and thank you to federal reserve chair yellen. the 2008 financial crisis inflicted staggering damage to our economy. unemployment tops 10%. home closures is placed millions of families. entire industries are on the brink of collapse. congress responded by passing the most comprehensive overhaul of our financial system since the great depression, the dodd frank wall street reform and the consumer protection act. the act interested significant responsibility to the federal reserve and directed them to improve its supervisory program, so another crisis of such scope will never happen again. recognizing that the federal reserve failed to apply appropriate standards to large banks, congress erected the fed it to impose enhanced to ensure that no large bank or group of banks, could again endanger our economy. i am eager to hear from chair yellen on the progress of these reforms. along with a description of how the fed is using the flexibility embedded within dodd frank. permittedpecifically the fed to differentiate among companies on an

chair yellen: we have done our own analysis. one otherd issue, yesterday we passed a bill to deal with the specific designation for banks. in the bill, we have guidelines that you actually used, the fed uses in their own analysis. concerned about the way ith discussion went wit respect to the ranking member. we try to tailor a supervisory program that we think is appropriate, given our full understanding of the risks. >> this significant ones you believed need to be used to provide the guidelines -- so make the designation. chair yellen: we look at those factors, but we tailor an entire program that is specific. youn previous testimony agree to that those are important criteria and supported the bill. time for the the gentleman has expired. the chair recognizes the gentleman from massachusetts. ansome of us do use exclamation point at the end of your name. some of us use hashtags as well. mr. chairman: as long as you spell it right. >> thank you for being here again. it is a pleasure to see you. i have a few questions and we wil

chair yellen: that's correct. but i would say that he's done an outstanding job of leading our work in this area. and all of us do need, including me, need to be involved. mr. hurt: you believe the fact that this important role and congress' important role in the appointment of that, does that reflect, do you think, the president's view of whether having a balanced and effective supervision, having somebody as volcker said, who is dedicated to this, striking this balance, does that reflect the president's priorities? chair yellen: you would really have to ask the white house why -- mr. hurt: considering dodd-frank is the law of the land at this time. is it appropriate for you as chair of the fed to press the president to fill this position? is it appropriate for you to do that? chair yellen: i think that we -- as i said, i think that we are carrying out our supervisory work in a very thorough and thoughtful fashion but would welcome nomination to the position. mr. hensarling: time of the gentleman has expired. the

yellen on the hill today.ks to the house financial services committee and the macro data has been relatively supportive. adp in line. the export data good. >> i know i'm not a guy who says what fed should do, shouldn't do, if they're going to make a move, you have a decent situation brewing in china. europe getting better. i don't think the fed should raise given the weakness in manufacturing. if it happened, it won't be the end of the world. >> interesting. >> i'm changing my posture. i was more concerned about foreign than now. i like what's happening with the consumer in china. >> maybe that's one reason expectations are above 50 for december. every meeting is a live meeting. opening bell here. a look at the s&p. at the big board, new york taste. a culinary feast on november 10th of more than 40 top restaurants and bars. we see marcus samuelson up there in the red vest from red rooster. at the nasdaq, ss & c technology, a provider of software and software enabled services. >> marcus samuelson, fabulous. >>

janet yellen continues her testimony.ll follow that throughout the next few hours. ♪ betty: live from bloomberg headquarters in manhattan, you are watching glimmer television. i'm betty liu. e: we start with election day results. in kentucky, voters elected the second gop governor in four decades. have dominated federal elections in the bluegrass state but democrats have maintained control of state government. in mississippi, phil bryant easily defeating two challengers who ran low-budget campaign's s. a daunting task ahead for terry mcauliffe. the state republicans beat democrat backed challengers to maintain a firm grip on the lower chamber. on is therats focused gop was successful, holding onto a 29-19 majority. ohio voters decided not to legalize marijuana. neither for medicinal norv for recreational use. some backers opposed the plan because the plan to grow it imposed a monopoly. a quarrel between china and taiwan. investors had a six-month peak today -- taiwan's exchange closed at its highs level since late july. i

anna: janet yellen yellen said that a 2015 rate hike seems like a possibility still. federal reserve chair said a december lift off remained a live possibility. guy: the bank of england super thursday. the bank is due to announce their decision on interest rates. governor carney will also present the final inflation report of the year. facebook has knocked out another quarter of estimates. the world's biggest social network reported third-quarter sales of $.5 billion, more than one billion people use facebook everyday. q3 earnings are out. i do not see detailed earnings, but i do see this german company is raising its four-year guide. toprofit increasing 20%, 2.30 4 billion euros. before your guidance raise will be what people focus on. growth margin increase of 48.4%. headlines guy: where we stand with markets? reporter: still looking at asia. erasing losses from earlier. the big focus is the shanghai composite. i have the chart. have a look. above close more than 20% the august low. heading for a bull market. --saw the shanghai composite will it enter a bear market.

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i'm pleased to see you, chair yellen. and unlike the chairman, along with many of my colleagues, we've heard from regional banks about the comprehensive capital analysis and review, or ccar stress tests. and they have complained that they're not sufficiently calibrated to the unique profile of larger holding bank companies. they focus on specific banking activities. we've also heard that the filing of living wills is cumbersome for banks and not easy for the fed process. i've not heard that they're told not to talk to us. they talk plenty and we're listening. congress is considering legislation that would do severe damage to the new standards the fed has implemented and their ability to identify and respond to risk in the future. so can you discuss why hr1309, a bill debated by this committee yesterday which addresses this topic would be severely damaging to the feds' ability to respond to systemic risk on an agile and comprehensive basis? secondly, will the federal reserve commit to doing further tail tailoring using exi

down towards that 108 level, down through 109 on the comments by yellen. of course, stocks, scott, as you know, weakened as well. it's been good for about a nine or ten point fall in the s&p from when yellen made that remark about december being a life possibility. scott. >> dollar surging. crude. it brings me back, steve, to your survey just recently, which showed that people didn't expect a hike this year and also said they didn't believe that it was priced into the market. it makes you wonder how markets will genuinely react if and when a rate hike comes in december. >> that's a great question. i will point out that the survey said 49% expected a hike this year. the other half did not. it was a very divided market on the one hand. what else is interesting about the survey that is worth pointing out, so the, is that how much our survey responded the domestic economy has been solid. all of the threats being from abrud, and yellen just echoed in in that sound i just played there. that she sees the u.s. economy as solid. that's a bit of an upgrade from what

yellen had to say.tocks enter comments, the december meeting his life. -- is live. the fed is data dependent, as always.

as yellen said, the economy looks like it's growing at a fairly descent pace. not sensational but descent. the soft batch observed in september is probably over but the decisive event will be tomorrow morning when the u.s. payrolls come out. because if we get another weak one the rate cut will be deferred but the chances are in my view we'll get a strong u.s. payroll tomorrow. >> what's strong? 200,000? >> around 2000 or possibly 200 plus and also importantly some revisions to the previous two months which were very weak and looked to me and i think to a lot of people as if they may have been some kind of statistical aberration and the timing of labor day late this year or something like that. if we get an upward revision that will calm down the fears that china, for instance, was lowering the world economy. >> the fed has taken that out of their statements. no longer watching international markets or economies and i was watching that testimony live yesterday with janet yellen and when she said that, to me, it didn't sound different to what she has been saying

we had janet yellen on capital hill. give us the latest metrics, productivity out today, we're looking forward to jobs tomorrow, the economy doing well? >> doing ok. the u.s. economy and the global economy got rattled by the market turmoil of late august and early september. the question of how long does it take for that negative impulse to fully percolate through the economy, i don't think it has fully percolated through the labor market yet. if you think about it, the september jobs report, the last one we saw, that was tallied as of september 12. that did not give hiring managers a whole lot of time to process what was happening and to understand that this was just a fleeting shock to the financial system and therefore they could respond accordingly. i think instead that had a bigger impact on the october numbers which is what we get tomorrow morning and so the last two months we have averaged roughly 140,000 jobs per month. i think that potentially it's going to get worse before it gets batter, so the good news is it

yellen had to say. julie: when it comes to stocks enter comments, the december meeting his life. -- is live. the fed is data dependent, as always. having less of an effect on stocks that it is on other asset classes. stocks have already begun to trend lower. not very steep declines across the board. we will get more into what is affecting stocks in just a moment. just to run through the other places where we are seeing in effect -- this is the fed funds futures probability. pricing in a 60% chance that we could see an increase in rates at the december meeting. it was 52% this morning before yellen began speaking. you can see the trajectory of the increase, changing expectations. this is reflected in what we are seeing across rates. the two year yield is the highest since april of 2011. 0.81% getting yet another basis point today. the 10 year also seeing an uptick in yields. the highest in seven weeks, 0.24%. we are seeing the dollar gain along with rates. touching its highs since april 15, up less than

i want to do asset classed for p are we heard from janet yellen today.estifying before congress and she once again theerated december is on table. she called this a live possibility in terms of an interest rate increase depending on data. we are seeing stocks closed near the lows of the session but not a declines across the board. we see the expectations for the rate increase in december go up. look at my bloomberg terminal. probability. 58% chance of being priced into the futures of an increase in the december meeting. we can see the trajectory, the dip and then they increase following the fed statement last week and that her commentary today. this morning, the probability was at 52%. picking up by six percentage points. we see significant movement in the bond markets today. the biggest yield since 2011, .81% today. sheng a clear uptick as made those comments. similar movement in the 10-year note. huge movement but enough to put 3%, the highest and seven weeks time. the dollar also gaining on the day, along with rates touching their highest since april

>> there's a possibility. >> you sound like janet yellen. >> i sound like a central banker. all i'm saying is if interest rates come it won't be perceived badly i believe over the longer term in the market because if interest rates are rising, you have to have a normalize interest rate environment. people have to earn a descent amount of money on their savings. companies can still borrow at a practical level but the key i think, the worry about the misconception is that it will hurt the market but no time since 1970, i look this morning and i looked on bloomburg this morning and they actually hadn't seen, there was no market correction from the first rate hike since 1970. >> right. >> so a rate hike i don't think will actually hurt the market. lit bring back capex and it will actually sort of normalize people's expectations and the economy can continue to grow nicely. >> historically where the rate cycle begins is good for equities. >> patrick spencer. now before we go, what's a day without something from the donald? donald trump. nbc by the way has pulled three promos for h

janet yellen says that the door is open for a december rate hike .atility matter more than the data? volatility is a proxy. janet yellen and the fed seem to be reacting to market conditions than data. joe: how do you quantify that? >> the fed should be following , and here is the bond market volatility index. this is a rolling regression of their coefficient, how they react overtime. it is more and more negative. they ease in the face of on market volatility. push you the market around. thatosses violating cardinal rule that every young economist has learned. that makes it more disturbing that the boss, ultimate insider, is violating these rules. bankste shouldn't central be influenced by markets? companies are influenced by it. they delay mergers, don't hire workers. so, because the markets finance what goes on within the corporate. it is the market that looks to the fed as an anchor to where monetary policy is going. feeding backot be onto policy itself. that is what we are seeing. joe: was there a moment that the fed switched? yellen said we will

in some ways, i wonder if janet yellen, is this too much talking?g to raise right now? canada is a mess. new york is a mess. we are barely growing. we have no inflation. >> you are in the 5050 category. >> they do talk a lot. i noticed that. i thought he had mastered that. the chairman. the champion of all time. trish: janet yellen. she learned her lesson. she said a little too much. not a lot of points. >> the fed is dominated by academics and government bureaucrats. janet yellen is the art type of that. he these are not folks that ran banks. unfortunately because of that, not a lot of action. >> i also worry that a lot of academics think that they can tinker with the economy. they can manipulate the economy. i think that this fed that has become increased and powerless. >> i concur. central banks are actually making it worse. they are creating global deflation. you talk about the u.s. not having an inflation problem, i think that that is certainly true of the rest of the world. central blank controlling the economy. we need to break free from this

also, janet yellen wasn't supposed to testify today. the head of supervision was supposed to testify. but it's a post that was supposed to find an appointeeing and the president has that role. five years we're waiting. five years. so i found that fascinating. as far as will janet yellen do it, you have six words. i have three. just do it! i'm sick of all the verbiage. either you do it or you don't do it. it's probably a bad time to raise rates. i don't think the economy is better now than it was before the september meeting. but rates aren't at the right place. so you have to wait. rates shouldn't be at zero, but it's the wrong time to raise them. janet, you're going to have to figure that one out on your own. >> it wasn't just gellen's team, by the way. what do you do with energy here? >> with energy, you need to see the read-through. that's showing that global growth is slowing down. some of the other interesting data that came out today was european pmi numbers. they're growing at the fastest rate they have in six months, going back

chair yellen, welcome back to the committee. we routinely hear from president obama and senator warren that action was the principle cause of the financial. the threat to financial stability posed by too much regulation. let me take as an example the clo market collateralized loan obligations. this market provides more than $400 billion in financing for hundreds of american companies that employ more than 5 million people. they are a crucial source of funds for many companies that cannot issue bonds. clos also performed extraordinarily well during the last 20 years with a nenlg i believe default rate. they performed better than high grade corporate bonds over that same period of time. unfortunately we are hearing from market participants that the risk retention rules promulgated by the fed will cause a contraction in the clo market and credit crunch for american companies. alternative sources of funds are available through hedge funds and the like. but they are not a stable source of funds and they will certainly demand a much h

yellen sets the scene for a december rate hike. the federal reserve chair hit a hawkish note suggesting that a 2016 rate hike was still on the table. >> what the committee has been expecting is that the economy will continue to grow at a pace that is sufficient to generate further improvements in the labor market, and to return inflation to our 2% target over the medium-term. informationing supports that expectation, our statement indicates that december would be a live possibility. but we have made no decision about it. chair they be prepared to go live in december but one democratic congressman advised that the gods time for the left off might be more generous. >> god's plan is not for things to rise in the autumn. as a matter-of-fact, that is why we call it fall. nor is it god's plan things to rise in the winter through the snow. god's plan is that things rise in the spring. with thent to be good almighty, you might want to delay until may. correctly,emember janet yellen has a little that board so, brad sherman, put your applica

if yellen is helping the economy just say that. she's not. the fed; by definition is weakening the economy by intervening. i would say the role is shrinking. it's not presumed the fed stimulates growth. >> that's pointing out the fed can create $4 trillion in reserve. a lot of that went to government debt and help with government spending as the bank rules and regulations locked the reserves. >> no doubt we'll see more about the fed in this tuesday's republican presidentialle debate. watch it on fox business network. this is the only business network for all of america. we'll see you there. coming up here, the "cashin' in" gang ready to roll at the bottom of the hour. eric, what do you got? >> if you don't agree you don't deserve your job. some on the far left want don lemon and "the view" co-host raven simone fired over what they said about this controversial video. is this out of control? and a jobs plan you may not like. why it's easier for ex-cons to get government work. see you at 11:30. >> next on forbes, critics have been warning us ab

his target is fed chair janet yellen. mr. my opinion, janet anden is highly political not raising rates for a specific reason. obama told her not to because he wants to be out playing golf in the year from now and doing other things and he does not want to see a big bubble burst during his administration. janet yellen should have raised the rates and she is not doing it because the obama administration and the president does not want her to. david: john joins me now. saying again what he said before. he has made this accusation before. hypocriticaleems of donald trump. yes, donald trump is not a big fan of janet yellen. it is interesting. he questions the political motives of the fed chair. whethert clear to me the rational or policy driven underpinnings those rp or it is he actually and inflation hawk? that no other economist or forecaster can see? there is a debate about race and when we can start to tighten. because of the way it comes out, we never get to come out and drill down. to what his theory of the case is with the

janet yellen suggest a 2015 rate hike -- rate rise is still on the table. bowl to bear, the shanghai composite" it percent -- including the six rate cut in the year. governor, mark carney used super thursday. he warned it would continue to push down inflation. that was the week that was. it is job stay in the usa. 185,000.ons are the details will be out at 1:30 u.k. time. --omberg first word status first word strategists. and manus cranny. round of applause for you. questionble today, the , does it need to be good enough to give them conviction to hike in december? >> this is the most important jobs number since the last one. there is an element of truth to that. 50%, the stronger number could get us up to 70%. if we get a weaker number, we could be down into the 30% -- the 30's and 40's again. they need to have the market buying into this before they actually lift off. yellenn: manus, if janet that there would have a running mate for a rate hike next year, -- didn't he?y mantle as he spoke to us, yes. i think you put it quite nicely -- manus: as he spoke t

and i listen to the clip, i heard what janet yellen said today. i also find it almost laughable that people pay attention any more. like why is she even on tv and who is listening to her. the fed has been wrong -- no one has ever been this wrong. it is like a football team going 0 for 16. and so with fed projections about everything, from gdp to what rates would be, they have been consistently wrong, like a winless team in the nfl. and i think that, you know, the proclamation that anything is possible but we haven't made a decision is more no news. and for markets to move on that, it is irresponsible for her to say anything, right. so i think that investors today, from my perspective, when i look at it, for myself, i need to make investments rather than bets. like i don't want to bet on whether she will move rates or not. i want to win either way. i want my retirement savings to do well either way and i think investors need to think about protecting themselves from both the possibility that we're in a japan style economy for 30 years where rates d

it has a lot to do with changing the world for janet yellen.is is too much focus for janet yellen. tweedy enough? i wore this for you, francine. francine: it is very 1930's. i like it. i hope the data is better than that. brendan: a crucial reading --vonnie: a crucial reading on the u.s. economy. the unemployment rate is expected to inch downward to 5%. janet said improving economic data would be a live possibility. u.s. is expected to announce tighter security steps for international flights in reaction to the russian airliner that went down in the egyptian desert. tourists of british were stranded in egypt after flights were suspended in the area. awarentelligence has been for some time about the security issues in the region. was issuedce 2 earlier this year that raised the floor on u.s. aircraft that are operating over the sinai peninsula. u.s. security officials have and have beenare taking steps all along to address it. francine: the russian airbus crashed after taking off, killing all 224 people on board. at least 15 people are dead and

gary: the stock market was lobbying janet yellen very hard to raise interest rates. you were very vocal that you thought the fed should not raise the fed listened to you, so are you happy with what the result was? not in the sense that you wish they would have to be dealing with this, but did the fed did the right thing? sec. summers: i don' t know whether the fed listened to my advice or not, i certainly thought that it would be a mistake to raise interest rates in september. the fed did not raise interest rate in september, and i think the global health economy as a whole is healthier because the fed did not raise interest rates. i think you tap the break, or his brakes, when one of a couple of things is happening. when there are signs that inflation is really rising and getting out of control, i cannot see any of that in the data. when there is a sense of financial euphoria breaking out, perhaps you could make that argument last spring, but you can' a sense that the economy is overheating, and businesses can fall -- fill all their order books. that is not the sens

carney or janet yellen's actions with the real economy?t will they do to the real economy with any policy shift that they might make? mr. magnus: my hunch is that actually the initial move from not have awill genetic effect on the real economy. giganticot have a effect on the real economy. the start of an interest rate rising or interest rates cycle, which go substantially further than anyone thinks at this point in time. would becase, that rapidly discounted into bond yields, credit spreads, and so on. that could be damaging. i do not think that will happen, particularly given the inflation environment for now looks to be so well contained. i do not think it is a restraint on the beginning of the rising interest rate cycle. we will see. i actually believed over the next couple of years we may be surprised by inflation -- not hyperinflation, but on the upside. at the time being it is contained. george magness with us for the hour. next we look at the equity markets. the vix 15. we need wisdom from brian belski. stay with us. francine lacqu

good morning, miss yellen. when you were here in october, we had an change about the lauft subpoena we made to the fed. you were unwilling to comply with the subpoena. however, two weeks ago you did comply with that lawful subpoena and we are grateful for your cooperation with the house oversight committee. in your cover letter, when you provided those documents, you stated as chair, i implemented the practice all suspects material, security breaches in information. why is that your personal practice and why isn't that the policy of the fed? >> well, the policy of the fed, it was adopted back in 2011, i believe, stated that if the chair was alerted to a breach, the procedure would involve asking the fomcs general counsel and secretary to review the matter and to decide whether or not it should be referred to -- >> i'm aware of that. every january, don't you meet on the program for fmoc information and you set the policy every year. since you have been chair, you haven't made that the new policy, you only made t

janet yellen has financed that failure.use she's let the failure continue and the money printing doesn't work any longer. donald trump got it right. janet gel enthe democrat from berkeley got it right. and you understand what donald trump is saying. his statements are short and to the point. he doesn't use jargon. you think he's going to drone on about qe or -- that's laughable. of course he's not. he goes right at it. he's not raising rates because obama told her to not. everybody understands that. i'm not endorsing trump, but i like to watch the guy. he says stuff that other candidates avoid. and he says it in a way that is entertaining. i don't know whether he wins the nomination, i don't know if he'll be the president, but i do know this. he's right about the fed, he's right about obama's failed economic policies, and he's brought direct engagement to american politics and that is a very good thing. thank you. stuart: you know, if you had money in an oil stock, and you held that stock recently, you have lost some money.

it is opposite message from what janet yellen is sending now. we are ready to raise rates. markets should begin to price that in. the bank of england does not want the markets to get too far ahead of them in placing -- in pricing rates and he is pushing back suggesting it will be to the 16. they are sending a similar message. betty: who was a more effective communicator? mike: it looks like both have had about the same success because we have seen the dollar and u.s. bonds repriced after the yellen, fisher, and dudley comments. the bank of england had a major impact on the currency today and that is one of their focuses. they said in their statement if the pound gets too strong it not only imports inflation but hurts growth prospects. they managed to knock it down significantly against the euro and major trading partners across the english channel. betty: what goes into their monetary policy decisions? mike: they are tied to a single mandate unlike the dual mandate with the fed. focused on prices. they have a target of 2%. that is one of the thi

janet yellen speaks.e tail end of the week, with jobs day and the all-important fed decision. than the commodity story -- opec's meeting in vienna. all of these stores are heavily late, with massive market applications. let's kick this around -- jon ferro joins me, patrick armstrong still with us. jonathan: it's a big week when the fed chair slips under the radar. she seeks this week -- put that in the diary. almostlar is at 100, everyone you speak to is short euro-dollar coming into december. the have to pronounce moves lower. i wonder what is the upside. one,how do you trade this given the fact that you are he had the christmas present? >> a preannounced surprise. [laughter] >> it is going to be a slower, more gradual -- it will be a steady appreciation of the dollar versus the euro. significants tromp positioning on institutional and retail sides. the billions of dollars they are throwing around -- guy: the margin for error here has got to be tiny. >> you have to have no faith in the central bank thoug

he suggested that yellen consult her husband about what to do. in her response, yellen did not mention her husband or nader's sus swr suggestion. thank you for coming in. we saw volumes thinning out in yesterday's trading session were a little bit lower. this week we have to disreforward given that it's the holiday short week. how do you want to be positioned going into the final month of the year? >> constructive on the u. s. equity market. if you look at the big picture from our perspective the u.s. consumer is healthier. basically the less am of debt they've had in ten years per household. the banks have completely recapitalized. they're great balance sheets and they have come through a very tough period from a regulatory standpoint and now what you're looking at is average valuations. 15 times forward earnings for the s&p 500 versus 16 times the last 20 years. so overall with growth bouncing around 2 to 4%, stocks, average valuations, consumers are healthier, we're constructive. >> but haven't markets already bounced back enough. october is v

you heard janet yellen talking about the u.s. economy. she says it may be strong, others tend to disagree. still, the u.s. economy will be a huge focus and the relative strength. then the ipo market. a lot of larger ipos are now trading at or below their initial offering price. perhaps signs of weakness there. and then transportation stocks as well. people are moving stuff around but maybe not as much and not as robust as some would like. transports a leading indicator, and, of course, mandy, we just talked about the u.s. dollar and what's happening with currencies. if the dollar strengthens appreciably from here you could see more headwinds for the large multinational u.s. companies, mandy. back over to you. >> thank you very much for the new bricks there. do you buy this market or sell it? joining us are ben willis of princeton securities group and matt tuttle. thank you for joining us. ben, we're in spitting distance of those record highs. do you think we're looking a little overstretched, at least near term. >> for near term, yes, it'

back then, janet yellen was teaching at university. mario draghi was a senior civil servant in the italian finance ministry. europe's benchmark break was set by germany. that months, the fed boosted benchmark rates to 3.5%. the buddhist bank cut its discount rate by half a percentage point. cut itsundesbank discount rate by half a percentage point to it who better to discuss these issues then my guest. the founder and managing director. richard jones is in the house, from the bloomberg "first word" team. we heraard from you before. you are listening to draghi. nothing new but dovish. that is what we wanted. >> completely in line with what -- the next 12-18 months. we have seen signs of revival in europe. if you look at credit cycles and headwinds from fiscal policies waning, all of this is quite positive. yet, at the same time, the global environment is not very supportive. china, e.m., look at the impact china in europe. all of this put together means that if we have a rate rise in the u.s. in december, will it be a little bit too lat

--ments from jan yellen janet yellen saying that research is needed on unconventional policy tools and she would not be drawn in by talking about -- we heard from bill dudley and vice chair stanley fischer. we heard from jim bullard so a lot on tap. it is not just u.s. central bankers grabbing the mike. mario draghi also kind of spoiled the party. earlier, made the speech before lawmakers in brussels. equities briefly rebounded but resumed their slide. the message was clear, the ecb may be ready to boost stimulus in december. date, we havee had and still have a clear rule. we do not discuss market sensitive information in known public meetings. monetary policy to be effective, however, it is important to meet market participants and also to hear their views. remarks,emainder of my i will mainly talk about two issues. first, our current economic outlook and the upcoming reassessment of it at our december meeting. --ond, as requested mark: joining us now to decipher all of that central-bank top, james baffert. james: thank you. mark: why are european markets impervious to his message? st

there she is, janet yellen. key fed officials speaking today , ahead of friday's pivotal jobs report. manus: welcome back. this is "the pulse." we are live on bloomberg tv, radio, streaming on bloomberg.com. japan post jumped at their debut in tokyo after investors flocked to the group's $12 billion ipo. the flotation is the biggest in the world this year, the largest in japan since 1987. for more, let's head over to tokyo where bloomberg's japan and korea managing editor is standing by. stockare quite phenomenal price moves. oversubscribed, but even oversubscribed, this is stellar performance today. >> exactly right. we knew that all three units were oversubscribed by between five and 15 times. we saw those prices rising in the market all last week. to see the kind of rises we saw today, we didn't even have trading for the first 30 minutes of the day because the offers were so lopsided. if you take all three market caps combined, ¥17.5 trillion, it would be worth about the same as cisco systems. this is a huge

chairman yellen, thank you so much for being here. i've been closely following the work of the fed and other regulators during the agrip pa process. i sent a letter a couple of weeks ago when a public outreach meeting was held at the chicago fed. i'm very supportive of the agrippa process and i imagine you're hearingful of the concerns i'm hearing from the banks in my district. in addition to the report that is mandated to be provided to congress what tangible regulatory relief can we expect as a result from this process? >> we are listening very carefully to the concerns that are raised in the hearings and in the course of taking comment in this process. and i'm very hopeful that there will be things that we can address and look to change that will reduce regulatory burden. an example of the kind of thing we're hearing, for example, has to do with appraisal requirements. that many community banks think the cutoffs are too low and make lending difficult, particularly in rural areas. i'm sure that's something we'll take a look at repor

what janet yellen was talking about was empty, growth and potentially inflation expectations leadings to think that rates could well rise in six weeks' time. the dollar did rally on the back of it, and the yields on two-year paper actually rallied as well as the underlying bonds fell a little bit on those rate expectations. >> so steve, speaking of employment, what role will friday's jobs report play i the fed's decision, do you think? >> amy, would you believe i've been looking at payroll for 27 years, and every single month it's been theey data lutely 184,000 jobs created is what is expected. if it matches what we saw yesterday from the adp, then that will give more confirmation that the market is pret tu rty t with a 5.1% unemployment rate. there are concerns about the participation rate and amy, the average hourly earnings which are not rallying as much as yellen would like to see them. back to you. >> steve sesedgwick, live from london we appreciate it. >>> still ahead on "way too early," dream team. the new prime minister of canada introducing his cabinet, and a lot of people a

janet yellen says the u.s. economy is prchlg well and if data supports an increase rate increase could happen in december. yesterday she testified, the hearing focused on the fed's regulatory powers under the dodd-frank financial law. >>> the committee will come to order. without objection the chair is authorized to declare a recess at any time. testimony on the federal reserve supervision and regular lafgts financial system. i now recognize myself for three minutes to give an opening statement. dodd-frank act requires the federal reserve's vice chair of supervision to testify before our committee twice a year regarding the fed's supervision and regulation of financial institutions. regretbly five years after the passage, no such person exists. president obama has been either unwilling or unable to follow the law and appoint a vice chair. we can no longer wait for the president to his job so that he with can be allowed to do ours. thus chair yellen appears before daus in substitution.hewith can ours. thus chair

this is such interesting nomenclature the way janet yellen put this.he is causing quite a stir today in washington after federal reserve choir testified that a december rate hike is a live possibility. we have a love one. her comments caused markets to initially sink. look at intraday chart. at one point the dow industrials were down 8 the points. acyclia back in the hour. do you own these? merck, goldman sachs, biggest percentage gainers. we're looking at yields on two-year treasury note. they hit the highest level in four years as people left bonds and fear of worrying that they somehow wouldn't get their returns back and are going into stocks at the moment. traders are pricing in the possibility of a december rate hike at 58%. this is according to the fed funds futures pits. they sit around and they guess what the chances are. it was just yesterday we were in the 40s, 40%. right now we're at 58% chance. suddenly that has moved higher. now we look at individual names are rocking and rolling here. the behavior of tesla's stock at this hour is an epic

janet yellen does not agree.uld see it being raised modestly but not by enough to get cit over the hump. the house itself controlled by the republican party feels differently and has a bill that wants to get rid of the $50 billion threshold altogether. alix: what did he feel was the disadvantage to these banks going forward? the issue to him is size. $100 billion is not big enough to propose a risk to the financial system. cit went bankrupt and had more than $59 of assets when it went bankrupt and it was a ripple in the financial system? no. causing no trouble to anybody but bondholders and shareholders and employees. for 10 firms, the 10 largest firms in america, or perhaps the 10 largest firms in the world, those kinds of restrictions make sense. risk properlyage below who knows where the level is, $500 billion, $300 billion, it does not close enough of a risk to the financial system to warrant the county it places and the degree to which it limits the ability to do business and serve customers. >> i find it in

there's yellen speaking.rence is called monetary policy implementation and transmission in the post-crisis period. >> i think that again, i don't think it's necessary to have a rate hike but it's now in the cards after last friday's employment number. you see such weakness throughout the economy. it is kind of odd that employment has held in. we're just -- we're going to be bagged by this. i'm very fatalistic about a rate hike here. it's sure not good for stocks. >> the bottom of your screen, she's not commenting specifically on the economy or policy. and she's not taking q&a. i think that's all we'll get from yellen for the time being. let's get the opening bell under way and a look at the s&p. at the big board today, a guest of ours on set yesterday, mcdonald's. ceo steve easterbrook along with members of their marketing team. at the nasdaq, vwr corporation. laboratory products supplier. celebrate its first listings anniversary. we'll get cisco tonight, jim. and we might hear from them more directly tomorro

janet yellen up here today before the house in the annual services committee.he says a rate hike is a possibility but donald trump accuses the fed to keep the rates low to help the kurds did ministration. >>. >> she is highly political my raising rates for a very specific reason because obama told her not to because he wants to play golf in one year from now and wants to other things and does not want to see a big bubble burst during his administration. >> those comments have been dismissed almost immediately he is really making a case how corporations benefit to the detriment of the middle class. so you said if we look at when janet yellen started we have a graph of that it is called the paper tune from. >> what you have to wonder stand is if you look at the chart of the left is the great financial crisis from a few years ago. the fed and the other banks started the easy money policy to prop up the value of financial assets. you saw how those are correlated then when we say raise rates you can see the big divergence so the point goes to why is it that people f

manus: janet yellen has reiterated that a 2015 rate hike remains a possibility.testimony before the house financial representatives committee in washington, the federal reserve chair said a december lift remains a live possibility. ms. yellen: what the committee has been expecting is that the economy will continue to grow at a pace that's sufficient to generate further improvement in the labor market and return inflation to our 2% target over the medium-term. and if the incoming information supports that expectation, then our statement indicates that december would be a live possibility. but importantly, we've made no decision about it. francine: how will fed action affect markets? i know i will wall joins us -- anil agarwal joins us ahead of prime minister modi's visit to the u.k. next week. it will be the first trip to the u.k. by any indian prime minister in nearly a decade. thank you for joining us. first of all, how important is mr. modi's visit? it is the first visit by an indian prime minister in a decade. what are we expecting to hear from him? there was

tell did not have to yellen to do it.eople who populate the fed today believe that if they can keep money cheap enough, long enough, it may kickstart the economy, but it doesn't, the evidence is in. we are at peak debt in the household sector. when it borrows, it's at least cycles it back into stock buybacks and deals. it is not causing mainstream growth, it is simply fueling speculation in the financial markets and the inflation of financial assets, so she should stop and trump is right and i'm glad he is putting up a fifth arm and saying the fed is out of control and that it's an election issue and that's what's wrong with the economy. stephanie: does that mean you are publicly backing donald trump? ivid: i'm not because disagree violently with his views on building a wall on the border and eating all the immigrants out and so forth. all of the bombast and so forth, i have no use for it. when it comes to some court issues that this kind of cozy washington wall street fed , which is creating a dreamland in america for th

yellen and comments pushed the stocks slightly lower. the dow lost 50 points and s&p fell 7 and the nasdaq lost 2. >>> retail giant target is closing 13 of its stores across the country. target says the decision to close the store usually follows several years of decreasing profitability. those stores will close on january 30th, 2016. target has nearly 1,800 stores >>> if you're a parent you know bedtime can be a challenge. that sleep time stall is a now the streaming video provider netflix has something that could help. new five-minute videos based on the animated series "dyno truck." it can be offered to kids who want just one more show. >> nasa wants to know if you have the right stuff. nasa is hiring. they are currently 47 active nasa astronauts. the new group will likely have a chance to fly on the two new commercially made spacecrafts and they will be considered possibly beyond. >> i know i do not have the right stuff. i did a flight with the blue angels once and i threw up and passed out. >> whoa! >> i think i am disqualified. jil