donald trump's nominee takes over at the us federal reserve.ill monetary policy had in a new direction under his leadership? and to boldly go where no mayor has gone before: in indonesian city official looks to star trek to lead his city into the future. good morning asia, hello world. it is a monday. glad you could join us for another exciting addition of asia business report. i am exciting addition of asia business report. iam rico exciting addition of asia business report. i am rico hizon. exciting addition of asia business report. iam rico hizon. we exciting addition of asia business report. i am rico hizon. we start off with the us central bank, and jerome powell, you see on your screens, jerome powell, you see on your screens, is said to be sworn in as the new chair of the federal reserve , the new chair of the federal reserve, replacing janet yellen. by nominating him, donald trump river wey from tradition, as most us presidents have chosen to appoint the same chair in their first year of power. the bbc has more from new york. donald tru

above that story, a picture of janet yellen, the first ever woman to head the us federal reserve.inishes her turn this weekend, what a brilliantjob. everybody who i have spoken to has agreed with that. a history maker on the front page of the ft and more women on the front page of the telegraph and other papers. is ongoing battle within the bbc about pay equality, carrie gracie in front ofa pay equality, carrie gracie in front of a parliamentary select committee on wednesday, as was tony hall, the director general of the bbc. this resonates more widely in society, companies are having to be reporting on the gender pay gap among their employees. i think she raises an interesting point in her testimony, which is all about, washing in development? this is a 30 year professional, right? ithink development? this is a 30 year professional, right? i think a lot of women will recognise that in terms of skills perhaps not being valued as equally and perhaps the men not realising that they are getting paid more by theirfemale collea g u es getting paid more by theirfemale colleagues are doi

president trump's pick for the job, jerome powell, is the new chair of the us federal reserve. why is is such an importantjob, and why should it matter to you and i? well, the federal reserve makes decisions, about interest rates, keeps inflation in check, and can step in and protect the economy, like it did in the global financial crisis. but also, whatjerome powell does can have far—reaching effects beyond american shores. we are raising interest rates now because the economy is strong. and if we wait too long, the economy could overheat. we'd have to raise rates. the best way to sustained recovery, i believe, is to head on this path of gradual rate increases. raising rates here in the us could mean that investors could prefer to put their money here, taking it away from other parts of the world. america is considered a safer investment destination than, say, an emerging economy. after the 2008 global financial crisis, which generated chaos here on on wall street, the federal reserve introduced strict rules for banks to ensure the safety of the market. there has been talk of e

all eyes will be onjerome powell, the new head of the us federal reserve. hat might he say that good english klister seasons on interest rates and where the us economy is headed ? interest rates and where the us economy is headed? i will see you in a moment. let's bring you more detail on that explosion that happened in leicester. two people are in a critical condition after an explosion four others were described as "walking wounded." emergency crews have spent the night searching through the remains of the building and dozens of nearby homes have been evacuated. andy moore reports. the immediate aftermath of an explosion that destroyed a shop and the flat above it. local people helped paramedics deal with casualties. two of them were in critical condition, four others describe as walking wounded. we heard an explosion and felt a tremendous shock through the house. it felt like it was going to bring the ceiling down. ijust dial the police 909, and they asked that service i wanted and i said everything you can send. police say they do not know what caused th

so traders are expecting the us federal reserve, the central bank bear, to increase interest rates atand 30 pace than they expected initially. that means the cost of borrowing goes up and things could come more expensive and money is buff pulled out of the stock market. it is a delicate balance. it is like investors wait, they are excelling, that moment has not happened yet. many are probably selling as a result of the fact that they are up by so much. we have seen such a sharp rise in us stocks out here in asia as well. many people think let me get out now and enjoy some of that money. go on a holiday, maybe. another reason why people are selling is because other people are selling. a herd mentality? exactly. there is a sense that maybe i should get out of the market could things could get worse. but many traders i have spoken to with a long—term ‘s perspective on us equities and asian equities they say if you have a horizon of rival ten years these blips in the market should be seen as healthy correction, especially in the us market, many were concerned it was quite frothy and overv

and so the question is whether this will force the us federal reserve and the european central bank to iraq stimulus. —— crisis era stimulus. it feels like a pivotal moment, the cheap money is going and thatis moment, the cheap money is going and that is what is freaking the market is out. another one, i don't think we have seen the end of this, but i'iow we have seen the end of this, but now to brexit. we did not start with it, so maybe that was a novelty, time to make a choice on trade, barnier tells britain. this is michel barnier who had a meeting with both david davis and a brief meeting with theresa may. time to make a choice, surely no surprise but this is about the transition period and what we're going to have afterwards, uk is trying to ditch the old format of talks which took place last year where david davis would go over to brussels and then they would have a week of talks and thena they would have a week of talks and then a press conference in which michel barnier would say disparaging things about the british approach to brexit, so they are trying to change that, and ins

it's been a week sincejerome powell took over as chairman of the us federal reserve — a week in whichlobal stock markets have plunged. here's why — investors are worried that, because the us economy is doing better than expected, the fed will probably raise the cost of borrowing faster. the bank of england has also given support to the idea that rates globally will rise. this end to so—called ‘cheap money‘ will push up borrowing costs for companies and individuals, which can hurt corporate profits and curb economic activity. also worrying investors is a government budget proposal announced by us lawmakers which raises spending caps and could fan inflation. with me is lena komileva, chief economist at (g+) economics. welcome, good morning. what is your view, was last week a blip or is this a sign of things to come? hopefully the worst of the sell—off is behind us. let's not forget we have seen more than a 10% decline in major stock ti—cats the start of the year which is restarted the year for every investor in the world, every world, every pensioner, every saver, anyone who has stocks

us. federal reserve officials have been very hands-off about this. i sat there wondering why -- we tweeted this out. take a listen to this. in previous market corrections, macro shocks triggered the risk off episodes. andcentral banks came in save the economy by delaying those times by easing. this time, the risk is inflation. before, they were responding to inflationary risks. now, the market is reacting to higher inflation, the central bank put is not there, is it? greg: the central banks want higher inflation. the war they have been waging is deflation. think the inflation story quite frankly is overblown at this point. we are removing from this regime of deflation to slightly more inflation. i don't see it as a 1970's type of scenario. jon: i remember during this time last year that this was the trade this time last year. why did we get the reflationary enthusiasm? greg: the difference last year versus this year is last year, there was hope. investors were expecting taxes and other types of things. now, they are actually seeing it. it's a differe

federal reserve. the market began to get used to hikes in the us. wage numbers are frothy.t people are figuring out. that is what is considered a correction. thank you for that. he will be back to look at the stories in the media today. we will get our teeth into those later. and i will speak to another market watcher for another view from asia later on. we are looking ahead to the european day which starts in a few hours. it's been an eventful 2a hours in the maldives, where the president, abdulla yameen, has declared a state or emergency, giving sweeping powers to the security forces. police have arrested the former head of state, maumoon abdul gayoom and security forces have been sent into the supreme court, where two judges have also been detained. the opposition has described the president's actions as a purge. joining me now is our south asia correspondent, justin rowlatt. just talk us through what has been going on in the last 2a hours. just talk us through what has been going on in the last 24 hours. well, we have to go further back to understand what has been happe

us. federal reserve officials have been very hands-off about this. r such uncertainty. sat there wondering why, and take a listen to this. i think it is really interesting. in previous market corrections, macro shocks triggered the risk off episodes. they were deflationary and stored growth. so the central banks came in and save the economy by delaying those hikes and by easing. this time, the risk is higher inflation. so if you think about it, central banks cannot lift markets. before, they were responding to deflationary risks. now, it doesn't really matter what happens to the market , because the market is reacting to higher inflation -- the central bank put is not there, is it? greg: no, and i think the central banks want higher inflation ultimately. the war they have been waging is deflation. that is a much scarier proposition for a central bank than modestly more inflation, so i think the inflation story quite frankly, is overblown at this point. we are moving from this regime of deflation to slightly more inflation. i don't see it as a 1970's type of scenario. jo

and if there's a rise in inflation, the us federal reserve will hike interest rates, which the market wall street plunge isn't a good look for donald trump, who has repeatedly touted its successes during his 13 months as president. the white house responded to the current sell—off, saying there's always concern when the market loses any values, but they're confident in the economy's fundamentals. the malaise has spread to asian markets. in australia, stocks were down almost 2.6% at the open. the benchmark asx 200 has already lost almost $41 billion us, and the trading day is only halfway done. the nikkei index ofjapan dived more than 5% in early trading. it is coming off a 26—year high and was expected to correct itself, but quite this steeply. while in hong kong, stocks have plunged almost 3% at the opening. how the markets will fare as the trading day continues, though, remains to be seen. katie silver, bbc news. let's cross live to shanghai and speak to robin brant. this is an odd one, isn't it, because the data that triggered this was actually good news for the us economy. the dow

more than ten percent into correction territory while be taken into consideration when the us federal reserve meets to consider raising interest rates in march we'll keep an eye on it. and gold has gained closing up two point one percent yesterday to one thousand three hundred thirty five dollars in trading at comix the commodity exchange in new york that's the largest percentage gain in gold in almost a year. p n b that's a put in job national bank one of india's largest finance. has uncovered more than one point eight billion dollars in fraudulently pavements made to a select group of account holders by a single branch in mumbai in reaction investors pulled out of the bank's stock which dropped that tanked it actually more than ten percent reducing the value of pm be from seven point six billion dollars to five point five billion dollars and capitalization the incident is being investigated although it appears to have had some contagion effect as other shares of indian banks such as the bank of india and the state bank of india also lost eight and four point six percent respectively. here's

another big market story, the head of the us federal reserve, officially her last day in office.ce, the uk economy has been doing very well. donald trump has been taking credit. if you had to share the awards, what would you say? donald trump has been in for only 12 months, but she has headed the federal reserve for a lot longer. what has driven things is quantitative easing. she has been an architect of that and if you go back to the lehmans brothers crisis, it would be fair to say the second half of this bid she has done a good job steadying the markets. arguably the job growth we have seen is down to her policies. donald trump is claiming credit but probably hasn't contributed much. choppy waters all the time, we are back on that deadline for the us budget. will they be thrown back into chaos? the markets, note the conciliation in the state of the nation. the senseisit in the state of the nation. the sense is it will be easier to get a solution this time around. thank you. still to come. this week, we've seen a drop in user numbers for facebook, and the price of bitcoin has ye

testified to tepid measures to address concerns but later there was even more trouble now the us federal reserve has waited taking an action which one commenter said is putting the fear of god in the board and bank board rooms here discusses eric reimer a former f.c.c. official and policy commentator eric thank you for being being with us first of all tell us what you make of their entire sort of nefarious actions give our viewers what wells fargo has done over the last three years to put them in this problematic circumstance and it's a very multifaceted problem basically it back in september two thousand and sixteen . the o.c.c. and the boss and it's in the attorney revealed that wells fargo for about a decade had been encouraging or at least facilitating its a sales reps to create millions of fake accounts primarily checking accounts have accounts credit cards for their customers that were not authorized by their customers and essentially this allows wells fargo to reach sales quotas to drive increased fees and to basically bolster their bottom line at the expense of their customers that also

testified to tepid measures to address concerns but later there was even more trouble now the us federal reserve has waited taking an action which one commenter said is putting the fear of god in the board and bank board rooms here discusses eric reimer a former f.c.c. official and policy commentator eric thank you for being being with us first of all tell us what you make of their entire sort of nefarious actions give our viewers what wells fargo has done over the last three years to put them in this problematic circumstance and it's a very multifaceted problem basically it back in september two thousand and sixteen . the o.c.c. and the boss and his city attorney revealed that wells fargo for about a decade had been encouraging or at least facilitating it's a sales for ups to create millions of fake accounts primarily checking accounts have accounts credit cards for their customers that were not authorized by their customers and essentially this allows wells fargo to reach sales quotas to drive increased fees and to basically bolster their bottom line at the expense of their customers that also

trading commission testified before congress plus wells fargo is still in the news says the us federal reserve places were up restrictions on the bank will go. into that with sarah grammer now let's check out some of the stories topping today's headlines. on friday the dow jones industrial average plummeted six hundred sixty six points that's not an ominous number then yesterday making friday seem like child's play we witnessed the largest point drop ever ever amongst the dow industrials a drop of over eleven hundred points for those in the u.s. watching and wondering in real time why the boom bust team was it sure seemed like panic selling as the market had dropped from five hundred points down to sixteen hundred points in seemingly no time at all it has been and may continue to be a monumental market moment in history r.t. correspondent trinity chavez has more from wall street mark there's a lot of frayed nerves here on wall street as the global bluntschli volatility in its wake yesterday we had this single biggest one day drop on the dow jones on friday the dow opened up twenty five thousan

federal reserve support of the economy. following the financial crisis. undermine the federal reserves, focus on unemployment and eliminate the independence of the broken appropriation process. the majority using the federal reserve as a piggy bank tro pay for the cost of legislation. -- will be on the floor today these republican efforts to undermine the fed diminish the ability to support american workers if we face another crisis. chairman powell i look forward to your views and the path to sustaining the economic process set in motion during the obama administration. i yield back the balance of my time. >> the chair recognizes the gentleman from ken tutucky mr. barr. >> welcome. sins the 2007 and 2009 financial crisis, the sheet has exploited from under 1 trillion tlars to more than $4.5 trillion. clearly, whether you believe this government intervention into our -- like housing, stocks bonds treasury, that was the intention. fortunately, the fed began to unwind these and i hope they stick to the plan enabling a free market environment. like the reseent -- without question this is attributable to the fact that no fed chairman has inherited the task you have before you. the job of unnen win

swifter pace than expected just months ago the move appears to be in accord with where the us federal reserve is headed this year. and justin trudeau the young canadian prime minister has been in san francisco promoting canada as a tech and making pitches to tech companies including a direct plea to amazon's jeff bezos to locate the new m is on ed borders dubbed h q two in canada last month and was on narrowed the possible locations of a q two to twenty including toronto which is the only city outside of the us on the list. and we now go to toronto that city and alex mahela that should talk about the economics of the olympics and and alex before we get started any thoughts on that story about the prime minister pitching amazon headquarters to day is also in your city there well it's a big deal for toronto look we're talking about a five billion dollar investment fifty thousand jobs and this is in the states where about ten percent of your population so when you look at the number of fifty thousand jobs is a lot of jobs and never mind the money that would be coming in so for canada that's a bi

swifter pace than expected just months ago the move appears to be in accord with where the us federal reserve is headed this year. and justin trudeau the young canadian prime minister has been in san francisco promoting canada as a tech and making pitches to tech companies including a direct plea to amazon's jeff bezos to locate the new m is on ed borders dubbed h.q. two in canada last month and was on narrowed the possible locations of h q two to twenty including toronto which is the only city outside of the u.s. on the list. and we now go to toronto that city and alex mahela that should talk about the economics of the olympics and and alex before we get started any thoughts on that story about the prime minister pitching amazon headquarters to day is also in your city there well it's a big deal for toronto look we're talking about a five billion dollar investment fifty thousand jobs and this is in the states we're about ten percent of your population so when you look at the number of fifty thousand jobs is a lot of jobs and never mind the money that would be coming in so for canada that's a

swifter pace than expected just months ago the move appears to be in accord with where the us federal reserve is headed this year. and justin trudeau the young canadian prime minister has been in san francisco promoting canada as a tech and making pitches to tech companies including a direct plea to amazon's jeff bezos to locate the new m is on ed borders dubbed h q two in canada last month and was on narrowed the possible locations of h q two to twenty including toronto which is the only city outside of the u.s. on the list. and we now go to toronto that city and alex mahela that should talk about the economics of the olympics and and alex before we get started any thoughts on that story about the prime minister pitching amazon headquarters to those in your city there. well it's a big deal for toronto look we're talking about a five billion dollar investment fifty thousand jobs and this is in the states we're about ten percent of your population so when you look at the number of fifty thousand jobs is a lot of jobs and never mind the money that would be coming in so for canada that's a big d

it's been a week sincejerome powell took over as chairman of the us federal reserve — a week in whichiver cornock, editor—in—chief of oxford business group joins me now. welcome, oliver, good morning. one week sincejerome welcome, oliver, good morning. one week since jerome powell took office, it has been a week on the market, is this the future or was that a blip? difficult to say, there is an irony that the good data that has come out of the us, the davos speech by christine lagarde about the rebel growth has precipitated this decline in global markets and so this decline in global markets and so it is because of the slow ten year period and after the great depression 2008, the leeman brothers crisis that of all lead to this new normal which was very low interest rates, a lot of central banks issuing cash and printing money really to keep things going. in one. it was only a matter of time and it seems at the time is now. who knows what the next few weeks holds. it is very clear there will be a big impact in interest rates up it will impact in interest rates up it will impact people

we start off with the us and federal reserve has released minutes, giving an upbeat assessment of the and inflation, changing expectation about interest rates have created more volatility in the markets, just like what happened on wall street yesterday, opening on the plus side but closing in negative with the dowjones down by 167 point. as for asian markets, currently open and it is a mixed bag. the nikkei up and the all ordinaries down the. earlier i put the question to our reporterjoe miller in new york. if you ask the markets when they had closed at 4pm the answer would yes but if you ask the answer would yes but if you ask the markets just a a few minutes after the minutes can out it was anyone's guess and you will know that usually when these minutes come out, a few minutes later my inbox and your inbox i am sure is filled with comments of analyst and pundits explain what they mean. there was stony silence as people try to interpret exactly what the wording in the minutes meant and this is the all sorts of confusion, eventually the markets settle on the fact that the markets set

bankers speaks, everyone listens. jerome powell made his first major appearance as head of the us federal reserve strike a balance between avoiding an overheated economy and bringing price inflation to 2% on a sustained basis. in view of the committee, further gradual increases the funds rate will obtain their objectives. lower corporate taxes should lead to higher investment and the effect is not easy to estimate but the studies find that it should lead to higher investment and that should lead to higher productivity over time and that should lead to higher wages over time. let us stay in the us and go back to that breaking news that jared kushner has last access to the present‘s daily brief. that news came in via reuters. let us get an explanation from gary o'donoghue in washington. tell us what this means and why it has happened? effectively what it means is that jared kushner will no longer get access to top secret information that comes into the white house, including the president's daily briefing, includes highly classified intelligence material and of course, given his role in the white h

markets have fallen in asia — following the us after the federal reserve gave an upbeat view of the economyrs of more interest rate rises. that could have a big impact in asia. let's go to our asia business hub where rico hizon is following the story hike is india's home—grown there could be a lot more volatility. 0ne there could be a lot more volatility. one day it is down, the next trading day is up so investors right now are spooked. they do not know where to position themselves in this current market environment as they might get trapped in this wild market swings. many are currently raising cash and moving to the sidelines for now and it will wait and see what happens next. analysts are speculating the fed will be looking at three in creases, as many predicted, orfour in looking at three in creases, as many predicted, or four in the light of the strong economic reports. also nervousness that interest rate hikes when the fed moves again, stifling strong asia exports and consumption which sustains the rapid growth throughout the region in 2017. backed by softbank and tencent — it's used

most asian markets sank on thursday, fuelling fears of fresh volatility after federal reserve minutes raised expectations usr. us stocks were in positive territory most of the session on wednesday, but began falling about a0 minutes after the federal reserve released the minutes of last month's policy meeting. the much—anticipated notes showed the board thought donald trump's sweeping tax cuts could fire up the already humming economy, pushing inflation higher. so tokyo stocks dropped following falls on wall street as market sentiment remained fragile after recent volatility. here in europe markets have opened. it's busy day on markets with lots of earnings out today — barclays, centrica, astrazenica — offering precious indications as to whether fourth quarter was indeed a strong vintage. clues are expected on the health of sectors which have suffered recently, such as telecoms, utilities or consumer staples but also areas where optimism has risen, such as banks, thanks to lloyds, and miners with glencore. joe miller has the details about what's ahead on wall street today. on thursday hewlett—packa rd enter

jobs market may be performing a little bit better and therefore the interest rates in the us, by the federal reservehink a rate rise in march, like everybody else? yes, we are looking for about four this year, about one per quarter. they tend to like things kind of gradual, on a regular basis. so one in march, and another three by december. so we will see if you are right. jeremy will be back in about 20 minutes, and we have the news briefing to talk you through some really good stories today. russianjets have intensified air strikes on rebel—held areas in syria‘s idlib province. the syrian civil defence, known as the white helmets, said five towns and cities were hit, and that several deaths and dozens of injuries were reported. it comes a day after rebels shot down a russian warplane over idlib, and killed its pilot on the ground. sarah corker reports. frantic scenes in idlib province. this footage posted online appears to show the aftermath of another air strike by russian forces. the white helmets, an opposition rescue group, search for people trapped in the burning buildings. eyewitnesses descr

i'm far chilton's coming up we asked danielle de martino booth to give us her view ahead of the new federal reserve chairman jay powell testimony before congress and she helps us examine inflation and tells us just when she thinks interest rates will rise plus crypto currencies are increasing we check in with jeffrey tucker on what's going on and what to expect all of that in our near term future but first let's get some headlines a proposal to allow chinese president xi jinping to remain in power past twenty twenty three is being considered the chinese constitution currently prohibits presidents from serving more than two terms of five years each the proposal by the communist party's central committee comprised of two hundred members is holding a three day meeting these days meeting to approve. the presidential cabinet the central committee's recommendations are usually rubber stamped and approved by. the u.k. opposition leader jeremy corbyn of labor has come out in favor of remaining in the customs union that's a cooperative trading relationship with members of the european union however corbett

coming up we asked danielle de martino both to give us her view ahead of the new federal reserve chairman jay powell testimony before congress and she helps us examine inflation and tells us just when she thinks interest rates will rise plus crypto currencies are increasing we check in with jeffrey tucker on what's going on and what to expect all of that in our near term future but first let's get to some headlines a proposal to allow chinese president jiang jinping to remain in power past twenty twenty three is being considered the chinese constitution currently prohibits presidents from serving more than two terms of five years each the proposal by the communist party's central committee comprised of two hundred members is holding a three day meeting these days meeting to approve the presidential cabinet the central committee's recommendations are usually rubber stamped and approved by. the u.k. opposition leader jeremy corbyn of labor has come out in favor of remaining in the customs union that's a cooperative trading relationship with members of the european union however corbett insi

federal reserve. but there is hope for business owners. sharon chin introduces us--- to >>> about 8,000 small business loans are denied every day according to the federal reserve but there's some hope for business owners. sharon chin introduces us to this week's jefferson award winner. ♪[ music ] >> reporter: when alicia villenueva and her husband came to the u.s. from mexico 18 years ago, they cleaned homes and washed cars. and she made extra money selling homemade tamales. >> every night i was cooking 50 to 100 tamales. >> reporter: today she owns alicia's tamales los mayas that sells to whole foods and callers to amazon and google. -- caters to amazon and google. she could only get a loan from a nonprofit lender. >> when you find somebody who believes in you it's amazing support. >> reporter: eric weaver founded the "opportunity fund" in san jose in 1992. through them she has borrowed $100,000 in the past few years to fund her first food cart, a catering van and rent for her warehouse. under his leadership more than 5200 businesses have received loans from "oppo

us lead downwards. that's of course after the federal reserve chairjerome powell spoke yesterday. combined with higher wage growth is worrying investors that there could be more interest rate hikes than they had expected this year. now looking at oil — we can see both brent crude and west texas continuing their fall. that's after industry numbers showed us crude stockpiles are rising — that's amid surging production in the country from shale producers. of course that's making it much harder for the likes of opec to end the global oil glut. up next — newsbriefing — we'll take you through the stories making headlines in the global media today including... the uk is waking up to another morning of freezing conditions after temperatures as low as minus ten overnight. the cold weather has already caused major distruption, but forecasters say the worst is yet to come, with warnings in place until the weekend. here's our correspondent jon donnison with more. the so—called beast from the east has already left much of britain under a blanket of snow. this is kent, which has received some o

coming up we asked danielle de martino booth to give us her view ahead of the new federal reserve chairman jay powell testimony before congress and she helps us examine inflation and tells us just when she thinks interest rates will rise plus crypto currencies are increasing we check in with jeffrey tucker on what's going on and what to expect all of that in our near term future but first let's get some headlines a proposal to allow chinese president xi jinping to remain in power past twenty twenty three is being considered the chinese constitution currently prohibits presidents from serving more than two terms of five years each the proposal by the communist party's central committee comprised of two hundred members is holding a three day meeting these days meeting to approve the presidential cabinet the central committee's recommendations are usually rubber stamped and approved by. the u.k. opposition leader jeremy corbyn of labor has come out in favor of remaining in the customs union that's a cooperative trading relationship with members of the european union however corbett insisted t

we have been funding it with phony interest rates that are concocted and given to us by the federal reserve but they are not real. what if interest rates become real again? anyone remember when they used to be 5%, 10%, 15%? do you know what happens with the government when our interest rate goes to 5% and they have to borrow for social security and medicare? inre will be a catastrophe this country. already, interest rates are kicking up in the stock market is jittery. and you ask the question why? to doit has something with the irresponsibility of congress spending money we do not have. the bill is going to exceed the $296 billion. and that is not counting the money they do not count. reallyeople are really, clever. imagine them running their fingers together saying --how can we hide stuff from the american people? this spendingn a cap so we can be more irresponsible than we appear? 296 is the official number. that will be in excess of the budget cap. there is another $160 billion stuck in something called and overseas contingency plan. the budget caps do not apply there. another $160 billi

they were given to us by the federal reserve. with interest rates become real again. i remember they were 19 or 20% but historically there've been at least five. interest rates are ticking up, the stock market is jittery. spending money that we don't have it's going to exceed the budget caps by $296 billion that isn't counting the money they don't count so these people are really clever imagine them running their fingers together saying how can we hide stuff from the american people and avoid the spending so we can be even more responsible then we can't appear. it's about $300 billion over the two years that will be in excess of the budget caps but there's another six -- $60 billion in the overseas contingency fund and another 60 billion then we come to catastrophes. three of my sisters house was flooded in houston so i have compassion even for my family to say here is a pot of money go be build your house we should do it in a responsible money do they cut. instead of 90 billion down over the federal reserve why don't we take the 90 billion from the budget people come

we've been funding it with phony interest rates that are concocted and given to us by the federal reserve they are not real >> the white house did anticipate that perhaps this could drag out into the wee hours of the morning the federal government government opens around 8:00 a.m., last night the office of management and budget was telling people that they were preparing for a lapse in appropriations, but as we stated earlier today, we support the bipartisan budget act and urge congress to send it to the president's december 1sk withouy still unclear when this will become official and whether there will be a delay in the start time for the government this morning given how long this process has dragged out. >> just back to what you said at the top. this is a six-week coverage for the budget, not the original intended two years >> because the deal is so complex, they need more time to actually put some meat on the bones. they have reached this agreement. it's expected over the course of the next six weeks there won't be surprises there won't be wrenches thrown into the mix to throw this of

federal reserve's support of the economy, following the financial crisis, undermine the federal reserve's focus on employment and eliminate its independence from the broken congressional appropriations process. the majority is also using the federal reserve as a piggy bank to pay for the cost of legislation like the latest short-term spending measure and now hr-4296, which will be on the floor today. these republican efforts to undermine the fed diminish its ability to support american workers if we face another crisis. chairman powell, i look forward to hearing your views on the economy and the path to sustaining the economic progress that was set in motion during the obama administration. i yield back the balance of my time. >> gentle lady yields back. the chair now recognizes the gentleman from kentucky, mr. bar, the chairman of the monetary policy and trade subcommittee for one and a half minutes. >> welcome, chairman powell. since the 2007 and 2009 financial crisis, the federal reserve's distortionary balance sheet has exploded from just under $1 trillion to more than $4. $4.5 trillion, injecting new and unknown risks into the economy. clearly, whether you believe this unprecedented government intervention into o

so the us federal reserve has a tough call, how fast it can raise interest rates without starting investorsybe that is where the sign of growth will come back to bt. and the big tech companies in the states, apple, amazon and alphabet i have mentioned, it is amazon which is the star of the show but it is not the biggest? there are two things. prime has been a great advantage but also this tax reform has taken place in the us. with a more advantageous tax rate, investors like that. but amazon is ina investors like that. but amazon is in a heavy investment mode. they will continue investing. thank you. let's have a look at the markets. everything is down. we haven't got amazon which was up 6%. there is a slight fall in the price of oil. the pound against the euro is looking a bit weak. earlier we saw the pound bowing up bit weak. earlier we saw the pound popping up against the euro but it has sunk back down again. the ftse is down by half of 1%. the ftse has had a bad week. when we look back over the last few months, this is the worst week we have had for quite awhile. many thanks. let's brin

taylor: jerome powell has been sworn in us chairman of the federal reserve, who replaces janet yellenappointed by president trump for a second term. he outlined his goals in a video message. >> today, unemployment is low, the economy is growing, inflation is low. we will support continued economic growth, a healthy job market, and price stability. a see also promised better to medication with the public. two senators in washington will introduce a plan aimed at -- dreamers who face deportation. john mccain would grant the dreamers permanent legal status. this would also increase security on the border with mexico but it would not pay for the law that president trump wants. american troops have started to pull out of iraq. according to the associated press, the drawdown comes following the declaration of victory over islamic state last year. the u.s. army says the american president -- presence in iraq will be based on conditions there. in germany, there is an indication that on what merkel maybe close to a deal on the coalition government with democrats. went anddate came and merkel i

looking at the markets, fluctuating widely, as investors have fretted about how fast the federal reserve, the usdata showing a pick—up in the us economy. so shares have rebounded somewhat as comments from a fed official seem to indicate a bit ofa from a fed official seem to indicate a bit of a slower approach. investors dipping their toes back into riskier assets. that has spilled over into europe as well. with the dax in frankfurt higher but the ftse 100 with the dax in frankfurt higher but the ftse100 has slipped. shares in rbs have been down around 4%, despite the bank announcing the first set of profits in a decade. and yogita limaye has the details about what's ahead on wall street today. more than ever, stock markets here are on fed watch, each signal from the famed at the races central bank about monetary policy development seems to be setting the course of the market. at least until the next signal appears, so friday could be another busy day. the fed will release its semiannual report on monetary policy. —— each signalfrom the report on monetary policy. —— each signal from the fed. repo

we've been funding it with phony interest rates that are concocted and given to us by the federal reserveren't real. what if interest rates become real again? anybody remember when interest rates were 5, 10, 15? i remember as a teenager them being 19% or 20%. but historically they've often been at least 5. you know what happens to the government when our interest rate goes to 5 and they have to borrow for social security and medicare and all the other stuff we do? there will be a catastrophe in this country. already interest rates are ticking up. stock market is jittery. if you ask a question why, maybe it has something to do with the

market is the steepest in over one year due to fears of a surging us economy leading to sharp interest rate hikes by the federal reserveeculation that banks may be forced to tighten policy aggressively. shifting our attention now to the dowjones industrial average, shifting our attention now to the dow jones industrial average, that finished nearly 5% down, dropping by over 1100 points. the nasdaq also down by 3.9% overnight. let's speak to the bbc‘s rupert wingfield—hayes — who joins us live from tokyo. if we have a look at the market in japan, rupert, there is a lot of volatility. when it opened it was down by 4%. we trimmed some of those losses and it was down by 1.8% now, back to 4% down. this market is volatile and coming off 26 year high as. yes, it is. i must say that despite this... people are relatively calm here about what is going on. there is a feeling that this is, that the japanese market is following what is happening in the united states. it is a herd mentality in stock markets around the world. when the us stock market falls everybody else joins in. everyone expects large falls again this morning on th

he has brought us together and the representatives of the federal reserve. the funny thing about these crypto currencies is the only work if they have their purported purpose. the virtual currency working group and the fed we've have a number of preliminary conversations and work streams developed i've have a number of bilateral conversations. we are all clear as to what were doing. do you have the answers that both of you can get can you work a task force together to get your arms around us without that? i cannot give you a definitive answer to that question because we should work together. we may be back with our friends from treasury they give you a virtual examination in my day. they lack value it seems to me they lack liquidity. i don't know where the bottom is. if the bottom was ever reached has opposed to a sovereign issue currency. do you disagree. i don't know where the natural equilibrium point is in this. there are some economists that there is a relationship between bit coin value and the difficulty or the cost of mining. as a process of reducing