but of course the trade sensitive sectors are underperforming. >>> now, chicago fed president charles evansd cnbc market injections are a useful tool coming at a challenging time and he's open minded about the path of interest rates. you just spoke with mr. evans. what would you say are some of the highlights of that interview. >> well, actually we started off to talk about repo rates and the reasons behind them are not entirely clear as of yet i mean, loads of people are siting technical reasons, and that is what i asked him as well, what his explanation is actually for that very unusual volatility in the repo markets whand the fed is planning remedying potential spike again in the future. take a listen. >> the new york fed put together a very strong program to offer repos daily, offer term repos over the quarter end and i think it's effective i think this is just a challenging time the federal reserve's balance sheet is lower than it had been. we had been bringing it down we stabilized it, but it's still pressure on the level of reserves as nonreserve liabilities adjust so, the term repos

we have the feds charles evans saying perhaps no more rate cuts are needed and that may be playing into some of the market action as well as the trade and impeachment drama. matt: it's interesting to hear that. let's look at how this has played out in markets. first let's take a look at what is going on in terms of asian equity indexes. we can see the msci asia pacific index rising there, not a huge gain but up .25% almost. u.s. futures are down. the changeill see after the european open, but for now it looks like it could get a negative start to u.s. stocks, even with those trade comments. does thison is, impeachment process play into the moving of the market, a lot of people of come out and said it will not have much of an effect on markets for now. the new see the new zealand dollar rising in terms of u.s. dollars. price rising this morning. bloombergking at the dollar index more broadly, is it just a bid for the safe haven dollar, with all the impeachment drama? the 10 year yield down four basis points. yesterday we saw it jump nine basis points. generally it was a risk off session

but let me bring you back to the topic which i addressed with charles evans, clearly we had to speakkes and repo market and the reasons behind that as we got so many different potential reasons in the spike in the repo market i had to ask him what his explanation is for that and take a listen >> the new york fed put together a very strong program to offer repos daily, offer term repos over the quarter end and i think it's effective i think that this is just a challenging time the federal reserve's balance sheet is lower than it had been. we had been bringing it down we stabilized it, but there's still pressure on the level of reserves as nonreserve liabilities adjust and so the term repos i think had been extremely helpful i think it's been a very well designed plan. >> so, the name of the game is, i guess, uncertainty if you look at the economy in the u.s., it's uncertainty as well about 2020, whether there will be a recession or whether there will not be a recession. whether the u.s. economy is actually doing a lot better than the likes here in europe one thing is clear that most l

charles: curtis, let me ask you, charles evans, one of the voting members of the fed, sort of dissedhe trade war, saying they don't work for anyone. suggested that global trading creates innovation. i got to tell you, it sounds cliche because i see nothing innovative about cheap labor, stealing american know how, but when you have all the powerful forces against the president and his trade fight, how much harder does it make for us to win this thing? >> it certainly doesn't help when leading voices in the media, i'm not talking about you, this media, fellow you mentioned acting like tokyo rose basically taking the other side appeasement, give in, surrender. there is forces greater than america that we have to accommodate this is not helpful at all. people are on the president's side. latest harvard "harris poll" said 67% of americans say we need to confront china over the trade practices even paying more at the mall. charles: a lot of critics accept that china is cheating but still dispute whether we should have bonn this way. i do want to ask about president trump. he is meeting gen

. >> reporter: sara, thanks very much chicago fed chairman charles evans making stronger criticism of the policy, trade tariffs with immigration restrictions could grow trend u.s. growth for the long-term. he said trend u.s. growth could be closer to 1 1/2 compared to 1 3/4 or lower because of such policies trade polls increase uncertainty near-term effects among the business community longer term you have tariffs in place, competition, reduce productivity, motivation for firms to innovate. it points out restrictions on legal immigration could reduce labor hours. two key components for determining gdp growth international trade, he says, expands economic opportunity so sara, there's somebody from the fed who is giving the economic case for having open and free trade. >> so he's a voting member right now, correct, steve? >> i believe so, yes. >> is he a cutter, in the cutting camp as well >> he wants to cut rates charlie has been worried about inflation and also very sensitive to the weaker economic data out there you know being in the chicago district, he by the way giving a speech at

could it been something to do with charles evans?he dollar is holding on to that strength in the session. lots of dynamics to digest. coming up among don't miss our exclusive conversations with the ceos of xo and ab inbev as well tesco, ab inbev, as well as spain's prime minister. >> boris johnson came out fighting in his first appearance back in the commons. he refused to resign or even apologize saying the supreme court was wrong. he challenged his opponents to trigger an election, accusing them of cowardice. jamie dimon is sounding a bit like president trump on china. he said at the white house's not fair trade, not part of an ideological struggle but he does not see a deal coming anytime soon. >> fair means kind of reciprocal. trade has never been reciprocal, but closer is good for everybody and i hope we get there. i don't expect it to happen before the election. after that, we will have a fair trade deal. amro shares are plunging the most in three years after authorities opened a criminal probe under anti-money-laundering laws.

charles coughlin, he was chairman of the board of emi records for 15 years. we met by accident in queens college night school and he had just taken over the job for hal evans music. if you were a writer, i already had a record out when i was 16, you know? i was signed when i was 16. i had a record out and then it died and nothing else happened. i ran into charles. you will crack up, this story. it is hysterical how it happened. we met. i had a demo and i played it for donnie. here i am now signing all the music. brian wilson. great writers, all around. there i was, we had just signed screen gems at the time. there i was, you know. it was so simple. you wrote a song and you played it for donnie kirschner, because he was the boss and if he liked it, you got a budget to go in to bella sound -- well, not bella. i am trying to remember the names, i don't even remember, but charles, that was when they played the most. you would get three hours and play three songs in three hours. the vocals, everything. i don't even know if it was to track at that point. i think it was to track. what happened was they put out a two track demo. they had to leave the set. and he saying