we have been talking about how jay powell is the janet 2.0, what is next for powell and the feds?one thing for sure, he has been confirmed as chair of the federal reserve, he will sit in that seat for the next four years, and broad, bipartisan vote of 85-12 to pass this confirmation and make it an official -- make it official, jay powell be taking over -- taking over. he as -- is seen as supportive of a gradual rate hike pass. someone dovish as our bloomberg ego team points out in the sea, noting that there may be more slack in the labor markets, more room to run as this falls below 4%, suggesting he will not be going too fast to pull the trigger on rate hikes, interesting that this confirmation among is very broad set of leadership changes, who will be the next president of the new york. went throughiend his confirmation hearing, he faced tough really by democrats, he is nominated to be on the board of governors. that you havesaid it wrong. you are wrong mr. goodfriend. much wrong with you. he is onboard now, he says the fed is on the right path. they will head to that 2% inflati

talking aboutn this transition for so long that now it is upon us with janet yellen and jay powell. commentary is that is going to be a smooth transition, but do you think the markets are going to try to test powell in the first few days or weeks to see if he is going to be able to maintain that stability that we have seen in the last two years? first let me say about jay powell, he is an extremely confident guy and he is well cared for the job. the idea that the market might test a new chair, i don't find plausible. committed to a continuation of the gradual rate rise policy that the committee has been pursuing for quite some time. think they want to keep options open and the language in today's statement was minimalist. the language changes were very few, and that provides flexibility for jay powell to get comfortable in the new position. from a policy point of view, flexibility to respond to what the data seems to be indicating. i think this is a time to be and not betable overly concerned about the policy. yvonne: what do you think is going to be jay powell's priorities in the f

as jay powell comes in, this is all about janet yellen leaving. given some space to explain how she feels about the economy and she will go off into a different realm. i don't think we get anything from the fed. i am pursley never particularly interested in the numbers for nonfarm payrolls. it will be very volatile. lisa: what is the biggest economic indicator, rachel, that you are looking at that affects more broadly the u.s. credit and frankly emerging markets? because the dollar has been the story of the day, of the week. what could make it go stronger and actually disrupt a lot of the consensus trades right now? rachel: a single indicator, i would cheat a little bit and say the financial conditions indicator. it combines a bunch of things. i think the signals we have gone back to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. but as we go into the back half of the year watching volatility, which has begun to move off the floor. if it does more so, it will decompress assets.

say the odds of something unusual happening is above 50%. >> who'd be the best vice chair to help jay powell three potential scenarios? >> i think probably someone who has spent his or her career studying monetary policy episodes of the past. jay has obviously been an important member of the committee over the last five years and has the experience of the current circumstances and he knows how the institution works. i suspect what many people are thinking is, complementing his someone who has been a bit more of an academic or quasi-academic and has drawn on things that are not at recent bit -- vintage that would be helpful in what is going on in david: daniel will be staying with us. be sure to tune in, special report, the fed david: daniel we staying with us. decides, eastern time today. coming up, we will hear from steve demetrio. of the morning, this supermoon overd l.a., unbelievable orange color. take a look. the first we will have seen of this in about 35 years. this is bloomberg. ♪ david: still with us, daniel. when you're on the fed in your responsible to -- redoing our --ulatory a l

if inflation remains and starts moving towards the target, we'll learn things is it a target for jay powell, a ceiling or an average. along with jason and others, i suppose he will accommodate, and it's important for precisely the reason jason said. we need this to reach lower pay work workers in terms of wage growth >> hold on we have not -- we've had a patient gentleman, mr. brill, who has been patiently waiting without nary a word. >> a couple of quick points. one on the retail number which is a bit disappointing from a couple of innocents minutes ago. we had an early thanksgiving, and i think that might have pulled some of the jobs into november we saw an upward revision, in fact, in november's number

she also doesn't want to bind jay powell in the future with a decision today.en up to him and leave their options open, and say as little as possible. scarlet: is there a potential for surprise? >> i don't think so. i grew up mike. one of the reasons the not going to hike today is that they hiked in december and he wants to go slow and he want to go measured. in order to do that at the pace they want to go with three hikes this year, if they hike in january that means that if there is a flip in the data they can't take that back in march. is the ideaof this of measure. we have chairman greenspan coming up later, a great honor to have him with us today on this last day for fed chair yellen. mike, tell us what measured actually needs? >> he's the one that said you want to raise rates slowly and inflation is flat as possible. not below 2% but you don't want a lot of volatility. that was the legacy of the greenspan years and some say it led to the financial crisis because those predictable rates were too low for too long. under jay powell we are probably going to h

as to what he might do that could be different from the previous chair janet yellen well listen jay powell has deep experience in the financial markets and he understands the banking system as well and he is going to be very aware more aware than pure academics the pure academics who preceded him that there is a lot of froth in the financial markets and i think that we'll see the financial person in jay powell come out much more in twenty eighteen and again this is going to be the first non ph d. in economics the first non academic to run the fed for thirty years i think people who say that powell is a yellen clone are in for a surprise because i don't buy that about him you know he's an attorney right. he's an attorney yes but his because davis' background has been in private equity yeah right ok and before we let you go one other area i want to talk about it it's about the world around us so let's talk about the other central banks around the world the big ones bank of england european central bank bank of japan what are they doing now on rates and quantitative easing and actually could

janet yellen prepares to step aside as she hands the baton to jay powell, what to expect from her finaleeting at the helm of the central bank. for tech earnings with facebook kicking things off later today. we will discuss what investors are watching. vonnie: all that straight to come. julie hyman is with us halfway into the trading day. after the bloodbath yesterday, may be an overstatement, how were earnings? >> relative basis, it was a bloodbath because of tepid action over the past year. the rebound today is becoming ever more tepid. fellh care stocks, which sharply yesterday on the news that amazon, jpmorgan, and berkshire hathaway were teaming up on a health insurance venture for their employees are the weakest group again today even though some health insurers are bouncing. aat is why the s&p is only of 10th of 1% while the dow is outperforming. the nasdaq up a 10th of 1%. this is a amid strong optimism on the part of consumers in the united states. excuse me. this is consumer confidence, the reading of optimism that stocks will rise over the next 12 months. this is a record high

jay powell is up to the task. i was proud to confirm him yesterday. the senate advanced the nomination of another highly call fied nomee, alex -- qualified nominee, alex azar. mr. azar discussed his intention to confront head-on the opioid crisis that is hurting so many families across the country, including in my home state of kentucky. he made clear that he will place an important priority on education and enforcement to halt the advance of the scourge. but he recognizes that we need effective, compassionate treatment options for those seeking recovery. for all americans he will work to expand access to high-quality affordable health care options. his distinguished record including prior h.h.s. service and private sector work shows he is the right man for the job. it is vital that this department be headed by a leader with mr. azar's reputation. he will oversee $1.13 trillion in department depending, supervising critical research and administering and reforming programs that touch millions of american lives, such as medicare and medicaid. i look for

as jay powell comes in, this is all about janet yellen leaving.ve some feelings about the economy and go up into a different realm. i personally never particularly am interested in the rules. it will be very volatile. lisa: what is the biggest economic indicator? it affects more broadly the u.s. credit and frankly emerging markets. the dollar has been the story of the day, of the week. what could make it go stronger and disrupt a lot of the consensus trades right now? indicator, igle would she consider financial indications indicator. it combines a bunch of things. the signals we have gone to as loose financial conditions as we have seen since 2014. we think this means party on for the near part of the year. in the back half watching volatility, which has begun to move off the floor. if it does more so, it will be compressed or scattered. lisa: it is time for the final rapid fire. we ask questions to each of you. you have to answer really short answers. the first one is what is more likely to selloff in the next nine months, u.s. high-yield or inv

it is the jay powell fed versus -- i don't think it is a jay powell fed versus a janet yellen said, itoader than that. whether he is or isn't. i think that will be really important for ongoing sentiments toward the u.s. dollar. betty: i want to pull up the chart, it is the chart of the u.s. dollar and these declines. g #btv 6275. there is that great inflation debate. there is a sense of what can the fed tolerate here or not? i am curious, what else do you think is priced into this grim scenario in the dollar? in the face of rising interest rates? ray: go back to last year, most of us thought last year, the u.s. dollar would continue the rally that was set in motion by trump's election win. we spent the first nine months of last year basically unwinding that, even though the fed delivered exactly what it said it was going to deliver at the beginning of the year, against market expectations for a less aggressive fed. in that sense, to some extent, there was a trump discount that existed last year as skepticism about whether his policy agenda was going to see the light of day. with tax re

julie: coming up, we look at a year ahead in fixed income as investors prepare for a new fed chair, jay powelland tighten your seatbelts as the yield curve reaches its flattest levels since 2007. it's the last trading week of the year. as the year wraps up, we review the year that was 2017. we start with the big issue, or should i say the big issues of 2017. >> i think the fed is itching, wanting to raise rates for some time. >> i still think the reflation trade is there, but you are going to have some volatility around that. >> i think it has had an air pocket, but the reflation trade is still in place. >> we are pleased with what going on in the unemployment picture. >> job creation remains solid. >> the jobs number is a good number. >> i see the labor market as continuing to heal. >> there is room to maneuver, but we are a long way from full employment, and wage growth is a long way from where it would be if we were close to it. >> people have confidence this administration can not only get the big themes out there, but can deliver on them. >> if he wants to make everybody happy, including

erik: couldn't they be trying to job on the incoming fed chair jay powell? saying a weak dollar is good for america, and that might be it is susceptible to any of this. with that does not take into account the inflationary pressures building into the u.s. economy. michael: i do not know his motives for saying what he said, but if the dollar remains competitive for the right reasoning, and makes the u.s. more competitive. erik: do you worry about inflation? michael: you always have to worry about it. qe, and that is a never done before science fair project around massive amounts of liquidity. erik: and you do not mean elementary thinking. michael: it has never been done, it has never been done on this scale, and we do not know what paper really feels like there is a camp that says asset prices go up, take money out, asset prices come down. we think our central banks will cycle,itted to the long are invested in qe, and will not and that liquidity out causes ruptured in the market, but we have to watch it play forward. people would argue, and rightfully so, tha

this may be the status quo, having john williams at the head alongside jay powell, taking the head ofacing janet yellen. we will continue to look at this and get you more details as soon as it comes through. coming up, china accelerate's the second engine room. growth is speeding up since 2010. a look at the impact on markets and economies next. this is bloomberg. ♪ a look at the betty: good morning. this is "bloomberg daybreak: asia." yvonne: the rate of economic growth in china sped up last year for the first time since 2010. the expansion of 6.9% exceeding economist estimates. our next guest says you can't take the figures at face value. joining us from singapore is chinese economist at capital economist asia. thanks so much for joining us. these numbers may look rosier than you think, according to the numbers you are crunching. what is missing in this picture? >> the reality is that the real growth rates in china have been implausibly stable over the past four or five years. the statistics bureau saying growth has barely changed during that period. if you look anywhere else, inclu

the ftse 100 down 0.4% >>> jay powell officially confirmed by the senate to run the fed. is will make him the 16th chairman of the federal reserve. powell won't assume his duties until janet yellen's term expires february 3rd >>> to the world economic forum in davos, switzerland. gary cohn outlining the goals of president trump's trip >> america first is not america alone. i said in my remarks when we grow, the world grows. when the world grows, we grow. we're part of a world economy. the president believes that. he's going to talk to world leaders about making sure we all respect each other, we all abide by the laws, we all have free, fair, open, reciprocal trade >>> among the headlines out of davos, steven mnuchin told a news conference a weaker dollar is good for the united states. he says america is open for business and investment and the government is committed to growth of 3% or higher commerce secretary wilbur ross is also in davos he said nafta talks are reopening. he will join "squawk box" live at 8:30 a.m. eastern today among an amazing slew of guests. joining u

ear >> is it fair to think jay powell has a much tougher job than janet yellen had? she carried this through it's been beautiful, but she has not seen a big increase in rates, that's the tricky way of trying to dance your way out of the last ten years of policy >> possible, but people said the same thing when she came in for bernanke business cycles don't die of old age. if this economy keeps growing reasonably well, then it will look like jay powell got the best of all worlds >> sam what do you tell people to do? if you think the market is ahead of itself here, but you think good things are still on the horizon, what would you advise people to do now >> focus on what is your investment strategy, because at cfra, we have 11 different portfolios, and 8 of them outperformed their benchmark last year. whether you're looking for total return, whether you're looking for momentum, there are opportunities out there that are populated by the cfra equity analysts my feeling is, y there are still opportunities out there. but the market as a whole, i would say don't get caught

is jay powell do you think of that same mind set especially -- >> well let me say that. >> it's finally gotten c confirmed. >> took two nomination frs the committee. great guy. sxwl the pressure he will feel if any, to keep rates low because of the president's liking for this continued rally in the stock market that he likes to point out all the time. the push and pull of the central banker versus trying to please the president who appointed you. >> well, i can't speak for jay pouilwell and what he's intendig to do. remember, banks control the vote the governor's 5-3 the new york fed's a critical position here. if you listen to bill dudley, he's become much more bullish or hawkish and he's concerned, but i would say this it really depends on how much the economy heats up they're getting closer and closers to the 2% intermediate term target. the new york fed numbers are way above that now >> diamond said 4% could happen. >> what you have to realize is jay powell understands capital markets. his previous two successors, brilliant, wonderful people, janet and ben, didn't come from that bac

paul: jay powell. 85-12 to have him succeed janet yellen.s confirmation comes as a broader leadership change. the trump administration is still looking at candidates. president bill dudley quits in the coming months. attorney general jeff sessions has been interviewed with special counsel robert mueller. making him the most senior official question so far. includes investigation whether or not president trump's investigation colluded with russia. the democrats offered to give resident trump more money than he wanted, is now off the table. thek schumer rescinded offer. border security is essential in order to protect undocumented migrants romp deportation. president trump tweeted that everyone will still be trying to reach a deal. the bank of japan has washed speculation that tightening is on the agenda. the bank is in no condition to consider changing current policy given that inflation remains a long way from the 2% target. the governor says nothing will change, in the foreseeable future. global news, 24 hours a day, powered by more than 27

i think the big news is going to be jay powell's baptism through economic fire. >> i think that's right's something to think about how he takes all this stuff you're going to get some stimulus from the tax cut, though, which, by the way, you maybe have jared say it's a kanesian stimulus, and thin maybe you'll get the supply side that will get capital spending that will increase productivity, and that's where the claim may or may not be. >> there are some pigs flying around you what did you say about rick? what did you just say? you agree with what rick just said rick is this 2018, is this a resolution >> only the shadow knows >> do you want to change -- maybe you want to change your opinion. i heard jared at the top jared sounded like a republican. >> i did not >> great jobs report >> i sounded like a cansian. >> he resembled that >>. >> look, if you plunk i think 180 billion something like that is the fiscal impulse from the tax cut in 2018. i think it's even larger in 2019 >> this is a testable hypothesis let's see what happens versus the consumer spending numbers. >> is it just cansi

i hope jay powell pays attention to it.e understands the markets he really understands the automobile industry. he was the founder of the industrial group when he was at carlisle i hope he has seen that the automobile sector looks like it's going to fall the automobile sector was in a year over year recession in september before harvey made landfall it looks like it's going back there. fresh data from j.d. power shows the 33rd consecutive month of increasing incentives. the consumer is running out of steam. the fed has to look through whether or not this is a temporary spurt in the first half of the year or whether it's sustainable that they can go for the four rate hikes. >> steve, tie it all together for us >> a little hard when i don't understand what danielle is talking about when it comes to the consumer consumer spending has been doing pretty good. people about to get raises. >> talking about car sales. >> steve, a lot of it's debt -- >> car sales have been solid at $17.3 million. it's down a little bit from 17.5. >>

how does jay powell react to this does he let the economy run?ow does he react to the incoming stimulus that's out there from the tax cuts? either call it keynesian stimulus or supply side stimulus from the corporate tax cuts. we could get a bit of both actually, and the question is does jay powell think three is okay for this year you can see from the possibilities the market just getting around to kind of thinking about three it's got two priced in, thinking about the third, and the bet, the second favorite on the fed this year is for four rate hikes, not three >> you know, steve, in terms of the impact on the economy, it's sort of easier to put a number on the impact on profits, but is it harder to put a number on impact on cap-x and capital expenditures that seems like a back end, back half of the year sort of story in terms of the impact on the fed, they might not have any sort of data in their hands until way late in the year, right? >> i think that's right. in terms of whether or not we're going to get, i think it's worth explaining the dy

it all adds up, leading economist predict, to a wait and see approach from incoming fed chairman jay powell and monetary policymakers when it comes to tracking interest scares anyone and makes them want a hike any farther faster than they otherwise would. they'll err on the side of caution. >> right now the fed doesn't mind if inflation runs a little bit hotter and people get wage n a s. led the way in job gains in december, adding 30,000 and 25,000 new workers respectively. the unemployment rate for african-amers rea a record low of 6.8% last month, down a full percentage point over the last 12 months. >> 87 months of continuous job growth is an outstanding trend. and to see the african-american unemployment rate down below 7 where it had been in the 15% range is very good news. other the biggest job losses occurred among retailers, cutting 6,700 for all of 2017. will the pace of hiring continue to slow down as the labor market nears full employment? or could job growth get a boost from the business-friendly $1.5 trillion tax cut package signed into law by president trump just last month?

his term is up on saturday and jay powell will be sworn in on sunday or monday and she will go quietlyckee has an exceptionally important interview today with the minister of canada. please stay with us. this is bloomberg. ♪ taylor: this is "bloomberg surveillance." in korea, samsung electronics has approved a 50 to one stock split. earnings inrecord the last three months of the year. samsung reported strong demand for memory chips and the high-end displays used in the iphone tech. sweden's h&m reported the biggest drop in profits in six years. putting more pressure on the ceo of the world's number two fashion chain. he is trying to turn around h&m after the recent struggles. and blackstone's europe has agreed to the biggest buyout in a decade. a firm will buy a majority stake in the risk unit. the parent of bloomberg news competes with thomson reuters in providing news and information to the financial industry. that is the bloomberg business flash. feldstein is with to and we're going to talk him about the elephant in the room and his exceptional expertise on deficit and debt dynamics

federal reserve and its monetary policy well we'll see a lot of that coming up i know and we have jay powell the new chair of the federal reserve who will be presiding over his first meeting of the federal open markets committee on january thirtieth and thirty first so we'll see if he has any changes to what's going on but we really want to thank you dr mark barton senior fellow at the me she's institute thank you so much for joining us happy new year to you we'll see you again. now let's take a little trip around the world and look at employment first we go to david miller for more on the americas david a bar thanks for having me and according to financial reports canada added seventy nine thousand jobs in december that pushed the jobless rates to the lowest level since one thousand nine hundred seventy six two thousand and seventeen was canada's best year for job since two thousand and two with over four hundred thousand jobs added by reason of those three biggest provinces all the largest gains ontario british columbia and q back all helped fuel this job increase and looking at the bigger

run by outgoing chair janet yellen who is completing her four year term sell the reserve governor jay powell was selected by president trump to replace yellen and the u.s. senate has confirmed him to be the new chair there are a lot of questions about what it will take not only now but this year and going forward by the federal reserve regard to the economy plus other central barks are charting their own course while they stick to their plans admits some signs that an economic correction is on the horizon we'll get into it all the more with danielle de martino booth as the f o m c wraps up. and it has been just over a year into the trumpet ministration time now for an economic report card look at year one here with a closer look at our team's nicholas o'donovan. donald trump came into office under the promise of puts in america first on every front and obviously the economy was and still is an important part of that message and we're going to start spending here we're going to start spending. and with that being said we're going to protect our country over the past year the stock market has

run by outgoing chair janet yellen who is completing her four year term federal reserve governor jay powell was selected by president trump to replace yellen and the u.s. senate has confirmed him to be the new chair there are a lot of questions about what it will take not only now but this year and going forward by the federal reserve with regard to the economy plus other central parts are charting their own course while they stick to their plans admits some signs that an economic correction is on the horizon we'll get into it all to morrow with danielle de martino booth at the f o m c wraps up. and it has been just over a year into the trumpet ministration time now for an economic report card look at year one here with a closer look as our team is nicholas o'donovan. donald trump came into office under the promise of puts in america first on every front and obviously the economy was and still is an important part of that message and we're going to start spending here we're going to start spending. and with that being said we're going to protect our country over the past year the stock mark

federal reserve and its monetary policy well we'll see a lot of that coming up i know and we have jay powell the new chair of the federal reserve who will be presiding over his first meeting of the federal open markets committee on january thirtieth and thirty first so we'll see if he has any changes to what's going on but we really want to thank you dr mark thorton senior fellow at the me she's institute thank you so much for joining us happy new year to you we'll see you again. now let's take a little trip around the world and look at employment first we go to david miller for more on the americas david a bar thanks for having me and according to financial reports canada added seventy nine thousand jobs in december that pushed the jobless rates to the lowest level since one thousand nine hundred seventy six two thousand and seventeen was canada's best year for job since two thousand and two with over four hundred thousand jobs added by reason of those three biggest provinces all the largest gains ontario british columbia and q back all helped fuel this job increase and looking at the bigge

reporter: this is really interesting, because janet yellen and jay powell and all the fomc members havearefully avoided talking about tax reform, because they don't want to be perceived to be political. now you have the first full discussion in this meeting about tax reform. they came up being very positive that it will boost the economy, boost consumer spending. it could raise investment andding and productivity, in fact, you could bring back some people into the workforce. veryn all, it was a positive reading on what tax reform could mean for the economy. betty: steve, thank you so much. steve matthews of bloomberg. much more ahead. spotify months -- wants to go public on the new york stock exchange, but it is not willing to raise money. let's take a look at an unusual pan -- planned that may pave the way for companies like airbnb. yvonne: that will be later on. just ahead, the bank of singapore gives us its stake on the fomc december minutes and how asia could be affected. this is bloomberg. ♪ yvonne: this is "bloomberg daybreak: asia." i'm yvonne man in hong kong. betty: i'm betty l

he thinks jay powell is going to be very serious about studying this issue now, studying new regime'sr to 1.5 years. a further interesting question is what does this in front of the global central banks? governor kuroda was asked many times -- i think it is time to drop the 2% target? "o no, we can possibly do that." i wonder to what extent is it going to reverberate to central banks around the world? betty: it absolutely what. kathleen, thank you so much. kathleen hays, our policy editor. our next guest has a very bullish view of 2018 and expect asia and emerging markets to open for joining us now is a audible core -- our guest. i know you say they are going to double in the next few years. what would it mean for asia at large, and even for your own outlook if we see more fed officials turn more dovish? >> hi, betty. yeta i thinkh it is clear what the impact is going to be,. asia likes a lower interest rate regime. we certainly don't like an inverted yield curve. i don't think any market likes that, especially in asia. if this new moved to dovishness fewer than theet market is expect

and ahead of janet yellen's last fed meeting, we discussed her legacy and the incoming fed chair jay powell

run by outgoing chair janet yellen who is completing her four year term federal reserve governor jay powell was selected by president trump to replace yellen and the u.s. senate has confirmed him to be the new chair there are a lot of questions about what it will take not only now but this year and going forward by the federal reserve and with regard to the economy plus other central barks are charting their own course while they stick to their plans admits some signs that an economic correction is on. on the horizon we'll get into it all tomorrow with danielle de martino booth at the f o m c wraps up. and it has been just over a year into the trump administration time now for an economic report card look at year one here with a closer look as our team is nicholas o'donovan. donald trump came into office under the promise of puts in america first on every front and obviously the economy was and still is an important part of that message and we're going to start spending here we're going to start spending. and with that being said we're going to protect our country over the past year the sto

headlines, the boj governor quashes speculation about imminent normalization and all change at the fed, jay powell

stays strong and jay powell moves ahead faster than markets expect.s for more from david fernandez. this is bloomberg. stay with us. ♪ yvonne: this is "bloomberg markets: asia." let's continue our conversation with david fernandez, barclays chief asia-pacific economist. we were tall he -- talking about the dollar weakness. there is more focus on the rupee so far. strongest inthe more than 2.5 years. analysts are exercising some sides of caution. caution.igns of what do you make of these elevated energy prices? how does this complicate the inflation picture? david: you are right to focus on india and the potential impact of higher oil. asia generally is a loser when oil prices are higher. i would focus more on the current account and the impact of higher oil and the oil deficit. india is one of the bigger ones relative to the size of the economy. that could be a negative factor against the currency. i would add another challenge, the bullish rupee call. the bond market has been underperforming. despite these headwinds, if you will, of higher oil, conce

and ahead of janet yellen's last fed meeting, we discussed her legacy and the incoming fed chair jay powell

are you expecting jay powell to move faster than expected given the background in this environment?yes i am. i suspect the fed raising rates or at least continue on the path where they are on, especially given financial conditions overall which, remember, that was something the fed president deadly worked on. was instrumental like goldman sachs thinking about financial conditions. with are accommodated even the fed raising. i expect them to stay on that pathway which i think will cause some vote kill -- volatility in the market overall. vonnie: great to talk to you. jason brady, the president and ceo of thornburg investment. shery ahn: time for a look at the biggest stories in the news right now at monsanto's of on artificial intelligence to make seeds. their chief scientist says the key learning is to help refine, making the process faster and cheaper. it's a technology singer -- similar to face recognition would help identify plant and crop diseases. the gender pay gap in retail is widening. data shows workers at men's stores earned 56% more per hour than in women's apparel as of

janet yellen and jay powell said, maybe we need to look at our models of inflation dynamics.omething would lead the fed to change the way it looks and making policy? used a graph yesterday about the disappearing phillips curve. this has been going toward the zeros ever since 1980. i think there is widespread agreement about the appearance of this.the phillips curve is very flat and there might be no relationship at all at this point. the president of the federal reserve bank of st. louis, speaking with our colleague mike mckee about inflation. live from new york, this is bloomberg. ♪ scarlet: it's 2:00 p.m. in new york, 11:00 in san fransisco, and 7:00 p.m. in london on this friday. i'm scarlet fu. julia: and i'm julia chatterley, welcome to bloomberg markets. ♪ scarlet: we're live at bloomberg world headquarters in new york over the next hour. here are the top stories we are covering on the bloomberg and from around the world. a big week for the markets, with u.s. stocks rising to record highs for the third straight day. synchronized global growth story continues to win over

central bank and looked at banking regulations and look at the overall global economy, any advice for jay powell he takes over? raghuram: i cannot get any advice. i think he has a tremendous amount of experience in various facets of policymaking. it is an interesting world. i am sure the fed will continue its sound activity. michael: anything a central banker needs to know? raghuram: nothing i do not think he are ready knows. i have nothing to contribute to what he knows. thankl: raghuram rajan, you for joining us in philadelphia and we will send it back to you in new york. vonnie: thank you for that fascinating interview from philadelphia. mark: have a look at what is happening to european equities, trading 20 minutes until the finish of the friday session. gmm is the function and stocks are rising, gaining for a third day in a row. 600 rising by 18% this year. currency, the jpmorgan asian dollar index that tracks 10 regional currencies. long-term trend channel, a technical indication it will rally further and this signals a solid bullish break. --ning point occurred that is asian fx let's

. >>> jay powell will officially succeed janet yellen as fed chair. >>> and we'll tell you what steve and wilbur ross are telling reporters on the ground in davos. it's january 24, 2018. "worldwide exchange" begins right now. ♪ >>> goodni

it is an open question what the new fed chair, if he is confirmed, jay powell, will do.hink there could be pressure on the fed to raise interest rates. maybe four times this year. i think that will have an adverse affect on the markets. anytime the fed surprises the markets by being hawkish, you are bound to seem negative affects on the stock and by markets. shery: great talking to you. director of the hedge and monetary polity -- policies. check ont's get a whether markets stand. julie hyman is here with the latest. julie: thank you. we are seeing major averages rally today. as he can see, the outperformance of the nasdaq is notable. up 1.2%. just about a full percentage point more than the dow's gains. there is an index of stocks, this outperforming, as we continuing to see this large -- these large stocks to kickoff the year. if you look at the individual stocks, you will see that outperformance we have facebook, thatn, netflix, and off of rising. netflix rising on the back of a downgrade. taking a step back as we go into 2018, we have watched the dow, s&p ratio durin

there are further rate hikes coming her swan song is to get joay powell coming in >> one thing that jay powellould change the pace of, is that deregulation? >> yeah. he could do that he's viewed as friendly to the deregulation push to big banks and medium banks in the united states he has randy quarles as head of regulatory issues for the big banks. he'll -- powell will be pore friendly to that than yellen was. yellen was more of a proponent to dodd-frank and not going away from that. powell will be happier to change things >> thank you very much for joining me >>> japan's fuji film is buying a stake in xerox lan land h landon dowdy has more. >> fuji film will take over xerox and combine it into their joint future called fuji xerox the new entity will be 51.1% owned by fuji film and keep xerox's listing on the nyse. share holders will receive a 2$2.5 billion cash dividend that's about $9.80 per share the deal comes amid sluggish photocopier demand and a drive to cut costs in a news conference the fuji film ceo says the deal does not deplete our cash saying the company will continue to pursue m