the u.s. treasury with three main offering so far this week. o focus on the $34 billion 5-year note sale. it had a ratio of 2.67. 23% of t total, e least in about a year. look at the moody, the pipeline for those bond sales dropped. it marks the lowest number in two months. it continues a borrowing slow down in the moody market. where there has been no slowdown was in the u.s. high-yield, the biggest week for issuance since march. the year to date total more than $120 billion. here with me in new york is greg peters and bonnie wongtrakool from western asset management, plus in st. louis is brian rehling. for the first time in about a year, i heard somebody saying, while they were buying something, there is no alternative. it has been 12 months since i heard that kind of language, there is no alternative and that is why i am buying this stuff. does that concern you to any extent? brian: there is a lot of complacency in the market, no doubt. volatility is very low so there is not a lot of focus on risk. asset prices where they are, you have to buy

a key part of that is this interesting part of the treasury. fincen, the financial crimes enforcement network, which has access to these key documents that everybody says will be critical to figuring out if there was any monetary aspect of the collusion being investigated by the fbi and by these committees. if this is in fact a follow the money investigation, are the committees now being impeded in their ability to follow the money as long as they don't get these documents or not at the pace that they think they ought to? the treshly department is led by former trump fund-raiser steve mnuchin. is the trump treasury department conceivably gumming up the work on this part of the investigation? could they even do that? is the financial crimes enforcement network independent enough so that couldn't be a factor? is this just the normal course of business? we should essentially keep eyes on here or something we shouldn't worry about because they are going to be professionals here no matter how difficult it is to work out with these committees? i don't

what will that do on the treasury market? ian: in an average year, the 10 year treasury trades at about 120 basis point range. either the higher or lower getting taken out some point this year. we will see which way it moves, but i do not think we will trade in between those levels for the rest of the year. in terms of your other question, yes, absolutely, international yields have been an anchor. the ecb, i think they have learned a lesson from the taper tantrum in the u.s., so look for them to be very cautious and measured as they slowly roll back their language, and eventually taper into next year. i do not look for quite the market reaction we saw in the u.s. because i think they have learned some of the lessons. bonnie: we would agree with that at western asset. we have seen growth improve and the eurozone. european credit, especially with respect to the banking sector but with respect to ecb action, they will be very cautious. medium-term stability at or below 2%. the rise in inflation they have seen, they view that as t

a quick check on the market. treasuriesghout the week and yields grinding lower, down by about two basis points. ahead on the final spread, it is the week ahead featuring president trump going on to her. this is "bloomberg real yield." ♪ ♪ jonathan: from new york city, i am jonathan ferro. this is "bloomberg real yield." it is time now for the final spread. coming up over the next week, the chinese president hosting world leaders, including the russian president as he promotes his trade and in for structure -- and infrastructure plan. president donald trump getting his first international tour. some things on the agenda coming up in the next week. i want to bring in our roundtable including greg davis, oksana aronov, and jeff cucunato from blackrock. a question coming in from a viewer via the bloomberg terminal. this one for you, oksana. on a default adjusted basis, isn't em better? oksana: the answer to that question will very much depend on what part of em. as i said, it is differentiated. if you look at the indices very

the treasury has a big line outstanding to those entities. chairman: thank you. during the 113th congress, there was a conference of housing reform bill. we had to make a lot of compromises to achieve the bipartisan registration. as the committee focuses on housing finance or form, what do you think are the compromises that he to be achieved? secretary mnuchin: i think we are open to working with you, as i have suggested. we need to find a solution that creates necessary liquidity, while making sure we do not put taxpayers at risk. while we have been busy working on tax reform and focusing on regulatory issues during the second half of this year, i will focus on housing reform and look forward to speaking to many of you on ideas. chairman: one of the big issues on housing financing a form is whether there should be an explicit government guaranty provided through the housing system. that such ave guarantee is necessary, and if so, do you -- how do we deal with implementing adequate taxpayer protections in exchange for any government guaranty? is early mnuchin: it

for the one south -- for the 1000th time investors ask, is , the trump trade dead? treasuryields grind down. will the chaos in washington throw it off course? is it a wake-up call for em? if you don't one impeachment in brazil was dramatic, markets break for three in a row. we start with the big issue. a week of messy politics finally breaks the calm on wall street. >> ultimately, you want to have a functioning washington. we are still the most important government and economy in the world. if that all comes to a screeching halt because of these issues, that is not good for anyone. >> that is the thing we have to gauge. do people have confidence that this administration will not only get the big themes out there, but deliver on them? >> if you want to keep everyone happy, he has to do real policy stuff and not just send out tweets. >> this trump trade that we have embraced and that has driven the market to new highs in equities is coming to an end. >> the trump trade is great for news and is like reality tv playing out in politics. reality tv tends to have a short-term natur

calling out the bond bulls after a lousy treasury auction. is is "bloomberg real yield." ♪ ♪ jonathan: from new york city, i am jonathan ferro. this is "bloomberg real yield." i want to take you to the auction block where commentary caused unease in the treasu auctions. the $15 billion 30 year saw wall street data stuck with the largest share since september. while the $23 billion 10 year auction had dealers absorbing a larger than usual amount, it has been more than two years since they drew more than expected. -- herew the attention wrote "lousy 10-year treasury auction. where are all the investors that turned bullish in 2015 talking about 150?" let's bring in our roundtable. oksana, the twitter account raised a lot of eyebrows. i will not ask you to respond directly, but the story really is that the market has changed in terms of positioning. coming into the year, huge short and now a marginal long. what do you make of how the market is set up in treasuries? oksana: the market is still massively long, this kind of risk generally. long, trad

the long end of the treasury markets. tom: looking at the bloomberg terminal, let's do a data check. that .02 should be green. that is a higher yield. you have dollar strength. they are looking at the spreads among other things. the idea of flattening 100.79. right back to where they were on november 8. scarlet: we have market reactions to the fed's non-decision. from new york, this is bloomberg. ♪ tom: michael mckee is in washington. it we have to stay in separate quadrants to keep us apart. scarlet fu is with us with esteemed guests today. let me start with a conversation with ben bernanke. you can see it on bloomberg digital media including our itunes podcast. in the lastchairman hour on the fed balance sheet. >> the fed has released projections about what they will do. i think the best guess is something like four or five years. after they begin the process of unwinding to get to some kind of stable level. tom: that is an important statement by the former chairman of the federal reserve system. he thought awfully hard

here are the top stories we are following around the world. treasury secretary steve mnuchin joins us this hour. from tax reform to expanding sanctions, the top issues facing the trump administration. vonnie: also this hour, an interview with wells fargo ceo tim sloan. the interview comes just days after a contentious wells fargo shareholder meeting. oliver: and tricking the fed balance sheet may not be as easy as janet yellen hopes. we will look at the potential hazards as the fomc that's set to meet tomorrow. let's check markets with abigail doolittle, where we have another record for the nasdaq. oliver. indeed we do, a bit of a risk on day at this point. the dow reversing a small loss after the eyes and manufacturing number for the month of april came in slightly disappointing, but now higher, joining the s&p 500 at session highs. more than half a percent, putting another intraday record high on pace for another record close. keeps going in a bullish direction. let's look at the stock driving the records for the nasdaq. apple, amazon, and facebook.

first of all i am troubled by the people you are bringing into the treasury. a press reports suggest that you are advocating for the appointment of another one west executive to head the office of comptroller currency entrusted with overseeing more than 2000 national banks and your senior counsel whom you hired to run housing and finance policy wasn't sure mental and managing the line of credit for morgan stanley, talks with sub-prime lender that went bankrupt in 2007. as attorney general this conduct was the subject of a $2.6 billion justice department settlement in 2016. did you have anyone on your leadership team that has advocated for bar worse or worked on behalf of homeowners? >> absolutely. first of all we absolutely are very interested in protecting bar worse and homeowners. it is very critical to everything we are doing and this is something that is going to be a big focus of the treasure when she starts to has lots of experience having worked in the small business administration and also having come up the ranks through ups and managed to pay part of

investors ask, is the trump trade dead? treasury yields grind down. ll the chaos in washington throw it off course? is it a wake-up call for em? markets fray. we start with the big issue. week -- a week of messy politics. >> ultimately, you want to have a functioning washington. it is the most important government andconomy in the world. if that all comes to a screeching halt because of these issues, that is not good for anyone. >> that is the thing we have to gauge. do people have confidence that this administration will not only get the big names out there, but deliver on them? you want to keep everyone happy, he has to do real policy stuff, and not send out tweets. >> this trump trade that we have embraced and that has driven the market to new highs in equities, is coming to an end. news andgreat for reality tv playing out in politics. to have a tends short-term nature in terms of politics. i think investors will take this in stride. jonathan: joining me around the ,able today, that horn back lisa, and jim. great to have you with us on the program.

you're the secretary of the treasury. ou deal with tax policy. >> again, i think the idea was that that tax was hurting investment and jobs in this country and that, again, that was part of the health care repeal. so, yes, factually the tax will help people who are investing money back into the economy and will create jobs. >> all right. mr. chairman, it flatly contradicts your statement of no absolute tax cuts for the upper class. it's a flat contradiction. >> thank you, senator. >> thank you, chair. mr. secretary, thank you for being here. >> thank you. >> appreciate you being willing to step up and do this. nice to have a private sector guy in here trying to figure this out. i want to go to the debt in the portfolio. we've got about $23 trillion all in, that's about a third of all sovereign debt in the world, there's about 200 total debt $200 trillion total debt in the world, but one out of every three government debt dollars that are out there are ours. we've also got the largest fed balance sheet in history. the quest

department of the treasury. this unit was created in 1990 basically as an anti-money laundering law enforcement agency. after 9/11 its power was boosted in part by the patriot act. this was the unit of the treasury that went hard and fast after the financing of al qaeda. they tracked and disrupted formal and informal funding streams funding al qaeda not only in afghanistan and pakistan, but everywhere al qaeda was operating. this is an investigatory agency that tracks money laundering. they have a pretty fearsome reputation. and the story that just broke in "the wall street journal" tonight is that this unit at the treasury, these money laundering cops basically have decided to hand over what they know to the trump-russia investigation. quote, a treasury department unit that specializes in combatting money laundering will share financial records with an expanding senate probe into possible ties between russia and president donald trump and his associates. "wall street journal" tonight citing people familiar with

jurisdiction of the treasury department, including housing finance reform and development of policies to encourage a healthier economy. we look forward to working with you and your staff on these priorities and improving the lives of americans. housing finance reform means the most significant piece of business following the crisis. it's important to build bipartisan support for a path forward. last week we received testimony from the federal housing finance agency director mel watt. at that hearing he emphasized it is congress congress that needs to act to determine the future future of housing finance reform. the hearing reinforced why it's unsustainable. namely gse's have zero capital, taxpayers on the hook for loss and the government taking all risks. a number of groups have released proposals for reform in recent months, including the mba, the ica, the milken institute, several co-authors writing jointly for the urban institute and many others. three years ago, seven republicans and six democrats on this committee voted in suppor

you're the secretary of the treasury. you deal with tax policy. mr. mnuchin: again, i think the idea was that that tax was hurting investment and jobs in this country and that, again, that was part of the health care repeal. so yes, factually, the tax will help people who are investing money back into the economy and will create jobs. senator van hollen: all right. it flatly contradicts your statement of no absolute tax cuts for the upper class. it's a flat contradiction. >> thank you, senator. >> thank you, chair. mr. secretary, thank you for being here. debt in the to the portfolio. trillion all $23 in, that's about a third of all sovereign debt in the world, there's about 200 total debt $200 trillion total debt in the world, but one out of every three government debt dollars that are out there are ours. we've also got the largest fed balance sheet in history. the question is, during this period of low interest rates , about a little over 50% i think are three years or less in maturity, while the uk has about 48% of their bond portfolio is 20 years o

john micklethwait spoke with the treasury secretary steven mnuchin about the administration's plan to spur economic growth an an act form. >> there are -- and enact reform. >>there are a lot of things we ne to do. sweeping economic change is one of them, the tax plan. we need regulatory relief. too many businesses are held back from investment due to excess regulation. we also need fair trade. >> on the deductions, you have done a lot about getting rid of most of the deductions. one that you held onto was mortgage tax relief. many people have got rid of that. it distorts the market and pushes money to property. why didn't you choose to target that? >> the thing we talked about keeping our charitable deductions, which we think are important for social causes, and the other is the mortgage interest induction. a big part of the american dream to own a home. >> not for political reasons rather than economic ones? >> not necessarily political. housing finances an important part of creating economic growth. >> we talked about the elements of regulations and getting rid of them. which ones d

the treasury rolled over. it seems to be a nasdaq bounce. the large tech stocks recovering some of yesterday's losses. >> probably the leasted surprised people with the glass steagall exchange was the banks. they never took the trump administration seriously when they were talking about 21st century glass steagall. some of them who were taking them more seriously, the senate. >> two takeaways from the test reseth. number one on glass steagall, he does not support separating commercial banks from investment banks. does support 21st century glass steagall. under pressure to explain that to elizabeth warn and other. and tax reform concerns will deficit neutrality and tax cuts for the wealthy from the democrats. let's continue to listen in to secretary mooun mnuchin. >> stand against the executive order and rolling back wall street reform. why doesn't president trump's executive order that rolls back the wall street reform mention consumer or investor protection even once? why don't it direct you to consider the financial needs of borrowers, stud

senator wyden, i don't know that much about the treasury financial crimes unit. i know some of the sort of heroic stories about them tracking terrorist financing, about them tracking down people who are violating sanctions that have been put in place for national security reasons. but you've now announced you're going to hold up one of the president's nominees for undersecretary of the treasury until you get these records from the financial crimes enforcement network at the treasury department. what does that part of the treasury department do? and why do you think those records are so important? >> those records are so key because they are really going to finally illuminate some of these connections between the trump organization, his associates, and the russians. as you know, there have been an extraordinary number of press reports. for example, in the case of the dossier, and i come back to the dead bodies. there are reports of people who disappeared in connection with that. there is a real interrelationship between some of the charges and the serious allegatio

the justice department has been examining u.s. treasuries two years, focusing on issues of securities. goldman sachs posted disappointing income trading results in the first quarter. its copresident says that because of clients lack of conviction, not because of lack of wages on the firm. he denies the bank has a risk management problem. >> this is not a quarter that was defined by losing money. this was defined by lower client activity, and the firm not notmizing the revenue -- maximizing the revenue opportunity. dbs has announced a 1% increase in first-quarter analystshelping beat expectations. southeast asia's largest bank reported net income of $7.8 million -- of $17.8 million. regional oil services firms battle low oil prices. profit rose 22% on a strong performance for domestic banking for anz. the banking environment remains constrained by intense competition and pressure on margins. australia's other big banks will report in the coming days. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 1

he recently sat down with the u.s. treasury secretary. is is bloomberg. ♪ david: this is bloomberg markets, the trump economy. mark crumpton has more. mark: the ceo of united airlines apologizing again today for an incident in which a passenger was forcibly removed from a flight. vowed to do better as he and other airline executives faced tough questions from lawmakers. he said the way the pastor was treated was a mistake of epic proportions. horrible failure three weeks ago. that is not who we are and it is not this company. it is not this industry. we have had many successes and it is important to note. mark: united has taken steps to reduce the over booking of flights and will raise $10,000 a limit on payments to customers who give up seats on oversold flights. they will improve employee training. president trump says the nation needs a good shutdown in september to fix what he calls a mess in the senate. the president said today the comp -- the country needs to elect more republican senators to2018 or change the rules 51%, suggesting m

this comes from the general treasury. we are funded by the federal government, it's a federal facility. we produce power. we sell water contracts to agriculture and we have obligations to them and we have obligations to power we try to meet as well and as those things to solved, that goes back the treasury and we as a specific entity go back to the treasury and say we need this much money to operate shasta dam in the year and generate far more money than we need to operate shasta. in studying the top auger fee of the area, they are looking for a big basin, something that will be able to hold a lot of water. to look where the water is. we are situated here at shasta where we get about 75% of the states precipitation right to the north of us. here, they the dam are providing flood control to the city of reading which is the largest city in shasta county all the way to the bay area. you want to look for an area where the water is and look for that natural basin. thatfound three sites would be potentially good sites for a dam

fixed income market, the u.s. treasuryperceived as the most liquid market in the world. that will drive down the costs of borrowing, which will benefit and save money for every american taxpayer. >> today, president trump said he is taking a serious look right now at steps to break up the big banks. would you be in favor of that? >> i would. i believe when a market becomes overly concentrated, you reduce competition and competition is the lifeblood of what makes a free economy work. when you have many firms that are impeding to get ahead, that -- creativityeate happens, innovation takes place and consumers win. 2008, financial crisis of a number of decisions are made very quickly that resulted in a massive consolidation of the u.s. banking system. i don't think that serves the interest of our country well. -- what i argue to break them into small banks, no. but should we separate investment banks from core , a new glassnks spiegel, i would be excited to see that. it would be great for the economy. >> good for your firm as

you're the secretary of the treasury. you deal with tax policy. mr. mnuchin: again, i think the idea was that that tax was hurting investment and jobs in this country. and that, again, it was part of the health care repeal. so yes, factually that tax will help people who are investing money back into the economy and will create jobs. senator van hollen: all right, mr. chairman. it flatly contradicts your statement of absolutely no tax uts for the upper class. >> mr. secretary, thank you for being here. appreciate your willingness to step up and do this and it's nice to have a private sector guy in here trying to figure this out. i want to go to the debt and the port foalio. we have about $20 -- portfolio. we have about $20 trillion of debt. there is about $200 trillion of total debt in the world but one out of every three government debt dollars that are out there are ours. senator perdue: we also got the largest fed balance sheet in history. the question is -- during this period of low interest rates, about a little over 50% i think are three years or

. >> this is what comes from the general treasury. we are funded by the federal government. the way this works is we produce power. we sell water contracts and have obligations to them. we also have obligations for power that we try to meet as well. as those things are sold, that money goes back to the treasury, and then we go back to the treasury and say we need this much money to operate shasta dam. we generate more money than we need to operate shasta. in studying the topography for a dam they are looking for a big , basin, something that would be able to hold a lot of water, so a natural valley is important. you also want to look where the water is flowing. we are situated here at shasta where we get about 75% of the state's precipitation right to the north of us. by building the dam here we are also providing flood control to the city of redding. you want to look for an area where the water is, the natural basin. here are ways three sites that would be good sites for a dam. this was chosen for its proximity north of reading -- north of redding. this is the lobby north o

the u.s. going forward. erik: up next, treasuryretary steven mnuchin is thinking outside the box when it comes to financing infrastructure. mr. mnuchin: we are studying ultralong bonds. that is something we are considering at treasury. erik: an wilbur ross shares his thoughts on what needs to happen with nafta. >> nafta is an old agreement, an obsolete agreement. it does not reflect the current status of either the mexican economy or the american or the canadian. ♪ ♪ erik: welcome back to a special edition of "bloomberg best." i am erik schatzker. with his first 100 days behind him, president trump has promised to overhaul financial regulation, health care, and the tax code as part of his vision for america's future. john micklethwait spoke with treasury secretary steven mnuchin about the administration's plans to spur economic growth and enact reform. mr. mnuchin: i think there are a lot of things we need to do to create economic growth. the tax plan is one of them. sweeping reform and the tax plan. middle income tax cut, making b

you better be long the dollar, short treasuries, superlong u.s. industrials, and materials. this week they got hammered. i wonder how crowded that consensus trade is in equities in the u.s.? chad: i believe there are slim pickings when you forecast out those 12 months, the total return we are looking for is roughly 5%. that said, there are ofortunities, seams opportunities, but we are starting to get into nosebleed territory in valuation. when you look at high-yield, also nosebleed territories. we would be more circumspect about return over the next 12 months. would say yes, however, i would push back a little bit on the nosebleeds. i feel we have moved a few rows closer. what is interesting about the past couple of months, we had decent earnings growth. instead of being at 22, we are at 21. overall historically, it is very high. jonathan: we no longer need the oxygen tank to breathe. people it encourages because despite the debt on wednesday, the overall benchmark level has risen, record highs before that drop. and we did it against a p/e ratio s

in just a few moments you'll hear from steven mnuchin, the u.s. treasuryecretary sitting down with our david faber in just moments. in the meantime, look at the markets. the nasdaq soaring to record highs. dow wavering between positive and negative. dow best performer of the day and of the year adding 12 points to the dow right now which is down less than one point. there's nasdaq up half a percent. stars like netflix and facebook at a record high. facebook also reports earnings this week on wednesday. and these big cap stocks continue to just get bigger. >> they do. and it seems like they could just keep going. especially after earnings this season. a lot of people were speculating valuations were so rich the stocks like the likes of intel, microsoft, had been on such a run that earnings would have to blow out. amazon another one in order for them to keep moving in. what do you know? they absolutely did. >> si think the overall markets will be tested this week. there's a fed meeting, which no policy change expected, though always interesting to get the st

we want to listen to the treasury secretary, steven mnuchin. >> -- for the first time as treasury secretaryrk with congress to create and maintain prosperity for all americans. i want to reaffirm that commitment to you today. let me begin by discussing the treasury's recent report on foreign exchange policies of our major trading partners. ensuring that american business, consumers and workers face a level playing field is one of the essential components of this administration's agenda. when foreign governments engage in currency manipulation, it makes the playing field uneven which is why we regularly monitor these practices. after careful study, the treasury department has found that no major trading partner met the criteria for currency manipulation during the current reporting period. we will continue to follow this important issue and have accomplished a monitoring list of economies that warrant close attention. this list compromises china, germany, japan, korea, switzerland and taiwan. additionally we are committed to rethinking our foreign agreements and trading practices to ensure t

jumper miles dasher is already standing above the treasury at his exit point. his buddy holding the parachute because he's only standing roughly 210 feet from the ground. >> that's not enough space for me. >> keep in mind he has been jumping for many years. in fact, he's got 4,299 b.a.s.e. jumps under his belt which is also why thhe wanted to make th his 4,300 b.a.s.e. jump. >> did red bull help them out? to jump here. they probably don't let people just do this. >> he is part of the red bull air force team. i think they had it covered. generally you need a few hundred feet to deploy. but in this case, he trusts his skills. he hopes for the best and jumps. >> see ya. >> laook at how gnarly this looks. >> wow. >> wow. >> his canopy opens perfectly. he's able to guide himself away from the face of the rock. down this canyon. that is only about 100 feet wide. for 15 seconds, he falls at about 20 miles an hour. landing perfectly safe at the bottom. >> that's awesome. >> my goodness, it's tight in here. >> i'm not impressed. he should have flown right into the treasu

meanwhile, haven assets are getting a bid with the yen, gold, and treasuries all gaining. we will get reaction to turmoil in washington at what he means for some of the biggest market i names in finance. later this hour, erik schatzker will be speaking to chris hamptohentemann. let's get a check on where markets stand. it has been a wild since you have been able to tell us about big moves. julie: it has been increasingly rare. now the biggest drop for major averages in about two months since late april. it looks like also at some point during the session, all three major averages were having their biggest single day drop since september. we have backed up off of those levels a little bit.volume is still running high . 34% above a 20 day average as we see the selling. selling on heavy volume today as we are finally seeing this uptick in volatility that many investors have been anticipating. finally as well, some spillover from political risk, which has been something that the markets have been quite resistant to. if you take a look here at the groups that are on the move, it

requesting financial records that have been obtained by the treasury's financial crimes unit. seems clear the investigations are moving toward the money. what is it about this financial turn towards the money that might be freaking them out so much? i have exactly the guy to answer that here next. -where? -san francisco. -when? -friday. we gotta go. [ tires screech ] any airline. any hotel. any time. go where you want, when you want with no blackout dates. [ muffled music coming from club. "blue monday" by new order. cheers. ] [ music and cheers get louder ] the travel rewards credit card from bank of america. it's travel, better connected. the travel rewards credit card from bank of america. hidden in every swing, every chip, and every putt, is data that can make the difference between winning and losing. the microsoft cloud helps the pga tour turn countless points of data into insights that transform their business and will enhance the game for players and fans. the microsoft cloud turns information into insight. theseare heading back home.y oil thanks to dawn, rescue workers

seven finance cheats, including the u.s. treasury, are gathering in a southern italian ports. expectations of any formal , whiles remain unlikely the progress remains unlikely, after two unsuccessful discussions earlier this year. on the books friday. let's get a check on the markets with abigail doolittle. she's been looking at disappointing retailers again. >> indy. look at these huge underperformance in the retail space. we look at the department stores selloff. .esterday was macy's and kohl's today it is nordstrom and jcpenney. both of the soccer done yesterday, significantly. nordstrom it's on its worse today decline since november of 2008. jcpenney is down 10% at a record low. they missed sales by 280 basis points. they can dump 3.5%. a bloomberg intelligent analysts earlier, told me on the phone that they are trying to control sales but they aren't able to do that. consumers are going toward digital and driving traffic isn't working. she thinks that they will benefit by closing stores, we will see what happens. week andg reports next they believe that the walmart report

that they had handed over information on paul manafort's money to the u.s. treasury's financial crimes unit. there have been multiple reports that paul manafort also ended up in the middle of an fbi investigation in ukraine that's basically an investigation of that country being a klept to beingsy. that manafort's client stole from the government of that country. where did all the money go? there's an fbi investigation into that. manafort has been reported to be tied up in that investigation. so manafort's money trail, he denies all wrong doing related to any of these overseas payments or political work. but multiple reports over multiple months suggest that paul manafort's international money trail is like life's rich pageant for investigators. and when that simple ap story came out in april about him allegedly getting paid out of ukraine, that story hit a nerve. there's been all sorts of stories with his money, but this allegation about his payments out of ukraine, that's what led him to quit the trump campaign last august, and then ap's story in april about the paym

anna: the u.s. treasuryecretary at the milken institute global conference in beverly hills was asked about the relationship between the united states and china. >> the president has made it very clear that the number one priority is to have them help with north korea, and that is something they are doing. manus: simon french is still with us. it's an interesting weekend. it doesn't bode well on the headlines for china. is it disconcerting? if you look at this, we have big company pmi's fading, but the small pmi's are doing quite nicely. have you read the data? >> on the large company side, more affected by two aspects. a bit of a clampdown in credit markets, further clampdown incorruption efforts on the administration. but you have to bear in mind 1 lastcond factor, the q year were very weak and we saw enthusiasm. it starts to get harder from china here on in, with people looking at order books and and itng year on year, becomes harder given the scale of expansion and reflation trade mostly routed to fiscals