mundell was a farsighted economist.undell, on williamson, jacob frenkel, we are honored to have you with us. former governor of the bank of israel. we get so fortunate when we have our guests on. today we saw a lot of positive tone on equities and on the price of fixed income. lisa: this is a faith-based market. this is a faith-based market we will not get serious inflation beyond transitory. it will be transitory. that is the belief, and i will see how may times i can get you to drink, you just toss that cup over your shoulder for all of the people listening on radio. people believe in a bull market without the inflation so many are worried about. tom: that is the set up for this morning and that set up will be tested by the economic data. much more through the week with inflation and retail. futures negative five, very stable. barely off the surge we saw on friday, 17.06. coming up, the gentleman from st. louis, james bullard of the st. louis fed. stay with us on radio, on television on this monday. this is bloomberg.

that leads us to the desk of robert mundell. this is a huge deal. you go from roach and the others, back to jacob franco of chicago, to the true founding father of modern foreign-exchange. robert mundell is the most interesting guy. hugely controversial at columbia. he was a great friend of this program, he will be missed. robert mundell at 88 years old led a vigorous life at no more than the foundation of foreign-exchange. good morning. this is bloomberg. ritika: a tough day at christmas. -- a tough day at credit suisse. plus, two top executives will be replaced after scandals raise questions about risk management. the head and chief risk officer are leaving credit suisse. president biden's economic agenda cap just -- just got a boost. it has to do with a process called budget reconciliation which bypasses the 60 vote rule required to pass legislation in the senate. bloomberg has learned that the central bank of china has offered major lenders to cut out loan growth for the rest of the year. they are concerned of a bubble risk. banks are told to ke

i -- robert mundell. certainly an incredibly original scholar.think we are about to lose our exorbitant privilege tomorrow. there is no question that part of what strengthened it over the last 10, 20 years is that china has had a very dollar-centric policy. now, it's a mix of the dollar and the euro but the dollar and the euro are not moving much. as long as that holds up, i think the u.s. exorbitant privilege is solid. it might not hold up forever. it's really not an optimal policy for trying. if you -- china. if you look at the longer end of five-year, 10 year debt and look at say that color comparisons, the u.s. no longer gets any exorbitant privilege. it's really only on short bet. tom: the basic theme of the less sophisticated is that china not is at war with us, but certainly has a different political system and has a new, robust offense. can they use renminbi as a weapon? can you weaponize a currency? ken: look, they view themselves as doing very well and they are not looking to rock the boat. their technocrats have been telling them for t

revolutionary for robert mundell. thank you. catherine mann. citigroup global economist.inary to see the timeline of this and all we talked about over the years. those rules then still a part of what we do today. lisa: the fundamental still driving, even though we have a vastly changed scenario. we are trying to understand how we are misstating the future as we look to hope versus reality. we will carry that conversation forward. tom: what is interesting is the idea of the bond market is litmus paper for the system. it was not like that 50 years ago. lisa: there is a question of how much the litmus paper at a time of central bank innovation. we will drive that forward on the open. brian belski will be among those joining me on a jon ferro property i will be joining in his absence, or some people might say, sabbatical. tom: sabbatical. we will see. it depends if the gulf stream can get him home. futures -- red and green on the screen. this is bloomberg. good morning. ritika: credit suisse is paying the price for its involvement in the collapse of archegos capital managemen

my career to be a colleague of his because all global macroeconomists today are either students of mundellne way or the other. he is truly the father of the euro. expensive, creative, wonderful gentleman, and one of the great economists of the second half of the 20th century. he will be sorely missed both as a human being and a scholar. jonathan: and i think everyone echoes those comments. always great to catch up with you, sir. i think we are all looking forward to getting in the same room today. looking forward to doing that down in d.c. richard clarida, vice chair of the federal reserve. tom, that conversation we just had, more fuel gets added to that debate over the weeks and months to come. tom: there's no question about it. it's interesting here is it is going to be formulated in the press conferences here, including april 28. michael mckee joins us now. not only what did you learn they are, but how does it change the pressure for jerome powell april 28? michael: i think it helps relieve some of the pressure. you guys did a great job. i may not even ask a question. tom: i like that.

the passing of bob mundell he was one of the foremost experts on exchange rates. he laid the groundwork for the creation of the common currency. he convened top economists for his beloved conference i was lucky enough to attend several years as a young reporter the debate was always lively and deep in the weeds and there was a ping pong match between him and paul volcker he will be missed, he was 88 years old. want to make a name for yourself in gaming? then make a name for yourself. even if your office, and bank balance are... far from glamorous. that means expensing nothing but pizza. your expenses look good, and your books are set for the month! ...going up against this guy... and pitching your idea 100 times. no, no, no! no. i like it. -he likes it! ...and you definitely love that. intuit quickbooks helps small businesses be more successful with payments, payroll, banking and live bookkeeping. we see smarter software delivering cleaner power. emerson's breakthrough technology enables the power industry to integrate renewable energy sources to modernize and imp