u.s. federal reserve chair drawn palls. interest rates could rise at a slower pace at the same time the fed announces that some u.s. corporate debt has reached what it calls risky levels also the british government on the bills its estimates of the cost of drugs it doesn't look pretty a heart breaks it could shrink the u.k. economy by almost ten percent the bank of england also says a disorderly divorce would be catastrophic also coming up in delhi children learn how to run their own bank to protect tomos street kids from thieves and too big to slaughter winemakers escape becoming a tasty part of australia thriving beef industry. i'm krista of corporate good to have you with us the u.s. federal reserve a sounding the alarm it says historically high corporate debt and trade tensions are threatening the financial stability of the u.s. financial system and could cause asset prices to plummet and his first report on the stability of the u.s. financial system the fed acknowledges that regulation brought in after the two thousand

u.s. federal reserve surprises no one keeping rates on hold with a hike expected expected play to eat at the dia. and schools of mysterious wooden towel was pop up all over hungry journalists blame corruption and gary and i want to. this is your business update on how to hunt for a glad you could join me well german industrial powerhouse siemens posted a mixed bag of results on thursday net profit for the fiscal year remained just over six billion euros that's a slight increase in the previous year the company's had some setbacks recently in securing new orders vying for a multi-billion euro order to build a power grid in iraq a job the company might use to us can best the g.e. off to the white house and divvy is also problems in saudi arabia siemens was very late to counsel their attendance at the recent riyadh investment for him most companies who dropped out off to the murder of a saudi journalist kushal name on the home scene and saw the shares drop twenty percent over the course of this year. and earlier today my colleague. spoke with siemens c.e.o. a joke asr about a couple of particul

u.s. federal reserve concludes two days of meetings we are now joined by adam ash of adam s. trading to discuss it and more adam welcome it's great to be with you first time we're together in person so thanks is great i love it it's so let's talk about first of all this the two day meeting what did this bed say what was their statement are we still on track for another quarter point increase of december percent chance that we get the quarter point rate increase and december the only two things that stood out to me a little bit were that business investments are down and the fed still says three rate hikes next year while the market's only factoring in two so that's what stood out to me so they could potentially at least use eighty percent but they could potentially wait until q one to do it if something happens i mean there is this question about whether or not you know growth is peaking investment is peaking and anything could happen and they said they said that job growth is still good everything still looks good at say that eighty percent i'm probably your word for it beca

u.s. federal reserve which seeks to weaken bank rules designed to protect the financial sector the proposed rules would reduce capital only we could have the requirements for more than a dozen big bank lenders here's just a financial policy advocate at public citizen bartlett no thank you so much for coming back for shit thank you so tell us about this proposal is it is a bad as i think it might be yes it's troubling the context for this is a law that congress passed last year called the crêpe zero bill it was s. twenty one fifty five and it caused regulations on banks between fifty and two hundred fifty billion dollars to be relaxed the federal reserve is implementing that but most worrying is that they are going beyond the congressional mandate as you said they're reducing liquidity requirements for banks that are even larger than that was liquidity requirements this is the cash or cash equivalents that banks have to hold in case there is a downturn and that they need to meet their own bills banks themselves borrow money and this is being reduced not only for this slice of banks in the tw

u.s. federal reserve has it on its list of troubled banks the international monetary fund has called it the most dangerous bank in the world two years ago it was fined fourteen billion dollars in the united states for the unicity misselling of. mortgage backed securities bad mortgage backed securities i should say and the fine that it could potentially face now could run into the medians staff who were found guilty could go to prison the share price is already plunged the reputational damage could be huge this week despite all that it's still here it's still germany biggest lender its demise has been predicted before so this just looks like another beginning of the end for that let's put it this way often banks to five practice they're involved in bad practice they are find they pay the fines and then they carry all knots that business model they've been doing that for decades the difference is this time around deutsche bank is coming off the back of three years of losses it cannot make up the money. fast enough and this cumulative effect is why it could be the critical moment for deutsche

u.s. federal reserve sounding the alarm over growing hazards to the financial system. ristoph: the federal reserve haissued a stark warning about the outlook for the u.s. financial system. it says historically high corporate debt and trade tensions could cause asset prices to plplummet. in his first report on the stability of the u.s. financial system, the fed acknowledges that regulation brought in after the 2008 financial crisis has made the banking system more resilient, but it says increasingly aggressive risk-taking could lead to more vulnerabilities. for more on this let's bring in our financial correspondent jens korte in new york. jens, fed chair jerome powell just finished speaking at the new york economic club. tell us more about what he had to say. jens: well, overall he is quite upbeat when heooks at the current economic situations in the united states. there are no signs of a recession on the horizon yet. and at the same time, also, inflation does not seem to be too high at all. and that all sounds pretty well, but maybe just one comment to the debt situati

u.s. economy that that's you need to inflation tendencies and that's the reason why the federal reserve has no other choice but to keep. a route through keep increasing rates but overall yes higher interest rates and could be a drag for u.s. growth and so now that your own poll sounded a little less aggressive we saw quite a reaction here on wall street deborah chips are up by more than four hundred points against court in new york thank you. the british government says that leaving the european union with no deal would cause the economy to shrink by more than nine percent over a fifteen year period the report which considered a range of post-tax of models suggests that even with prime minister to resign may's deal britain will end up poorer the block the now says comes a fortnight before british m.p.'s vote on miss may's divorce deal with the e.u. there's no question that bracks it will hit britain's economy that's the result of an analysis commissioned by the british government even so prime minister theresa may insists she's done all she can that we see behind the analysis that we have p

u.s. federal reserve, which has kept the benchmark lending rate unchanged on thursday. e move highlighting the continued strong performance of the u.s. economy, but also pointing to a slowdown in business investment. that is according to the latest statement out from the fed. it also noted that solid job gains, falling unemployment, and growing household spending, but they also signal there may be a further rate rise before the end of the year. german carmakers have agreed to spend up to 3000 euros on measures of their own choosing to get older, dirtier diesel cars o off the road. that is according to the german transport minister. the 3000 figure is excited to cover hardware retrofits, which they say they are willing to carry out. rival bmw says it will not be retrofit. it will offer instead of to 3000 euros on trade in incentives. the news comes a week after vw customers filed a class often lawsuit, seeking full value for their diesels. cannabis stocks in the u.s. surged on the news that attorney general jeff sessions has stepped down. he was a major foe of marijuana l

u.s. federal reserve which is kept the benchmark lending rate unchanged on thursday the move highlighting the continued strong performance of the u.s. economy but also pointing to a slowdown in business investment that's according to the latest statement out from the fed it also noted that solid job gains for unemployment and growing household spending but they also signaled that there may be a further rate rise before the end of the year. german call makers have agreed to spend up to three thousand euros on measures of their own choosing to get old a dirty diesel cars off the road that is according to german transport minister and that is scheuer the three thousand figure is expected to cover hardware retrofits which folks fog and and dime say they are willing to carry out rival b.m.w. though says it will not do retrofits it will offer instead up to three thousand euros on trade in incentives with the news comes a week off to v.w. owners filed a class action lawsuit seeking full value for that diesels. kind of a stocks in the u.s. surged on the news that attorney general jeff sessions had

u.s. federal reserve kept the benchmark lending rate unchanged on thursday the move highlighted the continued strong performance of the economy but also pointed to a slowdown in business investment the fed noted solid job gains falling unemployment and growing household spending in the u.s. but they also signaled that there may be further rate rises before the year's end. after the u.s. midterms there might be trouble in store for the larger banks u.s. operation the new head of financial services committee in congress will be democrat maxine waters known adversarial president trump and she now has a subpoena power on her radar screen is which was a key lender to the president when he was a businessman waters can now look into documents and bank statements that could possibly point to collusion with russia democrats have not yet decided whether they will subpoena. or. of the president's finances to look into. a. corner of the front of stock exchange is that going to become a problem for the larger what are we you hearing there in frankfurt. it is quite likely to become more of a problem for th

u.s. federal reserve today said it is already cooperating in this latest investigation. we thought that we had provided to the authorities all the relevant information regarding pun in the papers and of course we will now cooperate closely with the prosecutors here in frankfurt on mine and in germany as it is in also in our interest to clarify the facts as soon as possible. are joining me at the big table now is our business acre pissed off. right there potentially criminal business and some analysts have been saying that this today could end up being a mortal blow to georgia bacon how much trouble is the bank in tonight well. these are yet again one might say series of locations i mean we heard in the report that allegedly there's a bank staff involved in putting up an entity in the british virgin islands and on tax haven thereby handling the business of three hundred nine hundred clients to the tune of three hundred million euros so that's the accusation and the money being handled allegedly being connected to the crime or having been acquired illegally now here's the

u.s. federal reserve, you have to have a better idea of whether the policy is set on a country with data notbal data dependent. be, theelieve could effects of rising global , lessl, not just the u.s. hawkish when it comes to that. the risk is that they don't. betweent we're seeing china and the u.s. gets worse. areentral banks in asia navigating. i want to show this chart. that is looking less so in recent months because of this speculation about the dovish fed. are you seeing more of a , itnger case being created may not be as influenced by what is going on with the fed. >> the tariffs, will benefit from low -- lower oil prices. the point of view from a more benign environment. hasil for example responded, mexico has specific issues as well or even turkey for example. it makes investors nervous. the rising cost of capital brings volatility for future earnings. if we don't get a more benign 2019.ic, you can check out the chart. featured on bloomberg tv. this is bloomberg. ♪ >> i'm in hong kong. a quick check it quick check of the headlines. -- the luster journal says officials have reached f

u.s. federal reserve they just concluded meeting a little bit ago i'll see if we can get a few stock tips from adam to all that coming up but first we have a few headlines let's go. home prices and property values in the united kingdom are decreasing at a faster rate than any time since september of two thousand and twelve the show. harpist declines are in areas of london and the south east of england that a climb was worse than expert analysts had predicted since twenty sixteen the british housing market has been slowing and appears compounded by uncertainty over . brazil's far right aleck to higher bolus and their old elect president has seen and set back even more before the presidential inauguration on january first brazil has been plagued by deficit problems and mr balsam narrow has strongly opposed the pay raise for the judiciary but the brazilian senate has approved the raise which also serves as a benchmark for other public employee cost of living increases he just your increase alone will add four billion reale that's brazilian reale their currency of course that's about one bill

u.s. federal reserve seeks to weaken keep capital and liquidity rules in the financial sector bartlett nailer is a financial policy advocate at public citizen is back in the house plus google employees around the world have walked out in a solidarity protest over the treatment of women by company executives alison hell of it has been following the story will bring us up to date and later to the big picture here in our hear america holland cook joins us to answer is a vesting question is print media passe all that directly ahead but first we have some headlines that's putting. the impact of u.s. tariffs on china and other nations has been somewhat muted by the increasingly strong us dollar the dollar is increased in value by seventy eight percent on average versus all major u.s. trading partners at the same time while the trump administration has chosen not to designate china as a currency manipulator the value of the chinese currency the yuan has been dropping all year which further weakens the u.s. tariffs impact earlier this year in march the dollar fetched six point two you won today the d

u.s. federal reserve warning of growing hazards to the financial system. at. the federal reserve has issued a stark warning about the outlook for the u.s. financial system it says historically high corporate debts and trade tensions could cause asset prices to plummet and its first report on the stability of the u.s. financial system the fed acknowledges that regulation brought in after the two thousand and eight financial crisis has made the banking system more resilient but it says increasingly aggressive risk taking could lead to more the nobility. for more on this let's bring in our financial correspondent and scored in new york fed chair jerome politest finished speaking at the new york economic club tell us more of what he had to say. well overall he is quite upbeat when you look at the current economic situation some in the united states there are no signs of recession on the horizon yet and at the same time also inflation does not seem to be too high at all and that all sounds a pretty well but maybe just one comment to the debt situation i'm in the uni

u.s. where the federal reserve kept the benchmark lending rate unchanged on thursday the move highlighted the continued strong performance of the economy but also pointed to a slowdown in business investment the fed noted solid job gains falling unemployment and growing household spending but they also signaled that there may be a further rate rise before the year's end. to russia now where growth will continue to weaken in the fourth quarter of this yeah alexei kudrin former finance minister and current head of the court of audit expects less than one percent next year the country's economy suffers from far too much state influence and the lack of private sector investment in research and innovation but there are exceptions and. calls skolkovo moscow the russian silicon valley correspondent found startups that can compete with those in the west. a few years ago under a huge new cough and a few friends founded in video now one hundred fifty employees work at the startup banks and others invest millions of euros in the company one thing hasn't changed over the years the mostly young employ

u.s. with federal reserve kept the benchmark lending rate unchanged on thursday the move highlighted the continued strong performance of the the economy but also pointed to a slowdown in business investment the fed noted solid job gains falling unemployment and growing household spending but they also signaled that there may be a future rate rise before year's end. fifteen thousand passengers are stranded at airports across argentina because of a wildcat strike or planes of state kerry are alina's argentina's are grounded as all employees take part in the walkout the airline says the strike is illegal as it wasn't warned about the action unions say the airline has not paid full salaries to stuff recently workers also want wage increases that keep pace with inflation which is running at more than forty percent state or has been in the red in recent years . growth in russia will continue to weaken in the fourth quarter of this year alex a form of finance minister and current head of the court of audit expects less than one percent next year the country's economy suffers from far too much state influ

u.s. >> i think what you can say is you definitely see more stability in the indices. it really does feature the same. maybe it will not turnaround just yet. a higher rate cut from the federal reservewe are seeing strength for the u.s. dollar. we do think that the dollar will eventually start to come off in the medium-term. there are still those headwinds from the trade narrative that are changing all the time. the fact that we have oil prices that need to stabilize as well. we think about those three variables. a little more volatility. we would still be quite favorable on em equities. we do see that u.s. dollar weakness coming through. think about that convergence and growth as the economy grows. this chart showing that the dollar trade is quite crowded right now. having a go at the markets right there. do you believe in the medium-term we could see weakness? what >> about the short-term? in the short -- what about the short-term? if there is not anything cordial that comes out of the meeting attended two presidents, it will be -- if we see what we saw of the -- youd the eurozone, it should see a short-term boost to markets. the dollar will come off of it. it will affect markets

u.s. if the federal reserve was genuinely worried, let's say the equity markets could cause balance sheetems on the corporate side, it could step back. you don't have the wage and price inflation that leads the fed's the thing we need to create unemployment to stabilize the cycle. so the fed hikes in december and as markets settle into the new year, and continues to hike maybe once or twice, than wait. rates will be with the fed thinks it should be in the long run. we'll see how it goes from there. manus: just very briefly, i wonder the probability of hikes for 2019. have we overpriced probability? i suppose that is the question. we stepped into pause. maybe the better question, is there a lower terminal rate than we possibly anticipated? kallum: that depends on how the u.s. comes out on the other side. there are two factors in the u.s. economy, lifting gdp growth. the first is the demand-side stimulus. then there's the supply-side reform. we won't know until the fiscal stimulus wears off where potential growth really is, and that will dictate where the long-term equilibrium interest rate

u.s. economy because remember so many economists at the federal reserve are stumped by why we have full employment in the u.s. and yet wages are so low and part of it is the monopsony power over labor that all these old gaap lease across america whether it's in telecoms chicken farms in the midwest hollywood industry every industry is basically controlled by two to three meat major corporations in the pharmaceutical industry at c.v.s. and the other one rite aid or whatever but here's a headline for what twenty twenty what we can look for. they're pleading the hill dot com is pleading with progressive progressive can tackle the harm corporate consolidation is doing to our economy there's no exaggerating the role of power in the twenty first century economy from skyrocketing drug costs to the disparities we see today including the digital divide in the banking sector that excludes entire communities it's clear that our nation's market power problem has created an economic system that is not working for americans so part of the reason is that basically policymakers are not making new policy about ant

u.s. economy is running too hard so that could also lead to inflation that could lead the federal reserve to increase interest rates more rapidly and then if we talk about the policies of u.s. president donald trump another thread old so is the trade dispute was china just today the economic advisor larry kudlow was saying in an interview that he is less convinced that there will be a trade deal with china anytime soon. all of our back to you the economy fundamentals are very solid why doesn't donald trump focus more of them instead of stoking fear about immigrants as he has been doing recently. well that's right the economy is not such a big topic in the election complain and that's surprisingly because the economy is so strong that you might think this would have to be at the centerpiece facing the republican campaign but instead of that donald trump is focusing on fear mongering about his key issue migration there was this very controversial ad that was published yesterday showing thousands of migrants crossing in a caravan crossing mexico right now and showing them basically as nothing

u.s. descent into plutocracy former federal reserve chairman paul volcker said in an interview published tuesday that the united states is developing into a plutocracy and suffering from a crisis in good governance volcker ninety one told the new york times that he feared that the skill and reputation of the u.s. government has been corroded by self interested elites shaping law through lobbying and campaign donations he said the country was quote and a hell of a mass in every direction ran away in goal paul volcker as if he'd just woke up after decades of the drift toward plutocracy where paul walker interest rates went negative the economy gone plutocratic for going on for quite some time paul volcker is right it's just you know a little bit too too little. you know he's a former federal reserve chairman who actually understood what the role of the central bank was to raise interest rates if there's too much speculation under grace penney ruto only changed the mandate of the federal reserve bank and said oh our job is is to keep the party going and then after there's a crash try to mop it up b

federal reserve moving interest rates higher. this puts pressure on the emerging market currencies around the world and pressure on the stock markets, as well. it's a moving game here. and the u.sping the pressure on china and the federal reserve, which keeps investors very nervous with the values we've seen on wall street for the last 24 months. >> john, there are big political risks that are driving markets. take us through those. >> i think we're downplaying a story that you're glued on. i'm saying downplaying the financial risks because of brexit and what is happening on downing street. or what's not happening on downing street because we don't have clarity. is not okay for the u.k. markets. this could send a shock wave through the heart of europe, i'm thinking of france and germany. the second one we should consider here, this will play out in the early trading, is italy. we talk about the political challenges of italy. but the $2 trillion risk for the rest of europe. you can have two columns going lower? 2019, the u.k. and italy. i talked about the china trade risk. the other one here is the risk of oil. donald trump when he gave the support to the crown prince of saudi a

u.s. economy and the path of federal reserve -- federal reserve rate increases?eil: it is a crusoe question. the money market -- it is a crucial question. the money market sense that there is a tightening taking place. speech,ichard clarida's and what he indicates is that the fed is state independent. there is a focus on expectations and market measures have gone down because of the slump in oil prices. it has taken the 10 year treasury yield lower. markets are looking for a december rate hike, they are only discounting one rate hike in 2019. a one and done. the current rate projections have three hikes a year. i am inclined to go with the sensitiveterest rate sectors, which are autos and housing. they are already rolling over. we have seen comments from jerome powell and richard clarida about the prospect of slower global growth. they may be putting together a move towards toning down the hockish -- hawkish rhetoric. the also have to put rundown in their balance sheet on hold. in other words, a suspension of quantitative climbing. that may be one way of easing p