u.s. treasury secretary jack lew issues a warning to congress, saying the u.s. could run out of cash to pay its bills by mid-october if they don't raise the debt ceiling. >>> all right, warm welcome to you. i am back. we kick off with the latest, probably the most important sentiment indicator in germany, the ifo business climate has risen. i'll tell you what it's risen to in a second, 107.5, a little higher than the forecast of 107. the consensus was for the current conditions index, 112. so, current conditions 112. the expectations component 103.3 in august versus the reuters consensus of 103, so a little bit broader. ifo has no revisions to the july indices. let's get a breakdown on this. on the phone from munich, an expert at the ifo institute, helped to compile this story. doctor, good to speak to you. it's been a while. thanks for joining us this morning. what's the key takeaway from what this survey says about the state of the german economy? >> the strongest increase at this month in the manufacturing industry, and here particularly in the investment goo

u.s. treasury to show us the power they have over interest rates this back up that we've seen recently in long term rates in my view is nothing but a ruse and it's nothing but the fed trying to instill in a bunch of people who've been hoodwinked for a long long time that we still have markets the reality is we don't have markets and you got to remember the words coined by chris powell the treasury secretary of ghana back about six years ago at a conference in washington when he stated we no longer have markets we only have interventions this is true in the interest rate market this is true in the gold market this is true in the equity market these things are all played like they're like instruments like a herd and the control that these people have the central banking community acting in cahoots with the u.s. treasury it's absolutely phenomenal and it's incredible the you know i have a background being in the instruments because i traded the missa to shelly for eleven years the f. are a zoo and the interest rate swaps i understand these instruments were pioneered in toronto i was in the m

u.s. treasury it's absolutely phenomenal and it's incredible the you know i have a background being in the instruments because i traded the missa to surely for eleven years the f. are a zoo and the interest rate swaps i understand the need these instruments were pioneered in toronto i was in the market when they were pioneered and i was also in in the in the market because you see the original pioneers of these instruments were american banks in toronto and i and i watched in the late eighty's and. early ninety's as these instruments in the books that were in tronto don't messiah with american banks and drawn out how they all got migrated back to new york the reason they got migrated back to new york is the people in new york realize the power that they could have over the interest rate curve if they had these things at their disposal you know i mean might my background history tells me that this is exactly what's going on i watched it happen from an institutional perspective when i was a broker of these these products so i mean what they're doing let me jump in here for a second so sure j

u.s. treasury for holding the debt. dennis: right. although let us point out the u.s. ill by far the lowest risk acid you combine of any government bonds anywhere around the world. the one eyed man is king in the kingdom of the blind. dennis: -- >> remember that dave hamilton steady from quito. its 700 trillion. the rest of the world knows we cannot pay and off. dennis: all right. you are depressing me. but will do is rappee right now. thank you very much for being with us. have a great weekend. okay. still to come, not just the government spying on you. everyday household items are doing it. find out which ones next. ♪ dennis: very afraid. backers are coming after you and your dishwasher. ♪ dennis: cisco calls it the internet of everything. more products than ever before linking up to the internet, we're talking security alarms and a power mears, refrigerators, even dishwashers. they're is a dark side. joining me now, adam levin, chairman of identity theft. thank you for being with us. we appreciate it. i remember years ago in the early 90's we did an interview with th

u.s. treasuries has surged sixty six percent over the past three months max and at the end of the july the federal reserve at one point nine eight trillion in u.s. treasuries that's about just over half of their three point six trillion dollars balance sheet now so guggenheim partners points out max that our estimate shows that the spike in bond yields since the first quarter this year has caused the mark to market loss of one hundred ninety two billion dollars on the fed's holding assets equivalent to approximately all of the unrealized gains that the fed had accumulated since it began to implement quantitative easing in late two thousand and eight although in keeping with their own accounting principles the fed does not record mark to market losses a continued increase in bond yields would incur actual losses should the government decide to sell assets that they would agree actual losses. two points or number. one the debt being held by the central banks is down on exponential growth patterns of the moon the interest cost on that debt is down depending on which corrupt country you're tal

u.s. treasury imposed sanctions on the islamic school, saying it trained recruits and facilitated funding for al qaeda, the taliban, and others accused by indian intelligence of masterminding the 2008 mumbai attacks. the sanctions include a ban on u.s. citizens having anything to do with the schools. the pakistani interior ministry and the army declined to comment , but the school principal said the accusations are totally false. >> the treasury said the shake controlled the school, which was founded as a mosque more than two decades ago -- the chic -- the sheikh controlled the school . he rejected claims against him, saying he was just a regular prayer leader in the mosque who left months ago. >> the united states accuses the school, which radicalize his children, of conducting insurgent activities and training them to become bomb manufacturers and suicide bombers. the nation's collective for the school were given to terrorist troops, such as the taliban, which uses the money to fund the ongoing violence in afghanistan, the treasury said, but students said teachers focused on religion an

u.s. treasury for holding the debt. dennis: right. although let us point out the u.s. by far the lowest risk acid you combine of any government bonds anywhere around the world. the one eyed man is king in the kingdom of the blind. dennis: -- >> remember that dave hamilton steady from quito. its00 trillion. the rest of the world knows we cannot pay and off. dennis: all right. you are depressing me. but will do is rappee right now. thank you very much for being with us. have a great weekend. okay. still to come, not just the government spying on you. everyday household items are doing it. find out which ones next. ♪ this man is about to be the millionth customer. would you mind if i go ahead of you? instead we had someone go ahead of him and win fiy thousand dollars. congratulations you are our one millionth customer. nobody likes to miss out. that's why ally treats all their customers the same. whether you're the first or the millionth. if your bank doesn't think you'repecial anymore, you need an ally. ally bank. your money needs an ally. dennis: very afraid. backers are

u.s. treasury for holding the debt. dennis: right. although let us point out the u.s. ar the lest risk acid you combine of any government bonds anywhere around the world. the one eyed man is king in the kingdom of the blind. dennis: -- >> remember that dave hamilton steady from quito. its 700 trillion. the rest of the world knows we cannot pay and off. dennis: all right. you are depressing me. but will do is rappee right now. thank you very much for being with us. have a great weekend. okay. still to come, not just the governme spying on you. everyday household items are doing it. find out which ones next. ♪ right now, 7 years of music is being streamed. a quarter million tweeters are tweeting. and 900 million dollars are changing hands online. that's why hp built a new kind of server. one that's 80% smaller. uses 89% less energy. and costs 77% less. 's cald hp moonshot. and it's giving the internet the room it needs to grow. this&is gonna be big. hp moonshot. it's time to build a better enterprise. together. dennis:ery afraid. backers are coming after you and your dish

u.s. treasuries will drain capital from emerging markets as investors return to the u.s. bond market in pursuit of higher interest rates. they bore the brunt of the selling. they will rely on cheap dollars to fund current account deficits. the indian rupee hit fresh new lows. jonathan garner looks at equities and offers a ray of hope for investors in china. he says china is better positioned than its peers. garner says so far, so good for the mainland economy. he says they are actually moving forward across a range of sectors. the oil major reports a rise in second-quarter earnings that beat forecasts, improved profitability at refining natural gas import businesses and offset lower international crude prices. petro china shares trading down less than one percent. andrew price said a bid for hong kong's biggest supermarket chain is a move that analysts say will help the conglomerate expand market share through a quality brand. shares on wednesday fell three percent and is now trading up .25%. >> they say money does not grow on trees, but money could be falling from the sk

u.s. treasuries. >> paul, interesting.d here clients are doing a long ftse 250 and shorting the ftse 100 on the basis the ftse 100 is weaker global growth and uk growth is looking stronger at the moment. what do you think of that? >> that has been a very fair bet up until now. ftse 250 up around 20%. ftse 100 about half of that. ftse 100 is energy and mining related. q-1 and q-2 very weak sectors on a relative basis and absolute basis. but just in the course of the last three to four weeks i have sensed that those sectors are hitting towards the top end of relative strength. you've got to be a little bit careful with that trade going forward. i suspect the gap is going to particularly close. the numbers we've seen today in the service sector i think just told you we all focus on that top line gdp number, it is giving you a sense of what is going on within government spending which clearly is under pressure. the private sector has been picking up the pace. this number is giving you more sense of that today. >> so that can c

u.s. treasury for holding the debt. dennis: right. although let us point out the u.s. l by far the lowest risk acid you combine of any government bonds anywhere around the world. the one eyed man is king in the kingdom of the blind. dennis: -- >> remember that dave hamilton steady from quito. its 700 trillion. the rest of the world knows we cannot pay and off. dennis: all right. you are depressing me. but will do is rappee right now. thank you very much for being with us. have a great weekend. okay. still to come, not just the government spying on you. everyday household items are doing it. find out which ones next. ♪ you make a great team. it's been that way since e day you met. but your erectile dyunction - itld be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you cabe more confint in your ability to be ready. and the same cialis is the ly daily ed tablet approved to treat ed and symptoms of bph like needi to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask

u.s. treasury on more than $4 billion 6789 4 bil. >>> jp morgan and glen core are the latest companies to be accused of artificially inflating aluminum prices. it was filed on behalf of master screens, a direct purchaser and individual who is described as a buyer of beverages sold in aluminum cans. >>> according to a report yesterday from the center for disease control the obesity rate among low-income preschooler social securis is falling. it went from $74 billion in 199 8 to $147 billion. this study could have important economic implications. >> reporter: the centers for disease control tracked the height and weight of nearly 12 million low income 2 to 4-year-olds. between 2008 and 2011 obesity rates stayed the same or decreased in 40 states and territories and only went up slightly in three. for weight management experts like dr. scott cohan it is good news. he struggled with weight as a child. he was 25 pounds over eight at age 11. >> anything we can do to push forward on addressing obesity and related chronic diseases is going to be not only a health triumph but also have large econo

u.s. treasury yields may hurt the economy and corporate earnings. the dow jones industrial average fell half a percent to close at 15,010 and the tech heavy nasdaq fell around 0.4% to 3359. 3589. now we go to ramin mellegard standing by at the tokyo stock exchange. are we seeing further losses at the open? >> good morning to you, ai. yes. rising interest rates and as well as the currency modes you were talking to continue to play into shares here. let's look at the opening levels for august 20th here in tokyo. both indexes starting in the negative down 0.75% for the nikkei so investors now really having digested earnings in the u.s. and japan as well as key data here in japan, such as the trade data we had on monday, the next thing to really watch out for to move markets is going to really be the fomc minutes from the july 30th to 31st meeting, and really to gauge what federal reserve officials are thinking about the u.s. economy. that's going to be crucial. domestically obviously here also the big question is whether abnoma abenomics is kicking in

u.s. treasuries and yield coming off.s the effect of that commentary. >> we'll talk more about that coming up. that will do it for the first hour of "the closing bell" with the dow down 50, 60 points near the lows of the session. stay tuned. much more coming now in hour number two. >>> wall street welcomed the second hour of -- along with mandy drury. we know how that works. >> i know how it works. >> dow snapping a two-day session winning streak as gains fade by the close after secretary of state kerry delivered the harsh comments on syria today. here's how we're finishing the day with the late selloff this afternoon. we're going to the lows of the session again. down 63 points on the dow. nasdaq which has been b you oyed by some of the high technology stocks dipping

u.s. treasury secretary jack lew is urging congress to raise the borrowing limit as soon as possible. lew is calling on lawmakers to take immediate action before the nation hits the debt ceiling. the government reached its borrowing limit of about $16.7 trillion in may. it's legally prohibited from taking on more debt. government officials have used emergency measures to avoid defaulting on obligations. they've seen called on pension funds for federal workers. the differences between democrats and republicans have stymied debate on raising the debt ceiling. the u.s. faced a similar scenario in 2011 when the government came close to defaulting on its debt, that led to a downgrade of its credit rating. treasury secretary lew is warning a default would deal a heavy blow to financial markets around the world. >>> more headlines in business the next hour. i'll leave you with a check on the markets. >>> the united nations secretary-general has urged japanese leaders to do some soul searching. ban ki-moon says their understanding of history is straining ties with south korea and china. pow h

u.s. treasury bonds, so economist navarro says they have us over a barrel.on't like our behavior, they can dump all their investments. it's known as the financial nuclear option. >> what would that do? that would cause interest rates to spike, mortgage rates to spike. inflation to spike, the dollar to go through the floor, the stock market to go into chaos. we would be in deep, deep, deep trouble. >> the nuclear option, financial nuclear option, is china's pulling all its money out of u.s. treasuries. >> philosophically, everything's possible in this world, but that's so unlikely that, you know, if we function on that thing, we just may as well go home and not doing anything. >> mr. gao isn't going home. since this story first aired, his fund has invested in real estate in the united states and in iconic american companies like coca-cola and apple. by the end of 2010, he was managing $300 billion invested around the world and then asked the chinese government for more. [ticking] when we return, the world's leaders come together in a very small village. >> th

u.s. treasuries, but, of course, the risk aversion has -- the u.s. treasuries yielding 2.47%. 2.67% the yield toward the end of play yesterday. gilts, looking ahead to mark carney's speech today. italy, 4.44%. another t-bill auction head of btps on thursday. as far as commodities are concerned, we mentioned brent and nymex, where we stand, nymex up to 110 through 109 for first time in a year and a half during the session yesterday. brent up to nearly $116 a barrel. and gold also pushing higher, up to 14.25. copper is the commodity that is falling as we heard from concerns about chinese demand could be wearing on prices until 2016. quick look at foreign exchange markets for you. euro dollar 133.78. dollar yen, 97 handle, not a lot of movement around there. plenty of focus on the rupee. now down to 68 against the dollar. so let's get more on that. we'll update you on the rest of asia. sixuan will join us out of singapore. first, over to sonya who is at cnbc in mumbai. >> -- all time low that we have seen on the rupee, 68 to the dollar like you mentioned

u.s. treasurys. there is the long bond, the 30-year. was ups the price was up a full point and you're looking at the yield which is down six basis points. when you buy treasurys it pushes the yields lower of course. looking at 3.7% yield on the 30-year note. oil is up. gold is up markedly all on fears and concerns emanating from what the u.s. reaction will be to the syria conflict. adam: we're watching it here at fbn. lori: also according to fox business correspondent charlie gasparino a shake-up in president obama's economic team is likely. charlie is here with exclusive details. >> gene sperling. lori: we talked to had him many times on the show. >> smart guy. from the clinton administration. economic advisor bureaucrats, spanned various jobs and administrations key play another clinton and obama white house. leaving job as head of council economic advisors. lori: what bank or hedge fund. >> i always fet this wrong. economic council. this was created during clinton years. i think it was 1993. bob reuben is one of his associates i gues

u.s. treasury secretary jacob lieu will be in mountain view to discuss the state of the u.s.conomy, expected to address how the obama administration plans to accelerate growth, create more jobs and strengthen the middle class. he will be speaking at 1:00 this afternoon onshore line drive. >>> for your news before the bell we turn things over to courtney reagan live at cnbc world headquarters. good morning, courtney. >> good morning to you. futures are higher after stocks fell wednesday after minutes from last month's fed meeting showed the central bank is ready to start pulling back on stimulus measures last year. they won't say when it will happen. we'll get data on new filings for unemployment claims. the dow dropped 105 yesterday closing below 15,000 to 14,897. that is a two-month low. the dow has had its worst six-day losing streak since may of last year. the nasdaq also slipped 13 points to 3,599. u.p.s. will start cutting health benefits for working spouses and thousands of employees next year partly due to higher costs from obama care. the change impacts 15,000 spouses

u.s. treasury? former treasury head larry summers is on board. so is the former head of visa and google purchased a stake in lending club as well giving the young company a valuation of $1.5 billion. now at its heart, lending club is simply a dating service for money. a person in need posts his or her request and you can lend that person cash. you can cover some small part of the loan, as little as $25 or fund the entire thing. nearly $3 million changes hands on lending club every single day. >> co-founder and ceo of lending club came up with the idea when he noticed his credit card charged him 18% interest for debt and bank paid 1% for his deposits. so i don't think we can start this without explaining how it works. i have some money. i go on and can find a loan i think is interesting and contribute the money, right? >> you diversify your investment -- >> take my money and split it up. >> across fractions of loans. if you make a $10,000 investment, most likely you're going to invest in 400 different loans and take $25 fraction of each -- >> we'r

u.s. treasury and i.r.s. will accept joint tax returns from legally married same sex couples. it does not matter whether the state they live in recognizes their marriage. it's the broadest federal action since the supreme court decision in june to strike down the 1996 defense of marriage act. >> things are quiet on the radar, we're heading into a long weekend. it looks quiet to start, but that will be changing. one or two showers or storms over the great lakes moving from west to east, pop up showers in the southeast, showers and storms in the southwest. those are the things we're watching now. looks quiet in between, but that will be changing. it's heating up again, excessive heat warnings and advisories over iowa. there's an excessive heat warning, the temperatures climbing to 100 degrees again with showers and storms developing to the north. these were watches they're yesterday, but by this time today, things are quiet, the watches expired. could see more watches, severe thunderstorm watches develop in north dakota again, so another round of severe weather and heat. tempera

u.s. treasuries rose with the yield on the ten-year to 2.72%. >>> while mean, gold jumped sharply up $27 to $1,420 an ounce. oil also surged. crude gained almost 4% to $109 a barrel, the second biggest gain of the year. >>> well, the rising tensions between the u.s. and syria, which has already rattled markets around the world is also raising questions tonight about what is at stake to the u.s. economy and our nation's reputation. if u.s. military intervenes in that nation's civil war. michelle cabrera has more on why syria matters. >> reporter: stocks fell again as the second member of the administration made clear military intervention in syria is increasingly likely. secretary of defense chuck hagel today on an overseas trip. >> i think it's pretty clear that chemical weapons were use against people in syria. i think that the intelligence will conclude that it wasn't the rebels who used it, the deeper we get into this, it seems to me it's clear and clear that the government of syria was responsible. >> reporter: those words, the clearest signal yet perhaps the u.s. will fulfill the promi

u.s. treasury. people buying homes are enjoying interest rates on loans that are near record lows. however, fees attached to mortgages are creeping up. according to bankrate.com, mortgage origination fees and closing costs on average rose 6% to $2,400 since last year. the top 5 states with the highest closing costs are hawaii, which is nearly $3,000, followed by alaska, south carolina, california and new mexico. holden lewis of bankrate says with mortgage rates so low, fees are the new source of competition between lenders. "mortgage lenders didn't have to compete that much on price. i mean, they were competing on price but, they could kind of ask for whatever they wanted to get. i think that might be toughening, things might be getting a little more competitive." that was holden lewis of bankrate.com. home prices in june grew at the fastest pace in 7 years, according to corelogic. many banks are loosening up on lending. the federal reserve says that demand for home and business loans has increased. for the second quarter in a row, many banks have eased loan restrictions, including

u.s. treasury itself it's two largest creditor nations just forty two billion dollars of u.s. debt and this would be the most in years thank goodness for the fed to a backstop unless we take the tapering comments to heart don't worry bernanke is bluffing. just being over them behave of unpaid and then just a minute then bob talks with alan brown about the web of debt we had and here is what's in your prime interest.

u.s. treasury. >>> meantime, starbucks ceo howard schultz says the coffee chain won't follow other companiescutting worker health insurance. the companies with more than 50 employees have to provide coverage for those who work more than 30 hours a week. >>> mcdonald's is adding chicken wings to the menu for a limited time on september 9th. wings are one of the fastest growing categories with sales topping $8 billion last year. that's a lot of wings, betty. >> i'm so excited. i love winks. given this schedule, hopefully they offer it for breakfast though it's probably not recommended. thank you, jackie. >>> straight ahead, richard lui and all your sports highlights. . so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. ♪ now

u.s. treasury and irs as issued new regulations that allow legally married gay couples to be treated as married and file joint federal income tax returns no matter what state they currently live in. >>> well, the city of detroit could be getting much needed financing. the emergency manager for the bankrupt city issued requests for propels totaling $350 million in loans, so-called debt tore in possession financing. most of the money would be used to pay merrill lynch to end a complicated swaps deal related to bonds it once issueed to finance pensions for retired city workers. it's very complicated. the rest will pay bills to keep the city services operating. >>> a lot of detroit area workers getting a shot in the arm today. ford began making the top-selling fusion sedan in the u.s. for the first time ever. it's 1,400 new jobs to a plant in michigan just outside the motor city. the ceo moved production there from a factory in mexico saying the new plant will turn out more carps and help the company meet rising demand. >> well, we don't have a lot of capacity left but pretty much sized to what wil

u.s. treasury coming up perry and profiles produce pharma and their pimping of the oxycontin they got them in a trouble and she explains how their multibillion dollar question how is leading to more deaths in suburbia than i do in the always outspoken mark levine told. a favorite mortgage giants fannie and freddie small to get into some of the nitty gritty of greenspan and bernanke used manipulation of interest rates to. zachary what happened that day i don't know but a woman got killed. piers later is when i got arrested for. for a crime i did not do. we have numerous cases where police officers lie about polygraph results. innocent people to confess to police officers don't beat people anymore i mean it just doesn't happen really. in the course of interrogation why because there's been this is like meant no because the psychological techniques are more effective in obtaining confessions than physical abuse they were off taking they could get what they wanted they can say what they wanted and there was no evidence of what they did or what they said. he'd. put it under a bushel marginalise