how will janet yellen leave her mark on her last fomc meeting? michael mckee is back from montrÉal to answer the questions. does it become a more hawkish fed? >> it does, you have three new voters, but not at this meeting. there is no reason for them to raise rates and it would be difficult to make the case given inflation figures have not moved. they do track inflation expectations, so you may get a change in the statement, because the consumer-based side has stayed steady but the market based site has picked up here and -- picked up. the idea that the inflation rate is stable, they may be able to tweak that a little bit. a chart showing you what is happening with inflation and the unemployment rate. i have to wonder if we will shift into -- they will shift the tone given the tax cuts we got and how that could spur price growth. >> that is a wait and see issue. we do not know how much stimulus we will get out of it. economists think maybe 310 of the gdp over the year but it depends on how quickly that hits. not right now because they have not s

as jay powell comes in, this is all about janet yellen leaving. she will be given some space to explain how she feels about the economy and she will go off into a different realm. i don't think we get anything from the fed. personally, i never have been interested in the numbers for nonfarm payrolls. it will be very volatile. lisa: what is the biggest economic indicator, rachel, that you are looking at that affects more broadly the u.s. credit and frankly emerging markets? because the dollar has been the story of the day, of the week. what could make it go stronger and actually disrupt a lot of the consensus trades right now? rachel: a single indicator, i would cheat a little bit and say the financial conditions indicator. it combines a bunch of things. i think the signals we have gone back to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. but as we go into the back half of the year, watching volatility, which has begun to move off the floor. if it does more so, it will decompr

janet yellen's last meeting. we talk about her legacy. we start with the big issue, dalio's warning resonating from davos to new york. >> a 1% rise in bond yields will produce the largest bear market we have seen since the 1980-1981 period. >> are we in it? >> there will be a time of the bank of japan and ecb begin tightening. that will be the time when bond yields increase. i don't see that now, unless i'm wrong on inflation. i don't believe the federal reserve will tighten before suggested. >> i don't think the bear market is starting. since 1990 we had many, many predictions but it has not happened. lisa: joining me in new york is subadra rajappa, and rachel , and coming to us from london is luke hickmore. i want to start with you, subadra. forthe selloff just begun, is this the extent of it and will people pile back in? subadra: that's a good question. i think there is still more room for bonds the selloff from here. they seem to be pricing higher over the last -- in the last few months. i think we could probably go a little higher. i

as jay powell comes in, this is all about janet yellen leaving. she will be given some space to explain how she feels about the economy and she will go off into a different realm. i don't think we get anything from the fed. i personally am never particularly interested in the numbers for nonfarm payrolls. it will be very volatile. lisa: what is the biggest economic indicator, rachel, that you are looking at that affects more broadly the u.s. credit and frankly emerging markets? because the dollar has been the story of the day, of the week. what could make it go stronger and actually disrupt a lot of the consensus trades right now? rachel: a single indicator, i would cheat a little bit and say the financial conditions indicator. it combines a bunch of things. i think the signals we have gone back to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. but as we go into the back half of the year watching volatility, which has begun to move off the floor -- if it does more so, it will d

as jay powell comes in, this is all about janet yellen leaving. she will be given some space to explain how she feels about the economy and she will go off into a different realm. i don't think we get anything from the fed. i am pursley never particularly interested in the numbers for nonfarm payrolls. it will be very volatile. lisa: what is the biggest economic indicator, rachel, that you are looking at that affects more broadly the u.s. credit and frankly emerging markets? because the dollar has been the story of the day, of the week. what could make it go stronger and actually disrupt a lot of the consensus trades right now? rachel: a single indicator, i would cheat a little bit and say the financial conditions indicator. it combines a bunch of things. i think the signals we have gone back to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. but as we go into the back half of the year watching volatility, which has begun to move off the floor. if it does more so, it will decomp

as jay powell comes in, this is all about janet yellen leaving. she will be given some space to explain how she feels about the economy and she will go off into a different realm. i don't think we get anything from the fed. neveronally am particularly interested in the numbers for nonfarm payrolls. it will be very volatile. lisa: what is the biggest economic indicator, rachel, that you are looking at that affects more broadly the u.s. credit and frankly emerging markets? because the dollar has been the story of the day, of the week. what could make it go stronger and actually disrupt a lot of the consensus trades right now? rachel: a single indicator, i would cheat a little bit and say the financial conditions indicator. bloomberg fcon. it combines a bunch of things. i think the signals we have gone back to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. but as we go into the back half of the year watching volatility, which has begun to move off the floor. if it does more so, it

as jay powell comes in, this is all about janet yellen leaving. she will be given some space to explain how she feels about the economy and she will go off into a different realm. i am pursley never particularly interested in the numbers for nonfarm payrolls. it will be very volatile. lisa: what is the biggest indicator, rachel, that you are looking at that affects more broadly the u.s. credit and frankly emerging markets? because the dollar has been the story of the day, of the week. what could make it go stronger and actually disrupt a lot of the consensus trades right now? rachel: a single indicator, i would cheat a little bit and say the financial indications indicator. it combines a bunch of things. i think the signals we have gone back to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. but as we go into the back half of the year watching volatility, which has begun to move off the floor. if it does more so, it will be decompress assets. lisa: it is time for the final rapid

what did janet yellen's committee tell us and what did it do? no changes in rates by hence that suggest that the reserve is getting more confident and inflation in a statement that they said we see more signs of labor compensation starting to rise. they also talked about doing further rate increases, adding that word to a key sentence, solid growth all around. this is what led many, it isn't that they changed the path, it is clear that janet yellen is powell, by jerome so now let's bring in someone was part of that path for many years. dennis lockhart, who was the president -- we are glad to have him back to share his view of where the fed is going. it, when you look at the policy statement coming is it reassuring that powell is going to follow in the footsteps or are things going to pick up and do for rate hikes instead of three? get your question exactly, but what is in the mind of people is really whether we four,ing to see three or which is a possibility, or fewer than three. i think the likelihood is that if it is not three, it is more like

let's start with janet yellen's legacy. most people rate are very highly when it comes to managing the economy in managing the transition back to normalization or however you want to define it. but there are criticisms about how janet yellen performed in the politics of a role. from an super accommodative policy and said we don't need a super accommodative policy. when she came in with us you is going to be dovish because she was which was president of the san francisco bank, and she wasn't. but what you brought up things to congress like typical physical type of things like income inequality for example, she was criticized for that and i think that damage to reputation with the damage to reputation with some members of congress. jerome how is coming in and me -- coming in any might have a friendly congress this year but maybe not after the elections next year. tom: d agree that there's a mystery in chairman powell? >> even when he was just the governor he had sparse public comments. , veryis some degree regulatory-based. w

janet yellen: wage increases our modest. >> we do not see tightness in the labor market. janet yellen: the labor market and economy are not overheated. >> no sense in overheating the economy or a tight labor market. janet yellen: inflation has been below are 2% objective for most of the past five years. >> inflation has been below our 2% objective. or maybegle month every month but once since i joined the board of governors in may of 2012. janet yellen: the fomc has indicated it intends to carefully monitor actual and expected progress toward our inflation goals. >> is a transitory or are there more fundamental things that work? we are watching carefully to see and we will have to be guided by the data. isnie: joining us now somebody with many experiences in decades. shared, the language is language that is particular to the fomc. what do we know about jerome powell's views? >> he pointed out very well, he does not seem to differ very much from the chairman -- the current chairman for the next few hours, from her point of view. quite close,e different backgrounds but not

yellen and the future is a bit uncertain because not just janet yellen but also two other senior members of the federal reserve will leave the fed and the new team actually will be the least experienced probably in decades so the next meeting the first time under might be a bit more exciting than what we saw here on wednesday all right now all eyes only is wrong the state of the union address it was the third longest in history question as to animate the markets open for them. grows grows grows jobs jobs jobs that was one of the key messages from the u.s. president and overall wall street likes what it is seeing so far and we couldn't even have seen an impact of the big tax reform that donald trump got through congress. last year but also he was not too specific how he tries to achieve his goals he did talk about an infrastructure program in the amount of one point five trillion dollars how he's going to finance that precisely is rather unclear and we did see a pretty mixed session here on wall street and one sector was under pressure and that was the pharmaceutical industry because dona

that picture we ran at the top of the show of janet yellen. meeting and last there is a tribute going on at the fed where everybody is walking around with their popped collars. so i thought i would join in like everyone else and we can salute janet yellen. collars is true, her are popped. we got a posting on social media so you can join the party. i don't think i can pull it off like mike can. scarlet: is going to be her last day. she's not going to give any kind of speech, right? its very quiet. >> by now they have finished their meeting and sent over the press release that they will give to the reporters. they have already given it to them and we will get the data in about two minutes and they will tell us what happened. but its done for her now, and it is going to be jay powell's fed. >> where the raising rates today? somebody people are saying we have to wait until march? >> its a nonconference meeting but there are no inflationary y are not, the pushing up right now. going into march they will have more data and they could do that. she al

. —— joe the central bank, succeeding janet yellen. ——joe powell. he will the central bank, succeeding janet yellen. —— joe powell. he will hold thejob forfour years. and before we go, let's have a look at the markets. as you can see, most of them are in negative territory. this is after the dowjones industrial average finished in negative territory overnight. thank you to spending time of us. president trump has denied that new us import duties targeting mainly asian companies will spark a trade war with china. the us attorney—general, jeff sessions, has become the first member of president trump's cabinet to be questioned by the special counsel investigating alleged russian interference. the trial of darren 0sborne, who's accused of driving a van into a group of muslims outside a mosque in north london, has heard that he received direct messages from far—right groups before the attack. 0sborne denies one charge of murder, and one of attempted murder. 51 year—old makram ali was killed in the incident injune last year, as

janet yellen and her last fed decision today before powell the rain. her legacy, and fist goal -- fiscal send -- stimulus. i'm in new york alone. david westin had like a half hour of sleep after the state of the union. david: it is great to be down here. will go out toy a resort in west virginia to have a retreat to decide what to do next. will they were treated by partisan lay? i feeling that is what president trump taught -- tried to do yesterday. >> opposite directions, not to the same place. the president wanted to reach across the aisle and be bipartisan or there was an edge to the things he said. his point about the dreamers saying it is not just people who were brought here as children, all americans are dreamers. president trump: because americans are dreamers, too. move: it is an interesting . everyone says we are for the dreamers and how could you not be? wait a minute, what about all the legal people here, aren't they dreamers and how do we protect them? that takes a little bipartisan thrust away from democrats. was blowing from the democrat

. >> i imagine janet yellen is doing cartwheels behind the scenes at how well the market has taken the whole balance sheet reduction plan and announcement. >> i think people are going to rightly interpret that the fed can move and go in december. and go two to three times next year. >> i think they would view jay powell to be continuing over the policies we have experienced over the next several years. >> the bond market has been in a trendr bowl trend -- bull right now so that has bailed out , a lot of bond investors. yields keep going down and returns are good. >> the 800 pound gorilla is whether or not this building corporate leverage which have seen over the past three or four years -- is that sustainable or leading to something less benign? >> if equities are doing well, credit spreads are doing well, and if the economy is doing well, i think there will be some willingness to look past the flatness of the curve. julie: joining me today in new york is kathleen gaffne, and from pasadena, california is julien scholnick, portfolio manager at western asset management, and in princeton,

fed the janet yellen era has come to an end. >just a few more weeks and janet yellen is out of there. are piling in, they stocks, thatn with ripped in the u.s. permeated the emerging markets, some are trying to figure out who was meeting who but i want show you one indicator here, this chart that gives you a sense that the and may be coming soon. 2717 measures the breath of the stocks. about 80% of the s&p 500 stocks are now trading above their 50 day moving average, that is usually a sign that bull run may be ending. you can see that this has happened a few times during this bull run. we have not seen any and to u.s. stocks. you just ignore the technical's, we have seen these red alarms before and we see rallies continuing on forward. people say 2018 is that risk where we see these trade tensions escalate and we did see that from the president today. >> let's check the u.s. markets and how they close in reaction to others headlines, you had the snp of about 2/10 of 1%, the dow trading unchanged, the nasdaq getting tech momentum

janet yellen coming in about here. with immense accommodation, stanley fischer calling this altra accommodative. -- ultra-accommodative. up but nowhere near where we need to be. haven: no and they should started three or four years ago and they cannot make up for lost time by jacking up the rate at a fast time. we not go measured quarter-point by quarter-point but 38 of a point move? martin: that would be ok but if they say, we started three years ago, we would be up not one point to five but at 3%, so let's just jump to that. we cannot do that without upsetting markets, but we have to get there. the danger is, the equity markets will not like it. the equity market so far has been fine with the hike. we did not have the temper tantrum we had last time. why are you worried for the next 12 months? martin: because i think the equity markets are priced way out of line with historic experience. the s&p price-earnings ratio was something like 70% higher than its historic average. if it goes back to a normal price-earnings ra

he is said to be officially installed as janet yellen's excessive. in eastern oklahoma, five employees missing after a natural gas well explosion. the owner, patterson-uti energy is pledging a full investigation happenedblast which monday at a drilling site about 100 miles southeast of tulsa. avos, speaking at the world economic forum, they want against isolationist measures by some of the world's biggest nations saying that we must accept globalization is slowly losing its luster. he believes the indian economy could hit $5 trillion by 2025. and illinois senate -- senator tammy duckworth has told us that she is pregnant. she is expecting her child, this will be the first time a senator will have a baby while serving in the chamber. i am a alisa parenti, this is bloomberg. after five: 30 p.m. in washington, it is 6:30 a.m. in hong kong. we are joined by david a glace -- david ingles. id: i am looking at some of these markets, these futures contracts, most of the markets sayunderway and suffice to we have had a massive run-up in equity prices, especia

janet yellen's term has been successful. and as hankfiér .. .l. l . l.l yellen's term has been successful. and as hang??? ..we l . l.l first uninni " " 5g trump him announce some form of spending. say that. tax cut if and l’ll; so we i leel; so we expect a increasing wages. so we expect a positive story. the only caution is whether he announces anything around trade policy, any protectionist agenda. in the meantime, stock markets are agenda. in the meantime, stock markets a re pretty agenda. in the meantime, stock markets are pretty negative. we had a torrid time on wall street. asia was all red. your thoughts? in the grand scheme of things, it has been a great start to the year. there has been a bit of red, but it has been a strong start. so it is reasonable to expect a bit of a pull—back. overall, the backdrop is still supported. corporate earnings are strong, so we expect the market to continue to climb higher. we are going to talk about amazon go and that supermarket later and whether it is too easy to shoplift. and too easy to spend! let's mo

the senate voted 85-12 to have him a janet yellen when her term third.ruary the trump administration assessing candidates for the vice chair position. it has been vacant since stanley fischer retired. the new york fed president bill dudley quit in the coming months. the most active volcano in the philippines has burst into life, sending thousands of -- sending lava and ash into the sky. 56,000 people living nearby have there are away, and fears of a more violent and corruption. authorities warn of localized earthquakes and a pyroclastic cloud, where gas vaporizes everything in the area. >> in singapore, checking , it is a lotssion about the dollar weakness. the spot index falling to a three-year low below 90. we are seeing a surge in the japanese yen, up 4/10 of 1%. no surprises. you are seeing japan past nikkei index down by .8%. the topics -- the topix retreating. there is still lots of value in japanese stocks and we are starting to see the decoupling coming through from the relationship with the yen and stocks. 200 coming, asx back. let's have a quick look at the stuff we have be

that said, janet yellen did a spectacular job. we should all be thankful for what she did in her tenure at the fed as well. >> can the pace of deregulation pick up once the new appointments are in place? >> no, the pace will continue to pick up as we get more and more of our people through the senate and approved into their seats. the first year of an administration is really a big personnel year where you're nominating people to run agencies, you're nominating board members and it takes you an enormous amount of time to get those people nominated, get them through the process, get them into the seats. i think year two of the administration you're going to see a lot more reg reform than you saw in year one. >> gary, there's been a lot of speculation that if you could succeed on tax reform, which you have, that you would step down afterwards you have succeeded what's keeping you there now >> andrew, i don't understand why you guys keep asking me this question i did get tax reform done with the president. >> you should be proud >> i

this is janet yellen's last press conference. i'm sure there will be a lot of person.a sentimental i would be making a sentimental statement while i asked her my question. hawkish statement. may be inflation rising and the in thatpushing direction. again, if you are a bond trader, this is the week when you are going to be watching every headline on the bloomberg. thanks very much. kathleen. let's get to our guest from ubs wealth management. what are you making of all of this? what about the bond market, historic events coming up? the state of the union address and janet yellen's last fed meeting? >> we have been negative on the bond markets for quite some time. our view has always been that if you don't have to be in a high-grade government bond space, don't be. there are a lot of factors coming into play that are not likely to be positive for the bond market for quite some time. we think it's going to hit close to 2.9% by the end of the year. still more to come. rishaad: absolutely. that begs the next question. this meeting of t

big events on the front with janet yellen and donald trump. we also have earnings and the direction question. the market again, the dollar coming off the worst week in eight months, he s&p was up the fourth week, can it do it again? earnings have been fueling the rise, and let's go into some of earnings in the spotlight, mcdonald's, mark, boeing to name a few. mcdonald's in the spotlight because it is expected to continue to gain market share for a fast food giant, and of about 5% in the fourth quarter, same-store sales domestically. boeing in the spotlight, one of the leaders in terms of market rise leicester, up 16% year to date, and industrials is the sector investors are calling into right now. they are expected to report big increases. and deutsche bank, will they continue to be reporting some of the gains we have seen with other u.s. banks? that will be interesting, u.s. banks have reported tax windfalls. let's go on the bloomberg, tax reform is a big question. this is 9149. tax reform snapping a two-year trend, it is a question here. on

. >>> and focus on the fed janet yellen making a final rate decision today as fed chair. we'll tell you what to expect. it's wednesday, january 31, 2018 you're watching "worldwide exchange" on cnbc. >>> good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's have a quick check in on the markets. futures pointing higher after a big selloff yesterday. down 1.4% on the dow, more than 1% on the s&p. the nasdaq down less than 1% we are still sharply higher for the months as a whole. just a bit of profit taking the last few days. doesn't look like we'll get more profit taking on the final day of january the dow is expected to open higher by 60 points. ten-year treasury has been a factor as it crossed 2.7 earlier this week. pulling back a bit in yield terms, but still above 2.7 >> president trump striking an optimistic tone in his first state of the union address last night. >> this, in fact, is our new american moment. there has never been a better time to start living the american dream >> the president also talked up the record run for the u.s. s

bottom line, unchanged the president claimed credit for a lot of the rally how about janet yellen she's been there four years and we are up 58% on the s&p 500 58% on bank stocks since then. a little bit of a round of applause for her maybe back to you. >> maybe she'll get one soon, bob. rick, you're actually in the place where bonds are traded how is it reacting >> you know, not a lot of reaction usually i start out with the dollar index the dollar index was down six. it's now unchanged not a big move 215 is still 215 in twos the ten-year was 297ish -- i'm sorry. 296. still at 296 but what's fascinating and this goes to exactly the conversation you have been having the yield curve is flat. when you look at europe's yield curve, italy's yield curve, france's, they are all dramatically steeper than ours i think the fed is going to have a problem with four tightenings and not inverting the curve. i don't care what kind of modeling they do it barely worked before the crisis throw in all the manipulation, there is no way that's going to take them to the promised land to that end, look at 30s

janet yellen's last meeting there. she is passing the baton to jerome powell and the indication is that they are going to continue moving forward with this rate hike process. that has some worried that rates will be moving higher in the foreseeable future. it actually sent yields, if we show you the 10-year yield higher today, as well as 30-year yield. see if we pull those up, as we got the news from the fed we saw them trading just under a yield of 3% on the 30-year. we'll work on that. we'll bring it back for you in a minute. but 26,068. there is a little bit of concern in this market when you think where we started the day. we still have about an hour and seven minutes to go. gerri willis is on the floor of the new york stock exchange and, gerri, this came on rather suddenly pretty well. now we're moving in into negative territory. >> we're down, down 0.2.2 arrows traders don't like federal reserve. we're not raising rates. what the fed look, this economy looks strong to us. we could be seeing some inflation in the

it is fed chair janet yellen's last meeting. what is the conversation about inflation in the tax law behind those close doors? -- closed doors? mike: it plays into the idea that in 2018 we might see higher inflation. we are seeing slack being used up, labor markets very tight, commodity prices starting to rise. the feeling is that inflation will start to rise. over the course of the year, to the extent that we get stimulus from the tax bill, that just pressures. for this meeting, the president is going to take a pass, sit and wait. it will be interesting to see if they have warnings on that in their statement. probably not, since this is their last meeting. march,e focus turns to the expectation priced in. you, actually, just came back from montreal, to put on your other hat, at the nafta trade talks. compare that to the fifth round of talks. betterhey ended up in a place, because they are talking about core issues, but they didn't make any progress on those issues. worthre making progress continuing, but they have some tough ne

manus: on wednesday we get a decision, janet yellen's last. anna: we get the u.s. jobs report for the month of january. that's wednesday. coming up, the big cutie question, when can we expect a change from the u -- the central bank. we have the latest. manus: another bumpy week for theresa may. this is bloomberg. ♪ ♪ 6:21 a.m.s just gone in the city of london. is 6075. citigroup is upgrading their view on where the market is going to. a little bit of a bullish call and we are on a rally with the commodity market. let's get a business flash. juliette: manus, thank you. japanese will use its own capital to reimburse customers rift.st money in their at awill pay the users rate of 82 for each of the 523 million points that were stolen. it shocked legislators, who introduced legislation to prevent such disasters. shares of steve wenn' operations of following the most in almost a month after allegations that the chairman sexually harassed women. morgan stanley downgraded their rating after "the wall street journal" reported he pressured massage therapists and a forme

yellen they're starting to pull away the punch bowl and i think this could be also part of all of that cash trillions and trillions and trillions have been created in the last few years and everybody's been waiting for something to happen remember in two thousand and eight two thousand and nine the likes of peter schiff are saying hyperinflation is coming his call may have been too early but you know that this could be some sort of hyper inflationary mindset that is out there it's happening in cryptocurrency is happening in the equity markets is happening bonds it's happening in everything so this could be a last hurrah like people downing. the drinks before the you know the bar closes well up to peter schiff point you know it's all hinged on the u.s. dollar the world reserve currency which is being held up through the shenanigans of coordinated central bank fraud when somebody breaks rank this is going to happen twenty eighteen one of the major central banks in the world will start buying bitcoin they'll break ranks from the other central banks that are colluding to aggressively expan

yellen they're starting to pull away the punch bowl and i think this could be also part of all of that cash trillions and trillions and trillions have been created in the last few years and everybody's been waiting for something to happen remember in two thousand and eight two thousand and nine the likes of peter schiff are saying hyperinflation is coming his call may have been too early but you know that this could be some sort of hyper inflationary mindset that is out there it's happening in cryptocurrency is happening in the equity my. it's happening bonds it's happening in everything so this could be a last hurrah like people downing the drinks before their you know the bar closes well up to peter schiff point you know it's all hinged on the u.s. dollar the world reserve currency which is being held up through the shenanigans of coordinated central bank fraud when somebody breaks rank this is going to happen twenty eighteen one of the major central banks in the world will start buying bitcoin they'll break ranks from the other central banks that are colluding to aggressively expand

i think janet yellen has done a great job. i look forward to working with her. mr. rubenstein: how frequently do meet with the chairman of the fed? sec. mnuchin: every week. we alternate between offices. mr. rubenstein: have you ever said, maybe interest rates should stay low? respect the: no, i independence of the interest rate decisions. we talk about what the impact of the economy is. we talk about regulatory issues. we talk about international issues. it is interesting because when i started these meetings, i wonder what we would talk about. i would tell you, there has not been a week where janet yellen and i have not spent less than an hour talking about things. mr. rubenstein: it was reported in the press that you are recommending somebody other than her. is that awkward? sec. mnuchin: no. mr. rubenstein: the economy. the are you projecting for economy this year in terms of growth and inflation rate? sec. mnuchin: higher growth. moderate inflation. lower unemployment. mr. rubenstein: what is your biggest worry about the economy today? we have had eight years o

yellen is the lloyd blankfein is it jamie diamond the guys who make some a big lawn look like mother theresa people react to that and they react physically in this several slee and they want to escape the matrix of the fia world how you can poor you how much good do you own. how many you want to give me for christmas that is how much how good oh and how do you allow yourself to be exposed to the ravages of fear and it's not i still believe one of the best things about probably currency offer is the ability to move money around the world digitally yeah well guess what there are companies like gold money which i own that has a private blog chain that allows me to own gold and monetize it instantly and that's where i'm putting my hope and they also now offer but my point they offered that well they offer you cold cold storage though that's right they'll engrave your and why are they doing that it's silly i don't know why because the market for gold is nobody is buying gold anymore you can't give it away except for sheikhs who want twenty four karat gold toilet bowls that say nobody want

yellen who was the first woman to lead the federal reserve is. china and south korea have condemned the u.s. decision to impose steep tariffs on imported solar panels and washing machines the move but the trump administration is to protect u.s. manufacturers against foreign competition europe says it regrets the move which could see goods taxed up to fifty percent mexico which will be directly affected says it will use all available legal resources in response this may fund says the team called the fact that the u.s. launched investigations into the safeguard measures on imported solar panels and washing machines and adopted state tariffs on the its products is an abuse of tried measures china is strongly dissatisfied with it. the mayor of paris has called an emergency meeting to deal with serious flooding in the french capital but it was saying as burst its banks prompting authorities to close several roads and council boat cruises water levels have risen to at least three point three meters above normal while the oscar nominations arrived with

yellen they're starting to pull away the punch bowl and i think this could be also part of all of that cash trillions and trillions and trillions have been created in the last few years and everybody's been waiting for something to happen remember in two thousand and eight two thousand and nine the likes of peter schiff are saying hyperinflation is coming his call may have been too early but you know that this could be some sort of hyper inflationary mindset that is out there it's happening in cryptocurrency is happening in the equity markets it's happening bonds it's happening in everything so this could be a last hurrah like people downing the drinks before they're you know the bar closes well up to peter schiff point you know it's all hinged on the u.s. dollar the world reserve currency which is being held up through the shenanigans of coordinated central bank fraud when somebody breaks rank this is going to happen twenty eighteen one of the major central banks in the world. old will start buying bitcoin they'll break ranks from the other central banks that are colluding to aggressi

yellen they're starting to pull away the punch bowl and i think this could be also part of all of that cash trillions and trillions and trillions have been created in the last few years and everybody's been waiting for something to happen remember in two thousand and eight two thousand and nine the likes of peter schiff are saying hyperinflation is coming his call may have been too early but you know that this could be some sort of hyper inflationary mindset that is out there it's happening in cryptocurrency is happening in the equity markets it's happening bonds it's happening in everything so this could be a last hurrah like people downing the drinks before the you know the bar closes well up to peter schiff point you know it's all hinged on the u.s. dollar the world reserve currency which is being held up through the shenanigans of coordinated central bank fraud when somebody breaks rank this is going to happen twenty eighteen one of the major central banks in the world will start buying bitcoin they'll break ranks from the other central banks that are colluding to aggressively expa

yellen. they're starting to pull away the punch bowl and i think this could be also part of all of that cash trillions and trillions and trillions have been created in the last few years and everybody's been waiting for something to happen remember in two thousand and eight two thousand and nine the likes of peter schiff are saying hyperinflation is coming his call may have been too early but you know that this could be some sort of hyper inflationary mindset that is out there it's happening in cryptocurrency is happening in the equity markets it's happening bonds it's happening in everything so this could be a last hurrah like people like downing the drinks before the you know the bar closes to peter schiff point you know it's all hinged on the u.s. dollar the world reserve currency which is being held up through the shenanigans of coordinators central bank fraud when somebody breaks rank this is going to happen twenty eighteen one of the major central banks in the world will start buying bi

atty: we have got a lot this week, earnings, janet yellen's final fed meeting. su: let's talk about some of the eco-numbers, jobs numbers coming out, expected to show an increased, also jobless rates maintaining at about a seven-year low. spending numbers will be out. consumer spending numbers will be a major reflection of the holiday sales, which are expected to be firm and showing increased. we also have manufacturing activity, which is continuing to be robust according to economists surveyed by bloomberg. in thealk about trump, spotlight this tuesday in the u.s. as he delivers his first state of the union address. he is expected to highlight infrastructure, a plus for him and has moved the market. also to strike more of a bipartisan tone even though he came in rather roughshod. he is realizing the last run through with the budget negotiations that you really need a bipartisan consensus. that is the tone he will hit and we are interested to see what he has to say about nafta and other issues, the immigration front. on wednesday, we have janet yellen's swansong

yellen succeed janet when her term ends. the trump administration is still assessing candidates for vice chairman. the most active volcano in the philippine burst. sending thousands of lava and ash into the sky. or than 56,000 people living nearby has been moved away. authorities are warning of localized earthquakes and the cloud where superheated gas vaporizes everything it touches. global news, 24 hours a day, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen. this is bloomberg. rishaad: being political, creating a robust. imposing after your tariffs on solar cells and washing machines saying the u.s. will not be disadvantaged anymore. the form is a champion for global trade. protection is a good thing to apply in this world of open trade. >> i think there will be here and there are some corrective measures. i don't see anything that is going to be leading to a heavy significant burst of protection. >> of course we are always concerned with protectionism. we realize in order for

and ahead of janet yellen's last fed meeting, we discussed her legacy and the incoming fed chair jay powell.

jordan: one has janet yellen ever gone out with a bang? it has usually been to the dovish side. anna: i think that's a good thing when you are a central banker. jordan: i don't think there's going to be much surprise. in terms of the dots and so forth, the big question will be will the fed revise up the dots to incorporate a path of more dots? that's what investors are looking at. inflation is not really picking up gangbusters to validate that. that's the sort of place we are in the markets. anna: jordan, thank you very much. really appreciate it. jordan rochester. jordan will be continuing his conversation with bloomberg on radio, next. manus: and you can watch president trump's state of the union address and 9:00 p.m. new york time. trump's may dominate the state of the union. will he talk about infrastructure in deregulation? anna: breaking news coming through across the bloomberg. this is over and turkey. -- in turkey. emirates confirmed talks with spare bank. this is interesting. turkish lender rises 5.2, 5.77 lira in trade, the highest level since december. this is a comme

mark: the vice chairman, we will get his outlook on the fed and central banks ahead of janet yellen's final fed meeting. this is bloomberg. ♪ vonnie: lightbank in new york, i am vonnie quinn. mark: from london, i'm mark barton. this is bloomberg markets on bloomberg television. they progress in business in the americas -- the chairman spoke to bloomberg's francine lacqua in madrid. taken from 40% to was to 17% this year, and on strong topline growth, doing things really the right way for customers, loyal customers, digital really well on digital. good performance in brazil. mexico also. actually, all of latin america has done well. francine: are you worried about protectionist measures taking force in 2018 after we have heard noise from president trump? to this thelook actions, and what the u.s. has done in terms of the economy is pretty good. the tax bill is very encouraging with us and others who will put that back into higher wages and more lending to customers. the new administration has all the right attitudes in terms of supporting growth and making banks support growth again

that would be janet yellen's last meeting. the 10 year yield, 2.71%. it is time for our stock of the hour. the worst performer in the s&p the shares of metlife down most in 19 months after it announced it was strengthening reserves. the treasury secretary speaking about metlife p are julie hyman is here with more details. julie: strengthening reserves is something we see from banks from some insurers. essentially putting aside more money to back policies for annuity and pension. it is as much as 575 million dollars before taxes. the company also announced a material weakness of internal controls for financial reporting spear the interesting thing about the term reserve strengthening, is it has this bad connotation. warren buffett has talked about it. 2002, lecture halfway owns insurers, he said at the time of his annual letter, we recommend struck -- scrapping the term and its ugly reserve strengthening. reserve strengthening applies have beenmounts further buttressed. that appears to be how some investors are viewing this move on the part of metlife.

david: what is the fed facing, as we look at janet yellen's last meeting now as chair? michael: probably what kind of cake do they give her at a going away lunch, because the fed is not going to do anything at this meeting. the markets are not prepared for it. she is probably going to sneak out the door without doing a lot. then it becomes jay powell's chance, and the question is -- what do they do in march? everyone will look at the statement with any kind of hint as to whether going next. david: do we have any evidence jay powell will materially differs from what has been going on under janet yellen? michael: no evidence at all under this point. economic conditions change, but if nothing can chang changes ine economy, we still see on a clinic where it is an inflation where it is, there will be no change. if inflation picks up a lot, unemployment goes down quickly, and suggests inflation will move, you might see him and his colleagues push for faster. david: this has been a long range mystery now. thatere any new evidence inflation is actually starting to kick in? ther

a conundrum even america's chief central banker, janet yellen, has been struggling to explain. generally, in a strong labour market where many firms are having difficulty finding quality workers, we would expect, just through normal demand and supply, channels to see some upward pressure on wage growth over time. at the labour market has tightened, we have seen some very gradual drift upward in that wage gains. a tight labour market should mean that employers have to pay more to get the best worker, but that has not been the case, and many economists have been trying to figure out why. 0ne economists have been trying to figure out why. one possible reason could be that workers have less bargaining power, they are not as mobile, there is an increased use of technology, and, of course, there is the decline of labour unions. but for workers who do get an increase, it is life changing. it is a lot to me. i mumble when we were getting paid $7.50. —— i rememberwhen. that isa paid $7.50. —— i rememberwhen. that is a real jump. paid $7.50. —— i rememberwhen. that is a realj

janet yellen will chair the last meeting of the federal open market committee, or the fomc, before handing over the reins to jerome powell, and the two day meeting will end on wednesday where it is expected to keep rates unchanged. other items on the calendar this week include the united states and south korea entering into their second round of talks to try to salvage their troubled bilateral trade agreement. that also happens on wednesday. and on thursday we will see the titans of the tech world, the likes of alibaba, of the tech world, the likes of aliba ba, alphabet, and of the tech world, the likes of alibaba, alphabet, and amazon, posting their earnings that day. i spoke earlier to the chief investment officer for the asia—pacific at deutsche bank. investment officer for the asia-pacific at deutsche bank. we don't really think there will be any material announcement, because as we said, it is the last meeting as chairwoman, so hence they will keep the interest rate unchanged until of course she hands over tojerome powell, and then we would expect the first rate hike to happen in ma

it the move from janet yellen giving way to jay powell should not change that. this debate about the efficacy of the hard 2% inflation target has exploded to the forefront of central bank thinking over the last six weeks or so. that potentially is a game changer. themandate has changed, if fed is going to be targeting a range for inflation, rather than saying that 2% is the hard upper limit. and we do not want to see inflation's say -- is seeing a break below that. if the fed will move into an environment that is -- that has profound implications. it is the jay powell fed versus -- i don't think it is a jay powell fed versus a janet yellen said, it is broader than that. whether he is or isn't. i think that will be really important for ongoing sentiments toward the u.s. dollar. betty: i want to pull up the chart, it is the chart of the u.s. dollar and these declines. g #btv 6275. there is that great inflation debate. there is a sense of what can the fed tolerate here or not? i am curious, what else do you think is priced into this grim scenario in the dollar? in

. >>> jay powell will officially succeed janet yellen as fed chair. >>> and we'll tell you what steve mnuchin and wilbur ross are telling reporters on the ground in davos. it's january 24, 2018. "worldwide exchange" begins right now. ♪ >>> good morning a warm welcome to "worldwide exchange" on cnbc. i'm wilfred frost. let's get to the market picture. as we said in the open, the nasdaq and s&p closing at record all-time highs the nasdaq up 0.7% the s&p up 0.2% the dow was negative, but fractionally this morning pointing to a higher open for the dow and the s&p. just slightly for the nasdaq we got to the 2.6 level in terms of yields. just pulled back the last couple of days from that level, but rising again today 2.63 the yield on the ten-year holding nicely above the 2.6% level. dollar board for you, we lost about 0.2% yesterday the dollar is sliding significantly today. steven mnuchin did say on the ground in davos that a weak dollar is good for u.s. exports. it's partly that, but really just a continuation of the trend of a weak dollar we've seen recently in europe, we've got about