bond prices? is it time with rates at 0, bond rates at 0, 2% in the u.s., is it time to start thinking about goinger way? i'll leave that to the bond guys. gary: oh, i really wanted your opinion. [laughter] you know the bond guys were all over tv this week saying -- and many of them have said it in the last year or two years, that the bond rally, the 30-year bond rally is over. >> right. gary: the bull market's over. do you agree with that? >> who knows if they're right in terms of plead timing, but -- immediate timing, but the aoff could be enormous. >> a lot of people making that call for the last six years, and they've been dead wrong. maria: yeah. "wall street week" continues in a moment. >> why is the tech sector bucking the trend? jim theys not -- chanos gives us [vo] quickbooks introduces jeanette. and her new business: i do, to go. jeanette was excellent at marrying people. but had trouble getting paid. not a good time, jeanette. even worse. now i'm uncomfortable. but here's the good news, jeanette got quickbooks. send that invoice, jeanette. looks like they viewed it. and, ta-da! paid twi

bond prices? is it time with rates at 0, bond rates at 0, 2% in the u.s., is it time to start thinking about going way? i'll leave that to the bond guys. gary: oh, i really wanted your opinion. [laughter] you know the bond guys were all over tv this week saying -- and many of them have said it in the last year or two years, that the bond rally, the 30-year bond rally is over. >> right. gary: the bull market's over. do you agree with that? >> who knows if they're right in terms of plead timing, but -- immediate timing, but the aoff could be enormous. >> a lot of people making that call for the last six years, and they've been dead wrong. maria: yeah. "wall street week" continues in a moment. >> why is the tech sector bucking the trend? bucking the trend? jim theys not -- chanos gives us bucking the trend? jim theys not -- chanos gives us i've spent my life planting a size-six, non-slip shoe into that door. on this side, i want my customers to relax and enjoy themselves. but these days it's phones before forks. they want wifi out here. but behind that door, i need a private connection for my busines

bond prices? is it time with rates at 0, bond rates at 0, 2% in the u.s., is it time to start thinking about goingi'll leave that to the bond guys. gary: oh, i really wanted your opinion. [laughter] you know the bond guys were all over tv this week saying -- and many of them have said it in the last year or two years, that the bond rally, the 30-year bond rally is over. >> right. gary: the bull market's over. do you agree with that? >> who knows if they're right in terms of plead timing, but -- immediate timing, but the aoff could be enormous. >> a lot of people making that call for the last six years, and they've been dead wrong. maria: yeah. "wall street week" continues in a moment. >> why is the tech sector bucking the trend? jim theys not -- chanos gives us i'm just a guy who wants to buy that truck. and i'm just a guy who wants to sell him that truck. so i used truecar. it told me what other people in the area paid for the truck i want. and because we're a truecar certified dealership, i already know the truck he wants. so we're on the same page before he even gets here. -it's fair. -and it's

bond prices? is it time with rates at 0, bond rates at 0, 2% in the u.s., is it time to start thinking about going? i'll leave that to the bond guys. gary: oh, i really wanted your opinion. [laughter] you know the bond guys were all over tv this week saying -- and many of them have said it in the last year or two years, that the bond rally, the 30-year bond rally is over. >> right. gary: the bull market's over. do you agree with that? >> who knows if they're right in terms of plead timing, but -- immediate timing, but the aoff could be enormous. >> a lot of people making that call for the last six years, and they've been dead wrong. maria: yeah. "wall street week" continues in a moment. >> why is the tech sector bucking the trend? jim theys not -- chanos gives us the companies he sees riding high and which ones to avoid next on "wall street week." as after a dvt blood clot,ital i sure had a lot to think about. what about the people i care about? ...including this little girl. and what if this happened again? i was given warfarin in the hospital, but wondered, was this the best treatment for me? so

bond yields started to rise. of course with rising yields comes rising mortgage rates. diana olick on what the spike means. >> reporter: as president-elect donald trump met with leaders in washington today, investors around the world continued to back out of the bond market, which in turn pushed u.s. mortgage rates, which loosely followed bond yields to their biggest two-day gain in three years. >> in terms of actual interest rates, we moved a quarter of a point higher in two days. that is relatively unheard of, we can count without using any of our toes, back at least a decade. >> reporter: the average rate for 30-year fixed mortgages are still historically low. but it could keep some buyers from qualifying for a loan. rising rates also just plain scare buyers. >> psychologically we feel like 3.875 is a much higher rate than 3.3625, if that's what we're looking at. the psychological impact is fairly substantial. >> reporter: the rise in interest rates is also hitting the stocks of those who invest in real estate. >> reits are derivative of the economy. interest rates go

bonds to stocks before. in early 2013, treasury yields shot up recently to 3%, and sparked such a response, but those trends soon reversed. if ratesontinue higher, of course, most investors will likely flee bond funds that many bought for their perceived safety. in that case, equities would be a logical destination. in the latter stages, the public becomes excited and helps push them higher. stocks are far from cheap as the indexes click to record highs and corporate profits. of course, current hopes for growth-friendly trump policies might fizzle on contact with political and economic realities. it's hard to president-elect barack obama whether a great rotation would also represent a last hurrah. for "nightly business report," i'm mike santoli. >> so can stocks extend their gains? joe durand is ceo of united capital. that's the question on the table, joe. can they? >> absolutely can. you have two big things that are affecting us today. one, what do we think is going to happen with the trump administration. if you end up -- if he passes only one thing, which is reducing corporate taxes, that has a huge impact on earnings. and they

is going to increase the debt and a lot more bonds out there and a lot more supply of bonds means higher interest rates. also, it is confrontational talk with a lot of foreign entities that own a lot of u.s. bonds like china. they own a lot of bonds. if they were to start to sell that could drive rates higher too. i think there are a couple of things sending rates higher right now, but that is going to mean if this continues, higher rates for buying a car or a higher mortgage for buying a house. we've seen those moorage ratrtg pick up as well. you asked about the bond funds. if you hold bond funds, you will see those prices drop. we have seen some pretty good drops and even the etfs, some of the municipal etfs and others. you should kind of expect it. as these rates go higher, these bond prices will come down. if you have a bond holding as part of your financial plan, you really should stick with it and not panic, but i think probably something towards the shorter end of the bond curve makes more sense. >> and what about stocks, because we have seen this kind of parabolic move upwards and we're at anot

of the things we didn't mention is the economy getting better, which would be one of the reasons bond rates are going higher and yields have spiked. i don't think that's the reason. i think yields have spiked because people that own our debt are terrified that the man who made a career out of defaulting on his debt, the now president-elect, may play that game in the white house. >> the market would not have run if that was the reason. banks wouldn't have run. i think it has more to do with rates rising. >> let's add one more thing to that. we're probably going to get repatriation of a couple of trillion dollars. it's hard to be extremely bearish on u.s. assets when you have a wall of money that's going to be coming out. even if the economy doesn't get better, i would not want to get in front of that freight train. >> take a look at home improvement trade, you would have thought the spike in rates would hurt the home building trade but in actuality it's been on fire as well, whether it be the homebuilders as well, the suppliers, the whirlpools of the world? >> there was something to the whir

you may have heard that bond prices move inversely to interest rates. here's why. if you own a 10 year u.s. government bond that's paying 5%, it will be worth re sam are only paying 2.2%. conversely if your bond is paying 2% while new bonds are paying 5%, no one will be interested in yours and the price will fall. so with current interest rates on the rise, your bond mutual fund will drop but you will be able to reinvest at lower prices which should help the port fogo over the long-term. over the long-term. i am jill schlesinger. >>> beautiful color on the eastern who horizon and head together mountains today, it's windy on some of the passes part of the storm system coming in. we will detail what's going to come. >>> coming up a broadway actor speech to vice president mike pence. vice president-elect mike pence is a hot topic. >> truly hope this show has inspired you to uphold our american values and to work on behalf of all >> after calling the cast of hamilton rude on twitter president-elect donald trump continues to tweet about the on know what's in this box? we

you're saving for retirement and you've checked your bond funds lately you may be surprised to see their value has dropped. that's because interest rates have been rising, after years of bond funds the party might be over. what does it all mean? bob doll is chief strategist. thank you for joining us. what do you make of the increase we've seen in interest rates and what does it mean for people holding some of these bond funds? >> well, i think there are three reasons interest rates have become to move higher. one is economic growth it's been better. we have had a good october retail sales number. a very good number. the lowest unemployment claims for 44 years. the economy is doing better. inflations are beginning to move from very low to low. we have an election and it looks like we'll get pro growth policies. all of that has caused interest rates to move up about 100 basis points. 1% from very low levels to still low levels but probably heading higher. >> if you say they're probably heading higher because of these bond funds be selling them? >> well, people have owned bond funds for a long period of time. they've had a wonderful ride.

. >> the reporter: now recently moody's bond rating system had could go down because of the results of question two. those communities including springfield, lawrence, fall river, and over, possibly boston. we're here at j.j. foley's in the south end, they have crews, they have all kinds of folks canvassing the areas and at the polls to get those election results as they come in, and we will bring those to you. for now reporting here in the south end, crystal haynes, fox 25 news. >> quick look now at the other ballot questions. question one is about slot machine gambling. a yes vote would mean the gaming commission could give a license to a second slots parlor. a no vote would mean the gaming would stay the same. >> vanessa: breaking news from polls. a shooting in southern california has put a nearby we're told at lesion five people were shot and the crime scene is spread out. two nearby schools are on lockdown right now, as is the polling place that's nearby. we'll keep checking in on this situation, this breaking situation, and let you know as soon as we get new information. well, wh

we could bonds mean higher interest rates -- weaker bonds mean higher interest rates. could be interpreted positively or negatively. positive if you believe that we were at risk of deflation. if interest rates are moving upward, getting an inflation expectation moving up, which seems to be happening, look at the markets, that tells you that deflation is the diminishing concern. it is a negative if you think that what we are seeing is more worried about the credit worthiness of the u.s. or that you think that maybe inflation could go not just up to the fed's target but above it, and that the fed, having been so accommodated personal long, is going into a switch mode and going back to its traditional role of restraining and overspending government. carol: turning a silver lining into a cover image was good job of director rob. crowd: echelon -- oliver: this cover is exciting, tell us what is going on. rob: we wanted to do a cover to two people. what better way than with puppies, kittens, chocolates, sundays? carol: all the stereotypical things. rob: all the stereotypical

investor services say boston, lawrence, spring field and fall river could all face down grades in the bond ratings if voters approve question two which is an expansion of charter schools. a lower credit rating can lead to higher borrowing costs for municipalities. >> mark: we have new video tonight on the toll booth demolition me ted williams tunnel in boston. massdot says construction along the mass pike is still on the bulk of their work in next three weeks. all electronic tolling started friday night and we are told, more than five million cars have passed through. you thought you avoided major road construction by staying away from the mass pike toll demolition, get ready for this. there is another big construction project you'll want to steer clear of. major work begins on 128 this weekend, tearing down the highland avenue bridge and we highlighted the old bridge sections here. the remnants of the old bridge will come down starting friday night. this entire stretch of 128 will be shut down at some point. check out this map. it impacts newton, needham and 128 or 95 in this stretch. work starts

the bond market going, higher interest rates. have to discount the future cash flows at a higher rate and that compresses multiples. earningsing to get and growth, stimulus, but lower multiples eventually from the higher interest rate that come. guy: what is the long run right now? patrick: biotech. that is a trade we think has legs. the deregulation there is a high-growth area. consensus, 14% revenue growth for the biotech companies trading at 18 times earnings, a very small premium. european industrials, we think there's going to be economic growth. the european industrials trading at 30% below u.s. industrials, and getting a yield of 2.5%. is going to be capital spending. not just from governments but from private and residential's, all of these things, there will be more capital investment going forward and we think it has been an area that people have deferred decisions for a long time. guy: whatever it is does not work anymore. patrick: exactly. overall, we are long in europe, america.erest rates in food and beverage, short

rate mortgage is 4.19%. on election day, 3.62%. the increase comes from treasury bonds tied to mortgage rates. r of stocks. when you sell bonds, that drives the rate up. they believe trump administration will lead to more spending and stinfrastructure. it makes it easier to hike the target rate next month. >>> a $200,000 mortgage with a 3.5% interest rate is $1123 a month. the same mortgage at 4.25% is $1,230. all of that in just three weeks. check out the new cnn money stream app. stories and videos and topics all in one feed. download it now on the google store. we are covering big deals as well. the bottom line is mobile kept people out of the stores. foot traffic down. >> i have been buying all my gifts for you on mobile devices. >> do you have all of the sizes? >> that's "early start" for us today. i'm christine romans. >> i'm miguel marquez. 12 angry tweets protesting the recount and the transition is taking a nasty turn. "new day" is picking up the story now. >> trump claiming he actually won the popular vote. >> green party has the legal right to do it. we have recounts almost every ele

as bond rates go up that made pressure stock but that's an indication of economic growth. >> good to, gentlemen, on this thanksgiving. >> happy thanksgiving. >> gary, scott and brian, take care, all three of you. >> forget door busters. why more retailers are closing their doors today. and for city mayors vowing to block deportation of criminal illegal immigrants, what does the president-elect and his choice for attorney general, what do they have planned? get ready for a showdown. ♪ when you have $7.95 online u.s. equity trades lower than td ameritrade, schwab, and e-trade, you realize the smartest investing idea isn't just what you invest in, but who you invest with. you realize the smartest investing idea imy moderate to severeng crohn's disease. i didn't think there was anything else to talk about. but then i realized there was. so, i finally broke the silence with my doctor about what i was experiencing. he said humira is for people like me who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. in clinical studies, the majority

>> first of all, if the fed doesn't raise rates in december they are never going to raise rates again. the bond giving them car carteblanche to raise rates. so december seems to me that the fed absolutely should raise rates in december if they plan to ever raise them again. this idea will they accelerate the rate increases with fiscal stimulus is an interesting one. first we have to see if the fiscal stimulus takes shape and fit has any effect. i mean one way to do fiscal stimulus is to take people on welfare, receiving welfare payments and say we just won't give you money for being on welfare we'll tell you to go into the backyard, dig a hole, fill it in, give the same amount of money but call that a job. that does nothing to move the economy. if you get a fiscal stimulus that builds things like walls and airports and bridges and brings people who are under employed or part time employed into the workforce and they get more money from their job then i think you do have fiscal stimulus. but i think we're way ahead of ourselves on this. it's easier said than done and we're not sure what exact fo

they can go up in value as opposed bonds if they raise rates my bonds go down only. no rate hike in december. folks, check it on the screen. i told you to stay with me. witnessing it right now. all major indices, all four of them closing at new record highs. we cued the fireworks. we're about 50 points away from dow 19,000. wow, make that 45 points away. [closing bell rings] volatility index is the lowest since september on thin volume. david and melissa. david: the trump rally continuing and if you're in stocks you're making money today, quite a bit. a record day on wall street. the dow, nasdaq, s&p 500 and russell, small, mid-size stocks, they're all new lifetime highs, first time since march 2015. the dow a little less than 50 points below dow 19,000. i'm david asman. melissa: i'm melissa francis. we have you covered on all the big market movers. what else is coming up at this hour, the high-level meetings

bond prices are going to fall and faster rates rise if harder the bonds will fall, something truly felt by anyone who puts money in a long-term bond fund which can lose money if rates shoot up if the federal reserve doesn't raise rates. say that. it means that you likely won't generate enough to retire when you want to. there are times when bond prices have a downside risk. they can certainly drop enough to erase two or three worth of coupon payments as okay. what else falls under the category of recklessness? popular 401k? stable value funds. this is just a type of fund that gives you a slightly better than and -- unlike bonds they have insurance wrappers. if the return is then the smaller term is even worse. the definition of become prudent you become irresponsible. help you use your money to make more money. it requires work and you can't be on auto pilot as so many of you are. when you're in your 401k put money into stable value bonds you're taking it off the table. you're saying i just want to keep it safe. you can't really have it both ways. if you cling to safety and you younger.

then as interest rates go up there bond value goes down, if you colozza bonds, those went down, >> why should they do at this point., the fed will be meeting in a couple weeks, if they rais interest rates because theyey could signal the stock market may do well but the bond market could go down. holdings maybe i back off a bit and maybe go more aggressive in terms of stocks.. it's nice to be talking more optimistically. we have a market update on thursday and i had to rewrite most of the slides because not because of the election but because of wall street's reactionotbe which has been dumbfounding. the takeaway is that short-term, you might go more aggressive. you should watch bonds, you need more short-term bonds.bo rachel after the first of the yearar to see who they put into thet cabinet positions to see how wall street reacts, you might b a time after wall street might if you have financial questions, need more info, from szarka financial go to fox 8.com. these days joe biden has become an internet sensation >> social media is going crazy after a photo of the vice president for hi

governmnet bonds falling, the odds of a fed rate hike approach 100% in anticipation of donald trump'sim presidency. they've pushed indices to overbought or oversold levels. how do we play these markets from here? footing.e to find some the markets are trying to find the right level to trade from. at that point we will start acting about how trump will , given that we have a need to do more assimilated fiscal policies. mark: on the fed, december is looking a certainty. do you agree -- where does the fed go from there? some suggesting another couple 2017.e hikes in what does that mean for the bond market, for interest rate sensitive assets? after long years of low interest rates, we have phase now where the markets will be moved no by fiscal policies, by infrstructure investments, and interest rate hikes. we'll look how inflation will be after that. bit uncharted territory. vonnie: you have to make some decisions before year-end. how do you make those decisions when there is so much uncertainty? >> we have to look at where we are in macro development today. point, inok at this europe an

perhaps a couple of times in the first half of the year, because they want to increase it and the bond ratehat two more times, in 2017, i see the yield curve starting to flatten, not steepen. because inflation will not pick up. and a decrease in inflation rates will depress as a result. jonathan: so on the one hand, using the selloff on one end of the curve is overdone. you also think a divergence in monetary policy will be learned all over again. but you remain the dollar bull. at dollar you remain bull but the federal reserve cannot go as far as people think it can? komal: when you look at the dollar exchange rate, we think as the relative price. the price of one commodity with respect to the other. in that case, it depends on what is the demand for each of the two currencies. in this case, the dollar of theh is a deflection weakness of the euro, the weakness of the pound-sterling as a result of brexit, and yen, which should not be at 112 but at 130 to 150. given those, you were talking about dollar strength coming from the rest of the world's weakness. second, if you have a total of thre

guest: bonds and rate expectations have shifted so dramatically. the u.s.t has been strengthening consistently for ofee years and yet a lot people are abandoning their medium-term beliefs about interest rates. that's very often a strong contrarian signal. when you have fed governor saying we are in a new regime of lower than ever interest rates, it should not surprise you that you get something approximating a bond panic. scarlet: this is the markets impression, but what about the fed? how does the fed interpret the election results? yelleni remember janet saying that we could do with some this. it was. so i think the economic discourses very ironic relative to the europe -- relative to turn -- relative to europe and u.k.. trump and yellen may actually find a lot of ground. scarlet: we will discuss rising inflation expectations, next. this is bloomberg. ♪ scarlet: i'm scarlet fu. time for the bloomberg business flash. to. regulators are rushing issue sweeping limits on wall street change before president-elect all trumpets warn and according to people famil

manus: the inflation expectations, the ratcheting higher, not one analyst thought these rates -- the bondwould break 2% before the end of the year. ,onald trump in the white house but the market is assuming inflation. offt yellen wanted to get zero, good news, so what is on the table for next year, three hikes, four hikes? it depends on how quickly he spends the money. if it is frontloaded, it will be an inflation problem. given that the u.s. is getting close to full capacity, and unemployment rates are down now. thefront loading of spending will lead to inflation pressure in the u.s.. markets fed will do, are anticipating two great increases next year after a rate increase at the end of this year , but if he decides to frontload, then market expectations can only go up. what do you advise then? if you are taking a look at the climb asare saying it the dow hit a record, but are there headwinds likely? i think we can see further upside in equities, but it has to be combined with upgrades to earnings forecasts. people have to get enthusiastic for the growth rate for 2017. donald trump has t

a swift move in the bond market is telling us what the trump economy may look like. higher inflation. faster economic growth. raising interest ratesthe yield on the ten-year u.s. treasury bond is 2.23%. look at that pop. on the day of the election, 1.85%. investors are selling bonds in favor of stocks. when bond prices fall, yields rise. mortgage rates are tied to the yield. it could signal mortgage rates will increase as well. the bond market is the most reliable indication of trump policies. >>> peter thiel will be one of the dozen members of the transition team. thiel co-founded paypal and is a facebook board member. he spoke at the national convention. he donated more than $1 million in the final weeks of the campaign. how will he help trump? the mission of the team will be clear put together of successful leaders to put together the change agenda in washington. and donald trump jr. and eric and ivanka trump on the transition team. he puts the children on the inside of the transition team where they will be helping shape policy and appointments. interesting. >> a lot of questions there. we will talk about that in the next hour

the bank of japan has announced operations to purchase an unlimited amount of bonds at a fixed rate. it comes after the 10 year jgb yields turned positive for the first time since the doj announced pegging the rates at zero. it has been caught in the global route sparked by bets that donald trump's stimulus policies will drive up inflation. joining us now in london, erik britton. great to have you on the program. lots of the world to address with you, and the united states, and britain, we'll come to this. the bond rout is something not specific to japan, not driven by japan, but we see the boj having to take action to limit bond yields as was their policy in september. eric: i can't help thinking of the phrase "fiddling while rome burns." they want to manipulate timing, movements in the yield curve which obviously is matters of bond traders and so on, but let us not forget that japan has been in this situation for 25 years and counting, a very low growth, a very close to zero yields, all the way down the yield curve. do we really think that shaving enths tens off the- t awful make a

rate is 4.19%. on election day, it was 3.62%. the increase comes from treasury bonds tied to mortgage rates. vestors are ditching bonds in favor of stocks. the strong stock market reaction ma makes it easier for the fed to increase rates. that means a $250,000 mortgage with a 3.5% interest rate is a payment of $1,230 a month. that same with a $ 4.25% rate i $1,230. check out the money stream app. all the topics all in one feed, miguel. download it now. >> i'm happy you did all that math for me. >> higher mortgage rates cost you more to finance a house. >>> thank you. "early start" continues now. president-elect trump launches into a twitter rant claiming he won the popular vote in the presidential election. >>> a tale of two cities in the wake of fidel castro's death. people in havana grieving and in little havana, they are dancing in the streets. >>> and welcome to cyber monday as it is known. millions of americans hunting for the best online deals. you are the hunted as well. don't be fooled into deals that are not really deals. >> you love that. >> good morning. welcome to "early start." i

rates. only 28% of people answered that one correctly. considering that bond prices have plunged since the election the prices moved inversely to interest rates. here's why. if you own a 10 year u.s. government bond that's paying 5% it will be worth more now when new bonds issued by uncle sam are only paying 2.2%. if your bond is paying 2% while new bonds are paying 5%, no one will be interested in yours and the price will fall. so with current interest rates on the rise, your bond mutual fund will probably value. but don't worry. you will be able to reinvest the dividends at the lower prices which should help your portfolio over the long-term. in new york i am jill schlesinger. >>> now let's check forecast with chris. >> i was looking at a couple new snow models. this is the rpm model southwest colorado has a lot of snow on the way. we will talk about the timing of all this coming up in the next half-hour. >> also coming up a. broadway >> we truly hope the show inspired you to uphold our american values and to work on behalf of all of us. >> after calling the

. >> boj has announced its first operation cut, and unlimited amount of bonds at a fixed rate to rein in the fastest surge in the yields since august. they decided in september they would control the sovereign yields curve. this was the first time since changed policy come up them near 1%. day,g for a temp straight the currency trading, 14 of 16 analysts see it weakening in the first half of next year. the latest data show china is holding, at the lowest level in four years in september as beijing ran to support the yuan. philippine shares jumped after gdp growth, 7% last quarter. it underscore the nation's resilience to global risks. he is planning a $160 billion infrastructure program. we can expect philippine gdp to expand police 6% over the next two years, among the fastest growing in the world. twoending the contract of senior executives in guinea. they are leaving. sayingued a statement, it is not prejudge any external investigation of the project. they said the pair failed to maintain code of conduct standards. global news 24 hours a day powered by more than 1 -- more than 2600

rates. from a point where emerging market equities and bonds have seen very strong inflows from retail investors this year, up to recently. that is now being -- with a stronger dollar, we are seeing monetary rates that continues to -- cem underperform could continue to be an issue. personally, i am not convinced china is going to hit a crisis anytime soon. there are a lot of political changes about to happen in china, and we think that the chinese authorities will do whatever it takes to continue growth above 6%, at least until then. me, to stopkey, to e.m. turning from underperforming into a crisis. mark: great to see you, thank you for joining us. vonnie: coming up, theresa may will say that changes in the air in her first speech since donald trump's surprise victory, last week. this is bloomberg. ♪ vonnie: live from london and new york, i'm vonnie quinn. mark: this is the european close. 14 minutes until the end of the monday session. the u.k. prime minister will give her first major her firstlicy speech, in-depth comments on donald trump's victory in last week's presidential election. what s

what do you make of the increase we've seen in interest rates and what does it mean for people holding some of these bond funds? >> i think there are three reasons interest rates have begun to move higher. one is economic growth. it's been better. we had a good october retail sales number. recently a very strong durable goods number. the lowest weekly unemployment claims in 44 years. the economy is doing better. number two, inflation's beginning to move from very low to low. and on top of that we've got an election. and looks like we're going to get some pro-growth policies. all of that has caused interest rates to move up about 100 basis points, 1% from very low levels to still low levels but probably heading higher. >> so if you say they're probably heading higher because fundamentally things look pretty good, should people who own some of these bond funds be selling them? >> well, if people have owned bond funds for a long period of time, they've had a wonderful ride. as you pointed out, we've had a long-term bull market in bonds. i think investors need to take a look at how much do i have allocated t

rates in the u.s. will rise, obviously there is only one way for the bonds to go. i guess a rate rise in the u.s.something the world has been talking about are the last 12-18 months or even longer than last -- longer than that. about all ofking 75 basis points increasing over the next 12 months, it is negative for the bond prices but we think overall the return for the bondholders will remain positive. that dollartrike me from's win in the u.s. election has turned on its head the fixed income investment environment that we've had for some time. slow expectations for economic growth, low inflation, a relatively sedate pace of rate rises. when you talk to your clients, how much change to they see on the horizon and how many queries are you getting now about this potentially new investment outlook? >> there's a lot of exuberance on just assumptions and promises. even articulated how all those policies are going to be implemented -- donald trump has not articulated how those policies are going to be implemented. if we look at yesterday's reaction, the 10 year yield closed three or four basis points l

right now. so you have to expect the commodity markets will change in that fact. what do the bond possible rate hike is that pretty much expected at this point? i believe so. you know we really think the bond market headed lower for the last couple months now. so they very much have been setting the stage for the fed to kick up a raid here in december. i don't really think anybody thought they were going to have a pre election but now that we're beyond the election, there could be no accusations that it was trying to favor one candidate over another. so i think in december point bump, which is realistically not very much but it hasn't changed nonetheless. so in the markets tend to try to anticipate those kind of changes. at the same time, u s dollar we had seen a pretty good run on the u s dollar i think the longest bullish run in three years. where do we sit on the dollar index? we saw it dropped a little bit. what happened? what stopped ? well have a couple of things. i'll first start say the dollar index is essentially a basket of currencies with the yen, the euro, and british pound. so when

bonds. street rates wall for 14% in bonds were called certificates of confiscation.omething that is global. if we are seeing an ad that of the middle class and the lower classes fighting back, income capitalism,, crony then it is a big deal. it is something that you will have to adjust your lifestyle to. scarlet: you made that link. instances of being on democrats, do you think populism leaves too good or bad governance? jim: that will be different. a more populist set of viewpoints in many ways will be more regulatory. enforcement, more criminal actions. you could get the same thing or worse. that is an important thing to figure out. coming,the referendum we have the rise of the right in france. if you see the dissolution of the eu then you know that is something much more momentous. scarlet: you mentioned the italian referendum, the dutch elections,rian german federal elections will be a big one. joe: the was a great headline about the french election. obama was in greece this week. you paid a lot of attention to the eurozone crisis which started in greece arguably

rates will increase. going forward. the bondeliable indication of the market. >>> and peter thiel will be part of the transition team. thiel co- founded paypal. he is a board member of facebook. he donated more than $1 million in the trump campaign in the final weeks. how will he help trump? the mission of our team will be clear. put together the highly qualified group of successful leaders to implement change agenda in washington. and on the transition team, don jr. and eric and ivanka trump. trump pledged to move control of the assets while he is in the white house. what they are saying on wall street is they think he will try to be a transactional president. tax reform and infrastructure and tax cuts. it means cutting regulations with gop control of the house and senate. there's hope that stuff could get done. that's what it likes. that's "early start." i'm christine romans. >> i'm victor blackwell. >> donald trump's policies already have some upset. "new day" starts right now. >> i trust donald trump. >> the first white hous

>> i do not think they are afraid of the bond market rate now. i think the question is going to be whether even with republicans in the senate, the white house and the house of representatives -- whether there is enough of a common vision on what fiscal stress should look like, whether it should be primarily tax deduction, whether it should be spending, how much you should pay for the national debt, where should the fed come in. lots of people like helicopter money. isi think that how you do it going to be a very important determinant of how far rates go and how far the dollar goes. david: steven englander, thank you. you will be staying with us. now for a headline on what is news.on outside bloomberg we do that with emmett davis. >> i think there is a lot to be positive about. important not to prejudge the president-elect or his administration. only a few days into the election taking place, we all need to wait and see what they come up with. i think we should regard it as a moment of opportunity. emma: theresa may will take note of the trump el