former president bill dudley spoke with bloomberg thursday.e chair alan greenspan with tom keene and scarlet on wednesday moments after that decision. they discussed the political environment and the pressure exerting on policy. the am concerned about political system. government --.s. -- today and the economic outlook is offended. >> in your generous time, let's pause on where we are within our american political system. do you find a permanence to the populism or do we rebound out of this administration whether it , bute term or two terms actually a traditional political system. >> let's remember what caused populism to the world, mainly in latin america. the growth rates slows down. when the growth rate slows down, you get a strong political response and the personal group of people who come on the scene saying we feel your pain get very considerable attention. populism is not a philosophy like communism or capitalism socialism. it is a crime -- a cry of pain. andle saying we are hurting somebody comes along and says i have the solution. th

up, interviews with former fed officials alan greenspan and bill dudley at the decision came out.of america ceo brian moynihan weighs in with his perspective on the fed and the economy. >> we are more worried about the factors outside the system, stock market price and stuff. >> this is bloomberg. ♪ taylor: welcome back. this week marks the one-year peak bitcoin. 172017 the cryptocurrency climbed to its value of just under $20,000. this tuesday it was trading just over $3500. that is when erik schatzker sat down for an exclusive interview. he runs a cryptocurrency bank galaxy digital. they think the worst of the route is over. for the next foreseeable future we are going to be between 3000 and 6000. if we plunged a 3000 they get worried we could go to 2500 or lower but i think we are close to the end of the move on the downside. in the last few days we have seen big capitulation in price and big spokesman. bign kelly u.s. been a advocate of crypto turned bearish on the lows. those are usually good signs and is close. >> a number of people in the crypto community say the cost of bi

coming up, interviews with former fed officials alan greenspan and bill dudley after the decision cameplus, bank of america c.e.o. brian moynihan weighs in with his perspective on the fed and the economy. >> we're more worried about the factors outside the system. stock market prices. taylor: this is bloomberg. ♪ ♪ >> welcome back to "bloomberg best." i'm taylor riggs. this week marks the one-year anniversary of peak bitcoin. on december 17 of 2017, the cryptocurrency climbed to its all-time high value of just under $20,000. this tuesday, it was trading just over $3500. erik schatzker sat down with an exclusive interview with michael novogratz who runs the cryptocurrency marvin bank galaxy digital. he thinks the worst of the rout is over. ♪ >> for the next foreseeable future we will be between $3000 in $6,000. if you plunge through 3000 they worry, but i think we are close to the end of the downside. in the last few days we have seen big capitulation both in price and from take spokesman. brian kelly, who was a big advocate of crypto, turned bearish. those are usually good signs that t

new york fed president bill dudley backs the decision to raise rates at its final meeting of the year our exclusive interview with dudley next. this is bloomberg. ♪ matt: welcome back to the european open. we are 46 minutes into the trading session and looking at a mixed picture across europe with the ftse gaining slightly and the dax dax down one third of a percent. former new york federal reserve president bill dudley has backed the decision to raise rates at its final meeting of the year. in an interview the day after the central bank's decision, kathleen hays asked him whether financial conditions are well-balanced right now. bill: financial conditions until october had tightened at all, even as the fed was raising short-term interest rates. stock market up, price is narrow. monetary tightening will only work by tightening financial conditions, you didn't get any traction until october 1. i don't think seeing financial conditions is a problem. only if it becomes so severe it has to be in effect on the economy. broadly speaking, the fed wants financial conditions tighter because it

as bill dudley said, it is the fed's job to be concerned about the economy. if this goes on for a few more weeks, it will affect the economy because consumer confidence will be diving. you have a leading indicator. the fed really need to step in here and say something to soothe markets. of january, week you do have jerome powell and a few other fed people speaking. it is a great opportunity for them to try to calm things down because if they don't, they could have a real bloodbath on their hands. anna: good morning to you. what kind of circuit breaker could we hope for here? you referenced fed speakers. we have a circuit breaker on the cards in the u.s. with the potential for a shutdown in government. you have softion, seekingon it -- been comment on it, how to best trade the u.s. shutdown? which assets could be good for? mark: we had a rare situation yesterday where at the close of business, the u.s. dollar was down, the s&p 500 was down, and treasury bonds were down. that is a signal of cell america. -- sell america. investors must see the chaos in america

earlier, bill dudley told us the fed is not paying much mind to the route right now but that could changethink jerome powell in his press conference yesterday made it clear he is thinking about it. he is talking about the tightening of conditions and says the fed is taking that on board but he said financial tightening had to be significant and long-lasting to have an effect on the economy. and of the day, the thing to focus in -- on is what is the fed's outlook for growth, what is the consequence on employment, and for wages and prices? says in their forecast that despite the selloff in the stock market, despite the slowdown in global growth, the economy is at above trend case next year. -- pace next year. >> what would you say to people who don't understand what you said? is there a point where a stock market selloff -- the fed says we had better cause? if this went on farther for longer and changed the fed's of you about the outlook. the fed is looking at the stock market broadly, but also the economic news. what is happening to payroll employment. they need to see gains of about 100,0

i talked to bill dudley. he said the thing was, this was not a close call. it was easy for the fed. did politics into her into this? he said it was not have to think hard about it. the question i dismissed completely at first -- know everyone is taking it seriously. the president cannot legally fired the head of the federal reserve. the fed was created by congress. the constitutional power to coin must -- coin money and regulate its value -- if you want to take it to his endless level and gave protections,e senate confirmation and six terms. this is interpreted as the courts as eliminating the president's authority to dismiss appointees, to give them greater independence. there was a ruled by president roosevelt, and sec commissioner who is forced to step down, and ultimately rejected. it seems like luckily, there's not too much ground to maybe that is why president trump appears to be backing down now. paul: yeah, and we get news on the bloomberg today there's a possible powell-trump meeting in the pipeline. you've got to wonder. that's probably going to be a bit more productive th

caroline: that was our exclusive interview with bill dudley.econd busiest airport is open after more drown drama. details -- drone drama. this is bloomberg. ♪ caroline: senator bob corker announced mitch mcconnell and chuck schumer have found a path forward. they will be outlining this in the senate. we haven't got an exact timeline. we will see if it is imminent. there will be a path forward from this stalemate when it comes to the border row and shutdown. , serviceshe holidays resumed in london gatwick after another drones spotting caused delays. over 36ere delayed hours. robert levinson joins us with more. i'm worried about this because i am about to get on a flight to london, luckily not gatwick. how much can this be repurposed? how easily, these two drones -- could anyone be using this? what is defense like for these consumer use goods? easy.s is you can purchase drones, go to your local best buy. anybody can fly them in, and they pose a tremendous danger to commercial aircraft. the case was getting sick into the aircraft on final. -- the

later today, bill dudley joined the mark marquess for an exclusive interview following the fomc's final meeting of 2018. do not miss that interview, his first since leaving. if you have to step away tune in to bloomberg radio. this is bloomberg. ♪ nejra: we could see the decline continue for u.s. equities after the sp hit its lowest level. equity markets did not like what drum powell had to say. 75 level.it to -- to the nikkei lower and the topix has entered a bear market. we are at $47 a barrel. the euro on a 113 handle and fund futures show they could see bundp lower in the 10 year yield when the european bond markets get going. we are asking the question on mliv, how long until u.s. stocks enter a bear market? you can join the debate and reach out to us on tv on your bloomberg. your g10 rates, you have an interesting answer, how long until u.s. stocks enter a bear market? lawrence: i think it is the aboutquestion, it is not how long does it take for the stock market to come down 20% from a peak sometime last year. if you look at the beginning of last year we are down around 5%.

bloomberg, bill dudley will join bloomberg markets for an exclusive interview. following the final meeting of 2018 for the fed. do not miss that. elderly is an exciting character to listen to, his first interview as well since leaving the new york fed, that is at 7:30 p.m. u.k. time. let's get the bloomberg first word news with debra mao in hong kong. area: asian stocks following u.s. markets lower after fed chair jay powell signaled he saw little threat to the economy from the recent turmoil on financial markets. after defying president trump and raising u.s. interest rates for a fourth time, he posted caution about the path and destination of any further hikes. according to their forecast, policymakers expect to rate increases down from the three projected in september. >> inflation has still remained a touch below 2%. i do think that gives the committee the ability to be patient in moving forward. as i mentioned, there is significant uncertainty about the path and the ultimate destination of further rate increases. voted the u.s. senate has emphatically in fa

that was a bill dudley speaking exclusively to bloomberg. now take your business flash.cy is to buy a 50.01 percent stake in the airport. inspected towas complete of the first half and 2019 and comes less than a week after the airport was thrown into chaos by multiple sightings of an illegal drown. ended according to the investment company institute. billion, the biggest outflow since october. but investors added more than $25 billion into traded funds. india has tightened rules for foreign investment and e-commerce companies. retailersnistry says like amazon.com, which acts as a facilitator, must treat all the vendors equally i providing the same terms. the rules are an attempt to stop predatory pricing. that is your bloomberg business flash. bloomberg has learned that the u.s. and china are set to reopen talks, the first since president trump and see jinping -- xi jinping agreed to a nine-day troops. our senior -- 90 day truce. our senior editor joins us from hong kong. how much progress can we actually expect from this? >> i think expectations are being cap in check o

former member bill dudley told the fed not paying much mind right now, but that could change.kets should understand the fed doesn't care about market prices for themselves. they only care about market prices in terms of how it affects the economy, unemployment rate, and inflation. the fed is not there to take away the market's pain. they are there to follow monetary policy of sustainable appointment -- employment. the fed dialed it back yesterday. they went from three hikes in 2019 to two as the median estimate. they made some language that suggested maybe they are not going to do as many, some gradual rate hikes. they added the issue of financial conditions being a factor. they added the notion they are watching what's happening in the global economy. seems to me they did dialect back. maybe they didn't -- dial it back. maybe they didn't while it back as much as markets would like, but they did dial it back. >> last time you came to sit and talk to me, we had a downdraft. you said this is not going to affect the fed. this is small potatoes. since then, we've had a steady decl

coming up later, an exclusive interview with bill dudley, former new york fed president.owdown this year, but one carbon -- one car company is outperforming the equity market, and it may not be the one you expect your it it is tesla. out thisler lays it morning. he is going as now welcome back, matt. yearsla has had a good despite everything we heard. matt: it has had a great year, actually. hard to believe that it may be its best year in terms of relative value. tesla has outperformed every major car company, 10 of them, let's say, this year in terms of sales growth, equity performance, and product, loyalty. this new model 3 has turned out to be the best-selling car in america in terms of revenue, which is sort of extraordinary when you think about an electric vehicle. david: we have a chart that shows the total market cap of tesla, gm, and fort. fall, the fell below gm, but it shot back up again. even though they make a handful of automobiles compared to gm or ford. matt: the key thing to watch is over the past five years, the so screw it -- the sales growth, which has

still ahead on this show, perspective from former new york fed president bill dudley on the central bank's david: but first japanese stocks are off to the races on the heels of what was a very extraordinary day really in new york trade. we'll get more from corrine png next. this is bloomberg. ♪ david: welcome back. you're watching "daybreak asia." i'm david ingles here in hong kong. kathleen: and i'm kathleen hays in new york. so with us corrine png, a.i. investment management regional head of equities research. so corrine, trade, they're not going to kiss and make up any time soon. that's your view. are you not hopeful that perhaps u.s. side, china side, starting off the new year with a meeting on january 7, what do you need to see to make you say, aha, this is it? they're final will he at the point -- it may take some time but they're really ready and make a deal they can agree on? corrine: yeah. both sides need to feel a bit more pain in -- in order to, you know, be a bit more amicable about having a better deal. but what we will look to see and what investors would look to see is that

fed president bill dudley speaking to us. let's check in now what's going on the markets.e in 48 minutes into the trading session. coming to about 4/10 of 1%. after are accelerating bouncing between green and red. futures are now down 0.6%. the seat of the top this green, the stoxx 600 index is now down 0.7%. .t's down 16% of its high the dax index is down 22% from the january 23rd, 2018 record. firmly in bear market territory. the cac is down 1% as is the euro stoxx 50. this is bloomberg. ♪ >> we may not have the strength to respond. at the imf important to fix the roof of the sun is shining. to try to put off that downturn and make sure it's not a severe one. economics, finance, politics, this is bloomberg surveillance. i'm matt miller in berlin. to draw your attention to a couple of interesting charts about we'vetory seen this year in european equities. first off, this is a chart that shows yearly losses or gains going back to 1999. 2018 is setting up to be the worst year racing for european stocks 2008. that's a pretty serious superlatives but i also want to show you a

bill. william dudley, the former fed president of the new york courts for years.mics as goldman sachs. here's build a -- deadly on the fed. in the markets should understand the fed does not care about market prices for themselves. they care about market rices in terms of how it affects the economy, the unemployment rate, and inflation. the fed is not there to take away the markets pain, the fed is there to follow monetary policy that best achieves its twin objectives of sustainable employment and price stability. , 48 hoursliquidity after that with the secretary of treasury. -- with us of the u.s. to talk fed. it is a dual mandate but it has become a triple mandate. after the crisis of 2007 p that is asset bubbles. how lovely are we right now? thanos: i don't think we are that bubbly. has operated at times of the course of the last 10 years thinking that the bond market is about to burst. i think that the threshold for that story is still extremely high. if anything, the market has been behaving, even during this time of stress, indicating that yields are going do