jon: that was alix steel's interview with bill dudley.rs can interact with the charts shown using gtv . onwse recent charts featured bloomberg tv, catch up on key analysis, or save charts for future reference. from toronto and new york, this is bloomberg. ♪ mark: more than 50 people are dead after a stampede broke out at a funeral for a top iranian general killed in a u.s. air strike. news agencies report the stampede happened at general soleimani's hometown. generals delayed soleimani's burial setting concerns about the massive crowds. defense team uk's says he is hopeful thing nuclear deal can survive. ben wallace said today has government has been working with france and germany to make sure the agreement does not fall by the wayside. president trump withdrew the u.s. from the accord. iran said it will no longer bay -- obey limits on uranium enrichment. endingesumed today and ongoing transit strikes. following discussions, edvard philippe dish -- struck a determine tone. union

l dudley, former new york fed president -- bill dudley, former new york fed president, thank you.is wald -- is liz young of bny mellon and ellen wald of atlanta counsel -- and leslie falconio of ubs. who kimmitt: when -- liz: is actually going to be involved in the repo facility and what rate they set it at will be important. liz: one of the things that stuck out to me is the comparison between monetary policy and fiscal policy here and in europe is that monetary policy has been the only game in town. it is the only thing the administration and markets seem to react to. i don't know that we need fiscal policy year in order to keep going yet, but in europe, they ell might need it. just a willingness would be a boost for the economy. alix: for sure. i definitely find people jones and for that across the economy. leslie: we are very range bound in 10 year yields one of the .isks are fiscal stimulus alix: to that point, if you ,ipen the geopolitics and oil which i understand the fed looks at core pce and will take out oil, but nonetheless, that does seem to be the biggest risk this ye

romaine: for more on dudley's fiscal policy ideas, we are joined by bloomberg's alex harris.ot of talk after the big repo scare in september or whenever it was that we would get some signs that they would abandon the idea of a standing repo facility. where do we stand? alex: in the minutes released on friday, they have kind of said it is among the topics to be discussed at a future meeting. the more certain we are in terms of timing, the more likely we will see something by the first half. ideaintuitively, the cents. if you have high quality collateral, you spend it over, they give it to you, maybe a little haircut or whatever. what is the difficulty? >> the issue is that there are a lot of moving parts. for starters, who do you extend this to? do you extend it to the primary dealers or go the route that will dudley and others have proposed, opening it up to counterparties. getissue is about how you that liquidity into the system. in september, liquidity was there but it could not get out. it was trapped. that is one of the issues. some of the issues, where you set the rate?

what president dudley is arguing something for the future. something that could be used in replace of the recent steps that they've taken in order to manage the country. at the moment it's not really. they are effectively holding rates where they want them. heidi: thank you for joining us. co-head of global fx and emerging market strategy at goldman saks joining us there in new york. japan is seeing a boom in green bonds. will it be enough, though, to slowdown in the corporate bond market? this is bloomberg. this is day break asia. head of the new canada's biggest teleco says wau technology is top notch. montreal-based r ce on monday and says waiwei has been a great partner thus far. he said they will play a leading in the new broadband network. he u.s. is pressing allies to reject the company. heidi: boeing shares say it may more debt and the grounded 737 faess further issues. had $33 billion available at the end of the hird quarter, but max related costs are rising. it also found bundles of wiring are too closely packed and in could cause a

bill dudley has a prescription for what has been ailing the repo market.k's top headlines. china sends a signal to protesters with a choice of its new liaison to hong kong. guy istime of the last over, that is the message they are sending out stability, a . stability, a stern new approach. ♪ >> this is bloomberg. ♪ ♪ >> this is bloomberg best. let's continue our global tour of the week's top stories with more developments in the extraordinary journey of the world's most famous fugitive. former head of nissan and renault carlos ghosn. on verging on carlos ghosn. his movie like escape to lebanon. what new information do we have? >> it was an interesting mix of simple execution and complex planning. he left his house by foot. he boarded public transport, a bullet train. it took him to osaka. that's really where the more complex, elaborate part of the plan kicked in. there was a private jet waiting for him. he was put into a box that had holes drilled in the bottom and transported onto the plane. he had a pair of experts waiting for him. one was an ex-military

the aim of which ultimately is to leave that —— dudley putin in power after 2024. -- that —— dudley putin supporters of the government in venezuela have attacked a convoy of opposition politicians outside parliament, preventing them from holding a session there. opposition leaderjuan guaido moved the meeting elsewhere and accused president nicolas maduro of acting like a dictator. ajapanese cabinet minister has made headlines for his rare decision to take paternity leave. the environment minister, shinjiro koizumi says he intends to take two weeks off in the first three month of his child's life. japan has one of the world's most generous schemes for fathers, they can have up to a year off work. but only a fraction take advantage, because of the pressure to continue working. american rapperjay z has sued us prison officials on behalf of 29 inmates whose lives he says are at risk. the lawsuit claims the men's lives are in are in peril danger because of understaffing and neglect inside missisippi's prisons. five inmates have been killed in violence in prisons in the state in the past two we

there, bill dudley former new york fed president, speaking on a bloomberg opinion piece today.with us in london is kit juckes, chief fx strategist at societe generale. the former new york fed president is not the first to suggest a standing repo facility. is it a good idea? is that what the fed will come bush midyear? -- will accomplish midyear? kit: it looks as if it might. trying to get the money market to operate smoothly is to get a combatsystem that can sharks. -- combat shocks. we are learning about what happens when you try to redesign the architecture in the post-financial crisis era. as we take away the special measures that were put in place for the crisis, we've redesigned the plumbing. there is things can go wrong which you haven't thought of. they now need to find something which is resilient and simple -- we are seeing less of them. we traded overnight dollar rates up to 50% over the turn of the year, and my third or fourth year in financial markets, and definitely there was a wide sense of how expensive this is going to be as everyone rushed around, trying to get

bill dudley pushing back hard on that today in a bloomberg op-ed. we will be talking with bill at 9:30 eastern time this morning. also today, we are going to be looking to see if they raise the interest rate on excess reserves. it has been trading at the very bottom of the fed range, just above 1.5%. there's talk about five to 10 basis points increase. do they need to do that now, or will they wait a bit longer? we do have some interesting things to watch for, even if we are not going to get a rate move. alix: thanks so much. be sure to stay with us later today for the fed decides at 2:00 p.m. eastern time. staying in washington, president trump's defense team wrapping up statements yesterday, and now the impeachment trial moves into the question phase. joining us from washington is kevin cirilli. kevin: they develop it within the last one he for hours, dow jones reporting that senate majority leader mitch mcconnell told republicans in a private meeting he does not have the votes to block witnesses. that means two important things. one, that vote on

committed to supporting this government and the agreements that they have agreed to that was de dudley's daryn jones in stamboul well a woman and her 2 adult daughters have turned themselves into a storage he's in western germany following a fire that devastated the zoo killing dozens of animals the woman admitted ordering paper sky latins on the internet apparently unaware that they were illegal in germany it's believed flames from the airborne candles caused the blaze on new year's eve. flowers and candles at craye felt zoo more than 30 animals were killed here after a fire broke out at the ape enclosure many have come to express their sympathy. even clippard students work and everyone who knows the zoo is sad even outside of germany it's always bad when something so terrible happens and no matter where it happens been gets interesting i was here almost all day yesterday because i couldn't bear the sadness alone. it helped to see so many mourners here and i cried i couldn't have stood it at home so. a total of 8 apes were killed including one called masa europe's oldest gorilla who was

i'm now joined by dave dudley reporter until he has been following the story very closely for us. so prince making the harry working members of the royal family does that actually mean well it means that they will no longer represent the queen in public you have to remember the the day to day responsibilities of members of the royal family is really representing the queen in some of these public style p.r. events which we see them visiting or see them taking place or taking part in throughout the world basically representing the queen engaging in outreach and public diplomacy style of events now we know that as you said they are no longer going to be refusing their full titles in public and we also know that they're going to be cut off from some of the public funding that they have benefited from in the past as you said they're also going to be pain back several millions have been used to refurbish a home that they currently live. now this announcement may have come as kind of a surprise that people haven't really been following the story very very closely but it actually has been

is certainly something that you have pointed out in the past, although i should mention that bill dudley president of the new york fed, disagrees. he says the federal reserve's purchase of treasury bills is contributing to the rally in stocks. let's check where things stand right now as we head towards the fed decision. the s&p 500 initially struggled to sustain the rebound -- well, after the disappointing pending home sales report. but look, we are right back up again. tom: there is a wall of money here, and that is something that michael mckee goes into the press conference with, the huge wall of money that is out there. jon ferro mentioned today, important,ich is so the idea of bonds diverging from equities, yields lower and equities higher. scarlet: telling a different story, perhaps. crude oil cannot catch a break. resuming its decline. normally i would look at dollar-yen, but cable is interesting because of the boe decision tomorrow as well. 50% odds we will get a rate cut from mark carney. let's go to michael mckee at the fed. michael: nothingberger from the fed. no word on when t

it was grounded last year after two dudley crashes overse. aiersl productionnt according to limburg report. the tech giant is seeking to broaden its reach and the global market with a device that could be unveiled as early as march. it would be the first lower cost model since the iphone se. that first went on sale in 2016 for just under $400. >>> a new vacation rental platform has launched that caters only to women. it is called golightly. all managers are women and renters must be women. the rental platform is invite only. if women want to join who have not been referred, they can apply online. men are allowed only if they accompany a woman on the trip. that is your cbs money watch report. for more go to cbsmoneywatch.com . >> we may have to hit that up. >> road trip. >> darren is here. nice to see you. >>> nice to be seen. nice to see you guys today. the mornings have worked out kind of nice lately. whatever yesterday felt like to you, that is what today will feel like. temperatures, upper 40s. i'm hard-pressed to find any issues with fog.

this declaration is not a vote of no confidence in china on the contrary dudley continues to have a confidence in china's capacity to control the outbreak. the world health organization's emergency committee has cautioned countries are going to stigmatize in behavior as increased global discrimination is being reported against people from china where the virus originated but it is done off as the story. borders on lockdown zombie like scenes of quarantine cities the world is united in trying to concoct a healing seram virus which has infected hundreds in china has now reached the united states villages have started to physically block themselves off from the capital and new cases have been confirmed around the world including germany and japan. in the contest of deadliest bugs the new coronavirus doesn't even come close to the order from earlier flu but tables turn dramatically when it comes to the ability to strike fear in the masses and this fear is also bringing out the racist in some people with the chinese diaspora in canada among those at the receiving end our friend of mine has told me

dudley of the new york fed.ns, and our audience wants to know what you are learning from pros on the desk, the movements you see in the short term paper market. what have you observed in the market that gives you information about these balance sheet challenges? >> well, i think everyone observed that the fed had a very significant balance sheet investment and reduced that. there have been a bunch of regulatory inputs, in the amount of liquidity banks need to hold as regulations have changed, and at some point you can reach supply and demand where for a variety of reasons some can be idiosyncratic, and supply and demand, liquidity changes and the price for shorts on the rises. andound that appropriate want to make sure there is enough liquidity in the system. we positioned ourselves so we have liquidity to contribute. >> that was the question. are you constrained by the new regulations? are you happy with them, or do you need to see amendments to feel better? thee are an adaptor to regulatory framework, so as an

tom: we will ask bill dudley.lot of different opinions, including the former member of goldman sachs. we get all of these different opinions. what our audience wants to know is what you have learned from thoseos on the desk about reactions, the movement you have seen great what have you observed in the market that gives you information about these balance sheet challenges? everyone observed the fed had a significant balance sheet investment and they reduce the balance sheet. there've been regulatory inputs to the amount of liquidity banks need to hold. at some point, you can reach the supply demand where a variety of reasons, some of them can be idiosyncratic, that the supply demand and liquidity changes in the price on liquidity rises. we saw that and responded appropriately by saying we'd to make sure there's enough liquidity in the system. i think the banks, i know we did, we positioned ourselves so that at the end of the year, we have liquidity to contribute to that. tom: are you constrained by the new set of

bill dudley has a column saying the fed's report response is not fueling the market.n: policy is obviously a stimulus. it is going to find a home somewhere. if you look at the u.s. stock market in the context of the economic recovery, it seems clear to us that some of that is about the way the fed has been using policy. they have been doing it for technical reasons as well. we saw the rate spike above the target range in september. that is why they are doing this, moving things around as well, and they are successfully keeping the rate within the band. i thing it is fair to say it is more monetary policy operation. turn our attention to the truck maker volvo. 9.2 2 billion, that is a beat on the estimate of 8.58 logan for the fourth quarter. margins slip 8.8%, from 10%. that is the fourth quarter operating margin, just to be clear. the overall fourth quarter margin expands to 8.9% from 3.4%. that may rerate that stock, a proposition that is coming to the fore. we are going to talk about all things tech. you might be active on facebook, but how does it play out to the

. >> laura: okay, many of them will just not accept this loss, but rebecca dudley certainly does.ber she was the woman who cocreated this button and sold more than 48,000 of them to liberals all over the country. who said faith was dead? she told "the new york times" this week that she knew there was no way any thing could live up to two years of hype, so she's thinking of creating a new button to restore hope in the hearts of leftists everywhere. it will read "st ny." southern district of new york, which i think may take them all the way back to the first stage of grief, denial. and that is "the angle." >> laura: coming up, if it's free, it's for me. that's the mantra of the entitlement generation. i expose the left's rampant disregard for anyone with whom they disagree, even chelsea clinton. the scourge of generation e is up next. >> this is not about free stuff. this is about public good. public good. the term "free stuff," i don't want to hear it ever again. i feel like i'm losing my identity. business cards...new logo...outdoor sign. you always get me. now, get free 1 hour in

. >> we get a lot of different dudleys, including mr. of the new york fed.ll these different opinions. what our audience wants to note is what younow learn from the pros on that desk. observed you actually in the market that gives you information about these balance sheet challenges? >> well, i think that everyone observed that the fed had a very significant balance sheet investment and they have reduced that balance sheet. there has been a bunch of regulatory input. at some point, you can reach a supply-demand where for a variety of reasons, some of them , that thediosyncratic supply-demand liquidity changes and the price on liquidity rises. we want to make sure there is enough liquidity in a system. i think all the banks also -- i know we did, i can't speak for others -- we position ourselves at the end of the year when we thought liquidity might be tight. >> are you constrained by the new set of regulations? are you happy with them or do you need to see amendments so you can fit in better? >> we are an adapter to the regulatory framework. i think we have

tim's defense attorney dudley kline. >> you have a complete lack of physical evidence.bloody fingerprints. no bloody footprints or the door. >> the prosecutor was confident about the evidence he did have. >> i think circumstantial cases are sometimes the best. they don't lie. the circumstances don't lie. people lie. >> and that's the case lawry made to the jury. the circumstances showed tim permentor was the only one with a motive and opportunity to kill karen. and everything he did afterwards was fabricated to cover up the crime. >> the issues in this case or the murder of karen by the only person that really could have done it and that person lied about all these things. and you know, there was no reason for a person to lie about the death of their loved one if that's true. >> defense attorney countered with common sense, arguing that karen's killer must have been drenched in blood after a frenzied attack. there was no forensic evidence show his client was that person. >> in order to buy the state's case, you have to make assumption upon assumption upon assumption. th

christina dudley. what can we do about other, bigger countries not adopting green practices?eductions come, and if individuals find some way in theiroh and if individuals find some way in their oh own home, lives, of making a difference because they want to, and there is no compulsion about this, it has to be a individual choice and their own voluntary view of this, but i mean there are little things that one can do, it might be depressing, i am switching the lights off, turning the thermostat down, switching to a bicycle from a car, whatever, and china is still building coal—fired power stations, isn't that going to blot out anything i do? yes, it might to an extent, but at the same time, china is investing massively in renewable power, and the world is waiting to see the next chinese five year plan, it is due to come out some point this year. we don't know whether that will signal a bigger drive to go green. if it does, that would send a signal round the world that might indicate that even the world's biggest emitter is taking this more seriously. one feels there needs to b

his name is foster dudley. okay.saw this envelope in an aisle and he opened it up and there was $100 bills in there. nine of them. $900 in total. so anyone in their right mind might be like, okay, that's a major come up. what did foster do? >> what did he do? >> he went to his mother and said, you know what? we should return it. >> and he returned it? >> he returned it. they talked to the manager at the target store. they took the money back and gave it to the woman and target in turn gave him $100 gift card which i thought was good. >> way to go, foster. >> it was amazing. he said this. he goes, "it would have been cool to keep, but if i did keep it, it wouldn't be good for the lady." >> foster knows. >>> also incredible, a 350ound grouper caught in florida. look at this. >> what? >> yep. believed to be 50 years old. we're going to need a bigger boat. >> that's insane. >> that happened off the florida coast. >> is there anything else to say about that? >> you can see how huge. >> big fish. >>> cute dog meeting cute

i think dudley raised some good points. i don't ever question the fed. smart individuals. they will figure it out. the issue you have which i think everyone is skirting around is we had wealth inequality, income inequality, and excess reserve inequality. the reality is when you look at excess reserves in the banking system, it sits with a handful of banks, and there is one specific bank that dwarfed everybody else. think inntioned that i the interview. you can't force a bank to lend their excess reserves, period. there are suggestions that the fed can open up spots of repo to other per dissidents. -- other participants. did you get into the moral hazard issue. you already have people that are angry about financial markets. how do you feel about headlines if the fed makes a loan and there's mechanical issues around it to explain the hedge fund? it is, catered. alix: but either way ash it is complicated. alix: but either way they have to be involved in the market, and it creates distortions. theseve qe paired with fundamentals, and how do you square the tw

coming up, bill dudley, former president will be speaking to us.n is your big screen. and with the xfinity stream app, which is free with your service, you can take a spin through on demand shows, or stream live tv. download your dvr'd shows and movies on the fly. even record from right where you are. whether you're travelling around the country or around the house, keep what you watch with you. download the xfinity stream app and watch all the shows you love. beyond the routine checkups. beyond the not-so-routine cases. comcast business is helping doctors provide care in whole new ways. all working with a new generation of technologies powered by our gig-speed network. because beyond technology... there is human ingenuity. every day, comcast business is helping businesses go beyond the expected. to do the extraordinary. take your business beyond. ♪ alix: supply chain disruptions. toyota suspends operations in china. apple worries about losses. the market prices and a full rate cut by the end of october. ge's turnaround takes effect. earnings beat

we speak to former new york fed president bill dudley.day, january 6. happy belated new year's, everybody. it is a risk off move developing in the market. equities down, oil surging, gold surging. that is your safety trade. on the flipside, the dollar is the biggest loser, despite being the biggest winner on friday. other currencies surging. that feels more of a risk on trade, and bonds go nowhere. it is time now for global exchange, where we bring you today's market moving news from all around the world.

dudley, today in a bloomberg piece wrote that he doesn't see what we all see and that is how the equitylowing the size of the balance sheet like a dog on a leash weigh in on that for your final thought. >> so, fed modelers, fed economists believe it all passes through the interest rate not the amount on the balance sheet. if the fed is providing liquidity to get the funds right where it is, that is the support to equity markets not the size of the balance sheet probably not right in the sense that the size of the balance sheet contributes to the risk on nature in equity markets it's reassuring to investors if it's reassuring to investors, if it is taken as a sign that the fed will always be there to watch your back, then it supports equity prices >> excellent thanks, vincent. to me it seems like a financial argument based on semantics, but we will see. carl, back to you. >> all right rick, thank you very much. >>> very special closing bell coming up this afternoon, sara, given all the earnings and the fed reaction >> right we'll have jay powell and his news conference of course a great

from earlier this morning also squawk box is starting live again tomorrow morning you can catch bob dudleyre. squawk box will return in just a moment at leaf blowers. you should be mad your neighbor always wants to hang out. and you should be mad your smart fridge is unnecessarily complicated. make ice. making ice. but you're not mad because you have e*trade which isn't complicated. their tools make trading quicker and simpler so you can take on the markets with confidence. don't get mad get e*trade and start trading commission free today. ♪ we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and running. i was printing out labels and saving money. shipstation saves us so much time. it makes it really easy and seamless. pick an order, print everything you need, slap the label onto the box, and it's ready to go. our costs for shipping were cut in half. just like that. shipstation. the #1 choice of online sellers. go to shipstation.com/tv and get 2 months free. >>> u.s. stock markets have soared by more than 50% since my ele