we have the dollar-yen--- we have the dollar-yen flat.using the yen as my golden compass, not to trade with. nejra: what about real rates? -- that does not feed into being dollar positive? david: why not. if you're a millennial and you're sitting on the trading floor, you've not seen these rates in your life before. no duration. i do not have to wait 10 years with journeyed coupon payments. i can just -- the dollar. that is fantastic. tom: within this i have to make , or to go to the double negative, i cannot not lose money. when you go to your trading desk is it about making alpha or is two i cannotc type not take risks, i'm afraid i'm going to lose money. david: i think it is a bit of both. people are worried about losing so risk aversion is still everywhere. you still have to make money if you want to be in financial markets. you cannot be scared of everything. i think you buy the dollar across the board, g10, em's, there are a few exceptions. i think that is the way to go. you can pick up beautiful rates in the u.s.. that is great. th

year that's a three point four percent increase over twenty sixteen and more passengers mean more dollars in fact the federal aviation administration calculated that in twenty fourteen civil aviation generated one point six trillion dollars and supported around ten point six million jobs and not just any jobs because a lot of the jobs that are done at an airport especially when we talk about aircraft maintenance and in other areas you know airport management these are high tech jobs these are jobs that pay very good incomes each employee who is a highly paid skilled worker you know he's going to be part of a chain of a whole bunch of other workers along the way so having a good airport having a well maintained. meeting a favorable destination is one of the best things you can do for a community the f.a.a. also estimates that the national cost of a poll congestion is expected to rise to thirty four billion in twenty twenty before going on to sixty three billion by twenty forty of current funding levels. and this takes us. to the issue of funding in america airports are funded in very diffe

take a look at what the dollar has done because the bloomberg dollar index has been von for the past two sessions. all of that is gone after the president's remarks. president trump saying strong dollar is a disadvantage. is saying he is not happy about interest rates going up. pretty remarkable and a very rare comment coming from a sitting u.s. president about the central bank roll here in the u.s.. >> absolutely. beyond tracking the dollar itself, looking at the currency trades that have been so important recently with the yen and the u.s. dollar. yen trade getting to a fresh low on those comments. the increase in japanese appetite for overseas assets namely the u.s. dollar. all of these market moves bringinghim bloomberg, and kathleen gaffney. thank you for being on the show. becausetart with you we're seeing these market reactions. time. we had the same thing happen yesterday with the mexican peso. i would caution about the president's remarks on the dollar, we saw a depreciation of the yuan overnight. i would not be surprised if he clarifies the strong dollar comment and directs

government will need to spend two trillion dollars over the next ten years an order to keep american and from structure from falling apart the group says over the last ten years there has been a two a trillion dollar gap and which roads and bridges and mass transit transit systems were neglect it turns one point five trillion dollars plan would include a congress three directing two hundred billion dollars of federal funds to amtrak and transit programs over the next ten years while calling for millions of dollars to come from cities states and the private sector the downside is that public private partnerships usually work and urban areas but require projects that generate money like toll roads and airports now only thirty five states allow that democratic congress men and ranking member on the house transportation committee peter de fazio believes trumps and front structure plan will fall apart if there isn't any substantial federal funding adding quote cutting other already underfunded transportation programs to fund a new program is not going to happen experts believe the likelih

the dollar?ptions are you making about its strength or weakness, as the case may be, and what thet the factors regarding demographics being positive? alexander: well, you are right that the dollar has been through a heck of a lot in the last few months, but we think the trend is still down. what we see now is a lip, a counter, a counter blip. in the meantime, the important thing is to find companies that benefit from rising consumption and the value chain, increasing valuable franchises, and not worrying so much about the impact of the dollar. speaking to you're us from shanghai, so what is your assumption, and i guess, your level of enthusiasm about the eight share market. talking about markets trading so rarely havehe u.s., we seen them pay such a premium for the u.s. stocks compared to the shanghai composite. what about domestic stocks in china at the moment? alexander: i am glad you mentioned that, because i think is one ofare index the most exciting stories in the region at the moment. we ha

dollars story. that strength in the u.s. dollar is what has been driving the.pose for the near term, the u.s. dollar is unlikely to keep going up much further. really the key reasons around that, we think trade tensions, while they are still likely to remain pretty high over the next few weeks, we have a lot of deadlines coming up over the next three months. they are likely to soften. we will not go into a trade war. that will see pressure come off from the u.s. dollar . global growth is holding up well . you are not getting just strong u.s. global growth. you will see good growth in europe and japan. that should be positive. i think that strength will subside over the next few months. that will ease some of the pressure on the chinese currencies. haidi: we have another rba decision this week. has it surprised you that the old adage -- has it surprised you have there are cheaper forms given the uncertainty in the background? diana: the outlook with china is positive over the near term. we have seen market disruptions over the past few months but exportingey are

yield curve were in favor of the dollar and the dollar didn't move. happening this year? there are a couple of factors there. was in emerging markets. that has reversed. people are coming out of emerging markets, they could go to the swiss bank or the dollar. you've got rising interest rates and the economy is doing well. i think that is why the dollar is doing so well. tom: the research was out of the deutsche bank shop. it was looking at the yield curve, folded into this new thing going over to qt. is the balance twisting the bond market so much that the yield curve analysis is conventional now? charles: there are always draghi factors, the policy of maintaining his rates , that means the incentive for people to go into the dollar securities is very strong. a lot of those still want to hedge back. they don't want currency exposure. they are borrowing short-term dollars to hedge back. there is a very specific pressure arising from the savings countries. of highern favor short-term rates and that affects the two-year much more than the 10 year. they a

metro theme cufflinks and thirty dollar t. shirts scream printed with metro's rail system up reactions from riders came swift with comments like quit with the self-congratulatory t. shirts just focus on getting the trains to run on time penn station new york city's transit artery that connects the island's amtrak rails to the rest of the country needs over thirty billion in repairs for its tunnels damaged during hurricane sandy the so-called gateway project is now political football caught in a feud with democrat. and president trump when he ordered republicans to remove four hundred million dollars set aside for the project in the fiscal year twenty omnibus bill and across the united states several railroad operators are struggling to implement trucking technologies that are set to automatically slow train down around curve where several fatal to real men have occurred in recent years technology term positive train control or p.t.c. must be installed by december thirty first of this year although congress has appropriated hun

dollar. not much change to the euro versus the u.s. dollar. is chinese offshore yuan down the most sense devaluation back in 2015. the turkish lira continues to take a pounding as the u.s. dollars climbing to a record against the lira. trading in new zealand is just getting underway. off to a rocky start. aussie dollars are finding a sea of red. let's see how that pans out. let's talk more about trade. that is a big story of the moment. high-level talks between the u.s. and china have ground to a halt as the trump administration threatens to escalate the trade war. we're joined from washington. china and the u.s. have seven weeks to pull back from an all-out trade or. there doesn't seem to be any movement so far. what are the chances we can avoid? of aey are at a bit standoff. there happens low-level talks but there is nothing going on in any formal or high-level negotiations to come to some agreement. just nowse spokeswoman coming out of the statement saying the u.s. stands ready to talk but

is theeighted dollar whole world and the impact of the dollar on u.s. trade. not necessarily the dollar that is causing our trade problems. vonnie: i love this chart, making. it should be -- amazing. it should be referenced once a day. fina you -- gina, you have my vote but close. caroline: where we see the dollar is moving so much on the back of a trump tweet, i have to go with michael mckee as it puts this into perspective. -- ad drw draw. vonnie: we go to the control room. win. you have the when -- york, i ame from new vonnie quinn caroline: i am caroline hyde in london. this is the european close on bloomberg markets. time for our bloomberg business flash. nike says it is getting a sales boost from the world cup. the final between france and croatia was the first in which both teams were sponsored by nike. tailwind in its race to get adidas in soccer. york capital management has offered as much as $300 billion to buy a stake in a private equity fund. trying to beat out three other bids. --rt-appointed liquidators peter teel considering investing in chinese

dollar it's not backed by anything either and over ninety percent of u.s. dollars aren't even printed so you can't even point to a green piece of paper with a racist white dude and say there yes. and you think yes very. big point is not the first digital currency because the u.s. dollar is a digital currency it's most of it is only on computers created by secretive central banks run by fact guys sitting around a long boardroom table sweating through their blazers and it's in underneath their moves you know. the reality of the situation. the federal reserve is a private entity and the federal reserve banks twenty fifteen estimated net income was a hundred point two billion dollars they didn't. transferred approximately ninety seven point seven billion of that to the u.s. treasury so that means a profit of about two point five billion dollars simply for going pull players or body but i. ended keep in mind keep in mind it's not printed all right most of the press so really they get two point five billion dollars we're just going. we have to go to a quick break

expressed in dollars was at around under a dollar sixteen now it's about a dollar seventeen that's a big swing in the currency markets trump is suggesting that the interest rate and next time an interest rate decision comes around the fed won't pull any punches in order to prove that it's not listening to donald trump that it's its own person if you will its own monetary policy person. in frankfurt that thank you very much. china. it's continuing its drive to secure investment opportunities around africa permission paying is on a trip around several african countries this week one of his more than most important port of calls is senegal the francophone country on the west african coast has become increasingly attractive to foreign investors it is politically stable has a growing middle class the population is young and wages are low and the government that is working hard to make the most of it. in a major step forward onto the world scene senegal's president macky sall inaugurated his country's new international airport and bester is from around the world will soon be descending on

dollar.ad: great talking to you, david. chief global economist at standard chartered. bloomberg users can interactive toh the show using gtv catch up with key and analysis and save charts for future reference as well. ♪ ♪ rishaad: let's have a quick look at the business flash headlines. forast abandoning its bid the assets of 21st century fox. it concluded raising its offer above disney's bid would be too much and will focus instead on sky. n considering an ipo of an indian drugmaker. the group is in early talks with advisers here it the share sales could raise $500 million. fosun bought a stake for just over $1 billion last year. we are counting you down to the open in hong kong. like,s what futures look a flat contract premarket, up marginally. cnooc,ocks in focus, looking for integrated resorts. some which stand to gain are gaining gain, south china up .9%. we will be looking at the credit situation in china itself, how banks are doing there. who better to have a look at that than gra

dollar.hen the got those lines from the pboc that put a line in the sand and said we are not going to allow this to happen anymore. where do you think the yuan goes from here? does this get brought back into the repertoire of tools of china? or will they be reluctant? guest: probably a bit of reluctance to see it weaken. it was a market-driven move rather than -- anna: that they tolerated. guest: yeah, they felt they had to come in and drop this line in the sand. the effectiveness in the policy front has been the key element of stability since 2016. it's what we've been used to since 2015. that's what we're going to -- withoutwe can't to allow for semi-weakness. if we put it into context, we've got an economy weakening and a central bank easing monetary policy. that's textbook negative. anna: the trade war would slow the economy by 0.2 percentage points. ande are things we know, then the broader mood music around trade. the things we know might not have an outside impact on global trade by hi

mike, when the strong dollar become strong dollar?ly affect the cross asset world? michael: for the emerging markets, the dollar continues to strengthen and we would expect them to struggle to perform, given the uncertainty about the dollar in the near-term. we had taken the emerging markets down to neutral. the dollar could go either way. on the one hand, current account deficit likely to widen, fiscal spending widening in the u.s. on the other hand, rates will go faster in the u.s. push me, pull me in both ways. uncertain on the direction. what about the 10 year treasury ield, tightest range since 1973. what will make it breakout? michael: with u.s. growth looking as strong as it is, retail strength, new orders above 60%, that suggests rates will go well and you see bond also threeg higher, rises next year. tom: within the dollar strength, the differential between emerging markets and developed economies. which developed pair are you looking at most in your economics? david: we have concentrated on the dollar as a group. we see stre

>> when you look at the dollar, you look at the dollar index the euro, for at me if dollar yen went higherthat wouldn't surprise me. overall, i think the dollars will top in here. it's made pretty good run quickly. a top inng to find here. for us, as far as where we think the dollar is going to be year end, we think it's going to be weaker. we don't think it's a lot weaker. you had much dollar strength from here, if you had down another couple of cents, if you had the rally, meaningful above 95, i think the stock that. would not like but that's not our base case. we think the dollar will be weaker.it the kind ofu see factors of infrastructure boom as tax and fiscal benefits coming through in this earning season? we at peak earnings? >> as far as the absolute number for earnings, i think earnings in 2019 will be higher than earnings in 2018. really, this is an aberration era. be 18% toly going to 20% growth in s&p 500 earnings this year. they grew little bit over 11% last year. ems of -- in terms of growth rate, we're certainly 2018 is there.h number organically, if we wouldn't had estimate

dollar willthat the be hurt less and the dollar has been going up. that the u.s. is trying to improve its balance, the dollar is going to be another source of concern. we have been expecting to hear for a while a complaint about dollar strength beginning to come through. these comments are not a surprise but they are going to be a factor that limits how much the dollar can benefit from the trade war. jason: we have another tweet from the president following this, quoting the united states should not be penalized because we are doing so well. tightening hurts all that we have done. the u.s. should be allowed to recapture what was lost due to illegal currency manipulation. debt coming due and we are raising rates. this following his comments yesterday questioning the federal reserve policy and on the heels of chairman powell testifying on capitol hill earlier this week. again, doubling down on this idea of federal reserve independence, if he continues this narrative, does it start to stick? >> i hope not. he should stay away from the central bank. this

what about the dollar side of this? we were focused on the dollar against the yuan.rms of the dollar technicals, how does that fit into your picture? strategy ishe em fx one of the most important charts that i monitor closely. throughout last year, we started bottoming in q1, and then in april, we broke higher quite convincingly. went through a period of consolidation. this consolidation can be described as a triangle pattern. over the past few days, what the dollar has been trying to do on the back of hawkish comments from powell, is to try to break higher. it signals that the dollar may try to resume those trends. anna: interesting how the dollar didn't listen to the for now part. thank you very much. emerging markets fx strategist at rob lafranco. a few stocks we are watching, becker, the belgian company. telia, they are doing a deal, purchasing bonnier for $1.1 billion. there was another norwegian deal. sasol warning on full-year eps. citing poor u.s. operations in the second order. we will find some bright spots later on. president trump criticizes the fed inter

the dollar weaker. euro-dollar approaching 117.le with yields floating by the just single basis point on a u.s. 10 year. the main story, investors embracing a little more risk. china slowly sifting -- shifting towards stimulus. >> weakness in china would be problematic. it is still a tricky handle.

dollar does. it is interesting, come inside the bloomberg. s&p earnings estimates versus the dollar, actually a positive correlation, so is that going to hold up? will the dollar really boost? vince: it is possible, the higher dollar would suggest for the industrials and that the trade situation gets better. and that is positive for earnings. then you have the trade situation going into that, a countercyclical for that. i do not know if the dollar will speak to that as much as trade. that will, or that could lean against corporate profits more than what the dollar will do. as for the dollar-yen, i think are we are seeing is we moving away from the idea that it is a haven country. it is an export economy, the two largest export countries are the u.s. and china and you do not buy an export economy in a trade war. i think that people are starting to get a handle on that. and we could see it weaken continue for quite some time. are aimagine this, you world leader in another were later comes to your ho

is under two trillion dollars or around two trillion dollars china is the biggest competitor from a military perspective and from a trade perspective the u.s. has that's what the focus on washington should be but china's not an idealogue i mean there it's all about cutting deals are not like you know. chairman mao anymore it's about making bucks i don't think china can be trusted at all and i think that there is a huge problem with china's economic data and the way that they've pumped up their economy with printed money we got to cut off their meds thanks so much for being on the kaiser report well thanks for having me and that's about it for this decision of the cause report let me ask geysers stacy i would like to thank mitch firesign plan of policy that's where we all live going to catch us on twitter it's kaiser report until next time you know. kentucky. boys the board rooms very bad news for you. money since he was almost new coal mines left. the jobs are gone all the coal mines are said. that it was a laugh to see these people the survivors of disappearing before their eyes. i remember

dollars. we took the dollar price point, give them stocking stuffer value for one dollar. that's one bill in your pocket. give them a really great toy for a five dollars. that's another nil your pocket. and for ten dollars, that is their big purchase of the toy, and what should that toy be? well, that was the kind of thinking that changed the business model 180 degrees from the cal sr. he started the company. and it wasn't my idea. but it was based on a turner mistake of overbuying and overbuying. that's i would we had so open so many stores because he overbought. >> host: all that stuff. what about a personal mistake you made that can cause you to change and you never did that didn't and -- never did that again and made you better? >> well there isn't a mistake in the book that i heather made, and i have been been blessed having others around me who would help me learn from those mistakes. i remember some of the trouble i was in as a teenager, and my mother would just shake her head. she'd sa

he seems to get the nuance that perhaps the dollar strength is causing the problem in the dollar yuanthe dollar being too strong, therefore at a disadvantage for the u.s.. but take a look at how it is setting up in asia, it will be the dollar story as we continue to look at the reaction across the fx in this part of the world. we are seeing new zealand trading pretty flat at the moment. at 67.48.ollar kyrie futures looking a little bit more positive, and we saw the aussie dollar with a brief stellar job the numbers, but that lost steam in the overnight session. taking a look at what else we are watching, in terms of how the dollar issue is playing out differently come the commodities are slumping again. we're nearing correction territory with this resurgent dollar story, lingering trade tensions creating some headwinds. looking at the biggest culprits, looking at the bloomberg commodities index. suffering, and we are also seeing that nothing when it comes to gold, and oil continues to fluctuate as well. let us get you caught up with the first word news. drawn european union has up a l

dollars for defense -- billion u.s. dollars, until 2024. so this is really adding some excitement. it helps. but we still have to do more. and that is what we're going to address after the summit later on today. also, strong nato is good for europe, but also good for the united states. the u.s. main purpose is that it helps to protect europe. it also helps the united states to project power to the middle east, to africa, and i think also the economic cloud of europe. it's also helpful in dealing with russia. and we look forward to the meeting with president meaputin. and i think the leaders are also looking forward to your thoughts a about the meeting with president putin later on. >> well, i have to say, i think it's very sad when germany makes a massive oil and gas deal with russia, where you're supposed to be guarding against russia and germany goes out and pays billions and billions of dollars a year to russia. so we're protecting germany, we're protecting france, we're protecting all of these countries. and then numerous of the countries go out and make a pipeline deal with ru

at 68.07,kiwi dollar the aussie dollar above $.74 u.s.e see decline for the bloomberg index at the end of next week on account of uncertainty thrown out by the president's latest tweets about currency manipulation and china and the e.u. and how he feels about the strength of the greenback. look at the key affects. i would say the key markets story this week. we are looking at the yuan, backup the top of the list for worries of emerging-market investors. this is what we see with a gap of offshore yuan. you see the bears when it comes to this, getting ever louder with expectations. the pboc not doing much to stem fears. we had the 6.7 for the first time in about a year and the most weakening on friday in two years. down 8% since march highs when it comes to the yuan. looking to see whether volatility spreads across the rest of the em, the fx complex. us get to first word news. u.k.'s new brexit chief said the country must prepare for a no deal brexit. they told bbc that while they ae this scenario happening, responsible government should pl

dollar in financial markets.ength has pressured global currencies. this has been a factor in the ja weakness. i will give you an example. early in 2018, be dollar really is lead. it is a much lower. it took a while for the chinese yuan to strength, extract and because of this. it could be paying catch up by now to the dollar's strength. but there is no doubt hear that it has exhilarated as a trade war and trade ta riffs exhilarated as a trade war and trade tariffs intensify. thank you so much coming in and talking to us about that, jameel ahmad from victor mills. as you know, the us was at ta riffs mills. as you know, the us was at tariffs on $34 billion worth of chinese goods, which might make a big number, but that it is not that significant when you look at the big picture. -- from fxtm. first of all, the 34 billion is only a small share of the economy. these are the two largest economies in the world. 34 billion is only 2.4% of the chinese gb. 25% is not essential. 34 billion for the us is only 0.2% of gdp an

down to 33.5 trillion dollars. >> if you assume a 300 billion dollars -- if you assume a 300 billion dollars -- >> assuming we are serious about the 300 billion dollars, i'm assuming we are, but i guess time will tell on that question. so all of this argument, all is really over reducing the ten-year debt projection by about 1 1/2%? >> the budget proposes to reduce the debt by 8.1 trillion dollars. >> but it doesn't actually do that. the budget is not a -- as i said in my opening remarks is not a wish list, is it? it is an operational process by which we control spending. and we do it on two sides. we control it on the discretionary side and the appropriators can only mark to those limits and no further and we do it or supposed to do it on the mandatory side where we set limits on mandatory spending, send those instructions to the authorizing committees and if the authorizing committees refuse to report back the statutory changes, the budget committee can do that itself, but in either case, they go into the reconciliation bill which then has expedited consideration on the senate floo

this is the dollar index.have not been able to break above that. , managing now director for tcw. , does the dollar breakout? >> trump did it best to make sure it didn't breakout. the only big piece of economic data they would get be the first look at the second quarter gdp. this could be the peak growth for the cycle. maybe a little above 4%. alix: we will get that reading on friday. the backdrop is where we will see the cloud. if they did not mention it in march but over the weekend the committee case said trade risks , inequality and structurally weaker growth. is the what conversation? >> we won't speak directly to earnings but i would say as we , the g20undamentals communiquÉ does a good job of summarizing the huge headwinds the u.s. economy faces and the global economy faces. the president can't have it both ways. bloomberga great opinion piece we passed around that you're going to have tax , get astrong economy strong dollar and divergent central bank policy from the rest of the world. europe, japan are

it is a broadly stronger dollar story. ,uro-dollar down 4/10 of 1% dollar 10 taking a big leg higher above 111 here. the 210 spread maybe even a little steeper. up a whopping 1%. a sleeper when you have the oil and the dollar rallying together . david: timeout for the morning brief. first of all, president trump is going to europe, the first stop in belgium, where he will join the nato summit in brussels wednesday. from there, he will go to the u.k. for meetings with prime minister theresa may and queen elizabeth, and then to helsinki for that meeting with russia's president putin. finally today, the united states treasury will be selling $35 billion in three-year notes. time now for the bloomberg first take. we are joined by rachel evans and marty schenker. this is the big first story, the nomination of rick kavanaugh to these the court of the united states. this is how president trump explained why he made this decision. trump: i do not ask about a nominee's personal opinions. what matters is not a judge's political views, but whether they can set aside those views to do what the l

dollar is not to their liking. at a very minimum, we need investor protection, if we're going to have people invest in cryptocurrencies and crypto offering memorandum and crypto registrations would be considered outright fraud and reason for incarceration, if they were issued by somebody selling stocks, bonds, or any other investment. and finally, there is seniorage, the money that we make as a country, because we're the reserve currency, because we can issue a green back that does not yield interest, there are people who are alive today because of the profits the u.s. government makes on that, whether it be to fund defense or medical research. all of the that gets diminished with cryptocurrency. i yield back. >> the gentlemen's time expired. today we welcome the testimony of dr. rodney garrett, who holds the chair of economics at the university of california santa barbara. he has served as a technical adviser to the bank of settlements, and as a former vice president of the federal reserve bank of new york. during

, dollar weakness still holds.sef: really good to see you this morning. thank you for your time. the head of fx, commodities, and rates at j.p. morgan private bank. earnings you should be watching, big earnings this week. also bet inonday the united states -- alphabet in the u.s.. nejra: and the return of switzerland's ubs. we round up the week with twitter and exxon mobil. up next, the ceo exclusive. ♪ phones have made our lives effortless. streaming must see tv has never been easier. paying for things is a breeze. and getting into new places is even simpler. with xfinity mobile, saving money is effortless too. it's the only network that combines america's largest, most reliable 4g lte with the most wi-fi hotspots. and it can be included with your internet. which could save you hundreds of dollars a year. plus, get $150 dollars when you bring in your own phone. its a new kind of network designed to save you money. click, call or visit a store today. yousef: good morning. this is bloomberg daybreak: europe. live fr

two hundred fifty trillion dollars. off balance sheet well this it no not just national no knock off balance sheet items not including off balance sheet items where i'm talking about social security medicare medicaid and a host of other entitlement programs that the government is legally sound but are not included in their official in the twenty trillion or twenty one trillion that we have a lot of they don't include that that's like saying what are your liabilities and you tell me what your liabilities and your assets are and you exclude the five million dollar mortgage you have on a property that's worth close of all the live build it's called legally binding obligations hundreds something two hundred fifty trillion probably which is almost what three times or four times global g.d.p. so i mean this is a joy norma's amount so this is why interest rates if they go above four percent makes it technically impossible for the treasury to service the amount of debt that they have that's why i'm concerned about the rollover

two hundred fifty trillion dollars. off balance sheet well this it no not at all no not off balance sheet items not including off balance sheet items where i'm talking about social security medicare medicaid and a host of other entitlement programs that the government is legally but i'm not included in their official nope not in the twenty trillion or twenty one trillion that we have a lot of they don't include that's like saying what are your liabilities and you tell me what your liabilities and your assets are and you exclude the five million dollar mortgage you have on a property that's worth i know close of all the liabilities it's called legally binding obligations hundreds something two hundred fifty trillion probably which is almost what three times or four times global g.d.p. so i mean this is a join or miss amount so this is why interest rates if they go above four percent it makes it technically impossible for the treasury to service the amount of debt that they have that's why i'm concerned about the rollover

in davos embraced a weak dollar and the nugent told reporters quote obviously a weaker dollar is good for us as it relates to trade and opportunities a weaker dollar generally favors domestic production by making imports for expensive blackrock chief executive lawrence fink also played down the dollar slide and said investors and the media overreacted to me and statement i.m.f. managing director christine lagarde however said she hoped menuhin would quote clarify his comments and suggested that the recent trump tax cuts would push the dollar's value higher. as puerto rico struggles to recover from hurricane maria the island's leaders announced late wednesday that they won't be able to pay back any portion of that seventy billion dollars debt for at least five years their original plan for puerto rico to pay creditors three point six billion dollars through two thousand and twenty two in order to start paying off their massive debt but now puerto rico's governor ricardo rosello says that the budget is expected to go into deficit by two to three billion dollars annually for five years t

dollars last december. also reported, controversies such as bitcoin's involvement in purchases in the online black market, the silk road, donations funding wikileaks. the theft of hundreds of thousands of bit coin from the exchange mt. gox, and reports that hackers stole $1.6 billion in cryptocurrency over the last seven years. congress must pay close attention to development in this space. the capital markets subcommittee held a meeting examining cryptocurrency and initial coin offering markets in march of this year, and the terrorism and illicit finance subcommittee held a hearing to discuss illicit use of virtual currency and the law enforcement response last month. as chairman of the monetary policy and trade subcommittee, i am particularly interested in any impact digital security may have on monetary policy and the international financial system. we will discuss its use, both in the united states and abroad. thus far, some countries like vietnam and china have banned or restricted it altogether. other

king dollar. the yuan hits a one year low. the fallout from the dollar rally. car trouble. more than 40 people had to the commerce department for a public hearing on auto tariffs. the eu stands by to retaliate. welcome to "bloomberg daybreak." perfect timing. zeroing in on that. >> my favorite part of the quarter. it is a beat on the bottom line. eps at $.90. the estimates was $.74. slightly down from last quarter. they were $450 billion or so, coming in at $439 billion. a bead on the bottom line. net inflows in the second quarter. this is a juggernaut. alix: that is still serious cash. throughbe parsing for where the opportunities may be. the s&p is down. seems to be the story of the morning, picking up speed. having ripple effects. the first is the two-year yield at the highest level since 2008. 26 basis points, to tens, a little bit steeper. crude getting hit, off 1%. it is really copper, a six-week slide. it is dollar story, china-concern story. our time now is for bloomberg's first pick. we are joined by bloomberg's opinion columnist. alcoa was front and center. here i

just since january first of twenty eight hundred fifty two billion dollars works out to two hundred and seventy five million dollars a day he earned this year i mean you see the result on the main street in america shops are closing so jobs are disappearing you know there's an onion which is a humor magazine made a reference recently that bezos rolled out a new business model and then had to cancel it because he realized it was slavery slavery is illegal yeah but. this is a concentration of wealth that is unprecedented and it does create a society that is going down two very separate tracks so there's no common ground jeff bezos you know he builds rocket ships and wants to space tourism two hundred thousand dollars a pop for people to go for joyrides and they'll be a lot of people lining up for that opportunity you know like they used to line up at the plane land to go on the roller coaster for a buck a lot of people for that you know two hundred thousand dollars is chump change to go up in a spaceship but jeff bezos that's great then you've got this forty seven million dollars at c

treasury secretary steve menuhin speaking at the world economic forum in davos embraced a weak dollar and the nugent told reporters quote obviously a weaker dollar is good for us as it relates to trade and opportunities and weaker dollar generally favors domestic production by making imports more expensive blackrock chief executive lawrence fink also played down the dollar slide and said investors and the media overreacted to me and statements i.m.f. managing director christine lagarde however said she hoped menuhin would quote clarify his comments and suggested that the recent trump tax cuts would push the dollar's value higher. as puerto rico struggles to recover from hurricane maria the island's leaders announced late wednesday that they won't be able to pay back any portion of that seventy billion dollars debt for at least five years their original plan for puerto rico to pay creditors three point six billion dollars through two thousand and twenty two in order to start paying off their massive debt but now puerto rico's governor ricardo rosello says that the budget is expected to

back hundreds of billions of dollars.nd, also, companies are coming back to our country. we have record numbers of companies coming back in they're pouring back in. they're going to michigan and ohio and pennsylvania and so many different states. and people can't believe what is happening. >> wage gains. do you worry that is it time for the fed to be doing what its doing? to get a policy question should raising rate and the trajectory -- >> i have a good man in the fed. i don't necessarily agree with it i'm not saying i agree with it and i don't necessarily -- i don't. i'm not thrilled because, you know, we go up and every time you go up, they want to raise rates again. and i don't really -- i'm not happy about it but at the same time i'm letting them do what they feel is best but i don't like all of this work that goes into doing what we're doing. you look at the euro you look at what is going on with the eu. and they're not doing what we're doing. and we already have somewhat of a disadvantage i'm turning that into an a

making thirty million a year all those guys you see on the news are making twenty thirty forty million dollars a year they're all making that sort of money they are the same sort of people that are sitting there asking how are they going to protect themselves from you you're the viewer the viewer the got the person the opioid addict that rachel maddow is selling stool softener to she's afraid of that person and she's afraid of how how to get away from that person so when they're talking about why we need more war they're basically i think genetically you talked about you know cairo in egypt and the pyramids and stuff like that like i think our d.n.a. no it's like we're at a tipping point and that something's going to come on the day and then they always right to collective unconscious again read your. you know who dove deeper into the sub conscious and unconscious than freud was able to do and discovered the foundation of our collective unconscious and our connection to cosmic consciousness you know that we understand this on a on a particle on atomic level of d.n.a. level and so which is part

dollar for every bit of the of the ecosystem but i want to move on to. some of the trumpet ministration are claiming china is behind the scenes trying to ruin the north korean deal so is this the beginning of some anti china propaganda that usually leads to isolation one of plied against others etc i've not heard of this what have you heard of this what tell us more of them well i think we talked last time in north korea there is there are ninety percent trade depending on china china is the puppet master of the whole north east wouldn't surprise me if they try to throw throw throw that in with their negotiations but i don't think anyone has any real proof of it so what is the oh there they go along. the moment though it's you know at what point do the cowlick in the chinese government kind of keep the lid on the fact that there's a major seismic change coming and. how much of an impact will this have on let on the average chinese person. well they depend on the job losses i mean it's quite interesting you know so when drunk gave them a. restart of the z

dollar has been supported by those type of loans. what you have now is the long u.s. dollar.european asset holders are holding in the u.s. corporate bond market. it is fragile. when it comes to liquidation on that side, europe repatriation back into the euro. a lot of people are trading back into the u.s. dollar. i believe that is an error. nejra: you think dollar weakness, euro strength from here? hans: that is absolutely right. and we have to do it right now. nejra: hans redeker and antonio pascual will be staying with us. and coming up the bp ceo will be on bloomberg. interesting given what we have just discussed with the bp deal. this is bloomberg. ♪ nejra: i'm nejra cehic with column keen -- with tom keene. me in london and tom in new york . it is boiling in london and i think it is for theresa may as well. the eu has rejected theresa may's proposal for a trade deal. the eu chief negotiator said he would never accept her customs plan. this means the british prime minister has to go back to the drawing board just 12 weeks before agreement is to be signed. joining us is ou