u.s. fiscal years so we also get to look back to last year and interims first full fiscal year that ended in september the budget gap grew to seven hundred seventy nine billion dollars right i mean thirty sixty percent each steep is this sparking concern. yes because on a basic level the u.s. government is spending way more money than a brings in this is not a new problem but what is new about it is that this number is exploding in times of economic well being and growth many are saying it would be a good time to actually start scraping off some debt and on top of that this debt is getting more expensive as interest rates have been rising charmes tax cuts especially the ones we're called rationing are expected to cut government revenue by one point three trillion dollars over the next decade that is what the congressional budget office calculated financial correspondent so if you should monthly on wall street a good speech he thinks sophie. the british cabinet has approved a draft of briggs that deal between the u.k. and the european union after five and a half hours of talks on wednesday the text now has to be

a ballooning u.s. budget shortfall causing the treasury to set a record. that is next.his is "bloomberg real yield." ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to look at where we stand in 2018. we start with the rise of issuance from the u.s. treasury. there has been $1.2 trillion raised in net new cash, dwarfing previous years. high-yield issuance was the opposite. sales slowing to levels we have not seen since 2009. we are on track for the slowest november since 2008. the search continues. more than $762 billion in new loans issued, with new money rising around 8% over a year ago. we are largely driven by a wave of repricing. joining me is ira jersey, noelle corum and jose rasco. high-yield investment great, those in euros and in dollars set for an annual loss for the first and since 2008. how significant is that? noelle: killing back to my growth you for 2019, we expect growth to moderate. we are guessing it will be around low two's by the end of the year. that's a relatively positive platform for credit. we think it is going to -- as lo

a ballooning u.s. budget shortfall causing the treasury to set a refunding record. that is next. this is "bloomberg real yield." ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to head to the auction block and look at where we stand in 2018. first, we start with the rise of issuance from the u.s. treasury. in the calendar year, there has been $1.2 trillion raised in net new cash, dwarfing previous years. high-yield issuance was the opposite. year-to-date sales slowing to levels we have not seen since 2009. plus, we are on track for the slowest november since 2008. in leveraged loans, the surge continues. more than $762 billion in new loans issued, with new money rising around 8% over a year ago. last year's huge volumes were largely driven by a wave of repricing. still with me is ira jersey, noelle corum and jose rasco. you i want to talk about what is happening in credit. high-yield investment grade, both in euros and in dollars set for an annual loss for the first time since 2008. how significant is that? noelle: going back to my growth view for 2019, we

because obviously in the future donald trump will not be a bull to take on new debt increase the u.s. budget deficit as recklessly as he has done during the first two years of his presidency. the dollar is down slightly as well the german stock market the german dax our index here is up around about one percent because well the democratic majority in the house is likely to also want to cooperate with trump for example in front in terms of a new infrastructure bill maybe not a huge one like trump has promised but the democrats in the house will likely not want to muffle or slow down the u.s. economy completely. there's also hopeful that the atmosphere between the u.s. and its major trading partners will get more friendly. that's a huge discussion on the trading floors in terms of china i can tell you there is not much hope that the tone will become more friendly the u.s. president has enormous power when it comes to trade policies impose interests and stuff like that and you know at least parts of the democratic party have been eager to want to make sure that voters understand that they too w

breaking news on the u.s. budget. it comes in at 100 and have billion dollars.han what the cbo and economists had expect it. -- expected. 63.2 billionwas dollars. a widening of the u.s. budget deficit to $100.5 billion before the month of october. no real impact when you look at the market. certainly equities right now are all over the place. the dow is negative. the nasdaq is positive in the s&p 500 with a gain of .2%. up ton check some of it the drop in oil prices. caroline: also bowing coming out with concerns about the oil production not being up to expectations. performer. worst the pound is firmer by .8%. explain what's going on here. caroline: endgame. we heard that from theresa may in our show yesterday. we also got some data that u.k. wage growth accelerated. a sickly if we get a deal we are starting to brace ourselves with potentially the bank of england. scarlet: the worst performer in the s&p 500 is tyson. the trade war with china, the unfinished nafta 2.0 mean lots of red meat and poultry not being exported to our partners. let's dive deep with our

about reckless way that the administration has you know done policies likely to increase the budget deficit in the u.s. and here the market or a majority of people i talked to are hopeful that the democrats in the house will prevent the budget deficit in the u.s. to widen too much that's reflected for example on the bond markets today where the yield on the ten year government bond the u.s. treasury bond has come down somewhat and also the dollar is slightly weaker today it was with the market reaction of those midterms thank you. the german council of economic. predicts the national economy to grow by only one point six percent this year at the previous estimate of two point three percent they say the government has a number of problems to address because of the aging population the report suggests increasing the retirement age and lowering taxes council also urges the government to take precautions against the ongoing trade war germany relies heavily on exports putting it in a precarious position. allows fed is on that council of economic experts and joins us now just how much of an effect is that t

if youlike back a few years when we were there the middle we were in a stronger budget position now. we look to the u.s. defense budget to remain strong. we see growth around the world. a third of our defense backlog is outside of the u.s. >> interesting a third of the backlog is outside of the united states. what are your priorities. >> the head quarters for the defense operations in st. louis. we are proud of the workers there and what happens in our state and neighboring state. certainly, we do see more of a commitment to long-term planning. you not online have orders for this year but future years. you can keep the line open. we got way behind in the previous decade. in the obama decade. it's showing and everybody that understands the military knows we have catching up today. we began that in a significant way this you. we are committeed to maintain that as a senate and country. we do what we need to have investments to proticket the military. chinese are do can what they have to inside the systems. we lose the advantage if approximate we let that happen. we never want americans to be in a fair fig

when you look back, obviously at the time of apollo, nasa was 4% of the u.s. budget, it's now about 0.4 to 0.5% of the federal budget. on the other hand look at what they had to do to make apollo happen. they had to figure new math. it was a huge infrastructure project. we have all that infrastructure. i think it gets back to the will, actually, technologically i think it's possible, there are no things that make it impossible. it really is a question of do we have the will to actually do it? it really did take president kennedy saying within a decade, we will set foot on the moon, and it happened. i think going to mars is actually way easier than that personally. >> of course president kennedy, you know, was in a space race. there was a competitor throughout and the u.s. likes nothing better than a competitor. do we have that competitor today? >> i would probably argue not so much. obviously there's certainly talk about china's space program, but i would argue what we have now is not a competition, but we have this amazing point where you now have 16 different space

u.s. and china. budget projections are quite dire. the annualize costs of u.s.ooning out to billion u.s. dollars. we have over a trillion dollars maturing . it is 16.5% of the u.s. budget. this is clearly an unsustainable path and could be maybe a major theme in 2019 where the markets begin to discount this situation. francine: will it have an impact -- i know you were talking about some of the industries this impact on.an will it have an impact on the pharmaceuticals because of drug prices? >> let's say you have a form of reimbursement system. you don't see a change unless they change the competitive framework for how they set drug prices. i'm more concerned about the health insurers. those could be the real casualties in healthcare reform. tom: very good. we now go to hong kong. looking forward to these comments and this conversation with timothe o'brien. an executive editor of bloomberg opinion. i love your essay. i love how you go back to president clinton chagrinned in 1994. he changed and said i need to do my dead level best. this morning what is the dead

u.s. anti-doping agency to use trump's method some may say it's blackmail in this situation that's exactly what he did speaking about the budget u.s. contributes the biggest amount of money to what is annual budget more than two million dollars the u.k. about nine hundred thousand dollars and travis tygart hinted that this budget may be pulled so it's about three million dollars of thirty four annual money that water has in its possession now you may ask yourself what's the bone of contention here obviously the world anti-doping agency has decision to reinstate. in its full rights as part of the world anti-doping family on september twentieth the headlines were vicious and there still are vicious some media are in total frenzy about that decision but the president of water so craig really the recipient of biggest criticism following that decision spoke about that about his decision in london today. how can you describe. do you find right public pleas to the russian authorities i copied not lecture to all of my committee sheen given shot just two conditions we will declare a result of compliant and then we get a lecture from ru

u.s. defense budget in the aftermath of big changes, including the midterm elections, but also rethinking within the trump administration about how much they want to spend on the military. we have a fantastic panel to

u.s. contributes every year to waters annual budget and i also asked the president of whether he felt there was any kind of confrontation with their u.s. colleagues is there a conflict of any kind with the u.s. anti-doping agency and u.k. and i'd open agency following the summit at the white house a few weeks ago i think it would be easier to she. indicated it was pretty usually. it was limited to people particular. decision and she shows now we also have a confirmation from the russian ministry official from the minister himself that russia indeed granted the access to moscow aboard stories and obviously we'll be following that process on the damage twenty eight every step of the way make sure you tune in to r.t. to get the details on that day what happens in moscow. reporting there from back a and i still ahead feed this out don't trump is up in arms over the decision to recant folks my age during the midterms in the case state of florida we'll have the details just after the break. us the benefit of tremendously economically through the cost of it we'll do the world by coming out about e

a ballooning u.s. budget shortfall causing the treasury to set a record. that is next.his is "bloomberg real yield." ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." i want to look at where we stand in 2018. we start with the rise of issuance from the u.s. treasury. there has been $1.2 trillion raised in net new cash, dwarfing previous years. high-yield issuance was the opposite. sales slowing to levels we have not seen since 2009. we are on track for the slowest november since 2008. the search continues. more than $762 billion in new loans issued, with new money rising around 8% over a year ago. we are largely driven by a wave of repricing. joining the is ira jersey, noel jose and pose a rasco -- rasco. high-yield investment great, those in euros and in dollars set for an annual loss for the first and since 2008. how significant is that? noelle: killing back to my growth you for 2019, we expect growth to moderate. we are guessing it will be around low two's by the end of the year. that's a relatively positive platform for credit. -- asnk it is going to

u.s. contributes every year to what is annual budget and i also asked the president of whether he felt there was any kind of confrontation with their u.s. colleagues. i think it would be fair to see the view of the meeting that was. indicated that it was pretty selective. it was limited to people who took a particular view of a discussion decision and she shows. that there were. in my view. inappropriate comments made by some individuals coming out which we don't wish. to london today she later. now we also have a confirmation from their russian ministry official from the minister himself that russia indeed granted the access. the way. to get the details. on a flight to china. ok . thank. you. much. the same they could do with a nice beach holiday and that's how the news the exif asas i hear not say more and . join me every day on the alex salmond show and i'll be speaking to guests of the world of politics or business i'm show business i'll see that. later on. this is both of us broadcasting around the world and covering the big bad world of business and finance and the impact upon all of u

u.s. contributes every year to what is annual budget and i also asked the president of whether he felt there was any kind of confrontation with their u.s. colleagues is there a conflict of any kind with the u.s. anti-doping agency and u.k. and i don't mean agency following the summit at the white house a few weeks ago i think it would be easier to she. indicated it was pretty selective. it was limited to people particular. decision and she shows now we also have a confirmation from the russian ministry official from the minister himself that russia indeed granted the access to moscow aboard stories and obviously we'll be following that process on the damage twenty eight every. of the way make sure you tune into artsy to get the details on that day what happens in moscow. bottle could be wasteful it live the last terrorist stronghold in syria says a current cease fire is under threat as terrorists are apparently uniting themselves with so-called moderate rebels in the province and to trying to reports syria's province is still an unbelievably complicated melting pot of anti assad militias fro

u.s. congress. to 2014, 1 institution cut their budget by 20%, the u.s. house of representatives. primarily serving constituents, answering constituent communications coming in primarily by email and social media, responding to requests and assistance with federal agencies, acting as ombudsman on behalf of their primarily working as customer service representatives for constituents. host: is the training different for members of the house and senate? a little bit. the senate has more of a mentoring system because it is a smaller class, they have more time to ramp up and will often team up with a more senior member, probably of their same party, same with the chiefs of staff. so training is different but the orientation is shorter. host: from nebraska, fred is next. caller: hello, sir. retired truck driver, and -- united states government in 1980. they deregulated trucking and started a recession. one company was 10,000 employees. they put them guys on the street, out of work. but nobody ever approaches this government, took around, i don't know, 20 billion, $39 billion , andf a pe

u.s. faced budget caps and political dysfunction, which is leading to an eroded military capability.izing $733 billion in a defense budget this year has ordered the pentagon to cut 5% of its budget just as the military was beginning to invest in fixing years of neglect. jon kyle said the following statement. >> the report notes china and russia have strongly studied the u.s. strategic advantages and countered with artificial intelligence. >> and james mattis was at the u.s. and mexico border and says the u.s. will send more troops there. >> he said there's 5,900 troops that have been sent since the end of october and the number could go as high as 7,000. he told reporters while traveling with embattled homeland security secretary kirstjen nielsen that he did not anticipate military personnel coming into direct contact with migrants. >> they don't need their weapons. the engineers, the soldiers, the marines doing that are overwatched by mps that are armed and the normal force protection wherever they go. >> unlike a deployment overseas, these troops that will miss thanksgiving with th

private savings need to finance the larger u.s. budget deficit.from profits and the economy, that is a gradually tightening device. the absolute amount of tightening is asymmetric to 10 years ago. incomes are providing capital and savings flows into financial assets, and that is quite positive. that is the more longer-lasting constraint. the idea the economy will fall where theiff, it is shorter term outlook is one of rebound. this gradually tightening fed will be with us for a while. some terriblyve they shock, the federal funds rate will be up 100 basis points. tom: you do first-rate economics and first-rate strategy. what do you tell people to do sitting in their kitchen? there are big hitters at citi private bank. you could sleep in the subzero. what are you telling fancy people to do with their money right now? >> don't try to go in and out of the markets. tom: cash has a value, right? >> absolutely. it is increasing value. at the short end of the u.s. yield curve are largest overweight. we are still 1% underweight and global bond markets bec

so refused to submit a revised budget plan as was widely expected how's that gone down with officials. the u.s. fish was stone silly opposing this budget from rome because the simply the numbers don't add up the debt level is too high and the approach is not sustainable and they also posed by the fact that italy's in total defiance of all european road it's the first time that this is the this is a budget that is completely rejected by the e.u. commission and it's a first time that the government is not cooperating with the commission to find a solution and so brussels is now on for a showdown with italy so what's next what does this show include. where the commission can as early as next week launch a so-called excessive deficit procedure and advise italy formally to come up with new proposals and to get down to two to straighten out the numbers the estimate for growth for example all the levels but this procedure can easily take six months or more and the plan here bus is to take it until after until after the european elections in may two thousand and nineteen and the commission has a need

the national defense budget, but also veterans affairs and homeland security in state department and security assistance and everything that can be broadly defined as related to u.s. national security but what is called the national security budget, just the department of defense and the nuclear activities at the department of energy. that is now $716 billion. so pushing 70% of $1 trillion and that is the part we are here to talk about today, and should that part be growing as general dunford and secretary mattis in the defense commission have argued? should it now plateau or be cut, which seems to be where president trump and john bolton and others within the trump administration are today or should it plateau or should it go somewhere else? that is ultimately where we want to get in the conversation, and i look forward in the second half of the discussion to your questions as well. without further ado, elaine, if you could help us frame this politically in the aftermath of what we have just seen. >> thank you and it is nice to be on this panel with everyone else. i suspect as the panel goes on, i will have less and less to say once we get into some of the detai

u.s. housing and durable goods. opinions on the eurozone budgets, including italy. we have the u.s. closed on thursday for the thanksgiving holiday. joining me is gershon distenfeld, kathleen gaffney and james athey. gershon, on the trade story we have been whipsawed the whole week. if we get a truce, it will help market sentiment. does it address economic issues we see and experience globally right now? gershon: it is impossible to say. we can't predict with this president is going to do. he is more unpredictable than most. we will continue to be volatile. what's important to remember and part of the reason the u.s. economies outperforming the global economy is the u.s. remains relatively closed marketed. kathleen: i think that there will be a truce. i think there has to be because everyone has to too much to lose if the economy slows down. in my mind that is a given. the really interesting thing that is going on is the tension between the u.s. and china is only just starting to build. we have short-term leverage. we are the leaders in technology and innovation in the chip industry

u.s. defense budget is far more, and three times china, and far more than all of china and the next 10 or 11 countries put together. it is more than double of what all of our nato allies have spent, and again they should be spending more and i agree with the administration on that. we have to leave, but there should be a coalition. we should go it alone and church hill was right when he said the only thing worse than fighting with allies is fighting without them. we want muslim countries, and this is a struggle for the islamic world, and i fight for the heart of islam and by the way, nowhere is that more pronounced than in the kingdom we have of course the king who is the keeper of the two holy mosques in addition to other titles. the fourth lesson is that you have to understand that you cannot counter terrorist with just counterterrorist or separation. you have to have a comprehensive campaign and all of the counterterrorism campaign, and not with us doing it the way that we had to do it back then, but rather doing it in support of post-nations and enabling them and assisting and advisin

correspondent band gets bail so refused to submit a revised budget plan as was widely expected how is that going down with you officials the u.s. official was. opposing this budget from room because the simply the numbers don't add up the debt level is too high and the approach is not sustainable and they also posed by the fact that italy's in total defiance of all european road it's a first time that is that this is a budget that is completely rejected by the e.u. commission and it's a first time that the government is not cooperating with the commission to find a solution and so brussels is now on for a showdown with italy so what's next what does this show include. but the commission can as early as next week launch a so-called excessive deficit procedure and advise italy formally to come up with new proposals and to get down to two to straighten out the numbers the estimate for growth for example of the debt levels but this procedure can easily take six months or more and the plan here in brussels is to take it until after until after the european elections in may two thousand and nineteen and the commission also needs to

the u.s. budget deficit in the president's first fiscal year grew to almost $800 billion.ng about that? >> i think john is right. mr. bolton is not the first person to say that. admiral mullin said it back in 2010. what are we doing about it? two things. we are ore growing the government. if if it grows at 3% it's 2.6 trillion less debt over the same 10 years. we take in more money and pay out less in welfare programs. at the same time spending is part of the equation. deficits -- money in, less money out and why you heard the president for the first time in a long time take up spending as an issue at the last cabinet meeting. >> sandra: are you concerned about the impact the tax cuts are having on our debt? >> no, it grows the economy. revenues we took in as a government set a record this year. they'll set another record next year. did we see corporate earnings drop a little bit? yeah. to be expected when you lower corporate rates. in the long run we see them go above where they were going to be. the total revenues aren't the problem. the spending side of the problem is t

u.s. defense budget and national security priorities. l take you to that event, which starts -- or is scheduled to start soon. michael: good morning. welcome. thank you for joining us to talk about the u.s. defense budget in the aftermath of big changes, including the midterm elections,

u.s. defense budget is far more than three times china, and, it is far more than all of china and the next 10 or 11 countries put together, it is more than double what all of the allies have spent and again they should be spending more i agree very much with the administration on that. and then we have to lead, it should be a coalition we should not go to it alone, churchill was right when he said the only thing worse than fighting with allies is fighting without them. and, especially we want must -- not just the traditional nato and other in a sense western allies, we want muslim countries. this is an existential struggle for the islamic world, this is a fight for the heart of islam, and by the way, nowhere is that more pronounced than in the kingdom, where you have of course the king who is the keeper of the two holy mosques in addition to other titles. before the lesson is that you have to understand that you cannot counter terrorists, extremists, like isis and al qaeda, with just counterterrorist force operations you have to have a comprehensive campaign, all of the elements of the com

u.s. defense budget is far more than china -- it's three times china's, and it's far more than china and the next 10, 11 countries put together. it's more than double what all of our nato allies send. and, again, they should be spending more. i agree very much with the administration on that. in any event, we have to lead, but it should be a coalition. we shouldn't go it alone. churchill was right when he said the only thing worse than fighting with allies is fighting without them. and we especially want not just our traditional nato and then other, this a sense, western allies, we want other countries. this is an existential struggle for the islamic world. this is a fight for the heart of islam. and, by the way, nowhere is that more pronounced than in the kingdom where you have, of course, the king who is the keeper of the who holy mosques in addition to other titles. the fourth lesson is that you have to understand that you cannot counter terrorists, extremists like isis and al-qaeda with just counterterrorist force operations. you have to have a come prehence f -- comprehensive campaign.