u.s. treasury data showed belgium holding three hundred forty one point two billion dollars in u.s. treasuries and that's caused a lot of head scratching i mean who is the ultimate holder of these bonds but i want to get your opinion what's your whole take on the brouhaha over tiny little belgian popping up as a major holder of u.s. treasury bonds and yet this should be raising more than a few eyebrows you know i to me it's too much of a convenient coincidence that jest when the federal reserve started to taper or a brand new buyer emerged out of belgium to pick up the slack you know it makes sense to me i was saying for a while that the fed wasn't going to taper because they knew that if they tapered rates would spike and the economy in the markets would go down and then they would have to and taper and they would lose a lot of their credibility so maybe the fed only tapered because they knew somebody was out there to cover their back to buy all the bonds that they weren't buying to keep rates from rising so maybe the fed is working with the. c.b. or some other entity and they're pa

u.s. treasury holdings drive up u.s. interest rates you know sink the u.s. stock market which is in bubble territory right now freeze u.s. assets in russia suspend party so there's a lot that both sides can do the question for both sides is do you want to go there i mean is that a smart policy is that the best way to handle this or are there other channels knows the u.s. can escalate but russia can retaliate that's why i don't think the u.s. was beyond a certain point is they understand this do you think it's fair that russia is being punished or at least the attempt to punish russia economically is certainly being built up. well you know you might ask the crimea it's in the craniums of a think it's fair what's going on look there's a struggle going on and i think putin vladimir putin shown himself not only a very good chess player but also a good judo practitioner in terms of martial arts he was aggressive in ukraine in crimea some of these sanctions were put on the middle east they were fairly tame he's backed off you know the true true style down the tens

u.s. treasuries. think it might be more informative at times to actually take a look at the spread in absolute terms and it probably doesn't look quite as dramatic in that sense. the only thing i like about xlu as a yield trade is it tends to be inflation adjusted. which the conventional u.s. treasury would not be. i'm kind of with dan in the sense i'm not really enthusiastic about trying to essentially short rates when they're already at epic lows which is i think is one of the things you're doing but you do have that inflation component but we do have something else. in the low rate environment, low volatility, we can still make a bed with carter without actually taking too much risk. and that's what i'm inclined to do. >> walk us through the trade, mike. >> i'm just going to simply buy the december 43 calls. you can pay $1 for those. they're long dated, not decaying rapidly. if carter is right, you're obviously going to have a lot of potential upside and if he's wrong, you're not risking very much.

u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment. deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that yen vide men will go along with q.e. that's yet to be seen it is significant that he allowed druggy to go forward with the statement that the e.c.b. was investigating the use of the asset backed securities market as a means of engaging in asset purchases so there's no doubt that drug use to achieve some some progress within the governing council. now elsewhere in europe we've got some serious internal conflict i'm talking about the ukraine of course now ukraine's economy it's a mess but they were able to get an i.m.f. bailout i

u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that young vide men will go along with q b. that's yet to be seen it is significant that he allowed druggy to go forward with the statement that the c b was investigating the use of the asset backed securities market as a means of engaging in asset purchases so there's no doubt that drug users achieve some some progress within the governing council now elsewhere in europe we've got some serious internal conflicts i'm talking about the ukraine of course now ukraine's economy it's a mess but they were able to get an i.m.f. bailout

u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited and controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might. move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that young vide men will go along with q.e. that's yet to be seen it is significant that he allowed druggy to go forward with the statement that the c b was investigating the use of the asset backed securities market as a means of engaging in asset purchases so there's no doubt that drives you to achieve some some progress within the governing council now elsewhere in europe we've got some serious internal conflicts i'm talking about the ukraine of course now ukraine's economy it's a mess but they were able to get an i.m.f. ba

u.s. treasury securities and mortgage backed. curity there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited and controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that yen vide men will go along with q b. that's yet to be seen it is significant that he allowed druggy to go forward with the statement that the c b was investigating the use of the asset backed securities market as a means of engaging in asset purchases so there's no doubt that drug use to achieve some progress within the governing council now elsewhere in europe we've got some serious internal conflicts i'm talking about the ukraine of course now ukraine's economy it's a mess but they were able to get an i.m.f. bailout in o

has been one factor moderating the u.s. 10-year treasury yield. decline in net issuance of u.s. treasuries, that has also been a dampener in terms of the 10-year u.s. treasury yield. it has given emerging markets and asia and japan a bit of time with adjustments. given that, we thing asia and japan should do better in this coming quarter. view, aake a 12-month valuations -- valuations are enormously cheap. in this part of the world, we are looking at a p/e ratio divided by the index growth of about 1. whereas in the developed markets, u.s., japan, europe and the we are looking at a ratio of 2. so clearly value is on the side of asia. >> the decline in yields in the 10-year has been one of the big surprises this year. at the same time, we have also seen money come out of the bond market into equities, which should be supported with bond prices. . >> absolutely. at this stage, we see some money rotating, from bonds into equities. it is a rotation that one would ask that to continue at stage of the cycle. i would have no disagreement with that. that is likely to continue. overall, w

u.s. treasury securities and mortgage backed securities there is no version of the u.s. treasury market in europe so the e.c.b. the options are more limited and controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment. deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that young vide men will go along with q b. that's yet to be seen it is significant that he allowed druggy to go forward with the statement that the c b was investigating the use of the asset backed securities market as a means of engaging in asset purchases so there's no doubt that drug use to achieve some some progress within the governing council now elsewhere in europe we've got some serious internal conflicts i'm talking about the ukraine of course now ukraine's economy it's a mess but they were able to get an i.m.f. bailout i

u.s. treasury kashkari were neck and neck. but kashkari took the lead and will face brown in the election. >> i just got a call, i'm really pleased and honor he called. i just got a call from mitt romney who called and governor romney was very encouraged by the early returns. >> i'm going to campaign hard. i take nothing for granted. and i just have to say that california has come a long way. >> reporter: now to the mayor's race in san jose. santa clara county supervisor dave cortese took an early lead and hung on it to. he was joined by his supporters last night. not only celebrating his victory but his 58th birthday. he was expected to be a front runner. he was backed by the labor unions and supported by the police union. public safety was by far a tough issue in this race. he will face sam liccardo. liccardo was in good spirits at his election party held downtown at the black beard tavern. he is confident he can keep it going to win the election in november. reporting live in san jose janine de la vega ktvu channel 2 news.

u.s. treasuries declined for a third straight month according to a government report released today. held one point $26 trillion in u.s. debt as of april which was down $8.9 million from the prior month for the treasury department said china is the largest foreign holder of u.s. treasuries followed closely by japan. that does it for today on "in the loop." tomorrow, tom shapiro joins me to discuss how he is looking to estateto boost his real portfolio in brazil tomorrow at 8:00 a.m. eastern. watch out for news that might come out at any moment about the theens bid foralsom, french gas turbine maker competing with general electric. we will stay tuned for any news out from france. ♪ let's get you caught up with the markets at 56 minutes past the hour. u.s. equities opened lower and come back a little bit but it is a subdued day. iraq and the escalating tension is the concern. industrial production was better than expected. are losses for the week on the s&p 500 and will not do much today either. in our rack, i get that, but this is not a correction, this is a pause if anything? >> the u

u.s. treasury secretary release a report saying that american businesses need to deal with climate change as a business threat. ai uchida joins us from the business desk. what are japanese companies doing to deal with the threat? >> we are seeing an example from a leading car maker. managers at toyota want to take the lead in what they see as a promising market for fuel-cell cars. they will sell the vehicles for $70,000 each by next march. fuel-cell cars run on electricity from the chemical reaction of hydrogen and oxygen. they started leasing fuel-cell vehicles 12 years ago for $12,000 a month. so far only a few customers, like government offices have been using the lease service due to the high cost. toyota has reduced the number of expensive parts that go into the cars to make them more affordable while maintaining quality. it's now getting ready to mass produce the vehicles. they'll sell for about $70,000 each. other automakers are getting ready to enter the market. honda will launch fuel-cell cars next year and nissan will sell them three years from now. but analysts say boostingales

u.s. treasury official, pulled ahead, spending $2 million of his own money and winning the endorsement of some big-named republicans across the country. >>> democratic state senator alex padilla will face pete peterson in november for the race for secretary of state. he edged out peterson's in yesterday's primary by a little more than 13,000 votes. suspended state senator leland yee came in third despite dropping out of the race following his arrest. but it was too late to get his name removed from the ballot. >>> dave cortez and sam lick kaur da will -- liccarda will face off in november. cortese feels pension reform for police officers went too far. he also feels the city needs a leader who will bring people together. we spoke to cortese and liccardo this morning. >> it's been a toxic, combattic atmosphere here -- combative atmosphere here. that will change under me. >> i think the people in the city want leadership that will ensure that we have a sustainable future not one that underfunds our liabilities because we weren't responsible enough to pay our debts. >>> voters in san francisc

u.s. treasury. >>> and in detroit today, two very different agendas for the gm meeting.shareholders were asked to vote about improving new directors and incentive plans for top executives. but outside, protesters were demanding gm executives be held accountable for defective ignition switches linked to at least 13 deaths and the recalls of millionings of cars, phil lebeau has more. >> reporter: less than a week after ceo mary barra announced the recall of the vehicles from the faulty ignition switches, general motors held its annual shareholder meeting here in detroit. it was a relatively uneventful meeting. there was no update on the recall investigation. and gm ceo mary barra says they're still in the process of figuring out the compensation program. being developed by attorney ken fineberg. she has had the chance to talk with employees at gm to change the corporate culture at gm, she is optimistic they're on the way to doing that. >> our message is clear, as i said two clear things we need to do as we come out of this, do everything to help everybody harmed and i'm do

u.s. treasury official neel kashkari who won a very tight race on the republican side. >>> new details in the boston marathon bombing. prosecutors say suspect dzhokhar tsaranev told his mother in an e-mail days after the explosions, that he expected to die. they say he wrote that he would see her in the afterlife. tsaranev has pleaded not guilty ahead of his trial scheduled for november. >>> a new york man now faces hate crime charges in connection with the assault on donald sterling's former girlfriend. dominick diorio was taken into custody yesterday and faces several other charges, as well. v. stiviano has told police that diorio and another man used racial slurs as they attacked her outside a new york hotel sunday night. >>> security is tight in central beijing this morning on the 25th anniversary of the tiananmen protest. scores of police and paramilitary troops patrolling the vast plaza in the city's heart and surrounding streets, as the government tries to head off any demonstrations. access to social media has also been restricted or disrupted. hundreds of unarmed protesters and o

u.s. treasury official paul craig roberts believes that washington is forcing europe to jeopardize its energyinterests question why it is really up to europe it's not up to watch if the europeans say well look we don't want to take those who risk with our lines just sort of washington to beat up on russia in the pipeline will continue the problem with the existing one german through ukraine news ukraine. through russia. trying to supply europe. through ukraine. share it with gas. its gas but my point is wash them doesn't share anything any make you do hurt russia it wipes out their hours they could care less well the use now seeking to diversify energy supplies to reduce its reliance on russian gas about a third of the natural gas it can seem to comes from russia geopolitics as well as growth in fuel prices they are forcing europe though to turn to coal which is a relatively cheap source of energy so let's take a look at some of the details these coal consumption has been steadily rising as we can see here that's compared to the use of natural gas and also despite environmental campaigns to r

u.s. treasury official paul craig roberts believes that europe is jeopardizing its energy interest due to pressure from washington. question the pipeline is really up to europe it's not up to watch it's the europeans say well look we don't want to take this risk with our energy supply lines just so washington can beat up on russia then the pipeline will continue the problem with the existing pipeline joining through ukraine is ukraine is broke and russia faces the prospect that trying to supply europe can route a pipeline through ukraine would result and share it with gas ukraine which can pay its gas but my point is washington doesn't share anything like you do hurt russia it wipes out their allies they could care less well the east there were allies on russia for about a third of its natural gas consumption and did a bit to lessen that share it appears as though brussels is being forced to take a step back and turn to an old school source of energy namely coal amid rising fuel prices the coal consumption has been steadily rising as compared to the use of natural gas and it's also despit

u.s. treasury official paul craig roberts who believes europe is jeopardizing its energy interests to the pressure from washington. question tipline it is really up to you're not up to watch if the europeans say well look we don't want to take this risk with our energy supply it's just sort of washington can beat up on rush in the pipeline will continue problems in the existing pipeline training through ukraine is ukraine it's a russian face he's. trying to supply europe to the pipeline through ukraine. and share gas ukraine which care it's gas but my point is washington doesn't share anything they can't do hurt russia it wipes out their allies they could care less. early is still relies on russia for about a third of its natural gas consumption and in a bridge to lessen that shape it appears as though brussels is being forced to take a step back and to turn an old school source of energy coal amid rising fuel prices ease coal consumption has been steadily rising compared to the use of natural gas that's despite massive environmental campaigns reduce carbon emissions and cut back on highl

u.s. treasury official paul craig roberts believes that europe is jeopardizing its energy interests due to pressure from washington should live is really up to europe it's not up to watch it's the europeans say well look we don't want to take those risks with our lines just so washington can beat up on russia in the pipeline will continue problem with the existing pipeline dreaming through ukraine news ukraine through russia faces. trying to supply europe. through ukraine. and gas. its gas but my point is washed and doesn't share anything any make you do or russia it wipes out their our lives they could care less. well the e.u. still relies on russia for about a third of its natural gas consumption and did a bit to lessen that share it appears as though brussels is being forced to take a step back and turn to an old school source of energy namely coal amid rising fuel prices that use coal consumption has been steadily rising compared to the use of natural gas and that is despite massive environmental campaigns to reduce carbon emissions and cut back on highly polluting fuels even germany k

u.s. treasury official paul craig roberts he believes washington is forcing europe to jeopardize its own energy interests the. the pipeline is really up to europe it's not up to watch it's the europeans say well look we don't want to take those who risk with our energy supply lines just sort of washington can beat up on russia in the pipeline will continue problem with the existing pipeline churning through ukraine news ukraine. through russia faces the prospect that trying to supply europe through the pipeline through ukraine would result in shatt gas ukraine which can't pay its gas bill my point is washington doesn't care anything make you do hurt russia it wipes out their allies they could care less so the e.u. is now seeking to diversify energy supplies to reduce its reliance on russian gas about a third of the natural gas it consumes comes straight from russia but geopolitics as well as growth in fuel prices a forcing europe to tons of coal which is a relatively cheap source of energy though it's very very let's bring out some of the details here not international the e.u. as coal consumpt

u.s. treasury securities and mortgage backed securities there is no version of the us treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to. through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that yen vide men will go along with q b. that's yet to be seen it is significant that he allowed druggy to go forward with the statement that the e.c. b. was investigating the use of the asset backed securities market as a means of engaging in asset purchases so there's no doubt that drug users achieve some some progress within the governing council now elsewhere in europe we've got some serious internal conflicts i'm talking about the ukraine of course now ukraine's economy it's a mess but they were able to get an i.m.f. bailout in order to stabilize thi

u.s. treasury securities and mortgage backed securities there is no version of the us treasury market in europe so the e.c.b. the options are more limited in controversial they could intervene in the sovereign bond market and i think that may still be too difficult politically to get through the governing council in the next several months or as mario draghi hinted they might move forward. with the establishment of a deeper asset backed security market in which the c.b. would intervene in order to push down private lending rates ben do you think that younes invited men will go along with q b. that's yet to be seen it is significant that he allowed druggy to go forward with the statement that the c b was investigating the use of the asset backed securities market as a means of engaging in asset purchases so there's no doubt that drug users achieve some some progress within the governing council now elsewhere in europe we've got some serious internal conflicts i'm talking about the ukraine of course now ukraine's economy it's a mess but they were able to get an i.m.f. bailout in order to stabiliz

u.s. treasury market which is the largest in the world is trading at thirty percent less volume than last year even though it's at all time highs the yield is. the lowest in two hundred forty years and they also said the shift reflects an unintended consequence wrought by central banks which have dropped interest rates close to zero and implemented policies such as buying debt to restore demand and economies crippled by the financial crisis inefficiencies in the hundred trillion dollar market for bonds may make investors more vulnerable to losses when yields rise from historic lows so as you see it like anywhere you look there's just so much rigging and so much government intervention that they are like distorted like a godzilla like freak creature that the whole markets have the participants the real participants have to turn to things like derivatives they're creating derivatives and italy there's been an eight fold increase in driven is traded on the italian bond market which is the third largest in the world because there are no real bonds they only have to create a derivative of thos

u.s. treasury operations manual but boeing defend its airplane saying it is important that any recommendation concerning changes to their plan design be reviewed with great care and with due consideration for portland unintended consequence of a change >> : they disagree local system contributed to the crash >> : the church itself apart on certain tonight there contacted us about the possibility of her neighborhood park being turned into something else something she is not happy about. store with a justine and that is to nice story >> : great place for having peace and quiet. monday park in santa clara green grass playground's a place parents love. this is what makes the committee >> : she does not want to see a change in >> : trend bread from becoming a separate part which will be only for small group of people. city is looking at new locations for more soccer fields this after became known the 49er homely by stadium being built right next to popular fields with game day and traffic with proposed soccer fields the grounds disappeared >> : i do not think that answer is extending sector park i

u.s. treasuries increase interest rates pop our stock market bubble our housing bubble and even more so to. our dirty level if you will use hackers to shut down the new york stock exchange so this can get ugly i think the u.s. understands that so you're back to the old cold war paradigm of mutual assured destruction nobody wants to escalate too far because they'll be blowback on them so the weapons are put they're actually more potent when you when the u.s. sends them at a place like iran which really can't fight back very well but russia is very capable of fighting back what part to russia and china to take down the u.s. financial system. well then you have to distinguish between capabilities on the one hand and intentions on the other very little doubt that the capabilities are there but by the way the u.s. is not. you know passive in the. the u.s. has the same capabilities and and that again goes back to this mutual assured destruction idea i mentioned the other analogy we used in the cold war was you know two scorpions in a bottle so one scorpion stings the other the victim is going to

u.s. treasury official paul craig roberts believes europe is jeopardizing its energy interest due to pressure from washington. question the pipeline is really up to your it's not up to wash it's the europeans say well look we don't want to take this risk with our energy supply it's just sort of washington can beat up on russia in the pipeline will continue the problem with the existing pipeline churning through ukraine as ukraine. and russia faces the prospect that trying to supply europe through the pipeline through ukraine would result and chat with gas. which care its gas but my point is washington doesn't share anything they could do to hurt russia if it wipes out their allies they could care less now the e.u. still relies on about a third of its natural gas consumption and in a bid to lessen it appears those of brussels is being forced to take a step back and turn to an old school source of energy coal amid rising fuel prices they ease coal consumption has been steadily rising compared to the use of natural gas that's despite a massive environmental campaigns to reduce carbon emissions a

u.s. treasuries increase interest rates pop our stock market bubble our housing bubble and even more so to. our dirty level if you will use hackers to shut down the new york stock exchange so this can get ugly i think the u.s. understands that so you're back to the old cold war paradigm of mutual assured destruction nobody wants to escalate too far because they'll be blowback on them so the weapons are pro they're actually more potent when the u.s. and some at a place like iran which really can't fight back very well but russia's very capable of fighting back what threat to russia and china to take down the u.s. financial system. well then you have to distinguish between capabilities on the one hand and intentions on the other very little doubt that the capabilities are there but by the way the u.s. is not. you know passed. when they see us as the same capabilities and and that again goes back to this mutual assured destruction idea i mentioned the other analogy we used in the cold war was you know two scorpions in a bottle so one scorpion stings the other the victim is going to die but ha

u.s. treasury yields down at 1.4% range and stocks in the u.s.nvestors find value? let's get back out to the goldman sachs macro conference in london. jeff has been speaking to others there. jeff? >> we are catching one the economists to get a view of where to go with the ecb with the jobs number at the end of the week and to really get a sense of how this house sees growth moving from here. but it's not only goldman sachs speakers at this conference. and i'm pleased to have the opportunity to speak with the founder of a private equity business, abraaj group. as you look around the world at the moment, which are you most excited about from the private equity standpoint? >> by definition of the markets in which we operate, we call the global equity market, simply because two-thirds of the global growth in the coming decade is going to come from there. that's where most of the excitement is going to get generated as well. >> some of it has been from the wrong reasons. you have a coup in thailand, a new government in egypt that everybody's a little

u.s. treasury. >> that sounds good. except fanny and freddie made money until they made money.insurance they made money until they didn't. now they are 20 billion in the red. >> this bank is conservatively managed it's long lost rate at this point is lis than one-quarter of one percent. >> in the private sector it would fund it. if these are good loans. >> the private sector after the financial crisis is now in a situation where it is subject to new regulatory constraints they don't have the liquidity and what liquid ity they have is fa more expensive because they have capital reserves they were required to provide. at the same time we are in a situation where the markets are exploding. we have billions of new people moving into the middle class and there are tremendous opportunities. >> where there is opportunity a private bank would fund it. >> one of the members of export finance is high in liquidity and row in return. the bottom line is commercial banks will take a slice but they are not going to be heavily investing in it because they have to make more of a return to share

u.s. treasury official and supported by mitt romney and others.d he is trying to appeal to moderates and put a lot of the money in the race and appeal to cross over democrats. he is facing off against a republican. tea party backed republican tim donly and it is a virtual dead heat as they fight for the the second spot. donly is a gun's right advocate and on proviation for carrying a pistol on a flight. and another race watched nationally is the 52nd congressional district down in san diego. a popular candidate that is an openly gay republican and going at both sides of the party. he is challenging democrat scott peters and a close race there and people are watching that one throughout the year. scott ports taking on. and remember women's right advocate. sanda fluke thought about running for congress here as henry waxman is retiring. she changed her mind. she is running for the state district up against eight candidates. seven democrats and one who decided not to commit. that case is watched as she runs for that seat. money, as you imagine is a bi

u.s. treasury $100 million annually in uncollected revenue and it department just the amateurs.an sports leagues in on the game as well. amazingly, the national football league, the national hockey league and pga tour are all nonprofits. and, thus, have tax exempt status. the pga tour generated nearly $1 billion in revenue in 2011. the nhl reported record earnings of $3.1 billion in 2011ened athe nfl made $9.2 billion in revenue in 2013, according to "forbes." that makes it the most lucrative league in the entire world. the nfl's commissioner, roger goodell, took home $44 million in 2012. why in the world are these leagues considered nonprofits? in september, oklahoma's republican senator tom coburn asked just that question. coburn introduced the pro sports act which would strip professional sports leagues of their federal tax exemption if they earn more than $10 million. the nfl obviously makes much more than that, but to be clear, the organization does point out that only the league office is tax exempt. the 32 member team dos pay taxes on their income. the chaps that coburn's