has a scent francisco federal reserve bank where he's worked for nearly a quarter of a century mr williams is seen as an ally of new federal reserve chairman jay powell the new york federal reserve is the most important show and largest holder of assets of all of the twelve regional federal reserve banks the current new york fed chair bill dudley will leave in mid june when mr williams replaces him. and last month the co-founder of whatsapp brian acton expressed astonishment by tweeting it's time to hashtag delete facebook whatsapp has more than a billion users now however we learned that whatsapp which is actually owned by the parent facebook has a similar design flaw to facebook which places you to user data in peril whatsapp claims that they protect your messages photos. videos voice message documents and calls and they are all secured from falling into the wrong hands however when using what's app group chat user data can be harvested by anyone in the group including your mobile phone number the discovery has led some commentators to suggest hash tag delete whatsapp. and the mind goalie and prime minister the former prime prime minister second billet is being

appreciate you coming this afternoon and listening to our guest president bill dudley of the new york federal reserve bank in new york, the preeminent central bank in the world. the fed sets monetary policy, an important tool in combatting inflation or deflation and is an important policy maker for employment issues. the federal reserve and the new york federal reserve bank were critical players during the 2007-2008 financial crisis. the try -- managed the crisis and took the extraordinary measures necessary to prevent the shutdown of the global financial markets. with the passage of the dodd-frank act, another member, the federal reserve has taken on a larger role both in terms of bank regulation supervision as well as the regulation of systemic risk. it comes as no surprise to anybody in this room that the chamber has at times had quibbles with the fed and other banking agencies in terms of regulatory process. a little over two years ago we issued a federal reserve reform agenda and have held extensive meetings with the fed on that subject and i think we've made some progress. but make no mistake,

has a scent francisco federal reserve bank where he's worked for nearly a quarter of a century mr williams is seen as an ally of new federal reserve chairman jay powell the new york federal reserve is the most in pool actual and largest holder of assets of all of the twelve regional federal reserve banks the current new york fed chair bill dudley will leave in mid june when mr williams replaces him. and last month the co-founder of whatsapp brian acton expressed astonishment by tweeting it's time to hashtag delete facebook whatsapp has more than a billion users now however we learned that whatsapp which is actually owned by the parent facebook has a similar design flaw to facebook which places you to user data in peril whatsapp claims that they protect your messages photos videos voice messages documents and calls and they are all secured from falling into the wrong and however when using what's app group chat user data can be harvested by any. one in the group including your mobile phone number the discovery has led some commentators to suggest hash tag delete whatsapp. and the mind goalie of prime minister the former prime prime minister second billet is being

there's increasing evidence that it was behind the 2016 attack on the new york federal reserves accountnk netting them $81 million. all of this putting considerable teeth behind this handshake of peace. joining me now is a former deputy assistant secretary of state for east asian and pacific affairs. michael, thank you for being with us. >> my pleasure. >> michael, the leaders of north and south korea have met before. in the past nuclear stuff hasn't been the issue. it hasn't felt the way it feels today. but how much of a breakthrough is it that moon jae-in and kim jong-un met at the demilitarized zone and crossed into the other country? >> look, i think at the end of the day there are two real take aways from this historic summit. first and foremost, this is a very positive and necessary start to a real diplomatic process that could really see a reduction in tensions on the korean peninsula, and potentially addressing some of the major issues outstanding including north korea's nuclear and missile programs. but at the same time we are left today after this summit with no further sense

he used to work at new york federal reserve.it fair, vince, that both i and ira are calling jerome powell mr. yellen. he seemed to parrot much of what she said and didn't come through with what the markets wanted to hear, a little reassurance that we shouldn't be worried as to why banks are starting to charge each other higher rates for overnight lending? >> he's not an economist but played one on tv today. he was just establishing, he's a source of continuity that he understands the macrooutlook, coming from the same staff that supported janet yellen. he sounded a lot like janet yellen, you're right. liz: he did not talk about things like libor meaning london interbank offered rate, that the rate the banks lend to each other. that spiked for 40 days straight. what does that mean? worry between the two sides of banks that are you going to be able to pay me back overnight? >> and remember as a governor, governor powell was working on the quoting conventions and knows all the plumbing of those markets. bottom line is they thought

recently both the atlanta federal reserve and new york federal reserve forecast q1 gdp growth upwards/2, almost 3%. for q2 about 2.9% on part of the new york fed. we see economic strength domestically. we've perhaps seen peek in economic growth it is well established above trend. corporate profits at end of the day will support stock prices if and when we can get past worries about degeneration as opposed to trade than the economic impact. what we know is now is rather diminimus. charles: gerri, not just china too because president trump fighting on multiple fronts including nafta. the final round of negotiations is upon us. he talked about it including daca, he mentioned the border, border security. all of these things, all side i think want to get something done. so it feels like at least there is a backdrop to some form of successful negotiations. i just don't know what it will look like because i think all sides want to claim victory too. >> you know how the president does this, right? his first argument is always his most outrageous and outlandish and he backs up, backs up but we

new york and you're watching daybreak us try a. the new york fed getting a new boss. it john williams replacing bill dudley, becoming one of the officials inwerful the federal reserve system. our global economics and policy editor kathleen hays here with more. was controversy about john williams and rumors about him becoming the president of the new york fed. >> he is. a big bill in reserve system and something that people are watching for any influence it may have on policy because the new york fed has selected san francisco fed president john ym's to replace bill dudley. bill is retiring this summer and rumored that john williams was in the running. we now know he certainly was. let me remind everyone why the fed's position is important. first among equals. among the presidents 12 rotate devote every year.

>>> and now we move to a new head of the new york federal reserve bank. >> yes, john williams replacesilliam dudley something of a controversial decision there was a lot of talk about appointing a diverse candidate to that job. there's been a lot of criticism about the federal reserve not having many of those folks on the board, and also elizabeth warren has criticized john williams for the supervision of wells fargo. for sure williams is not come with a strength? supervising and regulation, but perhaps the new york's fed board was forced a bit by the notion there's no vice chair right now overall for the federal reserve the with the chairman jay powell not being an economist, they do need a -- this is a group of directors approved by the board of governors in washington. >> thank you, steve. >>> let's talk more about trade. steel and aluminum stocks have been highly volume tiff stocks plummeted 18% on the day that the white house announced exemptions for the european union and several other cunning. joining us now is -- good to have you here, mr. bless where do you stand right now wit

what does he do to tilt the new york federal reserve office?> we think he is quite similar to bill dudley, we have a hot-dove chart where we show it one in the committee and we put williams and dudley next to each other. slightly more hawkish than the chairman, so i do think he brings big change, he is in the middle of that debate going on in the fed whether to hike three or four times this year. i think will be an important voice. he is a very smart economist and has been around a long time. actually think he is an excellent choice to head the new york fed. shery: and he is one of those people must talk about shifting the framework for monetary policy. price level targeting instead of inflation level targeting. the chart showing the level of prices in the steady growth path could lead -- rising 2% per year keeping the long run average inflation rate at 2%. could this be a new framework that williams can bring to the board? i think it is going to take quite a while for the fed to change their framework, but you see there is already change going

as kelly said, he is the person that will take over the new york federal reserve bank come june he'll have a vote at every meeting as opposed to, i guess it was, every other meeting for the san francisco fed president, kelly. >> new york retains that privileged position. steve, thank you very much kerry, i want to bring you in for a second there was something different about the selloff today versus the last couple of weeks we're not talking about a tech wreck. what are your thoughts >> correct it was nice to see that because it suggested to me the scrutiny of technology and how this is the culprit of the market that's going to take it down has sort of abated. this seemed to be a response to the trade issue. whether there's going to be a decline in earnings that relates to tariffs on dow-related companies. that's a much broader basket and i actually think it will have more effectively influenced the administration the idea that companies like caterpillar and boeing had a really rough day today is going to make a lot of people talk this weekend about what they might do to reduce that f

a very important position at the federal reserve. the new york fed president serves at the vice chairman of the committee which sets rates among all the bank presidents, only one that votes at every fomc meeting oversees implementation of fed rate policy. fed says set the rate here the new york fed implements that many markets and regulates the big new york money center banks. he's been the san francisco fed president since 2011 he is the xwektive vp and research before that a quarter century at the federal reserve system pafd in economics. he has argued that the neutral interest rate is low and should remain low, but calling for three r or four hikes this year. big issue was about the effort to find a diverse candidate. they decided on somebody who has implemented a lot of diversity in his bank. criticized by senate warren among others for the wells fargo supervision, which is supervised by the fed >> gives you an indication on how people think of the san francisco fed. considering janet yellen came from there to be fed chair. john williams comi

federal reserve bank of are new york says steel tariffs are likely to cost more jobs than they save. >> another issue for macron. >>> breaking news. >> royal baby news. kate middleton has been admitted to a london hospital in the early stages of labor. they are expecting their third child. the pababy will be fifth in lin to the throne. harry would be sixth. the top six are considered the core royal family. >> i just trust all your royal news. >> i listen to max foster. we will stay on the subject. >>>gaagain. this time killing dozens as they v register to vote. >>> and details on the russian journalist's death. did he get too close to the truth? that's ahead. >>> 4:16 eastern time. 57 people killed by a suicide bomber at the voter registration center in kabul. more than 100 injured and five children among the dead. the bomber was on foot when he detonated explosives at the gate of the election center. isis is claiming responsibility. this is the most serious an attack to date against afghan president and is expected to have a parliament election in october. >>> calling for an investi

the federal reserve bank of new york says those steel privileta are likely to cost more jobs than save. >> the tariffs always issue with macron and donald trump. >>> breaking overnight. the duchess of cambridge admitted to the hospital in labor with another royal baby on the way. we go live to london for the latest next. we have got a problem. a few problems actually. we've got aging roadways, aging power grids, ...aging everything. we also have the age-old problem of bias in the workplace. really... never heard of it. the question is... who's going to fix all of this? an actor? probably not. but you know who can solve it? business. because solving big problems is what business does best. so let's take on the wage gap, the opportunity gap, the achievement gap. whatever the problem, business can help. and i know who can help them do it. jeff and market volatility into retirement. isn't top of mind. that's because they have a shield annuity from brighthouse financial, which allows them to take advantage of growth opportunities in up markets, while maintaining a level of protection in dow

new york and you're watching daybreak us try a. the new york fed getting a new boss. it john williams replacing bill dudley, becoming one of the officials inwerful the federal reserve systemobal economics and policy editor kathleen hays here with more. was controversy about john williams and rumors about him becoming the president of the new york fed. >> he is. a big bill in reserve system and something that people are watching for any influence it may have on policy because the new york fed has selected san francisco fed president john ym's to replace bill dudley. bill is retiring this summer and rumored that john williams was in the running. we now know he certainly was. let me remind everyone why the fed's position is important. first among equals. among the presidents 12 rotate devote every year. vice chairman of the fomc. that much closer to the chair him or herself. oversight of the big wall street banks conduct open market operations in this will become a more important policy tool as the fed exits from a big balance sheet. to the table,ring john williams? he's been applauded as a top monetary economist. people say he lacks market experience. in 2002 anded became t

"the new york times" reports that federal prosecutors have press charges against a new york police officer about the justice department has expressed some strong reservationsd with the case of eric garner and when i going to make a decision about the police officer and whether they will charge him. >> secretary sanders: i don't have an administration update but i refer you to the department of justice to get further details and i'll work on getting an update for you. >> reporter: another question i have -- -- the second question is the president tweeted, james comey illegally classified -- illegally leaked documents to generate a special counsel. therefore the special council was established based on an illegal act. does everyone know what that means?" what does a president think that means and is he indicating the special counsel should be fired because of the way it begun? >> secretary sanders: we have no intention of firing the special counsel. we've been beyond cooperated with them, we are continuing to cooperate with them. over a million pages and documents of the special counsel, we have been cooperative. with the president has been saying all along,

the president of the san francisco federal reserve is heading to the big apple. john williams has been named to the new yorkl's leadership team. global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. this is bloomberg. thank you. the tech space has been at the center of market volatility. with the vix stubbornly above 20, hedges on equities are in demand. digging into volatility measures shows that investors may be caught offguard if things do turn south. joining us now, our reporter dani burger. we are still with geoffrey yu, head of u.k. investment office, ubs wealth management. there are other ways to look at volatility then skew, and they may show a different picture. index,ou mentioned this aich is one that looks at different section of what the vix is tracking. the vix, if you think of volatility in cabell curve, the vix is going to track that curve. when you look at you, it is looking at the tail risk. these are options that will protect you if we get a bigger rise in volatility than what is normal. i brought the chart with me. this is the skew index. as the

new york times and others report that federal prosecutors have recommended charges against the new york police officer involved in eric garner's death, but the justice department has expressed some strong reservations. where do things stand with the case of eric garner? and when does the justice department -- when are they going to make a decision about the police officer and whether or not they're going to charge him? >> i don't have an administration update on that front, but would refer you to the department of justice to get further details. and i'll work on getting an update for you and let you know. >> usually when we let one, it's not exactly a secret, but i'll be happy to share that with everybody. >> the second question is that the president tweeted that james comey illegally tweeted -- illegally leaked documents to the press to generate a special counsel, therefore the special counsel was established based on an illegal act. really, does everyone know what that means. what does the president think that means? and is he indicating that the special counsel should be fired because of the way that it begun? >> as we've said many times before, we have no intention of firing the special counsel

the first one is federal prosecutors have recommend charges against the new york police officer involved in aaron's death. but the justice department has expressed strong reservation. how does president trump feel about aaron garner and whether or not they're going to charge him? >> i would refer you to the department of justice. i'll work on getting an update for you and let you know. >> the next question i have -- >> usually when we let one that's kind of -- that's not exactly a secret. but be happy to share that with everybody. >> the second question is everybody needed illegal classified documents to generate a special council. therefore the special council was base on an illegal act. what does the president think that means? and is he indicating that the special council should be fired because of the way it's begun? >> we have no intention of firing the special council. we've been beyond cooperative with him. we're continuing to cooperate with him. turned over a million pages in documents to the special counsel and have been cooperative. exactly what the president has been saying all along that this was a false premise that this entire thing started on. we co

new york fed has a new inflation indicator, it hopped up to 3.14%. what is that new indicator >> the universal inflation gauge. >> my god, what does that mean >> for once the federal reservee and financial market asset prices into an inflation metric >> they're getting caught up to 20 years ago the rest of us know that real estate matters >> we didn't see the real estate crisis coming. why? they did not capture asset prices now they have one. >> is the inflation picture getting hotter because it's getting hotter or "b" because they changed the metrics >> no, even if you looked at the core cpi, it popped above 2% yesterday. and input prices are hurting companies now. it costs money to find skilled workers. input costs have gone through the roof ask any company trying to get transportation, it's extremely expensive to get trucking. input prices have spiked since hurricane harvey made landfall >> when we were at the port of charleston earlier this week, said 3700 trucks come through every year 100% turnover in drivers they keep going to different firms, because they get paid more because a truck driver can name his or her own price. >> but the average truck driver is over th

anecdotes hypothesize that unofficial federal reserve communication around these meeting times is responsible here this guy collected data from yellow taxis here in new york city and gather that information and found out that yes there was an increase especially from midnight until four in the morning so they're like meeting at like two in the morning down at the fed taxi rides from like midtown where a lot of these big banks are down to the new york fed right well i would take exception with your characterization that we've made these claims without evidence because i new york fed is a place that i overlook from my office of paine webber and a place where i lived next to and i was living downtown unfold street is a place where the bankers go at lunch to harry's in hanover square on wall street where i work for many years and anecdotally my evidence suggests that my conversations inside information was being passed from the new york fed to bankers uptown that's what i said and now this data point proves it based on the taxi rides that congregate at the new york fed at these odd hours the day before information is released and i mean affect on banks it's i

williams from the san francisco fed to the new york fed is continuity, but you still have a vacancy to fill. it now just popped over to the san francisco federal reserve. even on that measure, this does not make a ton of sense. is this a fed that is deadly serious about standing up to the finance -- finance industry and providing meaningful oversight and regulation? josh: i do know. it has not been given that test yet. we are 10 years out essentially from the last huge financial crisis, that tends to be the time when regulators are getting lax. we know congress is starting to get lax and are chipping away at dodd-frank. we have now shifted from janet yellen, who won her last speeches was a forthright strong defense of the fed role as a regulator. we have jerome powell who we will see the lightens up the reins. i don't think any big financial market will take an obvious bubble we need to worry about pop in the next month. this is the cycle over the next two years where you could absolutely imagine a bubble starting to happen. i think it will be tested and i am not optimistic. nominees for the board of governors the trump administration has made, they d

betty: what does it mean for the federal reserve and its three to four rate hike plans in 2018? officials, from the fed, the new yorklie evans -- they have said tariffs alone are not a big deal for the u.s. economy. it is a threat of a global trade war that could be a risk. the risk we are seeing right now is financial stability. market volatility. yes, it was hardly bank stocks by trade tariffs between the u.s. and china is a big driving force. another thing we have to watch closely is the yield curve. let's take a look at this chart. is the 2-yearee note is the 2-year note to 10-year note spread is down to just about 45 basis points. that is the narrowest since before the financial crisis started. when people see flattening yield curve, they start thinking will it invert? an inverted yield curve leads to this sense that maybe recession is coming, maybe even next year. trade war goes along with that question is if this gets bad -- we're a long way away -- but depending on how this goes, depending on escalation and retaliation, that is where you get into territory which could affect the fed's expectations for how ma

. ♪ ♪ lisa: i am lisa abramowicz here with tom keene in new york to a drinking his coffee, preparing for the egg hunt. as the u.s. federal reserveigns that consumers could be finding themselves in peril. marc chandler, head of brown we were justiman, talking about how the u.s. economy maybe not as good as some people think. tie consumer debt into this, given the fact that we have seen indices starting to pick up. marc: three indicators show us the u.s. economy is in late cycle. first, the 12-month moving average of nonfarm payrolls peaked in 2016 almost 100,000 higher than the current 12-month average. lateverage indicator of cycle is auto sales piercing story. 12-month moving average also turning down. third factor, you mentioned to liquidity on credit cars going up. this is another thing, late cycle, telling me there is stress in the economy. we get this fiscal stimulus that will extend the recovery further, then it turns down for real, and that is either late 2019 or early 2020, and the credit card stretch is another side that the average american household is struggling to make ends meet, partly because wages are not keeping

new york, and then 9:00 to 10:00 and new york, boston, the bay area, washington, d.c., and london. this is bloomberg. ♪ kailey: this is "bloomberg daybreak." coming -- coming up later, raw feel bostick, atlanta federal reserve. and now to your bloomberg business flash. fiat chrysler approved a spinoff of a parts maker, one of the last items on the ceo's to do list before he leaves. he says it will increase value for shareholders. he had sales of about $9.7 billion in 2016. the head of ubs' investment bank says he has an aggressive plan for the u.s. he is doubling down on a pledge to ramp up this was bank's presence in wall street deal. he says he wants to assemble meeting teams for retail and software. a person briefed says ubs will double the number of those bankers and the americas within three to five years. real estate prices in san francisco are soaring. the median sales price of a house there rose 24% in the last year to a new high of $1.6 million. a real estate company says fear of possible interest rate hikes might be one reason. san francisco home prices have been rising steadily in recent years thanks in part to the booming silicon valley economy. and that is your bloomberg business flash. david:

federal reserve is going to the big apple. john williams has been named as the new boss of the new york fed. former goldman sachs executive will succeed dudley, making him part of jerome powell's leadership team. in the u.k., today marks the deadline for companies with 250 employees to report their gender pay gap. minister hit out at the 18% difference between men and women's earnings. theresa may said the issue is one of the burning injustices in gender equality, and progress . andns too slow california, a woman has shot and injured three people for killing herself at googles youtube headquarters in san bruno. the woman appeared to be dead of a self-inflicted gunshot wound. reported ited press is being investigated as a domestic dispute. global news, 24 hours a day, powered by 2700 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . in on the markets in asia, about three and a half hours until china responds to the broad tariffs we heard from the trump administration on 1300 chinese goods. you have seen a slight -- health care players

new york, this is bloomberg. ♪ scarlet: this is "bloomberg markets." julia: we are back with morgan stanley chief u.s. equity strategist, mike wilson. one of the things we are looking at is the federal reserveing to ratchet up interest rates. you are looking at the difference between what we see in the two-year part of the curve between what the fed is trying to do on the front end. talk to me about what that difference means. mike: everyone has been focused on the attempt to spread, which has been a flattening a while and gives us a sign the recession is coming. this is the bond market interpretation of whether the fed has gone too far. if it raises rates and the two-year note doesn't go up, the bond market is saying, this will go too far. whatever the fed raises, it always drops like that. if things are good, it will climb back up. the latest hike in march is not climbing. scarlet: it is stepping out. mike: the market has been very worried about trade, these tech stocks having individual troubles. but the market is worrying about something? i am not going to worry about it. the market is not worried about this. policy andn fed financial conditions. i am focused on this to tell me when the

new york city i'm , jonathan ferro. 30 minutes until the start of trading. this is the countdown to "the open." ♪ jonathan: coming up, big week ahead. federal reserved of april payrolls report. before an american delegation goes to beijing, wrestling with tariffs. and finally an agreement for t-mobile to purchase sprint, taking on at&t, verizon and the regulators. flat trading week last week, we are positive this monday morning and up 6 on the s&p. fx market, the end of the last week, we have a stronger dollar story. 1.21.ollar, yields down a little bit lower. down a basis points. --week of adamant not a data

federal reserve is heading to the big apple. john williams has been named the new boss of the new york fed. he's part of a new leadership team.n the u.k., today marks the deadline for companies with at least 250 employees to report their gender pay gap. saysin's prime minister there is an 18% difference between women and men in earnings. theresa may says it is one of the burning injustices of gender inequality. the woman who police say went on a shooting rampage at youtube headquarters was reportedly a video creator who criticize the company for policies she claimed limited her audience. police identified the suspect was shot and injured at least three people before killing herself as nasim aghdam. global news 24 hours a day powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. mark: let's get straight to the top story. the u.s. has stepped up its dispute with china, with proposal to levy 25% import tariffs on high tech items worth about $50 billion. china condemning the move, adding reciprocal tariffs of 106 u.s. products from soybeans to vehicles. s&p futures falling on the back o

federal reserve. downey fischer step october. this helps phillip leadership team of new chairman jerome powell. john williams maybe the next head of the banks are from new yorknch. china's treasuries rose in february the most in six months. even amid trade tensions between the world's two largest economies. bondss ownership of u.s. increased by $8.5 billion to $1.18 trillion. china remains the largest foreign creditor to america .ollowed by japan u.k. prime minister theresa may's facing a second debate and as many days in britain's role involving syria. she stayed up late last night listing to lawmakers views. there were six and a half hours of proceedings including more than three hours with direct questions from mps. this is in the face of allegations that she rushed forward without seeking proper approval. powered by more than 2700 journalists and analysts in more than 100 and 20 countries. i'm ed ludlow in this is bloomberg. francine: -- mark: gdp grew by 6.8% in the first quarter let's get to our china correspondent. talk us to the data and what it means for the chinese economy. >> a couple of key takeaways. one is the chinese consumer remaining very bu

federal spending choices for the people of this nation. i yield back. the speaker pro tempore: the gentleman yields back the balance of his time. the gentleman from virginia reserves. the gentleman from new york is recognized. mr. nadler: mr. speaker, i yield three minutes to the gentlelady from new jersey. the speaker pro tempore: the gentlelady is recognized for three three minutes. mrs. watson coleman: in december, republicans rushed a little thought that they had consideration for the long-term impact, a tax overhaul that has been exposed over and over again for structural and fiscal flaws. contrary to the false bill of goods that they are marketing to the american people, this scam would shower wealthy with the dollars shaved off of the income of americans. there is a gapping divide between the rich and the middle class and in new jersey my constituents will be among those hardest hit as it guts the federal deduction for state and local taxes, the exact opposite to the cuts and breaks that republicans have given service to. months after padding themselves on the back, they are back tracking. lining the pockets of millionaires and corporations isn't a sound fiscal decision to to fix it th