this action provides an amount of funding and the terms that we need, that is low cost loans over a long-term that will allow us, as a city and also the housing developers and owners who will be the ones putting this money to great use to achieve our mutual anti displacement and preservation goals. with that i will let jonah and amy tell you about this program. >> can i ask a quick question. it's blocking my mind right now. on your presentation, which is going to -- this is mm like $35. >> that's a abbreviation for million. $350 million. two ms means what? >> millions. >> really? >> many millions. mm is just -- >> i've never seen it. >> next time we'll spell it out, sorry. >> good afternoon, supervisors. amy chan from the mayor's office of housing and community development. so the proposed legislation creates the seismic safety retro fit and affordable housing by repurchasing the seismic safety bond passed by voters in 1992 as proposition a. proposition a authorized the city to issue $350 million in bonds to help homeowners comply with the city's requirement to retro fit unreinforced masonry

terms, you cannot ignore the federal reserve. let me be crystal clear about this, when the fed tightens to make it more expensive to get a short-term loan, for years, this didn't matter baurecause, rates were so low. talking about going from 2.25 to 3.25% by the end of next year for these short rates. guys, that's serious despite the relatively strong numbers we saw from the big banks today, i am concerned that we could be heading into big trouble in the earnings. if we get the promise rate hike in december, follow them by three more rate hikes next year. i am betting that will cause an accelerant even if we really accelerate from four point to 2.2%. that is going to be hurt the stocks a lot the thing that terrifies wall street is not that the housing and the autos and the corrugated packaging, and chemicals are doing worse, the feds seem oblivious to what is happening on the ground. when powell talked about overshooting last week, he was talking about collateral damage. charles evans from the feds in chicago did the same thing in an interview. it is almost like they don't care this very morning, jpmorgan jamie diamond warned i know the

more in the short term at least, whether you are in the bear longer camp -- monger camp or feel this is a setback on the long-term bull market. lots of people see downside in the loan -- short term. we were expecting weakness in economyuities, but the seems to have taken a further leg lower. there was optimism that once asian equities opened lower, they might stabilize given day on per -- underperformed all year. we are seeing asian equities underperform expectations, go a little further and that is worrying going into the european session. matt: what are the macro factors that led to this selloff? i am just looking at valuations. we weren't off the charts with valuations. we were hovering around 18 for u.s. stocks, around 15 for european and 14 for asian stocks. not crazy valuations. is it the trade war that is concerning investors or is it, as donald trump said, the wild crazy, loco federal reserve president? mark: there is a number of things. interest rates have been a huge part of the issue. yields have surged, and you have seen a little tech stocks problem. valuations were stretched. we have seen the micro hacking story, expectations come down a little bit. th

. >> most people want to say they are limping in the property becausehe terms of the loan will be better than if buying as investment. >> mmat leib of apec home loan says this is the most common typef frau he sees but all fraud means more risk when he sells to banks or investors. >> if for some reason they see something that we missed tha we should have caught, they could then force us to buy back the loan. meaning that they -- they won't actually purchase i and they'll make us buy it back and keep it. >> states with the highest rate of fraud risk are new york, new jersey, florida, d.c. and mexico p california, the priceyest real estate market ranked ninth. and fraud is easier than ever to perpetrate thanks to the internet a quickts search res in a befy of cites that not only alnerality fake pain pay stubs to but geny phone calls. >> people can generality a fake thingsb and do all these on the internet they couldn't do 10, 20, 30 years ago. > the risk isn't just from borrows. brokers who package loans are committing more fraud.be why? use as interest rates rise and the refinance market i

loans. the governments from asia to africa, europe, even latin america. yet, the terms of those loans are opaque, at best. and the benefits invariably flow overwhelmingly to beijing. just ask sri lanka, which took on a massive debt to a chinese state companies build a port of questionable commercial value. two years ago, that country can no longer afford its payments. beijing pressured them to deliver the new port directly into chinese hands. it may soon become a foreign military base for china's growing blue water navy. within our own hemisphere, beijing has extended a lifeline to the corrupt and incompetent regime in venezuela that has been oppressing its own people. they pledged $5 billion in questionable loans to be repaid with oil. china is also that country's single largest creditor, settling the venezuelan people with more than $50 billion in debt. even as the democracy vanishes. beijing is also impacting some nation's politics by providing direct support to parties and candidates who promise to accommodate china's strategic objectives. since last year alone, chi

will months.in the coming rishaad: softbank says it lined up commitments for $9 billion loan for the vision fund, provided by banks linked to the anticipated ipo. they are finalizing the termsloan. deutsche bank mizuho sumitomo mitsui are among other banks working on the ipo. david: let's get a quick check of markets. southeast asia stocks down. malaysia is coming out with some comments here that they will be leaving ratings agencies. they are still studying and looking whether or not to impose new taxes. one market that comes on in the next hour is thailand. from that market, the commerce ministry is out. in terms of projections for exports this year, overall expected to grow by 8%. let's change the boers and have a look at the big movers here in hong kong. allele is really pulling the index down, adding a lot of pressure on the index itself, given how heavily weighted they are. in recent days, we are reopening here today. let me leave you with this, other movers here in hong kong and two of them in australia on the back of these changes. credit suisse raising the semiconductor to outperform. pict getting a not as well out of j.p. morgan. we will be back. this is bloomberg

country is offering hundreds of billions of dollars in infrastructure loans to africa, europe, and even lat continue america. yet the terms of those loans o are opaque at best and benefits flow overwhelmingly to beijing. just ask sir a lanka which took on a massive debt to let chinese state companies build a port of questionable commercial value. two years ago, that country could no longer afford its paths, so beijing pressured sri lanka to deliver the newport directly into chinese hands. it may soon become a forward military base for china's growing blue water navy. within our own hemisphere, beijing has extended a lifeline to corrupt and incompetent ma dura regime in venezuela that's been oppressing its own people. they pledged $5 billion in questionable loans to be repaid with oil. china is also that country's single largest creditor. saddling the venezuelan people with more than $50 billion in debt, even as their democracy vanishes. >> they are also providing direct support to parties and candidates who promise to accommodate china's stra teeing particular objectives. since last year alone, chinese communist party has

we're seeing demand on the loan front, short-term rates boost, obviously, net interest margins by waynot passing along all those rate gains to depositors. and in addition to that, the economy continues to operate at above-trend level which ought to support a yield curve that remains relatively positive and, this far, allow banks to borrow cheaply and lend dearly. ashley: exactly. mark and deirdre, thank you so much. the dow, again, it's been up and down. we are seeing some losses on the nasdaq and slightly down on the s&p, but before we go, of course, let's bring in liz claman for the last hour which is always the exciting hour, liz claman. [laughter] liz: i like how you said i sneezed the markets were up, i coughed and the -- ashley: exactly. liz: quite the reversal of fortune in the last hour as the dow right now just slightly above the flat line. s&p is fighting to get into the flat line, down 2 points, and the nasdaq, it's been an ugly day this, fighting off trade, rate hikes and big tech fears. this as that political battle for the ages comes to a close. t-minus four hours until

this is a example of the government selling off short—term assets for capital gain. can the minister confirm how much of the loanis will achieve long—term to the taxpayers at wyeth uk government devaluing assets and selling them off for what less than they're worth? eight cell... but i will not be taking lessons from the snp on student finance. they're bringing us to the end of thursday parliament. do join alicia mccarthy on friday evening for a department three weeks. for now goodbye. hello there. with storm callan approaching from the west, we are in for somebody ghillie unsettled weather over the next couple of days. very wet and very windy. now, we gotan days. very wet and very windy. now, we got an amber warning in force from the met office for very heavy rain, particular across south wales. there, the rain will be quite slow moving through all of friday and saturday. there could be some flooding impacts. the winds also a real feature of the weather through the day on friday. now, strong south—westerly gales were many areas, strong winds to the irish sea, around the irish sea coasts we could see gusts up to

>> for both of these, it is the that we have been looking at in terms of interest of loan s, in terms growth and possible macroglobal risks with the u.s.-china trade war. with morgan stanley, we're looking at earnings rising 15% there and with goldman sachs, e.p.s. could probably jump 7%. haidi: thank you so that in new york. a look at the last of the new york bank earnings out this week. on ust a moment, focusing the slowdown in china as we run through the numbers. this is bloomberg. haidi: it is mine: 30 a.m. in sydney, -- 9:30 a.m. and sydney. look at futures, which are exactly unchanged at the moment. indicated downside, about .1% when trading gets underway. are saying the situation when it comes to selloff in sydney is looking done. we are in oversold territory and we are looking at a pretty bright earnings outlook for some companies listed in sydney. i am haidi stroud-watts in sydney. shery: i am shery ahn. you are watching "daybreak australia "daybreak australia -- you are watching "daybreak australia." jessica: cnn's as saudi arabia is preparing to admit that missing journalis

offering hundreds of billions of dollars of infrastructure loans to governments from asia, to africa, to europe, even latin america. yet the termsf those loans are opaque at best. and the benefits invariably flow overwhelmingly to beijing. david: vice president mike pence describing an insidious tactic that he alleges the chinese are using to squeeze everything they can out of nations that can least afford it. for more, we go to marc lotter, former press secretary to vice president mike pence. this is almost like the aliens in "independence day," they stop in one place and squeeze everything they can out of it like lock cuts and move on to another place. is that what the vice president saying it? >> basically. too many people think of our disputes with china as relates to trade, manufacturing, cheap products, things like that, but what we have to identify is the level that china is trying to infiltrate not just our companies as the previous report was suggesting but influencing our elections. david: right. >> they're taking very malicious activities in the south china sea. what they're doing with other countries indebting them t

it was made by a listserv release, the loan-loss made below the net charge-off. in termsf bottom-line numbers. david: is it encouraging in terms of credit quality? yeah, it's solid in terms of today, but there are signs on the horizon that it could take a turn for the worse next year. david: deposits are up, but cost are down. it's nothing flashy, but trying to get the job done? charles: he's espoused a theme of responsible growth. you know, it's creating some discomfort within the franchise. particularly in the investment banking area. one of the things i have been saying for the last five years is is bank of america spending enough to grow. formhas been the challenge when a hand. he has not shown an ability to grow this bank very well. you are getting 3% revenue growth right now in an environment that jamie dimon calls the golden age of banking. you know, you got s&p revenue growth of 6%, 7%, 8%. there has to be more investment and that's hard to do when you're cutting expenses and that's what they have been doing , trying to keep their expense structure low and declini

the board. seen concernve about terms getting looser on leverage loans, the banks will pay attention but one ofacks of dodd-frank was that issuers do not purchase a paid as much, is that part of the problem? what they try to do was make clo's hold a little bit of risk, and they rolled that back. that's probably not the main driver of what is making that'se loans riskier, just incredible demand. people want this rate. shery: thank you so much for that with the latest on these clo's and leverage loans. amanda: -- shery: one story that caught my eye was this opinion these about chris finding out that his kids plane tickets cost more than his , he dived into what was happening and he realized that it was the extra cost of strollers, car seats, and airport charges, maybe they are justifying it that way but it still doesn't look good. an amazing thing when our cost of business is now going to be added onto the cost of what you will pay for, they have extracted all the individual cost the going to flying and we pay it. and that's part of the problem. shery: and we'll pay for it, extra legroom, and oth

the economy seems to be slowing more than they want area we just had some loan data out -- while that may be good in terms of helping us for the economy, we have this whole concern about deleveraging and financial market problems. it is a delicate balancing act. my best case says they will muddle through. i don't look for a big crisis that will stabilize global markets. >> yet you look at chinese debt. 200 chart shows you it is a 60% of gdp. debt is alsot pretty high. you have household debt as well as when you have all of these being factored in, and the fact that they are trying to prioritize growth. do they have many choices left? sitting on a few trillion dollar war chest. that goes a long way. they have a tighter control over the fed does. i think they can muddle through. the fact that global growth is slowing makes it difficult for all of the economies to rebound. i will keep my fingers crossed. call forard people disaster in china for the last 20 years. i am still waiting. i think you are not the only one who has his fingers crossed. >> coming up, we hear from original left a negotiator brian mulro

loan that piece could support. and the tax credit equity would not have to be repaid. and there would be a piece of financing from the mayor's office of housing that would be long-term, probably a 55-year loan on the moderate income piece it would be a conventional mortgage. we don't have a lender yet identified for that piece. but they could be a 15-year loan as well to repay during that time frame. and the mayor's office of housing and community development subsidy would be placed on the moderate income portion. as 57-year loan. >> vice president cook: once the debt has been paid down, what is the revenue go after that? does that question make sense? does any of the rental income -- >> after 57 years? >> i don't know if we have contemplated that yet. >> hi. i'm from the mayor's office of housing. i love your questions, we're real excited. i don't know that we're there yet with all the financial details, but the school district will have a long-term ground lease. where the city has a ground lease, to your point, once it's paid off, you share in the cash flow. we would be happy to engage with you through the staff to make sure all of your financial needs are met when we struc

encourage you to use your discretion to address the overly broad application of these provisions to venture capital, long-term inventions -- investments, and loan creation. with those suggestions, i will give the final instructions to our senators as well as our witnesses. for senators wishing to submit questions to the record, those are due in one week on tuesday, october 9. we ask the witnesses to respond properly. once again, i thank you all for not only your efforts in implementing 2155 but for being here today, and this hearing is adjourned. [captions copyright national cable satellite corp. 2018] [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] confirmed the senate brett kavanaugh to be the next associate justice on the u.s. supreme court, 50-48. senator lisa murkowski voted present. senator joe manchin of west virginia was the only democrat to vote for the confirmation. announcer: the c-span bus recently made the long journey to hawaii for the 39th stop of our 50 capitals tour. our us all weekend to watch visit to hawaii on c-span book tv and american

loan growth? ramy: jpmorgan was the standout. i love saying record. $13.9 billion, thanks to the rates along with steady growth in core loans. i want to show you what is happening in termsearnings surprise area i will terminal, 2.4% is the earnings surprise we have gotten so far with banks reporting. not so much. look at consumer discretionary, up 7% and information technology at 4.5%. we will see if this continues because more banks are coming up. ,ank of america, merrill lynch october 15. morgan stanley october 16. shery: when will look at that and how rising rates have an impact on this going forward. thank you so much for that. last week stock market carnage may have stabilized, but fragility remains. preview asia's trading day. this is bloomberg. ♪ ♪ sydneyit is 9:30 in where markets open in 30 minutes ' time. he areas asx -- here is asx futures. looking at downside when we get into the citi open. you have very short going into the kiwi and the aussie dollar, we had a tech driven equity rally recovery on friday on wall street. i am haidi stroud-watts. shery: u.s. markets rising the most in six months. you are watching daybreak australia. let's get to first word new

the long-term yields. the cycle is probably not over. the technical point on the high-yield will be that the loans get called away with the spreads tightenthey will not participate in the interest rate rally. jon: you don't think we have seen post crisis heights in the united states? >> i.t. is different. there are opportunities. when you adjust for everything, the spreads were incredibly tight earlier in the yield. in high-yield, if the fed succeeds and we have a moderation in growth for a few more years, i think the technicals could move the market quite a bit. jon: do you share that view? >> as we move forward in the fed continues to raise rates, think one other aspect to be aware of is the change in the size of the i.g. market and how it has grown exponentially. as you get closer to recession or toward the end of the cycle, if you see downgrades into high yields it is a factor you need to consider as well. jon: on credit? >> i'm drawing a blank. we have 7% yields in high yields. i think it is a threshold that matters to people. with the rate rise, we can see further spread compression. we would be buyers into the end of the year. tec

the headlines. netflix shares soared. is due to subscriber numbers confirming they are growing faster than predicted. a $9 billion loan has been lined up for the vision fund. the termse been finalized. other banks are also working on the ipo. the first g7ame country to legalize recreational marijuana. stores began sales run-up ahead of today's legalization. we are hearing from some buyers that the products were expensive . what was the mood like? >> i would say the mood was very canadian. people were civil and polite. not too passionate about the whole thing. a little bit of skepticism, enthusiasm, not too much of either. prices, summit shops here are trying to compete with the black market by offering promotions. we will see how that plays out. a lot of people are saying they can buy cheaper marijuana in the black market. then again, there are people who told be willing to pay more do something that is now legal. what is the reception they have seen so far? it has been subdued. it would be the canadian equivalent of an apple store .pening people were very polite. they were not yelling or shouting. canadians tend to be more subdued. the numbers were also a little bi

the loans from every other origination year through these tables and calculate the implied stress default rates with adjustments for a few factors we didn't take account of in the tables, principally, terms that differ from 30 years and whether the loan is for a second home or an investor. before we get to results, just to make this a little more concrete, what i've done is pulled a slice out of each of two of these periodic tables that the top one table, table one, is for fixed rate loans fully documented and fully amortized, no interest only, no negative amortization. these are the actual default rates for lons that had credit scores between 720 and 769 and the full range of possible dtis and full range of possible cltvs. low default rates with green, red for high. what you can see is that there's a very predictable and strong relationship between risk factors and default. in the northwest, default rates are very low for loans that have low debt to income ratios and low loan to value ratios. as you go down to the southeast, all those rates rise. the table right below it has exactly the same structure, but these are for low doc or no doc loans. comparing cell to cell from the top table

the long-term yields. the cycle is probably not over. in which case, spreads are in. the technical point on the high-yield will be the superior convexity. the loans called away with cash when -- the loans get called away when the spreads tighten. they will not participate in the interest rate rally. jonathan: you don't think we have seen post crisis heights in high-yield space? robert: i don't. i think i.t. is different. there are opportunities. when you adjust for everything, the spreads were incredibly tight earlier in the yield. it seems unlikely we will go back there. in high-yield, if the fed succeeds in not killing the economy and we have a moderation on forth, and this goes a few more years, i think the technicals could move the market quite a bit. jonathan: marilyn, do you share that view? marilyn: as we move forward in -- as we move forward and the fed continues to raise rates, i think one other aspect to be aware of is the change in the size of the ig market, and the triple b's space, how that has grown exponentially when you compare it to the double be space. as you get closer to recession or toward the end of the cycle, if you see dow

come in at 4.1%, positive earnings coming through, it forced the best quarter in terms of loan growthafter the company rebuked it's bad loan provisions, and that is why we are seeing it advance around 6.5%. you.ank joining us from mumbai is our next guest, india's consultant and investor -- thank you for joining us. indiae equity market in really shrug off what has been going on elsewhere in the short term? >> i wish there could be more ,, i thinke downside it is too early to buy and there are decent opportunities among spending and in banking. also investing in india, it still remains one of the --test-growing economies >> tell me about these conviction calls you have before we talk to the contrary in one's. you like a leading aluminum producer, a cement company, a drug company. >> the aluminum producer, nam they are the most proficient aluminum producers in alumina, imaking the think it is expanding its cap -- i thinkpremium the fairly decent opportunity with upside potential. cash flow is very good and it for aake the valuation longer time. one commodity as far as discretionary spe

issuances by home loan banks were that kind of good money and the reason the home loan banks could expand there loans to say, countrywide which was on the list is that the buyers of short-term debt would buy home loan as good money in bill's terms so i think you make a strong argument and you want fannie and freddie and you want to throw in the home loan bank, too. and i say that in spite of being a member of the alumni club. >> i have to defend something how scott said because he's not here to talk about it, but i thought he conclusively showed that interconnectedness had nothing to do with the financial crisis. it was all what he called contagi contagion which was basically all of the institutions holding the same bad assets. so i don't think you guys are actually on the same -- on the same wave length. but we should pass on to the next presenter. >> they're cfis either way. >> who is phil flagel. phil is a professor at the university of maryland's school of public policy where he teaches courses on economic policy and he's a non-resident fellow here at the american enterprise institute. he was the assistant secretary for economic policy at the treasury department during

the overall technologies that drive crypto which is blockchain. is this something you are looking to integrate within yourself to make loans quicker and to use that technology? >> over the long-term would love to partner with those investoring in blockchain. blockchain has a lot of opportunities to bring out inefficiencies. it would be great to be in a position someday where we improve or fund alone and sell the loan -- a loan, and iselle -- and sell the loan. the cost of capital goes to zero allowing us to get better values to our borrowers and lower rates. caroline: in the culture was something you were tackling. when you took the helm, there were concerns about sexual harassment allegations under previous leadership and perhaps a toxic culture. that has been something across silicon valley. how do you tackle that? >> i could not be prouder of the progress we have made. secondarily, we want to build a world-class culture. part of building that is defining what matters the most. we defined 11 core values which we think will make us build a foundation of one of the best cultures in the world. the only thing difference between our company and being the best culture in the world, i

will be less thoughtful than last night because it's a new loans were owned on recourse leverage and that is not the case today. feels liket-termonment will continue to support loans and as long as it still increase continues, the low market is good be stable. alix: great to get your perspective. coming up, the biggest on wall street, tony dwyer and his latest market call. this is bloomberg. ♪ alix: tony dwyer wrote yesterday -- said the stage for the market. is going toeople finish -- the s&p is going to finish this year. joining us on the phone is tony dwyer. when do you want to buy into this? >> that was yesterday where we put that out around 11:00. anytime you have gotten a spike in volatility, you are close to surrounding the low and a couple -- besides volatility. alix: do we have to see a catalyst for a bottom or is it going to be enough to have indicators technically? you are getting boeing as a catalyst from an uptick in lows in the future. you had every rating of what people expect for earnings going forward on the back of caterpillar and other industrial companies. when you listen to what they said, they are not sayi

the biggest beat in terms of share prices. but still it had been higher earlier in the day. how did these banks' loan growth do? pmorgan came in at $13.9 billion in terms of net interest margin. that is unexpected. go to the bloomberg terminal. here we are for the financials. up 2.4%. we have four out of 67 banks reporting. we are of course are expecting more this week, and that includes bank of america and merrill lynch coming in on october 15, as well as morgan stanley and goldman sachs on october 16. the themes to watch are rising interest rates as well as loan growth and global macro risks, affirm k.a. the u.s./china trade war. >> thank you so much for that. plenty more to come on daybreak asia. this is bloomberg. ♪ 10:30 in sydney. markets have been trading for 30 minutes now. we see a bleak picture, health care seeing gains, but everything else not. seeing the biggest losses across energy and materials. oil prices had a volatile week. you take a look at the rebound in the u.s., u.s. stocks rising the most in six months, but futures looking like that bounce could be temporary. shery: 7:30 in new york, marke

the criticisms china gets. it is offering these loans. they are originated by the african countries, they are the ones asking for it. they may have a dream in termsthe nature of the relationship, but i do not think they are trying to shape the future of africa. rishaad: that is not to say aid and lending will not be influenced by commercial interests. interests which some say still have access to resources at their heart. chinese companies see an abundance of opportunities in the continent's rebounding economy, and a green light to raise their presence there under the belt and road initiative. while china sees huge investment opportunities, what about your average portfolio manager or retail investor? can they also come along for the ride? >> if you want to invest directly in the belt and road initiatives, you cannot do it directly. but basically, what you are investing somewhere, perhaps there is a hub for international companies. so as the environment gets easier, say, for example, the cost of power comes down, it becomes more easy or economic to manufacture goods. so that is the story. so i think for kenya and east africa as a whole, you tell

the commercial industrial lending loans to businesses, that's reasonable but it has been weakening for the last 3 or 4 months. you know, mortgage loans are not increasingly strongly. i think you will get mediocre results in terms increase valium. net interest margin is big issue because the fed was 184 basis points effectively from the fourth quarter of 2015 to the second quarter of 2018 and the net interest margin of the banking interest margin overall was only up 26 basis points and as i say, well fargo, pnc had decrease in margin. what that tells you more than fed funds come into the operating, structure of a bank which affect it is net interest margin. i don't think that the net interest margin over the next 12 months is going to go up if interest rates go higher, i think it'll go down and the reason is because they are going to have to pay for for deposits. mike: dick, it's mike murphy, i know the numbers are hot off the press,, do you see anything quik glance that's market mover one way or the other? >> i don't have the numbers so i can't respond directly. but the answer to your question is if the company is showing a significant increase loan volume that's the market mover because all other banks would

term rates keep rising? well, then the banks are one of the few groups that wins because when longer term rates go higher, the financials can charge you more for the loansh they have to determine what the bank pays you for your deposits so check out the daily chart of citigroup, letter "c." citi has been making higher highs and higher lows since june, so you see this pattern. with the action forming a rising channel and at the same time, the short term 50 day moving average which is the red just crossed above the long term 200 day moving average, the blue this is like the holy grail of technical analysis they call it the golden cross. it's a sign that the stock is headed higher. still, it's currently cooling the heels in the low 70s it got up here and then it's marking time right there but if long term rates keep climbing, resistance will be broken and the stock will roar the only real concern -- the accumulation distribution line which tells you whether big institutions are buying or selling. it's gone lower. moreno thinks that will change if rates continue to go higher i don't have that level of conviction frankly what if long term rates stabilize her

different this time is that the leverage loan market has grown at a much more rapid rate than the high-yield bond market. so it is much larger now. there has been reductions in termsat whatrs have in terms of borrowers can do with there cash, their assets and so forth. when the cycle turns, we have more volume in the leverage loan market than we have ever had, and maybe a bit of a different fundamental story, because the protections that lenders have traditionally had, a lot of that has been shipped away by private equity companies over the past four or five years. scarlet: great point. where in the world is the safety point in fixed income trading? we saw some buying in treasuries after a day, a couple days of in, peoplet coming did start to realize the value of treasuries as a safe haven eventually. sure. that has been a traditional response. when equities and high-yield bonds underperform, you see u.s. treasuries do really well. that is the traditional way it works and usually how it happens. that does not mean that is necessarily how it have to happen going forward. you could see a period of time like in late 2013, when we saw treasury values go down and sprea

the nation. officials started a program ten years ago to attract young professionals to subtract student loan debt from the state income taxes. >>> megyn kelly is negotiating termsher departure with executives. kelly will not return to her morning show. there had been speculation she would stay on in a lesser role. >> kelly came under scrutiny for remarks of blackface when discussing halloween costumes. it drew harsh criticism from viewers and cast members al roker and craig melvin. >>> here is proof a picture is worth 1,000 words even if you can't hear them. ♪ happy birthday to you >> that's james anthony. moved to tears on his 60th birthday. he is the custodian at the el memt ri school -- elementary school in tennessee. he is hearing impaired. the gesture from the student moved him to tears. da dave, if you don't cry at that, you don't have a heart. >> i did earlier. thanks, romans. >>> after a disastrous start, the texans are one of the hottest teams in the league. coy wire has more in the bleacher report. we are waiting for the texans to look like the texans of old. >> i think they face your broncos next, dave. everybody just about written off the texans aft

the run-up's in prior sessions. in terms of what analysts are looking for, loan growth, trading revenue among key things. ould note the ceo jamie dimon said banks could be entering the golden age. there is a lot of debate whether this raises an issue of profitability and concern by investors. could it be as good as it gets? look at the other stocks. there has been a lot of volatility in stock performance. credit suisse says this quarter should be fine, will be more about the look forward. economy, but they tamped down expectations for loan growth, which is what analysts and investors are focused on, and particularly what the focus to be for the banks in terms of their outlook. question markss over what oil does from here. look at data from hedge funds, they have pulled back on their bold positions that brent goes brentl positions that goes higher. what is behind that change? away. has been up, up and before we get to brent, this is the new york treated oil and it was at the highest of the year going into late last week. it fell off of those levels. trump has been warning and wanting lower oil prices, call

on the loan growth side, jpmorgan, one of the things we will want to hear about is, the broader banking products. the strong sales are supportive overall in termscustomer relationships, growing sales lighting and the loan volume in now the banking product and we will want to hear of that as well. alix: that did not account for yields that drunk to -- that jumped to three and a quarter. cannot continue? can that continue when they have exposure to auto loans? allison: they think that business is going to recover. with the rate move, we are watching the mortgage side of the business. it is the most sensitive to rates, especially the 10 year and a big jump, we are expecting stable volumes next year and if there could be downside risk if rates go higher. jason: we will hear from jamie dimon coming up. he is a strong voice in the banking world. what you need to hear from him to make you more enthusiastic about jpmorgan? walter: i'm interested to hear what jamie dimon has to say about guidance going forward and what he is seeing given the volatility we have seen. i do not care so much about the prior quarter. it is more about outlook. are they seeing

this is that many people thought that the turks were just presenting enough evidence to embarrass saudi arabia, to then extract some kind of price in terms of loansand it's certainly that the turkish economy needs that. but erdogan has now gone far enough that i think it would be very difficult for him to back down. he is suggesting he's going to present an alternative view from the saudi view. if that happens, since turkey has incontrovertible intelligence, i think it would be very hard for the trump administration to continue with what has been the essentially pro-saudi view, endorsing some of the saudi version of events. and you can see president trump, as he often does, beginning to distance himself, essentially from his own comments of only four or five days ago. so it suggests that everybody's beginning to recognize the saudi explanation is not going to hold water. >> the other thing that's fascinating, it was just over a week ago that the president said on 60 minutes that there would be severe punishment. can you have severe punishment from the u.s. to saudi arabia while still maintaining this relationship, which we know is very important,

monitor, and quite rightly so are assuming as we that the financial market regulators are providing enough liquidity -- we saw that in terms of the loansarlier in the week, providing the stimulus down the track, then i think we should not enough to really be worried about the structural issues in china, at least for the foreseeable future, the next 12, 18 months, the outlook is constructive. we do not necessarily think that will have a material impact on the underlying growth trajectory, and overall, i think they are voicing their level best to make sure conditions look relatively stable. i think it is important that the chinese authorities have mentioned they do not want to use the currency as a weapon, but i think we should imply or expect it, either. honestly, i think we will see it moving back lower, and that is due to the u.s. dollar having its own structural corrections in 2019, but i think it does provide some medium round value, we can and will see it moving slightly lower. see some fairly reasonable degrees of appreciation in the chinese currency in the next 12 months. francine: lucy, the impact on the china slowdown has huge

they get predatory loans and we've seen where not moving students into the correct fields so sometimes a two-year college degree will help our students get into jobs in the near-term where the four-year degrees don't get them work and they oh debt. >> your thoughts on student loan debt. >> i have 7 kids going to college so i'm concerned about it. there's 3 things we can do, primarily we got to hold our colleges and universities accountable. we see in indiana purdue university holding its tuition flat for years in a row . 2nd, we should try different ways to finance our college education. we're talking about innovative ways to finance college education, why don't we allow students to sell equity in their future careers instead of taking on debt. have a lender pay for their education and have the students pay back a percentage of their income as they go through their careers? finally michael, the best way to lower student debt is half as 529's explode. a growing economy addresses so many of theproblems we have not only would people borrow less ,they would be able to find high paying jobs when they got out of school . that'swhat we need to continue to encourage . >>

the debt pile is rising. about $12 billion in chinese loans were given in 2015 compared with just over 100 million in 2000 according to the chinese african research initiative. short-termin terms of taxes. we want to pay for the opportunity. >> the question is, are those loans used in the right manner for the right project that will generate the right type of revenues for the african country? leadingis africa's producer of edible oils. local companies can grab opportunities its leaders pull together. >> you wanted to be a two-way street. you want access to the chinese market, you think you will get that. i think this is where we are becoming more productive. adding more value to our products. that is the great hope. will it happen? i think it is up to us as africans to make it happen. to make sure we do it in the right manner and become competitive. we are allowing china or europe to come in. i will to call the leadership in africa. you talked about the african union. it is still talk. it is nato. no action, talk only. we have got to make it happen. >> still coming up, chinese basketball fans are in for a two china games kicking off. we will discuss the nba's business

the moment. many former northern rock customers can't switch to a new lender because their loans are too large or their credit rating's been damaged. their termsconditions last forever, so they can never get a better deal. so, they are prisoners in that they cannot use the mechanisms of the market to ensure they get the best deal, and they can't have the best and fairest treatment. gorgeous. the only choice for families like the elkins is to pay the high interest rate or sell their homes. we're what you would class as mortgage prisoners, we're on a rate of interest atjust under 5%, which is crazy. wow. so, essentially, if it wasn't for this financial situation, you're quite happy living here. we love it here. the government says it can't offer better rates because of european rules about the bailout of the banks. some homeowners have been trapped on high interest rates for a decade. they say they've been treated harshly by the government bank, ukar. people like rachel and adrian neale in hinckley. i was the first person to get a mortgage in my family so it was a big dealfor me. i worked hard for it. we were getting married in a couple of years