i would rather buy treasuries at 4%. treasuries are not going to be at 4%.you are looking for income, and there are lots of people looking for income, they have to take some level of risk. what is the magnitude of that risk in the corporate credit markets? relative to the incremental income you get, relative to what you get in treasuries, that risk is worth taking. jonathan: let's talk about that relationship between treasury yields and high yield notes. citigroup said that if yields fall below 2%, high-yield spreads have always been materially wider in the post taper tantrum period. walk me through what you think the relationship should be here. we have had 2% treasury yields a couple of times before. we have seen this level many times. should there be a natural relationship between where the two year yield is and where high yield spreads should be? lale: it is focusing on the two-year because it is focusing on the funding cost, indicating some sort of pressure on the economy. rates are important to watch but this is the problem in this new regime we live i

i would rather buy treasuries at 4%. treasuries are not going to be at 4%. you are looking for income, and there are lots of people looking for income, they have to take some level of risk. what is the magnitude of that risk in the corporate credit markets? i think relative to the incremental income you get, relative to what you get in treasuries, that risk is worth taking. jonathan: let's talk about that, lale, that relationship between treasury yields and high yield notes. citigroup said that if yields fall below 2%, high-yield spreads have always been materially wider, typically north of 500 basis points in the post-taper tantrum period. walk me through what you think the relationship should be here. we have had 2% treasury yields a couple of times before. we have seen this level many times. should there be a natural relationship between where the two year yield is and where high yield spreads should be? lale: it is focusing on the two-year because it is focusing on the funding cost, indicating some sort of pressure on the economy. rates are important to

i would rather buy treasuries at 4%. treasuries are not going to be at 4%.if you are looking for income, and there are lots of people looking for income, they have to take some level of risk. what is the magnitude of that risk in the corporate credit markets? i think relative to the incremental income you get, relative to what you get in treasuries, that risk is worth taking. jonathan: let's talk about that, lale, that relationship between treasury yields and high yield notes. citigroup said that if yields fall below 2%, high-yield spreads have always been materially wider, typically north of 500 basis points in the post-taper tantrum period. walk me through what you think the relationship should be here. we have had 2% treasury yields a couple of times before. we have seen this level many times. should there be a natural relationship between where the two year yield is and where high yield spreads should be? lale: it is focusing on the two-year because it is focusing on the funding cost, indicating some sort of pressure on the economy. rates are important t

you mention china with the treasuries, maybe selling some treasuries. would think if they're going to sell treasuries, what are they going to do the money, one place they might think about putting the money is gold. if you think china will be going to continue to sell treasuries, gold should do well. we -- at my firm we don't invest in gold. it doesn't pay a dividend. we prefer to make some yield on our investments. but gold could do well if the chinese are going to sell the treasuries. paul: all right. john burke, we'll leave it there. thank you for joining us. john burke, burke financial strategies president. much more coming up on the monetary policy front. later on tuesday, mario and it is rade's keynote address in portugal, 6:00 p.m. tonight for viewers in australia. this is bloomberg. ♪ kathleen: this is bloomberg technology global link. so let's take a look at the top global tech store throifs day. emily? emily: thank you. ali baba planning a 1-8 share split as it prepare farce stock sale that could be hong kong's biggest since 2020. ompanies po

jonathan: let's talk about the treasury market.olin, you said tenure treasury yields were going at 2%, pretty much at 2%. what now? colin: i think you have a good market with perspectives because we are headed lower. i think the fed will be put in a position that they do have to lower rates by july. i would hope they would do it earlier, but in our conversations, over the months and years, we didn't feel the four hikes last year were warranted, so they went too far, and now they have to pull them back. sooner as opposed to later would be better, but i would forecast the 10 year treasuries be at 1.75 before the end of the summer. oksana: this is the challenge investors are facing. even in the best case scenario, which is let's hope the feds cut here, the ag is already above it yield and every sector has locked in its yield. keep in mind as well, the fed is aware of the fact that their actions are going to have limited impact on the economy. who's going to be incentivized to do at 2.25 that they aren't doing a 2.5%? their actions can

treasury. it also speaks, most importantly, to san francisco values of affordable housing, workforce housing, and union jobs, which provide a pathway to having homes and a good source of income and pensions. the other thing i wanted to say about this is that you have been invested in this since 1996, and the fund has created 9 projects within san francisco. 1,660 units of housing, 368 which are affordable units, and the construction generated more than 300 union construction jobs, which brings in income to this city. so we ask that you really look at keeping this fund because we think it brings -- it speaks to san francisco values of housing, affordable housing, workforce housing, and union jobs. >> thank you, ms. landry. are there more? i will close the public comment. there's a motion and there's a second on the floor. excuse me. there's a motion and second. any discussion on this item? >> board members, we would need to know what else the board needs. >> okay. so there were some questions th

the treasury market rally continues.e begin with a big issue, some constructive advice after a big downside surprise. >> overreacting to one number can be dangerous. >> you are not supposed to panic over one number. >> do not overreact to one number. >> i certainly don't think the trend is as weak as 75,000. >> it is not clear that they have to ease. >> they will look for data. >> stop focusing on the fed, look at other policy instruments. >> still not weak on payrolls. >> it is hard to tip the economy over if it is just a slowdown in manufacturing. >> there is no major slowing. >> at the end of the day, the u.s. can still avoid a really bad economic outcome, but it has to stop making policy mistakes. jonathan: joining me in new york to discuss is priya misra, lisa hornsby, and bob michele. can the fed afford to be patient with this? right now they can. when we think about that policy, it's useful to think about is the reaction function changing? a lot of people think it has. i don't think it really has changed. the fed

slashesa -- beijing its treasuries. and doing more in china. >> we believe we can take care system --na echo ecosystem. we need to look at the entire picture. nejra: and heightened tensions. president trump sends another 1000 troops to the middle east. nancy pelosi calls the move deeply concerning. ♪ nejra: welcome to daybreak era. it has just gone 6:00 a.m. in london. looks like the equity markets are in weight and see mode. killing time until we hear from jay powell tomorrow. we closed flat on the s&p 500 yesterday. the 10 year yield goes down to basis points. we are not seeing any curve flattening or steepening. on a back foot. one at the aussie, that is that has been underperforming. as the r.b.i. signals another rate cut. bouncing back after a few days of losses. two weeks of off gains for global stocks and credit suisse says we could see a markup. let us check in on the markets in asia. juliette saly has more from hong kong. we are seeing the msci asia-pacific index in the green for the first time in five sessions

the treasury market rally continues. we begin with a big issue, some constructive advice after a big downside surprise. >> overreacting to one number can be dangerous. >> i concur. you are not supposed to panic over one number. >> do not overreact to one number. >> i certainly don't think the trend is as weak as 75,000. >> this is one of many data points the fed will use. >> it is not clear that they have to ease. >> they will look for data. >> stop focusing on the fed, look at other policy instruments. >> 164 months so far this year, and it is still not weak on payrolls. >> it is hard to tip the economy over if it is just a slowdown in manufacturing. >> there is no major slowing in the labor market. >> at the end of the day, the u.s. can still avoid a really bad economic outcome, but it has to stop making policy mistakes. jonathan: joining me in new york to discuss is priya misra, lisa hornsby, and bob michele. can the fed afford to be patient with this at the backdrop? priya: right now they can. when we think about fed

treasuries that we could see a plateauing in the treasury rally.e could start to see yields rise of it. banks ared central very much in play at this point in time. there will be some interesting shifting dynamics within the treasury curve over the summer months. shery: what about the dynamics within the u.s. economy? we seem to be seeing a little divergence. this chart here showing us that we are seeing the manufacturing pmi nosediving. we saw those latest numbers. we can bring up that chart i just mentioned. we can see the retail starting to bounce there. take away from all of these economic convert -- economic numbers coming out? been at theway has consumer has been driving the expansion for the past few years. we dipped into what you could say was an industrial recession back in 2016-2017. the consumer came through that unscathed. one of the things we are looking closely at is whether the consumer data does start to deteriorate. we have had somewhat ominous retail sales numbers coming in much lower than expectation and the payroll numbers tomorr

treasuries back in april. is that significant?suries, as you mentioned before, is actually nearly a two-year low, but it is really difficult to read into these numbers and whether or not it is tied into the broader geopolitical tensions. it is worth mentioning the latest numbers were collected and the latest escalation of the trade war. even though it is been speculated china could use holdings of u.s. treasuries as retaliation against the u.s., the consensus view is that it is improbable. it would be very hard for china to find another place to park its assets that would be able to absorb the massive amount of investment, and that would be safe and liquid. in addition, if china did massively don't treasuries, it would cost the price to lower and devalue china's current holdings of u.s. treasuries and could spark a dollar rally. the consensus view is the costs outweigh the benefits. paul: thank you for joining us. still to come on "daybreak: asia ," white opec and partners cannot settle on when to meet. a regional cio thinks that

yesterday we had jp morgan and morgan comments supportive of treasury.pared,uple charts do we have those? if you have the charts prepared i'm sure we have a ready for you. one of the charts i wanted to show you -- here it is, thank you. premium is this index that the fed puts out, and it suggests how much extra yields people want on their bonds. right now it is at a record low. aren't chasing yields, they want the security. to yield is not so important them but what they want is the safe haven, the rush to this safe haven of government debt. that speaks to the strength of the rally. the second chart i have is a word of caution -- if we could bring it up. the chart shows that in the futures market, traders are adding to their short position on treasuries. there is a very large short growing in the treasury market and at least some people agree with scott minard that the rally is overdone. there's a word on the strength of the rally, and it's the short , and at leastd some people think the rally we are seeing now will turn into a selloff later. >> all righ

shery: even if they dump treasuries, it wouldn't affect the treasury market that much. hold $1.1 trillion you can see that chart where you can actually see treasury holdings on the dtv charts falling steadily. central banks, really not playing that significant of a role anymore as net buyers of treasuries. with the fed has been doing, dumping treasuries since 2017 and yields have been falling for the past year. taylor: thank you. for more on these stories, don't miss daybreak australia and daybreak asia starting at 6:00 p.m. eastern. don't miss this. the fed announces its rate decision. coverage starting at 2:00 p.m. eastern. joe: economic data at 7:00 a.m. romaine: oracle reports first-quarter earnings after the bell tomorrow. bloomberg technology is up next. this is bloomberg. ♪ emily: i'm emily chang in san francisco and this is "bloomberg technology." facebook's crypto play. the tech giant unveils a new cryptocurrency called libra that they hope will be used as widely as the dollar. skeptics are speaking out. jinpingt trump and xi will meet at the

treasury secretary sitting down exclusively with cnbc.d about a china trade deal that every investor needs to hear. >>> we're kicking off our week long series, the rate shock. we'll break down how it could impact you and your money ahead. it is monday, june 10th. you're watching "worldwide exchange" right here on cnbc >>> all right. welcome back thanks for being here with us on cnbc i am brian sullivan. good monday morning. it looks like a pretty good monday morning for stocks. momentum carrying forward for the futures and for right now. dow futures are up about 95 points right now of course we'll talk more about the markets and your money coming up in just a moment but, first, breaking news raytheon and united technologies agreeing to an all stock merger that will create a company with a combined market cap of $100 billion. it will become the second biggest aerospace and defense company in the world just behind boeing both stocks are higher on the news utx up 5% and raytheon up almost 3%. on the trade front, the u.s. striking a deal with

we hold -- our treasury portfolio, no credit risk. it's 1 to 10 year treasuries. that's all that we have there. liquid credit, this is where we do take credit risk, and we would like to estimate how much we take that. again, this is where kaisa has been extremely helpful to pool data from our managers and see what we actually have as an aggregate fixed income portfolio. i am going to move on to -- let me see. yes, on page 23, lower chart, bottom chart, the bar that says average credit qualities. you could see that the -- we are comparing to barclay's ad, which is averaged credit quality of aa, and now current portfolio, it's bbb. that's by design. if we combine it with treasury, it still will be -- which is all aaa, it will be at the barclay's level. the sector exposure, again, we have an allocation to corporate high yield, bank loans, and bonds which often classify as emerging mortgage bonds. >> can i make a quick comment on page 23? >> several. >> so on the bottom chart here, there are desirable characteristics, and a tradeoff. we have lower duration. we have a

well, according to "the new york times" the treasury secretary, as i said steven mnuchin delayed and of putting tubman on the 20. president trump wouldn't put -- let's take a step back. to when this all started. it was in 2014. when a massachusetts fifth grader wrote a letter to president obama suggesting a woman be put on the u.s. currency and offered a list of possible names including harriet tubman, okay. then in april of 2016 obama's treasury secretary jack lew officially announced harriet tubman would bump andrew jackson, the decision driven by thousands of americans who reached out to the obama administration and so lew wrote this in an open letter. he said i have been particularly struck by the many comments and reactions from children for whom harriet tubman is not just a historical figure but a role model for leadership and participation in our democracy. president obama talked about the new bill in a joke at his final white house correspondents dinner speech. watch this. >> this material works well i'm going to use it at goldman sachs next year. earn me some serious tubmans

it side with the treasury secretary to defy a demand

then in april of 2016 obama's treasury secretary jack lew remember jack lew?storic move that harriet tubman would bump andrew jackson from the front of the $20 bill. according to lew, the decision was driven by thousands of americans who reached out to the obama administration and so lew wrote this in an open letter. here's what he said. he said, i have been particularly struck by the many comments and reactions from children for whom harriet tubman is not just a historical figure but a role model for leadership and participation in our democracy. president obama talked about the new bill in a joke at his final white house correspondents dinner speech. watch this. >> if this material works well, i'm going to use it at goldman sachs next year. earn me some serious tubmans. >> then presidential -- the president has a sense of humor, right. then presidential candidate donald trump was against the move to replace andrew jackson with tubman on the 20. here's what he said on the today show days after the obama administration's announcement. >> i would love to leave

movement in treasuries this morning.e ten year yield, back above 2% after yesterday, hitting the lowest level since november 2016. dollar is stronger as well "squawk on the street" will be right back through the at&t network, edge-to-edge intelligence gives you the power to see every corner of your growing business. from using feedback to innovate... to introducing products faster... to managing website inventory... and network bandwidth. giving you a nice big edge over your competition. that's the power of edge-to-edge intelligence. >>> shares of apple having a very good first 20 minutes of trading. up 2.3%. by the way, $4.60, that's over $21 billion in additional market value for a company whose stock is up almost 27% year to date. we're back right after this. dy. i called reputation defender. they were able to restore my good name. if you are under attack, i recommend calling reputation defender. vo: there's more negativity online than ever. reputation defender ensures that when people check you out, they'll find more

treasuries he believes rates are going to 0 your thoughts now we're seeing a little bit of a. divergence where the 30 year bond it's not far and in relationship. as as much as the rest of them did i'm still open to the idea that we've seen the bottom on a 30 year but maybe not the 10 year and what might the. bond market be worried about a mad swallow out about deficits as far as the eye can see were drawn so. it's an interesting thing that's happening here. how the bond market's going to react to this when all the central banks are trying to do the same thing so i and the product is still out on that but we've got some big boat was here that are going to burst max all right this is interesting mesh let's get into this a little bit more so than other words you have various bonds maturing over various length of time from one day with a bill then you have your 5 year notes then you have your 102030 year bonds and they central banks think control the short term the one year the 2 year the 5 year once you get further out on to the maturity he'll you don't have the control when you

treasury secretary steven mnuchin sitting down with cnbc about an hour ago.es rising as he delivered a progress updated on the china trade talks. >>> micron shares are on the rise after the chipmaker determined it didn't have to halt all its business with huawei >>> and netflix is losing i most viewed show to comcast we'll tell you when and why "the office qus q office" is leaving the streaming service. it's wednesday, june 26, 2019. "squawk box" begins right now. ♪ >>> live from new york where business never sleeps, this is "squawk box." >>> good morning, everybody. welcome to "squawk box" on cnbc. we are live from the nasdaq market site in times square. i'm becky quick along with joe kernen and andrew ross sorkin. let's take a look at what's been happening this morning steven mnuchin making news in the last hour -- mnuchin gave a progress update on trade negotiations with china that helped to drive the futures higher >> i'm hopeful we see a deal but there needs to be the right efforts in place this is not a deal for having the sake of a deal there is a pat

treasury department official. u.s. treasury officials will be pretty busy right now.felt as though sentiment shifted last week, particularly as another area of attack, the mexico focus, opened up. do you think that argument will be fought -- will be fought with tariffs? will they say, you will shoot yourself in the foot if you do this because you will cause more immigration coming from mexico if you hurt our economy? >> i will not try to read the president's mind. it is pretty clear that it came against the advice of his trade advisors and reflects his own personal decisions, whether he chooses to go for -- to go forward or not is probably a decision of one. i understand why the market acted so negatively. it was a surprise and he rolled out a new legal authority that could be used in an unconstrained way. of underminesort the notion that if the market dips a little bit, trump pares back his rhetoric. time for him to start talking more conciliatory about free trade. brad: that was one view. the other view is that we are seeing a trump increasingly strained by these pr

treasuries rallying a fourth day, oil tumbling 5%. we are at a 12 week low for the s&p 500 and the nasdaq, and the president is threatening to put tariffs on mexico two weeks after removing tariffs on steel and aluminum. >> it has been a white knuckle week. to see the 10-year yield hit 2.41% overnight -- we entered may at 2.5%. so treasuries are overbought on a number of different measures right now. but people still want to own bonds. viviana: still ahead, as we review the week on "bloomberg best," exclusive interviews with morgan stanley ceo james gorman, pimco's manny roman and dan ivascyn, and huawei founder and ceo ren zhengfei. plus, the vice president of the ecb says he is worried about a full-fledged trade war. and up next, more fallout from the european elections. angela merkel's handpicked successor does not appear to be succeeding. >> what you would have expected was a fresh face and a boost to the polls, and that has not happened. viviana: this is bloomberg. ♪ viviana: this is "bloomberg best." i am viviana hurtado. let's

you can see coming out of treasuries, and going into debt. watchinging to be mining stocks in the european section. prices, and focus in brazil and china. concern about supply. those are interesting features to the story which could influence the trading day. let's get to the markets. good to have you with us. let's talk about the mood in the markets. protectingvestors themselves around what could weekend, intoe the weekend. what is your expectation for success. markets are in a different mood from where they were. hoping for some sort of truce ifry a >> it doesn't seem as trump's talk about a plan b -- plan a, no increase in tariffs. about whatbe talk great friends he and mr. xi are. the fact both sides have gone into the weekend lowering the bar in expectations again and again. now we have talk of some sort of truce. markets are picking up on that and going, we are not about to get a bus stop. at the worst, we will get the status quo. stocks hitting a record high couple of days ago. it is not so bad. about what is going on with treasury yie

we do see more of a appetite for treasuries.t the start of the rout connected with trump's, we started asking when this could catch up, well, it certainly has happened now. or as prices have retreated again. they lost 16%. during the month of may, now threatening a bear market. what a difference a month makes. it is a pretty bearish picture for commodities this morning. matt: yes, what a bearish month it was as well. i guess if you were position for it, it was fantastic. asian stocks and futures in the u.s. and europe begun the week largely on the back foot. the philippines is up, but the movingndex, it is up just a fraction. chinese stocks were hit hard, and we have s&p futures down about a half percent right now. this morning, and you can see treasury yields bouncing back a bit from a really low point after president trump said friday that he would put 5% tariffs on mexico and wrecke ratchet them up 5% a monh in october.% we have our managing editor in singapore. ,ark, these mexican tariffs apparently there will be a group of

we saw treasury yields heading toward 2%. up 10 year treasury yield one basis point. the futures in europe, it looks like we could see a bit of stabilization today as well. let's check in on the markets. good to see you, following everything i have said about global markets. asia following a similar trend. >> absolutely. it is amazing what a tweet can do. president trump kicking off his presidential campaign, giving more praising comments to xi.sident the csi up 1.8%. a third session of gains, the biggest jump. australia, holding at the tooth's -- 2007 highs. by nikkei closing higher 1.7%. broad gains across asia. we are of course watching the other assets as well. yuan,nshore you in -- touching the highest level since may 27. optimism over the fact the chinese president and president are expected to meet. also, watching what is happening in japan. a three year low. tilt, pointing to price action. the boj turning more dovish. aussie.k, shorting the 1.2 5% at the moment. >> a number of central banks have gotten ahead of the fed rate australia. also, india and chilly. f

tariffs on mexico were avoided and investors hopeful of a deal with china treasury yields are rising and the return of merger monday with the raytheon-united technologies deal and salesforce buying tableau software has us up by 145 points on the dow. joining us for the first full hour of the show j.j. kin ahan from td ameritrade we mentioned yields there. that's playing into one sector as well. >> it absolutely is. the financials overall one stock that reflects it has been citigroup the stock's up almost 2 1/2% today. and i think financials in general, wilf, are a good summary of the last six days even though rates have been kind of beaten up, they've actually done okay because there's been a pent-up demand for stocks overall. >> financials up 1.2%. only one sector higher still, consumer discretionary tech also up more than 1%. a risk-on day for sure big stories we're watching today. bob pisani's covering the big stock movers kayla tausche. morgan brennan has the latest aerospace deal and josh lipton on the salesforce deal. >> hopefully the fed's going to cut rates in the next five o

treasuries rallying a fourth day, oil tumbling 5%.e are at a 12-week low for the s&p 500 and the nasdaq, and the president is threatening to put tariffs on mexico two weeks after he removed tariffs on steel and aluminum import. >> it has been a white knuckle week. to see the 10-year yield hit 2.1 4% overnight, you know, we entered may at 2.5%. so treasuries are overbought on a number of different measures right now. but people still want to own bonds. viviana: still ahead, as we review the week on "bloomberg best," exclusive interviews with morgan stanley ceo james gorman, pimco's manny roman and dan ivascyn, and huawei founder and ceo ren zhengfei. plus, the vicee ecb says he is worried about a full-fledged trade war. and up next, more fallout from the european elections. angela merkel's handpicked successor does not appear to be succeeding. >> what you would had was a fresh face and a boost to the polls, and that has not happened. viviana: this is bloomberg. ♪ ♪ viviana: this is "bloomberg best." i am viviana hurtado. let's continue

secretary of the treasury, steve mnuchin mr. secretary, thank you very much for joining cnbc. i want to kick off by asking you what has been happening over the last several days, the war of words between tehran and washington we've seen the latest round of sanctions coming out walk us through the next steps for your government? >> thank you it's great to be here with you again. i think you know we continue to have the strongest sanctions ever this week the president signed a new executive order giving treasury even broader authorities to put on sanctions to the supreme leader's office and assets held by them. i announced this week specific sanctions against individuals that have been responsible for bad activity we believe the economic sanctions are working. the president is willing to have conversations. he doesn't want war but the president is determined to enforce the u.s. and our allies interests in the region. >> so you said there are going to be more u.s. sanctions coming down the pike. those could include the foreign minister, could you confirm that and walk me through

treasuries, gold, and low volley etf's. we call them all-natural etf's because they do not use leverage or vix. here is where we are looking here. there is some movement into the safe havens, although gold has seeing outflows. look at how that does not really even compare to this rush to safe havens that we saw and q4 last year with gold where they were firing as investors were very scared. i would use the word spooked to describe what is going on here. nowhere near what we saw in 2018. scarlet: let's stay with that topic of safe havens. we want to bring in george m. stanle, who heads up gold strategy at state street global advisors, and also with us is advisor sarah ponczek. let me start with you. after the long weekend, we saw stocks fall 1%. the 10-year yield falling five basis points. gold drifted lower. gold has meandered during this latest bout of trade tensions. why isn't gold getting more of a bid? george: i think there is danger signals in equities and in bonds right now. no one is giving up on the equity market. n

the global bond market leader, the treasury market. these are treasury futures. 280 last week. one point 75%. this is a demolition or a reality check. yields are going further and lower. morgan's board at it. slashed to .3%. bunds, -.55. and crushing trade. that is what happens when you gorge. >> how interesting is this? saw inry bond sale we austria. let's look at numbers for h&m. second quarter pretax profit, 5.9 swedish krona. we are coming in a touch light. they are saying sales got off to a good start. have you been shopping? h&m continues to improve. the number of new stores, cutting the number of new stores in favor of digital investment. shiftpdate on that online. big question, what is the size of the inventory? second quarter pretax coming in light. singapore, juliette saly. great to have you with us. frontes seem to be on the foot. but the yen weaker. are seeing money moving out of the yen. biggest drop since april. japanese stocks close out the session. nissan as well. we did have an alert saying they are going to recall more than 491,000 vehicles. other makes and ja

the two-year treasury choke -- yield at a two-year low.ening following powell's conference. we could see money continue to move into bonds in the european session as well. we are seeing those 10-year bund futures and btp futures on the front foot. yesterday, we saw the 10-year bund yield get as low as 29 basis points. markets in in on the asia. juliette saly in singapore with more. great to have you with us. quite a bit of green on the screen in terms of equity markets in asia as well. juliette: we certainly are. a very good session coming through for asian equities. the nikkei up. even though the yen also moving higher. the boj standing pat and not adjusting their forward guidance either. a very good session coming through, up by 2.6% in late trade. this is one of its best sessions in about six weeks. hong kong's market continuing its very good run this week. 0.8%.of the bank of korea governor thinks the fed was more dovish than expected. the cosby tracking higher. australia stocks having another good session. led by those gold miners as

krishna: by the end of the year, treasuries are probably closer to 2.50% as opposed to 2%.that may retort on the pgm call f zero rate. the fact that u.s. has that 2% real growth rate as their trend rate in their environment, having zero real rates is not possible. in europe, it's entirely possible. because their trend rate is meaningfully lower. so i think staying at 0% real yield in the u.s. does not happen. let's come back to how does this easing help. think about it. when investments are not working and you need trade certainty with respect to that, what do you need? you need asset price stability to make sure you support consumption. you have earnings growth and you need to support consumption. and lower rates support consumption by maintaining asset prices. it is a very important consideration in this day and age. jonathan: the second point is a point well made. let's pick up on the first point, the idea that you cannot sustain a negative real yield in the united states. at the moment, $13 trillion in negative yielding assets. somewhere like europe, euro investment gra

getting a boost with those lower treasury -- >> even with everything.acebook getting bipartisan attention in washington, house financial services committee chair maxine waters calling for the social media giant to halt work on its cryptocurrency, libra, and maxine waters joins us now good afternoon to you, chair waters, thank you for joining us >> thank you very much i'm delighted to be here >> as we just mentioned you've called for facebook to stop work on libra are you opposed to the idea of libra itself or to the fact that facebook is the company behind it >> well, i've asked them to place a moratorium on moving forward with libra we don't have a regulatory agency to oversee who they are and what they're doing this is like starting a bank without having to go through any steps to do it and of course, we have some questions about facebook and some of the ways that it has conducted itself in the past, but they're creating their own cryptocurrency they're going to be located in switzerland. it's going to be an alternative to the dollar and so yes, i thi

year-to-date changes in treasuries, treasuries about 65 gilts arets lower and only 40.ot of it is uncertainty about policy. if the situation is resolved, the central bank has been more hawkish. francine: goldman sachs has joined jp morgan in slashing its 10 year yield. the wall street lender sees the 10-year at 1.75 by year-end, down from a two point -- 2%. i have a chart i will put up, but push back against that. you think 1.75 is too low? scott: let's look at the facts. 50-ave a 50% chance of a basis point cut in july. then for the rest of the rate cutting cycle, we get another 60 basis points so 110 basis points in total. in our minds, given what we know about the impact of the trade negotiations into the real economy and u.s. economy, and what we know about the other facets of the economy which we discussed. unemployment, consumer spending, rate cuts amount of seems excessive to us in the current environment, which would suggest you don't get a push lower if the 10-year is trading above 2%. you don't get a push to 1.75 this year. i don't think rates are exploding hi

do you agree, treasury ministers are responsible for this? the treasury sets the legal framework.s happening in the market and has enormous powers, which they use, to curtail practices that are damaging to the consumer. but what i don't agree with, and it is said by some that what you should do is just ban everything. i don't believe that i come as a minister in whitehall, should sit and just ban vast sectors of provision for credit. what i need to do is look at ways of expanding more affordable options. one of the people we have met on the programme, she is a youngish lady, a social care worker, she has taken £10,000 out over five years she will end up paying £23,000 for that. well, i can't comment on individual circumstances, but i've discussed that particular category of guarantor loans with the fca very recently and this is something that they are monitoring. it would seem that the regulator, the financial conduct authority, other people to talk to about this. but sadly, they said they weren't available for interview, telling us instead that they are continually supervising th

the us treasury secretary is up beat about a possible deal, but can trump and xi make progress at theummit? worse than china, is the european union about to become the new focus for the us president's global trade wars? it is a thursday. 6ood morning, asia, hello, world. 6lad you could join us for another exciting addition of asia business report. i'm rico hizon. lets kick off the programme with the ongoing trade conflict that is us treasury secretary steven mnuchin have said that the us and china are close to a trade agreement. he said he is optimistic progress can be made during talks between donald trump and xijinping at this during talks between donald trump and xi jinping at this week's 620 summit injapan. the bbc‘s samira hussain has the latest from new york. that optimistic tone from the trump administration was enough to send us financial markets higher, a clear sign that investors are really looking for a trade deal between the us and china. that said, similar notes of confidence have been uttered in the past. but, as we know, those talks ultimately fell apartand know, those

mostly treasury. in terms of the banking system. but connected to what the intelligence community and state department has a role there as well. clearly not sufficient, senator grassley. your point is well taken. there are still spaces where money can move. the anti money laundering laws are good, effective, give us the resources and tools. and we enforce a lot of the resources to move through cash systems, noninternational banking systems. but there is still more work to do there. >> well, is there any change of law or help you need from congress in that regard? have you suggested anything? if you do, now is an opportunity to repeat it. >> senator grassley, i'll -- if you will, i'd love to have treasury give you the answer to that in writing. >> so it's more treasury -- >> money laundering -- we have a tiny role. this is really a treasury matter more than it is state -- we work on that same set of issues and the designations that flow from those are state department designations. but the most important work in the banking system is