we say goodbye to mario draghi let's look back to when draghi wound it down and ramped it back up again >> today, measures have become warranted to achieve our priced ability objective given that the key ecb rates have reached the lower bound. we will on 9 march 2015 start purchasing euro denominated securities in a secondary market we will also continue purchasing asset based securities and bonds as started last year the euro system will invest principal payments from securities to the asset program. >> economists this morning, joins us christine christine lagarde, how is it going to be different? >> not much. she hasn't got many options. we see that as a continuation of mario draghi with the monetary policy she also has limited experience as a central banker. we see her mostly as a follower her role is political of a kind. she'll try to force the government into more spending creating the common budget >> some of the data has not been too bad this year. we got the larger numbers that suggested m 3 is probably rolling over at this point we see better performance in equity markets what

the predecessor of mario draghi stuck to low interest rates.he wants governments with big budget surpluses like germany and the netherlands to do more to boost growth. reporter: the new head of european central bank has not given much away about how she intends to proceed, but she has given some indication what she thinks the institution needs to do. >> the ecb needs to listen to and understand markets. need not be guided by market but needs to listen and understand. but it also needs to understand the people, because the currency is a public good that belongs to ththe people.. wewe can work -- reporter: she is expected to maintain the loose p policy spearheaded by mario draghi. the combination of super low interest rates and a massive bond buying program stabilize the e eurozone's weakest and indebted economies in the wake of the crisis. those policies have been bad news for savers who feel there is no longer an incentive to park their money in the bank and fear they could be punished for doing so. christine lagarde served as finance minister

jason: it is so interesting you talk about her experience versus draghi's.nk two things come to mind. one is she has been in the belly of the beast as it were in washington, but also at the imf, very concerned with developing economies as well as developed economies. what is your latest job -- her previous job, i should say, will help her bring in terms of her scope of the world? jana: she is used to dealing with people from a lot of different backgrounds. as you mentioned, emerging markets, developed nations, political leaders, economists, financial leaders. all of that experience she brings to the ecb where you have just policymakers, but also from very different backgrounds. you think about policymakers from germany. a very traditional conservative official. where you have people from the southern states, from greece, from italy which prefer a generally looser monetary policy. different views on fiscal policy as well. it is a very diverse crowd at the ecb which is why we some of the problems, some of the arguments play out in the public. i think she will

she inherits a few things from mario draghi, her predecessor. also brings a skill set many that before her did not have. jason: the latest in her trailblazing career and an important story because it will set the tone for the european economy. here's jana randow in frankfurt with her story, you can find online. jana: she has a lot of challenges to tackle. she takes over the ecb at a time when the economy is not doing really well. we are in a slowdown. germany, the largest economy in the region probably is already in recession. inflation is very low. monetary policy at the ecb is very expansionary. there is quite a big rift in the governing council as to what could be done as to the policies that are needed to overcome the situation. there was a big debate over the last stimulus push. she comes in at a time when all of that needs to be fixed. carol: there is frustration among the ecb policymakers about what the ecb is doing and versus what policymakers in the region are doing, or should i say, not doing to help out the economies. jana: policymake

to be looking for her diplomatic and political skills to really help her do something that mario draghi really wasn't able to do in his time as president. chalcedony reporting from frankfurt there now instead of salted peanuts or potato chips would you grab a bag of krispy crickets or barbecue flavored silkworms well this next tight entrepreneur reckons bugs in a bag will be the healthy and nutritious nutritionist snack of the future. these crickets must feel pretty special after all humans housed them and feed them delicious food what more could a cricket ever want but its latest at this point that the crickets realize that their hotel keepers are actually the grim reaper crickets are a delicacy in thailand and that means they're also big business ties have always eaten them but one visionary businessmen not shantytown had the idea of backing up insects like potato chips. i heard on t.v. about how the un said insects were a good alternative source of protein for the future when they defeated the world's growing population who so i thought well if you thais eat a lot of insects already

mario draghi had promised or pushed the ecb into qe infinity.iver onid not that, it would have to make substantial changes to the constraints. you cannot really he bond buying assets unless you change the 33% issuance limits. politicallye really contentious issues. and the most contentious is for spending. the moment we start stimulating there are more assets that the ecb can buy and more qe to extend further. anna: and where do you think we stand given this narrative around what needs to be done in europe to boost the economy? how weak is it right now? with refer we spoke to a turn in the data. that seems to be part of the narrative here in europe. a bottoming out of pmi. where do you put the strength and weakness of europe right now? shweta: to put things in perspective, the eurozone will likely stand by just below 1% this year. and we expect it to standby just below 1% for next year. euroe trench growth in the area is around 1.3%. subill be a another gear of -- it will be another year of sub growth numbers. in terms of the tactical turn aroun

difficult job ahead of her to form a consensus that is also an after steely economy i mean mario draghi didn't do this for 4 is enough for his own entertainment he knew that he needed to take very bold decisions and there was probably going to take too long if you needed to bring the entire governing council behind him mario draghi was renowned for being prepared to do whatever it takes to defend the euro and the euro zone what he could not do was persuade enough member states to do all they could to make the european banking complete. germany had long resisted the idea of its citizens insuring the deposits of banks in riskier parts of the euro zone but now it is offering conditional backing for a pan european deposit protection scheme. but not everyone thinks it goes far enough i welcome mark at the proposal and many aspects relating to completion a banking union course on some aspect including on the street so i for then should treat our story exposure so. our position are different and we consider that ism and make sure that there would be would have a negative impact the weakness in

legarde is the 1st woman to head up the european central bank in frankfurt her predecessor mario draghi has stuck with low interest rates to ward off recession like i did once governments with big budget surpluses like germany and the not less to do more to prescript. the new head of the european central bank hasn't given too much away about how she intends to proceed in her new job but she has given some indication of what she thinks the institution needs to do the z.b. needs to listen to understand markets need not be guided by market but is certain is to listen and understand but it also needs to listen and understand the people. because a currency is off the role of public good that belongs to the people we can let go and is widely expected to maintain the loose monetary policy spearheaded by her predecessor mario draghi the combination of super low interest rates and a massive bond buying program helped stabilize some of the euro zone's weakest and most indebted economies in the wake of the financial crisis but those policies have of course been bad news for savers who feel there i

there were also comments that reflected on mario draghi.act thated the fiscal policy needs to be applied to the european economy and made it clear you have to complete the european union. that means the single market, the banking union, and the elements that are still pending. much progressen made. francine: i have to correct myself, the headline was confusing to him at first. -- confusing, at first. oftary is suspending the end the pact, which probably means they are restarting the pact. we will look more at details of exactly what that means. on to more ecb news. mix andmeans and policy exactly what a policy review means, joining us from london is the chief investment officer at rathbone's. good morning. when christine lagarde says europe needs a new policy mix, is it fiscal spending? is that what her job will be? >> good morning, francine. be trying toill get germany to spend more. how successful she will be, we will have to wait and see. it is not just germany but the rest of the major european nations. they may be quicker to open their

to is widely expected to maintain the loose monetary policy spearheaded by her predecessor mario draghi the combination of super low interest rates and a massive bond buying program helped stabilize some of the euro zone's weakest and most indebted economies in the wake of the financial crisis but those policies have of course been bad news for savers who feel there is no longer an incentive to park their money in the bank and fear they could soon be even punished for doing so christine legarde previously served as finance minister of france before taking over as the head of the international monetary fund both jobs demanded some degree of crisis management experience that could well come in handy in her new job as e.c.b. had. plenty of financial correspondent standing by it sounds like god as likely as some time before the e.c.b. needs to change that interest rates policy what do investors its effects are to focus on in the meantime. the market is really expecting her to spend the next couple of months sort of finding unity within the e.c.v. that's deeply divided right now over what th

it is widely expected to maintain the loose monetary policy spearheaded by her predecessor mario draghi the combination of super low interest rates and a massive bond buying program helped stabilize some of the euro zone's weakest and most indebted economies in the wake of the financial crisis but those policies have of course been bad news for savers who feel there is no longer an incentive to park their money in the bank and fear they could soon be even punished for doing so christine legarde previously served as finance minister of france before taking over as the head of the international monetary fund both jobs demanded some degree of crisis management experience that could well come in handy in her new job as e.c.b. head. some of the other business stories making news japan's jobless rate inched up in september to 2 point 4 percent the relatively low the number of poorly paid temporary in part time workers rose many companies that were trying to cut labor costs or made growing economic uncertainty. a spokesman for the malaysian finance you want to be one m.p. b. scandal says he's

draghi was on it quietly for two years, had no support. that was the fracturing within the ecb.t looks like it is going to continue. if you get no fiscal support out of europe, and if the fracture continues and you don't get monetary support -- where people put money, it always seems to come back to the u.s. because elsewhere does not look very attractive. damian: i agree. if you take stock of what is going on in asia, we get some real data next week from taiwan, singapore, south korea. alix: and no one trading in the u.s., most likely. damian: that's true, but we talked about the integration within asia. we just put out a deck this morning looking at china's eight largest bilateral partners and where they've gone this year. all went down. south korea, japan, the u.s., obviously. interestingly, you look at brazil, australia, both up year-over-year on a lateral basis, and that makes sense. they had to buy from somewhere. there's bifurcation there. it's disparate. it is not everybody declining in trade all at once. alix: which is why i feel we are seeing such stark 2020 outlook. y

will coerce a european safety net more strongly and explicitly than draghi.hat only matters if there is in a -- if there's a crisis. but i don't think there's any accident that the spreads have come down since she was nominated on july 3, or her name was announced, at the time we credited good policies in greece and italy, but i think it has a lot to do with lagarde being in the position. but whether she will be effective, i don't know what's effective about negative rates, and i think with the current policies, the they are really in the crisis environment where lagarde could be effective. vonnie: and i want to get your target for the chinese yuan, we are looking at 6.97 offshore and onshore. guy: we are on it -- axel: we are unenthusiastic to the euro relative to other currencies because of lagarde, because i do think she has a dovish tint. that's why i mentioned the swedish krona against the euro, because i think it's more dynamic and at the dollar weakens, which is likely to happen, the euro may lag. and she will be good at putting the glue together in th

there's policies are likely to come under more question because draghi had a certain amount of goodwilld him because he saved the euro with his statements, and therefore there wasn't, by the end, too much discussion or disagreement about the strategy or policies. with lagarde coming in new, there's likely to be more debate about the policies which are going to be followed. though it has to be said, there is an enormous amount of room for movement anyway because of where interest rates are and because of the constraints on quantitative easing. guy: i wonder where that leaves the european banks next year? lucy, stick around. macdonald, allianz global investors cio of global equities, staying with his again. romaine: u.s. secretary of state mike pompeo speaking out in washington on a wide range of issues. he is calling on china to release detainees, and also congratulates hong kong on the recent elections. also on china, says he is clear on how china should treat people. pompeo also talking about ukraine policy, saying the trump administration has had a very policy, and says many people ar

. >> she is a very different person from mario draghi less into the details of monetary policy and theonsummate politician. i'm no doubt she'll be putting a lot of effort on trying to persuade germany in particular to loosen policy as we were just discussing, but we don't think she'll have a huge amount of success at least in the near-term. >> indeed she fired some shots to that effect last week in netherlands in germany andrew cunningham from capital economics. >>> now, auto stocks are trading higher in europe with the sector strongly outperforming the rest of the european ek witty markets. this after wilbur ross says may not be possible to raise tariffs. ross said the trump administration has had, quote, very good conversations with the eu the u.s. must decide whether to impose or delay the tariffs by november the 14th. you can see that broadly speaking the names are very, very green today we have psa up 5%. fiat 4.7%, porsche up 3% very strong rebound in the auto sector. >>> chancellor angela merkel says she wants germany to have 1 million charging stations by 2030 for electric car

central bankers have been so attacked by politicians like mark carney or the brexiteers or marco draghi or other politicians. is this something that you fear is going to be worse or something that will go away when we get back to more normal times of the economic policy or something that we need for a more central independent economic policy. >> so start with the economic policy, and how does that look? well, i learned everything about the crewman, and they told me it only works as the inflation goes up, and as long as the inflation target is credible. you might as well do the fiscal policy and have the monetary policy to be supportive in some way. >> yes, that >> is right. >> and so there is an idealized by, call it the branch 4% target, and although that is me too. and so, we have a coordinated fiscal expansion to get you to the point, and which is modified by the monetary and that is not anywhere on the table. so if we talk about the actual coordination that might happen, i worry about who is coordinating with whom, and so i would be perfectly happy with mario draghi setting the poli

there is a belief on the side of the atlantic that christine lagarde can do something mario draghi cannotd get governments in europe, specifically germany, to spend. kathy, the good news this week is germany of voting a recession. the bad news, the government seems to be satisfied with 0.1% gdp growth, and no signs of that will lead to fiscal loosening. kathy: no sign that they are inclined to worry about their current account surplus. from the public statements at least it doesn't look like they are inclined to make much change in the budget. things would have to get worse before they would take action on the fiscal side. mike: why would they change? i have not heard any signal and in germany that is likely to change its tack. talking about hitting the nail target. i think we can dispense with the idea. when i speak to people in europe, they are very skeptical about germany following through on stimulus. when i speak to people in the united states, there is a belief that we are going to get some stimulus from the german government. where is that coming from? mike: you look at the numbers

week did you get the sense from what she said there would be a very clear continuation of mario draghi'solicies? >> well, that's the impression one gets it seems that the communication is different she tries to communicate more. she does speak a lot of very specific issues outside the realm of monetary policy some people have criticized her for that generally i think she will try to communicate more and be less focussed on technical aspects of monetary policy, but in general, i would expect her to continue the monetary policy of mario draghi. >> thanks so much for joining us and sharing your views there. >>> the u.s. and china are, quote, very close to a preliminary trade deal despite reports to the contrary, that's according to the chinese state newspaper the global times the papers also tweeted that beijing is exited to on going talks for second and even a third phase agreement. the english language newspaper controlled by china's communist party sited expert close to the chinese government as its source for that tweet thousand in now in response, the basic resource gains are up across

i would be happy with mario draghi getting to set it p. i'm not happy with the german government getting to set ecb policy. >> olivier? >> i think the two dimensions of coordination, there is within a country fiscal and money, there is a coordination that can be done, simple coordination. you do something, tell a fiscal authority, you do something, and as a central bank, i react to it and make sure that i undo the affect if it's negative. i don't think it implies more than just that. greenspan is an example of that. coordination across fiscal policies, across countries, that's a much more difficult issue in the eurozone. there again i think if the yu eurozone goes for a -- it will be too weak. when belgium expands it doesn't get much of the reward. so there i think there is a need for coordination. whether it happens or not, it should. it probably will not, would be my answer. >> loretta, when the question was asked about central bankers being attacked, which is true, i had this image that paul volker would storm into the room and say you

guard is widely expected to maintain the loose monetary policy spearheaded by her predecessor mario draghi the combination of super low interest rates and a massive bond buying program helped stabilize some of the euro zone's weakest and most indebted economies in the wake of the financial crisis but those policies have of course been bad news for savers who feel there is no longer an incentive to park their money in the bank and fear they could soon be even punished for doing so christine legarde previously served as finance minister of france before taking over as the head of the international monetary fund both jobs demanded some degree of crisis management experience that could well come in handy in her new job as e.c.b. head. our financial correspondent in frankfurt chelsea delaney told us what christine legarde has planned for her new role. carney. i think to continue. trying to come to. terms. just isn't any reporting from frankfurt let's get a brief look now at some of the other stories that are making headlines there have been more violent clashes in the bolivian capital la past o

it is widely expected to maintain the loose monetary policy spearheaded by her predecessor mario draghi the combination of super low interest rates and a massive bond buying program helped stabilize some of the euro zone's weakest and most indebted economies in the wake of the financial crisis but those policies have of course been bad news for savers who feel there is no longer an incentive to park their money in the bank and fear they could soon be even punished for doing so christine legarde previously served as finance minister of france before taking over as the head of the international monetary fund both jobs demanded some degree of crisis management experience that could well come in handy in her new job as e.c.b. head. financial correspondent in frankfurt chelsea laramie told us about kristin the god's plans for her new role. you know it's really going to try to build some sort of coalition. and the governing council there's been a lot. of discrepancy in how the things. that you would like to do you accomplish review of the in which they haven't done and. looking out. things. i

possible to the place by her predecessor mario draghi. it said they would be even more effective if they were backed up by increase state spending take a listen. investment is a particularly important part of the response to today's challenges. because it is both today's demands and tomorrow supply. and of course investments. to be country specific. but there is t today- crosscutting case for investment in a common future that is more productive more digital and certainly green. take a look now at friday's trading action wall street finishing the week with gains the dow up about four tenths of a percent shares on the s. and p. up is about a fifth of a percentage you can see here the nasdaq. finishing up over one tenth of a percent as well. european markets were also in positive territory this despite a drop in a closely watched survey that covers the private sector crossed years on. but the episode one point 2% attack on here in paris gains of the battle. that the present. same story on the dacs in frankford those games that tempered by w

it is widely expected to maintain the loose monetary policy spearheaded by her predecessor mario draghi the combination of super low interest rates and a massive bond buying program helped stabilize some of the euro zone's weakest and most indebted economies in the wake of the financial crisis but those policies have of course been bad news for savers who feel there is no longer an incentive to park their money in the bank and fear they could soon be even punished for doing so christine legarde previously served as finance minister of france before taking over as the head of the international monetary fund both jobs demanded some degree of crisis management experience that could well come in handy in her new job as head. of the days of the stories that chile's president sebastian pinera suspect has offered to host the annual united nations climate summit a chilly had to withdraw as hosts the country was hit by serious and government protests at the un supplanted part of the i.p.c.c. who considers points of next week. nearly $200000.00 residents of sonoma county in california have been a

more understanding to be one big market in order to be successful it was much more political than draghiould ever have been and much less policy focused what was interesting here for that german audience reflecting on the side effects of the policy stands quite explicitly and telling us soon, we'll get a str strategic review it will never be a dull moment >> more beattles quotes and little more of a shake up. she even promised next year, her german will be even better >>> in the final impeachment hearing, fiona hill debunked a statement. urging to politically driven false hoods. holmes shed further light on the phone call between trump and gordon sondland. >> michael bloomberg has filed official paperwork to run for president. the billionaire previously filed similar paperwork at a state level at alabama, arkansas and texas but he still has not formally announced to run. >> at the women's forum in paris, the activist told cnbc that many key arguments against the new wealth tax were simply not grounded in reality. >> if we are talking about elizabeth warren's 2%. if you have a billion dol

this was the message that her predecessor, mario draghi, has beaten on about for years. it is simply because monetary policy is tapped out. you have negative interest rate policies, you have a u-turn on asset purchase program in a region where you already own around 30% of the euro zone government debt. i would like to see some fiscal policy. strong fiscal headwind. this view that monetary policy is tapped out, particularly in laces where the rates are already zero, have people been too quick to dismiss the potential power of fed cuts here in the u.s.? it does seem like some of the rate sensitive areas of the market have had a good year, especially housing. cameron: certainly and financial assets. monetary policy can influence financial assets quite forcefully. i think the impact of the real economy is much more muted. housing stocks have been great. you look at the contribution of housing gdp growth, it has not improved that much. people might be buying a few more houses but the larger issue is not going to be resolved because mortgage rates have gone down 70 54 100 bas

draghi said as much. political roome or economic room. it has done what it could. to the, it politicians to do what they can, and christine lagarde has said as much. it is betterthink for politicians to focus not just on some blanket expansionary spending. you have to be careful because there is a lot of government debt out there. spending has to be done in a way that increases the growth potential of the economy. it is not about digging holes and filling them up again. haslinda: what should money be spent on? on increasing human capital capabilities, on intoing, on getting people areas where they do not have jobs back on track, funding education, funding infrastructure, connect these left behind communities. these are places where funding can be spent well. there is no broadband in many parts of the country. that is not reasonable in this digitized economy. spending on growth and infrastructure will increase growth potential. that is what we should be looking for rather than a blanket for everybody to spend more. haslinda: the dollar has become , and it is strengt

mario draghi and christine this justifiesay the package in september.not achieving the goal of lifting inflation, they are talking dangerous financial bubbles. the bundesbank does not like it because it puts the ecb to close to debt. all of these are types of opposition. these figures are showing there is a broad inflation problem in the euro zone and we should do something about it. anna: just bravely, is climate change going to be a big divide between the central banks? if the ecb wants to included, the fed not so much. ferdinando: i think it will be a big divide within the ecb itself. christine lagarde seems keen to give it more prominent role. the bundesbank has already warned central banks should be very close to getting too much into politics and i think he is right. there is a danger there. central banks move to close to politics. anna: thank you very much. very good to get your thoughts. now climate talks are expected to take center stage at next month eu leader summit in brussels. bloombergs maria tadeo caught up with the incoming eu president

what draghi said when he left was this policy is in place until it is time to start hiking interest rates at the moment, that looks like 2023 or maybe 2024. stimulus wouldl probably have a pretty good chance of changing that goal post a little bit, and get them thehe target sooner than market is currently anticipating. we the time being, i think have to assume that they will be in the market for quite some time. guy: any opportunities in the u.k.? actually, i think u.k. credit looks surprisingly cheap. we've been dealing with brexit is a risk factor that we've not really known how to quantify, and we've not quite figured out what the actual impact of it would be for more than two or three years now. as a result of that, it is fair to say that global investors are very under ella gail -- are very under allocated towards u.k., and in particular, u.k. corporate bonds. but we've seen over the last couple of months when that no deal brexit risk has gone from , theo less than 10% now sort of tentative steps towards reallocating back towards u.k. assets. , in late december or early january, we h

alix: mario draghi. frances: apparently. romaine: he loves them.ces: when you look at why economists have slightly less gdp forecasts for the next few years, it is because we have bad productivity statistics. we need to productivity channel to come back to life. that is going to be fiscal stimulus. but it can't just be any fiscal stimulus. at has to be appropriately targeted, productivity enhancing. it has to be specific to help boost growth over time. romaine: is that the path out of negative rates, the fiscal side? or is there a monetary policy element that can act on its own? frances: i suspect we have to get back to a place where we can grow faster than 2% to escape the negative rates environment. we now know that our neutral rate is being revised down constantly for a host of issues, including trade policy. there's a lot of issues that have to unwind. i just can't see that happening in the next three to five years, which is why in my view, we had a flat curve and low rates that extend over a long period. david: how do you -- romaine: how do yo

. >> mario draghi, i was at his final ecb press conference, and he said we are happy with our negativeaking over, expected to tell the line, are negative rates cupping the -- helping the economy, helping to boost inflation and bring back growth? >> negative rates, when the book is written, it will not be a great experiment. negative rates are not bringing the result we would like to see. growth in this part of the world has been lagging a negative rates have not allowed an acceleration of that growth. i don't think negative rates are constructive. we will have to wait and see how this plays out over years, but i worry when we look back on negative rates, we are not going to like what we see when it is all over. ♪ sebastian: you can find much more of matt miller's exclusive interview with david solomon on bloomberg.com. still to come, fed officials discussed the outlook for interest rates, but just exactly where is neutral? and commerce secretary wilbur ross says u.s. companies will get licenses to sell huawei. this is bloomberg. ♪ sebastian: welcome back to "bloomberg best." i'm sebast

. >> mario draghi i was at his final ecb press conference.e said, we are very happy with our negative rates experience. christine lagarde taking over and expected to show the same line. our negative rates do you think helping the economy in general, helping to boost inflation and bring growth back? >> i think when we look back on negative rates, i think when the book is written, it is not going to look like a great experiment. i don't think negative rates are bringing the benefit we would like to see. there is no question that growth in this part of the world has been lagging and negative rates have not allowed an acceleration of that growth in my opinion. i don't think negative rates are really constructive. we will have to wait and see how this all plays out. i worry when we look back on this experiment of negative rates, we're not going to like what we see. you can find much more of matt miller's exclusive interview at bloomberg.com. still to come, more compelling conversations, fed officials discussed the outlook for interest rates. just

what is your assessment of the european economy as we watch the shift from mario draghi to christinelagarde is speaking today in berlin. i think these manufacturing pmi's will really give her the ammunition which she probably needs about making a strong point to governments. it is clearly struggling. a very different picture on the side of the atlantic than what we are seeing over the pond. will make a strong message to the german government. we need more stimulus. matt: one of the things we are that is similar in europe is this manufacturing recession. the blue pmi line is eurozone manufacturing. the services pmi's are holding up fairly well. if i change over to another chart looking at what is basically a factory recession around the world, here you see china, japan. all of the manufacturing pmi's. what stops that from spreading over to services? >> that is the key question. it has been exactly the same story in the u.s.. we are in a global manufacturing recession. the consumer is holding things up at the moment. they are doing it on both sides of the atlantic. how long can i conti

mario draghi left with a very clear message about the need for greater fiscal work to take over fromhe monetary policy here. butink that will continue, in a very politically savvy way and with a charm offensive. guy: one country that is abound to deliver a fiscal policy is going to be the u.k. do you think u.k. assets outperform eu assets going forward? mark: we like the pound here because we think that it has the fear of the no deal brexit, which we think is off the table. it depends really on her portfolio, whether you express that as an fx play or as your allocation to u.k. equities unhedged. is, we haveere stopped hitting ourselves in the head with a hammer over a no deal brexit. that is going to feel pretty good for a little while. vonnie: when clients come to you and say, i've had some cash with clients for a while now, but need to put it to work, do you steer them toward emerging markets or stick with developed markets? mark: we would stick with the developed markets on the equity side. as i mentioned, some things like the dollar-denominated emerging-market sovereign debt -- i

was that the right course for draghi to set the ecb on? does she want to maintain that course?oes she want to take it? it is an extremely tough job to provide more monetary policy easing when rates are already about as low as they can get. vonnie: just to finish off in the u.s. and on the stock market, obviously we are at 3060 right now, and up another 0.75%. appetite today for risk. rich clarida talked about us being midcycle, which he couldn't define, but said we are definitely not late cycle. what do you make of that? ellen: it's been hard for people to understand what to make of the midcycle comment. it.as goaded into that make more sense. if you want to take it literally, then by saying we are midcycle, you would be telling investors that we have 10 more years to go, and it just doesn't seem believable. they are called business cycles for a reason. they end. are we late cycle? yes, but how long are late cycles? we've had late cycles, like in the 1960's, that were very long. we've also had late cycles that were very short. if these rate cuts work, you do extend a late cycle