have caused the problems the central banks are not the solution the central banks are the problem so salvini might have it right and what's going to happen is when everything goes terribly wrong next time people are going to blame the central banks however the bond or. our horses have already run out of the barn so to talk about it now i mean you've just got to be proactive and make sure that your posture and you have a percentage of your portfolio diversified out of a dollar some in dollars some in silver some in gold some in precious metals but i think the stock market at these valuations is madness i think property is madness i think bonds are madness because the valuations are just way too high so when they say that there is no inflation or inflation is below two percent c.p.i. is a lie so the way they calculate it is you know it's goal seeking they figure out what the number is they want to get to and they make the numbers fit accordingly so if you look at asset prices even tuition prices the way that they have skyrocketed two thousand percent since the one nine hundred eight

thus it should be shifted to the government not the central banks because member central banks now have independence for their member banks as a genius. absolutely correct going for example jim ground from grant's interest rate observer you know you read about it on barron's magazine on wall street for decades he's been talking about this very thing he said the best thing any central banker can do is resign right i mean they're all crooks they're all charlatans are perpetuating a destructive ponzi scheme and premature human extinction to make a quick buck at the price of the future italy apparently this man understands it and i'll be axon of course there are so-called populous rising up around the world and this is this is you know what wall street is worried about and i think his his idea of arresting the fraudsters arresting the four hundred families that looted from the other hundred and fifty million we could reduce the prison population to just people who have created this unstable economic environment which has led to unrest and crime around the world everyone knows in prison shou

the central bank traditionally intervenes to prevent the demise of major banks smaller privately owned financial institutions are more likely to lose their licenses if they are too low on cash. this system of regulation and supervision aims to promote competition strict oversight encourages competition. or. it's pretty even. the reality on the ground however is that state owned banks are increasingly lending to state owned companies the effect of all this is to dampen economic growth western sanctions which make it hard for russian banks to access international markets have compounded the problem. the reality is that we're in the midst of a recession it's not western sanctions that are the cause they simply make the situation worse. particularly the country's increasingly shaky financial institutions are causing people to lose faith in the system a recent survey suggests that one in three russians believe they're best off not parking their money in the bank. for more on this let's bring in correspondent erin tilton in moscow erin we heard about the ailing russian banks there how big of

your thoughts well i mean it sounds like you're agreeing with me actually because you know if central banks are able to impose a negative interest rate. on your deposit step beside me that you would be highly encouraged to take your money out of the banking system and then you would make banks examined so that's not going to let it happen unless first and this trip. either federal level individual banking level like we said gee done didn't. sun embrace cryptic currencies because you can't have the ability to hoard cash and impose negative interest rates so what i'm trying to say is that individual freedom is being laid down below the middle class so you don't have the opportunity to hoard cash to take cash out of the banking system you are obligated now to look lose get canalized lose money and get paralyzed for saving money in this country but nobody seems to care max and here's the thing i want to add that in this country we went from in two thousand and eight to today we increased it jets the total non financial debt by eight teen brilliant dollars max you know when you have zero percent

and you know whether central banks can actually whether we can create a competing financial system with some of the smaller nice banks my fear is the central bank can call it how i will certainly look to do everything they can to. prevent a small to be a display we have competition competing jurisdiction and one country. you know cartel like behavior. is competing with another island that wants to do things in a different way but we're just saying not friction in the time by the way before i forget congratulations you know i was looking at the back to the future website i say of guys have put together something like six hundred fifty million dollars about the dales and i think about names i could mention most often especially spend terror health conscious. group. you know bank of the future is really the later the pine air one of the biggest if not the biggest and it's all been done really as a bit coin maximalist someone who wrote the book bank to the future set the stage for the soul phenomenon to take place so on that note finally now simon you were in hong kong for a while during th

own your bitcoin but i want to say they're also pointing out in this article on bloomberg that central banks are expected to acquire an additional six hundred tons this year according to the consulting firm metals focus ltd the buys which will help the banks diversify their foreign exchange assets in a time of extraordinary political volatility signal a growing confidence in the metals value moving forward of course as bloomberg so they know focus on the metals value the price just like bloomberg and c m b c will focus on the price a bit going but the point is it's the change of the monetary system that we're seeing right here remember they're saying that it's a time of extraordinary political volatility the same thing in the seventy's or the end of the sixty's and seventy's when the u.s. went off the gold standard and i did we have the domestic political volatility of the civil rights movement and the assassinations which we as a nation would invade another nation if they had similar problems as we did in the sixty's but right now we don't have that sort of domestic volatility but we certai

printing ssri point eight trillion dollars and this is same thing with these e bay the european central bank and the bank of japan i mean aren't people in this country frayed and barrus scared or petrified. that interest rates in a nominal sense will be near zero for ever and real interest rates begin to be negative and others with me will then see you as in prices will the potentially increase predator the middle class will be wiped out and inflation will be much higher than ever before for our own much longer period time and nobody seems to care but you. all right ok well let's i'll pick up on you or your idea there that you know generally speaking we tend to take a light hearted look at some of the stuff but let's let's take the opposite point of view here let's let's take the point of view that this is actually since everyone's talking about national emergencies these days there is a true national emergency going on with the zero percent interest rates as you point out they jack asset prices up which increased that wealth gap an income gap and they cause all kinds of events aeration of t

then the content directly into central banking all the ones that are trying to hold onto that position of power and then exercising their influence over some of the small in each bank that want to support the industry and that's for you know at the central banking level is where we're seeing the challenges. you know the small in each bank the looking to get into this industry looking to support it and then looking and you know many of these banks operate on a full reserve basis whether simply you know receiving interest from the cause it and you know doing banking the way we actually thought it was it was going to be able be really interesting to see if the combination of bitcoin as collateral stable coin. and you know whether central banks can actually whether we can create a competing financial system with some of the smaller nice banks my fear is the central bank can call it how i will certainly look to do everything they can to. prevent a small can be a display we have competition competing jurisdiction and one country. you know cost how light behaves. is competing with another isl

completely consume the value of all the money held by their people this is why the century of central banking was the century of total war yeah ok that's exactly right and every single country in the world every social bank in the world is pursuing this money printing and warning as you can figure out refund a few exceptionally one notable exception russia paid down all their debt they've been buying gold and china is doing china same same thing but you know. russia serious so i mean it's ok for the u.k. to play silly games and wesley prizes and it's interesting that the america flushed their sovereignty down the toilet but there is at least one country out there that's maybe looking up the thinking there's another way so he goes then safety in numbers goes into the so-called electrics and the. as to the cost of mining bitcoin and this is a very interesting insight as well and a look at the cost of mining be going as a as basically saving us from massacre is real cost is in hardware no electricity needed to run the network it's real cost is the hundreds of millions of deaths financed by gover

nejra: our next central-bank conversation is keyed up quickly. geoffrey yu, cio, ubs private banking and simon derrick, director / chief currency strategist, bank of new york mellon corp. they stay with us for the hour. when you are traveling to work, tune into bloomberg radio live on your mobile device or digital radio in the london area. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i am nejra cehic. the hang seng comes back online. concerns around trade in the front of investors minds. the 10 year yield in new zealand dropped to a record low. we are seeing yields move lower globally. the aussie under pressure after the rba cutting growth and inflation outlook. the dollar has been on a tear. is this about the dollar been the best of a bad bunch? asking on mliv when will bund yields drop below japan's? you can reach out to us on your bloomberg. let's get the bloomberg business flash. the ceo has no idea what he is doing, according to him, accept running the bank into the ground. it was targeting cost cuts. sony has announced a

central bank, it acts as a global central bank. are there more external concerns they are worried about? >> that is a fair point. one of the biggest downside risks for the u.s. economy is global growth slowdown. to the extent that global growth slowdown starts to affect the u.s., they are congressionally mandated to look at the u.s. picture and inflation. i think the fed will be concerned to the effect that global growth effects the u.s. i think europe is a much bigger concern given that the ecb is trying to normalize. i think all of that as it feeds into the u.s. economic outlook is what the fed will be concerned about. -- do youhink the fed think the fed is going to look at the trade narrative? clearly this is having an impact globally. we have seen it in europe. how do you think that is playing out in the u.s.? >> i think it is extremely politically charged. for the fed to say the trade issue is a definite negative is hard for them. this is the most politicized environment i have seen. the fed will be careful to say that trade i

they announced it in november when gold rallied again. >> central banks this week around the world, that includes feds kaplan saying we'll take a lot of heat on inflation the bank of australia going from a hiking mode to a cut and essentially all on china you have the ecb questioning exactly what they're going to do and rates that went extremely negative around the world, especially in japan. that's the story of the week. >> tim tying it up that was well done. >> despite being the best performing sector year to date, the chart master says industrials are heading for a breakdown. carter worth is at the plasma. what are you looking at? >> maybe they have come a little too far too fast, best performer. it's a cyclical trade, a beta trade, and it has performed in lined with its attributes. but i think take profits, do something. put it in perspective. the various etfs, there's industrials on top, energy, tech of course, market down here at 17 even if i put in the iwm, small capser here around 20. it's just too much of a v from my point of view, but let's look at some charts so this is the ri

the central bank is set to end it in may.na has announced a sweeping plan to link hong kong with cities in southern china to transform the region into a high-tech metropolis to rival silicon valley. hsbc says the region will have 67 million residents and a trillion dollar economy and it will eclipse japan is the fourth largest level exporter. global news, 24 hours a day on air and at tic-toc on twitter, powered by 2700 journalists and analysts in more than 120 countries. thank you so much. , the keyming through line i am looking at is four your trade and operating income ,oming in at 3.5 billion euros the estimate 3.61, a very significant miss. it sees 2019 light for sales , andh coming in around 3% 2019 operating margin above 15%. line is the four year operating income at a miss. good to have you with us. i have been talking about a mixed picture in the asian session. where does india fit in among the green and red? >> you must be getting bored hearing me talk about how the markets are not doing well. for a change, the marke

there were only two major central banks which tried to increase interest rates. ng way in terms of hiking, and the bank of england tried that. we are still at crisis level interest rates. the bank of japan is fighting a 25-year-old recession and inflation close to zero. they are not going to do it. what you saw with the u.k., with the reserve bank of australia and india today, they are all others which are joining the group, because the bigger central banks have shown they don't have the ability to keep tightening anymore. >> as kathleen mentioned earlier, that rbi rate cut coming ahead of national elections in india. how much of the move has to do with the fact that they can afford to do this, given inflation has been tame, and how much has to do with politics? komal: i think both were significant elements. clearly that inflation was low was the reason cited by the governor. if you look behind it, there is still a lot of the year left. these are the times in which you can have full priced inflation rise. inflation in india could quickly on how theed harvests and

central bank. a clear move in january. matt? what have you got? we get deeper into earnings season here in europe. the banking picture looks to be, dnb aside, what are the most disappointing of all the industry groups. -- banks have been disappointing against u.s. banks for a long time. they've even been disappointing against european stocks. this is the ratio of european banks of european banks versus the broader stoxx 600 index. going back to the 80's. you can see since 2007, it just been coming down, down, down with a come around at some point? the yuan to focus on cost cuts and cutting profit predictions we saw from socgen today. it has to at some point. it can only go to zero in rome said 0.2 right now. in a smarturnaround investor wants to get in before everybody else does maybe it's time to pull the trigger. anna: under to go with danny on this occasion. i'm sorry to disappoint you. i like the clear evidence of the change in market thinking in the change of market dynamics in january and i keep reading things about the pivot by the fed. we'r

>> it could be short covering, it could be people trying to get ahead of the central banks, it could be all of that to your point, where's the support underneath it? that's what concerns me. at some point there's not a lot of gas out there and it doesn't take much for this to stall. i just think you have to be careful. >> the flip side is that the markets have come to these levels with these outflows happening. >> right. >> so there is money on the sidelines theoretically that could go in. so that could be the floor underneath this market rally. >> and look at semis semis have outperformed the market, which we spent a lot of time talking about how great that's been since the christmas eve low. we do have some expectation that some of this in terms of the china trade war was overdone maybe some of this is first quarter restocking and a look at third quarter which tends to be worse. i just think there are companies out there at all-timehighs tha certainly should have exposure both to the global economy and to the consumer and they are not telling you things are awful i think we got to

all central banks have been too slow in responding.y isnk monetary not so potent you raise rates by 25 basis points and that is suddenly the difference. what i believe they should be doing is adjusting rates little and often, and instead what they do is an idea of patients and waiting until we are certain. we are not dealing with certainty, we are dealing with lags. even uncertainty around the data, as we've seen in japan. in which they operate the policy regime is leading to these inevitable mistakes. it more often would tend to lead to high rates over time. , the problem comes down to the question of whether or not what they are doing is healthy. economic health over the long-term. anna: i feel we can talk about this all day. thank you very much, james stays with us. we'll cut that conversation short because we want to leave plenty of time for the next conversation and tell you what's going on in the markets. this is a picture of the sectors and what they are doing. as theting to see autos weakest sector, we've got the daimler and th

zn joining on this list of central banks.bit more towards the dovish side of these worries of global growth are growing. what we were watching out for the equity markets has been the positivity when it comes to wall street session. you have president trump saying he is considering this border deal. marchallowing that deadline to slide, helping china by sometime. rishaad: markets reflecting this as well. we have futures up by half of 1%. hang seng, the slight gain at the start. also this optimism over u.s. trade talks. we also have him inching he is not really at the moment that keen on another government shutdown. president trump also, as we said is extendinghe the march 1 tariff deadline if the two sides come anywhere near an agreement. yvonne: let's get to tom mackenzie, joining us with the latest out of beijing. how will this change the tone? how will this be read in beijing now that the talks are undergoing right now? tom: you say the talks are undergoing and we expect the premier to sit down with robert lighthizer and st

in the central banks can't do much to cushion us. that leave the banking sector which hasn't recovered in this part of the world. hsbc a bit different and the u.s. different as well but banks in europe not really having recovered from the financial crisis. >> they are really under pressure to come up with new investment. stantec is coming in and trying to disseminate its media and some of the greater markets. the banking industry will have to shrink in number of banks and in size of what they do. remember, atto least as an economist, the only place in economy creates credit, the only place is not the central bank but the banking sector. i think were getting a weaker banking sector. exactly for the reasons we said before. is launching a specific initiate for the banking sector. you see the banking sector as decreasingly less willing to lend to consumers. where do you see that manifesting? i think it's more the consumers and businesses are not wanted to borrow from the sector. has been tiedctor into the u.s. overall. in some places you

sophie: up next, some insight on this interesting week for central banks. ceo bob michaels joins us next. this is bloomberg. sophie: i'm sophie kamaruddin in hong kong. haidi: and i'm how the stroud-watts in sydney. mr. later onba today. the fed minutes out on wednesday and a plethora of policymakers and fed speakers this week. joins us here in sydney. appetite.t more risk out whatg to work changed between the end of december and now for almost every central-bank we are watching. bob: i think a couple of things. first and foremost, a lot of equity markets dropped 4%. that is technically bear territory. prospect of recession increases quite a bit when you write your models. mechanism into financial conditions is something that shook the central banks. also when you look at inflation, inflation looked pretty moderate. in a growth slowdown with moderate inflation, why not take your foot off the brakes? haidi: clearly the markets are priced in, potentially going into longer, but in terms of you the balance sheet does, can see in terms of where the market is tha

from what i have bunkers from truth the central bank maintain strict oversight of the small and medium sized financial institutions but it's more lenient towards the big banks they adopt the principle of too big to fail. if you're creating sort of big deal for you. the central bank traditionally intervenes to prevent the demise of major banks smaller privately owned financial institutions are more likely to lose their licenses if they're too low on cash you let you do this is them of regulation and supervision aims to promote competition strict oversight encourages competition. or that's. the reality on the ground however is that state owned banks are increasingly lending to state owned companies the effect of all this is to dampen economic growth western sanctions which make it hard for russian banks to access international markets have compounded the problem. but the reality is that we're in the midst of a recession it's not western sanctions that are the cause they simply make the situation worse. particularly the countries increasingly shaky financial institutions are causing peopl

india has become the first nation in asia to ease borrowing costs, the central bank cutting by a quartercymaking for the new governor. india's inflation rate is under 3%. more problems in the french banking industry, society general cut key performance broth -- profits. currencies falling 39% in the fourth q. >> we have announced effectively , a 500global banking million euros saving plan in the 2020 horizon in order to take into account the environment and improve the structural profitability. viviana: global news 24 hours a day on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. tom: thank you so much. let's do the data, we have a perfect guest to talk about this bank merger. futures deteriorate, -13. the euro off the bid. i just have one screen today, but i have got to watch sterling and what is going on in brussels. francine: and in the u.k. with the bank of england, that decision in less than 55 minutes and then we follow that press conference in 90 minutes. pound at 1.2 910. european stocks are pretty m

fall this year that according to new notes from the federal reserve the world's most important central bank now says it isn't sure what to do a minute global slowdown will give you the details. and peru is a major source of gold for international markets now the government is deploying its military to root out illegal mining of the precious metal. also are you struggling to nail down the hairstyle of your favorite president or dictator a barber shop in hunt noid has you covered we'll give you the details. i'm stephen beardsley in berlin thanks for joining us federal reserve officials saw a host of new threats facing a still hot u.s. economy when they met in january that according to new meeting notes released today the notes show the justification behind the central bank's january decision to hold off on an interest rate hike but the fed also left room to raise them later this year when the u.s. economy has been booming even as other economies have slowed but the fed now expects u.s. growth to be slower than in two thousand and eighteen. and for more on this let's go now to our financial co

central banks have to do what they have to do. sneaky haircut by guy adami, by the way. emerging markets are continuing to outperform. we're challenging back up to the 200-day. if i was the chart guy tonight, i would tell you u.s. steel is challenging to push north of the 200-day for the first time to the upside since back in 2017. all these assets traded down they have consolidated and r rebuilt a case which is something we haven't seen in two years. >> to tim's case, the eem hits almost every single day and they have been mostly correct upside bullish activity. >> that makes sense. it's one of the most crowded trades on wall street. >> and yet it still continues to work if you go back just a couple of weeks and look at where it was and look at the options where people have been betting on this and they have been right they just continue to roll, mel. you see guys taking profits but rolling up and rolling out and still looking for that same trade. >> it's odd to me. if all that is so, and it seems to be, right, why do we have a 10-year that's here? something's amiss. i

not just two of the financial institutions that russia's central bank has stepped in to see decisionsthat cost millions for their losses could be on the horizon reports suggest that some one hundred fifty banks in the country are on the brink of collapse lack of capital is a major problem from what i have been confirmed through the central bank maintain strict oversight of the small and medium sized financial institutions but it's more lenient towards the big banks they adopt the principle of too big to fail. if you're putting sort of big before you. the central bank traditionally intervenes to prevent the demise of major banks smaller privately owned financial institutions are more likely to lose their licenses if they're too low on cash. you might even the system of regulation and supervision aims to promote competition strict oversight encourages competition. for muscles that's. the reality on the ground however is that state owned banks are increasingly lending to state owned companies the effect of all this is to dampen economic growth western sanctions which make it hard for rus

at the same time the european central bank has been coming markets.come so it tends to be short—term and other commodity prices like platinum are rising as well. sterling got a bit ofa rising as well. sterling got a bit of a beast yesterday, we saw earnings rising as well —— a bit of a boost. in theory we should have a bit more cash in our pocket. yes, good income after inflation. inflation has been falling and great is really good, employment is still quite strong. the backdrop for consumer spending should be quite good but of course consumer confidence in business confidence is still weak. a lot of economists are looking ahead after this agreement to when consumer spending should rebound with a bit more confidence in the uk economy. maybe! laughter you're coming back to be the papers, thank you forjoining us. still to come — untying the knots. we'll be speaking to the firm which is to trying to take on the big brands in the lucrative hair industry. you're with business live from bbc news. intu — the owners of big shopping centres like lakeside in es

banks,ng to the central central banks around the world, the r.b.i. is the latest to execute something of a u-turn. we probably expected the r.b.i. to cut rates at some point, but central banks around the world, are they trying to stop the dollar falling? reporter: you mean the rba, by the way? r.b.i. of india. reporter: right, sorry. we are having global central banks across the board, almost, and indeed, european central bankers starting to think about it. this is a reaction to slower growth. vonnie: speaking of which, mark carney has very harsh words on brexit. that it is already being priced in. it is already having a major impact. what happens when we are supposed to actually be out? reporter: i think the body language i got from carney is he saying guard was about come or no outcome, this is really .tarting to take an impact the fact that it is dragging on and no one can guess what is going to happen, any eventuality is possible. that is real uncertainty, starting to hit not just the outlying investment decisions from afar, but overall spending

elsewhere, a big week for central banks. e rba and reserve bank of india, also the bank of england out with its decision. large parts oft, asian markets are closed this week for the lunar new year holiday. i am haidi stroud-watts here in sydney. shery: i'm shery ahn in new york. the week ahead on wall street springs a fresh round of earnings including google on monday and president trump's delayed state of the union speech tuesday, both sure to have an impact on trading. su keenan has more. let's pick up where he left off friday with really another strong number for jobs. su: that believe the market but we also had the negative impact of amazon. let's go to the chart because it is down from 20% from its september high on that disappointing sales outlook, and that clearly put weight on tech, so you barely saw the major averages eke out a gain. we have google reporting this week. let's quickly go into the market snapshot. what is interesting in the mix is crude. back above $55. i will get into that in a moment. it has a lot to

it has a tendency to push up the dollar as well. >> what do central banks do? are at he had a clearing of the r.b.i.. we had the bank of korea next week. do you see any of those sneaking in a cut. is there a case for a cut? >> not quite. most central banks are in wait-and-see mode full's top they have elections coming up, so a nice window year to take the opportunity, so when you indonesia, korea, you still want to see where the fed the global where trade cycle ends up and what happens with currency and volatility. monthsother three to six until you can be sure the fed is done. >> let's look at the reserve bank of australia. it finds itself in a precarious position. on the one hand, you have a housing market that is facing serious signs of weakening , what happens with consumption? the thing is, what do they do? >> that is the big question. [no audio] there was not that much evidence of a wealth of fact so the increase in consumption was explained by the mining boom, by the markets, etc.. now we actually get a big wealth effect on sumer's best consumer spending