safe once you use the stockmarket you do want to funnel more of your money into u.s.asuries i'll l ideally you do that. so let's get down to brass tacks. precisely how much of your retirement portfolio should you keep in bonds versus stocks? again, that depends how old you are. i'll give you a rule of thumb though i don't think it should have any exposure whatsoever until you turn 30. it's better to put your capital to work in the stockmarket where it can actually grow in your 30s, i'm going to let you keep 10% of your bonds or 20%. once you're in your 40s, i think you can go up to 20 or 30% bonds. in your 50s. 30 to 40s and your 60s as you approach retirement age, already, take it up to 40 to 50%. that's rye now, even if you retire, i still think you should keep a substantial chunk in your stockmarket. you should increase your bond exposure from 60 to 70s because once you stop working you really can't afford to take too many losses with your investments especially since you're going to need to start spedding your money in your retirement accounts that said i think it

i'm bullish right now on the stockmarket. prices in terms of earnings are probably as low as they have been in 20 years. so if you are an investor, you never want to sell low. you want to buy low. this is a good time to be buying stocks. >> i think you are hitting something important here. which is that the fed was responsible raising interest rates, of course. but they were also responsible for the recovery. i mean, one of the reasons that we're having this conversation. president trump was trying to take credit for the recovery. it was never his to take credit for. the fed actually came in for the last ten years have done an amazing job. one of the thing i have been most reassured, in the last couple days the fesd saying, we are apolitical. we will not bow to political pressure. right now the markets want to know there is some institution that is not schizophrenic, that will not go through ups and downs, it will be managed in a neutral way. the feds are doing a great job with this. >> listen to alan greenspan the fed chair,

. >> reporter: the president is also ending this year dealing with a deeply unsettled stockmarket as investors worry about both his trade policies and the president's attacks on the federal reserve and after yesterday, a major rally in the stockmarket up a thousand points it came back down to earth. the dow lost more than 600 points today and ended on a high so clearly stocks really unsettled by what's going on by in the economy right now and president trump is not doing much to settle them. he continues to speak up about the fed and he continues, according to our reporting, to be irritated with his treasury secretary steve mnuchin, who he blames for some of these problems with the economy. >> we know how closely they watch the stockmarket over there at the white house. abby philip, thank you very much. let's get more on the shutdown from phil mattingly. phil, it looks as though the shutdown will be going on for some time as americans ring in the new year. the government will be shut down. >> reporter: yeah, it's certainly headed in that direction. what itself not happening on capito

japan's main stockmarket index closed down 5% today.ere falls, too, in shanghai, bangkok and taiwan. investors are concerned about america's trade war with china and the us government shutdown over christmas. president trump has been speaking to the media about the market turmoil of recent days. the president was asked whether the chairman of america's central bank, the federal reserve, whom he has widely criticised, still had a future. they're raising interest rates too fast, that's my opinion. but i should have confidence, but i think it'll straighten. they're raising interest rates too fast because they think the economy is so good. but i think that they will get it pretty soon, i really do. i mean, the fact is that the economy is doing so well that they raised interest rates, and this is a form of safety, in a way. president obama didn't do much of that. much easier to run when you have no interest rate, and he had a very low interest rate. we have a normalised interest rate. a normalised interest rate is good for a lot of people. t

fears about the shutdown led to sharp falls on the stockmarket with the benchmark dowjones index finishingts worst week since the 2008 financial crisis. facebook and twitter were hardest hit — their value tumbled more than 6% while amazon shares dropped more than 5%. police investigating the drone flights that disrupted london gatwick airport have made two arrests. the airport reopened on friday following a 36—hour closure which saw nearly a thousand flights cancelled and one hundred and twenty —— 120,000 passengers stranded. now on bbc news — it would be an understatement to say tensions have been high between russia and the uk in 2018. but what do younger russians really think of their british counterparts? newsbeat‘s will chalk went to find out if we're enemies, or can we make friends? poisoning, spying, hacking, meddling in elections, peddling fake news. to say tensions with russia are high right now would be an understatement. 0ur media, and our government, is making them out to be boogeymen. it is highly likely that russia was responsible for the act against sergei and yulia skripal.

fears about the shutdown led to sharp falls on the stockmarket with the benchmark dowjones index finishing its worst week since the 2008 financial crisis. facebook and twitter were hardest hit — their value tumbled more than 6%, while amazon shares dropped more than 5%. police investigating the drone flights that disrupted london gatwick airport have made two arrests. the airport reopened on friday following a 36—hour closure which saw nearly a thousand flights cancelled and 120,000 passengers stranded. those are the latest headlines. manchester united's new caretaker manager has promised to get his players to enjoy their football. 0le gunnar solshire, the club's former striker, is back at old trafford afterjose mourinho was sacked earlier this week. —— solskjaer. later today the team face cardiff city, as our sports editor dan roan reports. as a manchester united player, 0le gunnar solskjaer won everything there was to win, but having returned as caretaker manager, the former striker knows he only has a few months to stake his claim for the job on a permanent basis. morning. myjob is now

fears of a federal shutdown led to sharp falls on the stockmarket, with the benchmark dowjones indext gatwick airport near london have resumed again after being suspended for a second time over a drone sighting. the airport reopened on friday following a 36—hour closure which stranded 100,000 passengers. thousands of demonstrators have returned to the streets of the hungarian capital budapest to protest against controversial new labour laws which nearly double the amount of overtime workers can be asked to do. this year many train passengers have had to endure

fears of a federal shutdown led to sharp falls on the stockmarket, with the benchmark dowjones indexinishing its worst week since the 2008 financial crisis. flights at gatwick airport near london have resumed again after being suspended for a second time over a drone sighting. the airport reopened on friday following a 36—hour closure which stranded 100,000 passengers. thousands of demonstrators have returned to the streets of the hungarian capital budapest to protest against controversial new labour laws which nearly double the amount of overtime workers can be asked to do. this year many train passengers have had to endure delays, cancellations and changing timetables. but spare a thought for the inhabitants of 0rmskirk and preston. figures obtained by bbc news show that northern rail has cancelled more than 2,000 services since may on the one line between the two towns. the boss of northern has told us the situation for all its passengers will improve in the new year. 0ur transport correspondent, tom burridge, reports. is this the worst rail line in britain? it's been for a year n

fears about the shutdown led to sharp falls on the stockmarket with the benchmark dowjones index finishingir value tumbled more than 6% while amazon shares dropped more than 5%. police investigating the drone flights that disrupted london gatwick airport have made two arrests. the airport reopened on friday following a 36—hour closure which saw nearly a thousand flights cancelled and 120,000 passengers stranded. now it's time for the latest in technology and gadgets —

japan's main stockmarket index has closed down 5%, reflecting traders‘ worries following yesterday'snd taiwan. the pope has appealed for brotherly love between people of all races, nations and religions to help solve the conflicts of the world. in his traditional christmas message, he said differences were not a danger but a source of richness. the archbishop of canterbury, justin welby, used his christmas sermon to speak of peace and unity at a time of challenge and discord. here's our religious affairs editor, martin bashir. with the basilica bathed in sunshine, pope frances began his address by asking what is the universal message of christmas. he said, but god is a good father and we are brothers and sisters, common humanity, despite our ethnic and cultural differences. translation: by cultural differences. translation: by his incarnation, the son of god tells us we come from love and a cce pta nce tells us we come from love and acceptance of this humanity of ours, which we all share in a variety of languages and cultures. he followed this with a litany of nations from syria to t

fears about the shutdown led to sharp falls on the stockmarket with the benchmark dowjones index finishing its worst week since the 2008 financial crisis. facebook and twitter were hardest hit — their value tumbled more than 6% while amazon shares dropped more than 5%. police investigating the drone flights that disrupted london gatwick airport have made two arrests. the airport reopened on friday following a 36—hour closure which saw nearly a thousand flights cancelled and 120,000 passengers stranded. now it's time for the latest in technology and gadgets — with a festive flavour. it's our ‘clickmas‘ special. this week, it's a festive feast of fun with music, magic and... meditation. yes, it's clickmas! is the 2018 clickmas special, the gang is all here. welcome, welcome. spencer, i've got your first christmas present and what i call correctives. this is the world's first flexible flow in. look at that. you can have it on this way or around here and itjust flips, it knows which way you are holding it and it's built on android. this is a brand—new operating system on top of it called water

fears about the shutdown led to sharp falls on the stockmarket, with the benchmark dowjones index finishinged more than 6%, while amazon shares dropped more than 5%. now on bbc news — westminster in review.

fears about the shutdown led to sharp falls on the stockmarket, with the benchmark dowjones index finishingts worst week since the 2008 financial crisis. facebook and twitter were hardest hit — their value tumbled more than 6%, while amazon shares dropped more than 5%. now on bbc news — westminster in review. hello and welcome to westminster in review, as we take a look back at an extraordinary and tumultuous four months. on this programme — brexit divisions deepen and theresa may faces a vote of no confidence in her leadership. the number of votes cast in favour of having confidence in theresa may was 200, and against was 117. mps react furiously when the prime minister presents her brexit deal. it is the political equivalent of being asked to jump out of a plane without knowing if your parachute is there and attached. and that's not all. the government comes under fire over its new benefits system. the chancellor unveils his budget. and mps are forced to take a long hard look at themselves after a damning report on harrassment and bullying. the report is clear that there needs to be a com

fears about the shutdown led to sharp falls on the stockmarket with the benchmark dowjones index finishingue tumbled more than 6%. flights at gatwick airport near london have resumed again after being suspended for a second time over a drone sighting. the airport reopened on friday following a 36—hour closure which stranded 100,000 passengers. but the drone — and its operator — are still at large. manchester united's new caretaker manager has promised to get his players to enjoy their football. ole gunnar solshire, the club's former striker, is back at old trafford afterjose mourinho was sacked earlier this week. tomorrow the team face cardiff city, as our sports editor dan roan reports. as a manchester united player, ole gunnar solskjaer won everything there was to win, but having returned as caretaker manager, the former striker knows he only has a few months to stake his claim for the job on a permanent basis. morning. myjob is now isjust for the next six months to do as well as i can, and move the club forward as well as i can. and then i understand that there's so many managers that w

it's coming to our shores with our stockmarket and economy slowing as well.s definitely an incentive there. we want to pay attention to what the chinese economy is doing. alix: we are not going to do stimulus here anymore. does that make the case for emerging markets and china? china hasour point, reserves to stimulate the economy. it's not as much as they did one year ago. conditions are not as good as people think. our team the travels there frequently just came back in november and told me conditions and people are worried. that puts a lot of pressure on the trade talks. in the end, that's a good thing. i think we are optimistic. i disagree. i think the chinese are in a weaker spot. kirk: it will be interesting to see how that plays out. theory,in terms of game it pushes everyone to a deal. alix: it's good to catch up with you. up, the year general electric would love to forget. how the new ceo is trying to steer the company in 2019. this is bloomberg. ♪ david: it's time for the bottom line where we look at three companies. verizon and disney came to terms

investor's standpoint, credit differentiation yields are going to be in play versus a volatile stockmarketnd going to offset all the issues we expect for 2019 in your opinion >> i believe it will do okay if the economy starts really heating up, we're going to see a lack of demand for u.s. treasuries we're seeing a lot of digital moves where you see five, ten, 15 basis point moves that's not necessarily healthy we may get back 3% and better stabilize with a better economy. >> back to corporations, even though they're not good markets. we saw many hinting at that last week more importantly, that debt buyback as you pointed out still exists is that going to end up being away before they reduce? is that going to slow down corporate growth in your opinion? >> yeah, i think it is going to slow down some corporate growth. corporations did the right thing. they took advantage of very, very low yields. they used their debt and balance sheet and some with huge amounts of free cash flow aren't going to be subject to this. but some who have it on their radar screens, i think they're gong to fix their

that's a lot for stockmarket investors to worry about and it could just proved to be bearish.thank you. we continued his see the selloff of the s&p 500 losing 2.6% and the nasdaq seeing the worst day in two weeks. we'll keep you updated throughout the day. live from new york and toronto, this is bloomberg. ♪ oomberg. ♪ mark: i'm mark crumpton with bloomberg's first word news. after a briefing from cia director gina haspel, some senators say they are even more convinced that saudi crown prince mohammad bin salman was involved in the death of journalist jamal khashoggi. senate foreign relations committee chairman bob corker said he believes if the crown prince were put on trial, a jury would find him quote guilty in about 30 minutes. south carolina senator lindsey graham said there is quote zero chance the crown prince wasn't involved in khashoggi's death. thehoggi was killed in saudi consulate in stumbled two months ago. -- in istanbul two months ago. the first public insight into how much information president trump's former national security advisor has shared with prosecutor

stockmarkets are in the red for the gear up to another selloff today. the dow fell 500 seven points, its fourth big declined this month. the nasdaq was down 156. the s&p was down 54. all of the indexes lost more than 2% today. investors are worried about the effects of the trade dispute with china and the future of the affordable care act as well as risin lauren blanchard is in washington tonight where there is more turmoil. lauren? >> reporter: not only is congress jittery as a shutdown looms, so are the markets. americans are waiting to see if the house and the senate can come up with a plan to avoid a government shutdown by the end of the week or will congressional members be looking at christmas here in washington, d.c.? the markets closing bell marking the end of another dizzying day on wall street. stocks dropping to their lowest levels in more than a year. the dow plunged more than 500 points. uncertainty mounts in washington. the white house and lawmakers are in a standoff over the federal budget. the president insisting on $5 billion to build a

the stockmarket took the worst beating in ten years and the worst may still be yet to come. cnn sarah westwood is at the white house, cnn kristen homes is on capitol hill. the senators have now gone home. >> that means no one is blinging. is this a staring contest i guess between the democrats and the president right now? who is going to blink? what is going to happen next? do we know? >> reporter: well, that itself question now, this is a complete and utter mess. not only do lawmakers go home without opening the government. they went home with a plan when they get back on thursday. so right now everything is up in the air. if we break it down, we know that mitch mcconnell took to the senate floor today. he basically said, this isn't about republicans. we're out of it. this is about democrats and the president so if we look at that, the democrats and the president, the mind set is that the vice president is here meeting with chuck schumer moments ago, a quick meeting. i want to read you a meeting. the vice president came in and made an offer. unfortunately, we're still very

. >> if the economy does grow, the basis is there for a decent stockmarket.blem here is confidence in the leadership. i think that we agree on. now, the question is can they resoful the trade war over the next 60 days, reopen the government? and then the moderates elected to the house have the agenda that they could embrace. does he do that? does he start to work on things like infrastructure? we have to do things about obamacare because it's not functions as either party would like. if they start to do some positive things together, that would restore some confidence. >> we want to see what that's going to do. once we see nancy pelosi come back, how are the two sides going to compromise? looking forward, you've been reading the tea leaves. how is it looking for a new year's rally? >> well, i suspect as peter indicated, we may have found a bottom at the end of last week. you had a bit of a recovery. but if i knew how to predict what was going to happen in the stockmarket, we wouldn't be sitting here, none of us. but i do think that we're not going to get a lo

so as we look at the overall stockmarket, that was a key many traders are watching check out the yield kuvl some are looking at three month to ten year. two-to-five years. three-to-five years. whatever it is, what you are seeing trend wise is a falling or a flatping of that curve. if you go all the way to where we are right now >> that 210 spread about ten basis points, you got to go all the way back to around 2007 for when we saw levels like this in terms of a flat yield kuvl that's something else as well. like seema mentioned, the regional banks are getting hit especially hard with there many of them make their operations and their money off traditional lending activities borrowing at lower rates short, lending at longer term rates that are higher than they are there. >> that plays out the regional bank etf down by 6% so far today that trend line moving as well for more on that yield curve flattening and what it means, let's go over to rick santelli in chicago, rick, it's got to be catching a lot of attention from traders out in chicago >> it absolutely is. the dynamic, you've expres

one of the things we try to remind people is, stockmarkets don't die of fear. they don't even die of old age. they die from euphoria. >> all right. let's talk about the euphoria that is the holiday shopping season. nice segue. the retail sales numbers so far, for essentially the first half of the holiday shopping season, they look pretty good. do you think we are going to meet the expectations from the national retail federation? >> i do. in fact, i think we are going to exceed them. the year-over-year retail sales are up something like 5%, 7% year-over-year. but the online sales are up 12%. just last month, the online sales were over $50 billion. and, they are projected to be up about 43. you are talking a 23% increase in retail spending. and it makes sense. unemployment is at a 50-year low. wages are up, 3% year-over- year. consumers are spending two thirds of the economy. >> you have that concern about trade and the trade war with china. but the economy fundamentally is sound at the end of the day. and holiday shopping numbers are showing that so far. financ

trump reacts to the news cycle and the stockmarket. both have been pretty bad in the recent days.iking this morning to watch him get pillerred on fox and friends. as he's doing these random things the republicans are noticing. it was holding the together was the sense the economy was doing well. if that starts dissipating, you could see people jumping ship. >> we're not sure the economy is going down with the market, though? >> we're not. >> none of us have a crystal ball. there is a lot of reason to believe it was riding a sugar rush for a long time. >> the marxist analysis. i like the economic determinism. if you look at what happened to nixon. he was in bad shape, clinton got through all his problems. the county was zooming. it's in the back group, it drives you. it is, you got no provide for your family, if you don't get okay, you will not get mad and angry. you are looking for someone to blame. >> trump is going to get more and more desperate. he's going to do things like pulling troops out without talking to anyone. >> do you think that's a distraction, let's do something --

christmas day, wednesday, the dow more than a thousand points, the largest single day point gain in stockmarketistory. it was really a historic week. 2019, you sound pretty optimistic. mr. el-erian, thank you. it's nice to speak with you this morning. >> mr. el-erian: thank you. >> sandra: up next we will bring in our sunday group to discuss what it will take to break the budget standoff. ♪ listening to people answer that question, is how we find out what matters most to them. for a business, it's the power to grow. for an entrepreneur, it's the power to innovate. and for a family, it's the power to own a home. we stand with the ones who day in and day out put in the hard work to make things happen. for themselves, for their communities, and for the world we all share. we want to fuel their drive. and celebrate their accomplishments. that is what we're here for. and above all else, it's really what people want from us. the power to make a difference. ♪ i am brian moynihan. and i work for bank of america. ♪ >> sandra: coming up, president trump defends his decision to withdraw u.s. troops from s

the big stockmarket decline, selloffs in february of october what both that were both triggered by rise in yields. if the fed is scaling back the number of hikes it will make, federal funds will be quite as high as we thought, 10 year yields won't be quite as high as we thought, that will make it easier for people to pay off their home mortgages and companies to borrow. financial conditions won't be quite as tight as we got. andbullish for stocks president trump would probably be pleased. he has been complaining that fed rate -- rate hikes have been a headwind against the economy. he would be pleased if the fed scales back. thing, typically when markets go through this ind of turmoil -- at least the past, you have seen investors get into gold as another form of insurance. it has risen to the july highs. what is the outlook for gold? wes: gold is climbing. people --hat when when u.s. yields are rising, that makes bonds more attractive. people want those higher yields and if i may say, it takes the shine off of gold because gold doesn't pay any interest. now, if the fed will not raise rat

it must be disappointing for people who have been looking for a bottom in this week stockmarket selloffs. economy is actually doing pretty well in china has been making comments about how it plans to implement its end of the latest trade agreements. fall, its continue to suggests or will make me think that the latest trade talks are a bit too little, too late. seeingis that why we are seeingquities asian equities falling, because we got more positive news coming out on trade tensions between the u.s. and china, and yet asian stocks took a hit in the last session. they are falling on top of those trade headlines were getting this news over huawei. what can we expect for trading across asia today? like i said, a lot of people are looking for a bottom and it must be disappointing that stocks the following. months or weeks ago we were talking about synchronized global growth. now that talk is all gone. we are now talking about a slowing in the world's biggest economy and a couple of central banks are does something to canada and india, they are scaling back their views on their own economy.

best in years and stocks are brutal >> we are starting to get data points that the weakness in the stockmarket and in the housing market is starting to have an impact it is in terms of buying and wanting to buy and having the dollars to buy i think it is going to be the guidance that people are spooked about and that's why they pull back. >> by the way in three minutes nike will report earnings. >> and retail as a group down 24% from the highs is this a no touch zone or can you say it the discounted some bad news >> i hate to be beating the same drum, mike i'm staying away from retail if you look at retail over the last 20 years from labor day it is exceptionally strong. it rarely misses you have the news crowd that comes in and they start to sell the companies. one thing that i noticed, you look at consumer discretionary it goes to what he is saying the yellow lights are going off and thinking i don't want to get stuck in the same spot when the housing market slowed down the last time look at tiffany's. i think right now it is one of those things you want to wait and let it hash itself out it

it formed in 1987, after the big stockmarket crash. it is appropriate, given volatility. what comes out of that. he tweeted out that trump never suggested firing jay powell and may not even have the legal ability to do so. >> it looks like there is a bit , afterge control now bloomberg reported he wanted to fire jay powell. is there just more further confusion at this point? it looks like president trump has finally read although stories about how difficult it would be for him to fire the fed chair. you can only fire the fed chair for cause like neglect, not because he disagreed on policy. there is a structure for the federal reserve. they have a special legislative duty for the fed. it is to create money. it is very difficult. there are a lot of details. inclusion is very tough to do given the record that jay powell has so far. donald trump is not the person who decided to raise rates. he has more people to be talking to. >> how damaging will the shutdown be? >> december 27 is the first time there could be any kind of vote on the budget that is not getting through. this

on this, often when stockmarket , there is a deep difference of opinion.uinely concerned that the fed can't carry on shrinking its balance sheets on automatic pilot these days without causing an accident. francine: thank you to hillary clark, the authors chart of the day. i know you were looking at qt. this is the rate of change in the balance sheet. the quote you were talking about john is when pal said we came to the decision we would have the runoff on automatic pilot and use policy as an active tool. do you worry about a fed policy mistake at this point? >> on the qt, yes, that does concern me. if you look at financial stocks around the world, in the u.s., down more than 20% for the s&p financials. asset management companies are back to where they were on election day, 2016. that is quite startling. when you get to the eurozone, the selloff is that much more spectacular. whitee been discussing there are specific issues with the eurozone, but plainly a lot of dollar-denominated debt taken on in recent years. be a is now perceived to anding shortage of d

they write that investors fears about an economic slowdown helped fueled thursday's drastic stockmarketelloff but the imf said based on growth numbers, they do not see calls for alarm. host: we will hear from leesburg, florida, dennis. caller: good morning. i am employed and yet i don't , so inough to meet needs have to live with my parents just to be able to make an's meet.- make ends corporations keep having more profit and yet when it is brought to our attention that we are in need, they don't care to .ay us what would be sufficient host: when was the last time you had a raise? caller: a year ago. to be able toough have a little bit of money, but it is not enough to be able to pay off the bills. host: are there opportunities with other competitors or industries? caller: you could get a job if , like ao those agencies third person where they will find you work, but it is usually for a low wage. rudy,we will hear from looking for a job in louisiana. caller: good morning. the problem i am having right now, i am currently employed with the salvation army and i am on social security disab

the president of the united states handles our economy, adding to, you know, great angst in the stockmarketimpacting other economies around the world and other leaders' reactions to people? >> you have great uncertainty about how trump talks about the economy. the expected growth rate down if there -- from 3.9%, that's low. i think the thing that's making people feel a little more comfortable is despite all of the heavy talk on tariffs and ripping up nafta, we now have a deal looks like it will go through congress. all the heavy talk, we're now engaging in new trade talks. all the heavy talk of beating up on the european and tariffs, we've waited on that, and now it's a little more constructive. china is a bit more open, and yet if there's a country that should have problems, it should be china. >> did his withdrawal from tpp harm them? >> no question. >> how? >> the japanese spent a lot. they've got the agricultural lobby in japan, incredibly strong. prime minister abe got rid of that because he was promised by the americans that joining tpp was a top priority. obama believes truleaves, tr

stuart: which are looking on as a stockmarket selloff because in britain the delay that the vote on howf the european union scheduled for tomorrow has been delayed. i believe we have nigel farage with us. come on into this, please. we in america saw the delay on the boat. we understand teresa may goes to brussels to try to get better terms yet how does this play out? >> not well. two things to say. number one, she said today that when she became prime minister she thought it was her duty to deliver brexit. judy isn't good enough. you have to believe in is to make it happen. secondly, the big problem means we could be stuck indefinitely inside the european union rules. she says she'll go to brussels on thursday to the european summit with all the 27 leaders of europe and she will seek assurances and reassurances the deal won't be permanent, but not change the legal document itself. that means this deal is dead and very, very near it then. stuart: how does that play out if she's no longer going to be the prime minister? what happens? is there a vote of no-confidence in parliament? is ther