Listen: Fed, Bloomberg And Bloomberg Uber Technologies discussed on Bloomberg Politics, Policy and Power
"The Adriatic coast of Italy. I'm Christopher cruise. And I'm Susanna Palmer from Bloomberg world headquarters. Sources tell Bloomberg Uber technologies says quietly filed for an IPO the offering could be the largest initial public offering next year and one of the five biggest of all time. Uber's rival lift said Thursday that it had submitted its perspectives for an IPO to the US securities and Exchange Commission China's trade surplus with the US hit a record in November this even as overall export growth slowed mid waning global demand and uncertainty about a resolution to the trade war the trade surplus with the US was almost thirty five point six billion dollars, the US labor market moderated a little in November a development economists have been preparing for although maybe not this soon. Well job gains of one hundred fifty five thousand missile forecasts. And the prior month's reading was revised down. The figures are still consistent with a solid economic growth but analysts say slower growth and a recession or possibly. Coming at the end of next year. Diane Swonk chief economist at grant Thornton. We're going to see a slow down. The economy is slowing, but it's not slowing to a standstill yet the unemployment race in November stayed at three point seven percent. You stocks tumbled this week amid worries over Chinese trade and a slowing global economy. The Dow lost four and a half percent this week the s&p down four point six percent. The NASDAQ down four point nine percent with just three weeks to go in the trading year. The Dow is down one point three percent year to date. Yes. And p five hundred down one and a half percent. The NASDAQ still up but less than one percent in two thousand eighteen bond prices rose sending yields slightly lower. The yield on the ten year treasury note last quoted at two point eight four percent, west Texas intermediate crude oil was last quoted at fifty to sixty one a barrel. Global news twenty four hours a day on air and it ticked up on Twitter. Powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm Susanna Palmer. This is Bloomberg. Berg. You're listening to politics policy and power on Bloomberg radio. Peter Barnes with Amy Morris. The Fed's vice chairman Richard Clarita made clear in an exclusive discussion on Bloomberg this week. But he remains concerned about falling short of the Fed's inflation target. We have a symmetric objective around two percents number centers, not meant to be a ceiling. We've operated below two percent. We could operate somewhat above two percent for more on that. We're joined now, by Randy woods. He's an economics editor at Bloomberg news. And Randy to be charitable the fed is reacting to incoming data to be blunt. The fed is doing a one eighty what's say you. That's right. A lot of the fed officials have struck a more dovish tone lately. Most notably the chairman Jerome Powell last week, and we had a new York Federal Reserve Bank president John Williams, speak again. And he reiterated Powell saying that he's not that concerned about inflation pressures building too much in that he sees the economy's on good path, and is is pretty happy with the gradual pace of interest rate hikes. Let's talk about what Mr. Williams said that about gradual rate hikes. He talked about how that is appropriate. How he sees them as being more gradual and more steady. He was specifically asked by a reporter about Powell's comments last week. Saint did the market overreact who's comments in pulling back the number of hikes expect next year to one and he his quote is. I think I think completely consistent with what chairman pal said of his own view. So he he pretty much reiterated Powell's comments, and in confirmed, the market expectation that you shouldn't expect a lot of hiking next year. And now there's some market commentators are saying, hey, expect cuts in rates starting in twenty twenty. What about that? At recession talk. Really just talked about hitting the hitting the brakes. I think John Williams would would would have something to say about that. He was very optimistic about the economy said, it's very strong to labor market's doing very well. So he did not give any indication that the fed is even considering cuts in twenty twenty. I think a lot of the market. Participants are looking at the yield curve in that some some maturity of the yield curve have inverted as a sign that we could be headed towards a recession that this expansion could could experience you could be long in the tooth. Now, we could be headed for downturn in see cuts in twenty twenty. But nothing that fed says is signaling that at least from what I've seen the echo roundup is out on the Bloomberg terminal. We have been going through it with a fine tooth comb it talks about how quantitative easing has worked. But with several asterisks, explain them, right? So there's a lot of debate in the economic community about quantity. Eight of easing, and it's very important debate. Because it's an unconventional policy tool that the fed has not ruled out using again in the future, and because interest rates are so low and may remain low for the foreseeable future is very possible. They might have to rely on quantitative easing because they're now at two point two five percents than the rates if we hit a recession now, they can cut it down to zero. And then what do they do? Well, then they start buying bonds. Like they did after the last recession. So so yes, there are a lot of people said that it did help can lower long-term interest rates. But there are people saying that it didn't have a dominant factor in loosening up a monitor conditions may add a footnote to that one. Hello. We are quantitative tightening. Now, the fed is rolling off what fifty billion a month. Right. Randy tray of its Balaji. And and that is part of the reason why market participants distal tight Ketut. Connect all the dots. Here are. Looking ahead and why the N wild. And we're seeing some of this action and the yield curve and take it from there. Go ahead. That's right. And and so the fact that the argument that quantitative easing. Loosened monetary conditions. A lot of people are saying now that they're rolling back that policy, it should be tightening monetary conditions, and is questionable to what extent it's doing that. But the, but there's no question that it is to some extent. And there's some people even the Treasury Secretary have floated the idea of instead of hiking rates. Why don't you just continue on with this rollback of the? Of the quantitative easing that you did. And and continued with that policy, and maybe even step it up more. Okay. Hashtag Barnes's for Clem here. I but. Okay. And that's okay. Just just to stay. Anyway, it just it's okay. If the fed Hello is data dependent just me just say that. Okay. All the fed speakers have been saying their data dependent. They don't see a uptick in inflation. Putting pressure on them. They see it possibly going above two percent target, but not much. So the fed is really feeling very little pressure to step up the rate of rate hikes or to hike considerably in twenty nineteen. Randy, thank you. That's Bloomberg economics, editor Randy woods. You're listening to Bloomberg politics policy and power on Bloomberg radio coming up. The Trump administration is removing a key."