of the fed. do they have a credibility gap here? >> not at all! i got to tell you something. >> jack! >> this is doing what they should be doing. if anything, she's come out and said exactly what she should have said. in the statement today, if you read it, she said something that was very, very important. >> it was minutes. >> what is taking -- what is going on around the world is not going to affect or might not affect what is happening here. do you know how big that is, rick? >> as big as -- >> she's making it up as she goes, jack. >> as big as chamberlain's tombstone. >> the market is going up to steal a line of larry kudlow, profits are the mother's milk. they're making money. >> corporations -- >> that's fine, jack. >> that doesn't -- >> sweeter, jack! >> no. but doesn't change the fact -- >> wait a minute. hang on, everybody. hang on one second. hang on. hang on one second. jack, let's start to you and then get peter in real quick here. listen. same question. we heard what rick had to say.

the ten year note is yielding 2.35% ahead of the fed. as we can see the markets are ever so slightly on the back foot. let's get to steve liesman. >> the federal reserve discusses the path of rate hikes. it did debate rate hike communications. on the specific questions of what went into the statement some wanted to eliminate the considerable time language because they felt it gave the language of a specific time period and saw labor slack diminishing. you saw that change in the language. many believe the feds should watch carefully for decline in inflation expectation. there was some concern that inflation would stay below the 2% fed target for quite some time. inflation was likely to edge lower in the near term but see moving up in the medium to longer term. a number of participants worried about lower growth because of foreign weakness. the fed rejected adding a section to the statement that expressed that concern about global weakness because many decided the global effects so far in the united states were limited. lower energy prices

then second element of cost is the fed recent ja minutes or the fed meeting was held. and both cases, it suggested that interest rates will in fact be lower for a longer period of time than what the market had once again, suggested that there's a difference betwe the fed is right now on interest , if you have inflation that is running below wh it would seem an odd time at all to raise interest rates at all. sources in one of our stories said that -- who thinks i agree with you, tyler.t rate when the fed emphasized the inflation expe and i think it told a lot of people that if the fed were to hike rates it would what we're looking at nowst is again this situation where fed is giving us new information, it's creating some confusion in the marketplace. but it certainly does delay any interest rate increase. >> let's just step aside from interest rates for a moment. how would you describe the health of the economy? we see the unemployment rate is coming down. sure there's this inflation issue but how would you describe how the economy doing right now? >> the domestic econo

reactionon the market, in the fed minutes. k at the minutes, how would you describe the tone question mark >> the fairway, to use a golf analogy. expected.hat was they talked a little bit about inflation, asymmetry between market the patients, what the fed is seeing, and they talk a little bit about foreign weekend -- foreign weakness. and they circled it all back to the labor market spirit i see nothing that makes me think differently about the marks today than i did a week -- weeks ago. -why did we see the markets decline in 10 minutes? what was going on there? let's looking at equities, equities are looking a little overbought right now. there is a natural weakness in equities right now. for a consolidation phase, looking for how the minutes affected that. i think there is a knee-jerk reaction, that the fed is maybe slightly still hawkish, and therefore, it is good news, good news, bad news, bad news. >> we are back to that? oh gosh. >> i do not think there. the trading, very front and focused, -- >> are we playing a guessin

miss se guerra, who's engaged in a lawsuit over her dismissal from the fed, came in the media spotlight when she released secret recordings of fed meetings that appear to show the central bank is a lax regulator. >> we've got on tape higher-ups at the new york fed calling off the regulators. >> there are 46 hours of tapes. there was about ten minutes of those tapes that were released. >> reporter: the new york fed president denied the central bank has serious cultural problems, but he did say it can always improve how it oversees the nation's biggest banks. for "nightly business report," hymn hampton pearson. >>> also in washington, harsh words from speaker of the house john boehner one day after president obama noungsed he was extending protections against deportation for upwards of 5 million undocumented immigrants currently in the u.s. >> with this action, the president has chosen to deliberately sabotage any chance of enacting bipartisan reforms that he claims to seek. and as i told the president yesterday, he's damaging the presidency itself. >> in response to the president's execu

it does not change the focus for the fed. next. ♪ >> welcome back, let's get back to bring you the most important stories you need to know before the bell. olivia sterns and brendan greeley are joining me. number one is the u.s. economy. added 214,000 dollars last month son in the upland rate to 5.8% which is the lowest level since 2008. we are pretty much at pre-recession levels in jobs and yet if you talk to the average american, they can hardly feel that right now. >> one of the things we learned in the election that jobs are not as important as wages. the median wages have been going down and were already going down before the recession and plummeted after that. in 2000, it was at 55,000 and now it's a 51,000. people do not think about investments. they think cash and cash a monthly basis. >> in this labor report, we did not see anything significant rise in which growth. it was lower than what economists protected. >> it's just not enough. it was a very modest improvement on the long-term participation rate. below 60%, it'

let's look at the fed's record. y did they not regulate and supervise the banks to prevent the crash of 2008, they had specific information about rigging the market, they did nothing. they had specific information about jpmorgan's high risk trading in their london operation that led to the $7 billion london whale loss, and they did nothing. they had people in size saying we should supervise and regular goldman sachs. they fire the person, and now today, in the senate banking committee, they will ask questions of the new york fed, where goldman hired a new york fed official who apparently has confidential information from the new york fed that they then used for goldman clients. so you have a captured regulator who is now going to do a self review to determine whether they are captured. i am not optimistic. >> what are you not optimistic about? would you say this is a step in the right direction, that the was theseizes there incidents, and how they took their eye off the ball? they have been able to tighten regulation

>> obama and the fed focus on the year ahead. the president prepares to outline his big plan on immigration. >> china's challenge. manufacturing flatlining. >> and earnings. is the transformation >> obama and the fed focus on the year ahead. the fed it weighs its approach to money 15. -- 2015. >> hello. welcome to "countdown." i'm mark barton. i'm anna edwards. >> i'm manus cranny. >> caroline is here. it has been four years. proposinghey will be $.11 on the euro. 210 euros is the net income. there was a loss previously to that. 127%. that is a beat on analysts estimates. we're seeing the industrial solutions picking up in terms of growth. looks like the only real area of loss is the u.s. unit. it has been a thorn in their side. sell.ave managed to also outlining savings targets. had been 2.3 billion euros. they are upping it. lifts.ture of >> this companies history was all about getting steel out of the ground and back in the rural region. 20% of the revenue is what is dedicated to this area. they are ever supplying. thehas been

but i think a lot of people have become fixated on the fed. for some, it's going to be early next year. for some, it's not until early 2016. so you get these big moves. our view at rbc is the most likely point in time for the first hike is june of next year. this was our view before yesterday's minutes, it remains our view today. on the basis of what we expect to happen in the data, that's a plausible explanation. but let's be clear, if the data supply substantially in one direction or the other, then, of course, we would have to change our forecast because the fed is data dependent. and the reaction will change depending on those data. >> so the u.s. is showing signs of growth, a resilient economy, if you will, given the recent data on consumer sales, sentiment, yet the market doesn't seem to be pricing in a rate hike. >> absolutely. >> why is that disconnect there? >> i think that's a mistake. we go back to what we said about the market being hooked on the fed's kool-aid. there's a disconnect because they haven't accept at some point we're go

the fed is making the assessment that the u.s. economy is able to stand up on its own two feet by itself. that's an appropriate assessment. they'll contemplate when they start normalizing rates from the very low zeros. that does not mean they're not helpful. they still are because zero interest rates are very helpful. >> that gets us to the question when do interest rates actually rise. are you looking at the second quarter of next year? the third quarter? >> you know when the data permit, i do listen to janet. i think that's probably the second quarter of next year. i think we have to watch wage rates. i think we'll start to see as unemployment rate has fallen below 6% the beginning of some moderate wage increases. when i talk to ceos they're short labor. skilled labor in particular. >> that's good. we wanted more inflation and more strength in the consumers hand. >> agreed. if we get some of that that's a missing ingredient for the fed to say okay time to raise rates. >> we have been watching a lot of differ things. a lot of num

calmed the fed whisper. joining ussure tradeers from the new york stock exchange, the cme and, of course, the nymex. jon, i want to begin with you, what is your takeaway from the minutes, and who in your opinion is the most important fed members to pay attention to as we move into the final trading month of the year? >> well, so my main takeaway is the fed has its eye on a bunch of problems right now that could derail its forecast. weak growth overseas, looks like inflation is slowing down. market volatility, but none of these concerns are serious enough at this point to change what they're planning to do. that is to move towards it raising short-term interest rates sometime next year towards the middle of next year. cheryl: okay, let's talk about the things they are most preoccupied with, the volatility in the markets, they talked a lot about that. there's a three week lag here, how much can we take away from commends about the market, not just the stock market but the labor market. they seem bullish but the

there's the fed, under me today. tiny discretehave responsibilities, so some things fall through the cracks. itsthe cf tb has turned attention to the payment system. i spoke to the director here yesterday. i asked him why payments? >> we need a faster payment system, and that needs to be faster access to people's money so that the benefits flow through the consumer. it needs to be real-time account information as well. protection against rod, and it needs to be disclosed so that consumers can do -- >> so from your perspective, there is not enough of all of those? >> there is a lot of potential for consumer confusion. somewhat embarrassing that we are lagging behind the rest of the world in this area. at the same time, as you build a real-time payment system, there is a lot of competition for that. there is a lot of competition outside of the normal channels that is being developed including digital currencies and other elements. it is very important that consumer protection be very right and center in people's minds a

bothered the fed is not bothered apparently. on the u.s. economy they say it would be quite limited. dax futures where are we? up eight points. manus cranny with the opening. dollar-yen. >> quite frankly i was more interested in norwegian krone. this is one of the most private trades in the world but let's look at dollar-yen. 118.58.- not being flippant but when there is this huge momentum shift one has to question how they deal with the movers. they actually said the euro-dollar would hit parity that is more of a shocking call myself. reflecting back on where to put your money whether in the united states of america or indeed in asia, we just had a conversation with admin chang and it is still a hard market to choose. referring dollars as the global currency of choice. equity is part of the sentiment, france, germany likewise. the u.k. retail sales will come out of the warm weather that we are having here in the netted kingdom, how will that impact sales. a couple individual names, i wonder if arm is actually moving. the ceo making comment

have the feds gone too far. we'll talk about that with our panel a moment, liz. le's stock on a tear, rising 52% over just the last year around hitting a new all-time high just today. with watch delays and worries about that and holiday season fast approaching does apple have room to move higher? yes there are bears about apple's stock and we have one. counter balance, a bull. a bull-bear debate coming up. >>> she is set to become the country's youngest state lawmaker at just 18 years old. listen to her plans as she takes office this january. >>> facebook working on a new secret page that could spell trouble for linkedin. details next. ♪ e you owned your car for four years. you named it brad. you loved brad. and then you totaled him. you two had been through everything together. two boyfriends. three jobs. you're like "nothing can replace brad!" then liberty mutual calls. and you break into your happy dance. if you sign up for better car replacement, we'll pay for a car that's a model year newer with 15,000 fewer miles than your old one. see car insurance in a who

wasn't that the all-important, key target for the fed? ver, we also need to consider the u-6 unemployment rate, which also includes mar jijally attached workers, those who aren't looking for work, but still want jobs, as well as people looking for full-time work but have had to settle for a part-time job. this chart measures the top line unemployment rate versus the u-6 measure and as you can see here, the spread is enormous. while top line unemployment is 5.8%, historically speaking, a wide spread. in other words, there are a lot of people who are still out of work, who are working part-time, but they want to be full-timers. why does it matter? even as job growth is improving, this stubborn u-6 unemployment means there's still a ton of slack in the labor market and it's going to have a crushing effect on personal income growth net of inflation, a statistic the fed has been watching like a hawk. in other words, what the fed really cares about is wage inflation, not so much the employment number. wage inflation is totally stagnant. this cha

the fed has told us they're going to raise rates. i don't see very much prospect looking at over 6, 9 months, maybe the next few weeks there will be movement in this direction. the european central bank is going to keep rates low, pushing to keep rates low are in china. over the long haul, i'm talking six, nine months, the fed told us they're going to raise rates. the treasuries and high-grade paper, a crummy yield and prospect of capital loss. if you want to take credit risk, that's something else, munis, like taking credit risk, that's something else. areas where people think first about bonds look dangerous. liz: you disagree with ira. we'll leave it at that. we'll bring you back to fight it out. thanks to traders at the nyse and cme and nymex, the closing bell is ringing in 38 minutes. u.s. car sales have been on such a roll this year. 16 million annualized is what we're on track for, but one very successful national auto dealer is outpacing the average. what's the secret to success? as that stock climbs 19% over the past year. >

the fed is making an assessment that the u.s. economy is able to stand up on its own two feet by itself. and i think that's an appropriate assessment. they will contemplate during this long period in between when they start normalizing rates from a low zero. just because they are not doing qe does not mean they are not helpful. they are still because zero interest rates are there. >> that brings us to the next question as to when do interest rates actually rise? the second quarter of next year or the third quarter? >> when the data permit, i do listen to janet. i think that's probably the second quarter of next year. i think we have to watch wagerings. i think we'll start to see as the unemployment rate falls below 6%, the beginning of some moderate rage increases. when i talk to ceo, there's short labor, skilled labor, in particular. >> that's good. we have been wanting a little more inflation and wanted more strength in the consumer's hands. >> agreed. if we get some of that, that's kind of the misingredient for the fed to say,

actually the release of the fed minutes from the most recent fed meeting. d meet something two-day meeting that begins december 16th and announcement what came about will be december 17th. >>> it was a busy day on fox business. here is look at some of today's highlights. we start with former home depot ceo bob nardelli who told maria bartiromo how the new health care law personally impacted him. >> i have to buy insurance for myself and my family and i have seen the rates go up 300% on my youngest two sons. >> wow. >> who live out here in california. one of the first carriers canceled. they wouldn't insure anybody in california. then blue cross-blue shield, 2:30% increases. then they canceled the plans. we had to go to boutique. on personal basis i felt impact of this plan. >> a lot of these lessons i really learned from working with steve jobs that, to look at a company like sony that did the walk mann and a wild success. did the television as a wild success. now they're struggling, when they come out with smartphones they have maybe 40 different skus on sm

the junior employee previously worked at the fed. he situation was immediately reported to the compliance team. the fed reviewing its policies, promising to make sure the rules are effective. the new york fed says soon as it learned of the situation, it will alert law enforcement authorities. raising questions about the revolving door and when you hire somebody from one place to the other place, how much information you are bringing with you and what those relationships mean. >> san if i making its first big presentation since it ousted the ceo. meg terrell joins us with more on sanofi. >> it's been three weeks since sanofi removed their ceo. today they are making a case of investment in its pipeline. we are here at the genzyme headquarters, the biotech they bought in 2011 where the chairman and interim ceo finished his presentation. he acknowledged the fact everybody wants to know who the next ceo is going to be. the search is well under way. he says the strategy hasn't changed and there is a driver in the seat. focus will be on its

market but the fed can't determine the quality of jobs that get created.t has more to do with congress and the white house do with the range of policies on things like tax reform, immigration policy, fixing our infrastructure, trade liber liberalization with the rest of the world and will shape going forward the kinds of jobs our companies in america creating and hopefully having high and rising wages. those are the policy things we need to focus on more now. >> and to flip it, you can, back to the market, as well, dennis, as you know, the gains are often made all the way up until the point at which the full recovery is kind of upon us. so perhaps this report further evidence that there's still time to get in and involve. uchb right on the dollar and talking about oil and to be clear to everybody out there, would you recommend that for now coming to the u.s. stock market that they get involved? >> they should be involved. should they get dramatically involved? if you haven't been involved probably getting dramatically involved at this point might not be th

then the fed has no constraints on it. bug issue now. >> david boyce arguing that the possibility you get a surprise win on a $25 billion case against the government. is it actually on the cards? >> it's a big number. the legal standard for that is high. i don't think there is any doubt he established how capricious the fed was. >> i remember they didn't know what was happening at aig. it came to them late. they were trying to figure it out on the fly and they were clueless. >> they didn't know if it was solvent or not. yet they gave them the emergency loan. that's fine. we got through the crisis. they have consistently tried to say we acted on principle. that is clearly not holding water. i think this trial has done a lot to eliminate those chaotic days. >> good to see you. thank you very much, jim stewart from "the new york times." >>> when we come back, the ceo of hain celestial will join us live for an exclusive interview after the company beat estimates in its first quarter. how do you beat the number one seed? you jus

we have the fed in play talking about removing tapering. they are removing any form of easing going forward. it is already priced in market. also we had draghi yesterday, obviously the bank of japan the week before. this is going to affect the currency. is it going to affect interest rates and evaluations of the currency markets? without a doubt. >> quite a performance by draghi yesterday. the market giving him a great start. how important is that for you as you look at the markets here in europe? >> hugely important. i think he managed a lot of the questions very well and i think going forward, what we'll see here is a continued weakness of the euro. especially against the dollar. we have changed our predictions of the euro down to about 118. we can see that happening within the next couple of months and given the momentum of the currency markets, we can see that going well through that. in 2015, you can see the euro dollar trade significantly below 118 down to probably about 110 if not lower. >> if we can head to 110, euro dollar. towards

is the feds pay for our bill. in kennedy figured out a way to rip off the feds about $400 million a year. >> this the latest in a string of videos surfacing when they wrote about how to handle the stupidity of gruber. the lack of transparency about the law. the president disagrees. that brings us to look who is talking and democratic leaders are reacting. nancy pelosi saying she is never even heard of gruber. >> i don't know who he is. he didn't help write our bill. the person who wasn't writing our bill commenting on what was going on when we were writing the bill. they have withdrawn soem of tme statements that you made. let's put him aside. >> she sited him on her web site back in 2010. even mentioned him by name during a press conference back in 2009. >> i don't know if you heard of mayan mal sis like the comparison to the status quo and comparison level to our bill and seeking insurance to the exchange and our bill takes down the costs. >> she doesn't know who he is not that she is never heard of him rather w

without question, the modern fed's greatest critic. ,llan meltzer and david malpass the day the fed build the nation. it is "bloomberg surveillance." ♪ >> good tuesday morning, i am tom keene with olivia sterns and stephanie ruhle. they will be off thursday, i will be working. top headlines. your headlines, violence or rubs in ferguson, missouri, protesters looted businesses, torched police cars. chaos broke out moments after the announcement that a grand jury would not indict the white police officer who shot an unarmed black teenager there last august. police used tear gas to try to break up the protest. several people were arrested. feel guilty about eating a big tub of popcorn at the movies? it will get worse. the fda's moving to new menu labeling for many theaters -- for movie theaters, restaurants, grocery stores. they will have to disclose how many calories are in snacks and meals in an effort to fight obesity. a film biography of apple cofounder steve jobs finds a new home. comcast has picked up the project less than a week after sony bailed on it. it is based on the best selling

what does this mean for the next fed move? 200,000 jobs, we have seen this now for nine months straight. -- should we be having a bull market partly? >> during expansionary periods over the last 20 years, 200 jobs per month is about what you do. we are doing better than that. the six month or 12 month average, 200 20-240,000 jobs per month which is good. the unemployment rate is 5.8%. the numbers are pretty good. when everyone ago was crying and ready to jump out a window and saying we are falling off a cliff, where did that come from and how are we back to the moment where the economy is great. >> i think you're going through a significant divergence, global growth versus u.s. magnet -- manufacturing in the u.s. has been trending about one percent the last few months and europe is doing the exact opposite. it has been slower or stabilizing. the global economy is still slow. japan is slow getting stimulus and europe is slow but the u.s. economy, a closed people are worried about exports falling up because of the strong dollar.

the white line is the fed. lines do not measure is the value of each balance sheet. .he white line is the fed japan is in red. europe is in blue. >> the blueline rolls over. >> they are pretty much a 3.3%. the green line is china, brazil, india combined. they make up a most 8.5% of global gdp, more than the u.s.. and the u.s. has been arguably the most aggressive central bank. king was way out in front of this on level matters. there is something about the blunt interest, the blunt reality of level, isn't there? >> i think the biggest take away is that china is becoming much less responsive to basic liquidity and credit stimulus. over the last three years, for every one dollar and china, they have been able to grow less than basically $.30 per new gdp. that is telling you the productivity growth is coming off in china. a lot of investment is going to wasteful investment, a lot of it is maybe going to manhattan real estate [laughter] . --do you believe what are it larry summers says about china reverting to the

. >> oversight of the fed. >> no. keystone is dead. ans-canada is doing a workaround. >> this has been the least producti iive congress ever, is that right? this one will equally be. >> i see people buying the coal stocks. the energy department is going to say, listen, we like coal? >> what i'm wondering is if this new majority in the house and senate will result in some form of compromise with the white house that will end up at legislation that would be beneficial to the country as a whole. >> no. >> okay. i just wanted to know. >> you're saying it's the absence of government, not the work of government. >> i mean, it's a pro-corporate, anti-labor government that's coming in, in congress. it could make it so perhaps there will be less rhetoric that's negative. i think we'll get a continuing resolution. the idea of just buying stocks off this, you have to -- this makes me feel more confident about the companies that are doing well and paying for their earnings. no, i'm not going to -- keystone. the president is going to suddenly like f

the fed still owns all those bonds. you think back to the speech about how to revive an economy, there is nothing in that speech about how you land the helicopter. the fed still has to get rid of all those bonds. they have a lot on their plate to worry about. aboutuld we start talking that for the rest of the world? for japan and europe? we talk about the new normal. there is no plan in 5, 10 years. used toets now too cheap money around the world? are we going to go back to a place where it is more fair? >> i would not want to be the person trying to unhook that life support system and worrying about the consequences. it is going to be difficult. you need almost perfection to achieve that. remember the taper tantrum. that could look like a drop in the ocean. all the central banks are going to find themselves in the same position at one point. fed first, maybe the bank of england not long afterwards. when you first raise rates and you unload that bond portfolio -- >> what happens if we get it wrong? concretely, can we lo

. >> don't worry about the strength of the dollar. fed policymaker charles plosser says the rate won't be determined by short-term volatility. >> even an interest rate. >> upbeat earnings drive european stocks higher with vodafone leading the stoxx 600 after it hikes the dividend and launches a new broadband service. >>> shares in henkle. the ukraine crisis is hurting europe but russia's economy remains strong. >> the surrounding countries are reacting and russia remains strong. europe is strong now. but germany is having the strongest growth since 2012. >>> $6 billion and counting. alibaba firmly on course for record breaking sales as consumers snap up online bargains. cnbc speaks to founder jack ma later today. display you're watching "worldwide exchange," bringing you business news from around the globe. >>> nouriel roubini says he doesn't think the fed will hike interest rates anytime soon. factors in whether the u.s. inflation and the rest of the world could lead officials to start hiking more slowly. >> it could be sometime in the m

what actually happens to the fed market -- to the market when the fed moves. doing in the markets? it's wanting to strategize about it, another thing to do. what do you do? >> remodel 40 asset classes and we invest in -- >> i have no idea what she just said. >> oh, i'm so relieved. >> near diversified across the globe. oh, come on. we are diversified across the globe. >> i get it. liz ann sonders is going to brazil. >> not yet. but we are in india. we have a position in india, it's one of our favorite emerging markets. ofwhy india i'm not a zodiac -- and not brazil? has a spectrum of commodities. that is key. politics have been coming into play and will continue to come into play more than probably anything i've seen in my career. i think politics particularly comes into play when you have a reform agenda. in the case of india, it's both on the monetary side and on the fiscal side, which i think is a positive. >> health care has been the leader. what is the lead in next year's volatile environment? >> i think investment will be more investment driven, capex dri

liz: but the fed has been the driver behind a very strong stock market.an you imagine, seriously, can you imagine what the market would start to do if it perceived. a huge hurt moving, treesuries, if it perceived that the fed might pop off at the knee. >> politicians might be dictating federal reserve policy, that's the pushback by janet yellen. liz: careful what you wish for. >> this legislation would be a grave mistake. liz: tea party candidates who perhaps a government shutdown during the debt ceiling hike. that was terrible for the markets, correct? you got to be careful there. peter barnes. we are watching again, very close race here with 30 minutes to go before the closing bell rings. we've got the dow moving higher but red on the screen as the first polls begin to close at 6:00 p.m. eastern, this critical midterm election vote omes just as the major stock averages are hovering some of them near record highs. i want to get to nicole. we're on track for one record close that involves big, big manufacturing, correct? >> indeed, you must be talking abo

the kansas city fed has been looking and analyzing the quick ratio.e people willing to quit their jobs are demanding higher wage rates when they moved to the other job, so that is something that tells you about the pressures building in the economy. this is a judgment told business. i wish we could give you a formula, but this is unfortunately tapping economics. in the end, central banking is judgments and not specific formula. >> but the fact that the markets are so closely observing the communication and the judgment -- does that mean that the markets are simply far too addicted to qe? >> i think we have given the markets too much ritalin, got them too hyped up -- how is that for a modern term? but yes. part of that is because we are the only people who act in washington to we get things done. the fiscal policy has been -- speaking about being neutered, it does not work. maybe that will change and hopefully it will change because if you are budgeting as a woman, either a large or medium-sized corporation, public or private, you are trying to figure

the fed is pulling out a bit. would you say stay in equities, there's a screaming buy signal and it's the central bank. >> i think you are exactly right, liz. david hit it on the head when he said u.s. stocks are responding because they're seen as the best place. we continue to believe what's happening around the world today is positive for u.s. equities in particular, and think today is a catalyst and continue to like u.s. equities in the near future. david: garreth, i love brian, you can't have it both ways. either you believe in what the fed is doing by pulling back or believe in what the european and chinese and japanese central banks are doing by putting in. by printing more money, by doing what bernanke did, not what janet yellen is doing? which is it, garth? >> today's market action is positive. overall, the important thing for us next year will be what the u.s. markets do with the effect of stimulus overall. higher rates are on the way, everyone knows that. the ecb has been behind the curve for three, four

they have to deal with more inflationary consequences. >> the fed may have missed its inflation target for 29 months in a row, i would think most consumer would cheer that. they miss on the low side. the number versus come in lower than they wanted. >> that feels good to most people. >> i don't think it does, one of the lowest once, on the last jobs report, wages rose last month by zero. so that low inflation. people have a lot of nominal obligations they have to pay for. a little inflation is good. it makes the house papers go up the burden of your mortgage payments last. everybody recognizes inflation. you got those nominal liabilities. so, you know, this undershooting is one of the things that helps keep the economy under a lot of strain and the feds want to get the inflation back. from a monetary palmettos the old rule is inflation overshooting is good. but we've come to appreciate the risk of deflation and the problems that low inflation creates for this economy. >> all right a lot of interesting pushes and pulls. it's always a pleasure touk talking with you. >>> at the end of the

the fed is going to watch. it will be okay to be the first central bank to raise rates. it doesn't want to get too far ahead. as we know from several leading central bank officials they believe the worst mistake they could make is being too early. this could stay their hand if it doesn't spark growth overseas. >> they are worried about being too early. it almost feels as if there was a tone of urgency and desperation. he was criticized for so long for inaction. now it feels like he is too late. >> there is also a comment i'm getting that draghi is going to have to deliver. he has been talking about this next step for a long time and has excused because of the abs program. he is going to have to come up with qe heavy. >> i said that talk is cheap when it comes to draghi. don't tell me watt you are going to do, just do it. >> that is a political game he plays over there. we wait to see whether or not he can manage. >> the game of talk is in its ninth inning. let's see some action. >> he has played it pretty well. that's the amazing part. >> i'm not saying he is losing the

the fed is watching overseas. n october whether to say in its policy statement foreign weakness raised uncertainty and risk for the u.s. economy. it decided not to for now. with strong u.s. economic data, the general view remains the fed will plow ahead. more writing in a statement, our economics team's view is the fed remained steadfast at normalizing policy. it's likely the fed will have reluctance getting too far ahead of the rest of the world on interest rates. you can see that here in the divergence which shows up in the euro. it fell again against the dollar. this challenges u.s. exporters and has a downward effect on inflation. another place it shows up, the growing split between european and u.s. interest rates. the u.s. ten-year yield 1.5 percentage points higher than the german bund. if they end up helping those economies grow and raising their inflation rates, the fed would still be on track for rate hikes next summer. if global weakness undermines the u.s. economy and deflation overseas washes up on the

she went to jail. >> the feds can lie and the people can't?eme court has ruled that inexplicably but it has. >> thank you, judge. >> you're welcome. >> so weird. >>> the feds calling for a nationwide recall of millions upon millions of air bags with the potentially deadly defect. this is serious and could affect millions of drivers. fox business network's gerri willis has the info you need to know. looking for the fox business network it is easy, fox business.com/channel finder. >> headlines. police say they believe they found the bodies of a missing beauty queen and her sister. they disappeared last week in honduras. police say the sister's boyfriend confessed to shooting her because she danced with another man. then he apparently shot miss honduras 2014 as she tried to run away. cops say he and another man buried the bodies in a river bank. >>> scientists in europe say the spacecraft that landed on a comet might get another chance to catch some rays. the craft bounce landed last week and ended up in a shadow where its solar power batteries c

the u.s. senate hearing focusing on me fed relationship with big banks. phil mattingly examines the political fallout from president obama's plan to ease deportations. we are also tracking china's decision to cut interest rates since 2012] in. . >> good afternoon. they have tried to revive the economy through targeted monetary injunctions before. they cut the benchmark lending rate by 40 basis points, and the deposit rate by 25 basis points. deposit rate ceiling was increased to 1.2 times the benchmark deposit rate. the way you would interpret this as they are reducing the cost of credit, but not necessarily increasing the amount of credit available to the economy. the move is in response to the weakness in the economic growth. china is headed for its lowest full-year growth since 1990. the government this year is targeting 7%. see pmit we had the hsb figures, which missed estimates. in many ways, that was the straw that broke the camel's back. you add that to the problems in october, the second weakest factory production is 2009, and machine investment th

the fed is trailing 10% year to date. n our pessimistic, nominal gdp single digit call on equities? >> i don't think that we are. one of the things we've seen thus far over the last handful of years is that the starting point was incredible undervaluation. a pe ratio of eight times earnings. basically if you work the numbers backwards, you had to believe that the u.s. was going to stay in the recession for another three years or four years for those prices to have been correct. what is pricing to the market right now with thick is not quite as good at is is going to be. >> therefore she is not be raging bull, abby joseph cohen come our guest host for the hour. we will be right back on "bloomberg surveillance" discussing 401ks. ♪ >> good veterans day, everyone. "bloomberg surveillance" from new york. i tom keene pure it with me scarlet fu and brendan greeley. here is scarlet appeared >> it is a 36-year prison sentence for a doom south korean ferry. lee jung sook could have saved sank.before the ferry only 172 of the 476 on

we are awaiting the philadelphia fed outlook and existing home sales. highs . analysts have identified 25 companies worth more than $1 billion in the russell 3000 they are recommending this second, but the problem is short sellers like them, too, so who is right question mark mike reagan -- right? mike reagan has been digging or walk us to the method -- digging. walk us through the methodology. was a study that looked at shaw -- stocks that have a short interest. it'll are borrowing 10% of the flow, the amount of shares available for trading. they are all worth over $1 billion. analysts, in general, they are bullish on them. the average rating, 1-5, is about 4. nice targetse--- that on average are calling for a 10% gain. >> tommy of those stocks did you find? >> there are about 25. .> give us some examples >> the common theme is recent ipos in the energy and technology space. -- demand where -- recent ipos of the last year or two. eclipse resources, and one of the interesting dynamics in these, since they are recent ipos, some of them tend to have one b