they distrust the financial system. and of the major banks are creating a spiral of loans and debt with them money creation. you know it's been in fine form a bank. now retired i can't say that with pride any more that casinos no. go lobby for me his son is beat up on paper it's way up my alley put up for knowledge the manipulation happens everywhere but i saw for a. way in the future generation of being robbed and i want to put thing in that i feel at the moment it's primarily the big banks who are pocketing the profits of this money making enterprise the swiss initiative wants these billions to benefit the country's citizens by only allowing the national bank to create money if we want to take away the right of banks to create money but we're not taking away a line of business they'll still be allowed to lend money and manage assets and oversee financial transactions from being at the banks you get to keep all of that . they want then national bank to play a key role in the future. private banks would only be allowed t

they distrust the financial system. and of the. major banks are creating a spiral of loans and debt with them money creation. you know it's been in final form a bank has now retired i can't say that with pride anymore the casinos know my view i think a lot of the for me shudder speed on paper is the up money body up finale and the manipulation happens everywhere but i offer a. way in the future generation of being robbed ones are not up to competing in the i.p.o. at the moment it's primarily the big banks who are pocketing the profits of this money making enterprise the swiss initiative wants these billions to benefit the country's citizens by only allowing the national bank to create money the way we want to take away the rights of banks to create money but we're not taking away a line of business they'll still be allowed to lend money and manage assets and oversee financial transactions and doing it the banks get to keep all of that. they want then national bank to play a key role in the future. private banks would only be allowe

it is the case that the us has control of the financial system that they do have in our pockets the threat to sanction companies which go against us policy. it's a tricky position for non—us businesses to be in. they may be facing what is called secondary sanctions. i don't know of any business which is sagging, i will develop the us market to stick with the iranian market. interesting to hear what you have to say about it. what is or isn't agreed. we talked about the world cup. the other big event is wimbledon. roger federer has ended his decades long partnership with nike, and signed a deal with japanese clothing company uniqlo. the new contract is reportedly worth $300m over the next 10 years. let's go to our asia business hub where shara njit leyl is following the story. will 300 ini 300 in i guess, roger federer, he is such a strong brand and the sponsors must be lining up? well, it does appear to be the case, sally, and essentially what's happened is that tennis star hasn't said anything public about this new sponsorship until he popped up on the tennis court on monday donning the ja

financial regulation and on china and india. finally, mr. alex pollock, distinguished fellow with the r street institute, providing thought and policy leadership on financial systems, cycles of booms and busts, financial crises, risks and uncertainty, central banking and policy and finance. alex joined r. street from the american enterprise institute, where he was a resident fellow from 2004 to 2015. previously he was president and ceo of the federal home loan bank of chicago from 1991 to 2004. alex received a masters in philosophy from the university of chicago and a masters in public administration degree from princeton university. each of you will be recognized for five minutes to give an oral presentation of your testimony. without objection, each of your written statements will be made part of the record. dr. rodney garratt, you are recognized for five minutes. you can just push the button to turn on your mic. >> thank you, chair, ranking member and members of the subcommittee. the convenience of electronic transfers has led to a decline in the use of cash, particularly true in countries where systems are more advanced. sweden's mobile payment system has been

the monetary policy objectives with high employment and financial stability? if crypto currencies become widely prevalent what about the global financial system? looking at the landscape keep one distinction in mind between the central bank that could use the bank with technology and crypto currency with no backing behind them like u.s. dollar. moving from digital forms that is a legitimate argument how to use that activity in the shadow economy with that illicit activity or to make monetary policy more efficient even where the fed cannot use interest-rate policy anymore but all of us have what is fast becoming technology lee is a -- feasible what this what was suggested this would make that voluntary policy implementation a lot easier but you think in a broader sense money is created by the central bank but also by commercial banks this is where there is a serious implication in the economy because has new financial technologies more broadly the non-bank financial intermediaries have questions that remain what will the banks play because those are the institutions that they are responsible for creating deposits and a very important part of man

the system. john: would goldman have worked better if it was an old-style partnership. maybe parts of our business. we could have not state public with who we were in the financial system. we could have elected -- the way the world revolved, we started out as an advisor. but in order to be an effective advisor, you had to be able to get a fact to the advice you are getting. so i can tell you you should do this merger. i could tell you you can do this finance thing. i can tell you you can grow your business this way. but to be an effective advisor, i had to put capital on the table for you so you could achieve that objective that you and i would agree was our good advice. if we were merely advice givers, we could have an important role in the system, doing -- through great investment bank boutiques they do very well. they don't have 90% of the problems or issues i have had in my life as somebody who runs goldman sachs. on the other hand, they are not as important in other ways, not the influential institutions and as a firm like a positioning we had as a very important institution and driver of growth and change in the financial system, the evolution of business.

financial services to the world's financial service deserts and in the same way that mobile to lef anie can leapfrog through landlines in parts of the world it's quite possible that the decentralized financial system sort of internet three point zero sitting sitting on mobile devices is going to bring sophisticated banking services to part of the world currently don't even have access to simple bank accounts so what we owe it blocked chain right now is kind of roughly where we were with the internet in the late ninety's so it was pretty obvious by then that you could do things like record a video on your computer and send it to somebody you could created these are things which we forget were radical only a couple decades ago create a piece of text send it to everybody in the world without having to photocopy the thing and fedex it and these things were clearly transformative but it was hard to actually predict facebook or google back in one thousand nine hundred five one six there were pets dot com and a million on the things so we're at a similar kind of. place in block chain. where we are instead of disrupting sort of the world of media with disrupting the world value and transactions of value i

the other banks and many of the other banks at least in the united kingdom in the certainly the financial system itself were bailed out by the inflation tax caused by the quantitative easing so they subpoenaed peaceful aides released that report to the public and lloyd said well well we can't do that because of confidential confidentiality of our clients and our customers and things like this well neil mitchell had the report and he released it in the matter of national interest. a lot of you know the attitudes are the consumer in the banking sector in the u.k. straight them like mushrooms you feed them essentially feces and you keep them in the dark and feed them dog poop essentially that's the attitude that the regulators number ten downing street everyone who has any oversight capacity whatsoever for the u.k. banking industry treat them all like mushrooms now we of course were reporting on this in real time we informed the british public about the frauds that were going on the massive fraud oh my little camera seems to have become flacid well put them over there first so i can maybe i'll go o

hardluck of how we think about making money and in particular or are they extracting money from the financial system? >> such as somebody who does make money is nasa that has given rise that we don't give them credit for. and the bank that takes your money then charges you for it they are doing much with it right now but why do we pay them so well? >> i have a book your called how to get rid of a president in case anybody was interested it is the long 200 year story of how they desperately managed get rid of their chief executive with that is the best way is to never let them in. so there is a story here about presidential ambitions and i hope you admire the jacket. >> is that silhouette supposed to be donald trump? >> every man who has a slight reference point to the presiden president. >> and the next is a book about initiation and a wonderful woman was ever need in the successful talk to get iran to be read of nuclear weapons. that is controversial but the story of the lead on that and indeed all of us are especially women how to handle that in a tough situation. >> what about public affairs? 20

in the global financial system? as one looks at the landscape of crypto currencies, it's important to keep one distinction in mind, digital currencies that could use the same and noncrypto currencies with no backing behind them, unlike the u.s. dollar, which does have backing. now there are many proponents of the u.s. and other economies moving their digital forms. i think there are legitimate arguments about how that could reduce elicit activities, improve the tax base and, in some ways, even make monetary policy more efficient, even at the lower bound where the fed may not be able to use policy anymore. if we were to have noninterest bear i bearing accounts with the fed. and this is what tobin had suggested. this would make a certain aspect of monetary policy and implementation easier. money in a broader sense, created by the central bank but to a much greater extent through commercial banks. this will have a serious implication for money creation in the economy. as new technologies, new financial technologies more

are they in fact extracting money from the financial system to our detriment. >> host: such as one? >> one example is something that makes money is nasa. a research norths that has given rise to a huge amount of product wed don't give credit for. one thing that doesn't make money is your bank. itself takes you money, charges you for it, one but not doing very much with. so it's extracting money. why do we by a them so well? >> what else you got coming out. >> guest: sunny have a book here called how to get rid of a president, just in case anybody was interested in that. it's actually quite a serious history book about the long 200 year story of how americans have wanted and sometimes successfully managed to get rid of their chief executive. you can be the president in an election, you -- if you're bold you can shoot one. perhaps the best way to get a president out of office is nevertheless an end, very interesting stores houston presidential ambitions have been thwarted over time and i hope you'll admire the jacket. >> host: and you said silhouettes is supposed to be donald trump. >

had a big effect on us because of their role of taxpayers and consumers and our position in the financial system as a very big influential firm that was influential in the context of the financial crisis that affected everybody. so that was an adjustment that we had to make very quickly. prior to the financial crisis, i never would have appeared at anything. my predecessors didn't. i realized that if you don't describe what you do and help define yourself, you will have left a vacuum that one will easily define and describe for you. that was a very important lesson, and i learned a lot of little lessons for crisis management that i never expected to need to know. >> if you look at finance now through the eyes of the stakeholders, consumers, taxpayers, do you think the government has represented their interests well? you have had all this roll of regulation? >> well, regulation. i think the most important regulation and the most important role is the way the banking system has been deleveraged forcibly. in some cases it looked like a medieval fair with the noises and hearings, and people around t

thursday, treasury secretary steven mnuchin testified before the house financial services committee on the state of the international financial system and the effects of the tax reform legislation signed into law by president trump in november. this is three hours. [inaudible conversation][inaudi] [inaudible conversation] [inaudible conversation] [inaudible conversation] [inaudible conversation] [inaudible conversation] [inaudible conversation] >> the committee will come to order. all members will have five legislative days in which to submit materials to the chair for inclusion in the record. the hearing is entitled the annual testimony of the secretary of treasury and the state of the international finance system. a recognized recognize myself for five minutes. whether looking at unemployment, disposable family income, gdp, small business optimism, it is clear many if not most americans are enjoying the very best economy of their current entire lifetime. no man is more responsible than president donald trump. however, we find ourselves in a full-fledged global trade war with no end in sight, all of the economic gains he has helped

the financial crisis began. banks failed and the global financial system looked at risk of collapsing. overnments came to the rescue of banks propping them up with taxpayer money. could such a thing happen again or have lessons been learned. in the european union stricter rules were put in place under the supervision of the european central bank. they require banks to manage risks better than before and ensure they have sufficient liquidity to stay afloat. fund crucially to boost their capital reserves five. to see why this is so important take a look at this very simplified example of a bank's balance sheet on one side is the money the institution has lent if all goes to plan the bank gets that money back plus interest these loans have to be backed up by sufficient capital this could comprise deposits such as personal savings accounts or bonds but technically neither belong to the bank after all customers can withdraw their cash anytime they want and when bonds depreciate in value banks write that off. the bank's own capital on the other hand includes things like profits it's previousl

worry so much because china has enough maneuvering room to avoid a full-scale meltdown of the financial systembut are there in on this risks that continue to build up? certainly there are some positive signs. the rate of growth relative to gdp has leveled off. there is some attempt to deal with the problem of bad loans in the banking system, but the realities of the allocation of credit over the last couple of years has not been great. the fundamental problems, the incentives on the financial rather than the more productive and dynamic parts of the economy that can generate more output and employment, that fundamental problem has not been solved, and without fixing that, it's hard to see china growing in a balanced and sensible way. haidi: professor, always great to have you. tomorrow, don't miss our interview with entrÉes trade minister. check ont a quick the latest business flash headlines. tesla fell the most in march, models made in california. this erase where the top in the notes the market value, dropping tesla behind general motors once again. tesla has suspended production of the mode

the u.s. dollar system and the way that the financial sector has been set up actually has posed a huge proliferation problem at-large not just in iran and north korea and other places because of the way that it is insulated from the financial system and not from penalties. so there is a concern given the chinese and russian investment that we could end up in that scenario where they are more closely aligned with russia and china and as they pointed out, neither countries are studying the same proliferation standards for nonproliferation at the u.s. house. so essentially they are ceding leadership on this issue, nuclear nonproliferation to the chinese and russian. and i just want to complicate that a little bit of adding to the fact the united states is also now negotiating a nuclear cooperation agreement with saudi arabia. i bring this up because they have the prerogative to reveal these agreements and it's something they need to pay attention to because if you look at saudi arabia, they have safeguards with the agency and they do not abide by that measure is known as the additional protocol which i

but we think those as complementary and essentially the financial system and to learn about the economy and to get out into the economy but we do have a separate division as the vice chair has statute to recommend policies that cover the past ten years to be imposed so now is the appropriate time to take a step back to the holistic review of the impact of those regulations then to render that holistic view now is that such a time for their review? but higher liquidity but to look at everything we have done the last ten years to make sure it is effective. >> has it had any burdensome regulations at this point? >> mainly as it relates to medium or institutions there is work we can do on that front and to level off those first five months it is disappointing because that is a leading indicator of that residential investment but those developers just did not keep up that that tight supply of skilled labor how long have we been approaching this? they have a great tailwind behind us with lower unemployment and more capital not to have that economic recovery what's in store for us how do we be

the u.s. financial system is substantially more resilient than a decade before the financial crisis. en there be a trade war, what tools do have to move quickly to ensure this continues economic growth? mr. powell: i think the financial system is well-capitalized, and so much more strong and resilient in so in aways that it is there position so it can be resilient against shocks of various kinds, that would bit -- that would include tinges to trade policy. i think our monetary policy tool, we can always use to release the manned. if demand weekends, we can support demand. is you could be seeing higher prices because of tariffs. at the same time, you are seeing lower economic activity. potentially, that would imply higher inflation. a mere increase in tariffs would not mean higher inflation, but if it did that have -- but if it did have that application, it would be challenging for monetary policy. chair: the chair recognizes a gentleman from pennsylvania, mr. ruff is. welcome, chairman. i want to talk about the automatic designation being set billion. 50 this was an important change -

super computer in their pocket so we can instantly use block change to bring them into the global financial system they won't be dealing with the bank they'll be dealing with all kinds of peer to peer financial service. as for collaborative lending and other stuff and you can just see an example of that venture capital in the last year has been completely turned on its head through these initial coin offerings which are bought chain crowdfunding campaigns they raise more money for early stage companies that all venture capital in the world so that gives somebody in africa an opportunity to get access to funding and that's just the tip of the iceberg then you've got big issues like land titles seventy percent of the people in the world won't in the developing world in one land don't have a valid title so you're in honduras and some dictator comes to power says i know you got a piece of paper says you own your farm but my government computers says my friend owns your farm and this is happening or that actually happened and you put land titles on to a block chain this isn't a mutable ledger and no di

> now treasury secretary steven mnuchin testifies before the house financial services committee on the state of the international financial system. this is about three hours. [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] [inaudible conversations] >> the committee will come to order. without objection that shares authorized to declare recess of the committee at any time and all members will have five legislative days within which to smit extraneous materials to the chair for inclusion in the record. isn't on the annual testament of the secretary of treasury and the state of the international financial system. i recognize myself or five minutes to give an opening statement. whether you're looking att unemployment, disposable family income, , gdp, small business optimism,di you name it, it is clear that many if not most americans are enjoying the very best economy of their entire lifetimes. and no man is more responsible than president donald trump. however, if wee find ourselves mired in a full-fledged global trade war with no end in sight, all of

discussions and is the chairman of the financial stability oversight council in that capacity as the chair what do you see as the biggest risk to the financial systemright now? >> the good news is from the capital and credit standpoint, that is not a major concern. the issue i focus on at the moment the most significant is cybersecurity, and i am not implying in any way that it is a cybersecurity risk. this is the area that we need to continue to invest in and have public-private partnerships. i am very focused on the safety and security of the financial infrastructure. >> the gentle lady from missouri, ms. wagner, the chair of the oversight and investigations subcommittee. >> thank you and welcome. according to the most recent numbers provided by the united states trade association, the missouri exports supports some 88,000 jobs totaling $13.9 million worth of goods to. that's white earlier this year i joined many of my colleagues in urging the president to rethink the terrace on the steel and aluminum. those by mexico will absolutely be felt in my home state of missouri, which i noted earlier was heavily on trade. my constituents are concerned th

. >> our position in the financial system as a very big influential firm that was influgse in the context of a national crisis that affected everybody. so that was an adjustment we had to make quickly. prior to the financial crisis, i never would have appeared at anything. my predecessors didn't, and it wouldn't have occurred to me. i realized that if you don't describe what you do and help define yourself, you would have left a vacuum that someone will describe and define for you. that was an important lesson and i learned lessons for crisis management that i never expected to need to know. >> if you look at those through he eyes of the stakeholders, consumers, tax payers, do you think the government has represented their interests well? you have all this roll of regulation. lloyd: i think the most important regulation and role is the way banking system has been deleveraged forcibly and aggressively. it looked like a medieval fair with all the noises and things, and people around the world would watch this stuff in dismay about this public display. at the end of the day, the u.s. did it.

the financial sense as the u.k. and i can be a shame for europe if you have a more closed financial system with the u.k.. and the importance of a global financial system as well. being: you talk about data dependent and you have to keep an eye on what data is coming down the pipe. at the moment, we don't even know if theresa may will be prime minister for very much longer or not. stephanie: even on the basic macros, it is a challenge as it is even if you did not worry about the shape of the post-brexit deal. ony will face a challenge thursday and raise interest rates almost everyone thinks. after that second rate rise, which leaves interest rates extremely low by historical standards, they have a dilemma. they look to get a bit of inflation and although the economy is weak, we are not sure the u.k. has the same productive potential it used to because of brexit. that is affecting them now. many people say if you look at the data, you say why are they raising interest rate? they look down the road to a week situation out of the e.u. caroline: it is a fascinating interview you conducted with the central bank

the first is related to financial stability and stability in the overall financial system. i watched the conversations you had with senators warren and brown about capitol. i'm actually interested in hearing yo you for a couple of minutes because i do have two questions. elaborate on the risk that we might not see coming that aren't conventional capital risk. , my concern of course is we tend to get hit by the bullet but we don't see it while we are focused on the poker rule or capital, what happens, what comes upon us out of nowhere these things tend to come with a speed and severity that we don't predict, so what keeps you up at night it is some sort of conventional capital ratio type issues? is a student loans, proprietary trading, elaborate on things that concern you with respect to stability in th and the bankingm in particular. >> the answer to me would be cyber risk. we spent ten years building up capital, helping the banks of the more conscious of the risk and building up liquidity, stress testing all those things and we have a good playbook we monitor all the things

> treasury secretary steven mnuchin testified yesterday before the house financial services committee on the international financial system he also answeredue

is we have global competition and some of the most entrenched interests that were built in the financial system now need to be more honest compete better put together better systems and then you know look at the when we have the next financial crisis if we have a crisis this time but not too big to fail you can replace them money with the fed calling or a quick currency created a central bank and that could compete with bitcoin big win win because if the centralized one that allows you to only spend that and it encourages savings but the fact of the matter is you now have all this disruption you have this competition and when you first saw the call it is a record and you would you know bringing telling the world about all this corruption and problems well we now have the answer you force them out of the crypto industry yeah i think it's a good point there is that the next crisis and we know it comes because it comes as a result of the bailouts the other preceding crisis they never solve the problems they just print more money now you've brought up a lot of good points there you've given talks a

the first one is related to financial stability, stability in the overall financial system. i watched the conversation you had with senators warren and brown about capital. i'm interested in hearing you for a couple of minutes, because you have a few questions. elaborate on risks that we might not see coming that aren't conventional capital risks. my concern is we tend to get hit by the bullets we don't see. while we're focused on the volcker rule or capital, what comes upon us out of nowhere, these things tend to come with a speed and severity that we don't predict. what keeps you up at night? is it student loans, proprietary trading? elaborate on things that that concern you with respect to stability in the banking system in particular. >> the clear answer to me from that would be cyberrisk. spent 10 years building up capital, helping the banks be much more conscious of their risks, building up liquidity, stress testing, all those things, and we have a good playbook there. i think we carefully monitored all the things you mentioned, although some of them are worth talking a

the first is related to financial stability and stability in the overall financial system. i watched carefully the conversation you had with senators warren and brown about capital. i'm actually interested in hearing you for a couple of minutes because i do have two questions. elaborate on risks we might not see coming that aren't conventional capital risks. my concern, of course, is we tend to get hit by the bullets we don't see. while we're focused on volcker rule or capital, what comes upon us out of nowhere, these things tend to come with a speed and severity we don't predict. what keeps you up at night that is not sort of conventional capital type ratio issues? is it student loans? proprietary trading? etfs? elaborate on what concerns you with regards to stability in the banking system in particular. >> so, the clearance to me from that would be cyber risks. we've spent ten years building up capital, helping the banks be much more conscious of their risks, stress testing, all of those things. we have a really good playbook there. i think we carefully monitor all of the

underestimate their ability to cause havoc the united states as you pointed out controls the global financial system the dollar based system they can slap i mean they slapped sanctions on mr. roussel and this is caused major distraught came in by november and european companies if they trade all oil years buy oil from iran and the ok but that's that's for the russian standpoint some degree of deterrent would be useful simply because otherwise the the if the entire financial market is getting up right now and it's you know i'm working out the financial. and raising funds for russian companies right is quite complicated right now the bond market has become a lot more a lot a lot more expensive to access because the constant threat of american sanctions now whether trump can avoid further sanctions i think is and is another question and we should do a separate program on the weaponization of the dollar you're going to see i mean let me go to you about iran because you know we had we had president we talked about he was kind of the world according to trump here but then you know he kind of goes back to

. >> you really did think, oh my god, the financial world could collapse. >> confidence in our financial systemitutions is essential to the smooth operation of our economy. and recently that confidence has been shaken. >> after a tumultuous two terms, president bush's dealing with the financial crisis that could be devastating to the nation. >> fear has taken hold of the financial market. >> this is irrational panic. people are selling first and asking questions later. and bush and his team decide that the answer's going to be government. >> i faced a choice, to step in with dramatic government action, or to stand back and allow the irresponsible a/cs of some to undermine the financial security of all. under our proposal the federal government would put up to $700 billion taxpayer dollars on the line to purchase troubled assets clogging the financial system. >> the troubled asset relief program shows you, i think, just how much resistance there was. >> this bill offends my principles. it is simply wrong. it's irresponsible. >> new york city fat cats except joe six pack to buck it up. >> their i

we don't know if they were followed through or not, the end of the day, the us does control the financial systemllars. where can we go? what has been interesting is that prior to this visit to europe uranium media has been briefing that rouhani expects an economic package. but the european media and european sources have not said anything of the sort. —— iranians media. every attempt to do business with iran has failed. blocking resolutions didn't do it, i don't see how this will work. what does this mean for the iranian economy, and the price of oil? we should expect half a million barrels of oil at least a day to come out of global supply as a result of the sanctions. i don't see how the iranians could continue that. we need to start talking about prices in the iranian economy. thank you, that has been really interesting. we shall keep you up—to—date with how president rouhani progresses this week in europe. let's take a look at some of the other stories making the news. societe generale has agreed to buy commerzbank‘s equity markets and commodities business. the two banks haven't disclosed a

is no wonder that international banks and firms refused to enter the iranian financial system. the iranian people are rightly frustrated with the regime. expressing their frustration in nationwide protests and smaller acts of defiance about the country. the regime continues to crack down on these legitimate calls for reform with more all oppression and -- with more oppression and even greater violence. the united states stands with the iranian people. since withdrawing from the iran has, the united states sanctioned 53 individuals and entities for human rights abuses, or acts of terrorism, and we will continue to do so. we designate the head of the weiciary, which demonstrates will target those responsible for human rights abuses at the highest levels of the iranian government. rich a history and as deep a culture as the iranian people deserve a government that treats them with dignity. i will be traveling to europe the end of this week, for meetings with the political directors from germany, france, and the united kingdom. that will continue very close consultations we have had

the u.s. dollar system. the way the chinese financial sector has been set up as caused a huge proliferation problem writ large not only in iran but in other places because of the andthe sector is isolated insulated from the u.s. banking system and penalties. so there is a real concern given the chinese and russian investment in a ran things that we could and up and that scenario where we are aligned with russia and china. neither of these countries are studying the same proliferation standards. -- excuse me the same standard for nonproliferation. so essentially, the united states is giving up influence to the chinese and russians. i want to complicate that by adding into the fact that the united states is also now agreementg a nuclear with saudi arabia. i bring this up particularly because congress has the prerogative to review these agreements and i think it is something congress needs to pay attention to. saudi arabia has the barest minimum. they do not abide by the more intrusive measures of protocol. saudi arabia is negotiating to allow enrichment and reprocessing kind of in the country. in a scenariop wh

the bank of england governor says he spends half his time preparing the financial system and economy for brexit. he said the central bank has a responsibility to manage the downside if there is a certain outcome. global news 24 hours a day on air and on tik tok on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm kailey leinz, this is bloomberg. caroline: a quick look across the assets. big movements in bonds. goingies leading us down as low as the technology industry as well. the s&p 500 off to a similar degree. ,heck out what's happening dollar weakness today with a rebound slightly in the chinese --. brent oil. this is bloomberg. ♪ caroline: live from london, i'm caroline hyde. vonnie: this is "bloomberg markets." asuge weekend -- a huge week leaders meet to discuss their policies this and the fact we are approaching the 10 year anniversary of the financial crisis. we are back with adam tooze, professor of history at columbia university. i want to read another quote. " whichhor of "crashed will be out on shelves next week. the translations

. -- adding toaving fragility to the financial system for the next hour. got a few seconds left.to get your opinion on the yield curve everyone is watching it closely. what is it telling you? steven: it is telling me normal. if you look in the mid-1990's in mid-1980's, the curve stays relatively flat for an extended period of time. what was abnormal in this recovery was how long the fed needed to engineer a steep yield curve in order to get the economy righted. if you think about where the level forward and current inflation expectations are, the difference between real rates, point a 20-40% basis spread is not that unusual. it is not a negative until it dips negative. for the economy. one other thing i would add is that for me, the kirk -- the curve that matters is the nominal rate of growth is in final sales. you will see when the commercial the rate ofs over growth in nominal sales, that is when you get a recession. we are not there yet. paul: thanks very much for your insights. very reassuring. u.s. economist, stephen blitz joining us. remember, bloomberg users can interact w