so this is why the treasury initiative can really help. but beyond that, we've also got to ensure that a greater share of resources are al call ited to health. and it might be rational the short term to pull out of health but it's very hard to reallocate an entire budget if international funding goes down. and i think to do that, advocacy has to change because our sense of the world bank is finance ministries are against single issue arguments. it's really hard to find a good argument for focusing on one disease or teaching algebra as opposed to trigonometry. it's not the question that ministry finance is going to but beyond that, our since that ministry finance tends to think of the social sectors. which include health education and social welfare. we have to put it in an even broader context. i think we have to face the issues that have been touched on -- outside health is not considered an efficient ministry in terms of budget educated -- execution and results. i was really close by saying i think this initiative is an important opportu

as for the 10-year treasury note yield this morning, big stories sell off in bonds.he 10-year yield shot up. 241 is where we sit today. next week is ecb, then the federal reserve. we have the italian referendum this weekend. and jobs tomorrow. a few catalysts. the buying of the dollar, buying of stocks has been the november trade. oil prices, big story. 8% jump on the back of that deal between opec members in vienna. and wti pushing closer to $50 a barrel. can we break out of this range? we'll see. 0.61% up. >> europe up as a whole about 5%. it was up 9% yesterday. it ended the month in positive territory. it highlights the negativity we had coming into that opec deal which was rounded off with positive sentiment. europe at this hour, manufacturing for november coming out at 53.7. that was in line for forecasts. if you look at the individual country numbers, although none were blowout positives, it is a surprise to see europe trading so negatively. the euro higher off the back of the numbers. we're looking at half a percent on of declines at the moment. for the month

treasuries.lue line is the federal reserve. that is qe in action. down here, there is something going on. let us zoom in. this is the chinese selling, the japanese are also selling but the japanese now hold more treasuries than the chinese do and that is something that people need to pay attention to. a lot of this has been the repatriation to deal with. that is worthing paying attention to, michael? >> i think those are powerful medium term trends. we do not pay attention to those day to day. if you look further back, what is interesting is in 2012, 2013, the chinese were buying a lot of treasuries to fight their own currency strength. and the recent problem in china was exactly the opposite. in that sense, it is not that surprising that they went from a buyer to a seller. the motivation in japan is completely different. it was not about currency intervention. it was much more the insurance sector looking at global yields and what yields are available after hedging costs. the repricing of u.s. t

treasuries and it makes sense.e a pension fund manager and you can purchase treasuries at 2.5% and the bund only give you 30 basis points, which would you rather own? .ou would rather own treasuries right now, we do a dislocation analysis, one of our most dislocated relationships is that going back to 2014, treasury rates are way too high relative to the yield. we think this will come from treasury rates coming down, rather than the german rates raising. joe: you are comparing treasuries to treasuries, showing how much has gone across the curve since the election. it is funny, because here is another thing -- theme, higher yields. where do you think they are going? where do you see the 10 year heading? >> not where they were. i think they were around 1.36 earlier in the year, we are looking at 1.2%. i am not in the 3% camp, because i think it does take fundamental progress and inflation that we will not get paid scarlet, you mentioned -- get. scarlet, you mentioned the dollar. how can we talk about the theme, itthi

having wall streeters in the treasury area. i know some people don't like that, but you need people are knowledge and experience in markets. otherwise you are doing it straight out of the academic classes. i'm canadian and i didn't vote for nick in this election. i'm not even allowed to vote in canada. but the concept of having thoughtful people who have been there, seen crises and able to react to them, those are positives. trish: this is the first time you have a real businessman. an entrepreneur in the white house. and you saw what happened this week with carrier and his willingness, his ability to get something done on that front. i know he didn't save every job, but you are talking about saving 800 jobs in indianapolis. that's a big deal for people who are there. gary: we all understand that and most of the viewers who are investors understand that. the people at "vanity fair" don't understand that. don't lose any sleep over the fact that "vanity fair" doesn't like the fact that there are business people in this administra

china has been aggressive seller of treasuries and japan last year has sold 90 billion of treasuries.foreign ownership and these hedge deals. that was one of the main reasons we have been cautious on duration at pimco. as you look at 2017, in 2016 they sold a lot. are you on the same pace selling reserves in china? >> the pace of reserve sales will slow somewhat particularly as you go over your end. we have seen pretty significant back up in the yield. we have backed up 1% on treasuries. 100 basis points in three months. those current yields look a lot more attractive. we think treasuries will near-term be supported here. fixed income market we would highlight agencies as probably the highest quality spread sector that is most attractive today. jonathan: you are staying with us. the situation as it happens in , german chancellor angela merkel and her interior minister walking around the scene of yesterday's tragic event. german authorities began looking for clues into what they called a probable terrorist attack on a german christmas market that killed 12 people and injured 48 others.

benchmark treasuries are closing at two point 5%. confidence among japan's large manufacturers improved the first time since june last year. the week improved prospects for company earnings. sentiment rose to 10 from 63 months ago. with the outlook up to eight from six. if 5.5% increase in plan to business investment for the current year was below estimates. global news 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. bloomberg. has been 12 months since the federal reserve began its liftoff. since then there has been a lot of talk but no action and while the fed stresses it's due to dependency, releases have been topping estimates at the fastest rate in two years. various measures of inflation arcola sing around 2%, the target while employment figures are trending higher. unemployment well below 5% all year. alan greenspan said the unemployment rate cannot fall much further. greenspan: the labor force is running out of extra workers. the on employment rate now is under 5%. -- unemployment

treasury.reek prime minister tsipras needs to convince angela merkel that he is not backtracking as they hold talks in berlin. we hold talks ahead of that meeting. this is bloomberg. ♪ >> i have always been quite public about not feeling i was suited as secretary of treasury. i love what i do. i think i can add a lot of value to america doing what i am doing. morgan's ceo jp speaking to bloomberg businessweek. 6:18 a.m. in london. picture on the hang seng right now. effectively quiet. the week has not in so. up to 22,074. the asian session in general up 0.3% but it has been a generally downbeat week for the asian equities session. commentrmath of the fed . let us get to hong kong and get the bloomberg business flash. here is juliette saly. juliette: alliance is in discussions as they bid on the french operations. the executives are uncertain about getting regulatory approval and they may not reach a deal. spokespeople -- declined to comment. oracle fell in extended trade. revenue last quarter w

and the treasury transition team we're big in the 80s and then he had the big fight and disappeared into the wilderness and been living on a farm and investing in movies and now he is back and on this treasury landing team and very antiregulation and very antibig government but we don't know a lot about him or what he is doing or what that's going to look like so it's very hard to cover this transition and we just don't know very well. >> speaking on regulation and economic policy and ran a bank and it's very much on the road and what he thinks should happen and i think it is a little bit more of a wildcard for how financial services are. >> it's been for a long time but why haven't it been confirmed? ross apparently seemed a shoe in last week and i spent most of my thanksgiving researching this guy and writing a story about it but monday was the confirmation day and that came and went and nothing is for certain in this environment and trump has nothing to gain by keeping the likes of us informed. >> there's an element of what ben said that there's some infighting and definitely a lot of

you'll never get risk in treasuries.ir lower term simply don't improve much in the way of capital appreciation. let's say for the sake of this example, let say 30 year treasury bonds are yielding 3.5%. that is much higher than the 2.5% to 3.25% range we saw in the first nine months of 2015. with that 3.5% yield, as long as you reinvest your coupon payments back into treasuries, you might double your money in 20 years. remember, the average historical return for the s&p 500, the benchmark for u.s. stocks, is 10% annually, which will let you double your money in a little more than seven years. so if you're under the age of 35 and you own a bunch of bonds, with the idea that they'll slowly but steadily make you money, see, i think you're being way to cautious. i know it puts me out there. but you know what? i've been around. that's how i feel. even in your 401(k) and your i.r.a., you want to be heavily weighted towards stocks while you're young. allowing your gains to compound tax-free year after year after year. i told you

treasuries versus china's holdings of u.s. treasuries and how that has tightened and then japan picking up just for the month of october. the trend is being set there. this is about the reserves being drawn down trying to support the u.n. of course all tied to that dollar rampage that haidi was talking to. with further rate hikes expected in the u.s. in 2017 this trend is expected to continue. yvonne: tom, china's leaders are gathering to discuss priorities for next year. what is likely to be on tap? tom: that's right. top leaders gathering in beijing today were expected to give some details out of that meeting later in the day beijing time. the priorities clearly are going to be around stability. economic stability and the lead up to this crucial political event next year which the communist party congress in 2017 where we're likely to see a leadership reshuffle. they are not wanting to see any instability of any sort, economic or social leading up to that. that's going to be a priority. tackling debt feeds into that picture

yields higher. 10 year treasury yields higher. on the dollar.ms to be the story for the fx market with the dollar in mind. >> it is the old by dollars, where diamonds story. wear diamonds, story. you would tend to see some repositioning and rebalancing of long dollar positions that will happened and is going on through the end of the year. by and large, the large dollar trade is not as large as people think it is, otherwise we would not come this side. >> it is remarkable and it is the only interesting question right now. we can talk about stocks being at record highs. jonathan: in round numbers. >> 20,000, whatever. this is the only interesting question. it feels like a lot of strategists are starting to gravitate around this 3% level as the safe place to save, where they can make a call that is interesting, but not to out of consensus. with the 10-year and long-term rates do from here is probably the only interesting question. jonathan: positioning is one thing. you look at the positioning and say it is not stretched, so the can of the oxygen

today he announced he wants a former goldman sachs banker to run the treasury department. steven mnuchin. his first hedge fund was named for the dunes outside his hamptons home. when mnuchin left goldman in 2002 he went to work with the aforementioned george soros, of course. he led a deal to buy the lender and changed the name to one west bank. he ran his bank that some called a foreclosure machine. one west closed on more than 36,000 homeowners under mnuchin. they accused the bank of locating branches in white neighborhoods while avoiding minority communities. in a joint statement today bernie sanders and elizabeth warren said trump's choice for secretary of the treasury, steve mnuchin is just another wall street insider. that's not the type of change donald trump promised to bring to washington. that's hypocrisy at its worse. steve mnuchin is the second goldman sachs banker trump has tapped for a position. incoming white house strategist steve bannon, a man who bragged about his forum breitbart, was the first. there are reports that gary cohn who met tuesday with donald

are limits to what the treasury can do and what the bank of japan is doing. are we anywhere near the , toof a bond bear market many of them that you have enjoyed. bring up the global total return index. ais is a great chart with great bull run bonds from 2009 up. i will put this out on social. 7% on the aggregate index. are we heading toward a bond bear market? when you combine the effect of higher interest rates and narrow credit spreads which then you are beginning to see the potential for a negative sign in front of annual total return. we have not seen that yet, but as you mentioned, it has been dramatically down in the past month or so be those of higher interest rates. when you combine thatfor with credit that could widen out potentially, and yes, you have a potential in front of bonds, though probably not significantly, unless you see a tension type of moment which we have seen a few times. tom: we have seen that a few times, we know that. constrained,ully assuming higher yield, a yellen or a trump reflation, that bill constrained, assuming highergross

and by some treasuries and look pretty good. scarlet: this is drawing buyers back to treasuries.hat he will do our driving the market can we are looking for a league and some kind of sense of where we go next. michael: you also have to consider it is the end of the quarter command of the year -- scarlet: people are looking for catalysts. michael: we will no longer term trends better in january. you have a strong equity market and weak bond market. i read one estimate from credit suisse. sort of an equal amount of treasuries to buy. with volume this low, volume is 50% of the average right now. it might be an exaggerated effect from that. scarlet: i wanted to bring you in on this function on bloomberg. this is the location of the different sectors -- rotation of the different sectors. a lot of money is moving into financials, industrials. coming out of the defense sectors, bond proxies. financials is literally off the charts here because the rallies so powerful. yet you are seeing a reversal as well. it is not a full rotation back into what it was previously about a little bit of s

. >>> the italian banks also outperforming as italy's treasury reportedly says it's ready to bail out another bank if necessary. >>> the italian prime minister is looking to form italy's next government hoping the renzi loyalists can steal the country through to the next election. >>> ridiculous and insane. the trump team strikes back at a cia report saying russian hackers may have swung the election. >>> good morning, everybody. welcome to "street signs." we look like a florida beach party. >> hard to believe, another record day on wall street. just when you thought it was going to end. >> they keep going. and now we are very much led higher by the energy sector, the oil and gas sector, really pulling us higher in terms of some of the performance numbers that we have seen here over the last couple of hours. stock share up 600, a little lower at the moment. so drifting a tad. we have seen the mixed european markets in this morning's session, just underperforming a bit, the cac 40 and ftse may be outperforming by 1.5%. we'll get on to italy in a second. just to show you the main moving

at what level do you think the treasury move is done?alue.is 275 the market tends to overdo things, you have hedging, you can get to 3%. if the dollar strengthens a lot, rates do not rise as much. something in that zone is fair. at that point, you can start thinking that is sort of done in terms of widening. vonnie: if you look at breakeven, what is it telling you? 1.97 now, so a lot lower than the 10 year. >> what the market is struggling with is fiscal stimulus with the economy at potentially full employment, a significant amount of inflation. we have never had fiscal stimulus when the economy is doing fine. when you look at 2001, during the recession, the stimulus package was after a pretty significant recession. this time we are talking about the percentage points of deficit increase and that should move inflation expectations higher. this is outside of the fact that the base affect moves anything higher. at 2%, we are at a pretty high level for the year, but we are in a paradigm shift here. inflation risk premiums should be positive

. >> announcer: why is the treasury secretary telling fox treasury secretary telling fox news treasurytary telling fox news every day starts better with a healthy smile. start yours with philips sonicare, the no.1 choice of dentists. compared to oral-b 7000, philips sonicare flexcare platinum removes significantly more plaque. this is the sound of sonic technology cleaning deep between teeth. hear the difference? get healthier gums in just 2 weeks vs a manual toothbrush and experience an amazing feel of clean. innovation and you. philips sonicare. save now when you buy philips sonicare. trish: president-elect trump could not have been more clear on the campaign trail. he said it over and over again web wants to cut tax and let the economic boom that follows help bring back the deficit and get more americans back to work. but when currents treasury secretary jack lew sat down with maria bartiromo he sounded sceptical. >> we need to get rid of the loopholes in the deductions and lower the rates. but we can't spends a lot of money having a tax cut that loses revenue because that will shif

. >> announcer: why is the treasury secretary telling fox treasury secretary telling fox news i tried hard to quit smoking. but when we brought our daughter home, treasury secretary telling fox news that was it. now i have nicoderm cq. the nicoderm cq patch with unique extended release technology helps prevent your urge to smoke all day. it's the best thing that ever happened to me. every great why needs a great how. ♪ ♪ ♪ how else do you think he gets around so fast? take the reins this holiday and get the mercedes-benz you've always wanted during the winter event. now lease the 2017 gla250 for $329 a month at your local mercedes-benz dealer. trish: president-elect trump could not have been more clear on the campaign trail. he said it over and over again web wants to cut tax and let the economic boom that follows help bring back the deficit and get more americans back to work. but when currents treasury secretary jack lew sat down with maria bartiromo he sounded sceptical. >> we need to get rid of the loopholes in the deductions and lower the rates. but we can't spends a lot of money

ralf: i have less conviction on that then bund-treasuries.england stepping back from the gilt market, domestic investors have -- willite for link as present a challenge for the gilt market. we see the gilt market selling off more in unison with the u.s. than what we expect in the bund market. gildsess of a view on versus treasuries. guy: thank you for sharing your thoughts with us. coverage ofh for the bank of england decision from noon london time. bloomberg, you can get a great function. budget and your bloomberg and ,ou will get a rolling blog some really fantastic contributors to what is going on and we will analyze every angle. up next, the impact of the feds five central banks had to raise their interest rates. unsurprisingly, given the pegs in that side of the world. what does that mean for emerging markets? this is bloomberg. ♪ ♪ guy: quick look at the bond market. significant moves around the world. we digest fed class one. the bond markets in the u.k. have softened a little bit, but around the world we see yields moving higher, pric

to see what you're passing up. >> for some of these treasury people there's always the question, is this candidate we are talking about before getting through the paperwork, the vetting, the assets, how he would -- somebody like mnuchin would put in a blind trust or liquefying assets and how willing is he to do that? of course, we have the guy at the top not really inclined to do any of that. have you manned -- how do you demand it of your cabinet secretaries? that's true of the big jobs but particularly true for treasury when you're operating within a universe of people that have significant assets and possible conflicts so that's one thing that could be slowing the treasury announcement down. trump is not completely -- i think he leans mnuchin and likes him and knows him but there are people very close to trump who are whispering in his ear, don't pull this trigger yet. look at this guy. there are conservative ideologues that would prefer allison because he's known on the record on his views on, you know, reform in the regulatory system and banking reform whereas you have more of

what would a treasury secretary want? >> should want a strong dollar. >> you hear all the ceos whining. but doesn't it attract capital? isn't this the best place to invest >> true supply side people do not see a concept between a strong dollar and strong market at all. is it global person? >> it absolutely is. if you have superior products. >> it is a question whether there is a virtuous circle. do you get a dent in gdp. how does that change the psychology of the market? >> the real risk in my opinion is that u.s. almost becomes -- or the dollar becomes too strong and you suck up all the oxygen from the rest of the world. so particularly for emerging markets, it is more of a problem than it is for the u.s. longer term. the u.s. is not a particularly big import/export economy. >> we may have some gdp to the work with where that won't be. >> i'm to not saying we won't have any. we'll see. there's tax cuts, less regulation. we're also watching crude prices. historic agreement by major producers. opec and russia agreeing to c

find out why he didn't want to be the next treasury secretary.loomberg. ♪ vonnie: you're watching bloomberg, i'm vonnie quinn. nejra: i'm nejra cehic, this is a global business report. denmark's finance ministers tells us why his country is willing to fight against protectionism. then, honeywell is suffering from what he called the continued slow growth environment. today's bloomberg quick take, generic drug industry under fire for its pricing practices. you can count denmark among the countries that will fight against protectionism. the danish finance minister spoke about the popular sentiment events -- against free trade in an interview. >> denmark is one of the denmark's brewing, that you can defend the free open market and champion free trade. denmark is one of those countries that benefited tremendously from open markets. honeywell, the maker of jet engines and safety agreement forecast earnings for next year that missed estimates. honeywell says sales are excited to fall in what it calls a continued slow growth environment. despite that, th

can your treasuries talking

nugent, treasury -- steve mnunchin, treasury secretary.shington and know it well, certainly no business well. have you ever seen anything quite like this, this injection of senior business leadership and washington? what will it likely lead to? >> i have not been interviewed for anything. david: they may be watching right now. >> i feel left out or no doubt, it is a different group of people coming in to run the government than we have had in the last eight years. i do know many of these people, very successful business people. that does not mean you will necessarily be successful in government. ithink we will see how works. sometimes business people going to government and do very well and sometimes they do not do as well. alix: you have the cabinet looking to be awesome for businesses. corporate tax rate lower, and they will do very well it is that the correct language? >> in the euphoria of postelection, everybody is happy about who has won the election, and when you pick people you think have done well in the business sector, they look

bill: just citing off of the treasury markets, the dominant country bidders to the index, the treasuryt got some very, very low yields. one could not make an argument to see 10 year treasuries. heading for 4%. within this nominal g 10 treasury market, there is always an extraordinary need for duration by different types of investors -- pension funds and liabilities, liability-driven investors. our central thesis is there is going to be a pernicious backup in yields. a gradual, sort of slow -- exactly. this is reflective of global growth and the decline of inflation. we have seen the trend -- a disinflationary trend over the last 10 years, exacerbated by the gsc. it is too early to say with that graph, that little turn of the graft -- the graph. it is something to keep an eye on. we arehe absolute level coming from that makes the shifting yields that much more pernicious. smallt such low levels, a move in yields generates a big capital story. bill is hard to stay with us. the next subject is related. it is inflationary. the market has gone cold on gold. the precious metal heading for it

bob rubin was bill clinton's treasury secretary, henry paulson was george w. bush's. now we have a bunch of goldman people. you mentioned anthony scaramucci started his career there. you have steve manchin, he's left. you mentioned bannon it's a long tradition back to the 1920s that goldman sachs and investment banks that when you get successful you give service to government. goldman was the gold standard of investment banks, during the financial crisis it for for good reason, gained a bad reputation. so the problem with steve mnuchin and wilbur ross as treasury secretary and commerce secretary respectively is that they're millionaires and billionaires so it's washington with a nicer pair of shoes and silk tie but steve mnuchin left goldman sachs, bought a bank called indy mac, changed the name of that bank and foreclosed on 36,000 people. that's different from passively taking advantage of a bad market because you happen to be a savvy investor like john paulson did. that will be tough. if you were talking about draining the swamp, you're bringing in not on millionai

treasury and tenured jgb's. treasuries rallied and pushed the yield up. it is not so much the jgb.uestion for the boj, if this selloff of treasuries continues, with will they do to maintain yield curve control, and prevent it from moving higher? haidi: we have already seen the trump effect when it comes to yield. how much further do we see this playing out for global bond markets? kathleen: bank of america-merrill lynch came up with in october survey. it shows that trump is having a impact. the rise of populism -- it started with brexit, donald trump -- italy voted down there referendum. what is next? politics isulism in no what is keeping traders and investors up at night rather than anything else. i have been watching bond markets and central banks for many years. it has been sometime since we have seen something like this. central banks seem to be more of the tail. the dog that is watching them is donald trump. his fiscal policy changes are potentially very different. certainly what investors have responded to. we are going into 2017 with again that seems like it has changed. --

want to interview other candidates. >> for some of these treasury people there's always the question of getting through the paperwork, the betting, the assets, how he would, so we like mnuchin would go about putting it in a blind trust a liquefied assess and a willing easy to do that. of course, where the guy at the top not really inclined to do any of that so how do you demand of your cabinet secretaries? that's true for all of the big jobs but particularly trouper treasury when you are operating within the universe is a people of significant conflicts. i think it's more trump is not completely, i think he leans mnuchin and likes him and no zoom but there are people very close to trump or whispering in his year old pull the trigger yet. there are conservative on a log's -- ideologues, on reform in the regular system and banking reform whereas you have more of a blank slate and a guy like steve. a lot of these moving parts we hear, either often this is coming tomorrow and then by the end of the day, stand down, it's not happening. >> nobody said romney for treasury secretary? >> i ha

but on the treasury front, he seems to be the most likely candidate to get it.re are still others in the mix. including jeb hensarling who i don't think gets it. it's hard to cover this transition because you have so many elements of the trump universe fighting each other and in terms of the transition team, steve and i were talking beforehand and it's true, this is not the universe of economic policy and financial policy people that a lot of you know very well. a guy like bill walden, sort of big in the 1980's, allied capital and then he had the big fight with einhorn may and kind of disappeared into the wilderness for a long time and been living on a farm or investing in movies and now he's back and on the treasury aaron lucchetti landing team and very anti-regulation and very anti-big government, but we don't know a whole lot about him or what he is doing. so it's very hard to cover this transition and i think there are a lot of people involved in it that we just don't know very well. >> that is a perfect example of of that. although he was a familiar face he

treasury market going back a couple years. the liquidity in the treasury market is low. it's the most liquid market. even their liquidity is lower. we've seen the pain trade as yields have gone up. there's been losses on bond investors balance sheets. if we do see yields push up to 3%, fear could start to grab and people could blindly sell. >> jordan, the last word on this. if we get a fed consensus decision, being 25 basis point hike and then really an indication of two hikes next year what do you think happens to the dollar? >> dollar goes up. most people are trying to wait for this event risk to go out of the way. the trade is about next year's fiscal outlook not monetary policy outlook. >> all right. thank you both. >>> we want to hear from you. what you are expecting from the fed, how will it affect the markets? get in touch. streetsignseurope@cnbc.com. you can also find us on twitter. @nancycnbc. >>> so much coming up on the show. it's not just about the fed. plenty of corporate movers this session. we will be talking velour versus berlusconi. fininvest followed vi

was a $12 billion auction of 30 year treasuries during the day.e have seen a big pullback in treasuries, particularly since the election. there was talk about how october and november were negative for treasuries. that is the bloomberg index showing the downturn in the second half of the year. the 30 year auction showed a better result. a couple different metrics on bloomberg. the red line shows a rebound from a nine-month low. the foreign participation in the white bar, which has kicked up as the direct better. -- direct bidder. another way of looking at this is a shortage in the treasury market. a jp morgan survey showed the biggest short in u.s. debt going back to 2014. interesting there is still a perception that treasuries could have more to go downward. host: this backup in yields could persist. great to have you on "bloomberg daybreak: asia." let's get the first word news. >> india's decision to scrap high-value rupee notes sees inflation rising at its slowest rate in two years. consumer rates rose by less than expected 3.6%. vegetable pric

treasuries are flat as the fed begins its two day meeting.te hike. the question is, what happens after that? financials and industrials are some of the best performing sectors it since the -- since the election. julie: using pumped. oliver: i'm pretty pumped. ,ulie: the bulls are pumped to especially if you look at retail investors. looking at a doubt 20,000, for example, is not necessarily an begot within less than 50 points about level. we could see the quickest move dow,on 1000 points in the if we do get there within 35 calendar days. that's the number to be. the s&p 500 is nothing to shake a stick at. a record. at the one index left out is the 2000, which has been making simultaneous records with the other three averages, but not so today. when we look at a potential 20,000, there are a lot of questions about how frothy the mess is. has it gotten ahead of itself? this is an interesting long-term trendline. the editor of the new markets live blogged on the bloomberg, which can be accessed at tl y z, brought this chart. dye --thly move in t

wall street, to come in and have the keys to the treasury. we need an economy that works across the range, that produces good jobs, produces a future. >> but it sounds like you are telling those workers -- >> increases opportunity all across the range. >> sorry to interrupt. sounds like you are telling those workers who are out of jobs who voted for donald trump and in ohio and other spaces that they were just mistaken. they were sold a bill of goods or they just don't understand what's in their best interest. >> i'm sorry anderson, did you just hear what we said about donald trump? he promised he was going to run this government for the american people and not for wall street. and what he's just done is he's just put a wall streeter in charge of the treasury. and not just a random one. a guy who actually helped package all of those toxic mortgages. a guy who bought a bank that made its fortune by squeezing people hard on foreclosure. that is the person who's going to be the chief economic officer of the united states. donald trump is the man

in the treasury market, but it is bear steepening.ntial, you are going to end up with more dollar strength no matter what. you and up with lower euro-dollar. you end up with higher dollar-yen. for the next month, you still have the boe actively engaged. tom: brilliant. here is the less difference in yield. here is the curve steepening. the difference in yields are greater. francine: yes, and it is a great chart. does that continue into 2017? richard: the reflation and the steepening trade, we are unlikely to get off that anytime soon. there is a lot of expectations of late cyclicality that will have a low impact, but a high inflationary impact. the data momentum, we talked a little bit about european data. within the u.s., europe, the u.k., even china, the data has been quite strong and that will be driving the long end of the curve. if we are pricing in everything already. from here, the markets can only be disappointed? richard: where is the disappointment going to come in? is it going to be in europe? the u.s.? or asia? markets hat

treasuries. take a look at that line.ion i have here, is the market getting ahead of itself. this rate showing the expectations for inflation on an annual basis of the next 10 years. as is going to far too fast? robert parker: i think if you quantify the outlook for inflation growth and in 10-year u.s. treasury yields, i think it is highly likely we will see a convergence between headline inflation and core inflation at around 2.5% by the middle of 2017 and they u.s. i believe very strongly that we are going to see an uplift in the first halfr of 2016, growth was close to 1%. improvement in growth in the first quarter two 2.3%. annual lysing growth in the twoed states coming out to point 5%. if you rely on that altogether come i think it is. the 10-year u.s. treasury is in the short-term oversold. athave a long way to close two point 6% but where we are next year on the 10-year treasury yield? it think the answers yields will be high. the first number will still be a two but i think we will be close to 3%. >> one of the t

his pick for treasury secretary -- steven mnuchin. finance chairman says his top priority is tax reform. >>steve mnuchin / treasury secretary nominee: we're significant middle income tax cut since reagan. >> reporter:mnuchin is a long time banker, working at goldman own hedge fund but he isn't say mnuchin can't be trusted after profiting from the housing collapse when others were losing their homes. massachusetts senator treasury secretary should of every american who got hit hard by the financial crisis." >> reporter:mnuchin will be joined by wilbur ross as trump's choice for commerce secretary. ross is a known on wall street as the "king of bankruptcy", with a history of going after struggling companies. >> reporter:these announcements come as carrier corporation and the brakes on the air mexico, something trump frequently railed about on the campaign trail. >>donald trump / october 22, 2016: we're going to stop it dead in its tracks. >> reporter:the company tweeting, "we are pleased to have reached a deal with president-elect trump

treasury was 1. now it is over. i will play you what you said. steve: the structural story has not changed. we talk of a demographics and excess savings. yields willar out be lower. five years out i doubt they will be higher than this. david: now we're up over 2.4, you were saying the structural issues are still there. is that where you are today? steven: i'm quite glad you because it tape, saves me repeating myself. none of those factors have changed. does mr. trump have a solution for demographics? can he make old people young? is there an instant cure for the lack of productivity? what about the debt overhang? this debt away? no, all we can do is hope for higher growth to service this debt. there is a bit of a challenge here. it is not something that mainstream economics, or the consensus forecast is able to capture. actually, this idea we could see yields go up and down is not out of the question. david: that is terrific, so good to have you here. i am glad to say stephen will be staying with us. let's get an update on what is making headline

so tuesday, that guy gets picked for treasury secretary. on tv and says the government should privatize fannie and freddie. the government should release those two government run mortgage companies back into the wild. and then look what happened after he said that. boing. one of the big jest jumps in stock trieses those companies have seen since the crash, since the government took them over in the crash of 2008. look at that. you know, when you're the nominee to be treasury secretary, your words can have an effect like that. one person says something, and the stock takes off like a rocket. you know, if you can imagine, right? if you're president or president-elect, could you make a lot of money if you sent your people out to make pronouncements like that while you held investments that could benefit from the impact of their words. you could make a ton of money. you see where this is going? because we don't have the president-elect's tax returns but he did file a financial disclosure while he was running for president. he said he had betwee

by the way, the treasury, the u.s. treasury under president obama backing apple. so you knew there was going to be some sound argument when it came to the appeal. >>> and in other global news this morning, iran and airbus finalized the 100 jet deal expected to be signed in the coming days. and the first part of the order should be delivered by mid-january. the timing is key because the aircraft delivery could come before the inauguration of president-elect trump. he has voiced opposition to the nuclear deal which could derail the purchase. just last week iran finalized a similar deal with boeing. and we know that a number of members of congress are against this iran/boeing deal. they don't want it to go through and have expectations. at least some, specifically on the republican wing. the republican wing want that deal to be scrapped under president-elect trump. and this deal, specifically, with boeing as well. they don't want to have anything to do with what they call financing state terror or meeting iran in any way on that. >> as we discussed before on the show