example the repo markets it's hidden only a few select bankers know what's actually going on the fed the new york fed rescuing the system know which banks or banks are in trouble somebody is in trouble something's in trouble something's happening but we're not allowed to know it but it's being revealed this crisis is being revealed through the interventions here in the in the markets we're starting to see the the stress in the credit markets the subprime credit markets which are which are the same as during the financial crisis when there were millions of jobs lost and therefore people couldn't make their payments here we allegedly have a great economy jobs are plentiful the unemployment rate is that all time low wages as the fed as even pointed out have not been rising so sharp but during these sort of times is when we see why the truth gets revealed is because if we're having a massive rise in inflation and of course for example rentals everybody knows that because of the disaster of 20082009 there's an all time low in terms of amount of americans who could afford their own homes so they rent black

are also people who get free access to the new york fed so they could manage that so easily here if you're outside of it the further you are from the new york fed this is the cantillon effect this is in action on the nation state level if you get free money from the fed that operates the entire global system then you're living large if you're outside it just like something like the dollar soaring as it did in the past 2 years will cause total crisis in your country and it's only that when you mention america of course you're referring to north america now when i say america i mean north america they don't like to be clear about this is a america too yes i have noticed they don't like us they are united states the us and i don't mean americans like those people in united states who like to refer to themselves as america but it's like those a.t.m. fees right so in other words the interest rates on this debt if you have access to certain privileged windows over there at the central bank. doesn't mean anything to you but for everyone else or they have to deal with the economic fallout from all the financial vandalism but that's a little micro cause

the new york fed. in the current administration, there is tension between the fed and the treasury and the fed and theouse. do you have any comment on whether the fed is sufficiently independent, and should we do anything to make sure it is more independent than it already is? hank: the thing i am most proud of was that the solution came on a bipartisan basis. i think the last two times congress has acted on a bipartisan basis, anything that was consequential, was the tarp authorities and the authorities for fannie and freddie. the way it worked and worked across administrations. to get to the current situation, i never ever want to bet against what we can do as a crisis, during a crisis. i do know stephen mnuchin is very competent and understands financial issues. i have a high regard for the chairman of the fed. i believe if we ha work together. david: thank you very much for a very interesting conversation. thanks for a great career and your service to our country. hank: thank you. david: thanks very much. ♪ emily: at the heart of the u.s. china trade dispute is the battle to dominate the future. i

i'm live inside the new york federal reserve with new york fed president john williams. >> welcome back to the new york fede here end of december, end of 2019. what kind of growth do you expect for 2020 and inflation. >> the economy has performed well i expect to see growth at 2.25%. unemployment at 3.5% inflation has been a little softer than we would like to see. looking at next year i expect to see more of the same growth around 2% for the year. unemployment staying around where it is now about 3.5% unemployment rates, steady job gains and hoping to see inflation move back close to our 2% longer run objective is here. i feel very good about where the economy has been this year, how it has progressed and feels good how it will look next year very close to our maximum and price stability goals we feel on >> you say the unemployment rate you hope it sticks to 3.5 you hope it doesn't go lower >> no, i would say 3.5 is a very good place we haven't seen inflationary pressures emerge even with very low unemployment if the unemployment rate moved down somewhat i think that would be very good in terms of a stron

fed, they took this person -- ill took thise fed, they person out, on and on. jerome: undoubtedly, the fed has a resiliency so maybe there is a slight friction with assuming new roles and responsibilities, specifically the new york has gotten the message. operations are providing almost $5 billion excess returns over the year end and beyond, so that is helping alleviate stress is in the marketplace last quarter. when you look at the micro, yesterday, we should have seen a lot higher repo rates if there was an ongoing concern where the funding prices might be -- crisis might be. francine: here is boris johnson. seismicson: it was a collection, but we need to repay their trust and work 24 hours a day, work flat out to deliver. daysurse, the first 100 were very busy, 140 days, whatever, was a frenetic time. we are going to have to work even harder because people have a high level of expectation and we must deliver for them. how many new hospitals are going to build? >> 40. mr. johnson: how many more of us are we going to hire? >> 60,000. mr. johnson? there is a huge agenda -- mr. johnson: there is a huge agenda offocial process, leveling and uniting across our country with debtor infrastructure, education, and tech

the fed's overnight lending rage will remain at the current target between 1.5 and 1.75 percent the decision follows 3 rate cuts earlier this year. let's bring in our financial correspondent in new york yes so the fed's view on the u.s. economy is basically everything's hunky dory is it. at least a very solid we had we did see some weakness that's what the federal reserve mentioned in business investment and an export both probably because of the trade disputes that we're seeing especially between the united states and china but if you look at the job market that is red hot we are at the lowest unemployment rate in 50 years but even. the fed chairman did not call the job market hot he was asked when would it be hot and he said well if something you need to teach to have something hot and was he means that we hardly see any wage inflation overall in frazier's inflation remains pretty moderate and therefore there was also no reason to increase rates and yet none of the policymakers suggested that lower rates would be appropriate next year what are we to take away from that. that's what the market expects at this point that we might see no movement to whatsoever with interest rates in the united states

the final number. don't miss this. next week, new york fed president john williams and boston fed president eric rosengren. and don't miss this. the boe and boj announcing their weight decisions on thursday. and a reminder, subscribe to our weekly podcast on itunes. you are going to find all the best content each friday to enjoy over the weekend. from new york, this is bloomberg. ♪ ♪ >> i am taylor riggs in for emily chang. this is "bloomberg technology." tech stocks on the move. china and the u.s. agreed to phase one of a trade deal. that includes intellectual property. plus, tensions. the strength continues to flare between alphabet employees and management. we will hem

. >> if you had to blame one person more than the other would it be the treasury, the new york fed or it would be the fed itself >> reporter: you know, i think the fed did a good fake effort to estimate the amount of reserves required into the system i think nobody has ever been here before with a big $4 trillion balance sheet they tried to winnow down if i blame anybody it's the federal reserve system for not listening. the banks that were talking to the fed and saying we have a problem here and i think it took the fed a little bit of time to hear industry talking about that problem and i think they may have finally opened up their ears and minds to the problem here >> all those i agree with you. you could also forgive the fed for not thinking oh, we're going take the profit making banks at their word on this at the first instance and maybe that could have been somewhere halfway in between. >> one of these days we'll have discussion in depth about this i put the blame on a survey that the fed does in which they relied upon to set policy and i think that survey was flawed the amount of reserves they thou

the fed pause is warranted. >> the fed is doing nothing. >> it is probably going to remain on pause for a good portion of next year. jonathan: joining me around the table in new yorkgershon distenfeld, priya misra, and krishna memani. priya, let's begin with you. what a payrolls report. priya: a good report, no way to look around it. when we take out the gm numbers, still a solid number. but i have to highlight caution a little bit. the labor market is a lagging indicator. let's look at the fundamentals. is global growth for sure bottoming? there are some signs that it may be. is it about to surge ahead? i am skeptical. we are not getting stimulus out of china, europe. in our view, global growth probably models along. the trade uncertainty, we are so hung up on this trade deal. know the phase one deal, which is not guaranteed, the fact that the president threatened tariffs on argentina and brazil, that was just a few days ago. we weaponize tariffs now, and uncertainty remains. i think the fed is likely to be on hold. we are not entirely out of the woods for the economy. the labor market may be showing signs of cracking. jonathan: i have to say, two months ago,, it

the difference between fair market-rates and what a low income person can supply. >> blake: and bill deblasio says new york needs more section 8 help from the feds and the president says the fedsjump in even though it is part of that responsibility. >> if you look at the statistics homelessness is up 16.4% in new york, it's up equally in san francisco, and at the same time, in the other 48 states, on average, it's declining, so two things are happening. one, either all of the homeless are moving to new york and san francisco, or in other cities, people are actually dealing, local mayors are actually dealing with this problem, a lot more effectively than we're see ing in new york. i think it's a way to kind of shift the blame for failed policies up in new york and san francisco. >> blake: got to leave it there for one second going to have you stick around lots to get to still. it's a record year of ceo turn over, but that could lead to big turnarounds, how the tide might be turning we'll take a look at it after the break. >> ♪ carry on, may your past be the sound of your feet upon the ground, carry on ♪ we made usaa insurance for members like kate. a former army medic, made of

fed watching, watching the repo operation, and the new york fed will offer a 15 day paper liquidity to the market. that will take you through to january 7. the maximum is $35 billion. last week, we saw the first two week offering covering the year-end. it was a little bit lighter. 31 point 3 billion. the maximum was 35. we will see how tight is your market going into the year-end. let's get the first word news headlines from around the world. annabelle droulers assisting the team in hong kong. annabelle: china is confirmed it will continue opening its economy, using regulations, and lowering finance costs for private companies. the government will offer more breaks. china has 20 7 million private companies employing 340 million from people. turkey will increase military support to libya to help the government against an offensive by militant commander khalifa hav. his comments came a day after ministers approved a support pack to support the libyan administration in a first step. malaysia's attorney general said he is ready to ratchet up a criminal case against goldman sachs for its role in the 1mdb affairs. he spoke exclusively to bloomberg and told us he is planning to bring bank executives to court in malaysia regardless of any settlement reached in the u.s. >> it does not matter really if we set with the u.s. it does not help them one bit. it does not affect our prosecution of the case. annabelle: north korea is reportedly expanding a missile plant, raising concern it may resume testing weapons that could threaten the united states. nbc says satellite images show a new structure on the site that may be used for accommodating the launchpad of long-range missiles. north korea threatened a christmas present for america if it does not win nuclear concessions by the end of the year. bushfires are burning out of control in new south wales, disrupting the festive plans of thousands of people. at least nine people are known to have been killed and hundreds of homes and buildings have burned down. the fires are being served by record temperatures with the morrison government criticized for downplaying the effects of climate change. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am annabelle droulers. this is bloomberg. getting to the markets now. a pretty mixed picture in asia today. juliette: it is although we are seeing the regional index hold onto those three days of losses and very low volumes, as you would expect in this holiday week. the new zealand market still higher. records up by .6%. australia under a little bit of pressure, down for a third session in a row. bhp, one of the laggards. china's market down .3% despite the fact that we heard the news that we will see china cut some tariffs from january 1. most of the economists and analysts we have been speaking to saying that is probably already baked into market sentiment. a little bit of upside in chip stocks. we had south korean exports looking a little better than expected and when it comes to the currency market, seeing a bit of weakness in the seeing dollar end of inflation numbers coming through out of singapore later today, and they could show that core measure rebounded for the first time this year because singapore of course has been one nation that has been very much hurt in the crosshairs of the u.s.-china trade dispute. manus. manus: absolutely. we got that deflation from china. jewels, what about the pharma sector? that is one of the stories you are tracking. juliette: it is a defensive play. we have seen a lot of money go into pharma stocks today. if we can look at the stocks i am watching, i have seen some moves coming through in south korean pharmaceutical stocks. samsung biologics having its biggest jump into months. a lot of these south korean pharma stocks could actually get a good used ahead of the health care conference, which is going to be held in early january. and then regionally, you are seeing a pickup in pharma stocks. it is one of the front runners, up by more than 3% in the afternoon manus: manus: session. manus. -- session. manus. manus: juliette saly with your asian market roundup. we have been saying it. it is reversing half of the gains accumulated since its historic trading debut a few weeks ago. we are tracking the story. sunday's trading, are we had a danger of becoming slightly over obsessed by every nuance to move in aramco? that is my question. >> manus, i think we still have a lot of people out there watching this stock pretty much on a daily basis, and we are listening to them. are we concerned about this session of declines? i don't see anyone panicking at this moment. a lot of people saying there is some sort of correction going on from the peak. people are trying to find what will be the fair value for this but if we look at the chart right now, yesterday was the second lowest volume of trade for the stock since december 11. the first day of trading riyadh. of course, it was a sunday. we should see much lower volume of trade this week because of the holiday season. of course, we have a lot less people here in dubai. there are many investors and saudi that are taking a break as well so you would not -- it would not be surprising to see lest shares traded. that should of course impact price swings as well. yesterday, for example, the stock fell as much as one point 7%, wiping out 50% of the gains since the peak outreach last week. it would not be too big of a surprise to see that happening again this week, but still, nothing too alarming. this. simone touched on we touched on it with a few guests as well. what stands out for you in kuwait and qatar? >> kuwait, it is a story that it was the best performer in the middle east in 2019, when it comes to equity markets. we hear a lot of people saying that everyone should get prepared for a much slower 2020 for this market because most of the flows that are expected to come with the inclusion in benchmarks, it is priced in. it is there. there should be passive money coming in, but there's plenty of local investors ready to sell to those investors once this happens. banks are very much strong. the --present much of we have some good names to look at in the israeli market. manus: what is the top of your agenda for the day? filipe: we have to wait for the open today. it was a long weekend for this company. i am sure investors are curious to see if there will be a repricing of the stock, potentially recover from the level that we saw it ending last week. manus: thank you very much, filipe pacheco setting the agenda on the middle east stock markets. kuwait and saudi arabia could reach an agreement by the end of this year to renew oil output in the shared neutral zone along the border according to the co-80 foreign let's get more. good to see you. .- kuwait let's get more. her to see you. i have been coming here a long time. late last year, there was a meeting. kuwait toflew to discuss the resumption of work. fields basically produce around 500,000 barrels. the optimism about returning back-- in that production into the market is not really much about that as much as the return of the production. it is more about resolving this long-running dispute that has been going on for four years. manus: you cannot just turn on taps. you're not going to have 500,000 barrels at the market over the night. the saudi's are not going to like that. >>>> it will definitely take time. reports are saying the saudi oil minister will be flying on tuesday to sign an agreement for the return to kuwait to basically sign the agreement to resume production in those oil fields, and it is important because this was after saudi arabia went ahead and extended the concession. and apparently without consulting kuwait and those areas. backdrop toat the the geography of production? what about sentiment? there was a gathering of oil ministers. it was quite upbeat. i am sure he had some caveats. what did he say and why was he upbeat, first of all? zainab: hopefully next year, we will see easing of the tension between the u.s. and china, and that will certainly help demand globally and consumption globally, so that will basically help prop up oil prices without the deep cuts that they had to actually resort to so far. manus: one of the stories we shared with one another this morning is the opinion piece. julian lee is great and when we are in opec, he is hunkered down stairs, quietly tapping away, and then you see these pieces come out 10 days later. the opec deal was not worth the paper it was written on. now, that is quite a contentious viewpoint, isn't it? zainab: it is a strong headline for sure. the actual the client for the production on average for the entire nine months preceding this agreement was nearly 5000 barrels a day for saudi arabia, so it is not that big. not that huge, and that is the essence of his argument. manus: it is a good discussion. the backdrop to it -- he did sit down with anne-marie and talk about his ambitions to the market. zainab: that must have been a factor. manus: we expect an update on the 2020 strategy when we start. thank you very much for joining me on the oil market. the oil is not reacting positively. ok. we are going to be chasing oil ministers all of 20/20. we are going to talk more about hong kong. the clashes have returned. a police officer draws his gun. we will have the very latest on the troubles. this is bloomberg. ♪ ♪ of sydneye shots harbour. still battling wildfires. high temperatures. the aussie is rising. we have this positive line on china rolling back tariffs on u.s. products, lowering the duties from beijing. ,he aussie, according to mizuho has been undermined by the prospect of qe and rate cuts. may be we are a little bit too overly bearish. lovely fx headline. the 200 day moving average looks too old for the fifth time this year, limiting the chance of seeing fresh december highs on the aussie dollar. so again, some technicals at play on the aussie. let's check in on the business flash headlines from around the world with annabelle droulers. annabelle: thanks, manus p the carlyle group is planning a 100 million pound takeover of the u.k.'s hardwood wealth management group according to sky news. the report says the deal will be announced at the london stock exchange later monday at a price that is not expected to represent a big premium to the friday close. there has been no official comment from either party so far. haves says it expects to record sales and profit this year after a festive shopping period is as went very well. the ceo told local media that adidas is growing significantly fourthin the quarter than it did in the third. the strain. feeling the nikkei news says the carmaker is shifting the production of its suv back to japan. to makes the capacity 135,000 cars a year in thailand. it has climbed more than 8% against the dollar, hurting thailand's export oriented economy. metlife shares are holding in new zealand after it received a revised take of a bid from an unknown buyer. metlife cara rejected a bid it careved in november -- rejected a bid it received in november. it says it is carrying out do diligence. shares have surged since talks of the takeover began and that is your bloomberg business flash. manus. manus: thank you for the roundup. now, it was another tense weekend in hong kong. it included a police officer drawing his sidearm on protesters. no shots were fired. stephen engle has been tracking the story from the very start. good to see you. where do things stand right now? stephen: all sides are fedto be perfectly honest. they were derided as scum and vice versa. and the police calling protesters cockroaches. and nerves are frayed here in hong kong, so we have not seen the big demonstrations of late, but we have seen these sporadic clashes on the weekend, and that is where we are this monday morning. recapping yet another sporadic clash that started off as a peaceful protest. demonstration in support of the uyghurs in china, who had been sent to reeducation camps, but that turned violent when one of the chinese national flags on the flagpole nearby was dragged down and the police came in and the officers drew -- one officer drew his sidearm because he felt threatened. , stephen, i ask you you have been tracking this story from the start. i want to know what is in store for this week. our people becoming fed up with the protesters or are they boosting their support? where does society stand in terms of the backing? for every quasi-resolution, you need the support of the people. st

new planes the rebound to growth may not show up until later in 2020. i will be talking with new york fed president john williams about the 2020 outlook for the economy and fedrepo market, much in question, at this time tomorrow. carl >> all right steve, wish we had more time to chat but thank you for that. steve liesman. >>> stock still aiming for their fifth day of gains s&p did hit a record high. joining us this morning, jpmorgan's chair of global research joyce chang and brian bellski. great to see the two of you. good morning. >> great to be here. >> if right at jpmorgan, the max is half a point, what sort of offset the benefit we thought we were going to get from usmca and phase one? >> i think you will see some of the u.s. exceptionalism fading and we have u.s. growth next year at 1.7%, compared to 2.3% this year. that fiscal support is coming off. the question we have is, is there really better value in some of the international markets as we look into 2020. >> you did say you advised favoring em, europe and japan? >> yeah. over the united states i mean we're still pretty constructive on u.s. equities, at 3400 at the end of the year, but emerging mar

the new york fed will get a handle on this. there are fewer banks providing that liquidity, which is a concern. the world is a wash. we might have a few blips but the fedprovide liquidity and keep that rate in line it is like the blood pressure. if it is within good range and healthy, the cash system the consumer needs to know, if the repo rate is flukt rating, that means the basic cash flow in the system is seeing challenges >> it is wbi wonky but it doesn't sound like you or people you are talking to don't believe this could be systemic of a bigger issue or a spark that could signal a bigger sell off >> i think september was a gotcha you had three different events within a week of each other. a lot of people have been planning for this year end and buying cash alternatives that will take them over. i think people will manage this cash period well and it will be fine i do not believe it will lead to a problem in the equity market >> for more of brian's exclusive interview including his take of record exit numbers for ceos in 2019, head to cnbc.com >>> some early morning analysts calls to tell you about. general electric upgraded to a guy. analysts arg

at the fed's final meeting chairman jerome powell said the central bank expects to hold rates steady through 2020, no cuts, no hypes. the fed president spoke with kathleen hayes in new yorks week. kaplan said he sees no rates to move next year and will take a major shift in the outlook to convince him otherwise. >> best to an material change in the outlook either for better or for worse. i've already got baked into my outlook we're going to have weak manufacturing next year, sluggish global growth, pretty sluggish business investment but with a strong consumer. there would have to be some material change from that outlook. >> which way are the risks in your mind? >> it's fairly balanced at the moment for a number of reasons. i'm hoping we'll get some stabilization in trade. i think the moves the fed has made have also been helpful. and i'd say the risks are balanced. >> if you see the risks tilting towards the upside and a possible need for a rate hike, would that be hard to do in an election year? would you consider that ill-advised, something the fed will try to avoid? >> it will not be a factor in my thinking in that i'm going to, as usual, divorce political considera

the fed fits into the wider central bank story. i am joined in new york by michael mckee, bloomberg international economics and policy correspondent. bankin london, the union level head of fx strategy. mike, let's talk about the fedl change. we will get new members and some of them are more dovish. presumably that is factored into the thinking. michael: this is the annual rotation. four members go off, four members go on. this year, it is almost an even trade across. you look at oncoming minneapolis fed president neel kashkari, but going off is james bullard. both of those are doves. the hawks are esther george, she is leaving. an investor from cleveland is coming on. that is an even trade. patrick harker is a centrist with hawkish leanings and eric rosengren is a centrist with hawkish leanings. you substitute parker for rosengren and not much changed. we will have to see if there is a real difference between robert kaplan of dallas coming on and charlie evans of chicago, who was more of a dove, going off. robert kaplan has been talking gabashvili, -- has been talking does not lookit like the new members will have any influence in any kind of change of policy. it will be whether we see any kind of change in the e

the fed and the new regulations since the financial crisis. despite the big hiccup, it seems the federal reserve with the new york fed doing the operations did a what they used to do in the olden days, to add reserves when there is a shortage, move it out. is that a big deal if the fed keeps doing it? >> that is a fair perspective. they just back to what they used to do regularly. there should not be this panic. i think it is simplistic in the terms that the repo rate did spike to 10%. it is an incredible move. clearly there was problem. whether you blame the fed or the orks being out of practice regulation or these temporary factors in terms of the treasury option that week, there is separate issues. it is a way to get to 10%. this is not the year end. the fed has done a good job. the fed balance sheet has increased $300 billion, which has been a side effect to this move. it hasn't been directly related but it has been in terms of liquidity in the system. they were squeezing the liability side too much in terms of reserves coming down. they are being cracked about addressing it. ifwill make people nervous the squeeze might be worse than norma

the new york fed is stepping in at this crucial time. operatione very first sparked more than curiosity. panicwas almost a hint of but not among martin participants -- market participants. did market participants understand what the fedg to do? understand they are supposed to be a temporary valve . the question is what happens when the starts to run off? they're trying to build a permanent level of reserve and are not quite at the levels they are comfortable with. now everyone is wondering if these are going to be going out through january, what happens when all the temporary liquidity leaves the system. as the market going to be ok? is it going to stand on its own or will we see volatile moments? we have seen the structure of the market has changed so much there are days when treasury auctions settled he would get a bit of volatility in those funding spaces. whatwhat claire -- vonnie: clarification has jay powell given the markets? alex: this is the whatever it takes moment. the weight mario draghi said in 2012 we will do whatever it takes to preserve the euro, jerome powell is doing whatever it takes to provide stability to the front end. if there target rate moves outside the band they have set for themselves, the

the action. it kicks off at 10:00 p.m. on thursday night. afternoone that, this in new york, in washington, and of course the evening of london, our special fed coverage. the feday with us. from london, this is bloomberg. ♪ viviana: this is "bloomberg surveillance." i'm viviana hurtado p credit suisse cutting its profit target for this year and next. trade chechens and negative interest rates are clouding the outlook for switzerland's second-largest bank. discredit -- credit suisse signaling this year that the investment bank is set to make a lot. chevron expects in the fourth quarter to write down as much as $11 billion more than half of that coming from appalachia natural gas assets. this after prices slumped in chevron is considering the sale of its shale gas holdings and is keeping its capital budget unchanged. this is the third year in a row that has happened. apple offering a number of eye options withing auctio its new microcomputer. fully loaded, the mac pro will set you back $52,000. that's what -- that does not include the $400 wheels for easily moving it around the office. that is your bloomberg business flash. you so much. francine lacqua and tom k

the first word news in new york city with viviana hurtado. viviana: given the solid growth outlook next year, the fed should hold rates. that is according to two regional fedfor 2020 buses eric rosengren, calls it will positioned. robert kaplan was less upbeat. absent from deck month's world economic forum in davos, prime minister boris johnson. he is branding his administration "the people's government." -- johnson has not always been against going, at least twice as the mayor of london he attempted the form. -- attended the forum. the view of two senior officials, it is a rare situation of failure to event what the administration believes is a threat to european security. the u.s. will now pivot, trying to impose costs on other russian energy projects. global news 24 hours a day, on air and at quicktake by bloomberg, powered by more than 2700 journalists and analysts in i amthan 120 countries, viviana hurtado. this is bloomberg. francine? francine: thank you so much, that the anna. we are getting inflation figures out of the u.k.. remember, this could have an impact on how perspectives. we also hear more and more talk about the governor replacing mark ca

fed ex. it's going to open sharply lower. gave another profit warning. gerri willis is at the new york stock exchange. i will put it to you, this is the amazon effect on fed ex? gerri: yeah, you got it. amazon disrupted all the retailers, right, now they're disrupting logistics. fed ex just can't keep up. they are spending a lot of money trying to compete, getting packages to homeowners' houses, right, and they can't do it. they talked about that, they talked about the shortened holiday shopping season, bad weather, fewer packages. it was just an abysmal quarter on the top line, the bottom line, earnings and revenues, worse yet they said for the fourth time this year, we're not going to make as much money going forward. so that was a really negative for the market and of course, this is as the biggest drag on the dow right now, as you can see the stock down 7%. back to you. stuart: right around christmastime, there they go, down 7.5%. gerri, good stuff. thanks very much. >>> let's switch over and take a look at apple. looking at a series of record highs recently. premarket it's at $280 a share. we've got news. have i got this right, the airpod ear buds sold out everywhere online? susan: these are brand new ones launched in october. they are sold out pretty much e

the new york stock exchange. what did the fed chief just say? >> you know, think of that bell that rings during an actual, a boxing fight? i think i almost heard that bell ring when the fedcision to keep rates unchanged. meaning, get ready for another round of donald trump versus jay powell. another round of bitter tweets from president trump trying to push the fed to continue cutting rates, because donald trump wants to see rates go to zero because that would wind up juicing the economy but the reality is the fed's already cut rates three times this year and it doesn't seem to be in any rush to cut further. it has said, though, that the reason to cut further would have to be for a material change in the economy or maybe we we could see a trade war between the u.s. and china ramp up. meantime, hard to justify. look at economy. it's strong. the jobs market's on fire. consumers continue spending. even gdp is holding its own at 2%. nowhere near president trump's estimation of 4%, what he was targeting. >> i hear the bell. alison kosik, thank you. >>> and more from capitol hill. justice department inspector general debunking conspiracy theories. that for you. >>> also, why t

threatening to get the feds involved in california if they don't do something about homelessness and the crisis and now some cabbies think have its in new york are saying let's get the fedsre setting records. if their governors can't handle the situation, which they should be able to do very easily they must call and politely ask for help, we would be so easy and you know what's interesting is these are both state, obviously very liberal policies, democratic governors, democratic mayors in the key cities like new york, san francisco, la, and the policies haven't worked. pete: absolutely and if you look at the impeachment process, there's a meme going around of all of the democrats at the podium. all of them are from new york. ed: schumer, nadler, pelosi. pete: they are all from new york and california so the president points out yet again a common sense reality, if the problems are so big how about you go back to your own backyard and address that before you start going after. >> lisa: and dan bongino sound ed off on some of these policies blaming liberalism earlier today. >> the numbers have ticked up, due almost exclusively to liberal enclaves like california where hom

fed is talking about a repo facility becoming a more serious conversation. i just do not think they are worried about getting one in place right now. they are just doing what they used to do. the new york fed is in charge, you have to do these operations, gauge needs for the market. they seem to do a good job. i thought it was also cute when he said right now he is more focused on other things than the new repo facility. jay powell probably has a lot on his plate. shery: kathleen hays, thank you. let's bring back jay pelosky. think, is aou better to be focusing on other things rather than the standing repo facility, or are we under price and the risk of more turmoil? jay: i think it is great we asked jay powell that question, not jay pelosky, because he knows a lot more about it. i think it is not something we should be overly concerned about. september was a surprise so a caused upheaval. markets are on it, the fedon it. i think it illustrates a key point from my perspective which is that it is a real example of policymakers providing support to the financial markets, ensuring there is liquidity, ensuring easily -- easy financial conditions. investors can focus on other things. and the opportunity to position in a market broadening out beyond simply big tech into other parts of the world, in terms of ex-u.s. other sectors like cyclical and defensive and value as opposed to growth. this repo issue is not something we need to focus on. shery: but we do have treasury settlements and corporate tax payments. should we be concerned that year-end funding could again be squeezed? jay: i don't think so. my concern is i am i jay powell, i have other things to think about. i think maybe it causes a day or two of uncertainty and rates go up a little bit, but to me that is not an issue. i am concerned that long rates go higher next year but that is because of an inflation scare. shery: let's talk about this