the us federal reserve helmed byjerome jinping. ederal reserve helmed by jerome powell says jinping. the us federal reserve helmed byjerome powell says they will keep interest rates as they are for now. the personal consumption expenditures price index hit their target of 2%. the figure they used to track it is up 8%. i spoke to a chief economist from the bank of singapore asking why the federal reserve did not raise rates. singapore asking why the federal reserve did not raise ratesm singapore asking why the federal reserve did not raise rates. it was ha rd reserve did not raise rates. it was hard because they did not prepare the markets for it. there is an indication rate hikes every two months which we have seen for the past year will keep on going through this year. possibly next year as well. they are behind the curve. when will be the next interest—rate hike? june looks likely in the market agrees. the question is how fardo market agrees. the question is how far do they go? 3% seems unlikely given they have pushed through 4% a

is covering the trade spat and all sorts of stories, what is going on with the dollar in the us federal reserveve, but also dirty money matters. the cayman islands, other places will have to adhere to new rules. the super rich may be front—page news again. it is like the paradise papers all over again. what happens in these territories, the allegation has been shell companies are set up which allow people in effect to hide real ownership of their assets, because it is in the shell company and very ha rd to it is in the shell company and very hard to find who the real owner of the assets. zaleta lot of people use these to hide their money. it tells us these to hide their money. it tells us that the space for people to do thatis us that the space for people to do that is narrowing —— it is that a lot of. the government is forced by strong feeling in parliament to accept that in these british overseas territories they will force a public register. you will have to see who the real owners of assets are. many things are owned by these sheu are. many things are owned by these shell companies, propert

the rule is named after the former us federal reserve chairman paul volcker, and what it did was it andts to buy or trade risky securities. why? the idea is that in using customer deposits to buy things like credit defaults during the run—up to the financial crisis, the banks were making risky decisions that then necessitated a us government bailout. but on wednesday the us federal reserve will hear arguments that the volcker rule went too far. so investors will be keen to see if the federal reserve buys this argument, and of course they will be watching shares of bank companies that could be impacted by any relaxation of those regulations. these are banks, of course, like goldman sachs, jp morgan and citigroup. kim gittleson there. joining us is mike amey, managing director and portfolio manager at pimco. as we have seen, not a straightforward picture in europe, but overnight in asia, yesterday in europe, all reacting strongly to what is happening in italy, so let's look at the huge debt that italy has, alex pose—gil as the rest of the world? so the issue with italy, as you say, their

they are not taking the lead from the us federal reserve and they are also concerned about a strong ushold of inflation concerns. they hope that that will mainly get under control shortly and the country is also trying to reach a 7% growth rate. it is at 5% right now. the new prime minister has a lot about what in. he certainly does. thank you very much. malaysia central bank was supposed hold its meeting today of but it is now on an unexpected holiday. in new zealand, however, the central bank met today and the reserve bank of new zealand held borrowing costs at a record low of i.75%. some analysts had predicted that interest rates would be on hold all the way through the 2020. the new governor said that, quote, the door is open to both a rate rise and a rate cut, depending on the inflation data. in other business news to you this morning, bmw is extending a uk recall of its cars over safety concerns did it the move comes over safety concerns did it the move co m es after over safety concerns did it the move comes after an investigative bbc report found that some vehicles could stall

and the us federal reserve is considering modifying it that code for relaxing by the way what is called the volcker rule which bans proprietary trading that's trading for your own book trading on behalf of the bank the proposal that expected to be considered next week on may thirtieth the role was created as a part of the two thousand and ten dodd frank financial reform law i worked on it and bars banks from using funds protected by deposit.

it could be other central banks like imagine but you're talking about this example about the us federal reservecould take over and talk about the other one that you spelled out which i thought was just super interesting like like a facebook point explain how that would work. we've actually seen versions of this in smaller social media social networks so we've seen telegram has already started its own currency called grams but the real question here is what happens when the huge social network brings that power in and creates uses it to create its own currency and suddenly what you see what you can imagine is that you'd have a huge boom of mass adoption and currencies are dependent on the network effect and big question itself has done an incredible job you know. getting people to use it there are twenty three million wallets right now but you really have to measure that against facebook's two point two billion users worldwide and once you do that it kind of puts it into perspective you know. the power the powers that are out there to compete with it i can't imagine how great it would be if you

mortgage rates are rising here in the united states because the us federal reserve has continued to increaseta was released that showed housing starts declined sharply in april here in the united states. so investors will be wondering if these two factors have any drag on toll brothers' earnings, and, if they do what, that says about the overall us housing market. that is part of our team in new york. joining us is sonja laud, head of equities at fidelity international. welcome to business live, nice to see you. what's going on in the markets, kim talking about stuff in the united states. what is your take? we have lots happening, the ftse100 is breaking new records, the price of oil is edging higher, italy, what are you watching? to start with its easy to get lost in all those headlines because it seems there is so much going on, and yet looking at the underlying market developments and they are still very mediocre so you could be forgiven for assuming that a lot more had happened already. i think it's important to understand what the fundamentals are telling us. ever since we entered 2018

and the us federal reserve is considering modifying it that code for relaxing by the way what is called the volcker rule which bans proprietary trading that's trading for your own book trading on behalf of the bank the proposal that expected to be considered next week on may thirtieth the role was created as a part of the two thousand and ten dodd frank by mantle reform law i worked on it and bars banks from using funds protected by deposit insurance to make profit if not directed by quiet while it seems that a relaxation of the volcker rule might be imminent that's not the case in that other regulators are actually expected and required to sign off on certain portions of the rule changes five federal regulatory financial regulatory special agencies help to craft the initial rules. congress has passed legislation to roll back key parts of that law the dodd frank law and earlier today president trump signed the measure for more on the answer let's broaden on what's going to happen we'll start with bartlett naylor financial policy advocate at public citizen bartlett we thank you for being

us. the federal reserve isn't going to raise. it's a good takeout. you look at the base numbers.his reassures, yes, inflation is slow and steady, we won't get an extra rate rise. charles: i have the theory that they are spooked by the great recession. i don't know that we'll be the spenders that they were in the past. we have seen credit card debt come down two months in a row. how do you see both of these things? >> when we look at surveys, particularly where investors are expecting to spend a lot more of their tax benefits, we have seen taxes be dropped and reinvesting. we could see expansion. one of the issues we do know is a tight labor market. but we may have trouble trying to expand. >> overall, you are optimistic about this economy the way it's growing to sustain itself this way? >> there is nothing saying this is out of whack. things are on a slow and steady pattern. when you look at corporate earnings and how businesses are doing. first quarter they knocked it out of the ballpark. we are looking at a record 21%. also great earnings into the mid caps and small caps. those

us well the u.s. dollar has fallen slightly off of the federal reserve decided to keep interest rates unchanged the u.s. central bank made the announcement following a two day policy meeting the decision means the lending rate will remain between one point five and one point seven five percent for now but analysts say at least two hikes are likely to be announced before the end of the year well our financial correspondent is with us from new york now yes the fed not changing a whole lot that saying inflation was moving our words to tell us more about the move when we can concretely expect it. well most investors on wall street believe that the next rate increases coming at the next fed meeting in june and that the federal reserve might pause in the july august meeting and then once again might increase rates another time in september and then we will have to wait and see if there might be a third increase shortly before the year comes to an end so that's at least the projection for now we did not see a lot of surprises in this fed meeting the federal reserve did acknowledge that inflation is on the ris

using all instruments. losses to aersed record low. federal reserve officials have signaled they are fit to raise interest rates in the next meeting next month. they send no claim message on whether they hike one or two more times this year following that move. the minutes of the may meeting soon bewould appropriate to benchmark the policy rates, confirming expectations. officials expressed a range of views that would likely be required. the u.s. has started an investigation into whether car and truck imports threaten security. according to a person family with the matter, an underigation would unfold the same laws as terrorists under steel and aluminum. under steel and aluminum. shares in asian carmakers have fallen after the announcement. north korea has again threatened to cancel its planned summits with resident donald trump next month. pyongyang hardened its rhetoric by saying it was ready for a nuclear to nuclear showdown if the u.s. did not change its approach to the disarmament talks. atop north korean diplomat issued a warning in response to

we do this analysis of federal reserve speeches, using a natural language processing program and we looktrends of every speech by every federal reserve official. what comes out of that, they are very calm, not talking about uncertainty. they think inflation is a problem. they think the economy is great. in fact, it is one of the best mixes of speeches we have seen in the post-crisis era, and maybe in the last 20 years. so when you start introducing things like italy, introducing things like turkey, that add to uncertainty, that will be a problem for the market, because right now we all expect great economy, we all expect great numbers, and we don't have anything in the mix suggesting the rug might be pulled out from under us. italy and turkey are not necessarily big rock -- rug pullouts, but a surprise we might not expect. julie: more broadly, what is emanating from washington. when you talk about the federal reserve, what is going on in other nations, when you look at what's going on here in washington, president trump specifically, whether it is north korea, or probably more important

buying gold they are buying gold and they are expanding through american tell us approach but america's got the federal reserve they can print money all day long and they control the dollar which is the world reserve currency. so is this match up who wins in this match up down well absolutely i think the last hand the united states had to play is the. federal reserve the u.s. dollar with the china though taking that apart the swiss system built off the from the united states now the united states is even weaponized the swiss system against russia and the other countries that's going away russia china are building their own swiss system the you know we talked about five years ago max are way ahead of the curve of the petro union i mean i've said years ago we're talking about the china moving toil in to remain be the next phases the remain b. to become a global currency that's what they're moving fast on that trying to move all the oil the shanghai futures oil futures exchange opened you know late last year so as we see more oil contracts go into renminbi remain be international trade gets settled more and more

but they do share us with the federal reserve board. it's cost-saving to us to have our own ig. i think you have voted on just about all of these and i think most of them have passed in a bipartisan basis. i'd love to see myself [ indiscernible ] to the president and removable as well. i think that makes it accountable. i think applying the reigns act to our rules would -- keep in mind, one of the things that i think is important is to make sure when we put out a rule or reg, we're not doing the exact opposite of what one of the other regulators is doing. so we don't say you have to do a and the fdic saying have you to do the opposite of a. right now i don't think there's a robust method to do that. if we had more oversight with you guys in terms of the baits rules -- in terms of coordinating across various agencies, that would be helpful. talk about the 5-person commission to smooth things out. so there's a bunch of things you can do, a bunk of things you've already done. and i encourage you to push those reforms. i think now is the time to do it. if you don't do it now, my gue

the key part is the federal reserve use the word symmetric twice.s they normally use it once but using it twice suggests that there is a propensity to allow inflation to run hot. there is the treasury shock in the form of $73 billion being raised. it does not have seen to -- seemed to shaken up the market. i like l grosses line. mild bearish town in bond markets. 2.15, 3.2. we are meandering higher. there is a bear market. let's bring you one more breaking line. naming the next ceo. that is crossing the bloomberg in the past few minutes. coming up, we will he talking to the cfo after the company missed earnings but put their u.s. services business up for sale. we will be asking about that. let's get the bloomberg first word news. china said it will not succumb to what it calls stretch in the u.s. on trade. the comment from the senior government official coming hours before talks began with a delegation from the trump administration. chinese officials said beijing would not accept preconditions such as abandoning its manufacturing ambitions or narrow

buying gold they are buying gold and they are expanding through american tell us approach but america has got the federal reserve they can print money all day long and they control the dollar which is the world reserve currency. so is this match up who wins in this match up down well absolutely i think the last hand the united states had to play is the. federal reserve the u.s. dollar with the china of those taking them apart the swiss system built off the from the united states now the united states is even weaponized the swiss system against russia and the other country that's going away russia china are building their own swiss system the you know we talked about five years ago max are way ahead of the curve of the petro you in i mean i've said years ago we're talking about the china movie no oil in to remain be the next phases the remain b. to become a global currency that's what they're moving fast on that trying to move all the oil the shanghai futures oil futures exchange open you know late last year so as we see more oil contracts go into renminbi remain be international trade get settled more and more i

a former federal reserve vice chair and economic studies at brookings, great to have you with us and thank you for joining the show. an audible sigh of relief from the federal reserve managing to take out the sentence that they are monitoring inflation developments closely. what do you think of that and also the use of the term symmetric? >> for the last couple of years, they have had the same sentence or a very slight variation on a sentence that says, we are confident that inflation will of 2%. to the target and it has not. it has stayed well below. it is now almost at the target, which is good. they are saying well, we have almost got it where we want it and we can now worry about, it is either going to high or too low. i do not think there is any significant to the sentence that it is nice to see that finally, the prediction that inflation will move up a tiny bit has come true. >> it seems to be that the read on that language is that the federal reserve is going to raise rates and not pay as much attention to whether we are a little above or below the figure . how many rate increa

us. thinkinghe market question mark is the federal reserve holding its hand? >> i do not think so.hat's happened volatile and done whatuite investors expected them to do in terms of great earnings. in particular in raising rates has created quite a headwind for investors this year. know, 350 will be the peak this year. >> we don't think so. we think if you fast-forward a year from now, 3% will probably look like a good deal for the 10 year treasury. we see growth decelerating as we get more into the latter part of 2018 and into 2019. we continue to see inflation stuck in the narrow trend. we are not the believers in the bond bear market thesis that we are hearing more and more of these days. vonnie: why is that? it does seem i some of the economic data is picking up nicely and we have a lot more sounding optimistic. where are you seeing weakness and the lack of inflation? >> on the growth side, we see things being front and loaded. we see a lot hilton to expectations that push forward and we think those will dissipate as we get to 2019 and beyond. you arethe fact that right, we are

us later. they're making a comeback. after the federal reserve signaled a rate hike. he is also the foxbusiness contributor. he is watching all the action in oil and gold. nicole, will start with you. we heard from the fed somewhat on track. and probably another one after that. a strong job market. was some uncertainty. over a hundred and 65 points only to move with the session highly in the day. it has come under pressure alluded to this later in the week. that they don't have the capital and they might do another dividend. they're down 7.2% and with that it is the biggest sell often more than nine years for ge. 20%. comcast says it's ready putting together for the 21st century. fox has come out and said that they were committed to the agreement but we will see what comcast comes out with. last but not least i'm in a give you another in the and as netflix and tiffany. both of these on the move. they've have a few pieces of information that you can also see tiffany with 23 percent. not only do did they do well. have you been buying there recently. comments from the fe

us here at al-jazeera one o one east is next. it was a daring. tens of millions of dollars stolen from bangladesh's central bank via the federal reserve bank of new york and then laundered in the philippines. the money and the thieves then vendor. i'm steve on this episode a one on one east we investigate one of the biggest bank robberies a modern times and ask how the cyber hackers got away with it. well we felt it. was a given not only. jacka the capital of bangladesh. but teeming chaotic city and one of the world's poorest. seventeen million people live here assert have been surviving on less than two dollars a day. bangladesh has one of the world's fastest growing economies. it's a country on the up but one that could ill afford to lose more than eighty million dollars of taxpayers' money. bangladesh bank the country's central bank is at the heart of its economic system. it overlooks a busy roundabout indecorous financial district. high walls and tight security to stop anyone getting in who shouldn't be there but sometimes physical barriers aren't enough for this hi steve. nobody broke in and nobody took anything away in crime was perpetrated

federal reserve. possibly.o years, >> the chairman speaking to us today.ke that offer for toy for century fox. this is bloomberg. ♪ >> live from paris, i'm caroline hyde. vonnie: i am vonnie quinn and this is bloomberg markets. home-improvement retailer shares are surging up 9.5% right now. abigail doolittle is with us. >> pretty amazing. stocks were on pace for their best day since 2018. they missed red across the board and in fact talked about the worst rain and snow in 12 years and we can attest to that. the bright spot is the weather today. they are talking about may being on track. we can see why that is important. these are same story sales. using the earnings analyzer, we can see back in 2014, they almost got to 10%. the last time, all the way back .n 2004, pretty much every day they are trying to get back into that arena. they are so strong that they will make up for the quarter of,s mix, and speaking stepping in as the new ceo, a piece of this, they had the , retiring back in march under pressure to make changes. there was pressure to really turn

secretary henry paulson, former federal reserve bernanke and former counselor of economic advisor edward lazear. >> i want to thank president bush and laura bush for inviting us to be here today. you know, we have heard from -- the lunch we had with the women was just amazing. daniel's story, second to none. mrs. bush, thank you very much. then we heard from dr. chan.

that that federal reserve has created several trillionha dollars, ands money that eventually the american public, at least in concept, in theory, is going to have pay back? >> exactly.o those used the crisis are rich today. >> reporter: but didn't the federal reserve pour money into the system and keep it going and prevent the very paralysis that you were worried about. >> no, that was novocaine. >> reporter: you told me in 2008, yo to barter.uld be back it could be worse, i could quote you, it could be worse than the great depressik to the american revolution. >> let me tell you, in 2008, what it should have donet the time, first of all that we should have done, is immediately try to convert debt into equity, make sure the that caused the crisis were penalized, not regular people. i would like the federal reserve to understand that interest rates, very low interesttiates, quanti easing, drove people into higher end assets and stocks. who benefited from it? people who owned a lot of stocks and people who owned real estate. we haven't really remedied what caused 2008. there's still a lot of debt in the system. >> reporter: so, how do we protect ourselves? >> i'm not telling you

federal reserve might be willing to let inflation creep up as the economy grows. that came out in the minutes of their last meeting that was so yesterday. steve is joining usral reserve to see what he thinks today take it away, steve. >> reporter: thanks, michelle. we're at the federal reserve conference on disruption and technology and the economy but you're right, you took the first question out of my mouth right there. i'm here with patrick harker, philadelphia fed president let's talk about what michelle brought up the minutes yesterday suggesting there may not be so much further to go when it comes to hikes rates. and second that there's nmore tolerance for inflation. >> when i began this year, i had three 25 basis points from this year to last year. i think we're getting close to neutral. neutral say about 2.75% to 3%. if we see inflation start to accelerate, then i would be open to a fourth increase this year i'd have to see evidence of that first. >> reporter: when it comes to symmetry and inflation, how high is your tolerance for higher inflation? >> i don't think of it so much as a number around the 2%, although that's part of it it's the acsucel

the federal reserve will be using the data collected from the beige book for their meeting in june.: we didn't get that last time, the fact that we are seeking a tightness in the labor market. acknowledgeg -- that the labor market remains tight, that worker shortages remain, that the outlook is upbeat. i'm looking to see if we can find anything as far as inflation. we would also like confirmation of -- picks up. scarlet: i'm looking at some of the anecdotes that jordan picks up from the beige book. broadway theaters reportedly raise their prices more than 10% from one year earlier, and -- in boston says higher fuel prices shipping costs. we can see it percolate through different parts of the country, certainly in austin and new york. julia: gains remain modest in most districts. shery: let's check in with julie hyman. julie: we are seeing a steadiness, not much a reaction to the beige book report. it's sort of fleshes out but doesn't give us anything that is absolutely new. to still support the thesis that the fed is going to raise rates in june, based on the picture of an improving

joining us is justin urquhart—stewart, director of seven investment management. we have the federal reserveenya others with news, facebook, snapchat —— so many others. and the takeovers, we had sky and comcast, sainsbury‘s, something is in the air them an air of confidence that you can do these deals. don't they say sell in may and go away?! that is one of those wonderful things, the summer season with no trading and you come back on the saint leger day in early september but it is rubbish. the global economy will keep on going. we will have more volatility, that is the difference between this year and last year. there was very little last year and the market rising but now more volatility. this is the third longest wool market we have had since the second world war and as we get to the end of it, it gets more volatile. there is a combination of the global doing quite well, the american comic and european recovery beginning to turn the interest rate rising slowly but spectacular corporate figures coming out. but if this is good as it gets? the apple figures are fantastic but you look at whe

us tonight. >> reporter: how hot is too hot when it comes to inftion for e federal reserve? and what does that say about the outlook fte interest the fed has made a huge deal of saying its 2% inflation target is symmetric. that is, since it was below 2% for qtte a while will tolerate inflation above 2% for some unknown 'swhile. wh unclear is how much tolerance the fed has and for how long. here are thenu ers. since april of 2012 the fed's preferred inflation indicator has averaged just 1.28%. take out food and energy and it's averaged 1.58%. remember the numbers. let's look at what fed officials have saidbout tolerating high inflation. new fed jhairmanome powell said at times it may be above 2% just as at times it may be below. our inflation objective is symmetric. does charlie evans, the p chica fesident said, quote, 2.5% in an environment where it would come down longer term and that it would be contained, i don't think that's a problem for ours etric definition. put it altogether, there's some but not a huge amount of tolerance for some overshoot on what would it really t

the federal reserve said inflation is close to its target and of course kept rates as they are in the usng. polling stations will open at 7 o'clock this morning for voting in local elections across england, in the biggest test of public opinion since the general election 11 months ago. most councils are counting votes overnight, but others will declare results during the day on friday. our political correspondent jonathan blake reports. across london and in towns and cities around england, people are going to the polls. there are 4371 council seats up for grabs in 150 year tree authorities, metropolitan boroughs and district councils. six may all elections are also being held. all council seats are being fought in london and some cities, including manchester, leeds and newcastle. elsewhere, a third of some seats are up newcastle. elsewhere, a third of some seats are up for grabs. elsewhere, in the largest elections since the general elections last year. —— in the first election since. the first results are expected at around midnight that cou nts expected at around midnight that counts i

us from chicago. michael mckee from the federal reserve. and scott minerd. let's look again at that headline.l ceasenalytica operations immediately. it commences the insolvency proceedings in the united kingdom, following acquisitions -- accusations that they took data from facebook users. we have final thoughts. with our bloomberg chief economist. this is bloomberg. ♪ scarlet: "the fed decides." this is i'm scarlet fu, along with tom keene. we are joined by ira jersey. the fed did nothing, as expected. they gave no indication that it will hold live meetings for every meeting, so what does this do for your projection on what it does next? ira: it does not change much. we knew they had to say something on inflation because we are very close to the inflation target, where they want to be commanded they may have let it slip a little bit, but as the chair said in a speech not long ago, he said we will not make this or let inflation run away from us, and stay way above our target just because it has been running below for a long time. tom: what is your experience of the fiscal impulse monetary the

and that for sure could cause the federal reserve to a bit more aggressive than originally planned right we'll keep an eye on how that uptick continues jan quarter for us in new york thank you. well cambridge analysts ago the british firm at the heart of the facebook data collection scandal has announced that it's immediately ceasing all operations the consultancy group says it's declaring bankruptcy in the u.s. and britain cambridge analytical was propelled into the limelight after it appeared that its collected data on up to eighty seven million facebook users it compiled a database and a large number of u.s. voters and use that information to influence the twenty sixteen u.s. presidential election will face but lost the trust of many users over the scandal and has since tightened its privacy restrictions. growth in the eurozone is staging a sharp slowdown in the first three months of this year the economy grew by less than half a percent when in twenty seventeen the economy expanded by a steady zero point seven percent from the second quarter through to the end of the year but initial results by the european statistics authority for the first quarte

us. she is the president of the federal reserve bank of cleveland t. , our chief u.s. economist, taking notes. a couple of things i noticed, and one was your thought about the balance sheet reduction. ben bernanke is adamant this balance sheet is not a big deal. what do the pros say pushing against the belief that chairman bernanke has that this will be smooth? >> it seems to be good smithly so far. however, it accelerates ever quarter. so as this happens, we have to keep a watchful eye on potentially the spark and smoke that could emerge and president mester highlighted some of the factors she's looking at. untested territory for franks, at least to quantitative tightening in any scale. the bank of japan tried to back out of policies in the past, but we've never seen a major bank in a developed economy engaging in q.t., quantitative tightening, to a large degree. i think one of the programmers it we have to watch, which is very key to president mester's district, is the strength of the currency. one of the legacies of q.e., and we didn't fully how it w

federal reserve left. scott showed it to my managing director u.k. and europe joins us now.. >> good morning. >> what is your take on the fed's announcement? >> it's hard because less other eight years the fed has been consistent but they've been consistently wrong. this time they've gotten things a little bit more right. they didn't really come out and defend it at all. they did more of a wait and see. the probably right. i'm a little leery of seeing them raise rates too quickly because i have to say this. there's a leak in our economic system somewhere. for .1% unemployment. but it's not coming through at the end of the pipe. how come a wage is higher in how come can't get inflation? something is wrong and it's our job to fix it. let's talk about these trade talks between the u.s. and china kicking off today. would you expect to come out of beijing? >> everybody says we don't want to get into a trade war. we've been in a trade war. they've been ripping off 200 to $300 billion a year. if anybody can give you an argument, keep getting slapped in the face. so far we've got to

international messaging system used to send money around the world the hackers then generated search the five requests to transfer funds from bangladesh bank's account with the federal reserve bank in new york the orders came close to a billion dollars. most of the requests were blocked but ford did get through and as a result almost eighty one million dollars was sent to accounts at a bank called fast c.p.c. thousands of miles away in the philippines i couldn't believe it. because nothing like that even a smaller thing like that never happened so i was dumb and actually of course for a while actually was the governor of the bank when its systems were compromised and the money was stolen you know i'm not blaming swift i'm not blaming fed i'm not blaming bangladesh bank but and this was not strong enough to really we stand that kind of at. all. institutions touched by the heist have denied they were told for the losses they have however taken steps to improve security. police headquarters in downtown dhaka detectives here are working with all sorts easy in other countries in what has become an international investigation they've yet to confirm how the hackers got into the sy

we are here with charles plosser , former president of the philadelphia federal reserve bank joining us from the hoover conference on monetary policy, which raises the question, whither monetary policy in a world where you can get 3.9% unemployment and no wage gains? andell, the unemployment wage gains and have a lot to do with productivity. we have had miserable productivity growth over the last decade or so. it is not entirely surprising that growth in wages is not any more robust than it is. michael: we sort of strained to get the pce index to 2%, just barely at 2% after how many years, no wage growth for to you with the fed when you are at the open market committee. has something changed in inflation dynamics that would change your view of inflation? charles: well, it is a puzzle why we haven't had more inflation, but one way to answer that puzzle or to address it, is that a lot of what the fed did in terms of fighting the recession, quantitative easing, generally a lot of financial , butest -- financial ease the money-creation aspect of it from all the quantitative easing led to a

bonds are attractive, particularly at a time the federal reserve told us last week that there had beenasymmetry around the inflation target and there is no want or need to accelerate their hiking program. the front end yields are very attracted in a global context, and at a time when we have some of this geopolitical tension and slight credits illiquid see, we still believe the dollar rally has legs. -- credit delinquency, we still believe the dollar has legs. haidi referred to these short positions coming to be at the beginning of this year. the positioning has turned negative against europe. my question would be, where is the money been going if it is coming out of europe? obviously it is going to the dollar, and is that the reason why we are seeing the yield going down as opposed to the prices of bonds going up? it doesn't make sense. where is the money going? alex: -- charlie: i still think there is some money flowing towards yen. well.currencies are doing as much as the dollar has been appreciating, the yen has been keeping up. i do think treasuries look very attractive, and certa

financial news, the federal reserve and banking regulators are slated to roll back the volcker rule, a key financial regulation enacted after the 2008 financial crisis. the rule bars banks from usingtomers' deposits to make their own risky bets. it was one of the key aspect of the dodd-frank wall streetet reform and consumer protection act and was named after former federal reserve chairman paul volcker. watering down the rule would allow wall street's giant banks to again engage in a wide range of risky trading, using customers' own money. meanwhile, on monday, president trump nullified rules aimed at preventing discrimination in auto lending. and today, the house is slated to vote on legislation that would roll back parts of the dodd-frank act for thousands of smaller to mid-sized banks. the united states and china have agreed to hold further talks as the world's two largest economies step back from the brink of a global trade war. over the weekend, treasury secretary steven mnuchin said the threatened trade war would be put on hold, backing the u.s. away from opposing tariffs on $50 billion of china's exportss to thehe united states while cha appears to have committed to import

know that the federal reserve is out there and they may know that the federal reserve chairman deals with setting interest rates. they might not differentiate that is monetary policy. could use a singly described in a basic way where the distinction between monetary policy and regulatory supervision is drawn? >> i will try to do that succinctly. but our supervision -- because the two are related in important ways, that gets very complicated, but are regulation of the financial sector and of the banking system is the development of rules to ensure safe, sound, and efficient operation and we have a supervisory function where we examine all the banks are subject to our jurisdiction to ensure that they're complying with the rules and operating in a safe, sound, and efficient manner. >> thank you. and i'm not the first person to fill this role. i appreciate your testimony when you were different shing -- differentiating rule from -- and we kind of struggle with the guidance and frankly there is little accountability for what guidance is given, except counter reactionary after-the- fact and is hard to substantiate and finger- pointing. it has a profound impact on the economy. in y

us. coming up, on daybreak asia, an exclusive interview with federal reserve bank of st.uis james bullard at midnight u.k. time. that, you don't want to miss. this is bloomberg. ♪ ♪ welcome back, this is the european open. 15 minutes to go until the start of the open. this has been a week characterized by political risk. italy, a president under fire has been set to be ready to replace the stand in with the original choice, if the two populist parties can revive coalition talks. --the next few minutes, it's the spanish parliament will begin to debate a vote of no-confidence on their prime minister. we bring you the headlines as they happen. they tell bloomberg that the socialists are close to securing the backing needed to oust him. let's get to our reporters on the ground. annamarie, i going to kick it off with you. the saga has been breathtaking, what is the latest? >> the latest is that sell holds all theni cards. we are hearing he might swap the foreign minister -- the commerce minister to the foreign minister. we could see a populist government as soon as today. but

that might give us a new issue to worry about, stagflation fear and pressure put on the federal reserve good fundamentals underlying europe, but what if there isn't a europe? what's going on in italy, for example? bank of america and merrill lynch talking about italy today, is a good or bad? this is what he said. are suddenly faced with the possibility of an election that might be about italy's position inside of the eu and that is where the market started price what we saw yesterday, having a meager five star government, at least they have got to try to present some pulses to the government and we don't have an earlier election that looks like a referendum. simply put as an investor, the you have to price that in? jim: you know, david, i guess you think about this recovery for 10 years, and i don't know how many times we have had waves through the marketplace. affecting risk positions on investors, every time people ran away and went to risk off, it was the wrong thing to do. something that will be the wrong thing to do again. it wasn't nearly the disaster everyone thought it would be