has sent a letter to tim geithner and to ben bernanke he. and he said basically back off and then from that point on eric holder who was the attorney general that time basically backed down and not only backed down but then entered into ultimately a deferred prosecution agreement in which any number of immunities were granted to h.s.b.c. in those communities are quite serious because even the sitting president of the united states legally does not enjoy the immunities that h.s.b.c. was reminded in a different prosecution agreement this is incredibly important during the days of terrorism and the rise of terrorism especially in the united kingdom and in london where folks are asking themselves why do we have all this terrorist activity suddenly and there's a direct link to the banks and there's a direct link to his b.c. because they were directly involved in financing terrorism and yet the letter that you refer to here is a copy it's available online it's dated september tenth of twenty twelve it's to ben bernanke the chairman of the federal

the same thing happened when ben bernanke started to talk about tapering qe. r and then said that bernanke was misinterpreted. the ecb taking its lessons from the fed, seeming to have put out the word rather quickly, don't overreact. the interesting thing, though, when you talked analysts and get the notes from the trading desk this morning, they know believe the walk back on a longer-term basis. they really do seem to be accepting the fact that yeti of ever increasing accommodation from the ecb is just about over. is how the market thinks right now, validating what everyone is already thinking area i want to thank margaret o'rourke. the ecb with a bit of a walk back. -- mark or rourke. >> the fact is that the economy is getting better. as conditions get better, just to keep policy at the same level, you have to tighten. the initial read that you will see this type of policy out of europe is consistent. it seems to be mario draghi's comments lining up with something earlier in the week where he talked about the fed continuing to tighten because of easy financia

they put in rules like the dodd-frank bundle of rules, even ben bernanke said you know what?s too complicated. we can't even figure out how much it's going to cost the u.s. economy. jim diamond asked ben bernanke what's it going to cost? it's too complicated. we don't know. that was the obama era. go ahead. >> yeah. exactly. i think i remember reading how many pages that document was. i mean, it was -- i think in the thousands. you know, i think at this point, the markets, obviously, excited. and mike pence made an interesting statement. he said if you think, you know, the first six months had been amazing, we have three and a half years left. we're just getting warmed up. from a peer economic at some point, in a sense, the deregulation, the lower taxes across the board haven't happened yet. but the markets always forward looking. i don't think the rally's over. i think the country's on a lower tax rate. they just have a figure out how to pay for the policy and programs. liz: we love having you go on the show. thank you. come back soon. >> thank you. liz: tech giant google hi

the european equities are higher alongsidedraghi is ben bernanke.a look at the futures and we are seeing a slight oilieve in sterling and the maker and a small recovery after five weeks of butchery. dealing with issues of nonperforming loans and setting with the european inflation data a little later this week and it will set the tone for the markets. you have the technology higher and there is a red headline coming through. let me just bring you this. pounds and 7 billion this is a change in the united they have the there ist vehicle and one of the largest chains here this state of play is on dealmaking. european equities are rising and oil is getting a recovery. we have had the biggest monthly drop since july of last year. and you a supply issue still have the lower dollar. this is the lowest in 10 months there are more than 3 million residents here in the u.k., but we haven't seen a run like this since june. the bank of england is having a live meeting. what does it take to turn dissent into action? questions about the equity markets on the day a

i know ben bernanke has. scott, what concerns you the most or excites you that may move the markets in this hour and beyond? >> well, we are in the last week of the second quarter. and typically when you have a strong quarter like we had, sometimes being marked up the recent winners. so i think traders came in this week on a plan of whether or not we could extend the next few sessions in order to get those markups and how to trade it. at this point we had an opening reversal in tech, so that gives a little bit of cold water. but as long as the s&p holds, say, above 24-35, i think we're still in the gain for a bit of a markup into the next few sessions. liz: okay. again, we're watching this so closely, so tick by tick right now just so our people who are listening on xm113 channel in the car, hi, guys, can you hear me? great to have you. up 46 points right now for the dow jones industrials. todd, looking at the market flows overall, this morning the market kind of skyrocketed sky high, moving higher by about 1

we have no idea where rates would be if it wasn't for ben bernanke, the ecb or the japanese. we really don't or for that matter, the bank of england. >> i tolt otally get you, i do, because it's had a dramatic impact. no normal anymore as a result of everything you said, so we don't know what it is. >> but i do agree with you that when ever i don't know the percentage, but disappointment that we haven't enacted some of the policies or disappointment that the global economy even though it's improving, isn't improving fast enough. all those are definitely channel, but i think they're channels that are about that big, versus the central bank channel that's you know, monstrosity. >> good points. josh, look, dollar, weakest level since november. gold and bit coin continue to go up and these bond yields continue to go down every day and some wonder how long that can continue, whether stocks and bonds can rally from these levels and how much that can last. that's what jeffrey says, it's hard to see a rally from these levels continuing for both. >> so, i must be an idiot because i do

at the salt conference this year with bunch of hedge fund leaders former ben bernanke and sam zell worriedabout the liquidity in the sector? >> reduction particularly in anything except the very top of the market that appeals to sovereign wealth fund and people like that. liz: why do you think that is? well, i think that we've been a long cycle. it has been a lot of money any made. a lot of change in values. at some point, you know, everybody kind of looks at their toes is emperor back, is there clothes on? liz: great to have you, and thank you for being here. is sam zell right? is there worrisome signpost on the road to another financial crisis when it comes to commercial real estate? >> good afternoon, liz. great to be with you on the program. the answer in general no. real estate is very location specific and the reason i don't agree it is time to throw the baby out with the bath water, this recovery was very testimony bid recovery. inflation didn't build up -- tepid. most importantly it didn't include over leveraging of commercial real estate as we saw run-up 2006, 2007 which were the

former chair bernie sanders recently said in an interview -- ben bernanke, he was frankly disturbed about the divide between republicans and democrats and how that might play out or show up in the economic data. so, i know, i have to push back a little bit. it concerns me greatly that the market continues to shrug off, you fill in the blank, whatever happens, markets just seem to keep going on and on. if there is no logic, rhyme or reason, i think investors should have rein to be concerned to go back to the "fang" stocks. they're starting to really raise some red flags. david: john layfield, one place i push back on janet yellen, her insistence we need inflation. i don't like higher prices. taxes are going up. a lot of things go up. gop wants to continue with the border tax which would push up the price of imports. why is she so insistent on inflation? >> i don't know. set certain targets on unemployment. set certain targets on inflation. she pretty much ignored those. david: so they don't mean anything, even though she says one thing she doesn't really follow through on it? >> like the o

volatility is at a level in blue that we haven't seen since before ben bernanke's famous jackson hole speech in 2013. -- it hasn't been this low since the taper tantrum. guy: it is interesting to see what is going on. i wonder if we get a shakeup soon considering what the fed may do. will that process change the game when it comes to treasury market? will politics, that ceiling -- the debt ceiling? what you make of the incredibly complacent treasury market and be, what will shake it up? the fed, the balance sheet or something else? has set a clear path. it has tried to regain what gave away and do the same with respect to the balance sheet. 450 billionig possibly. they tried to give the indication they will roll a significant quantity of that. i think how much they can do will be contingent on what trump and congress can actually achieve in terms of providing an additional fiscal stimulus. i have been done here with you for a year and a half. we need to move on from monetary stimulus to fiscal stimulus. it was all he was about. so far, he is not delivered. the problem is, if they fail

balance sheet, if you remember going back to the taper tantrum, the milton -- the mere mention by ben bernankeou have the fed was considering slowing the bond purchases was enough to send the treasury yield up over 100 basis points over three months. we are doing something unprecedented and i think that will drive volatility, certainly in the bond market. >> trying to be so clear about communication. great chatting with you. portfolio manager in boston. thank you for that. tomorrow, bloomberg real yield will be live from the black rocks -- blackrock trading. jonathan ferro will sit down with black rocks -- they will give their perspective on the fixed income market tomorrow at 12:00 p.m. new york time, 5:00 p.m. in london. let's check on the bloomberg first alert news with mark crumpton. mark: president trump said today that wounded republican congressman steve is quoted here in some trouble. he says he will be ok, we hope, offering that assessment as a shaken u.s. house gavel back after a day -- a shooting. the president and the first lady visited at the hospital wednesday night. vice preside

around 1:00 this afternoon, european central bank president federal ghi and former reserve chair ben bernanke will give speeches in portugal. 5:15 this afternoon in washington, president trump and give s prime minister joint statements from the rose garden, right after their meeting at the white house. day, ur top news of the theresa may finally seals the deal. you've got sterling advancing his morning after the u.k. prime minister struck a deal with northern ireland. or more, we're joined by ben stills of bloomberg news editor who joins us from madrid. us. thanks for joining what kind of position does this leave theresa may in now on his week where they're going to vote on the queen's speech in house of commons? a modicum of ides after ty for theresa may a rough few weeks since the election t. means she's going to have the support from this irish party, which will allow her to prove program on thursday and at least begin the process of putting her government in place. alix: good news on monday, but the weekend was pretty tough for theresa may. you have the sunday times tories want to cellor

. >> blankfein defended ben bernanke and janet yellen.said they may get the blame for shallow recovery but credit for avoiding a deeper recession. >> i like how he showed up in no jacket take off the jacket go with the shirt sleeves. >> you can't get to pick and choose when you want res regulation or more regulation. it sounds politically correct when he wants to advocate for social justices. >> that's probably the message that's gotten lost in terms of finance over the last decade because of what's happened with the financial crisis fewer people want to go into finance, fewer people think it's a a good place the evil mask that got put on the banks. >> same thing with healthcare. but with finance, the whole run after the election, one-third was from goldman sachs you do need these financials to participate. they have lagged incredibly so >> when he talks about social mission, finance is the wd-40 of the economy. you need it. >> make sure people -- it sounds self-serving for a ceo to say this, but it's true. >> he goes back to god's work.

in the middle you have ben bernanke. and then janet yellen. she said inflation can be noisy. she said g.d.p. can be noisy. what is not noisy? >> the fed are being noisy at the moment. why they are being noisy, they are not targeting inflation 2017. they are targeting their own credibility. even though there has been a spriking downgrade in the inflation expectations from 1.9 to 1.6 for the year, they are keeping that policy path unchanged. therefore i think in 2017 it is the case of out with dependency and in with restoring credibility. francine: if they are wrong, it will really hurt their credibility. >> they don't want to shake the boat or change the course very abruptly coming from the message they gave at the end of the year. i think the fed is trying basically to keep things standardy. i think the result of the -- it is not necessarily shocking. the tweak in the balance sheet, it is very important. kind of the unknown factor we have now. it is going to be extremely smooth. that's pretty much the big message we got from yesterday's conference. she is talking about the fi

trust me, the reputation of the feds in power at the time isn't going to be good ben bernanke has a bookgn a federal where it's the courage not to act to say the market was blahzay. >> my guess is the market knows -- >> see, this is the thing i fight about with ira now and the problem is that high ra you can't acknowledge that most interest rates have been manipulated to the point where we don't have a gps and then plug them into a model federal reserve where you draw all these fantastic conclusions. you can't have it both ways. that's the big problem i see everything look at the news yesterday we said look what the ten-year is doing get me the balance sheet for a month, i'll get you 3% >> gdp next year 3.2, unemployment 4.3, fed funds pretty much unchanged. we're going to tolerate a lower rate and not higher fed funds required the data yesterday says the fed has the same problem and strong employment which we got in the claims number today. i don't know if we have a minute to talk to our guest host about airline fairs? >> he'll join us on set. maybe in reference to united just kidding ♪

we know what ben bernanke he said the tapering comments did all those years ago.threat ofhe tapering. bilal: these things never go smoothly, no matter how much -- they want them to go smoothly. if you look at the fed's taper -- there were other instances were central banks have unwound with low interest rates. it is always a bumpy ride. the advantage that the ecb does have is its q.e. program is complex. they already have tapered bunds already. to some extent, that does muddy the water. on balance, whatever a central bank unwinds, it is a rocky ride. mark: where is the inflation? we will know more on friday. the inflation on side, there is based effect and oil affects that have led to inflation falling. the next print is likely to be on the low side as well. the july numbers onwards, we'll start to see inflation tick up. what central banks are saying that inflation is temporarily low is a fair point. affects, we'll start to see a rise in inflation the second half of the year. mark: that goes for all major central banks. not worried about inflation -- if you look a

ben bernanke was a great chairman because he was a student of the exact phenomenon threatening to repeatression and i think he understood some of he may not be big on this in the way he talks, but he understood the importance of the narrative -- and the importance of not letting a bank run go -- not letting people think there isn't decisive action being it fromen to prevent sinking into a depression. that depression narrative was on its way back. that is not something the taylor rule can deal with. it is something that requires presumably,nt and and taylor is a smart guy act sensibly. we cannot just rely on rules for monetary policy. especiallyight, given all the uncertainty is on how you measure inflation and whether it will start feeding through. the judgment of janet yellen is that inflation will pick up because the strength in the labor market will eventually feed through. is she right? robert: i think probably. are allings theoretical. we are talking about the so-called celebs curve that says when the economy strengthens, inflation picks up. there is something to that. if we look at

taper tantrum when ben bernanke talked about slowing their purchases of long-term securities.e japanese stock market when the bank of japan says we may stop buying equities. i think they have the toughest job. all of them will not be easy, but i think boj is the toughest. tom: it is understood -- i believe you teach this to your freshman course -- the net present value of the bond market. they look to the present tense. do we do that with the balance sheet? value of net present the balance sheet adjustment to where we are now? question.reat the markets have not responded very strongly to this discussion -- to the discussion of potential balance sheet normalization. will beven because this very regular and smooth, like paint drying. i think we will see tomorrow what the reaction is in more detail. janet yellen will provide more go,il on where they will and we will see whether markets react to that. but so far, they have been thinking this is not really a big deal. tom: randall kroszner is with the blue school in chicago. we will drive forward the conversation with a touch of wa

. >> you know who is -- ben bernanke when in -- >> way back when you are right. open. we will see i in on almost exactly 10 minutes each and every day monday through friday "varney & company" starts every day, 9:00 a.m. eastern time, love mr. stuart varney. >> activity gefr betting big on nestlÉ the stake in swiss food giant. ♪ approaching medicare eligibility? you may think you can put off checking out your medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and

this is what ben bernanke would call a hockey stick. the markets are going one way.ther way. who is right? neal: i am not going different from that in particular. tom: does the flattening indicate recession or slowdown? not so much as acknowledges something that has been persistent for a long time now and will continue for a decade or more into the future, which is there is a tremendous need for financial duration in the system, because we have a lot of duration with respect to the aging of the population. pension systems, insurance systems, and all the rest need financial duration. before the financial crisis, we tried to create that was leverage. but we do not do that -- tom: you are celebrating 10 -- s of we are 10 years down the road. we figured out leverage did not work. are we really ever jing -- re -leveraging? neal: i am not sure. i think we are trying to find duration in a different way. that is what one might think of as unusually low and the yield curve. you have to do a with low coupons if not with leverage. francine: we are getting live pictures of margr

you see when we go during the super bowl and talk to them about who's ben bernanke we have those funnyey don't know that they're young and they're focusing on their craft. >> joe you've been doing this so long that the producers of the show left three minutes in for your joking about the poll so i have two minutes to do the report and three minutes for you to joke about this >> let me ask you. the university of michigan, these athletes at the university of michigan, why do they poll those guys for consumer sentiment? >> i don't know. i don't think they do. i think this poll, joe, as you know is of all americans in other words all americans >> so graeeat athletes -- >> "squawk box" is a very smart guy. he said let's give steve a minute and a half and let's give joe three minutes to joke. so it's a 4 1/2 minute segment i'm going to chill out >> broaden it out to include more people not just athletes, broaden it out to scholars, people of all different age groups >> we have all age groups joe. you saw a deterioration in the 65 plus age group. midwesterners like the president a little bit