banks versus trade versus brexit. a huge week for economic data, and central banks face the backdrop of another u.k. election. the repo blowup isn't over. the bank for international settlements warns that the funding issue in september wasn't just a hiccup. welcome to "bloomberg daybreak" on this monday, december 9. i'm alix steel. in the markets, it is a very busy week on the abbott -- on the economic front, on the data front. s&p futures down by about 0.1%. euro-dollar is taking a little higher here, $1.10. yields lower in the u.s. by about two basis points. time now for the global exchange, where we bring you today's market moving news from all around the world, from hong kong to london, to new york and washington. our bloomberg voices are on the ground with today's top stories. in asia, hundreds of thousands joined hong kong's biggest demonstration in months in signs that demonstrations will continue into the new year. joining me is stephen engle. give us the update. you know, this has been a protest movement that is now into its six-month, and i have to say, there is a bit of protest fatigue. people are tired of the violence. people are tired of the vandalism. they are

banks to lend cash combined with a burst of demand from hedge funds for secured funding could explain a recent spike in the us money market rates the bank for international settlements said cash available to banks for short term funding all but dried up in late september and interest rates deep in the plumbing of the u.s. financial markets climbed into double digits so this is the problem with monopoly and basically having cartels running every single sector of the economy is they could cause chaos by just withdrawing. you know the liquidity and if if they want to act like cartels and basically a government service like either nationalize it or have free competition have to have actual competition because you can't run a pseudo market like this no you need competition to make a capitalist system. fair right i mean the more competition the better and when you remove competition and you remove diversity you end up with a motto mahna mahna monopoly and. risks become catastrophic so the u.s. is heading toward the abyss it's heading toward it's 1991 soviet union collapsed remember a friend dmitri orloff wrote the essay collapse gap and he said that the soviet union and a

that is according to new analysis from the bank for international settlement. n structural issues found, let's bring in katie. what we were told was two big events, treasury auctions, not to mention corporate tax payments. >> they say this is more than a temporary hiccup. some factors they cited our post crisis, the regulations make it so the banks have less ability to step into the market and provide funding. they also made the point that hedge funds are increasingly funding their investments through the repo market. so you have that added demand combined with banks not being able to lend as much. you are in this environment where these are structural issues at play. happened lasthey time, it was fairly shocking. everybody said it is just these two events coinciding, not a big deal, not systemic. but they say it might be systemic. when is the next flashpoint to watch out for? >> next monday, december 16. that is when we get those treasury auction settlements and those corporate quarterly tax statements. those were the two temporary factors that were, in large p

. >> the bank for international settlements says september mayhem in the market was not just a temporary that repo is an issue than the calendar and when there's this windowdressing around balance sheets and therefore more demand for cash, and that means people are already sensitive, worried about what might be the squeeze, and suddenly we get this report saying that there is a structural problem and that maybe the temporary hiccup we saw in september will not be resolved with the fed's recent operations in the repo market. one of the conclusions of the report is that people were less confident about managing these transactions, the banks were less well staffed and experienced for handling these type of transactions. jp morgan's ceo, jamie dimon, said it is actually regulations that prevented his bank from moving into provide liquidity when we did have problems in september. there are a lot of issues contributing to this. i think the report is coming out, even though it was a report that could have come out any time of year, it wasn't necessarily time sensitive. the fact it is coming out

a new report from the bank for international settlements, septembers mayhem in the u.s. as not just a temporary pickup. joins us now. i have been thinking about this for the longest time. there was a big overhaul of the repo market led by some of the biggest banks during the financial crisis. there used to be repo desks with 10 people on a desk. there are now two in many places. it is more than just a hiccup. >> that was the conclusion of the report. it is getting people worried. we know it is more of an issue over the year end when there is this window dressing, balance sheets and more demand for cash balances. at this time of year people are sensitive and worried about what might be the squeeze. i'm getting this report saying there is a structural problem and maybe the temporary pickups of september will not be fully resolved with recent fed operations. one of the conclusions of the report was people are less familiar about managing these transactions. the banks are less well staffed. there are also news from the banks themselves. itorgan ceo jamie dimon said is regulat

banks versus trade versus brexit. a huge week for economic data, and central banks face the backdrop of another u.k. election. the repo blowup isn't over. the bank for international settlements wasn't just a hiccup. welcome to "bloomberg daybreak" on this monday, december 9. i'm alix steel. in the markets, it is a very busy week on the abbott -- on the economic front, on the data front. s&p futures down by about 0.1%. euro-dollar is taking a little higher here, $1.10. yields lower in the u.s. by about two basis points. time

the latest market analysis from the bank of international settlements, the central bank for central banksave a grim report. they say the vital cog in the financial system is under threat from structural problems. joining us to discuss is dani burger. saying -- the it wants to a concentration issue. there are four banks which are vital for the repo market which is important and provides short-term funding, liquidity that helps market continue to go. because there are only four banks, they have shifted into treasuries from liquid assets. that means their ability for short-term cash is limited. hedge funds have been using the repo market for the short-term funding. you have a mismatch between supply and demand. what happened in september with the fed having to jump in, we need more than a temporary fix. it is a long-term structural problem. i should say that report is on the miss -- is ominous in december when we see seasonal liquidity. we could see a fire sale. nejra: thank you so much. first it was japan, then europe, now the scourge of stagnation could spread further. the u.s., u.k. and a

president of the european central bank christine lagarde even said that she sees a clear demand for stable coins while a new survey from the bank of international settlements showed 55 of 63 central banks are unlikely to issue a c.b.c. in the near 3 years nearly 70 percent of central banks are looking into issuing their own at some point in the future. and what more. were caught up with the managing partner of the botching founders fund who brought down the subject with artie's branch of war we began by asking him about france's move to explore additional currencies. so according to the bank of international settlements as you mentioned 70 percent of central banks that were surveyed are actually looking at doing a form of a c.b. d.c. or a central bank digital currency 50 percent of those are actually already working on proof of concepts and so there's a very clear case here for a lot of countries looking at it in the case of france what they're trialing is a wholesale c.d.c. so it's not for general citizens or for retail payments what they're actually looking for is actually creating a fission sees from the pay from a from a cost perspective and a risk per

when you talk about the central banks the bank of international settlements released a report citing an unwillingness by the big banks to lend cash accounted for the injection of billions of dollars in repo markets why are banks so reluctant to lend right now and this is a trend we're going to see moving forward as the state of the global economy remains in flux i mean when we're talking about good monetary policy here it doesn't seem like this is good monetary policy. well one reason is they don't have the funds to loan out but the other reason is the loans are not worth the risk i mean that's the problem if you make a loan you've got to get your money back and the interest rates are so low that it's probably not. and worth the risk why why take all that risk to get a tiny amount of return if you're putting all of your principle in jeopardy because the interest rates are too low the fed has got them too low it's keeping them too low to sustain these bubbles to prop up the phony economy and so now the federal reserve has to come in and create the money out of thin air because there's no legitimate savings to finance all these loans record defi

for more we're joined by our special relationship correspondent and. the state department is now claiming that israeli settlements in the west bank are legal under international law that so fast what secretary pompei o has said is that building these settlements is not per se inconsistent with international law per se does that mean either it is there isn't no no no this isn't black and white it's in what's called a purse gray area. that's a longstanding american foreign policy standard for when our allies are accused of violating so-called human rights international relations circles it's known as the doctrine. so we're letting israel play by a different set of rules that's not going to help broker a peace deal well according to pompei oh there will never be a judicial resolution to the conflict and arguments about who is or. right and wrong as a matter of international law will not bring peace so what will bring peace but war of course. lou all we need to do is give israel their military money and get out of the way and truck truck gets this that's why he's filled his cabinet with christian zionists like the $2.00 mikes on pay $1.00 pence. for them any atte

international law. we have just returned from the west bank and saw some of those roughly 250 settlements and outposts. but we also visited a brand-new city built by a palestinian for palestinians, high on a hill. ( ticking ) >> holy moley, look at this. >> this is it. this is the best the best. >> whoa! you've known adam sandler for longer than you remember. 30 years ago he was hired as a writer, and then cast member of "saturday night live." ♪ operaman bye bye we wanted to know why he left "snl," about all those movies, and why he chose this new one, a drama. >> i don't care. it needs to be changed. do it. >> but first-- >> that's called a perfect pass! >> the sand man wanted to play some pick up hoops. >> right on baby. ( ticking ) >> i'm lesley stahl. >> i'm bill whitaker. >> i'm anderson cooper. >> i'm sharyn alfonsi. >> i'm scott pelley. those stories and more, tonight, on "60 minutes." ( ticking ) before we talk about tax-smart investing, what's new? -well, audrey's expecting... -twins! grandparents! we want to put money aside for them, so...change in plans. alright, let's see what we can adjust. ♪ we'd be closer to the twins. change in plans. okay. mom, are