a government that does not keep borrowing and borrowing and borrowing and putting further at risk. what happened to that movement? that movement elected some of theserd people, you heard these people, don't you remember when president obama was president the republicans are say trillion dollars deficit for multiple years. every year there was a president obama wants to spend and borrow and spend tomorrow. i heard in my state, i heard it from the very people who today will vote for this monstrosity, some will actually vote for my a moment to give them cover. but then they will vote for the deal that will bring our country pre-what happened to these people custome? they're not very much into self-examination, or interested in the debt now that republicans are complicit. but before we make this about republicans, remember there is not a democrat in washington that cares about the debt. the difference between the parties, democrats are honest. they are very. honest, they're all over the state tried to get free healthcare to illegal aliens. they'reli all over talk about giving medicare

we borrow the money. right now, as i explained to pedro, we have a debt in this country of nearly $22 trillion. we borrow $22 trillion and we have to pay interest on that. that is where, when we are --ning deficits, we have to we have revenues coming in, but they are not covering expenditures that we have to borrow. i disagree with you. we are not stealing from social security or medicare. those programs have their funds, their trust funds, they are spending the money that comes into them. i think when you talk about obamacare having induced spending -- having reduced spending and medicare, it was the fact that the expansion of particular benefits reduced the pand onneeded to ex medicare. to first and foremost, answer your question, where's this money coming from? taxpayers and borrowers. about 50%, today, of the money we borrow, thank you very much, is from investors overseas. i have a friend that's a former cbo director that likes to say we are the best looking horse in the glue factory. we are still lo

we borrow the money. right now, as i explained to pedro, we have a dead in this country of nearly $22 trillion. we have borrowed $22 billion. we have to pay interest on that. that's where, when we are running deficits, we have to, besides revenues that come in, the revenues are not covering the expenditures, so we have to borrow. carol, i disagree with you. we are not stealing from social security or medicare. that was programs have their funds. the other trust funds. they are spending the money that comes into them. i think when you talk about obamacare having reduced spending in medicare, it was more of the fact that the expansions of particular benefits reduced the amount that was needed to expand on medicare, whether that is expansion of the medicaid program. first and foremost, to answer your question, where is this money coming from? taxpayers and borrowers. by the way, about 50% today at the money that we borrow, thank you very much, is from investors overseas. i have a friend, a former cbo, who sa

and it's very expensive and high to borrow in this part of the world at the same time what about ghana's currency to see. how's it holding up following this announcement from the central bank well for most parts of this month it hasn't really gain much value compared to foreign currencies and this decision has not helped in a way really because the value continues to drop and so we are yet to see whether in the coming days there could be some value in gained by the cd but currently it doesn't gain much value ok i like bt for us there in a crying gonna thank you very much for the update. political chaos reigns in sudan the transition to democracy is doubtful despite a power sharing deal between the ruling military john to and civilian protesters now there are fears the uncertainty will be too economic collapse. on the surface at least life goes on in khartoum. at a shopping center in the sudanese capital local residents continue to browse for the everyday essentials but the times are far from normal protests of rage here for the past 7 months 1st against al bashir then against the ruling

taxpayers and borrowers and by the way about 50% today of the money we borrow thank you very much is from investors overseas. i have a friend who likes to say we are the best looking horse in the glue factory. thank you very much that we are still looked at as a good investment and people are willing to buy our t-bills and invest in this country. >> of your from twitter this is patrick court says one will interest on the debt exceed medicaid or defense spending on the basis. >> very good question is about 10 years you will see that expand the fastest growing, this is all projections of course it depends upon interest rates. we know today interest rate will interest rates are very low level. i believe today. if those interest rates start to go back to what we call normalized interest rates backup into the 3.5 percent fastest growing component of the federal budget will not be social security, it will not be medicare, it will not be defense, it will simply be paying the interest on that accumulated $22 trillion in debt. about 14 to 15 percent in fact, figures in just yesterday that loo

by 0.25 ‘x: to cut the cost of borrowing by 0.25 %toi.5% to cut the cost of borrowing by 0.25 %toi.5% and to cut the cost of borrowing by 0.25 % to 1.5% and this came as a surprise to many economists who expected this rate reduction in august. in its bid to further jumpstart august. in its bid to further jumpsta rt the economy, august. in its bid to further jumpstart the economy, analysts are saying the central bank still has a bit of wiggle room to ease more, cut more, and there will also be more pressure on president moonjae—in to pass a stimulus package and to de—escalate regional tension. a conference of factors could hopefully revive the south korean economy. ben. rico, thanks very much. good to see you as always. we'll speak again soon. now let's brief you on some other business stories. the number of electric car models available to european buyers is expected to triple by 2021, according to the european federation for transport and environment. it says in two years, carmakers will have 214 electric and hybrid models on sale, up from 60 at the end of 2018. a collection of r

versus not borrowing. if you had honest interest rates, i don't think the c-suites would be borrowing trillions of dollars to buy back their own stock. they are loading up their balance sheets with debt that will carry for the indefinite future in order to buy some shares back today and goose their earnings by the qu arter. that is not productive investment. we are living a lie. household are borrowing too much. we had a morning in 2008. households today have 15.6 trillion in debt, one trillion more than back then. business has 50% more debt than back then. and we don't even have to talk about the government. this is the point. interest rates need to reflect economic reality. as long as they are being deeply suppressed by the fed, you are essentially stimulating wall street, creating the greatest bubble in history. when it collapses, and it will, 2000, 2007, we will have another crisis. david: really good to have you, david. former reagan budget director david stockman. a headline from the white house. the

how much can t average borrower save? about $266 per month. most borrowers tend to refinance afterer s years, but those who took out their mortgages last year could benefit most, about 1.5 million ofthem. not surprise morioage applicns to refinance were up last week according to the mortgage bankersn. associat while refinancing can lower monthly payments, it's also an opportunit to take cash out of your home, but very few people are doing that. home equity levels areri very hh t now, but borrowers took out just 4 billion collectively. that was the lowest amount in four years an less than 1% of what was available. today's borrowers seem more conservative, which makes sense given what happened the last time homeownerssi started their homes like atms. i'm diana olick in washingtone >>> and befe go, let's take a look at what was a winning day on wall street and in some cases a record day. the dow rose 117 points to ,717. th nasdaq rose about 85 and the s&p 500 climbed to a record. >> welcome back, by the way. we misse you last week. >> thank you v

before from its partners and is borrowing now from the markets roughly 70 percent of that money goes towards repaying all debt turning over old debt about another 20 percent has gone to refinancing the banks because greeks have been failing to honor their loan commitments and repay their loans to the private sector and so the banks have been in danger of default only 10 percent of what greece borrowed from its partners and is borrowing from it's from the markets has gone into the real economy so it's not as though greece can now borrow large amounts and spend freely on the domestic economy and stimulate growth in that way it doesn't have the freedom to do that this is a symbolic freedom it signals that greece is bankable again to the international markets and it has a long road ahead of it before it convinces those markets that it is sustainably bankable this is something i discussed earlier with my colleague. really these a seasoned journalist and political commentator and this is how he described the gambit that faces new democracy conservative party leader. if he does take the rei

we go out and borrow it. it doesn't arrive in an unmarked bag, we are operating at a chronic and exploding deficit and borrowing to make up this difference. i'm a returney. i served from 2002 to 2007 and i tend to match up my experience versus then and now. 12-year absence. half a generation. when i left congress in early 2007, our national debt stood at $9 trillion, $9 trillion. today, our national debt stands at $22 trillion. and by the way, if you want a harrowing view of something, look at u.s. debt clock and watch the numbers turn over as rapidly as anything you can see. and what you can see from studying the debt over time is an incredible increase over on the right side of this chart. $22 trillion today. that's $68,300 for each and every citizen of this country. $1883,000 for each taxpayer. 230 years in our country's country to get through the national debt of $9 trillion. but just 12 years later, increasing by 250% to $22.5 trillion? again, we just can't look at the absolute numbers because they don't

go again and so some of these structural problems within the system makes it difficult for people to borrow and it's very expensive and high. in this part of the world at the same time what about ghana's currency the cd how is it holding up following this announcement from the central bank well for most parts of this month it hasn't really given much value compared to foreign currencies and this decision has not helped in any way really because the value continues to drop and so we are yet to see whether in the coming days some value being gained by the cd but currently it doesn't gain much value ok i like bt for us there in a crowd gonna thank you very much for the update. political chaos reigns in sudan the transition to democracy is doubtful despite a power sharing deal between the ruling military john to and civilian protesters now there are fears the uncertainty will be too economic collapse. on the surface at least life goes on in khartoum. at a shopping center in the sudanese capital local residents continue to browse for the everyday essentials but the times are far from normal prot

to first-time home borrowers. this equates to a $625 savings off the current premium structure on a $250,000 mortgage. the hope is by making such a discount mandatory, more first-time homeowners will seek out financial literacy counseling and produce better outcomes for traditionally at-risk group of homeowners. the bottom line is that f.h.a. is a valuable tool to help expand the universe of mortgage credit in our housing system and we ought to be doing all that we can to make sure that we are using our limited public resources to encourage all borrowers to be well prepared for the commitment of home ownership through financial counseling or any other effective means of creating more stable and reliable borrowers. i reserve the balance of my time. the speaker pro tempore: the gentleman from tennessee reserves the balance of his time -- kentucky reserves the balance of his time. the gentlewoman from california is recognized. ms. waters: i yield to mrs. beatty, the chair of the subcommittee on diverse and -- diversi

we live on credit our homes cars schools and government expenditures are financed by borrowing. data has become the engine of our growth the lifeblood of our global economy. it's an economic machine impacting the global economy with more and more date being produced day in and day out. this debt machine has grown to epic proportions and now seems to have spiraled out of control public dicked the debt held by governments is soaring. the eurozone is having a much harder time than other economies emerging from the crisis of spiraling debt why and what are the solutions. to debt machine once you're on it trying really hard to deal let's see if i must use them to look good. but on the. create a system of credit which would actually be sustainable which wouldn't destroy the planet as the current machinist right. idea can that complex is one problem to any piece on duty to transform come on adequacy of equanimity. as you came out our 2nd in opus paramedics on it the producer live where problem sick over to that somebody to discern the reactor and then you guna miters a power and i deny

borrowing, household and business borrowing -- households in very good shape overall. i will come back to business borrowing. leverage and financial system is low. and funding is low. overall, financial stability vulnerabilities are moderate. the place that gets all of the attention right now, business borrowing. we look very carefully at that. what happened with business borrowing is the loans have moved off of the balance sheets of the banks into market based vehicles which tend to be stably funded, but nonetheless, it was clear that the highly leveraged business sector could act as an amplifier to a downturn. we are watching it carefully. the u.s.ok overall at financial system, what you see is a high level of resilience. much higher than it was before the crisis. that is something to take comfort from. all of it gives us the ability to use monetary policy for its purposes and of rely on supervisory and regulatory tools to keep the financial system resilient. you are not doing something today to help today and then it is going to cause problems down the road -- you a

and the banks got rich on the interest paid by borrows . credits became the primary fuel for growth but how does created work. banks possess only a small amount of the money they lend money is created by private banks on a simple request for credit and a promise of repayment. the sum is raised as soon as the loan is repaid that is a huge thing and it's. how we've always created money from the beginning and it's a wonderful thing if you have a banking system that can create credit like that is a very good thing. because it means you can create finance in a crisis you can bail out a id you could finance climate change you could you can finance a war and that's how we've always done this the public hasn't understood that the public thinks that money comes from me working hard if you know for as you know during the soil working hard and at the end of the month i am money. a lot wrong the bali bomb of it so the it that a 1000000 people or so the renewable. become left congress deal is going to bury the view of an awful. void that with a 10000000

they are borrowing all of it from our children. they have not paid for a dollar of it, not one dollar. they're borrowing it from the pages that are here. they're borrowing it from the children of cops, teachers, and firefighters. that's who they're borrowing it from to give tax cuts to rich people, to make our economic inequality greater. congressman mick mulvaney, not the president's chief of staff talking about the obama administration's budget at the time. it's hard to explain how detached from reality that is, to think that the country can spend another $1.6 trillion when it doesn't have the means. it means either you haven't been paying attention or you don't care. he's the president's chief of staff. he's the president's budget director. if that was runaway spending, how is this not runaway spending? the junior senator from texas said the -- said the debt is out of control and is jeopardizing the future of our kids. i have two little kids who are 4 and 2 and the idea of handing them a $16 trillion debt i think is immoral. rea

in terms of household borrowing, household business borrowing is the second thing, households are in very good shape overall. i will come back to business borrowing. leverage in the financial system is low and funding risk is low. overall, staff's view has been and my view has been that if you look overall, financial stability vulnerabilities are moderate. the place that gets all the attention right now, a lot of attention, is business borrowing and we look very carefully at that. what's happened within this borrowing is the loans have moved off the balance sheets of banks and into market-based vehicles which tend to be stably funded but nonetheless, it's clear that a highly leveraged business sector could act as an amplifier to a downturn. we are watching that very carefully but again, i think if you look overall at the u.s. financial system, what you see is a high level of resilience, much higher than it was before the crisis. that's something to take comfort from. i think all of that gives us the ability to use monetary policy for its purposes and rely on, supervisory andeg

yes, borrowing has come down now before pre—crisis but the national debt, the accumulation of borrowing is much higher than pre—crisis. now it is important that we have a discussion as to what that means and when you think about fiscal strategies that have that debt falling in the medium to long term so that it is not going on an upwards unsustainable path. that sounds familiar but we cannot discuss it anymore at the moment. thank you, ben is —— ben zaranko. eu leaders meeting in brussels remain divided over who should get the eu's top jobs, and talks have been suspended until tuesday. they are arguing mainly over a successor to commission president jean—claude juncker. they had hoped to get a deal on sunday night. diplomats say summit chair donald tusk proposed dutch centre—left politician frans timmermans to succeed mrjuncker. hundreds of thousands of people in new york have lined the streets to watch the city's pride parade. the event marks the 50th anniversary of riots in 1969 between police and customers at the stonewall inn. a smaller unofficial march has also been held.

a warning that a no—deal brexit could mean a surge in public borrowing. the public finance watchdog says leaving without an agreement could add an extra £30 billion a year to the deficit. that's largely because you have less growth in the economy, which means less income tax receipts, you also have things like weaker house prices, less property transactions so you have less capital taxes as well. it comes as the eu's chief brexit negotiator tells the bbc that britain will have to face the consequences if it leaves without a deal. this document is the only way to leave the eu in an orderly manner. and if we just left, if we tore up the membership guide? the uk would have to face the consequences. we'll have the latest live from westminster. also this lunchtime... donald's trump supporters chant "send her back" as he again criticises one of the congresswomen he says hate america. omar has a history of launching vicious anti—semitic screeds. crowd chanting: send her back, send her back... the younger brother of the manchester arena bomber appears in court

for the state borrowing rules. and 27 billion and boris johnson the state borrowing rules. and 27 billion and borisjohnson seems to have spent that, beyond that and what's he going to do to get my money and potentially risk conservatives reputation for economic credibility or is he going to rack up taxes, is not going to seem very to rack up taxes, is not going to seem very likely either. there is very many promises but very little details, but we can see whether this is just about as you say, that, we need to deliver on our promise. it's almost like there might be another general election. there are some suggestions that matt hancock did have a deal in place. janik will be interesting to see. the guardian has a very interesting piece here, quoting dominic cummings, saying that they do not care about the nhs. this is interesting in the same week that he said to the cabinet ministers that there is a one strike and you're out policy for any leaking whenever we get a lick of something that he said in 2017. i mean, look, he is a divisive character. remainders do not like him, t

and the banks got rich on the interest paid by borrowers. credits became the primary fuel for growth but how does created work. banks possess only a small amount of the money they lend money is created by private banks on a simple request for credit and a promise of repayment. the sum is raised as soon as the loan is repaid that is a huge thing and it's. how we've always created money from the beginning and it's a wonderful thing if you have a banking system that can create credit like that is a very good thing. because it means you can create finance in a crisis you can bail out a id you could finance climate change you could you can finance a war and that's how we've always done this the public hasn't understood that the public thinks that money comes from me working hard if you know for as you know during the soil working hard and at the end of the month i am money we are all wrong the bali bomb get rid of it so the let that a 1000000 people off of the renewable. become leftovers d.l. says can bury the view of a national. divide that with

but with this scheme with credit unions, you borrow £500, nine months you pay back £564. it is a huge saving compared with payday loa ns, huge saving compared with payday loans, or doorstep lenders which are also very expensive. it is the cheapest way. and once mothers hear about it, what i‘m told is they put it on facebook, and the clients come in. several credit unions have told us in the north of england particularly that their demand for these accounts is rising. they are in the thousands now, and they have seen a in the thousands now, and they have seen a big growth in this because it is the cheapest form of borrowing for low income families. the money effectively is coming from the government. have they taken a position on whether it is a good thing or not? now, they haven't. i asked them and they said, child benefit is a contribution towards the cost of raising a child, we give them the child benefit, it is the pa rents‘ them the child benefit, it is the parents‘ choice on how to use it. hmrc that pays child benefit has no view on this. they don‘t count how

borrowers in emerging markets are issuing debt at a record pace. em sovereigns have collected over 33 billion euros from new bonds this year, more than the amount raised in any four years previously. sticking with europe, italy, the latest country to lock in lower borrowing costs. the nation receiving 17 billion euros in orders. a 3 billion euro offer of 50 year bonds. i want to stay with europe. blackrock proving that proving there are still some bond bulls left in the market. >> the ecb is likely to deliver what they say they will deliver at the central meeting. in fact, maybe even more. as odd as it may sound, we have a near-term favor of bunds over treasuries because we believe the ecb is more likely to deliver the full amount of priced in monetary policy easing. jonathan: the key line for many of you, as odd as it sounds, you should have seen the faces being pulled when that was being played out live on a program. your thoughts on that bunds , outperforming treasuries? matthew: we would take the opposite side of the trade. not to say that we a

after the government has borrowed and left, you have the corporate sector. out deal.rowding at this point, i think a lot of potential for the deficit alone, equally important to what is happening on the street. yvonne: you mentioned a little bit about the tax collections. taxre expecting lower collections, especially gst. how do you think the finance minister will fill the gap to fund these welfare programs without increasing the tax burden on programs here? see taxesar, we did fall short of the estimates. there is some concern there. the monthly data that is coming in, there have been some changes as well in structure that suggest the rupee might not be very strong over the next months as well. i think the balancing act will be, if there are lower tax revenues, to balance it out with higher nontax revenues. divestment -- i had push aheadtment -- with divestment, privatization. you could get a windfall. that, significant revenue, i think it will not be available in the short-term it it has to work its way through and it will take a couple of years before we

now an interest rate cut could result in lower borrowing costs for consumers and businesses on all types of loans but might also mean lower rates on your savings accounts as well. >>> shares of apple are higher after the company reported earnings that beat wall street forecasts even as sales of the iphone continue to slow down. in fact, it is the first time since 2013 that the iphone did not account for a majority of apple's overall sales, but the company has offset that weakness with growth in just about everywhere else, growth in ipads, macs and services, which includes, by the way, the app store and apple pay as well. apple also announcing it there launch its new credit card with goldman sachs sometime in august. >>> and comcast has rolled out a new parental control feature to help you manage your kids' wifi access. if you are an xfinity wifi user or xfi user you can set time limits for all your kids devices at once. when they reach the limits xfi will boot them and their gadgets off the network. previously that cut off everyone in the house as well. comcast is the parent company of n

all of these obr numbers hinge on a scenario borrowed from the international monetary fund. they show a hit to the economy, a recession, and then a slow recovery. and within that by next year, a fall in the value of the pound versus the euro by 10%, a fall in house prices by 8% and prices rising faster than wages — a real terms wage cut again. so is this all doom and gloom? the numbers don't take into account future trade deals. one boris johnson supporter said the numbers were rubbish in, rubbish out, but they could actually be worse. the government is doing these test runs of parking trucks at a kent airfield. the obr assumes there will only be minimal disruption from new customs procedures at dover, so it and the chancellor say these numbers aren't even a worst—case scenario. this assessment comes at a time when the economy is already slowing, at least partly because of businesses' no deal preparations. the question for the incoming administration of mrjohnson or mr hunt, due in days, is whether they believe in independent advice, whether they believe in their own exp

would happen to public borrowing, underyourscenario, about what would happen to public borrowing, under your scenario, what would be the other impacts in terms of the economy? the scenario we looked at, the main effect on the economy is the creation of more trade barriers with you, and the ongoing uncertainty that would affect things like business investment. that is what delivering the hit to the economy at the sharpest over the first couple of years. the implications for public finances also depend on things like what's going on to prices and what's going on in particular financial markets, asset markets that are important to tax revenue. anything that hits the housing market, either house prices or the frequency with which we buy or the frequency with which we buy or sell houses, that affect stamp duty revenue and things like inheritance tax, it is those two things mainly. the smaller economy and the effect on asset prices and financial markets. thank you, robert chote, chairman of the office for budget responsibility. prosecutors have alleged the younger brother of the manchester ar

we continue to see that ongoing borrowing trend. it is much more tepid in the eurozone than here in the u.s., but big, healthy -- large corporations and entities, governments are very incentivized to basically continue to borrow, continue to lever up. that trend does not look like it is about to change given the existing backdrop. jonathan: in u.s. high-yield, over the last few months, you have been less constructive. you have come on this program and talked about being a seller. less constructive in the united states. what about europe? with these technicals, with the idea the ecb is setting up another round of bond buying, what are your thoughts? bob: i think you have to run the technicals for a while. when i listen to draghi, and the market started to rally, i thought, we missed it. he kind of bobbled it, we had a backup, and that was our opportunity to get in. we use that backup to get into the market. i think yields are going a lot lower. i think he has set the stage to bring yield lower. i think everyone in europe is scramblin

with household borrowing household business borrowing households are in very good shape overall. leverage in the financial system is low in funding risk is low. my view has been if you look at the overall financial stability is moderate. the place that gets all of the attention his business borrowing and we look very carefully at what has happened and the loans have moved off of the balance sheets into the market based vehicles which seems to be stably funded. with a highly leveraged business sector we are watching this very carefully. but overall the us financial system it is much higher before the crisis is something to take comfort from and it gives the ability to use monetary policy supervisory and regulatory tools to keep services resilient. >> so you're not doing something today and cause problems down the road cracks you are not worried about that quick. >> a very few things i don't worry about at all left off so of course we monitor. every quarter we have an extensive briefing on financial stability and we had that yesterday. look at this with an ongoing basis we have a g

the overall government borrowing? it's about 80% of gdp or thereabouts. 83%, but it is 1.8 trillion. sure. one of the existing rules is... we would continue to reduce our national debt... you accept it would limit how much... the headroom now, to take some of that cash and invest it in things that i think it really matter to people, such as levelling up spending on education around this country. such as investing in police. i've talked earlier... you want to spend quite a lot. 20, 30 billion... it's nothing like that sum but we don't even reach the headroom. would you stick to the second fiscal rule? we will be setting out our spending plans... would you stick to the... 0ur budgetary plans... do you know what the second fiscal rule is? we will be setting out all our plans on any number of fiscal rules in the course of the budget and the spending review. the second rule is that you can't borrow more than 2% of gdp. we will be setting out our plans in the course of the... i repeat, we will continue to bear down on our s

we continue to see that ongoing borrowing trends. much more tepid in the eurozone than here in the u.s., but big, healthy -- large corporations and entities, governments are very incentivized to basically continue to borrow, continue to lever up. that trend does not look like it is about to change given the existing backdrop. jonathan: in u.s. high-yield, less constructive. you have talked to me multiple times about being a seller. less constructive in the united states. what about europe? with the idea the ecb is setting up another round of bond buying, what are your thoughts? bob: i think you have to run the technicals for a while. when i listen to draghi, and the market started to rally, i thought, we missed it. kind of bobbled it, we had a backup, and that was our opportunity to get in. we use that backup to get into the market. i think yields are going a lot lower. i think he has set the stage to bring yield lower. ishink everyone in europe graham went to find positive yield wherever they can get it. i think he was brilliant, by

a global trend to cut interest rates catches on south africa's central bank is next to low borrowing costs to bolster the economy and bring relief to a shrinking middle class. not much of a catch overfishing and climate change sap lake malawi vital source of food for the region. and fin tech successful fight for funding a building based on line back becomes germany's highest value. and pain for us all and that's to business south africa's economy is contracting so is its middle class that could cause tension. in south africa reserve bank has cut interest rates from $6.00 and $3.00 quarters to 6 and a half percent it joins a string of central banks across emerging markets that are producing borrowing costs global risks are high and domestic demand in south africa is low indebted consumers are holding back from spending. is an estate agent in johannesburg. he sells apartments to the upwardly mobile in. one of the trendiest suburbs in the inner city currently rent out a property that i used to live in here. i heard that b. and b. is quite good in the area so i thought you know what the

government hasn't blen to borrow since march when a cap on borrowing took effect that pmpted the latest talks. the debt limit again. you wrote a book on it, "the price of politics." bob: unfortunately i d and i sounds like an abstraction but it's not. it actually can sink the economy and people don't rlly get that. i think lots of people on the hill really don't get that. so it's a dangerous time and i think we may look back on this summer and a lot of the skirmishes, though important, the real issues are financial stability and possible war. robert: why does it matter? would interest rates spike? the stock market rattled if the debt limit is not extended? bob: yes because treasury bills aren't as valuable because they're not going to pay the interest bec allowed to pay the interest. and you've got a whole financial system in the countrynd the world built around that so -- but igr, it's not something that somebody's going to go to the barricades over. >> both these issues, raising the debtng cei and reaching an accord on immigration, we're not able to d either one of them easily and it'

we continue to see that ongoing borrowing trend. it is much more tepid in the eurozone than it is here in the u.s., but big, healthy -- large corporations and entities, governments are very incentivized to basically continue to borrow, continue to lever up. that trend does not look like it is about to change, given the existing backdrop. jonathan: in u.s. high-yield, over the last few months, you have been less constructive. you have come on this program and talked to me multiple times about being a seller in and around a spread of 375 basis points. less constructive in the united states. what about europe? with these technicals, with the idea the ecb is setting up another round of bond buying, what are your thoughts? bob: well, i think you have to ride the technicals for a while. if i listen to draw the -- when i listen to draghi, and the market started to rally, i thought darn, we missed it. he kind of mingled he kind of , bobbled it, we had a backup, and that was our opportunity to get in. so we used that backup to get into the m

borrowing very large sums to pay barely reachable prices. those who enjoyed the decade—long rise in house prices may fear a house price crash, but many younger people who cannot afford to own their own home would welcome it. andy verity, bbc news. now on bbc news, sport today. hello, i'm gavin ramjaun — and this is sport today live from the bbc sport centre. coming up on this programme: royal portrush gears up for the open championship as the oldest golf major returns to northern ireland for the first time in 68 years. nigeria take third place in the africa cup of nations, after a 1—0 win over tunisia. and australia's caleb ewan celebrates a first stage win on the tour de france — as the race moves into the pyrenees. welcome to the programme. the fourth and final golf major of the year gets underway later. it's the 148th open championship — with the italian francesco molinari defending the title he won at carnoustie last year. this year's championship take place at royal portrush in county antrim as the open returns to northern ire

and borrowing and borrowing and putting us further at risk. what happened to that movement? that movement elected some of these people. you have heard these people. don't you remember when president obama was president, the republicans all clamoring and saying trillion-dollar deficits for multiple years. every year they were saying president obama wants to spend and more owe and spend and borrow. i heard it in my state. i heard it from the very people who today will vote for this monstrosity. some of them will actually vote for my amendment to give them cover. they will say oh, yeah, i was for the paul amendment, but then they are also going to vote for the deal that will bankrupt our country. what happened to these people? they all thought debt was bad when it was president obama's debt, but they are not very ecumenical. they are not very much into self-examination. they are not interested in the debt now that republicans are complicit. but before we make this about republicans, remember that there is not a democrat in washington that cares a

they have cut the cost of borrowing to i.5%. why? it isa the cost of borrowing to i.5%. why? it is a sign that the central bank needs to stimulate the economy and get south korean companies to spend and borrow but why now? economists thought this announcement was going to be made in august as everybody is waiting for the said decision. tonight reasons, concerns of the us china trade were and the impact this is having on countries like south korea which are export driven, and china is of course south korea's biggest trading partner. exports are therefore getting hit as a result. the other reason is the other trade dispute between south korea and japan. these two countries have had long—standing tensions but they have got worse lately as a result of japan announcing tighter restrictions on exports in three key materials used in semiconductor chips and smartphones and this is another massive headache for south korean companies, especially firms like samsung who hold a big part of the market. thank you. global stocks were unnerved on thursday following a set of weak—looking e

borrowers in emerging markets are issuing debt in euros at a record pace. em sovereigns have collected over 33 billion euros from new bonds this year, more than the amount raised in any four years previously. and sticking with europe, with italy, the latest country to lock in lower borrowing costs. the nation receiving 17 billion euros in orders. a 3 billion euro offer of 50 year bonds. i would like to stay with europe. blackrock proving that there are still some bond bulls left in the market. here is what he had to say. >> the ecb is likely to deliver what they say they will deliver at the central meeting. in fact, even maybe even more. as odd as it may sound, we have -- we, in the near term, favor bunds over treasuries because we believe the ecb is more likely to deliver the full amount of priced in monetary policy easing. jonathan: the key line for many of you, "as odd as it sounds." you should have seen the faces being pulled when that quote was being played out live on the program. your thoughts on that, bunds outperforming treasuries? matthew: we woul

a global trend to cut interest rates catches on south africa's central bank is next to lower borrowing costs to bolster the economy and bring relief to a shrinking middle class. up much of a catch overfishing and climate change sap lake malawi vital source of food for the region. and fin tech successful fight for funding a building based online bank account is germany's highest value stuff. for us all and that's to business south africa's economy is contracting so is its middle class that could cause tension. the south african reserve bank has cut interest rates from $6.00 and $3.00 quarters to 6 and a half percent it joins a string of central banks across of merging markets that are producing borrowing costs global risks are high and domestic demand in south africa is low indebted consumers are holding back from spending. is an estate agent in johannesburg. he sells apartments to the upwardly mobile in. one of the trendiest suburbs in the inner city currently rent out a property that i used to live in here. i heard that quiet is quite good in the area so i thought you know what we thi

much more still ahead on the program looking at my more and more kenyans using mobile phone apps to borrow money ending up on the government's credit blacklist. and no peaceful puerto rico's governor who's been holed up in his mansion for a week since his private messages when the. helo that knows about picture across much of central and southern europe to the north we haven't ever low pressure we've got cloud even some thunderstorms you can see that cloud working for eastwards in the last few hours out western regions of the southwest it is about the heat the temperatures only increase not just on the increase but actually well above the average 5 degrees above the average in london on monday $33.00 in paris a very warm day even warmer day 36 celsius in paris that is 12 degrees above the average for this time of year feeling very hot and of course that's a very high temperatures you need to really take care out and about that so warm as spreading across central regions but then again about 30 degrees celsius not so on monday because we have then got this cloud still attached this front wo

borrowers in emerging markets are issuing debt in euros at a record pace. em sovereigns have collected over 33 billion euros from new bonds this year, more than the amount raised in any four years previously. and sticking with europe, with italy, the latest country to lock in lower borrowing costs. investors showing their appetite for duration. the nation receiving 17 billion euros in orders. a 3 billion euro offer of 50 year bonds. i would like to stay with europe. blackrock proving that there are still some bund bulls left in the market. here is what he had to say. >> the ecb is likely to deliver what they say they will deliver at the central meeting. in fact, even maybe even more. as odd as it may sound, we, in the near term, favor bunds over treasuries because we believe the ecb is more likely to deliver the full amount of priced in monetary policy easing. jonathan: the key line for many of you, "as odd as it sounds." you should have seen the faces being pulled when that quote was being played out live on the program. your thoughts on that, bunds outper

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the rate affects how much it costs to borrow money. in theory, lowter rate, loans cost less and the economy churns faster. this time around, maybe not so much because rates are already very low. historically low. global growth is down obviously. but the u.s. economy is doing quite well. there's little to no inflation to speak of. nothing near the 2% target. lowering interest rates could increase inflation. but what if? what if anything big happens to shock the world market? you don't know till you know. something related to oil or conflict or natural disaster and the fed needs to lower rate in response? in the great recession, rates were forced way down to stop that incredible plunge. now there's not much lower to go. not much room to work. certainly some people in some companies could benefit regardless and we'll explain why in a minute. the potential down side is there. the elephant in the room, the president's been pressuring the fed to lower rates. the fed is independent. the president has no power there in theory and historically

we have needed to tighten our belts to borrow nests. it is about choices, when the government thinks about balancing the budget, ensuring we can keep on top of daily spending, it has options. it could have chosen not to reduce tax for the top payers, not to reduce corporation tax, to increase pay for public service workers. it could have opted to increase taxes. it is about their choices. when we look at where we are in terms of public finances, the chancellor says we have headroom, the capacity to borrow more, even with in —— and we would argue there isa with in —— and we would argue there is a case for borrowing beyond that to stimulate the economy. the capacity to do this is there but it requires the government to make the right choices. what is worrying is what we are hearing from the leadership contenders suggesting their priorities are off, talking about tax cuts for those better off when they could be talking about increasing the pay of public sector workers. they would say they need to promote and boost enterprise, in or

is fine you can borrow more money. the problem -- and larry spoke about it a little bit earlier in your show. the fact that you've got negative interest rates in europe so really what that means is if you've got no issues, you can borrow money at zero if you've got issues, you can't borrow money it sort of becomes this market of have and have-nots. in europe we're lending at 10% to 12% now, if somebody is borrowing when they've got no issues at zero, the only reason they're paying 10% is they've got a situation and we're coming in and we're going to have all the collateral that's there, but you're getting massively overpaid for that. >> you're doing the same thing that the banks here are doing, you're saying, where you're not going to loan to them either unless you get the collateral? >> that's exactly it. >> so would it be a good short on office space in london and asia >> yeah, because the minute rates start moving up, real estate has to go down because your cost of capital is going up but i just don't know when that

government hasn't been able to borrow since march when a cap on borrowing took effect that promptedhe latest talks. the debt limit again. you wrote a book on it, "the price of politics." bob: unfortunately i did and it sounds like an abstraction but's not. it actually can sink the economy and peoe don't really g that. i think lots of people on the hill really don't get that. so it's a dangerous time and i think we may look back on this summer and a lot of the skirmishes, though important, the real issues are financial stability and possible war. robert: why doe matter? would interest rates spike? the stock market rattl if the debt limit is not extended? bob: yes because treasury bills aren't as valuable because they're not going to pay the interest because the not allowed to pay the interest. and you've got a whole financial system in the country and the world built around that so -- but i agree, it's not sething that somebody's going to go to the barricades over. >> both these issues, raising the debt ceiling and reaching an accord on immigration, we're not able to do either one of t

we continue to see that ongoing borrowing trend. it is much more tepid in the eurozone than it is here in the u.s., but big, healthy -- large corporations and entities, governments, you know, are very incentivized to basically kind of continue to borrow, continue to lever up. and that trend does not look like it is about to change given the existing backdrop. jonathan: bob, you have been constructive. you have talked to me multiple times about being a seller. less constructive in the united states. what about europe? with these technicals, with the idea the ecb is setting up another round of bond buying, what are your thoughts? bob: well i think you have to , run the technicals for a while. when i listen to draghi, and the market started to rally, i thought, darn, we missed it. maybe he will mingle at the press conference, and he did. he kind of bobbled it, we had a backup, and that was our opportunity to get in. we used that little backup to get into the market. absolutely. so i think yields are going a lot lower. i think he has se