us president donald trump blamed an out—of—control us federal reserve for the downturn. as a lot more to do to hurt beijing, after it emerged that us authorities had charged a chinese intelligence officer with stealing technology secrets. the new york times looks at the disappearance of saudi journalist jamal khashoggi. the paper says the possible murder of mr khashoggi in turkey is a looming diplomatic crisis, especially for mr trump's son—in—law, jared kushner, who has cultivated a close relationship with saudi arabia's crown prince, mohammad bin salman. 0n the front of the guardian, there are plans to turn a uk motorway in kent into a lorry park to deal with the possible impact of a no—deal brexit. transport companies are warning of the potential for chaos after brexit without a deal, to preserve frictionless trade with the eu. and finally, here is a picture of the happy couple on the front of the telegraph. the queen's grand—daughter princess eugenie is due to marry jack brooksbank later today at st george's chapel in windsor. so let's begin. with me is alpesh patel,

president trump was quick to point the finger of blame at the us central bank of the federal reserve.of blame at the us central bank of the federal reserve. i think the fed is making a mistake. i think the fed has gone crazy. i wonder what jerome powell has to say about that. we have neena from the wall street journal with us for the briefing. interesting times. we thought this relentless bull run would have to come to an end at some point and there would be some sort of correction. what is your take on what is going on? as you said, we have been expecting a correction for a long time. and given it has been ten yea rs a long time. and given it has been ten years since the financial crisis, it must end at some point. that it hasn't, so far. and this might not be the end. we have seen markets go down a bit earlier this year, we also saw it in previous yea rs year, we also saw it in previous years but we have not seen that stabilisation on a lower level that people were expecting as, for example, the federal reserve in the us is raising rates and also qualitative easing is ending in the

the us federal reserve has been raising interest rates to try to stop the us economy from overheatingt it's causing difficulties elsewhere in the world by making it more costly to pay off debts held in dollars. the effects have been felt in emerging and developing economies. both argentina and turkey saw their currencies plunge against the dollar following concerns about their financial health. then there's the trade dispute between the us and china, which shows no signs of abating. let's get more on this story from our asia business correspondent karishma vaswani, who's in bali for us. tell us more about the global outlook and to what extent it is more gloomy than the previous one? sally, the international monetary fund released its world economic outlook, its assessment of the global economy about 3/2 hours ago here in harley and they were very clear. in the language it used in the world can —— economic outlook, they said there are clouds on the horizon for the global economy and one big main reason for that, it was what you are saying earlier, trade tensions between the world's two

inflation is rising in the us and that means that the us federal reserve, the central bank, has increaseds which increases the cost of borrowing for many corporations and that could also hurt profitability. and why our technology stocks in particular bearing the brunt of the sell—off? this is profit—taking. the idea that investors do not think the shares will rise any further so they will ta ke will rise any further so they will take their winnings now. which stocks have risen the most over the last year? many of them are tech stocks. hammers on and net leaks we re stocks. hammers on and net leaks were some of the hardest hit today's. both saw share price declined over 6%. so some of the wind is coming out of the sails when it comes to investor enthusiasm that has been pushing these share prices higher. that there do seem to be jitters before the earnings season begins. it isjust jitters before the earnings season begins. it is just unclear whether 01’ begins. it is just unclear whether or not we will see whether this is sustained throughout the week or it was just a sustained throughout

rising interest rates, sold equities worldwide, with president trump blaming an "out of control" us federal reserveer — who was born a man — has beenjailed for life for sexually abusing two women at a female prison and for two earlier rapes. parso, par so, let's start with the financial times. what else could we start with but a bit of brexit, because there has been not a full cabinet meeting today, but some of the most senior cabinet ministers have been called into downing street for what we were told is an update on brexit negotiations. it sounds like there was a little bit of unhappiness about what they were being handed, or offered, and it's all about whether the uk government decides to give a bit more of a concession about the backdrop to stop the hard border. unhappiness is a bit ofa stop the hard border. unhappiness is a bit of a euphemism looking at the financial times. fuming is the word. these are the people that theresa may thinks she can get more on—site to lead the way to show some solidarity for her plan. of course it is all about the vexed issue of the i wish border, which is if we

lame the market rout on the us federal reserve here's what he had to say thank you thank you thank you thank you it is going great thank you say thank you thank you thank you thank you a lot about thank you thank you thank you but i thank you thank you thank you they were waiting for me thank you thank. you and here to discuss what's been going on in the overall economy and more is professor of economic emeritus at university of massachusetts amherst richard well professor great to have you back again thanks for joining us thanks i'm glad to be here so i have this theory and it's not some learned theory that i would learn in the class that you teach certainly but it involves reasons for a major market moves like this that we've seen in the last twenty four hour and my theory is that folks on t.v. radio and investment advisors who we pay if you make an investment they always have to have a reason they have to come up with some reason otherwise what are you watching them for what are you paying them for and they have to have some sort of answer but if you are in the financial sector i gu

the us federal reserve has been raising interest rates to try to stop the us economy from overheatings elsewhere in the world by making it more costly to pay off debts held in dollars. this is particularly so in emerging markets. the effects have been felt in emerging and developing economies. both argentina and turkey saw their currencies plunge against the dollar following concerns about their financial health. then there's the trade dispute between the us and china — which shows no signs of abating. let's speak to karishma vaswani in bali. it is interesting, there is, there are so many issues it is interesting, there is, there are so many issues for them to debate right now, but i wonder what it says about the things which i got us it says about the things which i got us all talking, the trade tensions which do not seem to be going back any time soon? absolutely right. i think you have to look up the number of times that trade, the word trade, the phrase trade, the word trade, the phrase trade tensions comes up in the world economic outlook. you just need to realise that this is on

rising interest rates, sold equities worldwide, with president trump blaming an "out of control" us federal reservend the metro reports that a transgender prisoner, who was born a man, has beenjailed for life for sexually abusing two women at a female prison and for two earlier rapes. let us start with the telegraph. and, of course, the budget not far away. they have a story suggesting that actually tax cuts, which have been promised, this is the rise in the personal allowance, will be dropped to fund welfare. that story we are hearing about there, the unhappiness about universal credit. is it true? a government to break its election promises, who would have thought it? it looks like with the budget coming up that one of the ideas being mooted is that the government will drop the players to reach the threshold at which people start paying tax. they promised to raise that from 11,852 2500, that will be shelved in order to get the gover out of this pickle of universal credit, where people are losing up to £2400 per year because of the changeover to the single benefit. iain duncan smith is calling for

. >> student loan debt has reached $1.5 trillion according to the us federal reserve. total outstanding student debt has doubled in 10 years and that's the highest category of consumer debt after mortgages. in new jersey the average student graduates with $32,000 in debt, the 6th highest level among the 50 states and all that debt poses a risk to the economy according to the head of the federal reserve. >> as student loan continues to grow and becomes larger, it could hold backgrowth . >> some students cannot make their payments and default rates are much higher than default rates on other types of consumer debt. according to the department of education, most recently available data, the current student loan default rate is 10.8 percent. new jersey's default rate is lower. but critics point out the department only looks at the fault in a three-year period and doesn't fully capture the financial distress. the federal reserve states delinquency rates could be twice as high. >> a question for both candidates starting with ms. sherrill, what can be done to stop this trend

speaking of mr trump, he has spent most of the last 2a hours criticising the us central bank, the federal reserve't you glad ours as independent? they are supposedly independent in america as well, but our politicians keep their mouth shut. to some extent he is right, from policy perspective... how do you mean? rising interest rates, and he and signalling so far ahead, they were doing it to give the markets advance notice. however, what it has done is it has spooked the markets far more than anything he has done with trade. the biggest trading partners for america are canada and mexico. he has filled up a deal to make it a little bit better, the new nafta, thanit little bit better, the new nafta, than it was previously. the rising interest rates, which the fed has signalled ahead, it has spooked the market. that has led to people taking money off equities. so he is right about that, because what he is trying to do is have those asset prices rise, maybe two over inflationary levels, but he was trying to create some kind of wealth effect, and they have pricked that bubble somewhat. trump is hardly

steve liesman reports tonight for us from the federal reserve in washingn. >> reporter: when fed officials raise rates in september by a quarter point mutes of the meeting showed they suggested there was more rate hike work to do inhe months ahead. they showed that most of enemy thought further rate hik ep needed even after the 2.25% range in a number of felt they might have to act to slow the economy, that is levy quote modestly restrictive rate in order to slow the economyucown and rede the risk of overheating or overshooting on the 2% inflation arget. behindll this were optimistic viewsn the economy. fomc members saw strong growth and some stronger than anticipated along with low unemployment. they said part of the strength came from the effects of fiscal stimulus. but some saw of the effects of the the stim laws wearing offer in coming years and there was concern about the trade disputes with weaker overseas growth. there was also worries that the financial troubles in some emerging markets could spread to other countries. overall, fed officials, though, thethe risks as balanced to eco

so for us, the federal reserve is key going out over the next year. the target that you quoted, the 2800 or 2900, that has been our year end target, but we are try to focus further than that, further out, and what are equity group is looking for is maybe 15 percent or 70% return from the levels over the course of the return fromor 17% the levels over the course of the next month. david: you know better than i what would happen over the next months, but the unemployment rate is really low and inflation is right at that 2% level, even though the hikes may have made, so shouldn't they just it to those two issues? scott: i think that they are certainly watching the issue. this friday, when we see the employment report, we may see the hourly earnings number north of 3% now. 12 months ago, if we would've seen in print like that i think the market would've panicked. i think the market is prepped for that, but certainly the fed -- if they would react either to this potential for slowing growth, or to anything else really going on in the states with market vol

relaunch the us because we have the federal reserve and its minutes to out for the open committee meetinge just had the president calling the federal reserve a little bit out of control and how they are raising interest rates, a re control and how they are raising interest rates, are they? they are probably not out of control at all and what they are doing is trying to manage the economy so that it does not overheat. certainly we are going to be looking for two very simple things over the support, doesn't mention inflationary problems, does it mention volatility? this a bit too things that say the market are we right in pricing another hike for the interest rates? all the activity around inflation has been stronger, suddenly capital spending, it now remains to be seen whether it can show up in the inflation numbers. but certainly if abe is linked to discuss bringing the sales tax back, obviously the economy is doing a lot better there and some were expecting. international monetary fund and world bank's meeting ended on sunday with a call for the same approach to international trade issue

us. coming up, you do not want to miss two fed president on bloomberg today. beth president of the federal reservek of chicago joins us for an interview just after 11 a.m. london time. minas: and another voice from the fed later on. jay powell last night. and the president of the federal reserve of philadelphia. both will speak on bloomberg. ♪ ♪ are taking a look at a live shot of washington. the latest rhetoric from washington to the king of saudi arabia, watch out. he would not be in power for more than two weeks area a warning shot from mr. trump. the press reports that the italians may, may lower the deficit. that is moving markets of this morning. speaking of which, the fed chair, jerome powell, has said he expects to stick with the central banks gradual path of interest rate hikes. calling it a reflection of economic strength of the times you are in. this historically rare pairing of steady low inflation and low unemployment is a testimony to the fact that we remain in extraordinary times. policy of gradual interest-rate normalization reflects our efforts to balance the inevitable risks that

us. the federal reserve raised interest rates last month — with more rises expected.eson is in new york it look like wall street cannot make up it look like wall street cannot make up its mind, yesterday with the dow tumbling, questions on whether that would continue until today, i was in the exchange will markets opened and actually investors seem to quite happy because they got a bit of economic data that suggested that inflation was not rising as quickly as many had been fearing fear in the united states. investors like that because that means the federal reserve will not increase interest rates as fast as expecting, and marketing kind of happy early in the day that all was a raised by the time the markets closed, the dow was down 500 points for a total of 1300 points. i am interested in you keep interest rates, last summer talked about this it was all seeming reasonably predictable. we knew that it would be inching up interest rates, so why might that scare the market? there are two things are happening right now. the first is that president donald trump, he does

president trump has been critical of the us federal reserve again — maryam is here? l bank over interest rate rises. the federal reserve has been gradually raising its benchmark rate since 2015, as the us economy picks up steam. last week the president said the bank had "gone crazy". this is what he had to say in a fox business interview: the third, because the fed is raising rates too fast. its independent so i don't speak, i'm not happy with what he's doing because it is going to fast. look at the last inflation numbers and they are very low. let's go live now. kim gittleson is at the new york stock exchange for us... not the first time trump has been so critical of the federal reserve. yes, he started attacking it over the summeras yes, he started attacking it over the summer as saying he wasn't happy over the decision to increase interest rates. last week he blamed them for the markets we saw last week. he called the fed crazy and said he wanted to fire mr powell. he doesn't quite have the power to do that unless there is cause. this is what of part of a trend we

relationship, that sometimes uneasy relationship between the federal reserve and the white house. tell ushe experienced. christine: back in the day when he was serving the johnson administration one of the , stories is about him attending a meeting between henry fowler and chairman of the federal reserve william mcchesney martin, who is famous for calling the fed's job is to take away the punchbowl before the party gets started. president johnson am a what he witnessed in that meeting which was private and the white house was watching president johnson trying to influence the fed to prevent them from raising rates. he describes that in vivid detail. we also excerpt an example when he was on the federal reserve himself in the he had been 1980's. reappointed by reagan after carter had initially elected him in 1983. in 1984, an election year, and he was summoned to the white house and had a surprising experience. carol: let's describe it. because it is fascinating. you do say it does not happen in , the oval office. it happens in the library. walk us through. christine: what he remembers is

the us president donald trump has sharpened his attacks on the federal reserve by saying it posed theomy. in an interview with the wall streetjournal, mr trump said that rates were being raised too quickly under the leadership of chairman jerome powell. there have been eight increases since 2015, and the brisk pace of economic growth means more are expected next year to stop the us economy from overheating. soa so a very quick look at the markets before we go and you can't see them there at the asian markets fell again on wednesday, extending the previous day's sell—off, fuelled by all those geopolitical concerns that we have been talking about. energy firms taking a bit of another battering. that is all for the business briefing. see you soon. nearly 30,000 calls were made by gamblers to the helpline in the last year according to gamcare, the charity that runs it. the government says it's taking decisive action to ensure the most vulnerable people in society are protected from gambling—related harm. the bbc‘s ali fortescue has more. sporting, funny and a son, alan took his own life b

us so much. he is living history. jason: specifically about the federal reserve and the excerpts in the magazine go to the heart of theionship, that sometimes uneasy relationship between the federal reserve and the white house. tell us what he experienced. christine: one of the stories is about him attending a meeting and williamy fowler mcchesney martin, who is famous for calling the fed's job is to take away the punchbowl before the party gets started. he witnessed johnson trying to influence the fed to prevent them from raising rates. he describes that in vivid detail. excerpt in detail when he was on the federal reserve himself. he had been reappointed by reagan in 1983. in 1984, an election year, volcker had a surprising experience. carol: let's describe it. because it is fascinating. it does not happen in the oval office. it happens in the library. walk us through. christine: volcker remembers being asked to see the president, not in the oval office, which he thought unusual and wondered why he was being summons to this library. -- summoned to this library. his memory was that he just saw reagan and baker, then

president should be commenting on the federal reserve the way he has >> i can't answer that, but i'll say the federal reserve has a large amount of autonomy that is granted usress and the president through the federal reserve act. we are supposed to support monetary conditions that promote price stability. >> this is how the fed officials are going to respond, they're not going to engage in a back and forth with president trump but what they're going to do is talk about their policy and charles evans said the economy is very strong, necessitating rate hikes here's what he says about the outlook for interest rates. >> i kind of think neutral, 2.75 to 3%. after many years of accommodative policy which i supported strongly because inflation is now 2%, it is time to readjust the policy stance to at least neutral, see how the economy is performing, and we may have to do more after that >> i asked him what a little bit more is. maybe 50 basis points. do the math. 3.25 to 3.5 if needed with stronger economy i will say, he pointed to the president's policies as part of the reason why the economy is so strong so give on one hand, have to take it away someplace else

it's not going to turn us into the buy more republic if we let it go unchecked. we want the federal reserve to be what janet yellen taught us, to make decisions based on what's happening in the economy. it may sound obvious to you, but they didn't really start doing that until after the financial crisis, which is a major reason we had a financial crisis in the first place. data dependency is what made janet yellen so successful as a fed chair. powell would bo doh well to follow her playbook. let's see what the data says and otherwise talk about something else when pressed on his 2019 game plan. now it's not the fed's job to ensure higher stock prices i'm not saying that. but investors are right to be concerned when the head of our central bank starts talks about the need, perhaps, to overshoot with rate hikes. maybe he could try to shoot just the right amount of course, it's not just the fed. the strong dollar is hammering our companies that do a lot of business overseas. it would be nice if powell would acknowledge how inflationary that is, though. long-term interest rates keep rising, som

partly the strength of the us dollar and the fa ct strength of the us dollar and the fact that the federal reservet rates recently but it is also because the chinese economy is slowing down. worries about the trade will pushing the currency lower. —— the trade wall. but it can help to boost growth by making china more attractive to the rest of the world so beijing is caught ina rest of the world so beijing is caught in a bit of a bind. if it allows that to happen, it risks the idea of president trump and escalate the trade war. he and president xi are expected to meet. any weakness could derail those talks and make things the china much worse. making sense of the decline of war. australia has ratified a huge pacific trade deal, meaning it will come into force at the end of the year. the trans pacific partnership covers more than $200—billion in trade. president trump pulled out of the pact last year, but the remaining members have pressed ahead. let's go to our asia business hub where shara njit leyl is following the story. another milestone reached 7 another milestone reached? that's right. it wa

it is a fair question, senator, but as you note, that is not something we as the federal reserve can mandate. we are using a lot of those hours you described -- our convening power and exhorting power. i think effectively, it is not as though there has been no progress. there has been a lot of progress towards that. i think in the next short period you will see for their -- will see further concrete steps that have been catalyzed by federal reserve action in the private sector that move us toward a real-time payment system. >> i would like to follow-up. it is just the pace of this change seems to be very sluggish. in the meantime, a lot of people are paying unnecessary fees and a lot of people are collecting a lot of fees they would not be able to collect absent the lack of a real-time payment system. i would like to follow-up with you with respect to investigation into wells fargo practices. i think it was july of last year we discovered that 800,000 people who took out car loans were charged for auto insurance they did not need. nationally, that pushed about 274,000 wells fargo customers into delinquenc

jonathan: the federal reserve is showing us that they are concerned more about financial stability. you can keep hiking because you are afraid of bubbles but then you can cause financial stability issues elsewhere in the economy. are they doing the right thing with this approach? >> yes, they are absolutely doing the right thing today. the question is if these actions will be right tomorrow. it really comes down to financial conditions in the neutral right. most people are talking about the neutral rate as if it is stable but it is not. it's very hard to measure and it changes over time. it is our belief the neutral rate today has been raised temporarily by things like the stimulus bill with the new tax bill, whatever central banks are doing. as those impacts -- kathy got it right. as those impacts fade, the market will react differently to fed hikes in the future. we see a couple more hikes, two or three, but if those influences stay, we think the market will become much more concerned, even with the same type of hiking. jonathan: kathy, looking at the treasury curve, 2.90 on the 1

haidi: thank you for joining us, a pleasure as always. the federal reserve bank, st. s fed president, joining us out of singapore. weighing the impact of brazil's residential elections, -- presidential elections. which candidates are considered more market friendly. this is bloomberg. ♪ ♪ is 8:30 a.m. in sydney. this is futures setting up. all these stocks were one of the few out performers. we have five days of gains for msci asia-pacific area we are looking at a soggy start to monday morning and it is rainy in sydney. it is forecast to stay wet the rest of the week. haidi stroud-watts in sydney. shery: we are getting some sun in new york. i am shery ahn in new york. 6:30, watching daybreak australia. let's get to first word news. the right wing candidate is leading brazil's election with more than half the votes counted. he is not seen gaining an outright victory and will probably face a runoff election in three weeks. investors ignore it is authoritarian streak and bet on his pro-market start. allegations of corruption. investorsthe amount must hold for the fourth t

as a result, fears that the us federal reserve might be forced to increase interest rates at a faster to say that everything is rosy hue on wall street, but that is one reason we have not seen the shortfalls we saw yesterday or what happened in asia and europe. what exactly caused the sell—off in the first place? and europe. what exactly caused the sell-off in the first place? as you mentioned, it's hard to pinpoint one reason. a couple of things are weighing on investors here. tomorrow is the beginning of fourth—quarter earnings season here in the united states and some investors are worried that corporations here would be as profitable as they were over the summer because of a host of factors that, as you mentioned, include rising interest weights which make it more expensive for corporations to borrow, price pressures in the form of rising inflation which hurts companies' bottom line and, of course, the global trade war. we start import ta riffs global trade war. we start import tariffs on chinese imports go into effect over the summer. that has pushed up the costs of many material

us president donald trump has escalated his war of words against america's central bank, calling the federal reservemade during an interview with us media outlet fox business and renew the president's repeated criticism of the fed for its decision to raise interest rates. the international monetary fund says its managing director christine lagarde has deferred a planned trip to the middle east, skipping a major investment conference in saudi arabia. several senior executives from european and american banks and corporations have also withdrawn from the conference since the disapperance is journalist jamal khashoggi. ibm's turnaround plans are slow to bear fruit. the company reported worse than expected revenue in the third quarter of nearly $19 billion, mostly as a result of slowing software sales. ibm has been trying to refocus on cloud computing and analytic services as demand for hardware declines. the united states tops the list of most competitive countries. it's the first time in ten years that america has come first in the highly regarded world economic forum global survey. the us edged out s

spent buying stock on the japanese market to keep it floating and now they had a the federal reserve bank here in the us is talking about when the next crisis hits they're going to start buying stock in the open market met your thoughts well you know this is this is a big problem central banks should be doing ninety percent of what they're doing right but we've got our you got economic charlatans and we'll here that are going to run us back into a ditch and then when they create a problem you go to the same guys you know it's like einstein senate. insanity is doing the same thing over and over and expecting to get a you know different result obviously the results are going to be the same but we need to do is think out of the box and get different people to try to change the program you know we have too much debt too much credit levers because the crisis right now we've got more debt more credit more leverage than we had back in two thousand and eight why would anybody think it's going to end or it's going to end catastrophic student loans are at an all time high the fault rate is an all time high it's c

seeing some tension start to emerge between the market pricing and federal reserve interest rate hikes and whether the fed is telling us they are going to be. even this week, when that hike comes through. i am wondering where the market and the federal reserve is an how that spread reconciles? market havend the gotten much more closely aligned in the last couple of months than they had been at any time in the past. now it looks as though powell is actually trying to dial down the reliance on this sort of forward guidance. trying to paint a steady picture going forward. we still think the fed is there but it is deeply out of the money in that you really are seeing the strong economy, decent inflation, but not really an immediate threat of inflation breaking out to the upside as we go into 2019. i would agree very much with marilyn that there are a number of other forces that are going to push the fed's hand. we think the tax reform has been a tailwind that will begin to fade. trade is already be getting cause some supply-chain disruptions. among other things at the difference between the performance of the equity market

government spending, along with what is happening with the federal reserve, we are on a collision course, and this eventually will blow up on us. liz: it looks like the federal reserve is on its path and it is not going to move away from it. it wants to continue to raise rates. you just saw 84% chance of another rate hike in december. that's the fed funds futures. as we put up what you see here, there are a couple of things that you see as sort of these icebergs. the trade wars, which i would say are so far a little spotty when you talk about is it really hurting companies today. yes, we heard from polaris and indian motorcycles, they are saying sanctions and tariffs are killing us. general motors has said it hurt. are you expecting there will be more of a meaningful group of businesses that suddenly say we have got to lay people off because the trade wars are hurting us? >> i think as time goes on, i think we still have time. the worst of the trade wars hasn't hit us yet. the president will be meeting -- liz: that's a headline. the worst of the trade wars has not hit us yet. we believe that. >> that's right. the president is

jonathan: the federal reserve is showing us that they are a little more concerned about financial stabilitythere are two ways you can do this. you can keep hiking because you are afraid of bubbles but then if you keep hiking, you can cause financial stability issues elsewhere in the economy. are they doing the right thing at the moment with this approach? matt: yes, they are absolutely doing the right thing today. the question is really, will these continued actions be right tomorrow? i think it really comes down to, as you said, financial conditions in the neutral rate. most people are talking about the neutral rate as if it is stable, but it is not. it's very hard to measure and it changes over time. it is our belief the neutral rate today has been raised temporarily by things like the stimulus bill, with the new tax bill, like what other central banks are doing. the problem is, as the impacts fade, kathy got it absolutely right -- as those impacts fade, the market is going to react differently to fed hikes in the future. we see a couple more hikes, two or three, but if those influences f

us it is firm. much of that is the federal reserve but it's hard for me to use them as a scapegoat. if there's a problem with the federal reserve it's that they held rates too long. this is it it really wants to start galloping. it is only a matter of time. >> thank you, rick >>> we have a take on the market action over the last week. >> so the outlook for the market in my opinion isn't nearly as good as it was you probably don't gate peek of substance until it is in sight traditionally that is how it worked i think we have had a bulk of the good gains >> yes good afternoon to you. thanks for joining us. what is your general take at the moment in terms of the key levels you're watching for an indication you're likely to move moving forward >> a lot of pain in the marketplace. we are watching in and keying in on the 2,800 level and the s&p cash indeks. that was an area of overhead resistance for a majority of the year and then the last sprint we took that out. it was ultimately becoming now a false breakout i think that investors have to be eyeing that number and be very careful if we

suffering on thursday financial commentator jim rogers gave us his thoughts on the volatility we are seeing through it is the federal reserve did. well crazy a few years ago drove interest rates down to zero which is never happened in history everywhere else in the world they went to zero so yes they went crazy central banks everywhere and did something which has never been done and drove interest rates to zero and below zero now they're trying to get sanity back and raise them to the proper level america's the largest creditor no largest debtor nation in the history of the world and america has the largest economy in the world so of course what america does has an effect on other people but you know it affects japan japan it's the third largest economy in the world it affects europe europe is a huge economy so if america has a problem everybody has a problem or everybody who deals with america but especially if there's a trade war going on and it seems there is and will be more that affects everybody whether you were involved in the trade war or not i that does it for me i will be back in won't say thirty three minutes wit

federal reserve? >> i can't answer that but i feel the federal reserve has a large amount of autonomy that is granted us and the president through the federal reserve act. we're supposed to pursue monetary and financial conditions that support maximum employment and price stability i believe we've done very well on our dual mandate over the last few years and this natural adjustment of policy up a little bit above some benchmark that might be viewed as neutral. i think it's what we do. and we let people comment. and we'll, you know, jay powell will go to congress. he goes out in public. he just did a large number of media events to explain exactly what we're doing so i think our communications are in line with the policies that we're prescribing i think it's important we need to be accountable. and i think that jay powell and the fed are doing a good job with that. >> i want to get to becky in just a second. but i want to ask you about the recent market selloff. 800 points how do you view that is that a concern for you that there's over-valuation in the market and potential economic effects from the sel

can the world live with the federal reserve? that takes us to our question of the day. global right continues roiling markets. fall?r will the s&p will we have a correction? will we see what we saw in february? join me on tv . get your point in. anna and myself will bring that to you. let's get your business flash. juliette saly is standing by. has won avia tentative ruling slashing the lion's share of a $289 million verdict in the first trial over roundup weedkiller causing cancer. the judge is considering a new trial on whether the company is school peepers illness. a judge indicated that she is inclined to set aside $250 million in punitive damages against monsanto, which via acquired this year. says it is the victim of a fraudulent effort to raise national security concerns about its pursuit of ca technologies. it says the u.s. defense department has concerned a memo circulating among lawmakers on capitol hill is probably fake. it is unclear whether the document is designed to derail the deal or move share prices. rand paul is calling for a national security rev

so crazy, loco, out of control, all of those are the adjectives that the president uses to describe the federal reserve policy of raising interest rates the president frustrated he doesn't want to see the economy stall or the dow stall into the midterm elections in november that's the big frustration for the president that's causing him to speak out the way he has been but larry kudlow and cnbc suggested there is one line the president isn't crossing bursting through a number of presidential norms of the past but the one line he is not crossing is larry kudlow says the president is not directing the fed to change the rate policy he is not directing them to slow down that's the line that larry kudlow suggested this president is not going to cross because, he says, the white house respects the independence of the fed. the president spouting off here but retaining in image of an independent fed. >> he actually said in one of the interviews this morning, the president that is, that he would not fire powell, which i think is an important message to the markets as well. right? >> sure. >> to at least say, he

but as you know, that's not something that we as the federal reserve can mandate, but we are using a lot of those powers that you described, our convening power, and our exeritreaing power and there's been a lot of progress towards that and i think that in the next short period you'll see some further concrete steps that have been catalyzed by federal reserve action in the private-sector that move us to a real-time payment system. i think that's an important goal for us. >> i would like to follow up. just the pace of this seems to be very sluggish and in the meantime a lot of people are paying a lot of unnecessary fees and a lot of people are collecting a lot of fees that they would not be able to collect absent the lack of real-time payment system. mr. otting i would to follow up with you on your sort of investigation with respect to some of the wells fargo practices, specifically i think it was july of last year that we discovered that about 800,000 people who took out car loans were charged for auto insurance they did not need. and nationally that pushed about 274,000 wells fargo

jason: tell us about the uneasy relationship between the federal reserve and the white house.tine: he was observing a meeting between fowler and martin, famous for calling the fed's job is to take away the punchbowl before the party gets started. trying toesd johnson influence the fed to prevent them from raising rates. been reappointed by reagan in 1983. in 1984, an election year, volkecker had a surprising experience. carol: you say it happens in the library? walk us through. christine: volcker remembers being asked to see the president, not in the oval office, which he thought unusual. his memory was that he just saw reagan and baker, then chief of staff. seeming ars reagan bit uncomfortable. he had been a big supporter of the fat and good about not criticizing them. -- fed and good about not criticizing them. year.t's ann election reagan says nothing. baker speaks. volcker saw baker say, the president is ordering you not to raise interest rates. he had seen johnson, who had no trouble twisting arms. carol: volcker had no plans to raise rates. now he's in a predicament. ist

federal reserve pushed us over the brink with rate hikes. obviously there were a lot of other problems but if the fed had been more dovish the crisis would have been much less severe they couldn't see the rot underneath back then and the rest of us paid for that sound familiar now i bring up these four examples because they are so darn relevant. we have our own slow motion train wreck and it combines some of the worst characteristics of those four '87 machines ran roughshod over the buyers now toal algorithms and etfs down for 16 out of the last 21 sessions which is like october of '87 except this time we only have two more days until we get to november. the dotcom bomb in 2000 went off because of reckless underwriting second the whole thing collapsed. when i told people to get into cash in october of 2008, when the dow was around 10200 i got a lot of hate mail the conventional wisdom was i was being insanely irresponsible. march of 2009 and now 1998 i screwed up and misjudged the resolve of the fed a few days before greenspan's rate cut, i

us dollar the ship but so has almost every currency in the world. the dollar, since the start of debris, is one of the best currencies in the world and that is because the federal reserveng up central bank in the us, is putting up interest rates and it is one of the few jee ten up interest rates and it is one of the fewjee ten central banks be sheer to be doing that progressively. if the us believes it so progressively. if the us believes it so vehemently that china is manipulating its currency, why doesn't just manipulating its currency, why doesn'tjust come out and say it? while there nervousness —— nervousness about putting it on paper? it would be a notch up in diplomatic tensions and it would be seen diplomatic tensions and it would be seen that they would take further action in the currency markets, but it has to be said, the us treasury, this is a regular report on the last time the us treasury brought out this report, it said it was watching various different countries. it wasn't naming any particular country but watching various different ones and on the list were countries like japan and also germany, another exporter and what the us is effectively saying is

us president donald trump has escalated his war of words against america's central bank, calling the federal reserve were made during an interview with us media outlet fox and renews the president's repeated criticism of the fed for its decision to raise interest rates. the us trade representative's office told congress on tuesday it intends to open trade talks with the european union, the united kingdom and japan. under fast—track rules, the united states cannot start talks with the eu, japan and the united kingdom until 90 days after notifying congress. fantastic. thank flybe's shares are down some 27% today in london, it has issued a profit warning blaming weak demand, a weaker pound, and higherfuel prices, the perfect storm for flybe, a lot of that is to do with brexit of course and the impact that that thatis of course and the impact that that that is having on the pound. it estimated a loss of 12 million, more than 3.5 million it had predicted. soa than 3.5 million it had predicted. so a real warning coming from flybe and the shares down nearly 30%. theresa may is expected to urge other eu lea