chair yellen: no. rep. capuano: do you own any stock in any banks? chair yellen: no. rep. capuano: do any of your immediate family members own any banks or stock index? banks? chair yellen: no. rep. capuano: therefore you have note you molly men in to anybody at the federal reserve. chair yellen: we have a stringent set of ethics requirements. rep. capuano: so you think it would be unethical if any of your high-ranking staff or any of your family members were to financially benefit from the work that you do? chair yellen: it would be a conflict of interest for us . rep. capuano: that is good to hear because apparently not everybody agrees with that approach. to me it has been a little troubling. i'm glad to know that you and your staff and your family have high ethical values. i wish everyone tried to do that , but i guess that's another discussion for another day. i know there have been a lot of concerns about making these banks get rid of all these regulations so they can get rid of all that capital money

thank you, chair yellen. as the nation's leading economist, can you discuss how unraveling the fabric of our social safety net, such as [indiscernible] the families in poverty, eliminating access to affordable health care, eliminating the earned income child tax credit, cutting unemployment benefits and cutting funding for housing assisted programs could impact the short-term and long-term health of our workforce and our economy? could these cuts do permanent damage to our economy's ability to fillits potential -- its potential? how they impact equality and the chance families have to escape poverty? chair yellen: i do not want to give detailed guidance to congress on these particular programs, but i would say that the trend of rising inequality and the fact that although low income households have done well over the last couple of years has improvednomy relative to before the crisis and even looking back a number of decades. we have clearly based very severe problems that have left many american households s

chair yellen: thank you. allowing that process to take place, it will show the economy is doing well and the increases have been a reflection of the strength we have seen in the economy. thank you for your leadership at the federal reserve. our economy is not perfect, but has made tremendous strides since the financial crisis. it cost my million americans their jobs. these last six years have shown us how important and positive consumer protection has been to our economy. i want to ask you, health accounts for nearly 20% of u.s. , also feeling innovations in patient care, diagnostics, preventative health, research and development, cures and diseases. budgetonse to the resolution passed last month, the former director of the office of management and budget sent a letter saying the resolution would at nine five $5 trillion -- saying the resolution would add $9.5 , including a reduction in job growth in 2019. my home state is estimated to be on the top of the list as a result of a spike of the number of uninsure

janet yellen: yes. t-rex it seems to me that steps taken after the crisis with stress tests and quarterly liquidation authority and consumer financial protection bureau, it made our economy stronger and our financial system more strong. banks better capitalize and our consumers better protected. i think of those rules are removed then if the music is playing, you have to get up and dance. if the rules are removed, wall street will almost assuredly be back to the risk and rest week -- to the rescue behavior before the crisis. a couple other lines of questions if i could. recent executive action directs the secretary of treasury to the chair of the financial stability oversight council. reviewing the rules. including the fed, to determine if they are consistent with the certain core principles of the executive branch. i know the fed and other agencies who regularly review their work to make sure the rules continue to enhance onancial stability from safety and unsoundness and to protect consumers. to the e

what is the yellen trade? what do you do? , it when it comes to yellen will be when the fed will raise rates. there is rumbling that march might be on the table, or might not be on the table. it would be huge news if she hinted the fed would move in march because the markets have not gotten priced in. you will wait to see if she weighs in on the discussion of the fed reducing the size of their balance sheet or the bonds they hold. we have not heard from the big fed officials like fisher or onl dudley or janet yellen the subject. if they weigh in on that subject , that would be significant. i do not think she will on this go around. david: i feel sorry for mr. locker. should we ignore the people apart from janet yellen? extent, yes. two things seem to drive fed policy, what stanley fischer, bill dudley, janet yellen say, then what the markets price in. over the last 100 to 200 meetings, there has not been a rate hike over the last 25 years that was not priced into the market before they did it. we are at 30% right now, so it w

i talked about janet yellen, higher rates. at j.p. morgan said it is consistent with a rate hike in the first half of this year. yields at 2.48%. australia, look at the spread between the two. very quickly, big numbers falling today. we will get more details on the softbank and toshiba story. they are very close to falling to the 200 level. and the story here, the special prosecutor issued an arrest warrant. korea is on the way up, overall. rishaad: thank you, david ingles. let's go from singapore down to sydney. and we have haidi lun. flaggedjanet yellen as rate hikes ahead of the u.s. economy stays on the current course. the fed it shared told congress more increases will be appropriate if the u.s. economy fors central banks, tightening labor markets. mid-march, but jenny yellen no clear signal on exact timing. >> we have meetings every year, it means if things remain on increase our target. precisely when we would take an action, whether it is march, may, or june, i know people are focused on that. i cannot tell you -- haidi: china

yellen: some parts do. senator kennedy: so, the water is not 10 feet deep, it is 12 feet -- is not 12 feet deep, it is 10 feet deep. but you can still drown in 10 feet of water. yellen: the regulatory burden on community banks is high. i would agree with you. senator kennedy: but why? you just said they didn't do anything wrong. yellen: we think it is havetant for all firms to strong capital standards, including community banks. the most severe increases have been imposed on larger banking organizations with more complex activities. kennedy: did insufficient capital among community banks cause the meltdown in 2008? ms. yellen: no, but a number of them fail during the crisis because of the lending they took. senator kennedy: i ask your indulgence. that nobother you individual person responsible for 2008 went to jail? ms. yellen: i think those accountable should have had appropriate punishments. it has been up to the justice -- the regulators can't impose criminal sanctions. that's up to the justice , and my

as janeteing seen yellen's more hawkish testimony. joining us now is the global strategist at a private banking. aey do have you with us very lot of focus on something you have on your notes. you mentioned that it looks like the u.s. arc it may be too expensive right now -- u.s. market may be too expensive right now. i want to put this chart that we have on the bloomberg terminal. i much of you had a chance to look at it. it basically shows you the yellow line where the s&p is on a forward twelve-month ratio. you can see that it is certainly a lot more expensive than europe. kind of up there when you are looking at japanese stock. what makes you say it is too expensive right now? there are ank couple reasons. first, we think there was talk about the fact that the fed could speed up the pace of rate hikes. this is one of the reasons for which u.s. equity market could suffer. good news has been priced in by the market. they have already recovered quite significantly. we also need to recover in terms of earnings growth. there is more val

yellen, which one is it? how have our banks done in comparison to their foreign competitors since we put our new rules in place? ms. yellen: so, i don't have all the numbers at my fingertips but i believe our banks are more profitable -- as i mentioned, they have higher market values relative to their book values and they are capturing market share from european banks. banksl capitalize ,egarded as sound and strong entering a competitive it a ditch on those banks in competing for business. >> a competitive advantage, taking clients from other banks. in fact, our banks have thrived since we passed. frank. dodd frank. literally record profits. i would like to submit for the record a recent quarterly report to show that banks of all sizes are more profitable than ever, as well as this "wall street journal" article from november entitled "u.s. banks record record profits in the third-quarter." thank you. on any issue, but especially something as important as the rules in place to stop another an inch crisis, we n

. ♪ feds: chair yellen says the risk -- supports raising rates. she warns it is unwise to wait too long. indicesins for stock closed at all-time highs. asian equities charged higher. call for closer look of the trump administration under reports of repeated contacts with russia before the election. ♪ manus: it is daybreak europe, our flagship morning show right here in the city of london. i am manus cranny. anna: i am an edwards. -- and edwards. investigated in france over subprime statements in 2007 so this going back some 10 years around the french banking story. manus: let's see where that goes. we saw the kind of penalties that have come to bear on other banking institutions around the world. it provided to the public in good faith the information available to it about its exposure. weref any underlying risks identified. the investigation focused on information released by natixis. it does not call into question other prior or subsequent communications. under investigation and france. we will keep an eye on that story as it develops through

a yellen bounce. stocks bouncing after a fed chair. >>> asset manager softbank is buying fortress. >> too quickly there. my bad. plus, today's top trending stories including rumor has it. the german shepherd pulls off a shocking comeback to win the best in show. the details of that straight ahead. it is wednesday, february 15th, 2017. you're watching "worldwide exchange" on cnbc. ♪ ♪ >>> good morning. very warm welcome to world wide exchange here on cnbc. court, great to have you with us. >> good to be here. team is on point with the music. "rumor has it." >> they always are. >> good team. let's check on global markets this morning. it is 5:30 a.m. here on the east coast. let's take a look at futures. we were trending higher all morning to continue yesterday's rally. it looks to be the same way here in the midpoint of the show. the dow jones industrial average if it were to open it would be called higher. s&p up by 2 and nasdaq up by 4 as janet yellen heads back to capitol hill for more testimony.

fed chair janet yellen heads to capitol hill. the stakes for the global market straight ahead. >>> breaking overnight, michael flynn resigns as national security adviser. the full story coming up. >>> and apple shares close at an all-time high. we'll hear from a top executive on what's next for the tech giant. it's tuesday, february 14, 2017. happy valentine's day. "worldwide exchange" begins right now. ♪ >> good morning. welcome to "worldwide exchange" here on cnbc. i'm wilfred frost along with seema mody. good morning. happy valentine's day. i wore a red tie. what is this? >> my personality will shine today, how about that? >> always does. but still, you could have given me a little bit of valentine's day love. great to have you with us. let's check in on the global market action. futures at this hour following another record breaking day for all of the manger indices yesterday not just hitting record highs, some momentum building, five positive sessions in a row for the dow and the nasdaq. three in a row -- for the s&p and t

joe: let's bring in the news of the day, janet yellen. what was your big take away from the trader perspective, what is the -- evolutionary, not revolutionary. if you look at her communications for the last 6-12 months, she has tilted. you are alluded to the risks of waiting too long to move and the potential downside of financial stability and inflation. a year ago, six months ago, there was a lot more emphasis on what if we go too soon or too far, and that was notably absent from the testimony, so from that perspective, i think what we can take from it is obviously she wants to go. whether she goes in march is an open question. joe: we have a fed funds futures chart here. what are they telling us? >> it tells you there has been a lot of noise and not a lot of signal this year. you can see that last rise up to of two thirds of the way through the chart, that was around the time of the december fomc meeting, and since then, we have been range bound. this is the fed funds contract for january 20 18, which represents expectations for fed fu

what do you expect from janet yellen? >> the reality is she should keep march open and if she's brave, do in march. >> do you think she will be brave? what's the factor that will determine whether we see three or two hikes this year? >> our sense is that we'll see four hikes this year. >> four?ggressive now, but we have not seen the phenomenal tax plan to come, and that's likely to be very addictive when you look at growth. tax plans work quickly for consumers, corporations, when you look at gdp in the u.s., the reality is the risk is to the upside. considerably to the upside. the market has not got that yet. so, we could well be in a scenario where we see four rate hikes this year, which will catch the market unawarement there is some concern that the phenomenal tax plan, the reform that the white house is looking towar towards, it could get overshadowed if we look at a protectionist measure. that has not been the overriding message, but do you think investors still need to protect themselves? >> i think you're right. ma

good to see you chair yellen. the 2008 crisis cost millions of people their jobs, homes, and savings. in reaction, congress passed the dodd frank act that would keep big banks from flowing up the economy again. president trump called dodd frank a disaster and said he would dismantle it. he issued an executive order on financial regulation. he put steve mnuchin and gary cohen, who have a combined 42 years at goldman sachs in charge of rewriting the rules to benefit the banks. you have looked at the data for the economy and financial markets. i want to follow up on senator brown's questions and get your take on some of the administrations main reasons for calling it a disaster. he said he hoped to "cut a lot out of dodd frank" because "friends of mine with nice businesses can't borrow money." i'm aware of the small business survey you sited earlier, since dodd frank was enacted in 2010? >> well, cni lending at this point has grown and it exceeds after declining, it exceeds the 2008 peak. the same is true for total l

what did we learn from janet yellen? she is ready to go despite having much of an idea of what is.p's economic plan stephen: she has obviously expressed concern about market expectations for march, and rick -- rate hikes in general falling too low. i think that is one of the main things yellen was trying to get out in front of yesterday. march did slipt too low and they should be close or50/50, rather than 80/20, something like that. the bottom line is that when faced with the uncertainty of trump, they are still faced potentially with a sea change in fiscal policy. they do not want to fall behind the curve. two of the things that have happened since the crisis is that capital investment in the u.s. has been very weak, and so has productivity growth. those things could change materially as a result of fiscal policy. the delta is potentially huge. productivity, a change for the better, right? how does fiscal policy automatically impact productivity? stephen: fiscal policy and changes to the tax code -- and more importantl

that chair janet yellen there. to brighten up the conversation, we have the global ratings state economist, thank you for coming on the show, i was reading the note from jpmorgan. they describe yellen's comments as up need, consistent with a rate hike in the first half. you have always said the fed has got it wrong. what did you make of her latest statements? >> it confirms she is very cautious. she does not want to show her cards. when you listen to the statement she broadcast i think on one side you don't want to go into speculation, on the other side we have heard a lot of pledges during the campaign. the bond selloff after the presidential elections was based on the assumption of a very large fiscal stimulus that would be injected by the new president in 2017, 2018. at least 1% of gdp, i would say. little note, there is a uncertainty as the red -- direction of the policies of the u.s.. that to me is the only uncertainty. yousef: speaking of the strength of the u.s. economy, i have this chart am a which shows wh

yellen not giving any ground. here's the back-and-forth with mr. high zynga from michigan and the chair. >> isn't it not true if we hoo throw out of the we watch a faster, steepers recovery. >> by dirt -- >> did you use the word unreasonable. >> the time of the gentleman has expired. >> that's what it comes down to, the argument from the republicans that dodd/flank and other regulations, yellen would later agree she is concerned about the regulatory burden just would would not agree as the general theory of the case that it's holding bat the economy. carl? >> hard to tell if it's a testimony or debate. >> yeah, exactly. it's a bit of both. >> steve, thanks. >>> when we return after a break, the president meeting with israeli prime minister benjamin netanyahu today, "squawk alley lotion will continue in a moment. e ak a so , yourinances, yo futur w dodo sol this? u d't.utur partner am that and une 500,nts aniver insso to person,n, be ron,e'reuilding erstem veo be? partner am that and une 500,nts wher qlity flor qnty d elli. erchefand fasrkog toake r

janet yellen takes the stand. and she tells congress that the fed is on a path towards rate hikes regardless of what the trump administration does. and markets react. gained twoextends is and 11 state, the longest winning streak since 2012, as the trump trade continues. welcome to "bloomberg daybreak." jonathan ferro and alix steel are both off that we do have carol. carol: great to be with you. to see the risk trade, the trump trade, playing out. the dow futures are up a hair. we do continue to see records with the major averages. taking out the ftse come up about .5%. the dax is up. we continue to see him move up. the major averages are a little bit lower. the 10 year yield. you can see 248 is the year yield. we are watching for that testimony. below 53 dollars a barrel. : we are now by kevin cirilli. theier we talked about russians and what the communications work. the president himself is tweeting this morning on the subject, keeping it going. one of the tweets says "crimea was taken by russia during the minut

are we going to hear cautious hawk from janet yellen or another dove from janet yellen? likely: i would say were another dove. you have to remember the late january fomc statement did not really change the narrative from last year which was the outlook for gradual rate hikes. since that statement all we really had was the jobs report that was mixed. i don't see any big reason why she would feel compelled to change the narrative, at least relative to where it was in january, which, as i said, looked generally kind of dovish in his nature. are you in the market looking for to rate hikes or the fed looking for three? michael: i think the market will continue to look for two levels. -- itk what will change is not yellen. she does not have the desire to change that expectation too much. alix: all right, thank you very much, michael feroli. we will look at the data. joining us, a technical strategist from his office. i'm looking at the s&p. we are right around record highs. take a look at the bloomberg. i'm looking at the 5100 and the for themoving average s&p. extended beyond

yellen not saying anything. it was it was interesting how she got ahead of the questions that will be coming about the fiscal side. you can be sure the lawmakers will use this testimony to try to get yellen to back up their ideas of where fiscal policy should go. she said, it is too early to tell. shouldn't affect the forecast here. saying, you know what, if you're going to do it, focus on productivity growth and increasing underlying economic output. but be mindful of the fiscal situation. sarah? >> steve, thank you. we continue to watch the ten-year note yield tick higher. looks like the key phrase is at our upcoming meeting, in terms of consideration for whether it is appropriate to raise rates. also with us, as you mentioned, steve, is rick santelli. >> i'll start out with the dollar index. definitely volu definitely volatility. scaling on computers makes it look huge but we're down three in the dollar index. 1/4 move from low to high. 124. the fives were at 192 so 195. here's wheret is interesting. so there

find janet yellen as a raging hawk at this point. jon: will this be janet yellen's last year and this position? enduary of next year if the of her term. mark: what you think? what is your view on the amount of positions at president trump will be able to fill over the coming years? tom: i think change is going to come. that is the way he wants to go. that itactually say seems like a foregone conclusion. having said that is you would think yellen and trump are a marriage made in heaven. someone who really does not want to lift the rates in a material way. that would suit his overarching thesis in a huge way. i don't think there is any question that when her term is up, she will be gone. mark: any idea of who could replace her? tom: that conversation will continue to evolve. we have already heard a couple of names,. some names we heard have faded away. don't be surprised if it is a name we have not heard of. some people give kevinsome peopa beeline to that route. but i would not be surprised if there is a name we don't know. that is ki

tli be is way can do for events like janet yellen's testimony. tlib for janet yellen's testimony. she speaks to the financial services committee happening at 3:00 p.m. u.k. time. make sure you tune in or look at your tlib. this get a first word update. --hie: abn has the create reported a increase. underlying net income was stripped out one time items close to 333 million euros. that was helped by higher net interest income and lower positions set aside for risky loans. credit agricole has posted a slump in fourth-quarter profit. income dropped to 291 million euros after it bought a goodwill write-down at its french consumer banking unit. trading revenue fell comparing to a 350 million euro estimate. credit agricole's deputy ceo will be joining bloomberg for an exclusive interview at 10 past eight u.k. time. fortressis buying investment group 43 point $3 billion in cash. has agreed toiple continue leading the business which will remain based in new york. fortress will operate independently within softbank even as the japanese company establishes its own tech investments fund. gene

we will get the same kind of remark on janet yellen on tuesday and wednesday. aboutportance for the fed the fiscal uncertainty. >> i don't think anybody knows what is going to come out of the process which involves both the administration and the congress. on fiscal policy any variety of other things. at the moment, we are going strictly according to what we see as our responsibility according to the law. betty: according to the law, the fed has a dual mandate. it has to ensure that inflation does not get out of hand, and it has to make sure that jobs grow. you're looking at the bloomberg chart now. unemployment is down to 4.8%. this is close to the most optimistic fed targets for the year 2017. is much closere to the 2% target than it was. stanley fischer was also asked about donald trump wanting to roll it back. that is one of the main pillars of dodd-frank, reducing capital requirements. weekthis, remember last when mario draghi was speaking to the parliament and was dealing with issues that donald trump had proposed. you need safety from dealing with capita

chair yellen: certainly. senator shelby: as a been a number of years? chair yellen: it has been. chairman,s: madam thanks for being here today. you have a difficult position and a very important position. to working with you and promoting sound economic policy in our country. i'm sure you are familiar with the ad sector of our company -- in our country is suffering. soon, there will be 2 million farms in america for the first time since the louisiana purchase. have beenprices sinking. the ad department estimated that those who are still able to farm will see their incomes drop by 10% in 2017 and the strength of the dollars making it harder for american farmers to compete abroad. our nation's farmers are being left behind. recognizing that they need access to capital and to literally being able to borrow money at a time when we have made it more difficult to borrow money, a lot of these folks are saying an end, because they work seasonal,stry that is some years they make in some years they don't. could you suggest, number one, what is in store in economic headwinds for our economy

boostedd janet yellen to look -- dollar rally? it does set up for a strong technical open on monday. we were strong a cost of board. -- across the board. if we go into the bloomberg, we see a correlation of records. we are seeing the dow, s&p, and the nasdaq. there you are. the correlation as we go to higher ground. that is adding strength to the records we are seeing. the story of the bloomberg on the dollar. we did see it gain momentum because of trump's strong remarks about a phenomenal tax plan. more importantly, he said the details are coming into-three weeks. that sent the dollar higher. it broke the losing streak we had seen. what are investors hoping to hear from janet yellen and from earnings themselves? are looking for clues on the pace of the rate hikes. get yellen will be giving her semiannual monetary speech. for those who are following the dollars rally, which he says about whether we may or may not have a live rate -- large rate hike will be very significant. it could raise the probability to 50%. black rock has sai

janet yellen, the boss of the federal reserve , yellen, the boss of the federal reserve, and donald trump, we have been waiting for these two to clash. donald trump and his advisers, his daughter and her clothing line, this isa daughter and her clothing line, this is a serious business of the us economy. janet yellen, the head of the said, she is pulling a few shots from the president's bora. i don't think it is an attack. —— bow. any new president that is coming in and putting some really challenging economic policies on the table about how we see the us economy recovering, he is job how we see the us economy recovering, he isjob creation how we see the us economy recovering, he is job creation and so recovering, he is job creation and so on, what kind of policies he is discussing, she indicates that in this conversation. she is highlighting that there will be consequences. she is suggesting that they think about this a little bit more. india, about three hours ago, breaking this world record. 104 satellites in one shot. really, this agency is becoming a very serious player in the ra

janet yellen yellen sounded confident about the u.s. economy during her twice yearly testimony to congress, but she sounded a note of caution on the policy front warning of considerable uncertainty with trump administration and its policies. we spoke with the em ea chief economist. take a listen. >> confirmed she is very cautious. she does not want to show a cause. but if you talk of the statement with just cash, of course you don't want to go into speculation, but on the other side we thought a lot of pledges during the campaign. the selloff during the presidential elti stimulus that would be injected by the new president in 2017, 2018. at least 1% of gdp i would say. so on that note, there is a little uncertainty as to the direction of the fiscal policies in the u.s. there are uncertainties around the attitude of this stimulus. yousef: speaking of the strength of the u.s. economy, i have put up this chart here which shows what we are seeing in terms of record levels with the s&p 500 and other indices. it is not based on speculation bu

janet yellen said she is confident about the u.s. economy during her yearly testimony to congress but she warned of considerable uncertainty in the trump administration policies. we spoke to the em ea chief economist. >> she has confirmed that she is very cautious. listen to the statement you just broadcast, i think, on one side you don't want to go toward speculation, but we have heard other pledges during the campaign. we know that the bond selloff after the presidential election was based on the assumption of a very large fiscal vanilla -- stimulus that would be injected by the new president. at least 1% of gdp. note there is a little uncertainty as to the direction of the fiscal policies in the u.s. there is certainty about the magnitude of the stimulus. >> i put up this chart here that shows what we are seeing in terms of record levels in the s&p 500 is not based in speculation of possible fiscal measures but the economic barometer is moving in tandem with that. is it the fed willing to let the u.s. economy run hot before it mak

yellen will deliver they are monetary policy. on wednesday she gives the same testimony to the house financial services committee. we'll also get january retail sales, cpi, and industrial production. on thursday look out for jobless claims, housing starts, and the philly fed survey. also more than 50 companies in the s&p 500 will be reporting this week. the list includes cisco, pepsico, kraft heinz, t-moblie, marriott, and campbell's soup. >> 10% of the s&p 500. >>> today in washington president trump will meet with canadian prime minister justin trudeau. they are expected to discuss jobs, economic growth, and trade. but also to discuss things they disagree on including global trade, immigration, and refugee policies. >>> in entertainment news, adele and the late david bowie were winners at the grammy awards. landon joins us with more. >> adele and bowie taking the home five awards while chance the rapper got three for a record that was only available online and for free. beyonce one won grammy. sony resigned adele and beyonce la

we are expecting janet yellen to speak. the consensus is h she will be vague, but should we brace ourselves for a potentially hawkish message? >> the key risk for our part of the world, china especially, more on the trade front, and president trump's policies regarding tariffs and the geopolitical relationship between the u.s. and the chinese themselves. shery: how challenging isn't right now for janet yellen given that you can't really do much until you see some more certainty about china, not only china, but also donald trump's fiscal policies, his tax plans. she has her hands tied basically. >> this is the first calendar year we saw the fomc or the fed themselves going into the year without articulating or highlighting a strong growth projection, and again, back to your point, we are still unsure about the fiscal policies that president trump will put in place. from a chinese perspective, we have moved towards a monetary policy neutral stance, perhaps some tightening but if we do see future hikes in the u.s.. perhaps thi

yellen, thank you for being here. appreciate your time and coming through, following through on some of these questions. and i haven't been here for the whole hearing. i apologize for that, also. so i'll just ask the question, did you make a comment as to whether or not interest rates are going to rise in march? >> i indicated that in our coming meetings with we will try to evaluate whether or not the economy is progressing, namely labor market conditions and inflation in line with our expectations. and if we find that they are, it probably will be appropriate to raise interest rates further. we've indicated that we think a gradual path of rate increases is likely to be appropriate if the economy continues on its current course. >> is that the same answer for an interest rate increase for june? same answer? because those are the two most. important questions that come out of this hearing right now, is how you answer that particular question. >> so my colleagues and i, in writing down our economic projections, we last

manus: did you write janet yellen's script? are you taking a few pieces from her restaurant tell us about aviva. started the day and hour and a half ago, the msci had a world record. the first new record. streak, thewinning dollar has nearly gone back into [inaudible] since trump was elected. this just as all the hallmarks are over and over brilliant. guest: that is a fair argument. you have seen it take run-up in anticipation of this reflation trade coming through and growth pick up coming through. it boils down to earnings. we need to see these earnings coming through. the signs of it happening quite encouraging. as we go forward, the trump agenda has been in focus, people talking about fiscal stimulus, infrastructure stimulus, it is becoming more of a xiaomi story. we need to start to see this playing out over the coming year. what is the show story in your book? with tax, tello me the kind of numbers were you say this would have an impact. half a trillion, a quarter of a billion. what are the numbers you boys and girls are

of a big week between cpi and the yellen testimony. what are the currency traders pricing it right now? >> they are pricing in a small possibility the fed will hike as much as 30%. i think he is correct, she will say this meeting is live, try to get that pricing option up a little bit just to give them that option. they always like to do that. pricing recession more in the past few days than more of what the fed is doing. what they are expecting is the fed will hike rates down one. scarlet: this is the work function, we have not brought it out in a while because we knew what the fed was going to do the last all around. but here we go. the odds of a rate increase, 36.4%. what is the thinking in the currency markets? does yellen want to get this to 45%? besomewhere around 45 would correct. i don't think the markets will put much emphasis on march. it is more looking like may or june. joe: what are people thinking right now with regards to the fed relationship and the house -- and how the of ministration wants to reshape the fed? essentia

that's what janet yellen's statement was about. it's an open committee in that sense and a live meeting so the key sthing perhaps markets are looking out. with the economic momentum, i think that's the right thing for the fed to be doing. >> she did express caution though because of the uncertainty over economic policies that we don't know the details of yet. we had a guest on yesterday talking about how jpmorgan has seen four hikes in 2017 as they and the fed risk getting behind the curve. do you see a similar story? >> we're broadly in that camp, yes. we think three is the bare minimum. it is all data dependent. we saw what happened when they promised three and delivered one. we'll wait and see what happens with fiscal spending in the states particularly under the big infrastructure program and whether that can be delivered. >> what do you make of the high after high after high that we're seeing in equity markets state side. does it stack up with your earnings markets? >> for the year as a whole we expect earnings to grow 9 to 10

attention turns to janet yellen. toshiba troubles. shares plunge as the electronics giant failed to report earnings. the chairman is to step down. we will hear from the ceo later this summer. i am francine lacqua, here in zurich for credit suisse earnings. mark barton is in london. i think we are getting gdp figures out of italy. mark: italy's economy expanded in the fourth quarter, below economist expectations. the country's growth this year is seen by the ec is the smallest in the euro region. gdp rose 0.2% in the three months through december. that was below the 0.3% estimate of 30 analysts in a bloomberg survey. gdp expanded 1.1% from the same quarter of 2015. italy is the euro region's third-biggest economy. it is set to expand 0.9% this year. so said the e.u. yesterday. that compares with an expected gdp rise of 1.6% in the e.u. as a whole, and makes the italian economy the laggard in the 19 nation bloc. we will get fourth-quarter gdp for the eurozone a little later. let's have a look at what is happening to equities today. yest

you mentioned draghi, we mentioned janet yellen. never before, i'm asking you this as a question, have we seen where the markets are so focussed on central banks? yes. yes! it is the only game in town. it has been since the great financial crisis. exactly. the central banks have intervened very heavily in financial markets for six yea rs heavily in financial markets for six years and the financial markets are 110w years and the financial markets are now completely dependant on that intervention. 0k. now completely dependant on that intervention. ok. you will come back and take us through some of the papers. all right, we'll talk to you very soon, thank you, richard. still to come, turning rubbish into a resource. we'll hear from the woman whose company makes energy from waste. you're with business live from bbc news. sick pay and sickness benefits is costing state and businesses around £23 billion per year, according to a new report from the ippr. they are calling for a more flexible fit pay to be introduced which they say would be

goodman and chair yellen, to see you. i would like to follow up on a question -- vonnie: to break away for a moment, there you can see prime minister netanyahu getting out -- you see them entering the steps of the white house in front of them. they will -- there will be a joint news conference meant to be taking place around now. give them a couple minutes to be get scheduled -- settled and we will bring that to you live. we hope to get an update on the u.s. ambassador to israel. the israeli prime minister and his wife are meeting with the president of the united states and first lady melania. it is the first in person meeting since the president took office. we will bring you that news conference live. increasing tax revenue and while the cost will be borne by borrowers in the form of higher funding cost and the economy as a whole with less capital formation and the lower gdp, you have that on the other side of the equation. as you have said in the past, the cost-benefit analysis is difficult work and i agree, it is not

janet yellen is responding that the fed is hurting the economy. details from her testimony after the break. we'll have more on strategy, g20, bonds what to do with the u.s. markets. we'll be right back. >>> hi everyone. welcome back. you're still watching "street signs." i'm louisa bojesen. the singapore listed bank dbs posted a 9% drop in fourth quarter profit and booked higher provisions for nonperforming lawns. we're lucky to have pauline with us from singapore. a drop in profits for dbs, pauline? >> yes, a drop in profits and the real issue is the exposure to oil services and gas services in that sector here in singapore. this is an ongoing theme for the big singaporean banks. charges for bad loans up 87% year on year. and the dbs ceo says he doesn't see things getting better for this particular sector for the next year or the next two years. he says it will continue to be a challenging environment. but here's the silver lining. he says he sees the npl rate slowing down. he also says guidance for 2017 in terms of charges for bad loans, he does

janet yellen's will be on march third among that cohort. that could send the dollar significantly higher. we are above the 30 day and 100 day moving averages, and on friday, levels were tested. that was the feeling for march is5 until november, so that the critical support level of both. if the market begins to speed up, and the fed speaks this week about the prospects of fed rate hikes on march 15, that greenback will go higher. yvonne: what dollar pairs are you watching closely who toured is it better now, you get a tweet from trump anytime, there is a little risk in europe right now, and the fed speak you highlighted, is it more tactical when it comes to these traits, move in and move out rather than have a longer view of the dollar right now? euro: the currency pairs, is one that i am watching closely because i actually think the euro is a bit oversold. european data has been getting very strong. the february info which came out went up again. that is good for pmi to manufacturing, pmi for february will be strong. so even the dollar str

inflation data wednesday book ended by janet yellen. will she talk about march being a live, the fiscal uncertainties? all that as we look at risk appetite across markets. inus: iron ore the highest momus two years, 13 analyst saying iron ore will drop each quarter throughout the year. course chugging along. inventories in london, copper stockpiles falling to the lowest in two months. there is a squeeze and strikes going through. there is the bond market as well, shift into equities. anna: let's get bloomberg first word news with juliette saly. korea, japan,h and the u.s. have requested a un security council meeting over north korea's ballistic missile launch according to yonhap news. it launched a missile the traveled 500 kilometers before splashing down in the sea of japan. during ae commented press conference with u.s. president donald trump. trump assured me that the united states will always stand with japan 100%. the president and i completely sure the view that we are going to promote further cooperation between our two nations a

janet yellen was testifying. market players say the fed will likely make its next move in first half of this year. >> waiting too long to remove accommodation would be unwise. >> she said in upcoming meetings fed policy makers will consider whether a rate hike is appropriate after they evaluate employment and inflation. the next policy meeting will be in march. she said the policy makers will discuss in the coming months how the central bank will reduce the size of its bond portfolio. u.s. president donald trump has been advocating tax cuts and steps up infrastructure investment. yellen expressed her hope those policies will put u.s. fiscal accounts on what she called a sustainable trajectory. she also said immigration has been an important source of growth in the labor force. reducing the number of immigrants coming in would dampen the pace of economic growth. >>> the dollar surged and wall street rallied after yellen left the door open for potential rate hike in march. this is all giving a boast to tokyo stocks

fed chair janet yellen about to take some questions. thanks, steve. >> section one of paragraph c says foster economic growth and vibrant financial markets through more rigorous regulatory impact analysis. you were quoted yesterday in your senate testimony saying that you agree with these core principles, were you quoted accurately? >> yes, i agree with the core principles that the president enunciated. >> well, as you probably know to date dodd/frank has promulgated at least 22,000 pages of regulations as part of its 400 rules. i think only roughly three quarters of which have been finalized, and certainly the weight and the volume, the complexity and the cost is one of the headwinds that we're facing now. i know that as an independent agency you're not necessarily subject to the jurisdiction of the executive order, but we have had testimony in this committee for years about the challenges of the volcker rule and its dell tor yous impact on market ill liquidity. on december 22nd of last year, just weeks ago, the federal reserve release

so, chair yellen, which one is it? how our banks down in our comparison to foreign come p competitors since we put our new rules in place? >> so, i don't have all the numbers at my fingertips, but b i believe our banks are more profit bable. as i mentioned, they have higher market values relative to their book values and they areturing market share, for example from european banks, capitalized ban regarded as safe, sound and strong as conferring a competitive advantagen those banks and competing for business. >> a competitive advantage, taking away clients from other banks. our banks have thrived since we passed dodd frank, both big banks and community banks are makie ining literally record pr. i'd like to submit the most recent quarterly report from the fdic to show that banks of all sizes are more profitable than ever as well as this "wall street journal" considerate considerate l, u.s. banks report record profit in the third quarter. may i do that? >> without objection. >> thank you, mr. chair. on any issue, but som

liz: janet yellen helped today. it would be unwise to hold off rates much longer. donald trump started trimming off dodd-frank legislation. there is something to the valentine's cake recipe. what stocks are you loving right now? >> we're looking at wide variety of companies. look at things discarded or neglected by other investors. for example, two names we like, wisdom tree, wetf. one of the leads providers of passive etf investing. this stock did not do well also year. we're looking great company. right part of the market. everybody going from active to passive. liz: you also like lending club. i need to ask but the at atmosphere. how much of a game-changer will that be? >> well on big numbers it is pretty big. 10% tax cut adds 8% to s&p 500 earn. for some compani it is more. apple is big beneficiary. wisdom tree is big beneficiary. it pays high taxes. can be a big boost to earnings especially in 2018 and 2019. [closing bell rings ♪ liz: dan chung thanks for coming on. there is the closing bell. david asman and melissa francis with the love affair and bulls. me

that's chair yellen. she's been known to delay very cautious leadership. i'd like to think march is on the table. you see these various fed members, and they say march to be a on the table. i don't know if she wants it on the table. i guess i'm looking for inflation. cpi inflation, that's the relevant measure for inflation. that affects all of us. it's what we spend out of pocket. they like pce inflation, that's coming out march 1st. it's always lower than cpi. so they think there's not enough inflation, but there certainly is. that is march 1. that could get close to 2% finally. let's see, march 1, then they make their decision march 15. maybe the key is inflation. >> do we know enough about trump's policies, or do you think the fed will take a wait and see approach? >> i get that -- i am asked that quite a bit from customers, what's going to happen with trump. >> hard to know. >> luckily fed chair yellen has come out and said herself that we don't have any information. there's nothing we can go on. she was hit hard in the testimony saying why do you only

janet yellen will deliver her testimony before congress tomorrow. there is loads of anticipation about if they hike rates when they meet next month. our next guest says it's close to 50% probability that march will. -- 30%t guest says probability of a hike. >> we assume that we stay in the same part of the range. there is a hike in probability closer to 20. it's very hard to see how the probability will fall from here. the last time yelena spoke in california a few weeks back, the market sold off 20 basis points in the front and of the curve. she is not going to say anything different than she did ask them. mark: 3% end of year? is that your call? >> it's perfectly achievable. if you go back to june last year, the market was looking at a divided congress, a clinton presidency and yellen forever. what we have now is significant for a push. we have an equity market that is 15% higher. we have basis points higher. the market is pricing in the same for the fed. we should be putting in a bigger risk premium in the front end of the curve than we have. tha

but again, none of something that janet yellen has to content with. but agaii terms of‘ there is more clarity in terms of there is more clarity in terms of the direction of fiscal policy. look at some other business stories. tui, the german travel company that owns thompson, has seen a revival of business thanks to better bookings for its uk and irish holidays and it has cut its losses for the last three months from £138 million a year ago to £82 million. john barton is to step down from his role as chairman of retail giant next, to be replaced by michael roney, formerly of bunzl. separately the group has said it's been facing "exceptional levels of uncertainty" amid a consumer spending squeeze, soaring costs from the weak pound and "little visibility of the approach the uk government will be taking to brexit". disney has cut ties with the world's highest paid youtube star, pewdiepie, because of allegations of anti—semitism. he has been associated with disney through maker studios, a company with a network of youtube stars, drawing several billi

. >> januaet yellen giving the markets a wake-up call. stocks meantime, hitting all-time highs on those remarks. the latest ahead. moments away from one of the most important press briefings of the trump white house. lots of questions remain unanswered after the abrupt departure of michael flynn. that briefing to you live in mp minutes. we're continuing to follow the tallest dam on the brink. more than 200,000 people forced to evacuate their homes. a very busy "power lunch" starts right now. >> it is a happy valentine's day as investors remain smitten with apple. that stock remaining high. tesla, costco, marriott, even yahoo!. nasdaq up 7% this year. that's as much as it gained all of last year and more than it gained in 2015. all this, as crude oil moves higher and treasury yields are rallying on the tesla strategy. >> everything is up today. i'm tyler mathisen. 46 stocks in the s&p 500 hitting new 52-week highs. many of them are hitting all-time highs. in addition to apple, home depot, visa, l3 technologies, harris corp, marsh & mclenna