malware had been discovered. wawa is unaware of any unauthorized purchases and affect the all 850 stores in pennsylvania, new jersey, dell, maryland, virginia, washington, d.c. and florida so if you are a wawa customer or regular, keep an eye out >>> the final democratic debate took place last night and saw candidates tackle things ranging from the impeach

steven mnuchin treasury secretary. thank you for being with us. up next, the radical left and ability to sell impeachment to the american people. it turns up there not very persuasive. we will have that and much more right after this break. in a world where everything gets a sequel. it's finally time for... geico sequels! classic geico heroes, starring in six new commercials, with jaw-dropping savings. vote for your favorites at: geico.com/sequels ahhh, which way do i go?! i don't know, i'm voting for our sequels. with geico, the savings keep on going to a screen near you. not the leg! you dang woodchucks! geico sequels. vote and enter to win today! mornings were made for better things than rheumatoid arthritis or psoriatic arthritis. when considering another treatment, ask about xeljanz xr, a once-daily pill for adults with moderate to severe rheumatoid arthritis or active psoriatic arthritis for whom methotrexate did not work well enough. it can reduce pain, swelling, and significantly improve physical function. xeljanz can lower your ability to

every quarter the markets have , treasuries have been positive. even if the source was caused by higher treasury yield, they come back in. that is one of the best hedges to have in a portfolio, which is risk in. the other thing i have not seen investors talking about is buying domestic hong kong stocks, which are very cheap, the growth outlook is very weak. the markets have a habit of running ahead of the economic numbers. you never know. you could see a change next year. if the government start expanding the fiscal balance sheet. they have the ability to do that. haslinda: as a stance now, would you say the biggest risk for the market remains an escalation of the u.s.-china trade war? >> it is on the list, for sure. we have seen both sides eager to strike a deal. they have not been able to find the deal yet. there is always this element. there could be a slip. is the risk. geopolitics are risks. significantly higher oil prices will also be a risk. oil prices have started rallying. another 10, 15%, they would start hurting pockets of the economy.

treasury. however, if the yield curve that makes this trade means thele, which back and thep reinvestment into u.s. treasury markets, that will put downward pressure on the treasury yields. david: let's simplify things. december 15, tariffs take place. you assume the tariffs would kick in. if not, what happens to tariff markets? >> it is definitely risk off. so, the reason i set the barrier chineseyou know the leaders put a lot of political capital into this trade deal, so the reason i just said will make this treaty more costly for chinese leaders. i want to pick up on what you are saying about the japanese economy. overall, you would not have thoughts of given some of the data. this is kind of a big question in a funny sort of way. you have these economies getting rich. then it probably keeps on getting older. the point is is this a unique phenomenon that requires unique things to deal with because it is special in that sense and the economy has got rich? a very long-term picture. hard for ja

what is the treasury bill supply going to be? it is going to be cut. treasury tends to move negative as a seasonal factor with tax receipts, and people are going, well, if the fed is going to buy $60 billion a month in treasury bills, will they have enough to buy? will be one of these opportunities for them to move into short dated coupons? david: what about supply. we continue -- what about supply? we continue to borrow at a very fast rate. alex: it all depends. with the fed coming in and buying it, it gives the treasury a bit of breathing room so they are not having to increase the supply as much. people were making calls about, by the end of next year, we should see treasury early having to expand the supply, but i think right now the fed gives them a bit of breathing room with these asset purchases. david: but don't call it quantitative easing. alex: exactly. [laughter] david: what about inflation? does it affect the curve at this point? alex: not really. it is muddling along, but it is really hard to say. everyone is really taking it one data poin