and p. debt ceiling debate government shutdown all that stuff in the summer of two thousand and eleven and we're headed right down that path again fitch this week was talking about downgrading u.s. credit rating and so a lot of there are a lot of similarities you know the old adage is history doesn't repeat but it rhymes well markets you know they obey natural laws many regards and in nature things go in a circle you know planets go in an orbit and the seasons come and go and things go up things come down and markets are a subset of nature and that's the idea of us returning to a bull phase in the gold market is complete really consistent with five thousand years of history of monetary history and. it seems as though we're ready to have new all time highs and gold you know because for all the reasons that are just getting into i think you know to refer to your previous point about the cartel who like to keep the price under their thumb bice flooding the market with counterfeit cell orders and the

p. the upgraded your debt rating. moreely to debt, more bonds because of that, and when would you do it? minister: i believe, indeed, the coming period will be one of good news for the economy. yesterday we had the upgrade showing the positive way in which the euro group decision was received by the investment community. i think the biggest success for greece is that it is managed within a short period to implement important structural reforms and may be a journalist, you would like to approach the discussion on the fiscal reform. of course, this was huge. especially if you imagine we started from a deficit that went up to 15% of gdp of the country back in 2010. now we have primary surplus above 4%. tell youo allow me to the most important thing about this was the structural reforms. we finally managed to create a single pension fund, where they were many before -- where they were many defaults. we informed the public administration and incremented reforms regarding taxation systems and the independent auditing mechan

talk about the debt. >>p tucker: stop attacking american citizens.totally fine to attack politicians, including trump, by the way. but when you turn around and attack tens of millions of your own o countrymen, something is wrong. i think. victor davis hansen, thank you so much. >> i think so, too. >> tucker: great to see you. >> thank you. >> tucker: bernie sanders could run for president once again. he may. but now the left is mounting a #metoo campaign against him. is it fair? is therehe some other reason they are doing that? after the break we explain. ♪ ultimate feast time it'sat red lobster.r own pick four of ten favorites to create the ultimate feast you've been dreaming of. like lobster mac & cheese. or tender snow crab. so hurry in before new create your own ultimate feast ends. - [voiceover] this is an urgent message from the international fellowship of christians and jews. there is an emergency food crisis for elderly holocaust survivors in the former soviet union. - this is a fight against time. what we're dealing with is coming out, meeti

the market debt for s&p futures has never been this low, even adjusting for volatility in december. it was very poor. that exacerbated the moves. december was not about a fear of recession, at least the way you would measure it, cyclical companies. >> you have a price target for the s&p of 2750, a 5% increase from the current level. how do we get there? how messy will it be? will we revisit lows before we come back up? >> it will be choppy. 3000 if easily go about earnings surprise to the upside and these political risks abate, but you could have a call that a recession will not happen this year, but you can't completely discount the possibility. if that were to happen, you could retest the lows. >> it seems like we brace ourselves for more volatility. our clients looking to hedge that? >> they are not. if you look at the level of the vix, it did not react. months down 18% in a few and it barely broke 30. part of the reason is the leverage in the system in the bond complex has come out because of the short volatility etf's. that has reduced some leverage. the professionals are not b

neil: the s&p downgraded our debt with aaa. >> that had the impact on the markets. e next day the market dropped 0.7%. neil: we were shutdown, the s&p built the move. >> exactly. when you have stuff like that that happens that is when investors get testy. it has an impact on stocks and investors, the temperature of the investor also earnings in this earnings season. and we -- neil: underlying fundamentals are good. >> when we look at what is happening here, historically, the market has been up during shutdowns 44% of the time so there's not a lot. neil: you did not make that figure up. >> what matters to the market, the fed monetary policies has what is going on with china. that is what people are concerned about. we are going to see segments of the market that will fuel the impact of the shutdown, specifically those relying on government revenue. it, aerospace, they are going to feel it. neil: we are seeing the lazy night be as and loans the can't go through, seeing it in loans the can't close, it goes on and on that it spread its tentacles. >> those are economic is

. >> you remember the fight over the debt sealing, s&p downgraded america's credit rating which we haveotten back yet. why? because in their words political brinksmanship. that's where we are now and we're also facing a threat from fitch that they may downgrade america's credit rating, are you worried? >> again, i'm not a political scientist, i'm an economist and i'm not a member of the cabinet. if you look at the 46 act, the cea was put here so i would describe the data to americans and the president. >> but are you worried a downgrade of our credit? >> well, i don't think a downgrade is in play but i think we're in a world where we've had 21 government shutdowns since the 19730s and this brinksman ship goes on and on. but i don't think there's any risk given how strong the economy is we'll be downgraded. >> but it does concerns you. >> it would be a better world -- but, again, going back to the fact just to -- going to my own staffers, i have a staffer, a young person just out of college who took a 50% pay cut to work at cea from working at a fancy con sultsing firm. we need to have a

p did downgrade. >> that is right. this is reminiscent of the last time during the debt ceiling crisis of a few years ago. fish move first issuing a warning for the s&p actually did it. it is a shot across the bow government, like i said earlier. it does not matter whether it is trump's fault or democrats fault. ultimately, it is a government issue. they have got some time but they don't have a lot of time. it continues, we are in day 19, what does it mean for legislation in the next 6-12 months? >> until they can get over the hurdle, nothing is going to get done. mitch mcconnell is holding the line. there may be little pieces of a tangential legislation but basic the government to shut down in the legislative process has been shutdown pending this agreement. >> can i take it back to the point vonnie rage -- raised, drying a connection between the government shutdown in the debt going, has the story surrounding the debt ceiling changed in as much as we're going through is a different time between the democrats and republicans, democrats and the president? that this that link will make the debt ceiling a bi

increasing the debt load help on this deal, you have a target of a net debt ratio of about two times. in a downgrade from moody's, s&pn tuesday morning downgraded into triple b plus. is your strategy about getting that debt level back to an area where you are comfortable with? -- our commitment is to be investment-grade and we are investment-grade. we have to deliver edge rapidly. we will do that by the cash flow generated by the company, the company with a very high margin of the starting point of 37, it's a very cash flow generated company. we will also do some disposal to accelerate the liberation. back at twos to be times the rate of three years ago. taylor: talk about the divestitures you plan on making to get back to your core asset in your focus. business our total core assets. we have 25% of our business which is non-core. select of what we will dispose. we already in fact started the process is weak and we are dialoguing with buyers. we want to dispose for total value of around $10 billion. taylor: who are those buyers? it could be private equity is, all title buyers. some methods are global assets, some are

p-g and e serves 16 million customers. at one minute after midnight.. it will file for chapter 11 protection in u-s bankruptcy court.. as planned. that will enable the company to freeze its debts and continue operations.. while it develops a financial reorganization plan. that apparently includes borrowing a lot of money. today at a meeting that attracted protesters... the state p-u-c voted unanimously... to allow p g and e to take out five-and- a-half billion dollars in bank loans. state senator jerry hill doubts that the pending bankruptcy is really necessary. "when you look at the assets they have, the equity that they have as a company, they're very strong. they have liabilities. they could pay those over time. it could be worked out in some way. but the easy way out, the way that they can avoid paying those victims, the way that they can avoid taking care of ratepayers, is to file for bankruptcy.." p-g & e told the s-e-c it could be could be on the hook for 30 billion in wildfire liabilities. tonight an advocacy group predicts that ratepayers will get stuck with part of the bill. "you know, the message to customers is really bad here. it's that, we re more concerned with

to the wealthy and well-connected while young people are struggling with student loan debt, while families can't have p prescriptions filled, while infrastructure crumbles around us, that's not how we build a future in this country. you know, the way i see this is it is this fundamental question, who do we think our government ought to work for? this economy? sure, there are great numbers. the rich got fabulous tax breaks. wall street has been up and down but back up. but the lived experience of tens of millions of people across this country is the squeeze. it's about flat wages and increased cost for housing, for health insurance, to get your kids educated. we have a country that's getting richer and richer, but the problem is that too much of that wealth is flowing just to a thin slice at the top. and everyone else is getting left behind. that's not how we build a future. >> the president has obviously had his fair charge of racially charged things to say about you, if not outright racist. yesterday hakeem jeffreys called the president the grand wizard of 1600 pennsylvania avenue. is that an appropri

p 500 shed two-and-a-half percent. (pam) meanwhile... the u-s national debt has reached a new high.the treasury department released its latest numbers today. the report says -- at the end of last year -- the national debt stood at more than 21-trillion dollars. that's more than two - trillion dollars higher, than when president trump ce. the debt has bounced up -- in part-- because of tax cuts passed at the end of 2017. drastically cut the corporate tax rate ... and cut revenue for the treasury. coming up tonight at 6:45... china takes a trip to the dark side. we'll tell you what their scientists are hoping to learn from the other side of the moon. and what has been called the safest big city in america, is seeing a spike in crime. the latest numbers from san jose. (ken/ots) contrary to a downward trend in both san francsco and oakland, violent crime is up in the bay area's largestcity. kron four's rob fladboe has a look at the numbers and a conversation with san jose's chief of police. violent crime is trending upward in what not that long ago was consistantly recognized as the saf

debt? neil: what happened with s&p experience, when they dinged the aaa rating? there was a downdraft. there was no shutdown going own but it was just the kabuki theater and fear game that prompted it and we survived it? >> treasury went on to have the biggest bull market after that. neil: right. >> who really knows what that actually means. >> it does help to have a printing press when you talk about downgrading. somehow the printing press will come into effect ultimately. neil: i always feel that is what sort of buys us some staying power here. we can do that it is sort of cheating but it does get you past the hurdle. >> it does get you past the hurdle. i disagree. i think fundamentals look better with recent selloff. to your point 15 times earnings. average is 16. neil: future earnings. >> future earnings, correct. neil: certainly on the low end historically. >> correct. the average is 15.9. neil: 15.87 but who is counting. i literally made that up. i have no idea. >> i actually think this is positive thing. yes you have the governmental shutdown and china trade war. what happens if

debt. kind of like 2011 remember when s&p lowered the triple a? neil: remember the government wasn't shut down. it was just the theatre and professional wrestling nature of this back and forth that prompt ed them to say enough with this. >> but don't forget in 2011 that was the first year the s&p fell, it was down that year and also consumer confidence dropped 20% because of the shall we say dysfunction in washington neil: weren't they worried too we're getting up against our debt ceiling and that march 2, you know, they got to imagine this was dragging on until then, then it gets to be that? >> we were also in a very different economic scenario. we were much higher unemployment , it was, we didn't see the same wage growth, so there were a lot of things going on. neil: so did fitch over react? they didn't move, they're reviewing it right so let's say they do downgrade it? >> and say look, we're looking at it. we put out a statement all the time saying we're looking at this, we're considering it. it's an important part of your analysis. neil: but i

p is because they lack financial discipline. >> the biggest mistake that people make innot understanding the threat of debt and not being intentionalur money. decide you're going to happen to your money and not let things happen to you. >> investing in a 401(k) or similar plan puts people on the path of building wealth over time. the sooner you start, the better you will be. >>> if you're paranoid that programs like siri and alexa are spying on you, we have just the device for you. it will block your virtual assistant from hearing everything you say. >> reporter: with tens of millions of smart devices and bones around the world, security is a concern. there has been one case of an alexa device eavesdropping. developers say that is one time too many. it is called project alias and it once a help prevent your virtual assistant from hearing what you say. they refer to it as a teachable parasite. it sits on top of your virtual assistant and let you be in control of more than what it can hear. you build the device yourself and then 3-d print the case so it fits over the speaker of your virtual assistants. it plays white noise into the s

p down 9, nasdaq down 29. morgan stanley and american express on tap. the student loan debts putting a big dent in young people's pockets. that's not the only thing it's dragging down. wait until you hear the new warning coming from the fed. it's a craze that swept the globe. looks like it won't be ending anytime soon wh soon. why pokemon go may be bigger than ever. you're watching "fbn: a.m." ♪ go, go, godzilla. ♪ to be nobody but yourself in a world which is doing it's best to make you everybody else... ♪ ♪ means to fight the hardest battle, which any human being can fight and never stop. does this sound dismal? it isn't. ♪ ♪ it's the most wonderful life on earth. ♪ ♪ lauren: let's get you caught up on what's happening now. president trump will head to the pentagon today after meeting with senators on the u.s. involvement in syria and afghanistan. rand pai paul said the presidens still committed to pulling troops. lindsey graham warns declaring victory could provoke isis. yesterday there was a suicide bombing in syria that killed four americans, including two service membe

the debt limit, here again, expiring on march 1st. this is the date, but the census pureau is working all yearlong. let's turn to our panel here. i'm going to turn to you. you've lived through how many of these? >> more than i'd like to count. >> what is the off ramp at this point? it seems legislatively there isn't one at this point. the president is claiming he has the right and ability to do this national emergency thing. yet, he hasn't. is there anything besides that you see that could end the shutdown. >> the only thing without president trump stressing the limits of authority. there's a republican controlled senate which somehow every time donald trump talks a about this, he leaves this out. there are bills that could end the shutdown. the other person we never hear from, we never hear what mitch mcconnell thinks or is doing. he seems to be in hiding. >> where is he? >> he's allowing the president to dictate his job. he's not moving forward on anything. he is letting the president say i will veto whatever so mitch mcconnell is not bringing up any bills and not do

performed on the s&p 500, we put this together -- they underperformed in the main index of the last few trading sessions. what are you telling clients in terms of exposure? >> in terms of the debtket? >> across asset classes. >> this is the time to go for cash. nothing looks very exciting. i would go for emerging markets, if anything. but cash would be king at the moment rather than equities. i would go very light on equities, and if anything i would go towards emerging markets. you have a little bit of leeway over the next month or two in terms of u.s. equities, but i think the pricing is going to be all of the downward side. >> thank you very much. we will keep that in mind, cash is king. he stays with us. still had on the show, we speak live with the uae energy minister in his first interview of the day. that's at 8:30 dubai time. senior ministers are set to be urging theresa may to seek help from her archrival, jeremy corbyn. he says that if parliament kills her brexit deal this week, there should be a general election. this is bloomberg. ♪ ♪ let's get you another quick check of the latest business flash headlines with christine burke. >> thanks. the cofounder of the chines

debt cap. is thisdo have with it story in the s&p reporting how economy class tickets were being sold.error snapping up those tickets as word spread on social media. return seats from the and him to north america just $5,000 each. yvonne: the you have to wonder if they will on a that. rishaad: a very bullish forecast coming. brea electric jumping up as much as 4%. a new board of directors. there you have it. this is bloomberg. ♪ rishaad: some of the stories trending across the terminal. topping the terminal is green light capitals worst year, a 34% decline. president trump is calling for a meeting with lawmakers on a border security meeting. -- new year celebrations in different parts of the world from sydney to new york. and him bloomberg.com. warning they will take part in nuclear sanctions -- if sanctions are not relaxed. he's also willing to her for the talks with president trump. have a look at the stories on president trump. yvonne: now a response to the new year's address. president trump also looks forward to meeting with the north korean leader. he welcomed kim's comment about

s&p has put the company on negative watch because the future debt implications. continental will take $160 million after-tax charge on his hong kong comedies said last quarter as it faces rising competition. that flights are generating higher costs after corresponding gains in revenue. beend routes have not reassessed at since it emerged in 2010. the cost ofiked its california theme parks by 10% ahead of the new star wars land. the price of a one-day ticket in the summer on holly at weekend -- on holiday weekend will jump to $149, the cheapest ticket at $104. disney aims to better manage demand. th emost expensive disney ticket costs $1949. let's take a look at some of the stories trending across the bloomberg universe. dominatingutdown headlines. president trump has four days till many federal workers miss paychecks. softbank set to be downsizing its event to $2 billion. a japaneseic toc, billionaire giveaway tweets brakes on twitter record. 100 lucky retweeters will split 100 million yen. those stories trending on the bloomberg online or on the terminal. haidi:

little bit of movement out of bonds into quality stocks, household names with low debt, high profitability, think of color pgamble, well-known names people feel comfortable investing in right now. they have a better chance of surviving volatility. maria: is the big worry china? yesterday when we saw the china economic data, that was the underpinning rattle for the market and now we're wondering who is next and a number of companies have talked about the weakness out of china having impacted their numbers, like an apple. do you think this is going to continue with certain companies? >> i think china will be mentioned in many different earnings releases this quarter. they've been the growth engine for the last decade. if they're no longer selling into china, that's going to be a big issue for future earnings. maria: 40u dhow. >> harris: how d.maria: how dot markets and putting money to work. >> valuations are coming down and they're starting to look attractive again. is the global economy going to grow at a solid speed, are we going to see less geopolitical tension? i think if we can answer those questions it

that was p together by a money manager that is based on information from the federal reserve and the commerce department and "the wall street journal" and it shows the rise and fall of corporate debt as a ratio of corporate debt to the size of the economy, going back to t 1980s. each time there was a peak in that ratio, the economy went into a recession. every single time. now we seem to be at a peak are you concerned about the level of the debt, its relationship to the economy and the possibility of a recession? >> i am not overly concerned about the amount oft d because the interest rate that companies are paying i so low right now. the leverage to the economy is definitely something to keep an eye on,ut that' more relevant for assessing the country risk. is the u.s. government going to be able toay back their debt. with corporate bonds, you are lending money to corporations.d in the investment grade market, most of these companies are household names and very solid credits. they have been borrowing at lower interest ratesnd borrowing at the very long end of the yield rve. th means that they aren't going to have to pay off tt debt tomorrow, so they have time to grow into that. s

debt about two times. you had a downgrade from moody's s&p, downgraded to triple b plus.y of getting that that level back to an area you are comfortable with? toistophe: our commitment is be investment grade. we have to deliver that rapidly. we will do that by the cash flow generated by the company. the company has a very high margin for a starting point of 37%. a very cash flow generated company. we also do some disposal to accelerate. our intent is to be that to two times debt in two to three years. taylor: talking about some of those disposals that you plan on making to get back to your core assets and your focus. christophe: 75% of our total business are core assets. 25% of our business is non-core. in this 25%, we will select some assets we will disclose -- dispose. we have started the process this week. dispose for a total value of $10 billion. taylor: who are those buyers? christophe: pharmaceutical companies, tech companies, all kinds of buyers. some assets are more regional so it depends on the assets. taylor: talk to me about competition. we have seen a lot of m

debt. forget doom and gloom. -- we willors says tell you what is behind a revised forecast. let's get a check of the major u.s. averages. s&p00 down .3%. there are some great performers, like gm and pbh. .4%, nasdaq down .5%. we have the bank earnings on monday. the british pound is that 128.58 , strengthening on headlines for a like maybe there might be an extension to article 50 and the government saying no, no extension. amanda: i am looking at treasuries today. we had the first auction of 2019. it is showing the weakest demand in a decade. have a look inside the terminal at the bid to cover ratio on treasuries. this is a level not seen since 2009. the problem here is the 2019 calendar involves a fair amount of issuance. the government will need to issue treasuries and the demand needs to be there. one of the issues facing bonds was we saw the rally on inflation. one of the questions is when will you see real strength in yields? it has not really been playing according to the playbook most people would expect at this point in the cycle. jeffrieshe auctions, is calling it a hairy year for treasury issuance and for treasur

p. the parent group has been facing growing concerns and increasing pressures over its mounting debt as chinese government cracked down on outbound investments. plane to borrow from a group of flinders to cover these expenses, including fuel, maintenance, and landing fees. recently we heard they are looking at potential investors to start selling dollar denominated bonds. the latest saying a possible net loss of 500 million won for 2018. better moves -- better news for alibaba, with better than expected quarterly results. we will break down those numbers next. this is bloomberg. ♪ shery: this is "daybreak: asia." haidi: i'm haidi stroud-watts in sydney. 41% riseosted a importantly revenue. he was able to offset slowing online sales by expanding into cloud computing and entertainment. eric wen joins us. investors read the sovereign leave as it came on the end of the day when we saw 20 chinese profites issue dire warnings. overlooking and a peak for alibaba, in terms of some of these numbers at the lowest in three or four years? it is typically a strong december quarter. think it is in li

in the election, that s&p 500, he said it was one big bubble and he was right. that was out of control, the fed had to -- debt out of control and the fed had to tighten. settling, he embraces the whole thing as vindication of the glorious trump economy. huge rookie mistake. the market has nowhere to go but down. w have seene that it has a long way to go and it will take donald trump with it. the second thing is he has embraced the greatest economy ever. that was a mistake. when he was sworn in we were in month 90 of the business cycle, where past the second longest cycle in history which was the 1960's, and we are now four months from the longest, so recession is written all over the forehead of this economy -- this year or early next year -- and you should not embrace an economy that is only going down. david: if you are right, a recession is in this year or next year, if we knew that what could we do or what could the president do? what can they do to prepare us for that to make it less severe or long? michael: there is not a good answer, but he should take a leaf from ronald reagan's playbook. did not stop

p of the fastest moving and most aggressive stocks a lot of them are leveraged. a lot semiconductors netflix is a big component, capital goods companies, very cyclical companies some of them with a lot of debt less than three weeks. you see the s&p 500 up almost 10% and splv is the flip side of high beta. low volatility stocks. they have obviously underperformed and dial it back one year it's the opposite story. the high beta stocks were relatively depressed in the overall market they have made the biggest bounce there in white here still down 16% on a one-year basis, but more than double the decline in the overall market and the s&p volatility index and the etf have done their job. they have basically protect it had you from a lot of the downside here. the question is how do we interpret the fact that it's a very risky high beta stock leading the way? it's probably what you want to see after you have the strong reversal to the upside you kind of want to see people raise their risk appetites and go into the most beaten down stocks it's not clear though that from here on out if this rally were to continue that would be the way to go. they probably have the sharpest bull back if we get one an

debt versus where it would have been sold a year ago. we will see how that affects their underlying credit worthiness. the s&p 500 down about .9%. bulls really trying to take charge, lots of momentum here, but this chart points to a stall in momentum at the same time. relative strength index on the s&p 500 at the green line or below 30. that tells us the conditions are oversold above the red line at 70. we see that during the rally much of the time period we were overbought, and this downtrend, especially during the bearish action last year, it is interesting to note the highs of this downtrend are really holding to a bit of a stall in momentum even as stocks climb higher. this chart may suggest that unless the bulls can break out with more momentum that there could be bearish conditions ahead, perhaps accompanying that earnings season ahead. you talk stocks, i'm talking the bloomberg dollar index. we heard comments from fed chair jerome powell today. we seem to be a little bit optimistic. the bloomberg dollar index closing near the highs of the session. you talk a lot -- he talked a lot about how there are favorable dynamics an

p, actually cut the u.s. aaa rating because we bumped up almost against that debt limit and some of the political dysfunction why didn't you do it then why now? >> we actually did have the u.s. rating on watch in 2013 when there was a similar debt limit issue combined with a shutdown so we have, in the past, sort of recognized the urgency of these issues and we still do for us out of shutdown and debt limit, the debt limit has us slightly more concerned. as i said it is something that is more of a tail risk. >> charles, it's interesting if you're kind of judging credit worthiness or solvency, we would be paying back any debt payments that were perhaps skipped even in a worst case scenario what do you think about what the rating conveys the 2011 episode, yields kept going down during that whole crisis. >> yeah. it's really about the credibility of policy making and our concerns with the u.s. are not just short term. they're also medium term they're to do with the fact that why do we care that the u.s. has credible policy making because there are challenges in the medium term. you have the deficit rising, sort

debt in the last 17 years. thousands of people killed and wounded and for what in the answer is not much. p just seems like if you are looking for a crisis, constitutional crisis or something that would undermine democracy as we practiced for 240 years, it's the idea of unelected, the unelected subverting the power of the elected, right? isn't that democratic by definition? >> the problem is the unelected are being supported by many of the elected to support this decision to lead. there is another problem with this. historically when we leave as we did when we leave vietnam, we are all permanently. people know onceon we leave syr, once we get completely out of iraq, one once we get completet of afghanistan it's over and president trump is going to do that. that's very clear. this pause is just that it it is a pause. we had to get out of northern syria quickly. the reason for that is there were tens of thousands of troops poised to attack the kurds. the terrorists who have been attacking turkey in northern syria. we gothe the syrian government to go in there and we got out. now we have creat

p 18%, its largest increase since it launched its service. netflix says the extra cash will help to pay for its investment in original shows and films and finance the heavy debtsumed to ward off its rivals. >>> faceback book is poised to support local news, promising to invest $300 million in news programs, prap partnerships an content in next three years. >>> burger king is flame grilling president trump with a hot tweet. >> due to a large order placed yesterday, we're all out of hamberders. just serving hamburgers today. >> it came from a presidential tweet typo. because of a shutdown, i served them massive amounts of fast food. i paid. over 1,000 hamberdehamberdehambe >> and we'll gladly feed the clemson tigers any day, a real feast and celebration, no ten-cent dipping sauces on silver platters. >> those typos. >>> president trump's nominee for attorney general says he won't fire robert mueller without cause. >> my allegiance will be to the rule of law. >> the latest on today's hearing in washington, d.c. >> and the federal government shown continues. the big effect today right here in bay area. we'll explain. they say you should always listen to your hear

p -- severance payout of 2.3 to $4.46 million while wildfire victims may be left out. michael finney explains. >> wildfire victims, they, too, will be hurt, because with a bankruptcy all debtore filing are up for grabs and creditors get first shot at the cash. >>> a pg&e bankruptcy happened before back in 2001. customers are still paying a charge on their monthly bill because of that. the payoff bonds sold by the state. circumstances are different. the case tied to market manipulation by enron and others that led to a sharp rise in wholesale energy cost. pg&e faced a credit crunch like it might face now due to down grades. that means natural gas sellers are concerned about selling to pg&e on credit. the state might have to step in again and issue bonds for pg&e. the department of water and resource bonds part of that p&e bill today. the good news, the bankruptcy isn't expected to impact services you receive. reporting live in san jose, matt keller, abc 7 news. >>> thank you, matt. pg&e's bankruptcy is going to continue to generates questions and we're committed to coverage. you can find more answers online, abc7news.com. >> happening today, the vote to disprove of one cong

i actually remember '98, the ken starr report, the russia debt default and the collapse of long-term capital management. the s&pwn 19.4%. never a bear market. never a 20% loss and we still had a really good run left in the market in terms of the technology boom back then. so we'll talk about that. but let's move on to something that is the top story in the wall street journal. in addition to -- we're going to talk about north korea but also the showdown at the border. u.s. authorities forced to use tear gas on approximately 150 migrants who tried to enter the country illegally. with no deal in sight for funding of the southern border wall. joining me now fred flight. great to see you. what does this mean in terms of the border security and the government shutdown over just funding for a wall. >> good to be here. happy you new year. let me add toking the story that the mainstream media is trying not to report. border patrol agents added that the group, the rock h rock throg migrants tried to lift children over the wire but agents were unable to help the children because too many rocks were being thrown. dagen, o

debt. the repercussions hitting the industry. this is bloomberg. ♪ alix: a lot of headlines and not a lot of action in the market. the s&p is up by three.me good and bad earnings coming in. the markets are not really moving much on that. european stocks are coming up by 1%. the action in the macro and lines is what happened with brexit. that currency is not moving. what kind of a poor downside was the asymmetric rift on brexit. they will start debating in just a few minutes. crude is holding onto to its games, up by 1% as the venezuelan oil sanctions relate to the market. one of the largest utilities falls to its knees. for protection. fires drove the company into bankruptcy grid join us on the phone is a securities analyst. thank you for joining us. it happens now? does it get where you want a more constructive view on equities? now, it is certainly shareholders that are upset, one of the most vocal has been blue mountain. they say it's not right to stakeholders. reasons they say it's not right is because pg&e a not be responsible for one of the biggest fires, which they warrant. they could've raised rates. they said that bankruptcy ad

debt was assassinated. it brought me back to the moment in 1968. the balcony leads back into dr. king's room pthing is. the beds are still unmade. are still cups scattered around the room. can feelwalk in, you the restless spirit. you can feel it. you can taste it. it is still in the room. a dream deferred, unfinished business. as you well know, martin was assassinated. he stood in the pulpit at the temple talking to 2000 people. what was he talking about? it was ultimately about the nudity. he was insisting these garbage workers be treated with dignity. dignity. and ladies and gentlemen, the fact of the matter is, many of you remember exactly what he said. it was close to the last sentence. he said, let us move on in these powerful days, the days of challenge, to make america what it ought to be. to make america what it ought to be. we all know what it ought to be. that was among his last words spoken, to make america what it ought to be. many of you in the room have , but we have learned in the last two years, it does not take much to awaken hate, to bring the folks out from under the rocks.

debt. you don't seem to be worried about that? >> we lost it already. s&pating back i think in 2011. they haven't replaced it yet. despite that, despite that, the aa-plus rating they gave us we had huge rally in treasurys. i think fitch is, it was sort of not off-the-cuff comment. but more of a conditional comment. we're only talking about, the government shutdown is 18 days, 19 days. stuart: 19 days. >> talking about early march. then maybe downgrade depending what happens to the debt ceiling. the more important consideration for investors now with the treasury market is poor auctions. the yield has dropped. yesterday we had the worst bid cover for the three-year note auction in 10 years. >> what does that mean? so what? >> it means less participation. means that dealers will be stuck with larger amount, price down the inventory, mark down the inventory to sell it to the street. stuart: if you price treasurys down, the yield goes up, doesn't it? >> exactly. stuart: that is what subpoena happening now. you're at 2.73 i think it is. you're not worried about

cap stocks they're seeing a lot more debt they're much more leveraged now than they were in 2009 which is the opposite for the large caps. leverage right now for the s&p00. 3.9 times versus 1.6 tienmes fo the s&p 500. the small caps as a total dollar value only are 3.5%. >> is this the year they get punished for higher leverage >> it depends what happens with growth overall if we see a significant slowdown, if we see interest rates continue to go up, that's all going to combine to make it a more difficult year for them potentially. >> rick, what are you looking at today? i mean, we got some -- a little pullback in the consumer confidence but i guess it's still elevated levels long-term >> yeah, no. that was actually a fairly large pullback but it is a preliminary number on michigan. to me the big story is we could talk -- and i loved kayla being here when kayla left in september, a couple things changed. the fed and volatility when you think about how much you really know about what's going on in china in terms of facts and numbers, we don't know that much more add in the closure, i think mike hit it markets either can be pushed or can't be pushed. th

debt was not in danger. as long as this remains the case, perhaps there will be no downgrade of the aaa rating. neil: when s&p did it many years back they were not doing it on the basis of shut down but kabuki theater of threat of one and back and forth with games being played with numbers and they did cut the aaa rating at time. do you think ironically, won't be a shutdown that does it but just this fingerpointing and blaming going on both parties accounts? >> gee, you know, i don't know if that's reason enough for a credit ratings downgrade because of political friction. i think you need something more than political friction. for instance, suppose, we had the dollar exchange rate tanking, treasury bond yields were soaring, markets were in disarray because of the government shutdown, maybe then, maybe then there might be some reason for a credit rating downgrade but, those circumstances still are being met. they're not occurring. you know, when we look at the long-term health of the u.s. credit rating, we do pay a lot of attention to the role of the u.s. dollar in the u.s. economy as well as the role of the

growing -- so you have a strength in s&p and greatest strength in russell, however, there are some bellwetters that is concerning fact that confidence level and debtl for all of this is bad. >> another voice in not but voice of cfx because there's a company that ununderstands what's going on with railroad company over last couple of months everybody was talking about trade, tariffs, interest rates what's going on with brexit government turbulence all of these things must have some impact on the way you're running your business. but we go back to the same place we were a few months ago everybody us, and our customers are still very optimistic about business 2019 buying back 5 billion of their own stock isn't that when it comes down to hysteria focused on worst possible outcome and that's just not happening. >> i love how bank of america bought a stock back at 26 and goldman goldman sack buying it become and we have stronger earnings and interest rates are at bay and cannot test the highs because another 10% from here. >> you made comment that fed blinked that is charitable l of what it looks like he's doing and if fed futures -- it is the right --

p with her from wall street analysts as well. so, this is a white house under pressure. throw into the mix the mueller investigation, the situation in venezuela, the debt ceiling, the poll numbers, this is a president who is facing a lot of intense political and policy pressure. aarlet: kevin, you paint remarkable picture, but the point is that it's taken 35 days to get the republicans and the democrats to agree to some kind of short-term solution to temporarily reopen the government even if only for three weeks. is it realistic to think they can negotiate a deal over the next 21 days to keep the government-funded? kevin: that is such a great question, and yesterday when i spoke to democratic lawmakers in congress, they are hard-pressed to provide any type of funding for a wall. itself has become symbolic for them as something, of a nonstarter. when i interviewed the homeland security chairman of the house committee, bennie thompson, a suggested as much. they are willing to get onboard board with some type of varying type of security along the border, whether that includes fencing, drone surveillance and whatnot, but they are not willing to just give a

good amount of debt on first data balance sheet, move that over to the combined company, it is less when you look at the leverage ratio and become an investment grade company in the s&pnd generally think this will be very positive for them with $900 million of cost savings, $500 million of revenue synergies over five years, saying it is adjusted gps let's keep an eye on fiserv. some pressure, all stock deal, short the acquirer, but not the greatest market reaction. >> no. up initially, interesting. i think that, first of all, congratulations to frank because this was a heavily indebted company, stock was at 16, big spike, came back on a miss they bought this clover point of sale that's pointed out as being something that fiserv wants. if you go to the website, you'll see this is a theme that i think people at home may be tired of hearing, but don't be. this is creating another great fin tech company and that's what people want. is it square square is unbelievable. >> pay pal, $107 billion, a behemoth >> yes. >> no, it is not. >> it is not it is not. >> but it is big there is a look at the deals we have two weeks in the year, $74 billion deal this is 22, gold deal thi

after his partial divestment in en-p plus, the treasury department would have allowed deripaska to use a portion of his shares to pay a very sizable debt to a russian bank called v.t.b. so with the deal, deripaska's overall balance sheets significantly improves. this massive benefit to deripaska alone is enough to question the merits of this deal. moreover, v.t.b., the bank, the russian bank, is already on u.s. s.e.c. -- sectoral sanctions list related to the invasion of the eastern ukraine. by allowing v.t.b. to participate in this agreement the treasury department is undermining our overall sanctions regime. in effect, the administration is signaling to every entity and individual that has had u.s. sanctions imposed in response to russia's aggression against ukraine that they can continue to undermine a sovereign nation without consequences. finally, this deal allows deripaska to maintain a 44.9% ownership of en plus. while this falls below the treasury department's automatic 50% threshold for ownership, it's still too high. perhaps deripaska has given up control in a legal sense and technical sense, but make no mistake, he will be t

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--p your some of you have already one of your priorities is to deal with the budget and the debt.e talked about what is on the agenda for him as chair of the committee. [video clip] >> the first priority is to resolve the spending limits for the fiscal 2020 budget. toay that because we revert the law under the budget control act of 2011 and if we don't make a change, defense spending would be cut by 11%. nondefense spending by 11%. would severe -- feel that severely. under -- negotiate new caps for that year and after that, we pass a budget resolution that reflects not just democratic values, but the promises we made during the campaign, the for the people campaign where we deal with health care costs, creating jobs through infrastructure and the budget will reflect those. >> what will the numbers look like for health care? >> i am not sure exactly what the numbers will look like right now. one of the things we need to do partially because we have i -- a diverse caucus. -- we need to consult with all of them to see what their priorities are and that is what i have done in putting