it's necessarily a nail in the coffin of libor projects i think it just shows that there are certain hoops requirements of go before labor can move forwards and i mean the project is facing pressure from u.s. lawmakers as well we got to point that out too what would the introduction of libera a so-called stable coin mean for bitcoin and the cryptocurrency i mean i think it's very important to differentiate between how libor is a stable coing and what bitcoin is and leaders obviously backed by facebook having this money these assets and they take me as assets out of circulation and putting libor into circulation which sort of you know is replacing in a way things like the dollar the yen the pounds with these libor coins so i think it's a huge difference between what bitcoin is and what libras. in terms of. the currency landscape i think is a good way of introducing people to things like bitcoin things like lisc as well because when you start learning about the value of crypto currency is you sort of go down this rabbit hole and explore further is there the potential of a greater accep

strike and later facebook finds itself under fire get again for privacy concerns rolling around the libor project ali mahogany on the block and founder of london joins us to dig into the details of what could spell doom for the digital currency let's get to it. china is still closed for the last day of golden week but later on this week vice president premier league is expected to meet the u.s. for its 13th round of train to go she asians in washington bloomberg has reported that china has significantly narrow the scope of it. that they're willing to discuss and that china will not commit to reforming industrial policies or government subsidies 2 of trumps main complaints but has china really narrow the scope no this is the exact same stance that china has maintained since the beginning trade and policy have always been 2 separate issues that must be treated as such in fact back in may she had reported that restrictions on state owned enterprises go beyond the scope of trade negotiations and touches on china's fundamental economic system there has been no shift in narrative no narrowing o

so i would say that this is not the and for libra there is still a lot of potential with what libor is doing but they're definitely making a lot of mistakes and so it is concerning when you see companies like pay pal deciding to leave and actually the statement that came out from libor is association targeting pay pal said it's good to know of this lack of commitment now rather than later and it doesn't acknowledge the problems that facebook libras made and the risks that they're adding on to their partners with their lack of a comprehensive plan you also see with the french regulators the sentiment echoed about the threats to national sovereignty. p. b.o.c. and china also had very similar concerns leading to the acceleration of their currency that they're working on and so it is definitely very concerning there will likely be other partners that leave if book libra does not turn this around quickly and so these changes do need to happen and they need to happen very soon man you have finance kind of trolling coming out with their own stable client project and the venus to facebook so u

financial system that's already unstable even with national currencies and regulation libor i would be decentralized and truly open to potentially devastating currency speculation and its use by criminals and terrorists some of you talk about was also asked about facebook in general all the allegations of misconduct that are being investigated by multiple authorities around the u.s. from an advertising platform that's allowed companies to discriminate against minorities to turning a blind eye to election interference it was clear that this was a hard sell in fact the committee chairwoman said that just by suggesting facebook move into finance it was yet another argument that the company was too big each not 2700000000 people use your products that's over a 3rd of the world's population that's huge. that's so big that it's clear to me and to anyone who hears this list that perhaps you believe that you're above the law you have opened up a serious discussion about whether facebook should be broken up zuckerberg insisted that libra would not be limited to those for membership regulators w

association originally the libor association had 28 founding members but now as you've been reporting 7 major players have left the project including pay pal visa master card stripe and e-bay joining me now is glen goodman author of the crypto trade up so it.

can help the idea behind libor is that sending money should be as easy and secure is sending a message will be a global payment system fully backed by a reserve of cash and highly liquid assets and i believe that this is something that needs to get built but i get that i'm not the ideal messenger for this right now and we faced a lot of issues over the past few years and i'm sure there are a lot of people who wish it were anyone but facebook who are helping to propose this but there's a reason that we care about this and that's because facebook is about putting power in people's hands our services already give people a voice to express what matters to them and to build businesses that create opportunity giving people control of their money is important too and a simple secure and stable way to transfer money is empowering over the long term this means that more people transact on our platforms that'll be good for our business but even if it doesn't i still think this could help people everywhere before we move forward there are important risks that need to be addressed there are questi

we strive to democratize access to financial services for underserved populations let's break down libor facebook says it will be used to pay for goods and services on its site eventually though it will widen out so you can make other purchases through phone apps its official launch is planned for next year the whole thing is managed by the labor association at the backbone of its facebook obviously but also $27.00 other firms including visa master card and the british telecom giant vodafone but before it's even had a chance to go live it's already running into some stiff opposition from regulators in a number of countries there expressing fears over the potential do currencies volatility for a start there's also no strict plan for how data ramani will be protected from some germany say they will block libor on their territories and the head of apple tim cook he's also wary about big business muscling in with its own money. i really think that a currency should stay in the hands of countries i'm not comfortable with the idea of a private group setting up a competing currency a private co

obsolete in the future innovation and construction of digital currency so what is the outlook for libor now that paper has officially left the association. yeah i don't think the future for labor looks particularly bright right now and there's a couple of reasons for that i mean consider the 2nd part of what brian armstrong said there makes sense when he says the u.s. is getting completely left behind on this that's absolutely true and that's by choice but but it's obvious that that would happen because the us having the reserve currency worldwide is in no 'd hurry to change the monetary system around the world people who are involved in crypto want to see a disruption a revolution in terms of the monetary system not just here in the united states but globally but consider the fact the 1st thing he said which was that the u.s. government has had a ridiculous stance on libra libras not at all the same as what china's trying to develop or what iran is trying to develop within israel has developed in the petro very different cases there where they are trying to form a national crypto curre

excited eventually other purchases through phone ups its official launch is planned for next year libor will be managed by the liberal association that's founded by facebook and $27.00 other companies including these are mastercard and british telecoms giant vodafone but before it's even gone live it's running into some stiff opposition from regulators they have expressed fears over the potential new currencies volatility there is still no strict plan for how data and money will be protected from for germany say they'll block libor on their territories and the head of apple tim cook is also wary about big business muscling in with its own money i really think there's a currency should stay in the hands of countries are not comfortable with the idea of a private group setting up a competing currency a private company shouldn't be looking to gain power this way the labor association acknowledges the risks but says it's looking forward to the great challenges that the new currency will bring the editor at future money trends thinks libra may prove very popular but does present dangers. the

and a global financial system that's already unstable even with national currencies and regulation libor i would be decentralized and surely open to potentially devastating currency speculation and it's used by criminals and terrorists some argue it was also asked about facebook in general all the allegations of misconduct that are being investigated by multiple authorities around the u.s. from an advertising platform that's allowed companies to discriminate against minorities to turning a blind eye to election interference it was clear that this was a hard sell in fact the committee chairwoman said that just by suggesting facebook move into finance it was yet another argument that the company was too big each 2700000000 people use your products that's over a 3rd of the world's population that's huge. that's so big that it's clear to me and to anyone who hears this list that perhaps you believe that you are above the law you have opened up a serious discussion about whether the base book should be broken up is not about insisted that libra would not be luminous financial regulators were

one single b loan at libor plus 400, where you have more diversity and broader range?is likely to persist as this shakes out, but one nice thing, about rating cycles, you ultimately work through them. storm in the eye of the right now, especially going into year-end, when liquidity is in. being a liquidity provider at a point in time when quality is compromised, that is a quality trade. jonathan: coming up on the program, the week ahead, featuring eu leaders gathering for a two-day summit in brussels. this is "bloomberg real yield." ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." time for the final spread. up next week, we get some data out of china, trade numbers going through to monday and tuesday, additional tariffs on chinese imports are sent to take effect, and u.s. bank earnings kicking off wednesday. the imf and world bank meetings begin in washington and on thursday, eu leaders meeting in brussels for a two-day summit. andy charlton, michael burgess, and george bory still with me. i have been trying to avoid brexit, we will get to that in just a

there's still no strict plan on how the data money will be protected from germany so they'll block libor on their territories and the head of apple tim cook has also spoken out against it i really think that a currency should stay in the hands of countries i'm not comfortable with the idea of a private group setting up a competing currency a private company shouldn't be looking to gain power this way the labor association acknowledges the risk but says it's looking forward to the great changes that the new currency will bring the editor of future money trends thinks libor may prove very popular but does present dangers. the wild card with with this is that they're trying to reach all the bankable spiegel that don't have a bank account but definitely have a smartphone or phone and then we have the facebook app and that's where they can compete with basically. anything and everything that's the wild wild west right now because nobody is approaching the on bankable the fact is facebook the fact that is so big and at the starting point is not a starter this is going to be. donald's and a new

plus 450, or a triple-b traunche of clo's at libor plus 400, where you have diversity and a much broader? the upper-quality bias is likely to persist as this shakes out, but the value argument across the market is starting to emerge. the advancement, one nice thing about rating cycles, you ultimately work through them. we are in the eye of the storm right now, especially going into year-end, when liquidity is thin. being a liquidity provider at a point in time where quality is compromised, that is a value trade. jonathan: you guys are sticking with me. still ahead the final spread. , the week ahead, featuring eu leaders gathering for a two-day summit in brussels. this is "bloomberg real yield." ♪ ♪ jonathan: i'm jonathan ferro. this is "bloomberg real yield." time for the final spread. coming up over the next week we , get some data out of china, trade numbers going through to monday and then on tuesday, additional tariffs on chinese imports are said to take effect, plus u.s. bank earnings kicking off. wednesday, the imf and world bank meetings begin in washington and on thursday, eu lea

upcoming launch of a digital currency mark zuckerberg sought to reassure politicians that the new libor a crypto currency would not be introduced until it satisfied all u.s. regulatory concerns members of the house financial services committee fear that it could disrupt the global financial system threaten users' privacy and facilitate money laundering facebook says libor will be a force for good reducing cost for electronic payments and helping people send money world wide. right so let's just update you on the top stories this hour now u.s. president donald trump says washington will lift sanctions imposed on turkey over its offensive in northeast syria is comes after russia now patrols parts of the region in a deal with turkey to enact and you cease fire along the border the government of turkey informed my administration that they would be stopping combat and their offensive in syria and making the cease fire permanent at it will indeed be permanent however you would also define the word permanent in that part of the world is somewhat questionable we all understand that but i do bel

rest of the world isn't waiting china is moving quickly to launch a similar idea in the coming months libor is going to be backed mostly by dollars and i believe that it will extend america's financial leadership around the world as well as well as our democratic values and oversight but if america doesn't innovate our financial leadership is not guaranteed. there well and mark zuckerberg actually also mentioned that he will not start to lead the approval of u.s. regulators and if you listen closely to their representatives during the hearing most of them seem to be quite critical not just about libra but maybe about crypto currency as in general because we also saw a lot of pressure on other crypto currencies on bitcoins for example those lost more than $600.00 in value here in the wednesday session bow down by more than 6 percent so a lot of political scrutiny and it seems pretty unlikely at this point that we will see you see a libra in action anytime soon call to breaking down a busy day on wall street for us thank you very much and after days of violent protests against inequality and

the libor cost will not be enough to make investors in the new debt deal happy.inancial times already reporting jp morgan is leading the financing package. other banks may or may not get into this. we will probably see more banks. the financial times has also been reporting that goldman sachs, initially part of the debt package, was not part of the initial talks. romaine: this is a company i am told is running out of cash. this is also a company that was weeks away from an ipo. help me reconcile this and help me understand why lenders are at 4.75to take a chance over libor. sonali: it is almost distressed. it is risk and reward. you have to be comfortable with has to give in terms of what they will pay for the debt. you're going from a company with the valuation well over 40 billion, and well below that, under 15 billion. you have new leadership. you have restructuring operations. who knows what happens next in the next year for the company. if you are giving them the money now, you're betting on a future into next year. guy: thanks very much indeed. great report

thirdly, instead of two years ago having a rising rate environment, we have an environment where libors declining. all of those things are negative from a loan market perspective. there are couple of different stories, which are not different from the rest of the broader markets, including credit. higher quality is still doing ok. it is the lower part of the market that has bifurcated and has been pretty negative. we continue to be cautious across the market. loans generally look more like a secured high-yield bond market than the historical bond market. -- historical loan market. there are pockets where you can find good spread and risk, but similar to the high-yield market, you have to be careful. kathy: we have not liked the loan market for some time. why are you buying loans when rates are going down? jonathan: that is my question. is this about floating rate and no appetite for it or credit risk building? kathy: both. you see the decline in credit quality, you have seen falling rates, and the covenant light business. you are seeing investors push back on it, deals not getting done

have control of it and the whole idea behind the crypto currency the whole idea behind bitcoin and libor is not to be regulated were can go currency the whole idea behind bitcoin and libor is not to be regulated were can be manipulated or controlled like it's done now so china's a digital currency of the human it really are controlled like it's done now so china's digital currency if they get one that is going to want to be going to see. them in the business it is it is not how it is now. because just like these like the united states security it's like on every other of your father for your facts you can get into currency the big book that one of the biggest medical for a value that that was meant for that had to eliminate the b. if you had currency system it also helps people to get their money out a limb in a to be if you had currency system it also helps people to get their money out of a country if they're going broke you know you are if you're greece or even israel if you have money why get out of a country if they're going broke you know you are if you're greece or even israel if

is not to be regulated where it can be manipulated or controlled and been coined and libor is not to be regulated where it can be manipulated or controlled like it's done now so china's digital currency if they get one is going to be sold like it's done now so china's digital currency if they get one is going to be strictly be manipulated as it is now just like the united states current directly be manipulated as it is now because like the united states currency like every other forgot currency the big question is meant for that that to eliminate the like every other figure out currency the big question is meant for that had to eliminate the b. if you had currency system it also helps people to get their money out of a country if you had currency system and it also helps people to get their money out of a country if they're going broke you know you are if you're greece or in israel you have money when i get out you can get out quickly they're going broke you know you are if you're greece or if you're in israel and you have money when i get out you can get out quickly through but goin

and a global financial system that's already unstable even with mashable currencies and regulation libor i would be decentralized and truly open to potentially devastating currency speculation and it's used by criminals and terrorists some argue was also asked about facebook in general all the allegations of misconduct that are being investigated by multiple authorities around the u.s. from an advertising platform that's allowed companies to discriminate against minorities to turning a blind eye to election interference it was clear that this was a hard sell in fact the committee chairwoman said that just by suggesting facebook move into finance it was yet another argument that the company was too big each month 2700000000 people use your products that's over a 3rd of the world's population that's huge. that's so big that it's clear to me and to anyone who hears this list that perhaps you believe that you are above the law you have opened up a serious discussion about whether they spoke should be broken up zuckerberg insisted that libra would not be launched on those financial regulators

turning to the planned libor virtual currency you tweeted earlier today about the breaking news. facebook c.e.o. mark zuckerberg is now slated to testify before the house financial services committee on october 23rd your comment on the news was what happens when match meets care is and tell us why you think there will be a pyrotechnic display in that hearing maxine waters is sometimes known as kerosene maxine because she's a fiery chair she's about 80 years old she's worked in the house financial services committee for decades and this is her time she's a tough. woman that asks robust question and she is not going to let mark zuckerberg off the hook without asking tough questions and as we know as possibly the nation's most influential c.e.o. . there are a number of questions to answer from libra he wants to have the world's currency to . hearing with the 2016 election running you know biden's ads right now that the impact of facebook is enormous and she has with her team of fellow democrats and republicans skeptical republicans a chance i've spoken with committee staff and they

to washington this time hoping to convince lawmakers to support his company's new digital currency libor but it didn't quite work out as planned to talk about that i'm joined now here at the big table by severe diogo mighty as she manages the w's main english language facebook page and she works on social media strategy she knows a thing or 2 about facebook's if it's good to have you on the show. what what was your impression today just by the the the appearance of the performance of zuckerberg i mean was he clueless as to why these lawmakers were being so critical well brant i would say he was clueless i think he was a lot more prepared than last time clearly the facebook staff made an effort to inform him and prepare him for the lines of questioning it felt to me like he was a lot more prepared on the policy issues regarding labor he wasn't expecting all the other questions and that tied in in the minds of the congressmen and women and the postal service committee to would leave so all the other ongoing issues that facebook has in court. hearing generally as a company i know facebook h

and a global financial system that's already unstable even with national currencies and regulation libor i would be decentralized and surely open to potentially devastating currency speculation and it's used by criminals and terrorists some argue so i was also asked about facebook in general all the allegations of misconduct that are being investigated by multiple authorities around the us from an advertising platform that's allowed companies to discriminate against minorities to turning a blind eye to election interference it was clear that this was a hard sell in fact the committee chairwoman said that just by suggesting facebook move into finance it was yet another argument that the company was too big it's my 2700000000 people use your products that's over a 3rd of the world's population that's huge. that's so big that it's clear to me and to anyone who hears this list that perhaps you believe that you're above the law you have opened up a serious discussion about whether face book should be broken up it's not about insisted that libra would not be in us financial regulators were sat

the is that i'm a hunter any 2nd so i would look to lobby being good for fashionable london that libor and other asked in a loss or what the journalists odious and little apart from sell something. as a food to knock on business but at least we've heard a. how about our lives old latterly with him i will look back at milan on food lot of the bursts all bad in health on the mother see prince out here on a dutch saw friends out a lot of the flowers and i kind of sobbing and in the end i'm in joe axiom of the little tiny spot even though if he had all. of the sick and a letter to dictate to me that i had to learn some coffee or water in the spirit he can the taliban who are s.s.c. can now how do you see next year out there right on some coffee and why me and and even if i can focus she can add that him and she alone could double me you know that i am and not push my man and me a man is a female narcotic and them and. leo and when you do on our own who. would you feel yourself could do chose your own ally shame sharon had a wheel on shocks you don't intend can only last us in the worst at

to washington this time hoping to convince lawmakers to support his company's new digital currency libor but it didn't quite work out as planned to talk about that i'm joined now here at the big table by sophia diogo my tears as she manages the w.'s main english language facebook page and she works on social media strategy she knows a thing or 2 about facebook's if it's good to have you on this show. what what was your impression today just by the the appearance of the performance of zuckerberg i mean was he clueless as to why these lawmakers worst being so critical. well brant i would say he was clueless i think he was a lot more prepared than last time clearly the facebook staff made an effort to inform him and prepare him for the lines of questioning it felt to me like he was a lot more prepared on the policy issues regarding labor he wasn't expecting all the other car questions and that tied in in the minds of the congressmen women and postal service committee to with libra so all the other ongoing issues that facebook has in court. generally as a company i know facebook has been spe

that all agreement it was supported to d n principle with a majority of 30 that included a number of libor m.p.'s 19 labor m.p.'s voted for the out with that all agreement however it no goo is to the detailed examination and that's where m.p. m.p.'s compute for what amendments and one of those amendments for instance could be that the phasing will deal as a referendum of the whole of britain again so that people get to vote on whether or not they support this do not make noise when support and parliament but you know what was bought us joints and how we know lost the support of the dui. i mean be for all of that we should manage to keep the do you be on board but as joins is driven them off because he's done things in relation to this deal in relation to a home ireland released in northern ireland and the european union which. from home. and scotland that has been too much for the do you to swallow. and susie asked for the do you think there are reactionary party i think want to. think. of the union beyond the main by joins in this deal so that is new got into the new got a d. this will fa