the question is why the treasury, if you get the bad results from trade that the treasury claim, then better results across the entire economy. if you take that results of long-term across the economy because of trade, then you get better results for pensioners and loads of other people as well. quickly, polls are showing it is going towards the remain cap. campasn't the brexit managed to get its economic message across? the treasury message seems to be more prevalent out there. patrick: i think the treasury message is based on this deceit. mark: it is out there. patrick: it is out there. mark: people believe it. patrick: if you tell a lie, or deceit, let's not call it a lie. a misrepresentation. the treasury do exactly the same thing. it is all doom and gloom, but they forget that consumers will have a great time. prices will come down. mark: is your message getting across? patrick: not yet. we have been deluged by all of this message. it has only been now that we've been able to catch our breath and it's going to everyone what they have done. the lie that they have perpetrated, or t

and the treasury. why did i think you cannot legislate that away, and part of tensionthe frustrating between democratic legitimacy on the one hand, and the idea of technocratic competence on the other. we want to keep this technically pure central banker doing things with the beeswax in the years so ars, so they are not influence, and i think that is a mirage. i do not think it can happen. this might sound downright churchill, but it is a bad system to have elections influence central bankers at the identifypersonal, but a better 1 -- does it have the chairs of all the economic departments weigh in and decided this to be the fed chair? i don't think that is a good system. we want to have the democratic and put it where you get people like arthur burns, and frankly, thees is one of my heroes, same legislation that takes the secretary of the treasury of the federal reserve board coincides with the most subservient federal reserve history between 1935 and roughly 1951. so, legislation can really matter. th

the treasury did not forecast one scenario. ted for brexit we would have a populist government. in the event of brexit they would basically veto every eu treaty. a massived be argument between britain and our european colleagues. i think it would be worse than what the treasury said if we went down that line and that is what we would end up with. and i understand why because there is no sort of blue on blue allowed in this debate. i see another scenario that i'm sure liam would not like to talk about. liam, paint me the picture, pose the vote of the instability we might see within the government. liam: within the government i think there is a leave vote. if there is a big remain vote, i think that is quite stable. the problem comes with a very small remain vote, especially of people feel that the election was in some way rigged toward the remain campaign with the public -- the government spending public money for one argument. the most -- mark: why are we talking about this or is it just sour grapes? the fundamental backdrop of

unfortunately, the violations continued. treasury secretary morgenthaler would not tolerate the slightest interest in market interest rates. peter referred to eccles as the most aggressive or independent federal reserve chairman. the opposite was true. the fed mostly accepted morgenthaler demands, and his frequent threats to use the profits from devaluing the dollar that he had gotten when the dollar was devalued, that he would use that to purchase debt in the market and engage in his own open market operations. if it was an 8th of a point increase in interest rates, he thought the u.s. would shake. he did things like invite all the members of the open market committee to his house to berate them. and to tell them at the time a quarter point interest rate increase would be a disaster for the country. the fed responded to political pressure and didn't permit wartime interest rates to rise until 1951, five years after the end of the war. it felt, if you read its discussions, it just felt it didn't have the political clout to do anythin

unfortunately the violations continued. treasury secretary morgan thal would not tolerate the slightest increase in market interest rates. peter referred to eccles as the most aggressive or independent federal reserve chairman. the opposite was true. the fed mostly accepted morgantheau's demands. his frequent threats to use the profit from the devaluing the dollar that he had gotten when the dollar was devalued, that he would use that to purchase debt in the market and engage in his own open market operations. he didn't like, i mean if it was 1/8 of a point increase in interest rates he thought the u.s. would shake. he did things like invite all the members of the open market committee to his house to berate them. so on. and to tell them that i think at the time quarter point interest rate increase would be a disaster for the country. the fed responded to political pressure didn't prevent, permit wartime interest rates to rise until 1951, five years after the end of the war. it felt, if you read its discussions, it just felt it does

the u.s. treasuryepartment has never disclosed the holdings of saudi arabia, but the question has come to the forefront after plunging oil prices. angela wong covers government bonds for bloomberg news. she filed a freedom of information act request the information. what did we get? breakdown of the opec holdings in u.s. treasuries. we know under that category, the -- $300s around 23 billion. of that, 120 belongs to saudi arabia. that number one of slightly during the oil crisis. that is in a trusting fact that we found up from treasury today. david: we are seeing who the big holders of treasuries are. china and japan the top. are the numbers a surprise to you? we always know that saudi arabia accounts for a big chunk of that subgroup. arabia'sto saudi actual foreign reserves, about 600 billion, the fact that they only have 120 billion is slightly surprising. ofalso need to know a lot central bank holdings are up with the new york fed, which they do not break down. we also know the central bank of chin

department of the treasury. in that capacity can he's responsible, among other things, for the conduct of legal and economic aspects of tax policy, including having the honor and the burden of representing the united states into bilateral, multilateral interactions with other countries. before joining the government, mr. stacks served as the head of the international tax, the law firm of ivan and berger and he graduated from georgetown law in 1984 where he was editor-in-chief of the georgetown law journal and he also clerked at the supreme court. so, let me turn it over to bob. we are delighted to have you here and look forward to your comment. [applause] >> thank you very much. i just want to begin by saying that i have not had the pleasure before today, but i would like to see the outpouring of affection and support that we see at the beginning of the ceremony demonstrates i think the great affection that you've been held and the fact that you've been a giant in tax policy and i want to express my appreciation

what true man did was political and should have been done by the treasury under secretary. it would never have happened to be done by the fed if paul was as he later became the undersecretary of the treasury. so we need to know more about why a fed staffer was used. i oppose his idea of having a president appoint staff members because it further harms what remains. what little remains of the fed's independence. also there's a good discussion of the rewriting of the rules governing the fed's operations these changes change the central issue that congress discussed was not how should monetary policy be conducted. that was the gold standard. no one disagreed with the gold standard. at least no one openly disagreed with the gold standard at the time. what they're arguing about is who is going to control the printing of money? the bankers thought it should be them. and the politicians thought they were the people most responsible and they argued about that. they held up the legislation for a long time. woodrow wilson came up with a compromise which was that they there would be a

in order to reduce any impact to the u.s. treasury, we ensure the proposal doesn't allow companies to gain -- the proposal is only about active income and contains limited use. effectively no prevent u.s. companies against taxes paid in puerto rico to reduce taxes for other countries. i think this kind of economic growth is what the island needs to help you get the economy growing again as we indicated there was sense of congress i hope that we can put some meat behind it for this amendment and i yield back. >> any other discussion? then point of order. this once again deals with role 10. falls.ndment i'm not picking on you but you have 169. i reserve point of order, but you are recognized for five minutes. chairman, the -- mr. one thing that has frustrated all of us and certainly frustrated me during -- i do want to highlight what other top of economic incentive that i hope the commission recommends and will look at. this is essentially a concept of hub zones which could go beyond islanddy -- the entire qualifies as a historically un

the treasury secretary on friday morning said delays can happen because you are making progress. can you tell us about what has been the nature of these final delays? what is the holdup at this point? rep. bishop: um -- [laughs] the holdup is that different players, some on our part, some on the other side, have other ideas they want explored, and for common courtesy and to make sure we get this right, it is worth it to take the time to explore those ideas. at this stage in the game, we need to make sure we move forward and that further discussions on this bill need to be done in the open, they don't need to be done in negotiations between individuals. but saying that, with one shot getting this right, we need to do it right. once this bill starts moving, i think it moves through congress very quickly. it will be on the president's desk, and we want to make sure that if there are significant constitutional issues or legal issues we want to explore all of those and make sure it is done right the first way. but the bill will be dropped soon, and still is open for amendment process a

the general decline in the treasury has forced on it the slowdown in the treasury. >> this chart always the correlation is so tight and it speaks to help mobilize u.s. financial markets have become. therejust as idea of -- may be a shift towards services overall manufacturing is still that credit intensive portion, so it makes sense that it moves with bond yields. month data tomorrow for the global manufacturing pmi. last month it was at 50 point 1, 1 10th above the line is neutral. we could be talking to gold manufacturing. >> this is tight connection suggests that international is more important? ties their hands to some extent. like negative interest rates in down.pulling our rates this is just another reflection of that and it goes to show how globalize not only our markets but our economy has become and that could be a challenge for the fed. >> thanks for joining us. scarlet: what you need to know for tomorrow's trading day? next. ♪ scarlet: i'm scarlet fu. "what'd you miss?" don't miss this. i can't get my words out today. spendingpanese capital at 7 p.m. eastern time. i found it

possibility and it's not in the treasury's view. they think they do not have that authority right now and i think they do. they are right when they said it will not solve the problem. , congresshe problem needs to act. >> your government has also issued a debt exchange proposal. what insurance is will investors have that puerto rico will not read a fault if they accept this new offer from your government? >> two things. craters are one group. obligations and guaranteed by the sales tax and are subordinated -- those guaranteed by the government development banks. there are plenty of groups in the fight a lot among each other. them is asking for deal that solves the crisis. proposalsi received that will bring back the crisis in a couple years. that is something, i have to admit that. january 2 year i will not be the governor so i could say to the crisis andolved the kick the can to the next governor. but that would not be fair. i'm asking them to solve the --sis and to put parameters on the oversight board that we are proposing i'm pro

remember, the u.s. treasury unveiled the criteria they would use to label certain countries, saying japan has adhered to the policy pledges. in terms of investors, he says the treasury will look at the tools to curb investors. lots more coming up, we will bring you the full interview treasury secretary jack lew, later in the hour. we will be right back. ♪ mark: hello, i am mark crumpton and this is bloomberg first word news. an american servicemen killed in iraq identified as a marine seal. he was killed during an attack by islamic state, outside the city of mosul. death of an american serviceman since they launched their campaign against i.s. militants in the summer of 2014. an election official in central indiana says software problems created long waits at some polling places for today's primary. a clerk of the courts said long lines formed at 12 voting centers. no voters were turned away, but some left because they were worried about being late for work. investigators say last week's helicopter accident was

the treasury things -- i think that they do. when theyy are right said it would not solve the problem. to solve the problem, congress needs to act. >> your government has been involved in negotiations involving a debt exchange proposal, what options do ricansrs have it puerto default? guest: two things. first, what i am asking of creditors, they are in one group. --y are that is plenty of groups fight among each other. them to come up with a deal that solves the crisis. a proposal could ring back the crisis in a couple of years, no. on general a second of next year, i will not be the governor. that i am not saying i can do this to solve the crisis and then kick the can to the next seven or. i am asking them to solve the crisis. -- to the next governor. i am asking them to solve the crisis. puerto rico would be liable through other measures, if we do not comply to the plan that i proposed last september. it is already in place. it is already part of a five-year fiscal plan. in september, i extended it to a tenure fiscal plan. i am

so as i said, treasury -- the department of treasury put this program in place. it was scheduled to expire at the end of 2012. in 2013, after the program had technically expired, an inspector general found that the number of participants who ended up redefaulting on their new modified mortgage was increasing -- understand and i'm quoting here -- "increasing at an alarming rate." what is this word "redefaulting?" if you don't pay your mortgage payments, you are a new england default. and if you're in default long enough, the mortgage company says we're going to foreclose and take your house back. this program was designed to help people avoid that catastrophe. so redefaulting is the process by which the person having already agreed to with the mortgage company and with the support of the federal government, agreed to a program to lower the payments so you could keep the house, they defaulted again. so the technical term is redefaulting, but it is two defaults. so if joe smith has problems, he gets together with his program, he gets a new program in plashings but th

manus: we finally find out how much the saudi's have got in u.s. treasuries. don't forget the $.8 billion. the foreign holders of treasuries. saudi arabia is still in there with a pretty substantial amount. what shocks me is that they are way behind. $1.2 trillion for china. we didn't know what these words -- numbers were since 1974. a critically important point. this is a big part of the story. how much else to they actually have? 20% of their foreign reserves are in u.s. treasuries. that is rather strange. states havereign around two thirds of their dollar exposure in u.s. treasuries. i don't know whether this answers more questions or raises them. what happens next in the treasury market? yvonne: that story is not quite solved. talking about china's debt. we are speaking to him quite a bit about the mainland. what he thinks is the outlook for the chinese economy. he is very bullish on china. looking at leaders from the mainland. trying to transform this manufacturing export driven economy. into one that is services oriented and domestic. when it came to chin

the treasury official expressed concern global demand is sluggish despite the growth of the economy. the official for g 7 to boost the economy through monetary and fiscal measures and structural reform. >>> now let's check in on march gets. u.s. stocks surged overnight on

the treasury secretary came to puerto rico to emphasize the cost of the island's financial crisis. the administration also hopes that the visit will put pressure on congress, especially some republicans to support a bipartisan bill to help the territory restructure the $70 billion in debt. the government here already failed to make hundreds of millions in debt payments and says it will miss more. now the administration is also warning that without this debt restructuring legislation, congress might have to consider a cash bailout for the territory. puerto rico's governor says possibly $20 billion or more. the treasury secretary would not comment on that estimate. >> what we are working with congress on now is not a bailout, it is restructuring. what we have said is to solve the problem, there is only so many choices. restructuring with oversight is the right solution. if you don't do that, then you have chaos or a bailout. we are not talking about a bailout. >> reporter: some critics say that even this debt restructuring legislation is a bad idea. it is a back door bailout and coul

i think the pushback we have from the u.s. treasurys being looked at -- why should we take the brunt of the currency wars? you've done well out of it. we haven't. we don't want that to happen again. francine: at the same time, you could argue that come february, march, when we saw a very dovish fed, janet was also playing currency wars. francine: jane: you could also go back to 2009. we don't want anyone else to do it now. you could. i think we've got to a point where most people recognize that it is a zero-sum game for the global economy. it isn't something we should be doing. maybe it is why the ecb or draghi indicated that rates are not going down much further and they are looking at fiscal policy to promote domestic credit growth. i think this g7 meeting may give us a clear indication whether currency wars are considered to be a bad thing. francine: also i guess the more you do it in your neighbors do it, it is diminishing returns. we will talk about yen in just a minute. overall, do you think they will have to intervene? need infl

department of the treasury. in that capacity, he's responsible, among other things, for the conduct of legal and economic aspects of tax policy, including having the honor and the burden of representing the united states in bi-lot raleigh and multilateral interactions with other countries. before joining the government, mr. stack served as head of international tax at the law firm of ivins, philip and barker. he graduated from georgetown law in 1984, where he was editor in chief of the "georgetown law journal." he also clerked at the supreme court. so let me turn it over to bob. we're delighted to have you here and we look forward to your comments. >> thank you very much. i just wanted to begin by saying that i have not had the pleasure before today to meet mr. lubick, but i would like to say that the outpouring of affection and support that we see here today at the beginning of this ceremony demonstrates i think the great affection you've been held, the fact that you've really been giant in tax policy and i want

bob: the selloff in the u.s. treasuries market has been frustrated for more investors for a number of years. i do think that if we end up with a fed fund rate at the end of the year, we will inevitably see some selloff in the u.s. treasury market. i think it will be pain release slowntil we -- painfully until we get clear acceleration. a more substantial selloff will be delayed until 2017. 2017 could be quite a difficult year. if we see headline inflation 2.5%-3%towards 2.5-debt by the middle of 2017, that will put pressure on the fed to move away from this moderate policy. we could see it move more aggressively. the answer is, not yet. manus: as you say, that could put a lot of fear in market participants. bob parker, senior advisor over at credit suisse. our next focus is india. a backdrop of uncertainty into the global economy. that will not stop india from growing according to the finance minister who spoke exclusively to rishaad during a visit to tokyo. >> if you look at the performance of the government over the last

fresh analysis from the u.k. treasury. his time a report on the exitt-term impact of a br reports how earnings could decline by more than 4000 pounds by 2030, and says gdp would be 6.3% lower in the first two years, while inflation and unemployment would climb. the prime minister says of all to leave the eu would be a do-it-yourself recession but some are calling the treasury report cap again appeared -- treasury report propaganda. the shock would take the country into recession. this could be the first time in history a recession brought on ourselves. as i stand here with you, it .ould be a diy recession >> they are rattled on that side of the campaign, putting out more propaganda than we have seen at any time 1992. they said it would be an economic catastrophe, that this country would be left with a european exchange rate negative. that is what the treasury said it what happens? liberation for this economy. delano: boris johnson speaking there. let's get a check of the markets. on wall street, and mixed picture on the mai

very soon after i joined the treasury department and 2004 we saw with alarm the progress that iran wasmaking in its covert nuclear program and understood this was a national security threat of the highest order. from that time we have devoted literally tens of thousands of hours to address this threat. working with the intelligence community to identify and track iranian front companies in the movement of funds through hidden accounts, with the private sector here and abroad to strengthen vigilance with respect to iran, working with law enforcement and regulators, working with diplomats and foreign counterparts to make clear to iran that the price of their nuclear program was complete isolation from the international community, and working with you in congress in a bipartisan effort to sharpen sanctioned tools, deepen impacts, and bring iran to the table. the accumulated pressure had its intended effect. iranian people rejected the course their government had charted. the jcpoa was a tremendous breakthrough representing a peaceful solution to what had been one of the world's most serio

the treasury secretary came to puerto rico to emphasize the cost of the island's financial crisis. administration also hopes that the visit will put pressure on congress, especially some republicans to support a bipartisan bill to help the territory restructure the $70 billion in debt. the government here already failed to make hundreds of millions in debt payments and says it will miss more. now the administration is also warning that without this debt restructuring legislation, congress might have to consider a cash bailout for the territory. puerto rico's governor says possibly $20 billion or more. the treasury secretary would not comment on that estimate. >> what we are working with congress on now is not a bailout, it is restructuring. what we have said is to solve the problem, there is only so many choices. restructuring with oversight is the right solution. if you don't do that, then you have chaos or a bailout. we are not talking about a bailout. >> reporter: some critics say that even this debt restructuring legislation is a bad idea. it is a back door bailout and could se

the chancellor's own words. mark: is that fair, you cannot trust treasury reports? ing is notoriously tricky and there are some caveats. the first is that when we have a they haveforecast, three scenarios they were working with which went from not too awful to really awful. for this one, they've knocked off what you would think of as not too awful. they are already forecasting quite awful and truly awful and that is because the treasury is trying to get to a conclusion. the other point that is worth noting is the nature of these things, the bid of this forecast that does the work is 215 for people who have one at home. it essentially says we think that spending will be depressed because people will have read our awful forecast about how things are going to be, and they will adjust accordingly. there is a self-fulfilling element to this. that said, it is not unreasonable to say that the -- there were a lot of indications that the pound would fall. there are lots of other bodies and there would be reasonable questions to ask about inward investment, about employment de

we've had made sure banks pay a higher tax charge than the labor government. but she was a treasury minister and stood at the stump. she's asking me while we've done to household tax -- did she ever raise as the executive secretary of google we should notice before she asked questions of this government. >> mr. speaker -- mr. speaker. >> members must calm themselves and remain calm. they should taked order on both sides take the lead and gentleman, the member but always sitting calm in are a statemente manner -- >> mr. speaker, mr. speaker, we all have a great deal of respect for the right member. now, chancellor will know that the secretary builds taxes on vice not google and i did my job when i was in the treasury. now he will be judged on results -- on results he's been in office for six years are. and what demanding ten times more than google than he is, the public will make their own judgment. mr. speaker, well labor is campaigning to ensure that u.k. remains in european union because it's the best way to defend as well as jobs and prosperity. the part of the office is split ri

the u.s. it's in puerto rico. treasury secretary jack lou, heading to puerto rico with the hope of pressing congress to somehow help the u.s. territory with this massive debt issue. just seven months ago, secretary lou told me in a fox business exclusive that a taxpayer bailout was not on the table when it came to puerto rico. is he being forced to change his tune? stay tuned >> we are basically at every point in the process that there's no discussion, no consideration being given to any federal bailout of puerto rico. at ally bank, no branches equals great rates. it's a fact. kind of like vacations equal getting carried away. more proactive selling. what do you think michal? i agree. let's get out there. let's meet these people. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's rel

it was just after pearl harbor that the secretary of the treasury came up with a formalization of the plans that they felt were underway. they felt like there would be a forceto the leverage to these that would not otherwise want to adopt. what about the financial crisis in 2008 question mark -- in 2008? on, int is still going many respects. the response to recent unpleasantness is informed by the history of the great depression. ben bernanke was a historian of the great depression and the response to a lot of what he did what the fed did not do in 1929. they need to ensure that banks would fail gradually and prevent a panic in the banking system. did andhe things they had failed to do, the recovery program that the administration probably not big boost and ite a from lingering effects we should have learned the lessons of the 1980's. the recovery should be as swift as possible. in part because of the aggressive monetary policy, he and waseve that concerned that it would give way to fascist movements in the united states. he wanted to see >> has your research raised any additional que

this is perhaps a problem the treasury is trying to manage now. ain, we have this position where the japanese could ease more, and the fed wants to hike interest rates without the dollar moving too high, too fast. anna: jane foley, thank you very much. she stays with us. it is 6:19 in london. let us get the bloomberg business flash. ishaad: reporting a surprise increase in third-quarter profits, france's second-biggest bank being 765 million euro estimate. this, as the performance is helped by consumer banking and announced plans to deepen cost cuts in the investment bank. awkwardly steered on the economy, the oil price in china. and it was very special. i think -- prosecutorszilian have filed a civil suit, joining am rupture that cause severe environmental damage. stocks plunged on the news. assets, thebt private equity firm being sold. 170 companies globally. the transaction results in an and for charge of about $100 million for credit suisse, first quarter results are due on the 10th of may. citigroup said it is to be the first major bank in age

you can check with the treasury department about that. reporter: can you talk more broadly about the situation in puerto rico in terms of how it's impacting education, health care and also fighting the zika virus, i understand more than 600 cases there already. mr. earnest: again, i'd refer you to the treasury department again. secretary lue was just there on monday. and he saw a bunch of this -- a bufplg of these negative impacts firsthand. i just relaid the example of him visiting a hospital there. that obviously is a pretty graphic illustration of the challenges that puerto rico is facing as a result of these budgetary problems. and i think they're a good illustration of why congress needs to act as soon as possible, so that we can get to work fixing these problems. i haven't seen the latest tally in terms of the number of zika cases that have been identified in puerto rico. but obviously puerto rico is under great financial strain. obviously that financial strain is having an impact on their ability to invest in their public health sys

>> me think the treasury market will be relatively stable over the next several months. we have some events outside the u.s. that will be very important. event, the idea is that we have some important events in the capital market. on balance, if the federal reserve is going to react to the data and react in a slow way, that should be positive for risk assets and relatively positive for longer maturity treasuries. caroline: interesting that we are seeing a 50% chance of raising rates this year and 30 year debt to go to 6%. is that where the sweet spot is? >> to get to that kind of extreme movement, you have to be concerned about break at inflation. you have to be concerned that inflation will get away from the federal reserve, and i think that will be hard, and even with , that theappreciation extreme move. guy: our treasuries at the right price? take up the fed, take out everything else. treasuries versus the economic data. right price? right correlation? >> my answer would be no. fundamentally they don't seem to be properly valued. by you take the major central banks --

the difference between the two-year treasury note yield and the ten-year treasury note yield. en this happens, how do you trade it? utility and communications sectors are by far the best performers. as for individual name, apple, verizon, united headlights, mcdonald's and coca-cola do well. check out cnbc pro. clearly it makes sense. we're not talking about an inverted curve but we are talking about a lackluster economic growth period. >> and some big moves as well. but more small -- >> but this is a real indicator. >>> in government news, imf urging the eurozone for skipping payments. "the wall street journal" cites officials familiar with the talks imf proposing rates be fixed at 1.5% for decades. >>> g-7 finance ministers to meet in japan this week. he plans to stress the need for stability in the global foreign exchange market. japan is ready to intervene in the market if needed to weaken its currency. although at the last g-7 meeting in china there was widespread disagreement that they would not invest in the currency market for valuation. we'll see if japan gets support.

the u.s. treasury yields are going to remain under pressure. the dollar, we would expect to see more dollar weakness. it has had a good run in the last month. weakness has gone too far. short-term, they have moved up. 10 year yields are moving lower. this is not constructive for the dollar. anna: expectations around the rate hike by the end of the year up justng up -- ticking a touch. almost 50-50 as to whether they will or will not. michael: over the next few months, there is a lot of risks as we have the referendum in the u k and the election in the u.s.. comfortablebe more if the equity markets are more stable. when you look at the u.s. economy, you're not sure if the u.s. economy warrants another hike. anna: we will get u.s. data later this week. looking at the cpi excluding food and energy. that has gone above 2% this year. michael: the latest inflation data -- what is a worrying to us is the activity indicators. the u.s. economy is showing signs of growth at a slower pace. growth at a slower pace. in terms of the cross-ice, where do you w

i want to give you a complete answer -- >> the d.o.j. and treasury inspector general all three of those entities investigated this show called scandal involving the i.r.s. and each one -- >> no. that's not true. >> that's not true. >> each one came to the conclusion that there was no criminal -- >> disagree. >> intent on anyone's part. >> mr. chairman -- s isn't that correct? >> can we have regular order? the gentleman is over his time? >> the time of the gentleman has expired. >> i ask the chairman for an additional one minute to finish eliciting responses to the questions that i asked. >> and i would object, mr. chairman. >> will you let him answer? >> i would love for him to answer the question that i ask. as opposed to filibustering. talk. him gentleman is recognized for an additional minute and the understanding that the gentleman will yield to the witness so they can answer your question. >> i will restate my question. and thank you, mr. chairman. isn't it a fact that the senate finance committee, the department of justice, and the treasury ins

the annual ceremony live monday at 11 a.m. eastern on c-span. state department and treasury officials were on capitol hill to update members of congress on implementation on the iran nuclear agreement. the lead coordinator was among the witnesses. he was asked about the terms of the deal and iran's financial situation. this hearing is just under two hours. mr. royce: this hearing will come to order. last week, a commander in iran's islamic revolutionary guard core made headlines around the world for boasting that iran could wipe out israel in less than eight minutes, and remember this is the same iran that secretary kerry is promoting as open for business. sadly in the four months since the nuclear agreement with iran was implemented few things have surprised me. i expected iran to continue full speed ahead with its intercontinental ballistic missile program, and it has testing, two icbms. and remember as the secretary of defense says, intercontinental means able to reach from there to here. we have also seen the testing of ballistic missiles, and in case we misconstrue thei

in april, the agency notified the treasury department and the white house that ms. lerner's e-mails were missing and then he waited and then he waited some more until june when the irs finally told congress by burying a couple of sentences in the fifth page of an attachment in a letter to the senate finance committee. that was on june 13th, 2014. that triggered a flurry of hearings in congress and mr. koskinen came up to testify to explain what he said. and then he lied. we've got three quotes here i want to share with you among many. but let's look what he told us on june 20th in 2014. seven days after finally telling congress that mz lerner's e-mails were missing, he said, since the start of the investigation, every e-mail has been preserved. nothing has been lost. nothing has been destroyed. that's not true. the investigation began in may of 2012. inspector general found the irs destroyed, destroyed evidence. 422 backup tapes that contained as many as 24,000 e-mails, to and from ms. lerner happened on march 4th of 2014. which was discovered after, after they disc

. >> it's interesting, also, why the u.s. treasury yields, for example, are at these historic lows, given that the feds hiked in december and still are to hike again. but we still are so low in bond yields. alan thank you for being with us. alan miller from scm group. enjoy the rest of your holiday. very quiet outside. >>> president rouhani has made strong gains in iran's latest primary election. more female mps were elected than clerics. while the official tally has not been released, it's reported that the president's supporters fell short of an outright majority but did receive the most votes. >>> up to 5,000 demonstrators in baghdad's green zone are beginning to leave after their leader issued an ultimatum. members of one movement filtered into the most secure part of the capital in the most forceful challenge yet to authorities. the group's leaders warned they would return if their demands for a new cabinet and series of reforms were not met. >>> in other news, buses were set on fire and angry scenes outside saudi bin laden's off

in aprilis agency notified the treasury department and the white house that ms. lerner's e-mails were missing and he waited and he waited some more until june when the irs levy told congress eye bearing a couple of sentences in the fifth age of an attachment to the letter to the finance committee on june 13, 2014. that triggered a theory -- a flurry of hearings to congress and mr. koskinen came up and testified to explain what he said and then he lied. we have three quotes i want to share with you on many. look what he told us on june 20 of 2014. seven days after family telling congress after the start of investigation every e-mail has been preserved nothing has been lost, nothing has been destroyed that's not true. the investigation began in may of 2012. inspector general found the irs destroyed evidence, 422 backup tapes that contained as many as 24,000 e-mails to and from ms. lerner and that happened on march 4 of 2014 which was discovered after they discovered there was a problem. and the second quote if i could, this is on the same day june 20, 2014 mr. kosk

proposal that says if you do not need all of that money, all of the money automatically goes to the treasury within one year or two if you want spent it. why to chance that at some point this summer we can have a series of rake in the united states of america, and everyone will be doing your campaign stuff, or whatever you are doing, and you will have to come back here and deal with it and either explain to people why, when medical experts were warning us that this was a significant risk, we decided to and less than what is being called for. i by no means mean this of the criticism of senators murray and work. i admire their as i said earlier, while i'm proud of the effort that i am alongside with my colleagues from florida are proposing here amountnd hope that the passes, is what we are left with is a vote on the amendment, i certainly think that is better than nothing, and i will support it. why are we taking this chance. it makes no sense. i would also say that, while i'm happy that the senate is about to take action on this issue, i concern i what i hear from the house. i'm glad there is

in yesterday -- the treasury market casting a net and yields came in. ,t is the major will they take notice? they will take notice of the economic data. including this important productivity data friday. mr. gross will join us for jobs day. jon: thank you very much. david: no shame at all. we started earnings season ,esterday with cbs last night time warner this morning, both beating estimates this quarter. .oining us is brian wieser look at this, i feel like it is 1988 all over again. advertising is coming back into network television. wasn: advertising supposedly dead -- it was never dead. it was just resting. the biggest problem with advertising, they are cutting costs. they are reducing their spending wherever they can. if new categories don't show up, you don't get advertising growth. we are seeing a resumption of increasing spending and wireless and other categories. how much are we seeing the trump affect in political advertising boosting these earnings? brian: it helps at the local station level. that helps local station's first and foremost, it

they want to know the person running the treasury today will be running it next weekend possibly, evenng uncertainty around, whether the head of the treasury still has his job, is something that will not bode well in the minds of investors. guy: thank you. up next, the markets catch on to the possibility of a hike next month by the fed. we hear what lockhart has to say on that story, next. ♪ matt: will come back to "on the move." it is time for our battle of the charts. and guy, i brought a chart i am sure you have seen a lot recently, but i think it is important and it poses important questions. this is the spread between the 10's and two's. anything below this red line is an inversion of the yield curve. i have shaded the u.s. recessionss here in red. before the u.s. recession we have the yield curve flattening and then inverting. it is flattening right now and have come down to the lowest level we have seen since 2007. this begs the question, are there problems ahead for the u.s. economy? or does this mean something else? is this because the u.s. investors are scurrying for yield, a

. -- it is from the u.k. treasury, and it looks ugly. guy: this is the second report we have had from the u.k. treasury through the first dealt with the long-term implications. this one deals with the next two years or let's just say the plus or minus on these numbers is fairly big. very hard to pin down exactly what will happen. but they have had a stab at it. they were very nervous about their numbers. they have had a few people fact check it. let's give you some of the biggest. this is what the treasury is saying. this is consistent with the aggressive project fear. we have kick this around on the radio. under a shock scenario, the u.k. -3.6.ory would be over the severe shock scenario, it would be minus six. this is where it hits badly for the british because they love their house prices. -18% on house prices. people will say that they should pay attention to that because the british like talking about house prices. diye is a warning about a recession. i'm not sure they were like a diy recession, and that is what they are warning about

my first guest says if you are the the treasury, now's a good time to be selling. ad of fixed income. of the yieldmake in demand, which seems to be the highest in january. >> the strength of the three year note, most from domestic and foreign accounts, leads you to believe there is zero fear out there of a rise of inflation or even falling prices now. if you look at where the fed fund futures look, a 4% chance of a rate hike or treasury buyers looking for safety and in >> in, best investment, are finding it sure in the three year and likely will find it in the 10 year as well. if you compare the action today, you compare that to what we have heard from various fed bitcials, are they a little too complacent? >> yes, i do not have so much a concern on the market and the quality of treasuries. my greatest concern is going further out and taking on more credit risk and that is where complacency lies right now. people are taking on more risk than i think they are. that a red flag? how do you view that? >> we have put these flags out before only to see them pull down as t

the treasury lays out two scenarios in case of a brexit. under the "severe shock" outcome, gdp would be 6% lower than otherwise, and holding prices would fall 10%. the referendum on the eu was to 23rd. global news, 24 hours a day, powered by our 2400 journalists in more than 150 news bureaus around the world. i'm shery ahn. tom: thank you. let's look at the data. equities, bonds, currencies, commodities. commodities front and center, up fractionally, yields churning. continue to dollar strength. in commodities, some real weakness. oil giving it up after a strong, ten-day period. euro stronger. there is singapore iron ore. that is a big move, 5.5%. an important chart over the weekend, of all the tankers off the shores of singapore. francine: that is an important figure, because overall we are seeing quite a lot of pressure on these industrial metals declining. european stocks were down but are now up at touch. huge, but at least they aren't falling. bayer, whoshow you made this unsolicited offer to buy monsanto. this is a big deal because of

the negotiations seem to be within the republican caucus and then to some extent treasury. there is some point where that give-and-take will create something that is passable, but we have not reached that. i have facetiously said that the latino people are sometimes stereotyped and accused of being the manana people, we will get to it tomorrow. i have not seen that kind of urgency at all in the republican caucus through this whole thing. they're just does not seem to be the depth of understanding about what this can mushroom into, and that is what worries me the most. jason: is there any outrage at outreach at all from the republicans? rep. grijalva: discussions are occurring from staff to staff on individual members to individual members, but where that has fundamentally changed the content of that draft bill that was presented five weeks ago? no. mike: my conversations with chairman bishop, he seems to think that if he negotiates this with treasury, if the administration signs off on it, democrats are going to fall in line. is he mistaken on that? if the treasury gives thu

the treasury stagnates as the dollar dominates the month of may. that are the markets prepared for the fed shift? as investors turn on china. short interest on chinese equities jumped to the highest level in a year. it's the big short back in china. we are less than half an hour to the european open and that all lines are open as we open for futures trading where up just slightly. for the w toing cross at any moment this morning before the market opens. also take a look at the amazing story unfolding in asia. the nikkei to 25 getting about 1% right now but it is really in china that the interesting story is unfolding. you can see the chinese if i 300 up 3.1%. this is an index keep in mind that was limit down overnight in less than one minute chinese stocks dropped 10% and then bounced almost immediately back. it's interesting because we are also watching the incredibly high levels of short interest in china. it doesn't seem to have stopped a quick recovery for what looks like it may have just been a technical glitch or so-called bad finger. in curr