marker economic indicators and when we just inject them into the corner me it looks more like the u.s. fed. quality of easing but we don't just inject them we don't just pour of this money into the economy we invest them into the target infrastructure projects that if we are going to do that there will limit our economy so where do we claim to invest into it it's the more mainland's of the transurban railway and the third rail of the third. circle road to the ring road around moscow to you ease the pain the transport flows so we have this route ain siberia we can. increase the cargo transportation and for then it you know the company is there working a natural resources sector they'll be able in the commodities sex if they will be able to invest more into the development of their deposits. and then we'll see a payback of these investment and thinks of this cushion we can really strike a fine balance in the economy i'm sure i really hope that it will see the positive effect from it. c.n.n. . that's for sure thank you very much. mr putin. been i worked here in the end of the nine hundred nin

balance sheet you say we almost had a move towards stimulus in the spring or soon as bernanke the u.s. fed chairman mentioned tapering that one of the it completely so you know we basically want to see you know more pro a proactive approach from the government you know some fiscal some monetary changes some budget changes and i think it really does come down to that confidence if there is more confidence that the government is now getting its act together and is taking a more proactive stance if we get that message and we see that happening i think you'll see the follow through from investors and hopefully from domestic investors as well as foreign investors as well use the analogy of cooking earlier what's the right recipe to get people interested in this market again. then russia's case is going to kind of hard i think it should go out marketed a bit more i mean terms of investment the pretty investments been standing on the sidelines but the wrecked investors those particularly in return have been piling in and the because you still have growth you still have rising incomes and at the s

the fed welcomes this response is a tries to scale back massive support of the u.s. economy. let's turn to brussels, where european finance ministers say they have made a cruise in the long-standing efforts to deal with eggs. -- banks. beingnking union negotiated would likely be the eu's biggest project since the introduction of the euro. >> when banks across europe found themselves on the brink of collapse in 2009, governments across the continent put their hands in their pockets to bail them out. many almost dragged nations with them. now european ministers have had a breakthrough. the deal would create an eu wide rescue fund paid for by the banks themselves worth 55 billion euros, but it won't be up and running for a decade. >> the question of how the national contributions will be put in a network that will be mutual allies to 10 years has to be answered by an ntergovernmental agreement. this is not germany's chosen ath. >> the key point of the agreement, that it will be the banks and not the taxpayer who pays. all ministers were keen to sell it as a victory. >> the frenc

do you think the taper yesterday was the fed's vote of confidence in the u.s. economy or was it the fed realizing this is getting to dangerous levels, that the benefits of qe are not exactly as they expected them, so they have to taper it, anyway? >> i think from the fed's perspective, it was more a vote of confidence from the economy. i think the rest of us would say it's more of the latter than the former. with the fed having singled out the fact that job markets and unemployment specifically were metrics that they were watching, you know, i think we kind of hit that mark for them to at least begin the tapering and, again, doing so in a baby step buys them a bit of latitude so they don't have to worry about backing off necessarily if we get one on two weak job numbers in the months ahead. >> there has been some thought that they wouldn't taper mortgage-backed securities. why do you think they chose not to do that? why do it evenly? >> yeah. i mean, i think that's going to be interesting going forward is do they kind of rachet both of them down or do they err o

so we might get fed tapering under way and u.s.r, then, if we don't have to face the prospect of a shutdown, what will dominate it? >> well, isn't that interesting? all of a sudden, there's going to be some free time. maybe we will see progress on an immigration bill, a freddie/fannie bill, maybe even the jennings of tax reform without this budget overhanging everything. i think some other issues might get quite a bit of attention. >> greg, good to see you this morning. thank you for joining us from patoma research group. that's it for today's edition of "worldwide exchange." coming up next, "squawk box" and the countdown of opening of markets stateside. whatever happens, we hope you have a profitable day. good-bye for mow. now. >>> good morning. taper talk reaching a fevered pitch. embracing change just in time for christmas. >>> the treasury department drives away from general motors about $10 billion short. and regulators get ready to approve the volcker rule to keep banks from making risky betts. it's tuesday, december 10th, 20

u.s. budget deal was seen as paving the way for an early fed tapering. metals and gold miners tumbled in today's trade. australia's fortescue shares tumbled by 4.3% and bhp bill ton by 1.8%. ross. >> thanks for that, sixuan. have a good evening in singapore. >>> the u.s. house is expected to vote on the bipartisan two-year budget deal today. they're mostly falling in line behind the gop leadership. the house cleared the measure by a 9 to 3 vote, setting it up for debate and a vote on the floor of the chamber today. >>> and president obama's reportedly expected to nominate stanley fisher to replace janet yellen as fed vice chair once she takes over for ben bernanke. fisher has held top posts at the imf and world bank. in the 1980s, his students including bernanke, mario draghi and summers. he called the upon buying program, dangerous, but a necessary move for the u.s. economy. >>> joining us with his thoughts on credit is kevin corrigan. thanks very much, indeed, kevin, for joining us. do you have any views on the implication of stanley fisher -- >> yeah.

first, japan's central bank says the u.s. fed has acted appropriately by signaling it will taper in january. the fed's move was based on a steady recovery which can accelerate. but he gave no indication that the bank of japan was ready to go the same way. it kept its massive bond buying policy unchanged. joining us is azumi from hsbc. thank you very much for joining us. we've got dollar/yen up to a fresh high, 104.60. with fed tapering, will the yen continue to eat? how is that going to help the country out? >> yeah. i think the yen is not at risk of immediate appreciation. it's very clear that the fed is much farther ahead than the ecb and the bank of japan in terms of its intention to reduce monetary accommodation. so i think the bank of japan is quite firm that it will keep its easing program in place. and i think with the yield differential still there, there's no risk for immediate appreciation. >> yeah. they're not yield differentials certainly getting wider. when we get that sales tax hike in next year, are you expecting t

for the low and middle class have remained stagnant while the fed has allowed banks to double in size accounting for forty percent of the u.s. economy the fed has twelve regional banks and this one in new york is not only the largest it's also the closest to wall street salaries profits and bonuses have all grown over the past century one thing has shrunk the value of the u.s. dollar has declined a reported ninety five percent since i'm there across central bank was created following the two thousand eight hundred actual crisis millions of jobs in homes were lost. wall street went on to make a record breaking profits courtesy of the feds want to cheat if easing program done is it's basically taking a lot of the credit that was on wall street's balance sheets and it's it's brought it onto its own balance sheets and so it's playing this huge support function in the economy andrew sar who spearheaded the first quarter of q.e. has apologized to americans for what he calls a backdoor bailout for the bang. most americans can't really get credit after the financial crisis still to this day even though wall street's been stabilized

for the low and middle class have remained stagnant while the fed has allowed banks to double in size accounting for forty percent of the u.s. economy the fed has twelve regional banks and this one in new york is not only the largest it's also the closest to wall street as salaries profits and bonuses have all grown over the past century one thing has shrunk the value of the u.s. dollar has declined a reported ninety five percent since i'm there because central bank was created following the two thousand and eight financial crisis millions of jobs in homes were lost. to wall street went on to make a record breaking profits courtesy of the fed's quantitative easing program done is it's basically taking a lot of the credit that was on wall street's balance sheets and it's onto its own balance sheets and so it's playing this huge support function and the calling me andrew star who spearheaded the first quarter of q.e. has apologized to americans for what he calls a backdoor bailout for the. banks most americans can't really get credit after the financial crisis still to this day even though wall street's been stabilized and so

u.s. >> reporter: the fed has decided to taper his monetary stimulus program, so how have the markets reacted to that so far? >> i can see stabilization of the market activity now. bad news has been discounted in the market, and one important point is the tapering means, the gradual economic improvement in the u.s., which is good for the asian market, especially asian market export to the u.s. so tapering's not necessary, but for asian market. >> reporter: what's your outlook for asian markets for 2014? >> i think the market characteristics move from the liquidity to the market to earnings market. market participants will try to focus more on the earnings, visibility or earnings improvement than based on the earnings growth rate of 2014. the market gradually going up. that's my expectation. so relative data not as high as this year next year. u.s. economy expansion and euro areas are bottoming out and the japanese economy are also growing, so economic growth to some extent contribute to the emerging markets. one wildcard is the chinese economy, if the chinese economy can maintain the stabilit

for the low and middle class have remained stagnant while the fed has allowed banks to double in size accounting for forty percent of the u.s. economy the fed has twelve regional banks and this one in new york is not only the largest it's also the closest to wall street as salaries profits and bonuses have all grown over the past century one thing has shrunk the value of the u.s. dollar has declined a reported ninety five percent since i'm erika's central bank was created following the two thousand and eight financial crisis millions of jobs in homes were lost. but wall street went on to make a record breaking profits courtesy of the fed's quantitative easing program done is it's basically taking a lot of the credit that was on wall street's balance sheets and it's onto its own balance sheets and so it's playing this huge support function in the economy andrew sar who spearheaded the first quarter of q.e. has apologized to americans for what he calls a backdoor bailout for the big. banks most americans can't really get credit after the financial crisis still to this day even though wall street's been stabilized and so we ha

u.s. economy. the fed announcement sending stock prices soaring. >> congress relearns compromise. the budget deal now awaiting a presidential signature. >> and the evolution of the war on drugs. substances you can get online. z >>> wall street cheered today when it happens the dow jones shot up more than 200 points, the minute the decision was announceed and continued to climb from there. the fed said would it trim bond purchases from $85 billion to $75 billion but suggested interest rates would remain rock bottom into next year. >> today's actions reflect assessment economy is continuing to make progress. that it has much farther to travel before conditions can be judged normal. >> he says the economy is growing at a moderate pace but recovery is far from come scompleet said he consulted with janetelen. >> the senate voted 64-36 to pass a bipartisan spending plan that the house approved last week. this deal would avert another shut down for at least two years. lawmakers say this compromise was just that. a compromise >> this is a compromise. that means neither side got everythin

u.s. homes. the fedd of meeting, down by about 26% this year on track to post its first annual price tumble in more than a decade, and more after the break. ♪ wheres is "money moves," we focus on innovative alternative investments. i am deirdre bolton. stocks are higher. output at u.s. factories rose more than one percent in november after a revised 1/10 of one percent gain in october. the fed begins meeting tomorrow, investors listening to see if it will be reducing its monthly bond buying program. grew,2013 luxury spending looking at the recent china anticorruption efforts. china also has predicted slow growth next year. fda says some companies have one year to prove antibacterial soaps are infected to remain on shelves. say -- they say there has not to show theyata are effective and that they may be affecting antibiotic resistance. an executive at bank of america private management joins us. investing in timberland. doug, welcome. glad to have you with us. we know for a decade this has been a pretty h

u.s. economy. the fed announcement sending stock prices soaring. >> congress relearns compromise. the budget deal now awaiting a presidential signature. >> and the evolution of the war on drugs. substances you can get online. >>> wall street cheered today when it happens the dow jones shot up more than 200 points, the minute the decision was announceed and continued to climb from there. the fed said would it trim bond purchases from $85 billion to $75 billion but suggested interest rates would remain rock bottom into next year. >> today's actions reflect assessment economy is continuing to make progress. that it has much farther to travel before conditions can be judged normal. >> he says the economy is growing at a moderate pace but recovery is far from come scompleet said he consulted with janetelen. >> the senate voted 64-36 to pass a bipartisan spending plan that the house approved last week. this deal would avert another shut down for at least two years. lawmakers say this compromise was just that. a compromise >> this is a compromise. that means neither side got everything t

fed, the imf. raising its forecast for it u.s. growth. you can see that reflected in u.s. futures and around the world. futures up 7 points on s&p, about 0.5% gain. same on nasdaq and dow. we are seeing the grind higher for bond yields, 2.9% on the back of fed taper. chinr taking it on the against most currencies. crude oil falling, it has been an uptrend. that has an effect. looking at the price of gasoline. cents over the last week. >> i knew i paid more. >> gasoline futures are rising. >> the china market story everyone has been looking at? >> everyone is concerned about what is happening with that. >> it is a seasonal thing, it has been percolating and is not going away. >> i am not concerned. >> if you went to beijing, you would be. >> it is a command economy, we cannot invest as regular joe's. bank managers and china will do what the party tells them to do. >> it is not working. >> they may have lost control. page,'s get to our front the stories making the front page. in the u.s., a deadline for individuals to sign up for health insurance under the affordable care act

u.s. economy that was relatively weak despite the substantial stimulus by the fed. we're concerned about the fiscal cliff. we avoided the fiscal cliff. we had the sequester and then the government shutdown. despite the uncertainty, the euro's numbers are getting better and better. we don't expect such a risk next year because the political cost of the government shutdown was substantial. most likely we're going to get some help. looking forward we are bullish. >> what does it mean for the u.s. dollar? we've seen some strength after the tapering last week but it seems as though the dollar rally that everyone is expecting hasn't really kicked off. it's not making a lot of head way against the euro or the pound. it is higher against the yen but that's all related to abenomics. when do you expect that? >> when we look at the data this year, that will suggest a much stronger dollar. it's a very loose monetary policy by the fed which to a large extent was trying to off set the tight fiscal policy. looking forward with a fiscal policy with more growth friendly and as the f

before that, though, a focus is on what a fed official will say regarding current conditions of the u.s. economy, as well as on the fed's monetary policy. james bullard is scheduled to speak later on in the day. okay, that is going to do it for biz tonight. i'll leave you with a check of the markets. >>> west japan railway has unveiled a new train that will make rail travel safer for some of japan's millions of commuters. the train automatically detects and reports emergencies on the tracks. the train safety system detects dangerous operating conditions and applies the brakes when necessary. it also sends wireless signals to other trains to prevent collisions. the company developed the system after a derailment in 2005 that killed more than 100 passengers. in the accident, the emergency wireless signal equipment failed to function. >> translator: we've put every available safety measure into this train, and we will continue to try to add improvements. >> the company plans to begin running the new train in the spring along the sea of japan coast. >>> more than 50 heads of state or govern

u.s. economy smp. >> the fed are in something of a quandary. a report from the cleveland fed last night talking about what policymakers could do in terms of having boundaries and thresholds particularly with respect to inflation. and this is part of the whole transmission mechanism of messages that the fed is trying to get out there. i think what they're trying to say is they don't want the world to think that tapering is the end of the game. >> tapering is not tightening? >> correct. >> two very different things. >> but that's not how the market treated it the first time around. indeed, if you look at the price action, that's not how bond markets are taking it right now. you've got now going the bond rates back to the highs which were cited as one of the reasons that they didn't taper back in the summer. >> the question is, though, does that level -- is it warranted by the economic activity? if it is, it won't matter as much. >> absolutely. but i don't think you have enough clear cut messages to say yes, it is warranted to taper right now. but

the u.s., it is fed the fmoc will release its latest white decision.n ben bernanke will speak at a news conference. he will address of the taper talk surrounding the central bank. in europe, eu finance ministers will hold an emergency meeting in brussels. earningswe will get from a few companies that include oracle, fedex, and general mills. for more, head to bloombergbvrief -- bloombergbrief.com. >> my next guests have created a product called breath mints for your clothes. the face of reviver happens to be the daughter of the actor tom selleck. her name is hanna. she is appearing in ads featuring a variety of situations in which you might need a reviver. let's get more details from the creators of reviver. thank you for being here. let's start off, maybe you can explain to people what exactly is reviver, and where did this idea come from? >> i will actually show you. >> it looks like a handy wipe. >> it is actually reusable. you would hold up your shirt like this, have a few wipes on your hair and clothes, and you're instantly fresh. we initially inv

u.s. into a recession. in the late 1980s, the fed chief to credit for managing a wall street crash and later the asian financialrisis. they came under massive criticism for failing to spot the 2007 u.s. housing bubble that led to global financial troubles. since that crisis, the department has tried to stir recovery. interest rates are close to zero. the printed $75 billion each month, keeping money flooding into the market. the upswing has been slow in coming. the fed aims to preside over increased stability in the 101st year. >> positive economic news from the u.s. has boosted european stock markets. they sent us this report. >> the german stockmarket was certainly in a good mood. a real good christmas cheer. this is never been that high before. it is only a few points shy of the 9500 mark. the thing that was responsible for giving that pushed up to this level were remarks by christine lagarde. she is headed the international monetary fund. it is a well respected institution. she said because of the recent economic data the imf was about to push forward the economic forecast for growth in the united states. i

u.s. dollar has held no intrinsic value leading to unconventional fed policy such as quantitative easing where they're buying unprecedented amounts of securities directly from the market these are the same securities that helped lead to the crash of two thousand and eight this will be the current fed chairman bernanke is legacy and he will be regarded as one of the most significant and time will tell of course but perhaps successful shares in history. not everyone thinks this bond buying program will be better. the show in the long run however ironically this is the greatest engine. reverse income distribution ever imagine its kind of inverse robin hood policy and tell me who is benefiting from q.e. it's basically the one percent even economist of opposite agree that q.e. as for wall street the immediate beneficiaries certainly are the financial institutions that are doing interbank lending former federal reserve official introduce our cold at the greatest back door wall street bailout of all time but there's about to be a changing of the guard at the fed however president obama has nominated

u.s. and other non-european institutions through this exercise. again, if the exercise takes place and is as successful as the fed ex err sies and the u.s.k of england exerc e exercise, that should be the result. >> john, thank you for joining us. >> thank you. >>> still to come, out with the old, in with the new. the nasdaq announces changes to its benchmark 100 index. we'll look at the impact this annual rebalancing may have on the new members coming up next. hi honey, did you get the toaster cozy? yep. got all the cozies. [ grandma ] with new fedex one rate, i could fill a box and ship it for one flat rate. so i knit until it was full. you'd be crazy not to. is that nana? [ male announcer ] fedex one rate. simple, flat rate shipping with the reliability of fedex. [ male aavo: thesales event fedex one rat"sis back. drive" which means it's never been easier to get a new 2014 jetta. it gets an impressive 34 highway mpg and comes with no charge scheduled maintenance. and right now you can drive one home for practically just your signature. sign. then drive. get zero due at signing, zero down, zero deposit, and zero first month's payment o

u.s. dollar, and now that the fed made it's move. >> the committee decided starting next month to modestly reduce the pace, at which it is increasing the size of the balance sheet. >> reporter: the federal reserve is scaling back the stimulus and that helped lead to a stronger dollar. the value may rise eight to 10% next year. it's a double whammy for the bottom line of companies like caterpillar. take coca-cola which sexuactual gets the majority of the sales. those cokes sold in other countries are more expensive for consumers and the foreign profit is worth less money when coke brings it back home. it may hurt profit. mcdonalds is already feeling the impact. the company says profit in japan will drop by almost 60% in the year thanks to the dollar surge in the japanese yen. other big names with big overseas exposure, proctor and gamble andtive knee. it's not harmful to everyone. >> the immediate aftermath, the dollar strengthen which is good for domestically based companies with domestic revenues. >> reporter: the strong dollar historically created winning opportunities for certain indust

u.s. economy from collapsing. the fed has bought up trillions of dollars of u.s. government bonds to keep interest rates low and stimulate the economy. and the obama administration pushed a large stimulus program to jump-start the stalled economy. our special allies across the pond in the united kingdom have taken the opposite fiscal approach in the five years since the crisis cutting down on government spending. george osborne was the master of that austerity plan. he is the chancellor of the exchequer. he joined me here in new york. thank you, george osborne, for joining us. let me ask you to begin with you've been touting britain's growth. you've written an op-ed in the wall street journal. of course there are a lot of people who say britain's recovery has been very weak. the weakest in g-7 other than italy and there is a specific charge made, which is that it was your austerity program, especially the spending cuts, that is responsible for this weak recovery. let me read to you something larry summers said on british television. he said britain's economic poli

fed. i want to thank mr. bernanke for giving us the lowest inflation rates in u.s. history as well as preventing great depression

fed. pay $100 million to settle u.s. claims they violated sanctions programs. hello. welcome to cohen -- "countdown." i'm mark barton. .> and i'm abe-nomicm anna edws manus cranny has the details. israel lost the stanley fischer may be heading to the fed. elliott gotkine has more from tel aviv. to settle over sanctions violations and more people will be flying in the next four years. caroline hyde has the latest numbers from the international airline transport association. plus, the russian race to become the next market for online video. ryan chilcote has more on the content wars. >> bringing you some big interviews today on bloomberg television. the ceo of viacom international media net work joins "the pulse." you don't want to miss that at 930 a.m. london time. >> pleasantly but here from the international air transport association chief executive, tony tyler, joining bloomberg at 10:30 a.m. gone public in the ipo priced at $20 per share $2.35 billion. what are investors getting? >> real estate and a darn good franchise. that's how you wrap it up. arehis valuation,

fed to alter its row graham. >> the new beige book does not contain any major revelations on the u.s. economy but it could bolster the view that the economy is gaining traction and could affect policymakers decisions on whether or not to scale back their asset purchases. from the fed's 12 districts, early october to mid november, that includes the 16-day government shutdown. economic activity continued to expand at a modest to moderate pace. manufacturing activity continues to expand in most districts. reports on retail spending were deeper into the beige book, seven out of 12 strips reported modest growth. tourism is affected in some districts. on manufacturing, the report says it continues to expanded most districts with gains noted in motor vehicle and technology industries. many expressed optimism about near-term growth prospects. there is also an upbeat assessment of consumer spending. looking forward to the holiday season, retailers reported being hopeful and cautious. they were reported as moderate to strong. on the key question, what is going on in the labor market? the beige b

u.s. growth and front end yields. will start to fight back, will it not? the fedhtening, the ecb having to do more and the same with the bank of japan. >> i think that boosts the arguments even more. if you have a scenario where the u.s. does start to recover next year and tapering does come in, the ecb is increasingly frustrated with the high level of rates in the euro zone. we think not only that they cut rates, but we have a very bold call that they do quantitative easing next year. >> how? >> there are quite a few options. the key point we would make is that you going to see bond yields in the u.s. and the eurozone move in opposite directions. that would have a powerful impact on the dollar to the downside. >> a lot of people are talking about this. it is the legality, do you have to buy bonds in every single country? when are you expecting expecting around the summer or just after the summer. the key point we would make is that they are missing their inflation guidelines. this is their price stability target. it is not happening. we talk about legality. we wo

u.s. theme. the time for tapering has arrived. the feden its first step towards unwinding its record stimulus program. joining us now to discuss what happens next is our chief economist bill, back in the summer, we were all freaked out. since then, the fed has communicated, and it has finally sunk in. when he pulled the trigger on the taper, the market reaction was positive. >> very much so. from may to october, was will we, will we? the only thing that everybody knew is that tapering was not tightening. be.as as clear as he could i think it was a brilliant statement, a brilliant move. i was figuring 15%. as you said, we have to start sometime. last night was the best time to start because the simple fact now we have a 10 day holiday, so we can really see what is happening. the market reaction has been what everybody expected. positive for equities. the dollar slightly improved. we are seeing a continuing hit with commodity markets. even the market was looking for this -- how will it affect emerging markets? and that is what we will have

u.s. growth because of three things, the fed tapering, the communication being very well received.r two, the jobs are consistently declining. number three, the budget, no impasse, no shutdown. you have shanghai compass it -- composite braking declines today. rising. keepwell your eyes on china mobile and china unicom and china telecom. this after the apple story with china mobile today. china mobile shares rising 1.5%. china mobile accounts for -- watch out for those shares in the u.s. open. the biggest supplier to walmart, shopping is a great big part of christmas. shares are largely lower. volumes are very low. japan today is shut for the emperor's birthday. we have market volumes low because of the u.s. story again. tomorrow is a half day in china and hong kong. one of the best-performing stocks on this monday morning is because of apple. >> those markets there in china getting underway, the main concern of investors today is this deepening cash shortage. david is here with the latest. >> it is those interbank lending rates, whatever you want to call it. we are just getting unde

u.s. yields going up to 3.25%. the fedill lower the threshold and cut the excess deposit rate, but that will not be quite enough to comfort the market. that will be the key for all global markets next year. >> michael, stay with us. his thoughts on the pound and the euro and on bond markets. ♪ michael, director of research. for up for me the outlook fixed income markets within the eurozone and the euro in 2014. >> fixed income markets are a tale of two. they will not rise as much as treasury yields. small looking for a increase, two percent. bond yields are the ultimate safe haven. if you think that anything could go wrong in europe -- >> could we see a blowout and yields? the periphery bond markets? >> in the first couple of months, it will be driven by european specific events. a widening of yields driven by the feds and driven by the global fame. we have seen spain and italy perform extremely well. inple of had a very good run the 17 months or so since august of 2012. not too much of a spread against treasuries. i think