alix: coming up, an interview with bill dudley, the fed president of new york. interview is coming to you at 10:30 a.m. markets plus monetary and the fat it, this is bloomberg. ♪\/ >> we will sit down with william dudley, federal reserve president of new york. that is your bloomberg business press -- flash. the french company and antitrust regulators have said they will sell the stony brook organic yogurt company. the giant mexican cement mixer wants nothing to do with pleasant tramps wall. -- president trump squall. there might be backlash and home. hong kong has been one of the hottest markets for electric cars. electric vehicles have been exempted from attacks on new cars. that ends tomorrow electric car buyers will have to start paying the new car tax. that will raise the price of a tesla by at least 50%. that is your bloomberg business flash. to get further into the developing trade policy, we are joined by matt winkler. is chris in with us london. i want to start with you, matt. reasonable that a new president says i want to take a federal view of what's g

bill dudley says the case for tightening is a lot more compelling. same as president james bullard said the fed is closer to its goal mallet than any time in the past 60 years. the indictment of samsung's defector leader is threatening the group's ability to make about policyisions and acquisitions be are jay y. lee and other executives are accused of sending millions of dollars to a confidant of president park geun-hye in return for support. the indictment is a new blow for samsung following the burning note 7 debacle last year. india's economy is expected to slow less than forecast in the fiscal year, growing 7.1 percent through march. that is the slowest pace of growth since 2014, but faster than the median estimate. gdp was expected to take a big hit from the prime minister's unprecedented cache ban -- cash ban. >> in respect of many of the companies, we have been quite surprised to see a smart recovery. people are at most at the pre-denomination stage. by the end of march, we expect to be fine. xi jinping has called for better supervision of fin

currency, the fed continues with bill dudley in london today. repairing for the divorce, our sources say make of america and barclays -- in the post-brexit world. good morning, this is bloomberg surveillance. i am francine lacqua in london and tom keene is in new york. on the u.s. and donald trump and james comey, the french elections. italy mumbling under with concerns. tom: a lot of speakers with the american fed, mr. dudley in london. am i right in that he and carney are together today? matt: yes, -- francine: yes i think you are. let's get to the bloomberg first word news. has delivered a couple of political blows to the donald trump administration, he revealed that the fbi is investigating whether any of the presidents associates collaborated with the russian government during the election campaign. he said there is no evidence to back up the president claimed that he was wiretapped his predecessor. in europe, french presidential front runner marine le pen and emmanuel macron went after each other in a televised debate, she attacked his rec

louis fed president, james bullard, and new york fed president, bill dudley. for earnings, retail ers ret finish line reports before the bill. >>> investors pulled 1.3 billion from financial sector funds in the worst week of net sales since july of 2015. investors poured 8.3 billion into u.s. base taxable bond funds. >>> coming up, theranos founder elizabeth holmes plans to give out personal shares in the stake of her company, but there's a catch, a big one. stay tuned. you're watching "worldwide exchange" on cnbc. ities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. experience exceptional offers on sales event is here. our most refined models ever. get up to $2,500 customer cash on select 2017 models for these terms. experience amazing at your lexus dealer. the markets change... at t. rowe price... our disciplined approach remains. global markets may be uncertain... but you can feel confident in our investment experience around the world. call us or your advisor... t. rowe price. invest

. >> and many bill dudley, an influential fed official, add that had rising interest rates will be a delicate adjustment for the economy. >> by taking out a little bit of that accommodation. moving up the interest rate a little bit. we think it is more likely it will give a soft landing and keep it where it is. it is not something that's very harsh. we think it is appropriate and necessary. i think the economy will adjust just fine. >> he also said the unemployment rate is pretty close tots lowest level without sparking too much inflation. >>> still ahead, are you looking for growth? our market monitor says it is time to invest in some very well known companies. >>> the senate voted the undue internet privacy rules. those rules were approved by the federal communications commission last fall and have not yet gone into effect. the regulation would have required internet service providers to get permission before collecting and sharing your information like your web browsing history or your location. senator jeff flake introduced it to repeal the rules, calling them unnecessary. >> the

bill dudley, boston fed president, eric rosengren, esther george and cleveland fed president lorettaester will be in front of the microphone. just one report on the agenda, fourth quarter current account. and the earnings, general mills, lenar reporting before the opening bell. after the close, fedex and nike. what i'm going to be watching in nike, which was the dow's biggest loser last year, down 18%. and is now one of the biggest winners. big comeback for nike. up about 15% this year. number one, revenue growth. they've seen a slowdown because of competition from the likes of under armour, but mainly adidas. can they get revenue growth back up? they missed the last few times. they say it's not important to look at futures orders, but the market pays attention. they turned negative last time. will they rebound? that's going to be a big question. then as for celebrity endorsements, that's something adidas nailed with the likes of kanye west, puma went after rihanna, nike is working with drake on a new line. the more it talks about that sort of thing, investors will pay attention. nik

now because we have some sound bites from this interview along with that some sound bites from bill dudleyer from new york. also charles evans spoke earlier this week. listen. >> to the extent i gain more confidence in the forecasts that i have, that would be good indicator that i could perhaps support three. two might be the right number if there is a little bit more uncertainty. if there are any modest concerns about whether or not we're really going to get that. if things really take off, if we get continued strong growth and if inflation, underlying inflation picks up, we could get four this year. >> the f-1-c is in a reasonable place. a couple more hikes this year seems reasonable. if the economy is stronger than we expect we could go do more. if it's weaker we can do blessless. >> we really have not seen a lot of movement in the hard data in the last 18 months or so. and so i think it's ok to raise rates a little bit, but i don't think we need a major adjustment at this puncture to stay on track and keep inflation near target. vonnie: carl, it doesn't sound like inflation is going an

louis -- bill dudley of new york and jim bullard of st. louis.s is bloomberg. ♪ scarlet: i'm scarlet fu. "what'd you miss?" jeff bezos is now the world's second richest person. here's a scorecard of the richest. jeff bezos is the white line. his net worth on paper is now at billion..6 he has surpassed warren buffett and ortega. warren buffett is in blue. buteaked in late february, has been drifting down a little bit. , he is at about $74.3 billion. this comes a day after amazon announced that it is buying a dubai-based online retailer. on the rich bloomberg. it's a great resource for how the rich are doing. so farzos, number two, this year, he has seen an increase in his net worth of $10.2 billion. if we click on the chart section, you can see how he stacks up against the koch's. overall for the three-month average, his net worth is about $72 billion. the high was about $75.6 billion, which is where he is at now we spoke with brad stone, who points out that jeff bezos not only has done very well with early, but he's also an investor in airbn

bill dudley is a special central bank president because he always votes.part of the triumvirate with janet yellen, these are key voices. economists had already started moving their forecast from may and june hikes toward march after dudley's speech. look at the rate hike on work. world interest-rate projections on bloomberg. take a look at that now, because they have shot up. the right icons yesterday were at-- rate hike odds were before percent. before they were at 64%, now at 80%. 6347. this is the blue line. the decembere is picture over the course of 2016, the end of the year boom. the odds stayed there. blue line moving rapidly. it seems to be that the fed is sending a message and the markets are responding. had: does the data we have support the move? >> we were waiting for the fed's beige book, their anecdotal survey across the country. it was more of a team report. fed sees modest growth and subdued reflation. ismid have the manufacturing index, a important pmi manufacturing index. it is up to 57% in february. that is a strong reading. the key fed

then of course there is the new york fed president bill dudley. he said the case for a rate like is now more compel. that's an important word in fed speak. one caveat today, the banl book did show business optimism has dimmed a little. and new job support this friday. we won't get it until next week. >> so to get the time ts report. when does blackout period? the period which officials can't talk? >> it is the tuesday before the fed meeting. >> thank you. is it a good they know or a bad thing if the like happens in march? you think it is a bad thing. this on a day when the futures surge. >> on friday we get last comments we'll get from the fed. that's when the black eye starts. not because the market is forcing them to like and they have to again to unwind policy. if the fed is actually stepping in because they do see inflation, they do see wage growth, it is very, very positive if they're pushing the market, if the market is pushing they will, we don't know. they said they would wait to see the economic data. i don't know if the market was up 400

nothing she said in a speech with a response to possible but bill dudley did say when it comes to theiscal risks, they are all upside, creating stronger growth. das go.ok at. go -- there will be three rate hikes this year is the consultants. an interesting speech over the weekend, they changed one word at how she is looking at policies. policy is now moderately accommodated instead of modestly . very specific. she is saying there is a little more stimulus in the system, maybe you get more rate hikes under consideration at the meeting next week. and what else is in store? what else are central banks around the world watching? kathleen: the central bank is watching the gdp number because we had officials saying -- the minority, maybe there will be a rate hike this year, more tightening, and the european central bank meets thursday, and the germans are pounding for rate increases because their inflation are rising. the final brexit debate is happening, and the world is watching china. the national people's congress. this is a big deal as tom mackenzie was talking about the 6.5 point sent

. >> but bill dudley warns if the government increases spending on the military by cutting back domesticgrams the net effect, he says, may not give a powerful boost to the economy. he would know, he's number three at the fed behind the chair and vice chair. he overseas decisions affecting millions of americans. >>> a major bidding war in the book industry is over. penguin random house is signing a deal of pair of books by barack obama and michelle obama. it had surpassed $60 million. paying random house. these bookings are likel to be released in 2018. the obamas will donate a portion to chaty including the obama foundation. former president obama's previous books were published by the same company. both of them will be writing books. it's unclear whether the same publishing house that would get each of them but $60 million. >> you've got to generate a lot of revenue to make up that. >> they don't give up that kind of money unless they think they'll sell a lot of books. probably instant best-sellers. and maybe the first word we hear from these two. >> the return to politics is coming wit

tomorrow, we have exclusive conversations with two federal reserve bank president, bill dudley of nework and jim bullard of st. louis. tomorrow on bloomberg tv. let's check in on the bloomberg first word news. last out at trump conservative house members who block a repeal of obamacare. he wrote that the freedom caucus will hurt the entire republican agenda if they do not get on the team. he said the party must fight them and the democrats in next year's election. house speaker paul ryan is warning republicans to unify around a new push to repeal and replace the affordable care act. if not, he says the president may cut a deal with the democrats. here be is on cbs news. >> we talk about how we get this bill passed. >> you are not changing the policy? >> if we can make improvements, all the better, if improvements can be made to get people to yes, that is great. >> he says he wants a plan that gives people choices while saying democrats want government running health care. nancy pelosi, the house minority leader now at her weekly news conference, watch that on bloomberg at tv . dip

today, bill dudley, esther george and loretto mester -- we will get janet yellen on thursday.yeva jos weave kari giving us explicitly rationale for why he voted the way he did -- what are you listening for from the others? yelena: i don't think we will get that much color from janet yellen this week. she is the most important, obviously. that theundantly clear outlook has not changed. they still expect moderate growth, inflation to move closer to their target. they will move accommodation gradually. really great to hear from different sides of the aisle. neel's interview was great yesterday. one of the most important things we should take from that is that that is trying to make it clear what they want to do with the balance sheet before we even get to that. david: charles evans speaking three times this week. he's giving some indication of how many hikes he things we could see. yelena: that is a difficult one to read. is a 2, 3 or four? that is a possibility, in his view. what he really needs to see is inflation to move closer to the target. during the speech yesterday, he sp

week, monday, never used to care about this, but get this, monday we got a couple of fed speakers, bill dudley, new him when i was at goldman, i care what they have to say, because we're a few short weeks away from earnings season and the banks report first, the bulls need this key leadership proof to come back to life. and the only way the banks do that is if the feds decide to race rates at least twice more this year, so the financials can make more money off your deposits. longer term interest rates are coming down and that's causing some investors to freak out. isn't it amazing that we actually root for hikes now? but we have to because the financiers are part of the market and we can't afford to lose these two. let's hear what the fed has to say. speaking of slowdowns, there's a stock investors flock to when there's a market downturn, i'm talking about mccormick, mccormick has an analyst meeting on tuesday. if mccormick tells a great story and the stock rallies big, you know what? that's a sign investors are going more bearish. but if the stock does nothing but go down, oddly that's good

secondly bill dudley said in an interview with yours truly here, said in an interview, the reason foroing up have become more compelling. in other words, rates are going up. that tells you that the economy is sound as is donald trump's trillion dollars. look. the market took a breather yesterday. it just took a pause. it literally took a little short breath. and now it's back on again. i was down at the exchange this morning, and the mood is one to push this market higher. >> i love how you describe it as this living breathing entity. >> it is, it is. >> richard quest. >> markets are the mass of people that are making movements. so it is very much a living breathing eating animal. >> richard quest, thank you so much. >>> this is a moment that's gone viral. one moment last night made donald trump presidential. most fellow democrats do not agree with that. we'll have van jones to debate. now give up half of 'em. do i have to? this is a tough financial choice we could face when we retire. but, if we start saving even just 1% more of our annual income... we could keep doing all the things

bill dudley says the case for tightening is a lot more compelling, and the st.sident has said the fed is closer to its goals now than at any time in the past 60 years. comments, given the we are seeing market expectations shooting, at one point topping 70% when it comes to the fed's speech. take a look at the function work on the bloomberg. i want to talk about this interesting read on the bloomberg from lisa. she talks about the latest conspiracy theory among traders, a small group of investors thinking that they are sending, trying to send a signal to raise rates. take a look at this hike and the probability of a rate hike for march. , up from 40% in just the span of a few hours. , ife is speculation that they wanted the fed to raise rates sooner, it could help him to do so by pushing around the market. none of this is proven, but speculation is out. it is like a conspiracy theory. very interesting to look at the market expectations right now, but what the fed will do now about the speech is done with. let's bring in our guests, the faaging director of securit

what bill dudley said to me yesterday was a really great risk of depression. president trump takes office with growth of 1.6%. maybe not as good as he wants, unemployment down 4.6%. the garden is rosy, the blooms could get better, and now it's really up to him to execute on the plans he's put forward. >> richard quest, as usual, thanks very much for joining us. >> thank you. >> that's it for me, that's all the time we have. i'm wolf blitzer in the situation room. erin burnett out front starts right now. >>> up next breaking news, stocks sore in the glow of the president's speech, plus his tone gets high marks. did we see a new president trump or was it a prime time performance? and the hispanic pastor the one that led a prayer now offering shelter to terrified immigrants. has he lost faith in trump? let's go out front. good evening i'm aaron i erin burnett. we begin with breaking news, tr

many of them cited with bill dudley, what he already said.et's look at the world interest rate projections. it has so dramatically changed. it let's start with the turquoise line. it looked hyperbolic, doesn't it? odds jumped to 32%. last week they were 34%. now it is up to 80%. why are we showing the white line? that shows you last year when we were headed toward december. the fed was supposed to hike, but didn't. in the last month they got to 100% and stay there. we might be setting up for something like that now ahead of this march meeting, julie. julie: quite a leg up there. words might have a little more weight here. for the latest data, does that support this move? >> let's say they do not stand in the way of it. we have the institute for supply management, purchasing managers, rising to the highest since 2014 at 57 .7. the key indicator seems to have stalled out. let's jump into the bloomberg. this is a blue line, the headline number on this very to 1.9% come, up almost to the feds targeted 2%. but we are watching the white line, the c

bill dudley said the economy can cope just fine.nd given the state of the economy, it doesn't need to be preemptive. let me give you another one of our charts to tee off the week, because it looks at spending versus confidence what you see consumer123 is confidence is the turquoise line. it shot up, people got stimulus through, not so much after the problems last week with the affordable care act repealed, but spending is losing steam, and the forecast at the far right-hand side only 22%. where does this go for first quarter growth? let's talk about bill deadly, because he said we are aiming for a soft landing, hiking very gradually. the hike is so shallow. he is trying to calm people down. and the bloomberg television alone has three interviews with the fed officials on monday. my colleague michael mckee will sit down with charlie evans. i will be with rosen brand on wednesday and then bullard on friday. a lot of opportunities to take in the issue and get them to tell us what they really think. haidi: we trust you ask the really de

make policy thinking about what could happen in 2018 at this point they don't know enough, and bill dudley his cnn interview last night. we don't know that enough to incorporate that into the forecast but we look at the economy as it is now. we can like there is no reason not to go. we will have to raise rates at some point in the economy is telling us sooner rather than later. vonnie: brian jacobson, let me bring you in here. past 20,000, we had the pce deflator at 1.9%. what is to stop the fed hiking in march? >> i don't think there is anything that would necessarily stop them other than messaging on why march as opposed to make origin. what is the senate -- may or june. what is the sense of urgency? a terrible thing but it would certainly be a faster pace than the markets uprising in. going to pay would be a lot safer because it would set the stage for -- going in may would be a lot safer because it would set the stage for 3 hikes. this point it would surprise markets and i'm not sure the fed wants to do that, either. brian: i'm not sure it would surprise markets if they decided to wait

it's hard to tell if they coordinate this communication policy, whether she sends out bill dudley and says use the word compelling to make sure march is on the table. either way, compelling is a serious word in fed speak and dudley did use it in talking about march. >> i don't know if it is that coordinated, but this past week there's an awful lot. compelling is a good word, so is speeching, a word you just used. >> speeching? instead of speaking. >> you do this tease. over to you. >>> when we come back, the top stories including google taking on cable. the search giant unveiling new, interesting products that could be a game changer. details coming up. >>> first, as we go to break, here's what president trump said last night in his congressional address about corporate tax reform. >> american companies are taxed at one of the highest rates anywhere in the world. my economic team is developing historic tax reform that will reduce the tax rate on our companies so that he can compete and thrive anywhere and with anyone. >>> welcome back to "worldwide exchange." let's get you up to speed

bill dudley warns if the government increases spending on military and cuts other programs the economyg a deal for two book michelle and barack obama, signing a deal surpassed the $60 million mark. declining to comment on dollar figures, the books will likely be released in 2018. the obamas plan to donate a good portion to charity including the obama foundation. 60 million bucks you can imagine that say big, big payout. they must think they're going to have best sellers on their hands. >> george w. bush was given $10 million for his memoir. >> thanks for joining us. i'm christine romans. >> i'm dave briggs. "new day" starts right now. make it a good one. >>> a new chapter is now beginning. >> he walked into that room as the winner of the election. for the united states. >> we are a country that stands united in condemning hate in all of its very ugly forms. >> the speeches and realities are very far apart. >> i believe that real and positive immigration reform is possible. >> the policies that he's doing don't add up. >> repeal and replace obamacare. >> i thought it was a home run. i t

cleveland fed president, loretta mester, john williams, rod kaplan and bill dudley speaking throughouthe day. deltech nl technologies reportse the open. >>> interesting new data factoid showing margin debt climbed to a record high of a $528.2 billion, up nearly 3% from january. higher levels of margin debt suggest stronger investor confidence, but it can be a warning because margin debt has historically peaked before financial collapses. the data coming from the new york stock exchange showing brokers are putting up more debt against their securities, borrowing more to get into the market, potentially a level of conviction in the market that we'll monitor. >> but also potential worry. >>> washington news, a federal judge in hawaii has extended an order blocking president trump's travel ban. it restricts entry from six predominantly muslim countries. a court in maryland blocked the order affecting visas. >>> president trump's administration plans to unveil a $1 trillion infrastructure plan later this year. transportation secretary elaine chao says the program would be done over ten year

earlier this week we heard from some of the fed bank president, as well as the vice chair bill dudleyof the new york fed. if you miss this train, shame you on, it's coming, and two weeks from now, this is what she said at the speech in chicago. listen. >> we currently judge that it will be appropriate to gradually increase the federal funds rate if the economic data continued to come in about as we expect. indeed, at our meeting later this month, the committee will evaluate whether employment and inflation are continuing to evolve in line with our expectations in which characters a further adjustment of the federal funds rate would likely be appropriate. >> reporter: she went onto say the data is coming in as expected. how big of a telegraph is that? she said the fed is essentially meeting labor market mandate for jobs, expect to hit at 2% inflation target. the fed has pencilled in three quarter-point rate hikes for this year. trish: youw at? this is fantastic, peter. i mean, it felt like for years the fed was so worried about our economy. they were stuck, you know, not being able to

currency, the fed continues with bill dudley in london today., our sources say make of america and barclays -- in the post-brexit world. good morning, this is bloomberg surveillance. i am francine lacqua in london and tom keene is in new york. on the u.s. and donald trump and james comey, the french elections. italy mumbling under with concerns. tom: a lot of speakers with the american fed, mr. dudley in london. am i right in that he and carney are together today? matt: yes, -- francine: yes i think you are. let's get to the bloomberg first word news. >> james comey

it began with john williams of the san francisco fed, then bill dudley, robert kaplan earlier, and todayhe main event with janet yellen. moved so much on the other ones, and she is so smooth. she never creates volatility. scarlet: we did see big gains and snap. it followed up yesterday's 44% 20 percent much as today. it came back there. article says short interest $1 billion reach within a week because of this rally. in terms of sectors under pressure today, retailers under pain. costco retreating from record pressured on gross margins because of higher gas prices. the good news is the increase in membership fees. reports thating on it is not in talks with hudson bay. urban outfitters reclining for fourth time this week. joe: bond yields ending up unchanged for the day. a lot of action earlier in the week as we got hawkish comments from the fed. but even with janet yellen speaking, no change. we never talk about long term indian rates, but there was a huge rally in government l bonds. and finally, french 10 year yields. this is the chart to watch. coming in on from middle of the that mac

. -- bill dudley and jim bullard. city, you are watching bloomberg. ♪ careful joe, they've got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. something for everyone is awesome. find your awesome with the xfinity stream app. more to stream to every screen. the biggest week wow, watchathon has netflix? hey, drop a beat... [ beatboxing throughout ] show me orange is the new black. wait, no bloodline. how about bojack? luke cage. oh, dj tanner. maybe show me lilyhammer. mmm, show me last chance u. on second thought, maybe pompidou. narcos, fearless, cooked, the crown. marco polo, lost & found. grace and frankie, hemlock grove. season one of... show me house of cards. xfinity watchathon week starts april 3. get unlimited access to all of netflix and more, free with xfinity on demand. jon: europe versus the u.s. .trategists are noticing fed back in focus. three fed presidents take stage across the glo

. ♪ ♪ new york fed president bill dudley says it is reasonable to expect three rate hikes this year.orrespondent. in 2016 int happened the fall of 2015, the consensus was four hikes in 2016. we did one in 2017 going in with three. so far we have done one. is, it ishe foc original place. a few more hikes seems reasonable. it is stronger than we expect, we could go through more, or we could do less. reporter: what tells you it is time to raise rates? it took you a long time to convince march, because people said nothing really changed between december and march. >> nothing really changed, the economy was on the same trajectory, sturdy job gains, and we had been trying to say if we stayed on the trajectory, we lose monetary policy accommodation, so the move was consiste with what we have said previously because the economy was in line with what we were anticipating. you move in would may, or do you want time to see what happens with this rate increase, if there are changes in the economy, and there is no press conference, so it is difficult? >> the economy is growing just a bit of both

bill dudley earlier called the case compelling, a very loaded fed word. >> and williams said somethingut it too. >> march should be on the table. harker saying we should do three rate hikes this year. we use thompson reuters, which is slightly different from another news organization. we believe it's more accurate. i know joe doesn't want me to go there. >> when did that go to 65? >> overnight. >> after the speech? >> it went well over yesterday. >> i think it was from the fed stuff. it wasn't the speech necessarily. i think it's come off a little bit from the speech. it might have been up near 70% or 80%. anyway, bottom line is we're over the 50% threshold. that gives the fed the flexibility to go. i just want to report that about eight or nine times out of the seven or eight times i was on television, i said the market was underpricing the march probability. i'm not sure it's a go. >> so it's the liesman effect. >> i'm just saying there was money to be made in the market ske skepticism about what the fed was specifically saying in my opinion. >> take the next fed hike off the table f

speaking earlier today with bill dudley.t's give you a check with emma chandra on first word news. try --ident trump is will sign to executive orders today. the president wants to identify every form of trade abuse that contributions to u.s. deficits without other countries. the other order is aimed at strengthening trade penalties. republicans are worn strongly against changing rules. chuck, is trying to get enough votes to block it. and europe, a warning from brexit from european council president, he told reporters eut the uk's leading the will be difficult and may be conversational. he said there no such thing as a brexit bill, the u.k. will still have to pay up. >> we'll will also need to make sure that the u.k. continues with all financial commitments. >> the u.k. has rejected the suggestion that they should take $65 billion to leave the eu. >> caught in the crossfire, most reach helpcramble to in an area decimated by iraqi forces and the coalition state. they have launched an offensive to retake the west. global news,

louis fed president, james bullard, and new york fed president, bill dudley.or more on the markets, let's bring in chris cordero and john stolfus. interesting market reaction yesterday, guys, late in the session when we got news that the vote would be delayed. we saw the downturn in the market. here today we have the vote. what are you expecting in terms of market reaction? >> if the vote comes out positive, we get a yes vote, i think the market will likely rally tomorrow. >> that would be weird. if we get a no vote -- if it rallies on saturday -- >> on monday. it's been a long series of 15-hour days, joe. we are in a bull market. we have to think that what will likely happen is the market will respond positively if we move ahead. >> it's nice that you weren't sure tomorrow is a weekend to your clients. that means you're so focussed on working. >> none of us would say that. >> i know tomorrow is saturday. i heard that immediately, i know today is friday. >> at 9:00 a.m. it's saturday. >> i'm so aware tomorrow is saturday. >> tomorrow is barron's and a bagel an

said he is not on board with a total of three rate hikes. ,e says three could be overkill while bill dudleysomething different. while bullard said the fed does not need to be preemptive, look, it is a shallow path of rate hikes, aiming for a soft landing. he seems to be saying there is a good path for the fed to be on. let's look at this chart #7123. is thequoise line, that consumer confidence, which has bolted since donald trump was elected, then you have spending, set to turn down to 0.2% it we get that report at the end of the week. 11 fed speakers this week, three fed officials here charlie evans monday and jim bullard on friday, so a lot of fed to digest. >> thank you. coming up next, continuing with the cuts, the growing calls for oil producers to extend production curbs. this is bloomberg. ♪ >> it is a: 30 in singapore, half an hour away from the opening of trade in the lion city, a beautiful day. "daybreak watching asia". let's get to first word news with paul allen. toshiba's unit poised to file for chapter 11 protection. the nikkei news tweet to the face of losses of more than $6

you saw that very starkly today with bill dudley and the new york fed saying we will see the upside inerms of economic growth. the ecb seeing inflation in germany decelerating. divergence is coming back to the spotlight. that is how it was in equities. take a look at the equities, a 10 year yield climb above 2.4%. we will see how that plays out in asia. here is how things are looking this friday morning. a looking, when you take at new zealand of stocks, flat. the kiwi below that 70 send handle. australia, we are looking very they ensure that much closer, 110 points away from 59 00 from the asx. resilient atill .7644. jobless rate inflation and production, we see the dollar-yen 111.79. a little strength of this morning but stocks nevertheless are going to be quite strong in tokyo today. that is a look at what to expect in the region this morning. we have been talking about this debate between the hard data and soft data in the u.s. we got those u.s. gdp inflation and consumption numbers. came back andals helped lead the way in the equity markets here. let's hold the boards real quick.

there's the update from steve having had those comments from bill dudley.draft proposal circulated in congress by the u.s. trade representative, the trump administration is likely to see modest changes to the north american free trade agreement known as nafta. cnbc obtained a copy of the proposal, and now we're in a first cnbc interview with wilbur ross. mr. secretary, welcome. >> good to be on, kelly. we looked at the letter addressing a number of changes to b made to nafta. is this the final proposal for the administration? >> what apparently you have is a leaked draft of a letter we've sent to the staff of the house ways and means committee, and the senate finance committee. the permission of those two committees to send the formal letter, which is what triggers the 90-day period, and we're hopeful that that will happen before the spring recess. >> today speaking at the white house sean spicer called it not an accurate assessment where we are today. is that the case? before we go through what's in here, this reflects thinking on changes to nafta, right?

. >> and bill dudley of the new york fed, who is vice-chair of the fed policy committee.me in here, batting cleanup for everybody. they have all been talking about this and by the way, the issue of stimulus from the trump administration, she doesn't specifically talk about that but she does tk about fial and regulatory policies, that are the responsibility of the administration in congress best-suited to address some of the structural props in the economy like, like low productivity. so she does acknowledge the fiscal, fiscal stimulus may be coming without specifically mentioning the trump administration. neil: all right. thank you, buddy. peter barnes, as you can see. the dow turned positive, back over 21,000, i'm not saying exclusively on this. as peter indicated this is well-telegraphed. do not blame fed officials for not warning you but all but saying rates are going to go up and probably this month. widely factored in. the surprise would be they don't move. president trump just landing in orlando, florida, right now. he is on his way to catholic school in orlando, lo

alix: yesterday was bill dudley for the wind, talking about a potential rate hike increase in march.ake a look at the bloomberg here. it's one of my favorite functions. the green line is where we are right now. the yellow line is where we were just in the beginning of september. a bigly have we seen rewriting in the front end, but we have also seen a berating. and shawn are still with us. i thought was present trump leaving the market, but the fed it wasl -- i thought president trump, but the fed is still leading the market. troy: is the economic data slows down, we doubt that. it's a very different outcome for net interest margin going forward. furthermore, a lot of the rally in anything financial services related has to deal with how much the yield curve steepens. if we get softer loan growth, it will be much more challenging. finances is one of the sectors much more dependent on the fed. the broader market is still hyper dependent on monetary policy. that will never go away. alix: you're looking at one year the implied policy rate to be over one and a quarter percent -- 1.25%. can

in terms of risks, bill dudley said before janet yellen that he thinks there is a risk of donald trump'slicies being an upside risk to the economy. let's look at what the fed will have on the table when they go into that. -- that meeting. dot , six fed officials were saying we think there will be three rate hikes in 2016. what if that turns out to be more dots at the next meeting? in janet yellen's speech, instead of calling for policy modestly stimulative, she said moderately. even more stimulative than it was. is that a reason to start looking? have closed on friday mostly unchanged and expected janet yellen to signal the march rate hike and are not getting signals from the fed yet that more rate hike succumbing. if they do, that could hit markets around the world. nice one, kathleen. kathleen hays there. let's get back to the top stories, north korea's missile launches, tokyo and seoul launching protest. government editor is with me now. what do we know for certain if anything this far? >> we don't know too much about what type of missiles they were. shinzo abe came out and said t

than later, we had kaplan say we should do it because we can do it and not wait and then there was bill dudley compelling case for hiking rates. and that was that repricing. i have not seen the market ever reprice this quickly, but i will say i thought it was underpriced before that. >> all right, thank you, steve. steve liesman. >> sure. >> of course we'll be checking in later on. when we come back, gop members of the house debating a possible border tax. new york congressman gregg meeks weighs in on "squawk on the street." we'll be right back after this quick break. nce i added futures, i have access to the oil markets and gold markets. okay. i'm plugged into equities- trade confirmed- and i have global access 24/7. meaning i can do what i need to do, then i can focus on what i want to do. visit learnfuturestoday.com to see what adding futures can do for you. or keeping a hotel's guests cuttinconnected.i to 35,000 fans... businesses count on communication, and communication counts on centurylink. companies across the state are york sgrowing the economy,otion. with the help of the lowest taxe

bill dudley. us now are our guests still with us.ave a conversation with neel kashkari. what you want to hear from him? thunder,ng of stealing andhave a great question, maybe you don't want to let anybody know about it yet. jonathan: steal the thunder. >> i think you should highlight to people this key question. idea,e talking about this dovish in the face of labor market data that shows there is not a hand of slack. that is something i would want to have a more detailed conversation on with him. tv,nly have so much time on so if you ask him that question, he will give you a canned response. you need to drill into that. is 3%,ervices inflation so you are already targeting that. >> from our perspective, the labor market slack idea and focus not just on the broad participation rate but the working age population. that is what i would want to drill into. the dovishness and to what end. jonathan: my question, and i will steal my thunder, whether it is a protest vote or whether it matters and he thinks he can influence the rest of the fom

grow cleveland fed president, loretta mester, john williams, rod kaplan and bill dudley speaking throughouthe day. >>> jack lew, tim geithner, robert rubin, michael bloomenthal last night address the economic issues. with a specific focus on the u.s. relationship with china. lew sharing his thoughts on the current administration's decision to pull out of tpp. >> the standards of tpp reflected american values and would have made our products and services more competitive. i see nothing good about pulling the plug on tpp. i think leaving a void is a bad thing. somebody will move in i think china is moving in with the regional cooperation agreement which will have lower standards than tpp. >> robert rubin warning about a potential currency crisis. >> if china really had an economic crisis, and as a consequence the currency plummeted that would put tremendous pressure on markets around the world to deprecate their currencies. >> rubin saying we shouldn't try to exercise leverage on china but work with china to further common interests. >>> lululemon's noufourth quart profits missed forecasts. t

bill dudley used the word compelling. what went on here, charlie? with r y were you watching this?ng for why that happened? >> i think the change in sentiment is reflected partly in the data. the fed has been trying to say it's going to be both slow and measured in its pace of race increases and data dependent. at some point, those two things can conflict with one another. what the data is telling them at this point is that they better get on with this. i think what we've seen in the last week or two is the fed trying to catch up with the market and their expectations and move things forward a bit because they're afraid that if they keep waiting and keep waiting -- and by the way, steve, they've been very creative if the creative in their excuses for not raising rates. they're running out of excuses. they know if they don't get started, they could find themselves in a very uncomfortable position. >> are they there yet, charlie? we had data this week where they almost could have declared victory. 1.7 on the core number. let's just declare victory and move on. are they too late? >> t

had no comments on fiscal policy risk, whereas build that the, the new york -- whereas build dudley -- bille risk. the week after next, the fed is going to give us new projections on how fast the economy is going to grow, inflation, jobs, and how many rate hikes they see this year. these are the dots in december. that was the main consensus, looking for three hikes. is the fed potentially setting us up for more? thinks ify says he donald trump comes through it all on these fiscal policy changes, there could be a new regime that changes the environment for the fed. bond traders have not bought into that yet because we did not see a big selloff on friday. it would take something else to get that move in the bonds and dollar. if we see that, it would be interesting to see if they are gearing up for that. yvonne: kathleen. we have got the ecb meeting happening this week, japan gdp. what else is key this week? kathleen: china data and of course the work report and all the things that tom mackenzie has been reporting on are being closely followed around the world as the trading gets underway hour

dudley says the wells fargo fake account scandal shows performance driven compensation remains a problem on wall street. and president trump signing a billa for nearly $20 billion for the 2018 budget year. and setting a new goal of sending humans to mars. that law directs nasa to come up with accrued mission to mars sometimes after 2030. talk about big picture xwogoals. and lae and crops could be delayed because of record rains and that could mean shortages and higher prices. california accounts for a majority of those crops during this time of year. as i've been wondering about the great spinach outage at whole foods and i have no idea if this has anything do with it. >> you don't know if it's at whole foods only? >> i went to different supermarkets to get it. perhaps it's just extremely popular. >> any grow a lot of spinach in mexico. >> i have no idea. we'll try to get to the bottom of it. invest aors getting ready for resultsnooik beingky. we'll have coverage. and plus stocks selling offer on concerns that president trump may not be able to convince enough republicans to support the repeal of obamacare. how to invest in case the tax

dudley of the fed. two important interviews. that? you gonna get at bloomberg. stay with us. >> this is bloomberg surveillance. bloomberg business splash. bill losing $4 billion on his in valley pharmaceuticals. in his annual letter to ackman called the bet a huge mistake. e said he misjudged the drug maker's management and aggressive strategy. fell.nt stocks it's hiring portfolio managers traders. foreigners own only 3% of bond.'s local currency that's your bloomberg business flash. francine, tom. thank you very much. we're a little more gossipy. interlude.pause and our chief washington correspondent, we're going to go gossip today.s of let's bring up the quote here tim o'brien g view who know morse about trump finances and the happy moment a decided nese investor not to pour billions into a by attan sky scraper owned the kushner clan. the timeline matters. is a distraction. what i want to know is where is mr. bannon in the white house this morning? adviser.chief yesterday in the senate, the .s. senate intelligence committee led by richard burr as well as mark warner updated about their on going investigation into russia meddling into the u