the chairman, allen greenspan is with me.tor greenspan, always a pleasure to have you, thank you for being here. >> a pleasure to be here. >> the week that was, wild swings in the stock market over the u.s. calling china a currency manipulative over this impasse between the u.s. and china and of course come over worries of a slowdown as the federal reserve is lowering interest rates how would you assess what we just saw this week in the stock market? >> i think it is predominantly tariffs. between china and the united states and similar, irreconcilable differences. and that is causing a high degree of general global instability anything is reflecting obviously in the american markets. >> now we have a tariff fight. a lot of people are wondering, worried that tariffs going into the holiday season are going to zap economic growth. we saw you know, 3.1 percent growth in the first quarter, 2.1 percent growth so far in the second quarter. how worried are you that this tariff fight will impact economic growth and how would you char

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alan greenspan this past week said the u.s. dollar can go negative our treasury bonds can go negative however will that destroy the u.s. dollar as a global reserve currency so europe going negative has kind of beggared by neighbor what trump is responding to i think when he sees them being able to cut rates to negative and in terms of that you know titanic people at the top of the you know the part that's not underwater yet they think everything looks fine and is hunky dorey and they're dry right right so something like 94 percent of all the bonds sovereign bonds that are yielding positive rates of return have a positive yield are the u.s. treasury and u.s. corporate debt even corporate debt in europe is negative 94 percent of bonds that have a positive yield are u.s. bonds so that would be just a few degrees from perpendicular so i think i think the u.s. will go to negative interest rates and i think that will be when the entire global economy still zips right down to the bottom of the ocean and you know gold and of course bec

i thought chairman greenspan was really sharp this week. international arbitrage going on in the bond market that is helping to drive long-term treasury yields lower. there is no barrier for treasury yields going below zero. zero has no meaning besides being a certain level. margaret patel, we saw jpmorgan stop the fixed income market, not with a forecast, but with the idea of thinking through how we get to ever low yields. can you frame the possibility of high-yield moving from x percent, down under 4%? margaret: i think they will follow treasury yields down. the path of treasuries are down, that is pretty much in stone. with the economy still growing, people will be attracted to that much higher yield. it is really the only place in 10 were you can get very high-yield. very competitive. tom: i want to deal with this in our third block today. kathy, it so important, what chairman greenspan said, chills retirees. kathy: it is very difficult, has been difficult for almost a decade, for a retiree to invest without a lot of risk and generate a

did you look at alan greenspan's apartment?going to tell you where it is, they have open houses quite often and it's green on the inside, green carpet. maria: great. quick break and then bringing the fields of dreams to life. >> hey, is this heaven? >> no. it's iowa. maria: when you'll see baseball heaven on earth coming up, stay with us. hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. maria: welcome back, per certify veerps pays off, walk on the field with incredible play, jared max with amazing story in sports. jared: good morning, maria, the american dream alive in cleveland for 24-year-old from western arizona name damond, relentless determination to play in nfl was rewarded last night. played 2 years in college, unable to get tryout from major college program, look at him go, 86 yards on punt return touchdown, workout with cleveland browns with miami, aside from

that this federal reserve does not have the ability to emulate what greenspan did in the 1990's.istian stay with -- stays with us. let us take a quick check of what you should be watching this week. speaking at the national press club in washington. disney is kicking off a round of notable earnings. i will not sing the song. would you like me to sing? will sing along with you. i went to see "the lion king recently. has numbers coming out tomorrow and on thursday, we hear from uber. and watch out for a u.k. economic update on friday. the british economy has retracted in the second quarter by analysts' estimates. this is bloomberg. ♪ manus: this is bloomberg daybreak europe. i am manus cranny in dubai. nejra: let us get the bloomberg business flash. united technologies. firm boostedsquare its investment. it decided to sell its united look into thethan takeover by raytheon. saying it lacked strategic sense. apollo is taking on wall street with a massive newspaper loan deal. the private equity firm has agreed to provide debt financing. todayal would bring usa and over 200 other publi

this was under chairman alan greenspan. greenspan was giving the keynote speech.d the fallout from the dot-com bubble. critics saying the fed could have done nothing to prevent it. former -- the future r.b.i. governor gave a speech warning on the risks of the financial system. that will be viewed later as having foreshadowed. in 2007, jackson hole focused on the u.s. housing crisis shortly before the fall of lehman brothers. 2010 ben bernanke used the event .o issue qe2 2014, it was all about the ecb president mario draghi and his own quantitative easing demand. head of that, our exclusive -- shortly after 6:30 p.m. this evening. through theset history lesson with me very patiently. still with us. chris, those were very pressing speeches about what was to come. how important is this week's speech from powell at jackson hole? bei think it is unlikely to on that banner when you do it in 10 years time, but i would not be surprised to see jay powell take an opportunity to say something about what has happened to the yield curve in the last week or two. it would be har

care he actually was of the fed chair under jimmy carter and one of the dragon then old soul alan greenspan byrne bernanke and janet yellen they don't and they did not directly name us president donald trump but they said overall that it's not a good idea either to really. give react on politics from washington that this actually could worsen the situation so even if they did not name donald trump directly it was quite obvious where this letter was addressed to in the posture of u.s. president donald trump has again and again criticized his fed chairman general powell even after he and the federal reserve cut interest rates last week for the 1st time since the financial crisis that still was not good enough for u.s. president on from the fed chairs from the past weighing in on the present and carter there and wall street for us thank you. monetary policy of course is just one front in the fight between the 2 countries that chinese companies are no longer buying agricultural products from the united states after a recent promise to buy more is quote a body blow that's according to an america

by a president of the united states, we know greenspan served from reagan to clinton, he said yes, ied. >> you are correct. you also know that is a b.s. answer to my question. >> no -- >> this is not about private pressure. this is about public attacks and likening him to an auto accurate who is a danger to free society. >> i will agree -- you christine and i will agree that to compare him, powell, our fed chairman, to xi is going a little bit too far. >> a little bit too far. >> little bit. >> a little bit too far? >> but there is no question that powell raised rates too quickly and too high after -- >> that's an economic argument. i argue this all the time. >> i have zero interest rates. >> that doesn't make him an enemy of the state. this is why you shouldn't be smiling. not niger. i love i think. >>er, love having him on the show. i don't understand how you ignore the ferocity of what he is doing. it is not just talk. he acts on it. then the tariffs are going to kick our farmers asss and hurt our markets. you know it. christine, where are you guys on this? where is your positive

, he believed that greenspan cost him the election he never said anything with publicly. this president appointed the chairman and it is beyond strange. >>what sort of message does it say to investors on wall street when you have the president and the fed chair sort of locked in a feud or dispute over interest rate policies? >> it is unnerving. we have seen the stock market fall for four weeks in a row. even though the underlying comment is strong, it is unsettling to have the president criticized in public the chair, again that he appointed, it is strange. >>the president wants the fed to lower interest rates a full percentage point. going for 2.25% down to 1.25%. isn't that a drastic move to take when the economy is not in a recession? >>that is right. if they did that they would be giving up a lot of the power which is their ability to come in and provide liquidity if the economy goes backwards. it seems to be, in my opinion, the president is pinning his reelection hopes on a good economy. he seems to be striking out at any person or event that might impact the economy

would not be a big deal, according to alan greenspan. he said he would not be surprised by the move. facebook has been paying hundreds of contractors to transcribe audio clips from users. it has rattled the employees. where thenot told recordings come from, only to transcribe it. facebook says it will no longer do so. emerging markets in argentina had the largest daily drop since the 2008 financial crisis. argentine sovereign in corporate $12 billion of value on monday. global news, 24 hours a day on air and at tic-toc on twitter, powered by 2700 journalists and analysts in more than 120 countries. matt: thank you. shrank in thenomy three months to june, trade tensions between the u.s. and china could have weighed on its export heavy manufacturing sector. the pressure on politicians here to loosen the fiscal purse strings. germany's output fell 0.1% following a 0.4% expansion in q1. it has gonews how from being a powerhouse to one of its main laggards. joining us to discuss is daniel schaefer, bureau chief, bloomberg editorial. what i th

take a listen to former fed chair alan greenspan. >> every president has insight in how markets worktes should be. >> did you ever get direct letters or conversations with the occupant of the oval office? directly on that issue? >> all the time. >> former president bush said in 1998 that he blames federal reserve chairman alan greenspan for his 1992 defeat. jimmy carter, 1980 said the federal reserve was making the wrong choice. richard nixon had many times pressured the federal reserve chairman arthur burns to keep rates low, lyndon johnson according to several accounts actually push the federal reserve chairman up against a wall over raising interest rates at the wrong time. if this has historical preceden precedent. >> the critics of president trump invariably decide history started a year and a half for two years ago. almost everything they criticize, there is precedent, this is a source of great frustration because it's the one tool in the toolbox, they don't have autonomous control over. they have to rely on decision-making, they can't do themselves. i'm not surprised that he's

but i don't think that's the way it should be and i think in many ways, alan greenspan, by trying torecessions, a noble endeavor, ended up with a notion that the cleansing process has been removed from the system. if you look at all of the policies and all the negative rates and all the strangeness that's gone on inversion, subversions, against the normal financial rules of the road, what you the end u with is toxicity that keeps building and building. so the equity markets are right to be a bit frightened this toxicity has never been purged from the system and a recession would do that. but a recession also could pull the legs out of the stock market, because maybe it's built on some of this toxicity and how it was addressed, the policies that tried to address it today, germany says, don't look for any physical stimulus. it doesn't really make sense, but it is the cards that everybody is dealt and i certainly hope that in jackson hole, they start to think outside the box a bit, because it's really, really easy to make everything pyrite, but in the end, fool's gold isn't the real dea

jon: -- paul volcker, ben bernanke and alan greenspan, talking about fed independence.hy you wrote that and what you said. >> well, we're concerned that fed independence is under threat, and all of us feel very strongly that in terms of the u.s. economy performing well and the fed being able to play the most constructive possible role in end suring that that -- in insuring that that the, it's very important that the fed be able to make decisions in an independent way that's not color by politics or political pressure. and all of us have had the experience of being able to make decisions in an environment where sometimes one has to make as a fed chair decisions that are the unpopular or difficult in the best interest of the economy. congress has assigned the fed two very important goals; maximum employment and low inflation or price stability. all four of us have done our very best to try to pursue those objectives, and we've been able to do so and gain the confidence of markets in the process by explaining what we're doing but also a making the best decisions we can bas

this was under chairman alan greenspan.rward more than a decade and greenspan was again giving a jackson hole speech, but on the fallout from the dot-com bubble. he used the event to hit back at critics saying the fed could have done nothing to prevent it. in 2005, the future r.b.i. governor gave a speech warning on rent within the financial system. that would be viewed as having the crisis. 2007, the housing crisis shortly below -- before the collapse of lehman brothers. ben bernanke use the event to introduce the world to qe two. the fed announced the second round of quantitative easing. 2014 was all about president mario draghi and his own quantitative easing plan. it was dubbed by many the draghi show. still with us.is we are looking forward to this jackson hole conference, but at a time when the fed seems a little bit confused. points, a fairly healthy u.s. economy. >> absolutely. they were talking about rate hikes for 2019. the expectation is they will cut more. a lot of the data is strong as you say. weak.dustrial se

janet yellen, ben bernanke, alan greenspan, and paul volcker wrote in the washington journal that theindependently and in the best interest of the economy. ofderique carrier, head investment strategy at rbc wealth management is still with us. president trump does not really need to attack powell and demand interest rate cuts if he just plows on with the trade tensions. that seems to be resulting in lower interest rates already -- anyway. thatrique: that is pushing putting some pressure directly -- that is putting some pressure directly. .75% of interest decline between now and -- between last week and the end of the year. matt: so do you expect the fed acknowledge that they are worried about global growth or continue to acknowledge they are worried about global growth and not still just focused on employment and price increases? frederique: so the slowdown in global growth has been acknowledged. we have increases in tensions between china and the u.s.. there is -- the markets see jerome powell as being hawkish. nine press at his conferences he has had, in seven out of nine of them, on

what we are used to from mario draghi, janet yellen, alan greenspan, they really get the committee on a message, or at least come in with we are easing conditions, that is the thrust of the committee's move today. bestat way, you have the chance of easing financial conditions. if you come in and talk about maybe we will raise rates before confuses things.you go back and the reason i say that, his approach is, i'll just a completely transparent. in a way he reflected with the committee told us in june which is half of them do not want to cut at all. and they are getting dragged, kicking and screaming. what we saw in the fourth quarter of last year is the fed will be hiking right, but he said absolutely not. this is an unsustainable gap between yields and u.s. yields. it will be destabilizing. you are going to have to get on board with the global program. oksana: the issue here is that the market refuses to be weaned off of the central bank banking. the past couple days, the fed says we don't need anything other than an insurance cut, and the market hates it. the following day we have a

belowand ere other presidents said we'll let the fed decideed bas on economic analysis what and whenlan greenspan over the fed president went along with what they said may be privately grumbling about it and put publicly supporting fed reserve. is this a question in nfidence of fed or j a new way ofnt a presiderying to push back and help make his voting block aware of the forces he's w dealingith. >> donald trump is running for reelection next year and it's no secret the economy and economy being strong will be at center piece of argument for reelectiok blame if economy faulters and the f say convene target jay powe chairman is mild mann well regarded businessman, lawyer, has spent many yea at the fed. he will not punch back against donald trump. it's a perfect punching b for this president who wants to lash out at any heze. >> if she not reelect the they'll be serious consequences for the economy. when you look at what we're talking about up verityed yield market people having more confidence in next two years there is reason to believe that even if donald trump does not get reelected this econo

so they have to come of the solution according to greenspan they go and sing. moonlight the city doesn't have a stake or you know and then it's missing an urban stake or the bases and a loft a lot of discussions. are going to project back to the urban design project and the object of this when you go to the project is through people who are living in delhi for 203040 years and big name wonders when you go to them experience showed them the many systems i was in that supported them and run them and transform them into . the biodiversity park is one of the biggest attractions of that he's going to approach it encompasses about $10000.00 hectares. for young. scientist supply why does the ball when he started his work here in the land along the banks was bad is it actually it is simply somebody asked me not to buy during election and it's only in many fist or no political party has put the environment as a priority you have asked broader or your boss hospital you have asked metro government has given you everything but you have not it was never ever asked that you

to come of the solution according to delhi greenspan and go with saying. new life the city doesn't have a state or you know and then is missing an urban state for the places and law for a lot of discussions we. put together a company project actually called the urban eco tourism project and the object of this when you go to the project is to take people who are living in l.a. for 203040 years and then they wonder when you could do them experience showed them the very systems i was in that supported them and convert them and transform them into. the human of biodiversity park is one of the biggest attractions of delhi's i could to approach it in compass is about 10000 hectares. for young. scientist supply why does the fall when he started his work here in the land along the banks was bad. he simply somebody asked me that why during election and actually in many fist oh no political party has put the environment as a priority you have asked broader or your boss hospital you have asked metro government has given you everything but you have not miller ever ask

so they have to come of the solution according to greenspan and go in saying. new life the city doesn't have a state or you know and then it's missing in one state corner cases and offer a lot of discussions. we're going to project back to the urban design project and the object of this when you go to the project is through big people who are living in delhi for 203040 years and big name one is when you go to them experience showed them the many systems i was in that supported them and can run them and transform them into. the biodiversity park is one of the biggest attractions of that he's going to approach it in compass is about $10000.00 hectares. for young. scientist support why does the ball when he started his work here in the land along the yellow not in the banks was bad news about me recently somebody asked me that. during the election and actually in many fist oh no political party has put the environment as a priority you have broader or your boss hospital you have lost micro government has given you everything but you have not miller that you need.