that is the view of charles goodhart.s is bloomberg. ♪ francine: are we seeing the biggest bond double in recent memory? we should be very scared says charles goodhart, former member of the boe. charles and simon french, i want to show you our chart of the hour. this is it. $13.6 trillion treasury market. here you can see the spread between five-year and 30 year bonds. for nine straight days of traders gaining confidence, the federal reserve will keep interest rates on hold. charles, and a bubble. -- in a bubble. we have known this. does the bond bubble burst? charles: if i could time this sort of thing, i would not be here. i would be sitting in a yacht in the mediterranean. nobody can time these. francine: you don't have a yacht? i am disappointed. [laughter] francine: does it have to do with the fed does? charles: it has been pushed up. it is been pushed up by central banks buying every bond they can find. they have been more than covering the deficit. there is a portion of the federal government bonds the end than buy

the event raises money for programs promoting goodhart health. >>> the oakland eighth made history as they swept the defending world series champions kansas city royals . was another monster offensive output for the a's highlighted by this three run home run by rookie ryon healy. the ball went an estimated 480 feet. that is one of the longest projected home runs of the season. it was one of his three hits on the night. the a's 114-5. -- the a's win the game 14-5. >> coming up another sign the raiders may be leaving town. in 20 minutes the latest development out of las vegas and what the oakland mayor is pledging to do and not to do. >>> we are still seeing a commute that is mostly good. this is a live look at highway 24 westbound. driving between walnut creek and oakland. light traffic. >>> well the tale of two different forecasts. one for the coast in one in land. a big difference in the temperatures. ♪ you didn't listen to your parents. you ignored every piece of advice. you failed over, and over, and over. and look where it got you. time to shine. orbit. welcome back to mornings on

here is professor charles goodhart. >> i think the market realizes there is a need for reconsiderationant development over the next weeks will not be the u.k. or the u.s., but in japan, where the bank of japan is doing a complete reconsideration, a conference of reconsideration of the monetary policy. mark: we have another sign of the british consumer confidence stating resilient in the wake of the brexit. sales were down 2/10 of a percent. july's number was revised upwards to 1.8%. that is the strongest sales gain for july in 14 years. the british-based information provider in former is expanding its presence in the u.s. it agreed to buy an american company which publishes trait information. the price, $1.6 billion. apple is not disclosing how many iphone 7's it hassle, but it's as the iphone 7 plus model has sold out. available for walk-in customers in a number of countries tomorrow. for our quick take where we provide context and background on issues of interest. with tiger woods's golf they imploded in 2009, the entire sport got stuck in the rough. the question is, will be sport --

charles goodhart and david ricardo and other people will tell you that if you do have a capital problem he keeps getting worse. before the financial institution collapse or declared bankruptcy for lack of capital people tried to pull their money out and when that happens you will have a panic and the panic is not only going to hit the bank that maybe was truly undercapitalized on the verge of insolvency but that can't -- panic is going to hit all the other banks the system regardless of whether they are well capitalists are not. it's going to be indiscriminate and it's going to create a crisis. the crisis requires immediate response and the immediate response that is necessary to fight this contagion were this panic is last resort facility or at the credit support facility and they pretty much have to be provided by the fed. hal scott's book comes in and says if you look at the dodd-frank act what you are going to find it's not just imposing regulations on regulations for regulation sake that there's a misguided area behind it and the misguided theory behind it is that the fed's lender

and deutsche bank chief economist charles goodhart at the london school of economics. 9:00 a.m.ce waterhouse cooper joins us. thisank of england views, is bloomberg. ♪ manus: welcome back. i am manus cranny, live at the bank of england. anna: i am anna edwards. time in london is 6:20 in the morning. let us get the bloomberg business flash. here is david ingles. david: thanks, anna. marco marelli named ceo, while massimino resigned. he joined bank of america, and is stepping down this month, the move comes as italy's third-largest bank is struggling to avoid a safe bailout. bayer and monsanto have been quick to reassure investors about the mergers, the comments coming after the company believes the $66 billion deal, the biggest and the largest ever of foreign takeover by foreign german company, bayer's ceo says they are taking steps to ensure that is the go-ahead. >> regulatory challenges have been discussed very, very intensively as part of our negotiations, but beyond, we have both had very large teams of our own people, antitrust counsel looking at it. they look at a jointly.