it is pretty much stable and ahead of that decision by the reserve bank of india, they tried to address sluggish growth , showingnomy expanding the weak us of growth we have seen since the beginning of 2013. to a central bank governors elsewhere, we are talking about kuroda and the first word news. with theng in japan prime minister has announced a massive stimulus package, dealing with a slump in exports. package is worth $239 billion, roughly half of the stimulus measure. they say it will boost growth by ..4 percentage points [inaudible] >> i think that boj should consider the impact of these policies. for surprise call producers. it would extend the current limit for your. the abrupt u-turn has left the oil market wondering what will emerge. did banks in new zealand are [no audio] blow to austrian banks which already have major financial challenges back home. the indian government said to be weighing the easing of lending roles and allowing wider access to funds. that is five levels below what is permissive under current lending rules. >> global news 24 hours a day, powered by more t

theaad: i want to move to reserve bank of india.ave been so many rate cuts that nobody can qualify what happened. what does the reserve bank do now. what about unconventional measures? what do you make of them? >> definitely the governor has moved in. -- it is the first of its kind in india. the -- fromdo with the banking sector to the oil sector. people are ascribing this to government bonds. that seems to be one of the key reasons why there is general apathy for the credit sector. along with the unprecedented move in india, there is an attempt to bring down -- between the government bonds. be hope is that there will with the lesser incentive to own these bonds, you start transferring -- i think this is theeat step in making signal for the yield curve to flatten significantly from the current level and we are seeing that happening as we speak. is this one and done or are we expecting more operation twist from the rbi? >> this did not, according to us, be a one stance. it will not achieve the desired outcome. this has to be calibrat

we did have the minutes from the reserve bank of australia meeting on moments ago. we have james mcintyre joining us. we have the rba saying they will take another look at its outlook in february 2020. the tendency seems to revise those outlooks down. james: that has been the case because the economy has tended to underperform. andgh they have said growth unemployment were broadly consistent with forecast, if we look at those indicators, we need more data over time and that is good for the rba, the extended break. seems the labor market and things like wages and gdp outcome were a touch below. we have yet to see where the turning is in the economy. that is what was quite interesting today. you are referring to home loans data. this is a new number showing an increase of 2%. considering there is no data history here, too percent on what? the statistics agency promised over time these stats will become more fulsome, but the lift is showing we have a continuation of the housing finance pickup we have seen over the past few months. the housing market has turned around s

finance don't want to comment on their central bank, but broadly speaking, it seems like the rba, reserve banknot keen about doing bond purchases. not keen of doing quantitative easing. a lot of central banks are trying to get away from that. youey speaking, would rather not take steps to do infrastructure spending? do something that would help the economy in this time when things are a bit tight? are you content to see that kind of step taken and hope that it works? mathias: our economy continues to grow when quite a few other economies around the world have been shrinking. have a very significant infrastructure that has been programmed with more than $100 billion over the next decade. we will continue to make these judgments. you are right, monetary policies is a matter for the reserve bank. the reserve bank likes -- makes these decisions independently. the reserve bank governor made it clear that he can't foresee a scenario were they would be required in australia. our economic circumstance does not warrant that sort of discussion. our economy, in a global context, continues to perform comp

the bus and so clearly it's of a sensitive topic and in the current context if you see today the reserve bank of india the central bank in india who had back on raising rates all cutting rates further because of the price and in prices and also the. rising prices of other food items so clearly you see how sensitive it is and they were widely expected to cut. that key interest rate to boost they cannot make good in india but clearly they actually. were a bit cautious this time and right the power of the humble onion ashutosh panday joining us there from bonn thank you. japan's government has unveiled a stimulus package worth over $200000000000.00 once private spending is included week exports and a drop in consumption have put pressure on the world's 3rd biggest economy which already has a debt burden twice the size of its economic output. it's quite the cash injection $13.00 trillion yen that's more than $120000000000.00 is the sum the japanese government thinks is needed to kickstart the economy. the reasons for the move are manifold. the purpose is to accelerate recovery from natural disast

every economist in our survey expects a rate reduction from the reserve bank of india. how far the r.b.i. will go in just a few minutes. this is bloomberg. ♪ nejra: this is "bloomberg daybreak: europe." i am nejra cehic in london. manus cranny is in vienna. we will catch up with him again later. right now, we are awaiting a decision from the reserve bank of india and what is expected by every economist surveyed by bloomberg is a sixth straight rate cuts after the challenging gdp data we had recently. questions also being asked about what kind of forward guidance we are going to get and how much more we could actually get support from monetary policy. some asset managers saying unconventional policy measures will have to start to come in for the reserve bank of india. so we await that decision from the r.b.i.. meanwhile, bloomberg economics in its preview says the drumbeat really is getting louder for that easing on those gdp woes. they think the economy has slowed abruptly. the r.b.i. needs to make a deeper reduction to rates, dropping its baby step approach. juliette s

the reserve bank of india, the central bank will be -- as ok as long as the rest of the asia fx are doing yvonne: happy new year if we do not see you. from bank of america merrill lynch. the bloomberg new energy finance summit, switching gears, taking place in shanghai and we are discussing how china carries new levels of sustainability while also chasing economic growth. let's bring in justin wu, our new energy finance head of asia-pacific. joins us from shanghai. talk us through what is on the agenda hear this coming your in a slowingt of cop-25, economy. what does the government want to focus on next? >> the chinese government is all about putting its economic policy along with his sustainability agenda. essentially we see that the economy is slowing in china and then it is trying to shift to a higher value economy focusing on things that produce higher values such as innovative sectors, high tech, electric field pulse renewable energy away from heavy industry. those are things that are basically going to be enough for china to hit its paris goals, the last round of climate negotiation

the decision of the reserve bank in australia. the market extending declines.1% down in the session in sydney. haslinda: that is it from bloomberg markets: asia. bloomberg daybreak middle east is next. ♪ taylor: i am taylor riggs in san francisco in for emily chang and this is "bloomberg technology." coming up in the next hour, clicks before q. black friday sales breaking an online record. how the holiday weekend spending will turn out following cyber monday. plus crypto crackdown. , china continues its assault on crypto exchanges, and currencies are feeling the pressure. we will have the numbers.

of money on holders to monitor on the back of the reserve bank can create gratin call behind providing any hunting money on banks or of the community by making the national credit available for many purposes for a manufacturer to meet him or all during my coming period to unlock and remodel her car and her money on a good reason why people are always needing more granting and i have immediately available. that's a contribution to the economy. regulatory system goes a step blish banks were regulated the commercial investment banks were separated cut back for risk in this practices that could harm private people. there had been remember no financial crashes during the period of regulation by the 1970 s. that changed. the sort of getting the huge increase in the flows of speculative capital just astronomically increased an enormous changes in the financial sector from traditional banks to risky investments. complex financial instruments money manipulations and so on increasingly the business of the country isn't production at least not here. the primary

indian markets fell after the reserve bank unexpectedly kept interest rates on hold. it was the fifth time this year the r.b.i. downgraded its outlook will economists had been expecting a sixth consecutive rate cut. policymakers lowered growth forecasts to 5% from october's 6.1%. heldg, the jet maker, has talks with pilot crew -- pilots and cabin crew in attempts to build trust in the changes it is making to the 5 -- two the 737 max. it is confident the new software regulatory approval. it had been grounded since march. say boeing isrews a long way from regaining trust. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. opec has reached a deal on oil supply. the market forecaster turned to a surplus next year. ministers in vienna agreed to deepen the target by 5000 barrels a day, normalizing the supply restrictions that had been in place for most of the year. still a lot of details on how they are going to comply. david: the decision must be rati

poised postcrisis and post- regulatory framework after the crisis, of how banks should be, how much reserve bankhould be holding and what that looks like. it was very clear in 2008 but is not clear now. and that leaves the market vulnerable. because you don't know how much a bank needs. gerry: they draw down a balance sheet there's was to building up. is that going to ease those particular? >> it will ease it somewhat but the fed's had to put it in for this emergency and they haven't been able to pull it back. and so the emergency has extended to a longer time. the long-term question is what should be done to sort of get us out of the permanent emergency? gerry: i want to speak about 2019 was inserted interesting cut by central banks the federal reserve. >> if you turn around a bunch of magistrate hikes in 2018 and 2019, the cuts particular in the context of the unappointed picture in the economic picture there are very few people that see this. gerry: what is driving this summer he thought maybe jay powys feeling under pressure? >> i think that the tough tough question. i think most of the acad

on the back to be a reserve bank. behind providing an. outing money. to the community by making. money for a manufacturer or on going. to an. arm and a money on a why people are always needing more and i haven't. that's a contribution to the economy. regulatory system was established banks were regulated the commercial investment banks were separated cut back for risk in this practices that could harm private people. there had been remember no financial crashes during the period of regulation by the 1970 s. that changed. you started getting that huge increase in the flows of speculative capital just astronomically increased an enormous changes in the financial sector from traditional banks to risky investments. complex financial instruments money manipulations and so on increasingly the business of the country isn't production at least not here. the primary business here is business. you can even see it in the choice of directors so a director of a major american corporation back in the fifty's and sixty's was very likely to be an engineer as somebody who graduated from a place l

he was predent of the federal reserve bank of new york.t that time, economic growth was way down, but prices were way up. puttinghe economy in a period known as stagflation. by 1980 gdp was down to 3%, and inflation was u to 14%. >> ronald reagan was elected president in november of 1980, and he vowed to get the economy growing again. but volker who committed stopping inflation, b keeping the money supply tight and interest rates high, found himself at odds with with the president for years. >> nobody in the federal reserve, certainly not myself likes high interest rates, they're no fun. >> and they weren't. the fed funds rate reached highs 20%. six month bank cd's were paying more than %. construction slowed, farmers were reluctant t plant. even though rates began to fall in 1982. unemployment peeked at just below 11 everyone from the administration volker, he stuck to his plan and by 1984, inflation had plummeted to 4%. >> it's never very pleasant i suppose to tell someone that some pain in the shortun is good for the long run. >> then i

this is all about the government repo market and when we talk about reserves at the bank most of those excess reserves are locked up at the fed because of regulations that require the banks to have so much excess liquidity. >> let me slow you down for a second. i asked my staff to give me numbers on student loans, auto loans, we are at $1.6 trillion in student loans, 44 million americans have student loans, almost 30,000 the average death. auto loans were at $1.26 trillion, 107 million americans are more than 3 months behind. corporate debt, 10 trillion, 1.3 trillion leverage loans, 1.2 trillion in junk bonds and there's a lot of lending going on out there. are we getting overextended again and that is what i'm worried about. >> the gentleman from colorado is recognized for five minutes. >> do you want to answer that? >> i was going to comment i think it is a good thing that we have a lot of lending, a healthy economy and i do think that this bank issue is a highly technical issue but something we are very focused on and student loans, a longer subject we share certain concerns. >> app

banks required to have excess overdrafts for intraday. so this is not liquidity -- normal liquidity and this is soc intraday liquidity.nto the there is also the impact of thee federal reserve hold it, and we had a large payment of taxes and you had money coming out of banks going into the treasury k. counts and this is something imt that in my role as treasury secretary chairman powell and i are wokking together on. >> along those line, the impacte of regulation can impact monetary policy, and when you have regulation demanding banks hold assets and they believe th they shouldis not use those tray because of a regulation that becomes problematic, and so i think a systemic review of this to ensure that that activity can be dealt with adequately, i think, is really important.the k "the wall street journal" highlighted the question of tax payments and that there was aon timing of the deadline on tax payment his an implication for the market as you just mentioned. on aing very going forward basi treasury reviewing some of those timingng issues?ed >> wit we are and we're workingy closely with the federal reserve. as i said, to make sure that there are ample reserves both tn ass

was a room as the reserve bank of india says it will do more with monetary easing.p the bond market yesterday. a little bit of move to the downside in terms of yields. 6.75% on that, particular note. let's get you now to new york. the first word news. >> we will start in japan. japanese exports fell for a 12th straight month. this was in november. it confirms there has been little sign of a pickup despite indications of a slump in global manufacturing. the value of shipments abroad fell just under 8% from a year ago. it extends the longest running divide since 2016. the -- the wider economy is expected to shrink 2.5% this quarter. is philippine central bank investigating lenders that may have received funds using the westpac service that has been allegedly linked to money laundering and child explication. holderssays account could have received money sent by australians who are accused of child abuse. to india now. anger continues across the country in protest as the government defends the controversial law that bars undocumented muslims from seeking citizenship. it

give them the recipe now to increase their power is that they need to get a seat at the federal reserve bank they need to get majority on the fed and they need to raise rates. to restore equilibrium that's how they will get the piece of the pie when when donald trump says the fed needs to lower rates or go negative that should be the tip off that's the vulnerability that's his weak spot to put it in terms that the millennial understand pretend this is star wars and the death star has a weak spot and luke has to fly in and hit that exactly exposed to blow up the death star ok so the weak spot for the death star that is the federal reserve control global economy is interest rates if you can control seats on the federal reserve board or the federal open market committee and get rates to go up then trump collapses the republicans collapse the concentration of wealth collapses the wealth and income gap is restored to normality and you have agency once again of this economy that is the only that's the only spot you can try to hit there and hit there if there and you can look great doing it but tha

robert kaplan earlier at the reserve bank of dallas was saying what keeps him up at night are these spreads between iuble b and single b credit wanted to take a look at a chart i am showing inside my terminal that indicates how tight credit spreads have gotten. that, 326ou take basis points, the tightest since right before that big christmas eve selloff the year ago. similar thing going on in investment as well. the lowest going back and almost two years. thatcularly within high-yield market, it makes officials a little bit nervous. fedex has come out with results. it had offered weak guidance in september. apparently was not weak enough. second quarter eps missing the lowest analyst estimate. $2.50 was the reported bottom line number, $2.78 on average. revenue missing the consensus. operating margin, 3.9%. analysts were looking for 5.3%. in terms of the outlook, it does not look like it gets much better. to $11.50om $10.25 per share. it looks like the average analyst would be $12.05 if we are comparing like with like. the company talks about a year of significant challenges and changes for

on the week while trade and certainly played into this conversation the reserve bank of australia actually chose to maintain cash rates at a record low point 75 percent which was expected although the central bank has cut rates 3 times since june and then we're going to south africa the all shares index is down on the week the south african rand faced losses on thursday following news of continued economic weakness in the country and data from the nation's central bank showed their current account deficit has narrowed slightly but not by as much as they had originally expected there was however a positive news for south africa mining companies in the platinum and gold fields now they were able to make positive growth so we're going to toss it over to ben now for european union and the americas brant thanks for that we're heading over to europe to start with the cac and the dax they are both down for the week as they were hit pretty aggressively on monday after consolidating for the better part of november this initially set up the market for some more downside but may still relatively make

india,he reserve bank of there is still more easing, but much will protect -- much will depend on howecision is timed. the r.b.i. is on a pause. policymakers are aware there is room and the timing is important. the hold rate will surprise markets when the growth has slowed to a six-year low. app gojek's maga looking to own a top taxi operator. will payeen told gojek $30 million at a price more than 20% above bloomberg's monday closing jakarta. it would consolidate local teamwork as they face competition from singapore-based grab holdings. to australia where brushfires continue to burn in new south wales. dozens of properties at risk in mountains north and south of sydney. almost 2has burned million hectares. they were stoked by hot, dry and windy conditions. severe heat conditions for most of new south wales throughout this week. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries. i am su keenan, this is bloomberg. >> thank you. we will get you an update on what is happening so you have a benchmar

and again, when we talk about the reserves at the bank, the exe reserves, most of those are loktd up with the fed because of regulations that require the banks to have so much excess liquidity. >> let me slow you down for a second. i asked my staff to give me some numbers on student loans, auto loans and corporate debt. we're at $1.6 trillion in student loans, 44 million americans have student loans, almost $30,000 the average debt. auto loans at 2.6 trillions. 7 million americans are more than three months behind. corporate debt at 10 trillion, $1.2 trillion in junk bonds. there's a lot of lending going on. are we getting overextended again? that's what i'm worried about. >> the gentleman from colorado mr. tipton is recognized for five minutes. >> mr. secretary, did you want to answer that? >> thank you. i was just going to comment on is i think it's a good thing that we have a lot of lending, a healthy economy, and again, i really do think that this bank issue is a highly technical issue, but it is something we are very focused on, and student loans, that's a longer subject that we'

joe: the reserve bank of australia announcing decisions tomorrow.sforce re-think third-quarter earnings after the bell. "bloomberg technology" is next in the u.s. joe: this is bloomberg. ♪ ♪ i am taylor riggs in san francisco in for emily chang and this is "bloomberg technology /." black friday sales breaking an online record. how it will be following cyber monday. crypto crackdown. china continues its assault on crypto exchanges and currenc

been hearing from people we talk to, the many people and businesses that we talk to through the reserve banks that are written up and they were telling us all year for a year end half that the tree policy is weighing on the outlook and i do think without commenting on anyway in the process or the content of the agreement, i think the uncertainty around that would be a positive for the economy. >> one bigger than the other, do you see that on the deal themselves -- >> i think you can see that's what's been moving financial markets. it's been news about the negotiation with china, i think the difference between nafta and usmc is smaller than the difference between current was renegotiated. >> the fed policy review has largely been discussed in terms of the inflation side of the mandate and inflation expectation. it seems like the message you gave and also something else you recently acknowledged is that the fed has been systematically overestimating labor utilization. i'm wondering if you can talk about the extent to which the review is looking at the employment side as well. are there any poss

reserve bank of india perhaps after last thursday decision not to do anything is seeing more and more baked in. as a result we are seeing yields backing up. 6.71% as some of those rate cuts which had been priced in are priced out. ok, let's move things along and have a look at the first word news headlines. and join su keenan. su: we're going to start with a rewritten successor to nafta, which was the u.s.-canada-mexico trade deal. it is being welcomed by house voted on, and will be next week. nancy pelosi praise to the changes from her party. saying the revised deal is better for american workers. the u.s. mca as the agreement is now known is seen as a political win for president trump as he heads into an election year. however, final approval from the senate is not expected anytime soon. youet me start by telling what will happen between now and the end of next week. -- won't happen between now and the end of next week. we will not be doing usmca in the senate between now and the end of next week. that will have to come up in all likelihood right after the trial is finished in the s

for going after this i mean look it's a system whenever you combine fiscal policy the federal reserve bank it's all become political none of it's based upon what's actually good for investors and certainly not good for savers and you've wounded essentially the entire economy by saying we're not we're never going to bring up interest rates we're going to keep them down artificially low for over a decade why wouldn't you go and do this right are going to chase after this money the problem is what christie said is the long term play here because ultimately eventually got to pay it back or you're going to have to become insolvent as we saw in 2008 exactly and yes while some of the blame is to be made on purpose a lot of it is monetary policy because the point of monetary policy and low interest rate is to create investment expenditure is to make companies borrow money and take risks in order for that stimulate the economy that's the concept here and they're not doing that because they're hoarding it because of the fact that we're in an uncertain environment and who created this uncertain envir

the federal reserve bank injected $49 billion in temporary liquidity in financial markets. fed conducted operations in the form of repurchasing agreements. one added overnight liquidity while the other added 15 day liquidity extending into the new year. eligible banks -- installment of the star wars movie franchise run in more than wondered $75 million in north america on its opening -- more than $175 million in north america on its opening weekend. it is still likely to be one of the top releases of the year. sales could exceed a billion dollars globally. a billionaire, a billion there. joe: did you go see it? scarlet: i am not into that. i think romain is watching. joe: that is probably what he is doing today. scarlet: we look at his review. he was a little bit disappointed with the reviews on rotten tomatoes. joe: it seems like there are a lot of bad movies. i was seeing reviews of the cats movie. when it comes to movies, they are trying to appeal to a global audience. tv is where it is at. coming up, a tale of two halves. we will look to the year ahead with spencer go b

. >> the reserve bank of new zealand surprise investors with a 50 basis point rate cut in august andhen it's a prize again by not cutting rates at its november meeting. exclusive,bloomberg adrian or explain his reasoning to kathleen hays. thehe first thing interstate -- interest rate at 1%. been belowe rate has a mores, also adding to stimulating nature. is that maximum level, so people have jobs, people have incomes and the real confidence comes down to the government entering the fray as well. >> are you counting on a stimulus from the government question mark >> very much so. there are significant demands on of --ption and a lot challenge is always been lags. i assume you expected some market reaction. was it a bit of a surprise? >> one of the biggest debates landed on thee decision, was how do you communicate this so it doesn't create unwanted efforts? the desire is you can deliver a which leads conditions broadly in the same space where they were and that is what has happened. they are all different, just levelsnt shades of loose and the interest rates. i think the important mes

the 1st to demand a recall of gold days earlier poland recalled $100.00 tons of its gold reserves from the bank of england and the polish national bank was certainly happy about it we managed to increase the strategic reserves of gold and take steps to repatriate to launch. parts of poland go by implementing our constitutional statutory and simply patriotic commitment we not only build the economic strength of the polish state but also creates reserves that will save got its financial security this is the global trend but also the expectation of polish society other eastern european countries like hungary in serbia began recalling their gold as early as last year now the mainstream media has covered this new gold rush but what they'd probably like to avoid is admitting that it's getting pretty close to home take germany it just increased its own gold reserves for the 1st time in 21 years even us economists are admitting the role of this precious metal is quite literally as good as gold the question is what else that's the environment i think will be in and there's a saying that gold is the only

only four c one hike which is not that much and the former president of the federal reserve bank of atlanta agrees, they are not going to do anything for a while. the economy overall is in a very good place. the growth number could be stronger but i think realistically and in today's environment, global environment, a 2% rate of growth is really a quite decent performance of the economy. and i really cannot see today that changing over let's say the course of 2020. it,t is interesting, isn't we have had a couple years of rate hikes than a dramatic pause and then rate cuts and now we are not going to get anything? i think there will be a lot of fed rate move withdrawal in the markets. ecb becausee to the christine lagarde is holding her first meeting. what is expected? >> christine lagarde is limited in what she can do. certainly people expect her to some sense ofive how she sees the economy. the hope for christine lagarde of course, she is a savvy politician and can get governments across the european union to spend more money to boost the economy. because negative rates people are complain