35 Burst results for "Euro-Zone"

 Inflation hits record of 5% in 19 countries using the euro

AP News Radio

00:49 sec | 4 months ago

Inflation hits record of 5% in 19 countries using the euro

"Inflation inflation has has surged surged in in the the nineteen nineteen countries countries using using the the euro euro as as co co V. V. nineteen nineteen defection defection rates rates stay stay high high across across the the zone zone figures figures show show the the consumer consumer prices prices in in the the euro euro currency currency nations nations have have soared soared to to record record rate rate led led by by hikes hikes in in food food and and energy energy costs costs according according to to Eurostat Eurostat the the EU's EU's statistics statistics office office inflation inflation rose rose to to five five percent percent in in December December compared compared with with a a year year earlier earlier the the highest highest level level in in the the euro euro zone zone since since record record keeping keeping began began in in nineteen nineteen ninety ninety seven seven despite despite the the Omicron Omicron variant variant of of covert covert nineteen nineteen and and he's he's on on certain certain effects effects on on the the global global economy economy central central banks banks elsewhere elsewhere have have been been raising raising interest interest rates rates to to fight fight soaring soaring inflation inflation or or taking taking steps steps in in that that direction direction Charles Charles the the last last month month London London inflation inflation has has surged surged in in the the nineteen nineteen countries countries using using the the euro euro as as co co V. V. nineteen nineteen defection defection rates rates stay stay high high across across the the zone zone figures figures showed showed consumer consumer prices prices in in the the euro euro currency currency nations nations have have soared soared to to record record rate rate led led by by hikes hikes in in food food and and energy energy costs costs according according to to Eurostat Eurostat the the EU's EU's statistics statistics office office inflation inflation rose rose to to five five percent percent in in December December compared compared with with a a year year earlier earlier the the highest highest level level in in the the euro euro zone zone since since record record keeping keeping began began in in nineteen nineteen ninety ninety seven seven despite despite the the Omicron Omicron variant variant of of covert covert nineteen nineteen and and he's he's on on certain certain effects effects on on the the global global economy economy central central banks banks elsewhere elsewhere have have been been raising raising interest interest rates rates to to fight fight soaring soaring inflation inflation or or taking taking steps steps in in that that direction direction Charles Charles

Eurostat Eurostat EU Co Co Charles Charles Co Co V. V. London
Covid: Nearly 500,000 redundancies planned since crisis began - BBC News

Marketplace Morning Report with David Brancaccio

02:17 min | 1 year ago

Covid: Nearly 500,000 redundancies planned since crisis began - BBC News

"The cost of covid nineteen to business appears be racking up day by day with data revealed exclusively to the BBC showing the pandemic has led to half a million planned redundancies in the UK since March more broadly in Europe countries in the euro-zone reported last month a total of five point one million. Lost in twenty twenty so far it's the steepest fall in employment since records began in Nineteen ninety-five Simon French is chief economist at Pamela. Gordon will the current UK unemployment rate is four point one percent, and that has stayed remarkably low in the first few months of the pandemic partly because of the Sports Games, that job retention scheme in particular which its height supported the jobs of more than eight million workers. But a spike up to double digit unemployment right is nothing conceivable I don't think it actually will go that high. I think it's more likely to be high single digits but that's still as spike of numbers terms probably a million, two, million half additional people who are either unemployed or underemployed, and now will be a real headwind to growth not just in twenty twenty one. But I think for a couple of years thereafter and the quandary. The finance minister is in hair in the K. as how he's going to pay for various keen to try and stimulate employment hasn't said he'd Montebello the Ozzie. Nelson facing a fiscal deficit of about fifteen percent of GDP this year and she snack funds ministry nut tree fiscally conservative is stated in the last few days that he would like to balance the books over the medium-term. There are constraints in how he can go about doing this without breaking promises that he and his taunt made the UK electric back in December twenty nineteen namely not to raise the major tax in the. The other parts, the ledger, of course, spending cuts. UK has seen quite significant public sector spending cuts over the last decade. That the electorate quite fatigue for that. So no easy choices for she said. Simon French chief economist at Panya Gordon Thank you very much. Thank you.

UK Chief Economist Simon French Nelson Panya Gordon BBC Europe Finance Minister Montebello
Investments to Fight Financial Repression

Money For the Rest of Us

04:10 min | 1 year ago

Investments to Fight Financial Repression

"A couple of weeks ago on August fourth the US tenure treasury bond hit an all time low yield. Zero Point Five, two percent. It's a little higher than that. Now about zero point six, four percent. Yet. If we look at an equal weighted composite of ten year government bonds that includes Canada the euro-zone Japan, Switzerland the UK and the US. That composite interest rate is zero point three percent. If. We include corporate bonds and mortgage backed securities. The Global Aggregate Bond Yield is zero point eight percent in all time low. Now those are nominal yields that supposedly take into account that potential flation, but those rates are lower than what inflation has been over the past few years. Treasury inflation protected securities have a negative yield. That's the real yield. The tenure tip is yielding negative one percent. Global. Central banks have set their interest rates at all time low a composite of banks. The average short term policy rate is one point three, five percent. That's down from two point four percent in July twenty. Most developed countries have set their policy rate at zero. As investors if we are not able to generate a return that is greater than inflation, then our investments lose purchasing power over time. If central banks are implementing policies to keep interest rates low. Policies that benefit debtors borrowers because they can borrow cheap at the expense of savers that aren't able to earn even the rate of inflation on their savings. That is what is known as financial repression, its policies by central banks that hold down borrowing costs. These can be traditional monetary policy tools such as setting the short term policy rate. or it could be unconventional monetary policy such as quantitative easing central banks, purchase government bonds, or other bonds in order to put downward pressure on interest rates because they're constantly buying bonds. It could be yield curve control stating that they will buy as many bonds as possible to keep longer term rates low. It could be what the Federal Reserve indicate that they might do more explicit forward guidance in their June that are open market committee meeting. The minute said that it will be important in coming months for the. To provide greater clarity, regarding the likely path of the federal funds rate and asset purchases and that a number of the participants in favor of forward guidance tied to inflation outcomes that could possibly entail a modest temporary overshooting of the two percent target. What does that mean? The Federal Reserve has a target for inflation of two percent. They set their sights term policy rate, which is known as the federal funds rate at a level that they believe that unemployment will stay low but not too low that discharge to put pressure on wages and potentially inflation. And at a level that's low enough that households and businesses want to borrow to buy things to invest in capital projects to help the economy grow. But they're saying that they'll keep that policy rate low even if inflation exceeds the two percent target for time so that the average inflation rate is about two percent. The most recent inflation rate in the US was zero point six percent. If we exclude food and energy inflation rate was one point two percent that was through the end of June twenty twenty.

United States Federal Reserve Canada Switzerland UK Japan
The ECBs Former Vice-President Explains The Historic Step That Europe Just Took

Odd Lots

07:35 min | 1 year ago

The ECBs Former Vice-President Explains The Historic Step That Europe Just Took

"True CEOS thinking we don't really talk that much about Europe these days. I mean, I guess not in relation to the the heady days of the eurozone debt crisis. Now we don't, but also I feel like this particular crisis at least some of our episodes, you know, obviously, we talk a lot in the bed context the US context, of course, know talked about Hong Kong and Asia and Asia supply chains in China and so forth stills like we've focused a little bit less on how this current crisis is playing out in the Europe. Yeah I think that's right I. Guess the implication is that maybe this has been unfair in some respects because there has actually been something very interesting going on in Europe at the moment. Yeah. I mean, for one thing you know there's a good argument to be made Europe at least relative to the US, if not necessarily Asian countries has done a pretty decent job overall of suppressing the virus self and you know for years during the euro area crisis, they're always people fiscal policy. Fiscal Policy Missing. You gotta spend more gotTa get the Germans to spend more and you know maybe this time it looks like they're actually doing. Yeah that's exactly what I was thinking. So we have the announcement of a big deal seven, hundred, fifty, billion euros worth by the EU to fund on long term recovery. Fund for the Eurozone and that's a big deal because as you point out, everyone's been talking about fiscal stimulus but it looks like the euro-zone is finally going ahead and doing it. Right and so this of course raises questions and it's a theme that we've definitely had a lot on on our podcast, which is, is this offer something bigger for the post-crisis period? So sports, it's well known that know there's a lot of money being spent by governments all around the world including the US. But the question mark is okay when the crisis phase is over the government's just retrench or does this become a sort of new macroeconomic stabilization model? That's a theme that we've had dozens of times but it's particularly important to New York, in context I think because people have sort of identified the lack of fiscal burden sharing his sort of a basic architectural tension or flaw within. Euros. Yeah I think that's exactly right. How does the I don't want to say the intrusion of fiscal stimulus but how does the arrival of fiscal stimulus on the scene actually reshape the way that monetary policy works and I? Guess we should also mention that the is also in the midst of a of another really important project which is rethinking. How it targets inflation. So we have all of this going on simultaneously real existential questions for the role of the European Central Bank. Absolutely well, I'm very excited. We have a fantastic guest to talk about all of this we are going to be talking with Vito comes don. So he is the former vice president of the European Central Bank from two thousand, Ten may twenty eighteen. He's now a professor at Navarra University in Madrid out the perfect guest to discuss all this. So without further ado, let's bring him in a veto. Thank you very much for joining us. So are you happy to not being a policymaker in this time or you? Do Miss being at the ECB during such an extraordinary moment. Well, it's always difficult to get out of you know executive responsibilities and I. Of course, I would not say that I, am Epi at the out or unfortunate circumstances of the covy. The shock we are again in a very important periods of policy making but. Me Europe as been doing well I think in these episodes. Better than in the previous episode of two, thousand. Ten to two thousand twelve. Just to start out with walking the significance of the deal that was agreed, this seven, hundred, hundred, billion euros you tweeted about it clearly, you think it's important. What's the significance. Well it establishes for president that are very meaningful. In, the first place it involves a decision to issue common European depth. The Commission will issue seven hundred and fifty billion of debt to fund these program, and that's the first. The second the point is that these is going to be distributed in the form of budget transfers and not loans to the country's. Third IT'S A big program to implement Wat- is a European fiscal policy stimulus to address a recessionary phase. India to be an economy, and that's also the first time that these happens at this level and fourth the distribution of the ballot transfers which. Correspond to a little more than half of the seven hundred and fifty billion is done in a way that it is not proportional to the size of each country. By two indeed benefits more the countries that's have lower level of leaving and higher unemployment. So there is a convergence play. There is solidarity aspect of these edits also quite new in terms of transfers to give you two examples on a proportional basis, Italy would be entitled to fifty billion, but the they are getting eighty billion. Right as Germany, you'll be entitled to ninety six billion in proportional terms, but is getting only twenty seven. So these four points put together constitute the indeed very important precedents and babs, and do we all hope so that it will be a sign of things to happen. If again, there will be a stressful situation in the European economy, and that's a very important element for everyone the notion that when there is a very stressful social economic situation Europe, steps up and two x decisions to fight the recession and does not leave behind any of the member countries. It's a big message for the future and I think markets are really beginning to injury injuries what these means And we see that already but it will take time of course, perhaps for the markets by Geico anglo-saxon markets to overcome. Lingering, doubts about the European project.

Europe United States European Central Bank Asia Hong Kong EU Eurozone New York Vice President China Babs Vito Madrid Italy Germany President Trump Euro-Zone Executive WAT
EU forecasts deeper economic hit from pandemic

NPR News Now

00:57 sec | 2 years ago

EU forecasts deeper economic hit from pandemic

"A new forecast predicts the pandemic will trigger the European Union's worst economic performance ever Teri Schultz reports from Brussels the e. you may need to lower its projections if there is a fresh wave of corona virus infections, the economies of France. France Italy and Spain have been hit the hardest by corona virus with GDP in each expected to drop more than ten percent this year. The nineteen countries that make up the euro zone are set for a record fall of eight point seven percent before rebounding twenty, twenty, one but economic, commissioner. Paulo Genta looney warns. Even this cautious prediction may be overly optimistic Jobson, so the vaccine and treatment options any sustained increase in the number of section of father outbreaks would worsen the economic. Forecast says the slower than expected lifting of lockdown measures across the EU arising infection rate in its largest trading partner. The US means continued uncertainty

Paulo Genta Looney Teri Schultz Jobson France Italy France European Union Brussels Commissioner United States Spain Partner
ECB to Judge If Trillion-Euro Stimulus Is Enough

Marketplace Morning Report with David Brancaccio

02:30 min | 2 years ago

ECB to Judge If Trillion-Euro Stimulus Is Enough

"Despite today's data showing the damage corona virus has done to the euro-zone economy in the first quarter European shares. Are Little changed now. The focus turns to the European Central Bank. It's so far pledged more than one trillion dollars in support but chief Christine Lagarde has said there are no limits to the tools the e C could use to fight the crisis. I N G is Karston. Bresca explains when more measures could be deployed. I think they'll have to announce something soon not necessarily today. 'cause we now have two six extremely exciting week since the last meeting with lots of announcements new. Q. E. The pandemic emergency program and I think right now is the moment to take stock and then wait until the June meeting will also bring the latest around a forecast and to that point second quarter data could arguably be worse than the first quarter data. We're seeing today. The has been crystal clear that government support through fiscal spending measures needs to be bolstered. Ten governments do more. Governments can definitely do more. Interest rates are extremely low. There is lots of loans being made available for for governments. They are territories in the north. East we can still do something. Warmness is to to calm. Financial markets and the other one is to provide ample liquidity into the banking sector. That banks are able and willing to provide them nose to the read economy. Well no the latest. Ecb policy decision at seven forty. Five eastern time I N G chief economist Karston Brodsky. Thanks so much for your time. You're welcome well. As officials work to combat the economic impact of covert nineteen hopes arising here in the UK for Corona virus vaccine to prevent more people from getting sick pharmaceutical giant. Astrazeneca has signed a deal with Oxford University to produce and distribute a drug as the BBC's Stephen Ryan reports. The vaccine is still in the early development and testing stages and there's no guarantee but the UK's Health Secretary Matt. Hancock said today the new agreement between Oxford and AstraZeneca gives the UK the best chance of a breakthrough to defeat this corona virus. Several hundred people have so far taking part in clinical trials at Oxford University. But Sir John Bell a professor of Medicine says scaling up so enough doses can be manufactured. Has Its challenges the vials that you put the vaccine in. There's only two hundred million dollars left in the world now because they've all been sucked up by various people who can anticipate a vaccine coming along so so there's lots of challenges in getting this to work

UK Oxford University Astrazeneca Christine Lagarde European Central Bank Sir John Bell Karston Chief Economist Karston Brodsky E C Bresca Oxford ECB Hancock Professor Of Medicine BBC Stephen Ryan
Euro countries agree half trillion euros in support

Global News Podcast

03:23 min | 2 years ago

Euro countries agree half trillion euros in support

"After two days of disagreement e finance ministers have reached a deal over a package of measures to support their economies which have been badly hit by the pandemic. The agreement comes after the Italian. Prime Minister Giuseppe County warned that the EU could fail as a project without decisive action. Mario's Tanno is chairman of the Euro Group of finance ministers. These response contains bold and ambitious proposals. That will that be unsinkable? Just a few weeks ago. We can't remember the response to the financial crisis of the last decade when Europe did too little too late. This time around is different so with five hundred billion euros in the package. Where will it go? Economics correspondent is under Walker. There are three safety. Nets Mr Santino. Called them that he has in mind. That need bolstering And they are for individuals people who become unemployed. They are for businesses that are struggling to get through the sudden loss of revenue that they have in there he had in particular in mind small and medium size enterprises and then finally there is an element in this prevent this package for individual EU member states. Money that will be used to lend to them to help them Pay specifically for all their direct and indirect healthcare costs associated with dealing with the new corroded arse corona bond idea. It didn't get a great as I think we we rather expected. This is an idea that under which euro-zone countries would borrow joint K. On the financial markets they would be jointly responsible for ensuring that the money was repaid. It was quite an attractive as there are clearly some countries that are to some countries because they some of them are in financial under financial stress. And they're going to Countries like Italy are going to have a particularly large healthcare and wider economic. But as a result of what's been happening in In terms of the virus but countries where had come and finances are already rather strong do have their own domestic political difficulties with an arrangement that would see them. Having to take joint responsibility for repaying debts partly raised to cover the finances of countries who are sometimes seen as managing their fantasies less effectively own. How does this? How does what has been agreed today? Compared to previous you rescue packages one. Pretty quick isn't it with the The hero on financial crisis. It took the M- I would say significantly longer this time I suppose that there's no element of blaming anybody for bringing this healthcare crisis upon the EU. It's an genuinely is an external shock with the euro zone crisis. There was some strong cases for saying that at least in some cases it reflected policy mistakes by euro-zone governments. So that's an important difference And I suppose there is also the fact that this is also directed not more widely if you like. It's not just about shoring. Up Government finances. It's also about providing specific assistance to individuals and businesses as well

Countries EU Walker Prime Minister Giuseppe County Euro Group Of Finance Nets Chairman Mario Europe Mr Santino Government Italy
Why oil prices are crashing and what it means

WTOP 24 Hour News

03:01 min | 2 years ago

Why oil prices are crashing and what it means

"Her check the crude oil market is the story of the day through Friday's close crude oil was down by thirty percent over the weekend in the days leading up we saw OPEC nations meet and they were trying to decide how to do to curtail their production so that they can keep the price of oil bit higher well the talks fell apart over the weekend specifically Saudi Arabian Russia really could not come to terms and after that Saudi Arabia decided they were going to cut their prices of oil to their customers in China they were gonna going to increase production overnight we saw crude oil actually was down by thirty percent now it's down by just under twenty percent that's actually the biggest drop in a single day drop in crude oil since the Gulf War in nineteen ninety one and all the oil stocks are down but really this is the concern about the spread of the virus how much is it going to spread in the United States how much is it going to spread in Europe how old the economies in those areas react this is with the true question that is vexing and investors right now now those stocks aren't the only things were watching the federal reserve cut its benchmark interest rate by a half percentage point last week to support the economy and in the face of this spreading corona virus what if anything has this accomplish well I mean I think it gives the signal that the fed is ready to act and when I talked to a lot of fed watchers they believe that if things continue as they are the rest of the day in for another couple of days the federation of may come out and do another fifty basis point or half a point Cronkite what does it do it creates liquidity and make sure that markets function it make sure that there is money for banks to land but in the end the problem with the fed rate cuts is that they don't get to the core issue here which is if you give somebody more money in their pocket maybe because they refinance their mortgage or even their credit card bill their minimum payment is gone down will they go out and spend if they're so fearful about what's going on with the virus and that's a we don't know we don't know if the fed's actions will help spur demand do we know about a recession our fears of a recession warranted we came into this period very strong I mean we really did it when you think about it we're in the eleventh year of a recovery and we are still growing by more than two percent on Friday we talked about this we got a great jobs report on get two hundred seventy three thousand jobs were created so I don't think that this should cause a recession I think a lot of economists that I've spoken to recently is say that their downgrading their growth levels maybe with the U. S. will grow by one and a half percent or so and then dad that's down from two wood two point two percent but that's not a recession I think the problems in Europe are quite real Italy is the eighth largest economy in the world and so shutting down a good part of Italy for a while is going to not be great news for the euro zone in the euro zone was in much

How A Profane Subreddit Moved The Market

Odd Lots

13:18 min | 2 years ago

How A Profane Subreddit Moved The Market

"Really feels like from a market perspective. This is the closest we've been lately to Sort of two thousand eight financial crisis vibes well since the financial crisis. When is a I would say so and I would certainly say the the statistics back you up biggest weekly sell off since the Financial Crisis. We've just seen right right. Massive a sell off in risk assets an extraordinary amount of repricing of expectations for Central Banks. All around the world to come in and intervene and we've had other periods of sort of semi crisis since the great financial crisis during periods of say the euro-zone but it's just never felt as extremely uncertain as it does right now. I don't know I sort of remember late. Two Thousand Fifteen Yeah I mean late. Two Thousand Fifteen. You had all the issues going on with credit and you had One Big Fund blow up. So I'm still waiting. I'm still waiting for the second order. Effects of the market. Sell off that. We've seen to emerge that's true like we haven't actually seen any sort of major liquidations institutions of various is truly go bust yet amid the volatility. Obviously nobody You know we're not hoping that happens for now it's mostly been like a sort of a market's reaction but as you say there hasn't really been a A second order effects yet. Yeah very true so obviously the. The Corona virus is You know the clear contributing factor it's People are Gripped by panic. All around the world started in China late last year. Now it seems to be spreading to countries Basically everywhere but I also think that there is another contributor to the top. It's not just the virus that caused the top. Well I mean the virus didn't cause the top the virus was the catalyst for the top to no longer be the top and for markets to sell off but What are you thinking about you? Well I mean obviously it's our recent business week cover story that our colleague Luke Cowo- road about when the bull market got weird and About all these traitors online forums making crazy big beds and I think. In retrospect many people will see The recent cover as what really did it was good timing But in the history of of market crashes people always go back and sort of look or retail investors who start to become really overconfident. Some people actually look at retail investor participation in the market as evidence of the top coming And so some of the behavior that we have seen embodied in places like What Luke was talking about You you could maybe see that as an indication that markets were a little frothy. Yes so for those who actually haven't been paying attention to this particular subplot which is probably most people because there's bigger things going on in the world over the last several weeks prior to this extreme bout of selling volatility that we saw it was a lot of attention paid to the behavior of people on a certain Internet web page or chatroom or message board. Whatever you WANNA call it sent me. This is an extra celebrate it it was on Reddit. An extreme level of speculative activity particularly in the options market the likes of which we haven't really seen arguably since the glory days of the message boards back during the DOT COM bubble. And it's a really fascinating story. It's already Interesting Look at how the markets work and how retail players can really make a dent in publicly publicly listed equities. Yeah so this is the thing that I find the most fascinating about this subrata. It's called Wall Street. Bats and in recent months or over the past year or so a lot of people on it. Don't just think that they found good ways to make money Through investing in the market. They think that they found a good way to sort of forced the market into our force the market to do what they want it to do. So they actually think that they're impacting. How Wall Street functions and pushing up the stock price and that's where it gets really really interesting are they. In fact having this impact on the market right and I remember The message boards the raging bull message board silicon investor. Yahoo message boards from nine thousand nine. Nine two thousand and I think they were far less ambitious than what people these days. So for. More for more on this Let's start by bringing in Bloomberg's own Luke. Kalo who did have the cover story that curse the market overall Luke Thanks for joining us. So first of all. Just basically describe what it was that was worth covering hear about this About this subject I think for so long. We've been waiting for the return of the retail investor. And you know it's been this kind of a long awaited thing that's never really happened throughout any time during this bull market and this kind of the be careful what you wish for story because what became quite interesting is how you were seeing re retail enthusiasm get expressed in the markets. And so I. I remember there was one day. It was January eighth and this is when Tassell was still below five hundred if you can imagine a day in which that existed but It was a Wednesday and you saw a lot of bidding for the Tesla seven hundred strike. Call options that would expire at the end of that week. Tesla already been up like twenty five thirty percent that week as was its wont earlier this year but it just seemed like this is. This is such a ridiculous bet. Why would anyone do this? That doesn't make sense as a hedge. There's gotta be a better way to express a hedge if you're you know if you're short the stock or if you sold calls like what's going on here and someone said you know. This is just a Yolo bed and the second I heard Yalo bed I. I went to Wall Street. Batson tried to see what What do you only live once? Why not make a huge wager exactly and when I when I went there I saw a lot of people just That were seemingly enjoying a lot of success on Tesla and then that spiral to kind of other stories stocks where they thought the it would do nothing but go up and up and up and you know Virgin Galactic is the you know the next example plug power another one that had. It's kind of time in the headlights. And then lumber liquidators is one. I find very interesting because it's not like it's not that fun as stock lumber liquidators compared to virgin galactic compared to plug power like. It's it's really hard to wrap an enthusiastic. You know big story around it And yet you know a lot of the ones of the three ones I blast listed. They have in common. It's relatively low flow to relatively high amount of short interest. So when you got a group of people together that thought you know if we're all interested in the same thing and if we are all kind of combining buying power aware can have an impact well in in names like this it can and you were seeing at least the volumes. Go up like crazy in it It became too much to call it. Coincident coincident timing or coincidence after a certain amount of time. So Luke. Two things here. Can you walk us through exactly? What the options trading strategy was here. Because you know Joe and I kind of alluded to this in the intro. But it wasn't just that they could push the stock up. It was that they could actually exploit a loophole. In the way certain financial contracts or Wall Street actually works in order to make the stock go up and then secondly would you say that Wall Street bets is representative of the average retail investor. So on the on the first part of the in this this relates you. I'm not sure if if people actually believe this or this just becomes a you know very happy supporting evidence and something that makes you feel a lot better about making your moonshot at the. You know the fact that someone might be there to help by. Accentuate it and help bail you out so the thinking here. Is that when you say you're buying a call option on on the other side of that? If it's a fresh option there's going to be a dealer and dealers are not in the business of taking directional exposure. So when they're selling that call. Oh what are they doing? They're also buying a certain amount of stock to hedge their exposure. That's called Delta hedging and as if the stock does continue to go up from there it Resetting your Delta Hedge your which would be kind of gamma hedging but it's really just resetting your Delta hedge would entail that as the stock goes up you would be required to buy more and more to make sure that your directional exposure to the stock hasn't changed so when we describe this dynamic when we were talking about the the Tesla calls a tesla. See One thousand strike calls in. I believe late January someone on reddit latched onto this and said you know L. O. L. Bloomberg is admitting that the stock can only go up if we continue to buy calls because of the hedging algorithms. Which is you know. It's it's very much an overstatement of of what can actually happen. Can I just step in real quickly because you mentioned Delta hedging and Gamma hedging and all this stuff just for people who need a little bit of time to catch up walk US through very simply? The idea is people by a lot of call options. The dealer who sells it sells the call. Options are then on the hook if the call options essentially Become in the money right and so in order to avoid that risk of having to pay out a big wager just like a casino. They have to sort of balance their own books and that requires them to purchase the underlying stock. Yeah dealers are trying to make money from from the bid ask spread and making you pay both sides of it during your transaction They're not in the business of really making sure that Or or hoping that Tesla goes down the they'd like to be cover their butts in all contingencies in all cases. So that's what's going on there and it's just you know with some Greek letter surrounding it. But that's the that's the basic Kind of scenario mechanism. You describe perfectly so trying to exploit the fact that dealers are big banks on wall. Street need to maintain a a neutral position when they're writing all these contracts doesn't strike me as something that your average retail mom and pop investor Is Really doing so is Wall Street bets a little bit different. I? I'd say there are a lot more Aggressive about Certain tactics being used and the kind of The hurting behavior. I don't think the average retail traders really trying to think of okay like if I get together with Jim down the street and go Mary across the road who I play bridge with. If we really get together and start you know. Stockpiling are potential buying power that we can kind of. Maybe maybe lift some bids here. Maybe get some dealers offside may be caused some kind of gametes. So yeah it does seem from that From that point of view a lot more sophisticated and ambitious than you know Some people others speculating. An auction. Options might be on the other hand just because it sounds more sophisticated doesn't mean it's a better strategy doesn't make what's being said more true because if we've learned anything about kind of the recent market dynamics presuming you're the only actor in the market and able to move it is kind of. It's it's a fool's errand and that's why you know if some if there's power out there to To buy all these options you you have to recognize it on the other side of it. There's going to be Potentially a a desire to sell. And we've seen a lot of selling pressure come into the market that's completely overwhelmed. Whatever retail buying markets? Probably I mean. The market's gotten absolutely clobbered usage. Here article came out and presumably. If you had been buying about your call options ahead of that you're A- one is not doing particularly well this week with that strategy. Yeah like we. We saw a bunch of ten thousand percent Up Days for a lot of these moonshot options but most out of the money and very low delta options are going to expire worthless. It's just the kind of the name of the game. Okay so on that note in addition to having Luke. Join us for our episode. Today we have another guest. Luke has said Set the stage but we actually have the founder of the sub read at Wall Street beds joining us. Now Jamie Roginsky he Founded the page got it launched in two thousand twelve Jamie. Thank you very much for joining us for having me. Okay so I want to obviously get to everything that Luke talked about and this sort of crazy phenomenon in force in the market. That Wall Street bets has become well you started in twenty twelve. What was the purpose? What I'M GONNA start a new page on read called Wall Street beds. What

Luke Cowo Tesla Reddit Delta Virgin Galactic Euro-Zone Jamie Roginsky Bloomberg Yolo China Kalo Delta Hedge Tassell Yahoo Batson
"euro zone" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

02:13 min | 2 years ago

"euro zone" Discussed on Bloomberg Radio New York

"Ready to act I'm in caves and I'm Susanna Palmer from Bloomberg world headquarters China's government is talking about stimulus as the corona virus ways on the economy the country's finance ministers promising better stimulus and Bloomberg shaman autumn says he's also hinting that it's okay even if it means boosting fiscal spending on we definitely need the stimulus bill the government has to spend more and there is if people get widening temporary it's fine if them slumbers shaman autumn in Singapore investors seeking safety in on certain times because of the corona virus are pouring money into bonds evidence of the insatiable demand can be found across the fixed income universe pensions which have been wrapping up bond allocations for more than a decade after changing regulations now hold a record amount of longer dated treasuries bond mutual funds saw an historic inflow of money last year with no sign of slow down and even hedge funds of piled in the ten year note was last quoted at a yield of one point five eight percent Tess was plans for Berlin are running into problems and we get more on that from Bloomberg's Denise Pellegrini a German court has ordered Tesla to stop clearing the forest near Berlin for the new Tesla factory immediately and this is after the Berlin Brandenburg higher administration court overturned a lower court ruling against a German environmental group opposed to the development workers have already searched through the field there to remove most of the remaining ammunition from World War two at the project's environmental stipulations or the include scaring off or relocating wolves along with hibernating bats snakes and lizards a decision on the complete proceedings is expected within days to these Pellegrini Bloomberg radio global news twenty four hours a day on air and on quick take by Bloomberg powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries I'm Susanna Palmer this is Bloomberg this is Bloomberg businessweek with James Kelly from Bloomberg radio so this.

Susanna Palmer China Tess Berlin Bloomberg Denise Pellegrini Tesla Tesla factory James Kelly Singapore Pellegrini Bloomberg
The Popularity Of (And Problem With) Municipal Bonds

The Indicator from Planet Money

06:54 min | 2 years ago

The Popularity Of (And Problem With) Municipal Bonds

"Nunis I've been reading quite a lot about this recently in the press hearing hearing Sort of financial TV wise the market for municipal bonds. So hot right neue. Bottom line ever since The trump administration past their new tax tax laws and ever since we are only able to write off a maximum of ten thousand dollars of state against federal and we are really a hamstring. About what our deductions are people. Don't WANNA pay taxes. What is the one area that has left municipal? Oh bonds and it isn't that they are some juicy and high yielding no. It's just that they have been relatively safe and You earn interest. I federal tax free. And if you buy municipals in your state from your state they will be State tax free so all the big tide tax states California Illinois Annoy Massachusetts New York Blah Blah Blah. You know the names those are. The resident said have been buying municipal bonds like crazy road. So they're all after this type. They're basically after taxpayer. They want to save money on Texas. They are but here's the thing about municipal bonds little people think that all Muniz tax exempt. But that's not the case right. That's correct there. There are taxable municipal bonds. And the reason why they created those is the The cities that counties the entities that issue municipal bonds almost almost all have some kind of ceiling on how much they can issue annually and one say reach that ceiling then they can no longer issue tax free bonds and they have to issue issue taxable municipal bonds which are pretty competitive with yields on corporate bonds but my understanding is that those taxable bonds are still just as popular all pillar the tax exempt bonds between the municipal world. Why would that be? It's it's the race for Yael. Everybody wants wants yield and we even find foreigners are buying both tax free and taxable income. Yeah well and you say why would they do that. When you've got negative yields in Japan and in the euro-zone all they want is a rate of return on their money? They don't WanNa deposit their money and have to pay the depository money to hold that money. So we I have this crazy thirst for yield right now. Why why do we have that? Why does that exist? Well we have it because Number one the negative yielding global. Oh bonds have never been more powerful number two if you are an actuary meaning a pension plan A insurance company that has actuary reliability. You have made You have made promises that you're going to be able to produce x amount of income and X.. Amount of capital capital gains a year and that x amount of income has become more and more difficult with the negative yielding bonds globally. So people want to save save they want to invest and they WANNA positive rate of return. So where do they go. The United States of America Corporate Bonds Immune E bonds attacks won't Mini-van so busy because interest us rates are so low. It means that you're not getting the yield on the normal stuff that we used to get sort of ten years ago that yielded quite nice returns to now. You've got to go to more risky things. You absolutely absolutely do or just suck it up and say well. I guess I'm GonNa only earn one point. Four percent on a California general obligation bond in ten years much sex due to go to the junk bond market well the perils. They're quite different than the muny market. But junk bonds are quite popular right now. My understanding is I was reading something the day. WHOA whoa speaking about junk bonds? We should also talk talk a little bit of bites. I don't if you know but this becky with the good yield you know about this becky. No yes you know becky because you spoke to us when we bought a junk bond for Cardiff Garcia. Oh yes MRS homebake off shore drilling just a company that he did not so call becky with the good yields and actually that bond is not jim typically where we bought it to ninety today. It's trading at a bite de to seventy four ninety two so were down a little bit. But that's actually across the junk bond market. The prices are up because people are chasing that healed. And how what does that mean for the economy. Is that a dangerous thing if people are chasing after this high yield dangerous if the economy stumbles not just the US US economy but the global economy. And a Becky I understand then must be in the In the energy area is that correct so one of the worst performing areas in the United States all of last year. And what's happened in the energy space just like the regular investment in space is that corporations have taken on so much debt we are talking trillions and if the economy stumbles and Business starts to your road revenues. Then go down. Interest coverage on the debt starts to deteriorate. And we're going to start seeing it when that happens happens. Many more defaults domino's right the domino theory thing goes on the whole goes on a very very quickly whenever you're leveraged switch or could go slowly because so many people especially in the in the junk bond market last year thought hall. This is the year. We're GONNA have major defaults and it didn't happen to any consequence foot skip onto Muniz. So what else should investors be worried by looking at municipal bonds right no well. The CONGA line is pretty long as far as natural disasters and You know hurricanes and everything that's climate change but I would say one of the big things now that we watch every day that we have a person that scans every news news feed around is cyber attacks cyber-attacks exactly city of Baltimore has been attacked. There have been multiple attacks in small cities in In Florida there was a trauma one health center in New York that was attacked and because they didn't pay the ransom they were down for over two months. And and what does that mean to a bondholder. Why should they care? You have many of those and they have to pay the ransom number one which was not budgeted for or their insurance difference for cyber-attacks. Goes up astronomically. Then you as a bondholder. The amount of money that they're taking in annually starts to get skimpier and skimpier because they have have to pay all these bills that they hadn't budgeted for and you the bondholder have less and less security interesting. Do you think that these risks whether it be the climate change inge risks or these kind of security risk cybersecurity risk are they priced into the bones in your opinion not at all not at all. It's too it's too early for them to have priced it into the bonds uh-huh and I only see cyber attacks getting bigger and stronger and more profitable for the cyber thieves a more devastating for the bondholders holders

United States California Becky New York Texas Japan Muniz Muny Domino Florida Massachusetts Cardiff Garcia Baltimore Illinois
Decade in Review: The Economy

WSJ What's News

07:14 min | 2 years ago

Decade in Review: The Economy

"Greg is the chief economics commentator at the Wall Street Journal. He's been covering the US economy not just for the past decade. But for the past past thirty years so greg let's go back in time. What did economists think would happen at the start of the decade when we were coming into the fall of two thousand and nine? We just come off the worst recession since the Great Depression and a lot of economists thought that Well we're going to have a recovery now and it's GonNa look like a lot of other recovery's that we've had so he thought interest rates. Is there close to zero. Now they're gonNA start rising out. Eventually they'll get to four percent. Unemployment was pretty high up around ten percent. Eventually it's going to get down to around five percent and it kind of makes sense because that's more or less what interest rates and unemployment had done in previous recovery's but they were wrong Interest rates stay low. They stay little year after that and you have to that and the year after that a it took a long time for them to start rising and even ten years later they had gotten nowhere near the four percent level. Everybody thought was normal. They're still oh well. Below two percent and run employment it kept dropping and dropping and dropping until ten years later was down to three and a half percent a level that nobody anticipated we could achieve so okay. They've gotten it wrong. Let's walk through the possible theories. The first one that you talked about is this debt hangover theory. What's out about so one of the theories about why things are so rough was became known as a hangover theory which was associated with Ken Rogoff at Harvard University and Carmen Reinhart also at Harvard and they wrote notable called this time is different eight centuries of financial folly and they basically carefully gone through every country that had ever gone through financial crisis to figure out? Well what can we learn about that. And they settled recovery from crisis or very very slow and the reason why is that businesses and households and banks of too much debt. That's why we had a crisis and so they're busy trying to pay down on that day. They're not borrowing new funds and making new investments. And also everybody's always afraid there's another crisis right around the corner so they wanNA keep all their money safe things like bank deposits deposits and treasury bonds. And so this kind of like aversion to taking any chances taking any risk keeps investment low growth low and because growth is low inflation is low and interest streets are low so that was a pretty popular for quite a few years about why things were mad and remember of course. It wasn't only the United States that had a crisis. The whole world had a financial crisis and then barely two years later. The euro-zone had a huge crisis where Greece defaulted and a bunch of other countries. Almost defaulted so that sounds like a pretty good explanation does is it. Work debt hangover theory certainly worked for several years. But you know after five or six years in the crisis was fading into the past and things were still looking Kinda lousy and folks were looking around saying You know maybe there's more to it than just the fact that we'd had a crisis maybe there's something more structural going on holding back the economy. Okay something more structure all something like secular stagnation right so around two thousand and thirteen Larry Summers who used to be the treasury secretary under Bill Clinton and was advisor Brock. Mama now now. He's at Harvard University. He comes out with a new theory for why things are so weak and he calls it secular stagnation and he gets a phrase from an economist. Also Harvard from back in the nineteen thirties. who used it to describe? Things were so weak during the Great Depression and summer says well look. There's a lot of structural things going on the economy that are holding growth interest rates low. Hello Demographics for example. Everybody around the world seems to be getting older and populations growing more slowly. Aging populations don't boroughs much money and businesses if they have fewer consumers there's and fewer workers they don't invest as much and he also said the nature of investments changed companies just don't invest as much of their profits as they used to they spend it on improving things like their software were algorithms. And so if you have a world where businesses and individuals. Just don't WanNa borough very much. That'll kind of Lee subdued growth in very low interest rates and that was a theory that seemed to work reasonably well for For quite a while not just the United States funding bunch of other countries as well like you know like Japan. Why doesn't secular organization explain how they got the decade all wrong at least in the United States while the secular tag nation argument Explains a few things like low interest rates but secular stagnation is also really gloomy. Let me theory like in the nineteen thirties. Unemployment State High Double Digits for quite a few years and that's clearly not happening in the United States. unemployment has continued to fall fairly steadily below four percent and the stock. Market's had terrific decade. I mean it's been a record bull market so maybe it's really pessimistic. Theory like secular stagnation isn't the whole story right. So unimplemented fifty year low. How could that possibly give us a better sense of what might have led to these wrong predictions for the past decade so when the unimplemented can fall as low as this so in the old days they used to unemployment couldn't fallen below five percent? Because then you would have bottlenecks in inflation but here we are at the three and a half percent unemployment rate and inflation remains extremely low. So that tells us something that economy just had a lot more spare resources a lot more people willing and able to work than we realized. And if that's the case then for the whole last decky economy has been operating well below its potential. There's a great big sort of gap between what the economy's been doing what it could do. And all that extra slack basically means that we have a lot of catching up to do and also means that there isn't a lot of pressure on inflation because there's a a lot of unused capacity sitting on the sidelines. A lot of workers who really WanNa work so if you spend a if you have a long way to catch up and you take a long time doing it. Then it's no surprise that inflation is low and it's no surprise that interest rates are low and also no surprise that the expansion has lasted a full decade. Somebody that could explain plane why we had this slow growth and low interest rates. It's not something that's fundamentally changed. The nature of the economy is just taking longer for things to get back to normal says Allah on it. Has the mystery been solved. You know the interesting thing is is that there is still a lively debate among economists about which of these theories is correct. Is it the debt hanger for theory. Is that the secular stagnation theory. Is that the just taking a long time to get back to normal theory. Is it a combination of all these things and a few things that we haven't even thought of and I guess the interesting thing is that we may have to wait another decade. Exactly why things behave the way they did in the last decade. Why should we care that? Economists got the decade wrong. Why should we care that? They couldn't accurately predict what the federal funds rate would be in the next year and the next two years three years a lot of our policies like but how high taxes should be how much we should we spend. How serious a problem is the budget deficit? How should interest rates go? They're all based around our suctions. About how fast the economy can grow at. How low unemployment should be able to go? So economists. Get all these things wrong than you have to rethink. What are the appropriate policies? So a lot of folks have been saying well. We're in big trouble because our debts. That's her so high but interest rates are so low in the private sector is not worried about government debts. Maybe we shouldn't worry either. And maybe it's okay to have larger deficits for longer than we used nice to think that's where the Federal Reserve when realizes that inflation has stayed for this long. There isn't as strong case raising interest rates as much so revisiting the last decade. Trying to figure out where you went wrong. It's pretty important for determining what the road policies are going forward.

United States Harvard University Greg Wall Street Journal Federal Reserve Ken Rogoff Harvard Carmen Reinhart Larry Summers Greece Mama Bill Clinton Euro-Zone United States.
Eurozone Unemployment's Falls to Lowest Rate since July 2008

AP 24 Hour News

01:01 min | 2 years ago

Eurozone Unemployment's Falls to Lowest Rate since July 2008

"Unemployment across the nineteen country eurozone has fallen to its lowest rate since July two thousand and eight even the growth is cooling in the face of headwinds like the US China trade war and uncertainty related to Britain's departure from the European Union the European union's statistics agency Eurostat said on Friday that the jobless rate to cross the blog declined in October to seven point five percent from seven point six percent the previous month over the months the number of people out of work fell by thirty one thousand to twelve point three three million unemployment has been falling steadily in the euro zone for the past few years as the region recovered from a financial crisis and fears of Greece's future in the euro abated policy makers at the European central bank had been hoping that the sustained falls in unemployment would bolster wages giving inflation I left that hasn't happened as expected and inflation has been stubbornly below the ECB's goal of just below two percent for launch periods over the past few years

United States Britain European Union Greece ECB China Five Percent Six Percent Two Percent
The Last ECB Meeting Under the Control Of Mario Draghi

Monocle 24: The Globalist

02:12 min | 2 years ago

The Last ECB Meeting Under the Control Of Mario Draghi

"The ECB to start off with so we've got the last meeting meeting today under the control of Mario Draghi the ECB boss. That's been there during the financial crisis and he is likely because we're seeing Germany many probably tipping into recession other countries in the euro-zone slowing down considerably. He's going to start more monetary stimulus and political. I I mentioned hair because does he want to restart constitute easing where he's buying debt buying government debt in the markets to pull interest rates because that that the problem with that is lois borrowing costs for governments and that means governments are less less likely to reform their economies because it makes it takes the pressure off governments if they face nice very high borrowing costs. They have to be more in control of their budgets. If the borrowing costs rip down by the European Central Bank then go we don't care about budgets you could just spend loads of money which which is kind of the Italian attitude that so so the trouble with this is one. I'm not sure it's actually going to do much good. The official interest rates for banks is already already negative no point four percent if he cuts that further the Nazi just does damage to banks because it costs them therefore to have cash deposited the European Central Bank if he starts Qaeda as a whole Lotta people who don't like you and we're doing this right before his very last moment in the job before Christine Lagarde turns up to be head of the European Central Bank but what it tells us yet again and we've been talking about this for some time is at the world economic the growth is slowing and in some cases really quite rapidly so everyone says the UK how quickly it slates Brexit's or self. It's self imposed but actually ACA said we're doing better than Germany which looks like it's tipping into recession and I mean another issue. Surely got to be that as you say job. He's leaving at the end of October. People are going to not want to make long term commitments because that will tie Lagarde's Hans exactly and Christine Lagarde she she's not like she's stepping up to this job she was former head of the IMF International Monetary Fund so this is kind of a cross move for her and she must be thinking come on with Mario Draghi. Leave me something to do

Christine Lagarde Mario Draghi European Central Bank ECB Germany Imf International Monetary Fun Brexit ACA Qaeda Official UK Hans Four Percent
Why the Fed Wants 2 Percent Inflation

Morning Edition

03:42 min | 3 years ago

Why the Fed Wants 2 Percent Inflation

"Morning. The Federal Reserve yesterday decided not to cut interest rates. That's a disappointment for President Trump who's been calling loudly for lower interest rates. But the fed did send a signal that it expects to cut rates later this year. Why? Well, fed fed chair, Jay Powell cited cross-currents in the economy. One of those cross-currents is this, the fed things prices are rising too slowly at once more inflation David Wessel is online with now. He's director of the Hutchins center at the Brookings Institution. David. Good morning. So we usually think David that the whole point of the Federal Reserve is to resist inflation. Why would it want more? Well, this is really a big change. The feds mandate is maximum sustainable employment and price stability. And it defines that as you said a two percent inflation, but it's been unable to get it up to that level for some time and it had been expecting inflation to pick up, but it hasn't it's only running about one point seven one point eight percent. This is causing concern at the fed, and Jay Powell, the fed chairman, talked about this press conference yesterday wages are rising as noted above, but not at a pace that would provide much of impetus to inflation. Moreover weaker global growth may continue to hold inflation down around the world. We are firmly committed to are symmetric two percent inflation objective. I think we haven't think of inflation is inherently bad. So why worry if it's running below the two percent target at one point seven point eight percent. Well, there are a few reasons for that one of them is that the fed believes that its credibility with the public, and the financial markets depends on delivering its on its objective of two percent flation, if it fails that it could concern that people might overreact, when something unusual happens say a weather related, spike in oil prices, or food prices, or big swing down prices or something second, too much inflation is a problem, but too little as a problem to in part because it brings the economy. To close uncomfortably close to what they call deflation, falling prices, and once that happened as we learned from Japan. The economy can really struggle, and particularly borrowers can have a hard time paying back their loans and third. If inflation gets too low than interest late gets awfully close to zero and that limits, the offense ability to cut interest rates, we have a recession, and that's very much on their mind at the moment. Yeah, it is. And let me ask you why the US economy has been growing for nearly ten years now. It's about to set a record for the longest expansion in recorded US history. Why aren't prices and wages rising faster? Why this concern about a recession? Well, I think there's concern about a recession for a number of reasons some signs of weakening in the economy and the prospect of the president's trade war on the inflation front. There's a lot of concern a lot of debate among communists about why inflation hasn't been behaving as expected there. Lots of explanations out there perhaps globalization is making it harder for anyone to raise prices. Or maybe it's technology know the fact that we can all shop around online makes it harder for businesses to raise prices, or maybe the economy isn't as close to full employment as we used to think when we got a low unemployment rate. So there's no need to raise wages. Or maybe it's connected to the waning cloud of unions and the power of employers, one thing, that's really interesting. And important is this is not only happening in the US inflation in Japan. And in the European euro-zone has also been stubbornly below the feds target that was a staggering amount of maybe maybe statement. I guess that's what you get when you talk economics. David Wessel of the bridge. Institution as always. David, thanks

David Wessel Federal Reserve Jay Powell United States President Trump Japan Donald Trump Brookings Institution Hutchins Center Chairman Two Percent Eight Percent Ten Years
Has Trump broken the 'rules-based international order'?

Between The Lines

11:14 min | 3 years ago

Has Trump broken the 'rules-based international order'?

"Today on the show discussion with a renowned expert about the so-called rules based international order. It's been grabbing headlines vs. Now, how often have you heard that term, the rose by store is not perfect. We are rallying the noble nations of the world to build a new liberal order, that prevents war achieves greater prosperity for all. I have never heard. I Chinese leader commit so explicitly to rule based international order. So what do you think it actually means now for many politicians and journalists the world in which we leave the institutions of governance, the rules norms, all that, that's largely inspired by the kind of allegedly but nine global leadership that the United States. Is exercise for decades. And yet, would you believe it? The rules based international order itself has become a popular expression, only in recent times, did effective research, such of the world's newspapers and news wise. And it shows these things that in the three decades from ninety five to twenty fifteen the expression was used on three hundred nineteen occasion. That's three hundred eight times in thirty. That's all, however, get a lot of this in the past four years since Donald Trump announces presidential campaign, the term has been used nearly six thousand times six thousand times in the past four years. And about three hundred and twenty in the previous thirties, extrordinary now to me, the logic is simple. Western journalists scholars politicians policy makers, they all too often refer to this Liberal International order rules. Based international order. Why? Because it's demise is primarily blamed on one Donald Trump from this day forward, it's going to be only America first America first. Now the conventional wisdom goes lock these ball rising tariffs weakening alliances withdrawing the US from international agreements and supping with the devil, from Kim Jong Hoon that Singapore to Ladimir Putin hill, stinky, the US president has lifted void in world leadership. This is the argument as a result, Trump has undermined Feith in the open free, international order of the post Cold War era. But Trump alone really, to blind for the unraveling of the Liberal International auto or was this rules based order. So beloved of the western elites was at bound to file will my guest today has spent a lot of time. Thinking about this issue, John Measham is no stranger to this program. He's professor of political science at the university of Chicago. He's the author most recently of the great delusion liberal, drains and international realities published by ya'll university, Chris. And he's article bound to file the and full of Liberal International order that appears in the current issue of the academic journal, International Security, John joins us today from a studio on campus. The university of Chicago. Get I John welcome to the program. Thank you, Tom. I'm glad to be here now. It seems that this rules base Liberal International order is in trouble is Trump to blind. No, I think it is the conventional wisdom among the foreign policies. Tablet meant here in the United States, and probably in Australia that Trump is responsible for wrecking the Liberal International order. And once he is disposed of in twenty twenty and we get a new president someone like Joe Biden, we'll go back to the old way of doing business in the Liberal International order will survive. I think this is a deeply flawed way of thinking about what's happening with regard to that order that order was in deep trouble before, Trump got elected, just think the Iraq war, the Afghans, STAN war, the fiasco and Libya defeat. Lasko in Syria to Gasco over Ukraine, to two thousand eight financial crisis, the euro zone crisis Brexit, just a name of few of the problems. What Trump did when he ran for president in two thousand sixteen was he pointed out all these failures. He said, the Liberal International order was bankrupt and he got away. Acted and he got elected because many voters, clearly understood that he was correct. So the argument that Trump is responsible for wrecking the Liberal International. Order is dead wrong by what distinguished Trump from a lot of the Republicans and Democrats in two thousand sixteen was he's belief that democracy was not an expo commodity, and you think about it, John thirty years ago. This she had the full of the Berlin Wall, the claps Ivy, communism and the consensus that ease ago, I roll friend Francis, Fukuyama democracy was the wife of the future, what happened. I think that would happened was that we came to find out that not everyone in the world likes democracy, you and I may think it is the best system. But the fact is that they're all sorts of other people world, especially if you go to a place like Russia today, who would prefer an alternative form of political system. And in this case, it soft the -tarian his, so if you're in the business of trying to spread democracy around the world as the United States was in its pursuit of liberal. Gemini, what you discover is an extremely difficult task and it's an especially difficult task. If you use military force to spread democracy. In other words, you try to spread democracy at the end of a sword. And this, of course, is what we tried to do in Afghanistan. And in Iraq, it was with the Bush doctrine was all about, and those ended up being close. Oh failures, you'll critics will say though. Not standing all these setbacks that isn't it inevitable that as human con progresses than the prospects for democratization, and universal peace are enhanced and that, you know it was seeing this right now. There's still talk that China will eventually become a liberal democracy in these protests in Hong Kong that we've witnessed in the past fortnight that shows that eventually, China will buck, and become more liberal, democratic signed thing for Russia. How'd you respond to that? I just don't think it's inevitable. I mean, I want to be very clear, I think democracy is the best political system, and I think it would be a good thing if every country on the planet was liberal democracy. But the idea that that is inevitable as simply wrong. The fact is that Uman beings find it very difficult to agree on questions of what is the best life? What is the best political system, and would Frank Fukuyama and others? Assumed when the Cold War came to a conclusion was that everybody in the world. Wanted to live in a state, that was a liberal democracy. And therefore, with fictive -ly had the winded our back in our endeavour to spread liberal democracy, all across the planet, but that assumption has proven to be wrong. The fact is that the spread of democracy is not inevitable. And by the way, if you go back to two thousand six fast forward to the present what you see is that the number of democracies in the world is decreasing not increase. I think the New York buys freedom house's documented that. It's come down something like ten percent in the last ten or so years. Raw joan. It has. And that is regrettable. But it just points out that this is not inevitable. And again, if you get into the business trying to sprint liberal democracy when it's not an edible. And there are viable, alternatives, you're going to run into a whole his just as a conventional wisdom's are often wrong guy back to that consensus at the end of the Cold War that democracy was the wife of the future. One orthodoxy, that's also Baynes smashed in the last that he is. John is argument that nationalism was a thing of the past on the eve of the European parliamentary elections as Jordan, Claude Juncker. He's a leading European bureaucrat. He was asked about the growing reactions about, you know, against Brussels and the AU and the rise of nationalist movements across Europe. This is from CNN in general with the with the EU elections coming up, the euro skeptical right-wing forces seemed to be very strong in many countries. How does how much does that concern? You why do you think that is what's wrong with the what's your? We'll just. And if that wasn't tone-deaf enough, he added these populous necessarily stupid necessarily his day, I love the country and they don't like the others. Join me Sharma. What do you make of comments? I think it's a remarkably foolish comment. The fact is that virtually every leader of a western democracy is a nationalist just take, Madeleine Albright, who was once secretary of state here in the United States and is viewed as a canonical liberal. She's also a nationalist at heart. She wants famously said that America is the indispensable nation. We stand taller and we see further if you think about her words, she is saying, America is the indispensable, and I underline the word nation. That's at the heart of nationalism virtually every leader, whether it's an Australian or. Japanese or German leader feels that his or her country is something very special in their deeply devoted to that country. That's what nationalism is all about. And what you had in the post Cold War, period up until very recently is a situation where liberalism and nationalism coexisted, but hardly anybody ever talked about nationalism. But once the Liberal International order began to crumble people began to talk more and more about nationalism. And they felt at a lot of those liberal policies in fringed on national policies and on nationalism and ways that they didn't like, and the end result is, you got Brexit and Britain, and you got Trump and the United States and you know what you have in places like Poland and Hungary as well. So in nineteen states clash with multilateral institutions, nationalism, always Trump's liberalism that show alone. My view is that liberalism and Nash. Nationalism can coexist. But when particular liberal policies begin to bump up against nationalism, nationalism will be liberalism, every time because we are all ultimately social animals. We are all alternately very tribal in our nation matters to us greatly. I think virtually every Australian cares greatly about Australian sovereignty just like every American cares about American sovereignty.

Donald Trump Liberal International United States John Measham Russia President Trump America Iraq Frank Fukuyama International Security University Of Chicago Berlin Wall Professor Of Political Science CNN Syria Joe Biden China Ladimir Putin Hill Chris
Citigroup Hit Hardest as EU Fines Banks $1.2 Billion Over FX

Bloomberg Law

05:37 min | 3 years ago

Citigroup Hit Hardest as EU Fines Banks $1.2 Billion Over FX

"Citi group was hit the hardest of the five banks that agreed to pay European Union. Fines totaling one point two billion dollars for colluding on foreign exchange trading. Tragedies traders ran to cartels on online chat rooms that were called the Essex express in the Jimmy the three way banana split and semi grumpy old men. Joining me a securities attorney David Bessinger a partner at pissing off Schmidt and Williams. Dave explain how the traders worked in manipulated, the benchmark foreign exchange rates in these rather colorful chat rooms. While there's three basic strategies I think L I is good old front running securities markets as well. And that's when I traders aware of the going price and has his own or her own proprietary position. And at the same time also obligated to sell for a customer and tells the proprietary, I the customers disadvantage say, for example, if I'm trying to sell an eighty thousand dollars tesla. And I can sell it at eighty five thousand I sell mine I before I sell my customers by selling mine. It's gonna have it negative downward effect on the pricing. The second strategy is called banging the clothes and in the foreign-exchange market, the measured volume or the dollar amount. But by the volume of trades. And so this strategy would be breaking up. Maybe one trade into fifty and by doing it. There were a lot more traces certain price, which manipulated the market. And then finally, there was a strategy called painting, the screen and painting, the screen fake orders in the market to perpetuate an illusory price and then broker can sell his or her own proprietary positions. There's other strategies but those three are predominant in the regulatory actions. So now the EU Commissioner McGrath said these fines will send a message, while they're certainly large they're lower than the one point three billion euro penalty for banks for rigging Europe or rates and below the record three point eight billion euro penalty for collusion. So how much of a message is it really sending? Well, that's a big economic question. It's hard to measure. Evaluated is, you know, this is just the latest that you mentioned you have the euro or scandal before you had the library scandal before that you've had the same banks involved in the credit crisis. You had them in the tech wreck and all sorts of other things. Certain point one must ask what the regulators having scandal after scandal. So perhaps your question is raising legitimate concern that these are not severe enough. One of the banks are said that quote this kind of behavior has no place at the Bank. We are today. Our culture and controls have changed fundamentally during the past ten years. Is that true or is there room for something like this to happen? Even today at these banks, did you have to I suppose take that spokesperson at his or her word? But, you know, the real issues when you look at the massive size of these banks, for example, this scandal in the forex market, the banks comprising the global group that were sued both by regulators in the. US. EU. Elsewhere marketed about five point three trillion dollar trades per day that was just in the four x then you have all of the other activities. They have in a number of areas from securities, underwriting, too bonds on issuance to, you know, all the instruments during the credit crisis. So you look at the large reach these banks, perhaps, we have another four x scandal. But it does seem to make you wonder if we'll have the scandal somewhere else. Dave, I was trying to go through the investigations that are pending. There's another investigation, Bob in Credit Suisse in this area, another looking at the trading of euro-zone sovereign bonds, another potential coordination options trading in the FX market. There are so many investigations. What does that say about the way the banks are operating in the traders are operating? Well again, it's such an incredibly huge market. And so when you look at just the release it, we're talking about, you know, the ease variety of text messages. And like you say, in the introduction, you've got the Essex express and so forth. But then you go back, Bloomberg ran the first story I think, apparently in June twenty thirteen and there was a whole host of other foreign exchange channels. As part of that came out through class actions, the United States, actions and so forth. So it's hard to imagine regulators getting their hands around everything. Because again, it's just such a huge market when three British traitors in a group known as the cartel were tried there were actually acquitted by federal court last year of using a chat room to coordinate trades and manipulate prices, what did they show that led the jury to acquit them I can't speak to that instance? But I think one of the problems that you see in a lot of the allegations is that the regulators will try to insinuate wrongdoing because of. Nicknames. For example, that British pound to the US dollar trade is called the cable the New Zealand dollar to the US dollar is called the Kiwi. They have enormous numbers of nicknames. A lot of them are kind of cockney flying to make the traders look bad. And the traders are legitimately allowed trading to communicate and they're gonna communicate often like everybody else does these days by text. And so a lot of the texts are a lot of them involve trading and taking and to convict criminal court, you've gotta show guilt beyond a reasonable doubt. You typically would have to show intent and a jury is gonna wrestle with those

United States Essex Dave EU Citi European Union Front Running Jimmy Credit Suisse David Bessinger Attorney Partner Europe BOB Schmidt Bloomberg
 4 countries vote in high-stakes European Parliament election

Marketplace

02:40 min | 3 years ago

4 countries vote in high-stakes European Parliament election

"Ryssdal is on this today from the European Council on foreign relations, and I thought it might be useful as a way to set up our next story, it was a survey by country of people from e you countries, asking you a whole bunch of questions including whether people thought it was likely that the e u would fall apart in ten to twenty years in every country in the EU, except Spain majority of people said that was realistic, including fifty eight percent of the people in France. And that gets us to this elections for the European parliament or this weekend, and have been described as a battle for the soul of the European Union, essentially more union or less the economic consequences of which are enormous. Here's marketplace's Stephen beard, make no mistake says veteran French political analyst Dominic Mazi this vote is the most critical in the history of the European parliament way at stake. Fundamentally is the survival of the European Union project. Are we going to break it or to keep it Donald Trump's arrival in the White House? He says, along with the inexorable rise of China, make a United Europe more necessary than ever. There is less America in the world, and much more China, and they should be more Europe. And no one is more committed to more Europe than Emmanuel macro. The European and some not the Frenchman to celebrate Macron's victory in the French presidential election two years ago. It had been years since a main national position in western Europe, had run an election on an openly, and admittedly, and proudly per European message. That's Alexandra Holroyd French lawmaker from microns party on mush as president macro has cast himself as the savior of Europe. He's called for a joint e you military full. So common defense budget, and the finance minister for the whole euro-zone more cooperation between Member States of the European. To ensure whether you're achieved which is peace and the prosperity and cooperation will different kinds of field where we need to be to get the message from the main rival party in these European elections. Couldn't be more different. Long live. Liberty long live, a wonderful Europe of nation states, long-lived fronts. Shouts marine Le Pen, head of the right-wing national rally. The party's chief spokesman is long Jacko belly. We won't nations to be back

European Union Europe European Parliament European Council Donald Trump China Macron United Europe Stephen Beard Dominic Mazi Spain Ryssdal France Alexandra Holroyd Political Analyst White House Finance Minister America Member States
Dollar jumps after weak economic data knocks euro

Rush Limbaugh

00:28 sec | 3 years ago

Dollar jumps after weak economic data knocks euro

"Sixty nine individual earnings reports affecting stocks this morning. Asian markets down across the board and European markets. Are mixed this morning on weak manufacturing data coming out of the euro-zone oil prices slightly higher after falling yesterday. Gold is flat dollar a little stronger against key foreign currencies particularly against the euro. Well, interest rates have backed off just a bit. The yield on the ten year note just above two point five five percent digesting. The latest economic data earnings reports and political reports out of

Five Five Percent Ten Year
"euro zone" Discussed on Biz Talk Radio

Biz Talk Radio

04:26 min | 3 years ago

"euro zone" Discussed on Biz Talk Radio

"We look at the euro zone all of the countries combine the zone, not any European nation. Not Germany, which is the largest economy in the euro-zone nine Germany, not France, not Italy, not the three largest not even those three combined. But when you combine the euro zone. It is the largest economy in the world. So obviously, it impacts China China impacts them it impacts us as well. And we impact them as well. So this is a huge number. It gives us some idea. And it also gives us some cause for concern. So when I talk about Deutsche Bank more more numbers coming down your Bank, those you back stock up right now because if the if the merger with Commerce Bank does not go through the second largest Bank in Germany, then there is a unique credit is preparing to make a rival bid of four. Commerce, knee, bang, which is going to form a nother large Bank, which would be the better of the two scenarios because now from just purely from private sector perspective and the health of an economy, having another large Bank along with Deutsche Bank is going to be a good thing. It makes absolutely no sense for Deutsche Bank to merge with Commerce Bank because they both have a lot of problems. And combining those problems are going to make a bigger problem. Not help the problem. So I am concerned. I've been concerned I've written about it. Numerous times, I talk about it on a regular basis. And it is something that we ought to be thoughtful about and concerned about the problem. So needless to say London markets right now are concerned there. Little spooked right now over this whole global economy slowdown, but in particular in the your zone, and let me just say something to all my friends in Great Britain. We have actually have partners from Great Britain. And from what my Great Britain partners. Tell me there is a there are a lot of people there that listened to the program. So let me just say to my friends in Great Britain. If you. Let this Brexit thing. Just implode and go away. You will be saying to yourself. It's the biggest mistake you of made you Great Britain one of our greatest ally. Our best ally. If you Great Britain's squander an opportunity for economic freedom. I Frank as a nation to ban once again back on your own two feet to be able to grow build an expand a an economy with out the overburden of rules and regulations coming from Brussels that you have no control over because of an effort to begin globalization right there in the euro zone. That's what it is. And you have an opportunity to step away from that to have the three domes. That will soon. Be unparalleled anywhere in the euro zone. And if you squander that if you let it go you're making a huge mistake. But here's the problem. We have politicians and the members of parliament have in my opinion. And I'm not there I'm here. But my opinion had insulted. The great people of Britain. Vivid? Dan, first of all they're going.

Great Britain Deutsche Bank Commerce Bank Germany Britain China China euro-zone London Italy Dan Frank France Brussels two feet
"euro zone" Discussed on Biz Talk Radio

Biz Talk Radio

06:16 min | 3 years ago

"euro zone" Discussed on Biz Talk Radio

"Back to financial issues on dance is great to be here. I wanted to talk about something that's going on in the Konami right now. Of course, you know, day president she'll be meeting with vice prime the vice premier of China. They're expected or at least hoping by the end of today, or maybe the end of the week that they will he will announce a date firm date of when it will be meeting with president shoes. So hopefully that he president Xi, I'm sorry. And hopefully that will that will happen sooner rather than later. So there's a lot of concern. Everybody is waiting for any kind of news that is going to come out in in a positive direction in reference to U S China trade deal, and I got thinking about that this morning because some numbers came out of your that that drew, you know, shine a spotlight on this a little bit more. And I wanted to talk about put in perspective for you. But look you've heard me sad. I don't think the. China trade deal. It is a big deal with a big deal for the markets because it's a bit of uncertainty that everybody would like to shake let me just tell you a couple of things. So first of all, we've got German manufacturer German manufacturing came out today. And it. Big time. Not just a little bit down. Thanks big time. And when we see that it is definitely a cause for concern. So manufacturing orders stuff, February number manufacturing came in at an negative four point two. Now, keep in mind that is on the back of a negative two point one. So year and a half about a year ago. I'm going to say about a year ago was saying that look the euro zone is right there. So close right on the age teetering on recession. And I also said that Germany was going to usher in the recession for the euro zone. It's going to be primarily that. And Finally, I thought we were going to see a negative number for fourth quarter last year, and we didn't they hung on by the skin of their teeth. But this is not good for the euro-zone. Matter of fact, this number came at this morning your zone stocks trading in negative territory. But let me just put something in perspective because I have been so concerned about what is going on the euro zone. And this brings more concern to me, and I wanna tell you why. The u U S multi-national companies US multinational companies. Are are that's about fifty five percents of global foreign of Philly income is coming from these multi-national US multinational companies so US corporate earnings US corporate earnings in the euro zone. Last year two thousand eighteen eighty hit a record high. Now, you know that the last two months of the fourth quarter wasn't so great. So that means most of that gain prior to that. But it ended up in two thousand eighteen that prophets. Were up from the euro zone to the US seven percent to two hundred and eighty four billion dollars over a quarter of a trillion dollars two hundred eighty four billion dollars. And this is what came out of your now, though US affiliates that are profiting from China. Everybody is so concerned about. Was down for two thousand eighteen one point one percent. Euro-zone was two hundred eighty four billion to the US. China was thirteen. Thirteen billion. So. I was I was happy to put those numbers together. Because it helps me. Put into perspective because two people at the retreat were asking me asked me about this. And why it is important. There. It is right there that is a huge number huge number. And when if the euro zone goes into recession, which I expected will by who knows it might be the end of third quarter or the end of the fourth quarter. Probably but could be as early as the third quarter. If it goes into recession. It will impact America. If shaina goes into recession that's going to impact a little bit. But there's a big big difference between thirteen billion profit that comes into the US multinational companies from China and two hundred eighty four billion that comes in from the euro zone. This is why this is so concerning a lot of it. And they're not talking about this in the media. I'm not sure why. Yes, I am. But aside from that, they should be. So when we look at what is happening in the euro-zone, we need to understand. That this is a large part of our economy. It is a problem. It is a.

US China Euro-zone president president Xi Konami U S China German manufacturing Germany shaina America two hundred eighty four billio eighty four billion dollars trillion dollars seven percent one percent two months
"euro zone" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

10:04 min | 3 years ago

"euro zone" Discussed on Bloomberg Radio New York

"Better euro-zone services data offsetting the gloom in manufacturing unlocking, high upon Geotech and political tension hanging over the fed the president reportedly telling Powell I guess, I'm stuck with you live from the Bloomberg interactive brokers studios Hallo Wednesday, it is risk on with futures positive four tenths of one percent on the S and P five hundred in the bond market treasury yields are high by four basis points to two point five one three percent up three basis points to two point three three percent on a US two year in Germany with the better services data out of the euro zone. We get a left and went back into positive territory on a German tenure yield just zero. Oh point zero zero one percent on the session, though, up five basis points on the day in the FX market as the mood builds and it gets a little bit better the euro's positive euro-dollar positive by around about a third of one percent, a stronger euro, a stronger, pound weaker Japanese yen. So from my staff Jonathan Farrow here in New York. It's a lotta Tom Kaine in the city of London and mister Cain front and center. Those comments reportedly from the president on chairman pal. Just a fascinating, let's go through this carefully. John before we get to in guests a little history. John the president of the United States was assassinated, this is November of nineteen sixty three and the vice president LBJ stepped in and said, let's go let's go let's go in his conservative of venerated chairman William mcchesney, Martin said no and they had some real tensions. But not as rough is the language that's being bandied about Jonathan swan. And Mike Allen over heels have two sources suggesting the president's looking at the former fed governor, Kevin warsh, and as we all know, it's the classic phrase. John farrell. This is uncharted territory. So to some degree though, Tom that's sold. News reporting to the president did consider at some point last year, replacing the Federal Reserve chairman with the former fed governor Kevin wash. I think where we are. Now is where the Wall Street Journal takes us, which is a report that the president reportedly said to chairman pal. I guess I'm stuck with you. So we'll start with a chairman and most people assume we are let's talk about the political tension that continues to hang over the Federal Reserve we still hear from the administration, but they want fifty basis points of rate cuts. We've heard that from Larry Kudlow, and we've heard that from the presumed knowledge. Yes. More morris. Well, whether that makes life complicated for chairman Powell, I think remains to be seen some I think the huge part of the community. And folks, those aren't sophisticated on this all you need to know is this is a real inside baseball topic. But John I would suggest a fifty beat cut which talks about the time of Arthur burns for smoking a pipe and all that thinking big thoughts. That would be hugely unusual in the modern day hugely unusual because of weather data set is right now in the sites, Tom. We don't have a recession. It's not here. If people are forecast, it's not happening in the next couple of months, the data still, okay? The Sam last week. In fact, earlier this week was ready tastes, then we're up twenty one percent since Christmas Eve, the fed has done a round trip. If anything you'd think the president would be giving chairman Paul a victory lap right now. I don't know about that. I think a lot of Wall Street of Qasim criticism for chairman pal the way he's down with things the last six months what I think is unhelpful for the administration to go after the Federal Reserve, I think it makes life quite complicated. If the Federal Reserve did want to deliver to rate cuts a lot of people will look at that situation. Now as if they bowed down to political pressure. And I think that's the position the Federal Reserve really does not want to be. And now I'd have subscribe to this theory. But there is a theory out there that the Federal Reserve tight right at the end of last year, and they hiked rates only because they wanted to send. A message that they were politically independent subscribe to that theory. But I think it's unhelpful that that theory is out there. And I think the polls for a fifty basis point right cut now are unhelpful once again, I wanna bring Vasilius genetics dragged him into this conversation. Jake Lombard Odier the city this make a difference. It's a lot of noise, and I'm just trying to work out. Whether it really disrupts this FOMC. I think it's definitely disrupting for the FOMC all these noise all these rumors again, I I'm on the same page as you are in that don't subscribe to this. Rumors. I think the the Federal Reserve has maintained its its full independence and autonomy in making all decisions. One may has to question the timing of of the shift in what actually changed between December and January. So that we have such a massive shift because in December we already had a collapse in market. But nonetheless, you know, I'm stealing the Cam that the fed is operating in a totally independent environment. But as you said, this is definitely not helpful. And it is putting a lot of pressure on them. Now in intensive the fifty basis points cats, look at what I think is interesting is that we find ourselves free of us and potentially a lot of other people that are actually discussing the US had been station is the one that's looking for a fifty basis points gotten I find this absurd. This is the job of the Federal Reserve that's the job of the central Bank. And they use administration has no business into contemplating hikes or cuts in in in the federal funds rate right for Cilliers, Kevin wars somewhat Powell alike with rand. Cross ner appointed a zillion years ago. He got some real criticism on his confirmation, and I would suggest guys does governor warsh delivered the goods over his tenure that he did a pretty darn good job. Given the worries that he was young or inexperienced in mortgage evil Morgan Stanley in all that. Why would we think anyone appointed by the president other than a complete Homer? But why would we think chairman warsh would do what the president wants? But I don't think this is the issue. I think the issues that it creates a precedent. If something happens, the I think the main problem is that it has never happened. And I'm not entirely sure that the legalities of it if it can actually happen. But let's say he does happen personally. I think it's a very very low probability. But if he does it creates a really agley president, John I've got to interrupt. I believe right now, I'm seeing live prime minister may Mr. Corbin, and they're going at John is me as a foreigner. I've never seen prime minister's questions taking place in house really going at we'll bring you some highlights of that a little bit later. I think Vassilios decision has largely been resolved. I think the administration recognizes now that they can't get rid of chairman pal. I worry about is that the president is getting bad advice. And he's getting advice from those around him. I think he realizes it had some bad advice from Treasury Secretary Steven Mnuchin on chairman Powell, these are the individuals in and around the. President suggesting who he should nominate for the FOMC. He chose chairman pal on the advice of secretary Mnuchin Chen, Pao was never going to be the Federal Reserve chairman that the president wanted, and let's be clear if Kevin warsh was the second suggestion for the president of the United States Kevin wash was never going to be the chairman of the Federal Reserve the president wanted Kevin wash is not the Uber dove of this cycle. That's right. That's right shape or read which makes me wonder, why aren't they making suggestions to the president that palatable for the Senate, and ultimately have the policies that the president would like once he sits down. She sits chairman. Why not chairman Kudlow he's earned it with public service? Honestly, I don't know. I don't have the answer to this. And I have to say that I've been puzzled by a lot of things that this administration is is going through right now. I think I get the sense, however, and respective of specific names for that could be nominated later for fed and everything I think the administration right now east getting the feeling is starting to get it that the fiscal stimulus that was inactive with in. My view was totally and timely because it was implemented at the full employment. Exactly. When the economy was firing at all cylinders is going to start fading. These impo fiscal impulses are gonna start fading in potentially getting worried about this because we're getting closer to the next elections. And then the trying to come up with potential suggestions, so discussions that will be able to cushion the blow that is going to come. Waning fiscal impulses. This has been wonderful facilities. Genetic is thank you so much. It's just very strong. Thank you so much, Bloomberg Olea, John. The news flow is just extraordinary. It is. I don't know where to begin. Well, let's begin with the F T report that I think he's really directed. Marcus this morning reporting that the United States in China have resolved most of the key issues. In the way of a trade deal. This is Trey talks resume in Washington. So futures do get left and your market. Check is brought to you by Renaissance Capital issue of. In pre IPO research putting nearly complicate companies to work in investor portfolios. To learn more visit Renaissance Capital dot com. Haizhu price action about half of one percent on the s&p five hundred futures a positive fourteen points in the FX market that dollar weaker against all of g ten with the exception of the Japanese yen a week again a reflection of that improving. Bruce appetite this Wednesday morning, the euro positive four tenths of one percent in the bond market treasury yields get a lift by four basis points two point five one three percent, but the real market moving. Data comes from Europe with euro-zone services PM, I really improving unlocking higher yield in the German bond market burns five basis points on a German tenure and back just about impulsive territory from New York and London. This is Bloomberg radio. Now, the news in.

chairman president Federal Reserve US Powell Kevin warsh Tom Kaine vice president chairman of the Federal Reserv FOMC John Larry Kudlow Kevin wash New York Jonathan Farrow John farrell Jonathan swan Wall Street Journal London Renaissance Capital
"euro zone" Discussed on AM 970 The Answer

AM 970 The Answer

01:43 min | 3 years ago

"euro zone" Discussed on AM 970 The Answer

"Zhanna Steve Scalise. Even now that the attorney general makes it very clear there was no collusion. The chairman of the intelligence committee will not recant his previous statements that have been discounted. Democrats quick to defend shifts to shift is a member of the highest integrity, highest intellect and great responsibility Jordi leader, Steny Hoyer, saying that shift will continue to investigate Russian interference in the twenty sixteen election to make sure it doesn't happen. Again. Capitol hill. Correspondent Wally Hines adds that attorney general bar plans to release the full but redacted version of the three hundred page report to congress by mid April at the latest President Trump's decision to revive ObamaCare debates during political and policy debate among the GOP on how to best approach divisive issue heading into the upcoming presidential elections. He's looking to Senate Republicans for their ideas European Central Bank head. Mario Draghi says the euro zone's top monetary authority is ready to take further action. If the current uncertain economic outlook take. A sudden turn for the worse. Draghi says the Bank would take quote, all the monetary policy actions that are necessary and proportionate in addition to steps taken at its March seventh meeting when an extended the earliest for reading creases and announced new cheap loans or banks froggy says the economy faced pervasive uncertainty from a slowdown in global trade off domestic demand remain robust dragging notes, the Bank could respond to weaker than expected inflation by adjusting its timetable for interest rate increases correspondent Jeremy house reporting right now, the Bank says rates will not rise before the end of the year. News and analysis, townhall dot com. The army national guard is.

Bank Mario Draghi Steve Scalise attorney Trump European Central Bank Steny Hoyer Wally Hines chairman Jordi congress army Jeremy house GOP Senate President
"euro zone" Discussed on Biz Talk Radio

Biz Talk Radio

03:03 min | 3 years ago

"euro zone" Discussed on Biz Talk Radio

"Next week not this week. He's going to have to announce that, hey, we're going to be we're going to post pain that because the closer we get to March. I though more volatile markets are going to get if we don't get any kind of real news about what is happening in trade. So the president's going to have to do that at some point in time and just say, hey, look, we're going to wait another month, or whatever it might be. So hopefully, that's that's what we'll see happening. The U K obviously positive right now are not the UK. I'm sorry. The euro-zone positive right now. We'll see if that can continue. We are worried about the global economy, and what is going to happen. I think Brexit is very much in focus. That's another thing that caused the markets to drop if we don't get US trade, obviously that that will as as well. So we've got a lot of just a various uncertainties. There's a lot of uncertainties in the euro-zone around the financial sector. I was amazed to see the at the open opening of the your European markets to see financials leading the way I was shocked by that banks leading away. It's like holy mackerel. What were what's wrong with these people? But apparently, they're blowing off potential concerns and problems in the banking sector. I think that's the wrong. But it is what it is. So we'll wait and see. But hopefully, the other thing is this week Friday is the deadline. President Trump came out and said look one way or another. These are his words one way or another. There's going to be a wall. In other words, if it's in the deal, or it's out of the deal or whatever. Now, the Democrats with a seventy two percent. Approval rate on building the wall. According to the ABC poll after the state of the union speech to the Democrats who really want President Trump by hymns sell not the party, but President Trump by himself to get all the credit for keeping our country safe. That's where they're headed. So one's gotta believe they're going to come up with the deal. They're going to have to do it today or tomorrow, they gotta be scrambling to come up with a deal that is including a barrier to make them happy. So we gotta think that a deal was coming. It's gotta happen by the end of this week. Will they wait till the eleventh hour, of course, they will. But it sounds like President Trump at this point. It's not going to shut the government down. But he's going to build a wall. So. We'll send you. All right. We've got our Agra coming up. The ACA commodities get a little bit more focused than normal as they should be Craig Albert are Agra.

President Trump Craig Albert president Agra US euro-zone UK Brexit ABC ACA seventy two percent
"euro zone" Discussed on WTVN

WTVN

01:46 min | 3 years ago

"euro zone" Discussed on WTVN

"On today today because it means. That someone will live or die possibly tonight or tomorrow. We need to move quickly on a story that is. Well, it could be you. It could be you. And it's happening in Tucson, Arizona. And I tell you about it in one minute. This is the Glenn Beck program. All right. I don't know what the future holds for the economy. I'm hoping things, you know, stay together. But recessions happen in we're way overdue for a recession and things are very very dicey. There was a an expert today. I read I think it was in the Wall Street Journal. He said we're watching the disintegration of the euro-zone and Europe Europe is falling apart and coming apart at the seams, the whole world seems to be that way. But there's some new technology on the horizon that really can help us in one of those things is blockchain crypto currencies. But I believe Warren Buffett is right. You better. Don't invest in anything that you don't understand. Well, it took me three years, and I still don't understand blockchain. And I recommend that. I understand it. You understand it? We all understand what crypto currency and blockchain means for the future because that is the currency of the future idea to under. Stand. The investments your money is in. This was really hard. It is hard. You have to actually spend some time. Understanding you have to have somebody who knows it and can teach it effectively and that teacher is t- Katori. We asked him to put together a smart. Crypto course for.

Warren Buffett Europe Glenn Beck Wall Street Journal t- Katori Tucson Arizona euro-zone three years one minute
"euro zone" Discussed on KTOK

KTOK

01:44 min | 3 years ago

"euro zone" Discussed on KTOK

"Today because it means. That someone will live or die possibly tonight or tomorrow. We need to move quickly on a story that is. Well, it could be you. It could be you. And it's happening in Tucson, Arizona. And tell you about it in one minute. This is the Glenn Beck program. All right. I don't know what the future holds for the economy. I'm hoping things, you know, stay together, but you know, recessions happen, and we're way overdue for a recession and things are very very dicey. There was a an expert today. I read I think it was in the Wall Street Journal. He said we're watching the disintegration of the euro-zone and Europe Europe is falling apart and coming apart at the seams, the whole world seems to be that way. But there's some new technology on the horizon that really can help us in one of those things is blockchain in crypto currencies. But I believe Warren Buffett is right. You better. Don't invest in anything that you don't understand. Well, it took me three years, and I still don't understand blockchain. And I recommend that. I understand it. You understand it? We all understand what cryptocurrency and blockchain means for the future because that is the currency of the future. It was a good idea to understand the investments your money is in. This was really hard. It is hard. You have to actually spend some time understanding that you have to have somebody who knows it and can teach it effectively and that teacher is ticket to worry. We asked him to put together a smart, crypto course.

Warren Buffett Europe Glenn Beck Wall Street Journal Tucson Arizona euro-zone three years one minute
"euro zone" Discussed on Biz Talk Radio

Biz Talk Radio

09:52 min | 3 years ago

"euro zone" Discussed on Biz Talk Radio

"We it's the first time since nineteen sixty nine that are first time unemployment claims have dipped below two hundred thousand. Because you know, and even an all Konami, there's always turnover there's always work. So all these people filing for unemployment not. Not not this week. So that's very good numbers. Tried the phones. Again, let me go to Keith. Keith. Can you hear me? Kate. Yeah. Okay. So. All right. Sorry about that. Folks. Eight four four seven zero seven fifty five thirty three. You can cure your call up right now. Not look so good. So leading economic indicators. Showing us that. Things are still good. Just one tenth of one percent. I talked about Venezuelan e the euro-zone PMI showing that the economy kitchen used just slow the yours. Our economy continues to slow according to business surveys that were released this morning. So European Central Bank meant for the first time this year. So the European Central Bank just now meeting I I don't wanna break, but they got a crisis over there man, they got major issues throughout the euro zone. And they're, you know, well, it's holiday man, they're on vacation. So, but they're just now meeting and apparently this morning when they meant for the first time, there seems to be this consensus that there is a very very low risk of the economy going into the inflation into I'm sorry into recession. Apparently ambit- looking at the numbers at least not the same numbers. I'm looking at because it sure looks like that is not the case at all. But they they meant for the first time, and we're looking at manufacturing service sector index that fell to fifty point seven from fifty one point one that's the lowest level in five and a half years. It's time they start getting concerned for the euro zone. It is time to get concerned, and they are seven tenths of one percent away from being in contraction mode, and one could argue that they in fact have been contracting for the last three months. I mean, they're coming off of their highs. So obviously, this is a very difficult situation. Mario draghi. Acknowledges the risk of the euro-zone economy is low. But look this is a guy. This is a I don't I don't know how he still has a job at the ECB has done nothing. They have done nothing for years for two years. Two years. He has been talking about. Starting to move forward in their quantitative easing to try to get away from the negative interest rates to try to develop a stronger your role. To help the economy. They don't wanna do that. They're scared to death that this economy would struggle and suffer even more which it might. But at some point in time, these interest rates have got to get and they don't have to get normal. They're not gonna get normalized for a long time. But they've got at least get to a place where they're a lot better off than they are today. I'll try one more time. I'm only assuming nobody's talking to me that they're trying to fix the phone. So since I don't know I just keep try so let me go to MARCY again MARCY there. Nothing. Okay. So. I don't know. I again, I can only assume that they're trying to get things. Worked out in the studio. Ford Ford has been in the news a lot last night. They had their conference call. I missed the first half of it heard the second half of it Ford keeps expectations for the year under wraps. So basically what I and a lot of other people in a car were looking for was some sort of guidance for two thousand and nineteen. They don't wanna give any guidance. Now, I don't like guidance. I think no, I don't think any companies ought to be giving forward guidance. I'd like I wish they would just do away with it. But nonetheless, they are saying that they've got big plans. The numbers didn't look bad. They are feeling very confident about where they're going. They had decent earnings reports. Earnings report. You know, I think it was decent compared to where they were last month. They are totally restructuring. They've cut a deal though. They have not released the details of the deal. The assumptions are the deal with Volkswagen is to try to help Volkswagen develop a Marco with commercial vehicles, commercial, trucks, F-series and such. So that is one thing they are releasing a all electric vehicle, and but there again, everything is kind of under wraps right now with with Ford soda or be interesting to see we're not going to likely get any more news than what we got out of the conference. Call yesterday at Ford is not talking. I would say Ford was way ahead of the curve Ford Motor. I wish I could have more my list. I don't have more my list. I wish I could. But I've got a look at them there. A major industry here in the US. And they give us some guidance a little bit of guidance system. What's happening in the automotive industry, which facts probably. I don't know. I'm gonna say ten fifteen maybe twenty probably more like twenty stocks on our list. So it's one of the reasons why we watch it so closely. So anyway, Caterpillar comes out with. Great numbers. Goldman Sachs issued a very strong report on oil and gold. They seem to think that gold neuro going to be good that to me says that they must believe that inflation is coming into the marketplace. These are commodities that do well during inflation. Now, I happen to think gold, I happen to think oil is a much better. Hey DJ against inflation. Then is gold. But nonetheless. Oil again was pulling back earlier, and I didn't get a look at it here. I'm going to get a look at it right now. But it looks like. As we look. Yeah. They're about the same. Basically west Texas intermediate has not budged Brent crude oil has gone down a little bit further. But we're looking at fifty to fifty seven fifty to fifty seven for west Texas intermediate. And a lot of that has to do with our. Companies that are engaged in all the fracking here in the United States who has cut they have cut back production. And I guess it looked they're still from what they have said. For what they have said. They are. Within profit margins at these prices now go back just three years ago, and the fractures you would say man, they're not they can't make money below sixty five dollars a barrel. Well, that's changed new technologies more work and. So. Anyway, that's that's what's happening. So we'll see. I mean, we'll see what happens with oil. But it it would appear as though that we have some hope of getting oil in in some sort of balance, and that would be great. If if that could happen if we could start seeing balance coming coming in here. So. Anyway. We'll see how things go with with oil. We're going gonna watch that very very closely. Global oil is the big problem, and listen, we I, you know, there was some news this morning that there was concern about oil supplies as a result of Venezuela. Well, I, you know, look, I don't think supply is going to be. A loss of supply is going to be much of an issue right now. I think the big news is demand, and we are seeing loss of potential demand in global oil, and it's dead or win. This is Kate. Disorders. Then there is a news safe better a natural alternative to better digestive wellness and heartburn relief. Brexit,.

Ford Kate European Central Bank Keith United States Konami Volkswagen Ford soda Mario draghi Ford Motor ECB Goldman Sachs heartburn Caterpillar Texas
"euro zone" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

01:59 min | 3 years ago

"euro zone" Discussed on Bloomberg Radio New York

"Don't think so we have to use home. It's it's working. If the amendments would still have had to Giller the difficulty when the banking crisis erupted in two thousand eight we would have run the risk speculators would have killed us be given the size of our banking sector compared to the size of our own currency. So we've been very fortunate to have two euro at brought us many positive. Yeah. But basic premise is that collectively we will aim for a higher level of convergence through competitiveness whilst making sure that we deal with our own problems at home. You cannot export those problems to the collective the euro-zone has been very fortunate as well to have president. Mario Draghi over the years. Have him at the end of this year. If you've been dose the nation yet that could head the European Central Bank. Have you got any idea of who? And what country would like to see at the top of the. I have some ideas. But I. These positions have to be taken a little bit behind the scenes, I cannot get into some of the ideas because some people are worried that if it is someone from Germany. That the decisions made won't be for the continent on Africa. The decisions will be made as Tom points out with that north-south divide in mind that we will have strict attacks and monetary policy. I don't find the passport president what we need again is a president who understands that he or she is there for the collective is there not to fill the gaps which politicians have left my forced into thousand twelve to fill those gaps when he says, I will never actually the euro down. And I will do whatever it takes to the London Olympics in two thousand and he has done a marvelous job over the last six and a half years, and I would hope for his successor that the politicians me my colleagues we will do what we need to do. And don't leave it to the president. When did you think we've got a decision on all of this has to be somewhere this year? But I don't know exactly. Exact timing from it the moderator. Of the Netherlands here in Dallas, one thousand twenty two miles from Amsterdam to Rome. If you just..

president Mario Draghi Tom Giller European Central Bank Africa Germany euro-zone Olympics Netherlands Dallas London Amsterdam Rome
"euro zone" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

06:31 min | 3 years ago

"euro zone" Discussed on Bloomberg Radio New York

"It's a balloon. Berg consumer comfort index, and it's leading economic indicators at ten and about twenty companies in the S and P five hundred are scheduled to report earnings today including Intel Starbucks Bristol Myers Squibb. That's a Bloomberg business flash. Now, here's Michael Barr with more on what's going on around the world. Michael good morning. Good morning. Karen, President Donald Trump said he would deliver his state of the union address for the partial government shutdown is over comes after house speaker Nancy Pelosi blocked him from delivering the speech in the chamber while federal agencies are closed. The man accused of opening fire in a Seabourn bring Florida Bank has been charged with five counts of premeditated first degree murder. Authorities say zephyr Xaver who is twenty one surrender to swat officers at the SunTrust Bank where he had barricaded himself yesterday after killing five people in the NBA the Knicks lost to the rockets. One fourteen one ten Houston's James harden put up a career high sixty one points. The nets won along with the Celtics in the NHL the capitals lost. Global news twenty four hours a day on air and a tick tock on Twitter powered by more than twenty seven hundred journalists and analysts are more than one hundred twenty countries. I'm Michael Barr. This is Bloomberg. Nathan thanks Michael five nineteen on Wall Street live from the Bloomberg interactive brokers studios. This is Bloomberg daybreak. Bringing Stephen Gallo, he's head of European FX strategy at beam. Oh, capital markets. Nice to talk with you this morning, Stephen. But not so nice. I guess the numbers we got on PM is out of the euro area. Weaker-than-expected for manufacturing and services were they in line with your expectations. Broadly speaking, I would say, yes, I think the the data from the number of major economies is going to continue to be on the disappointing side, not necessarily always have expectations, but just generally pointing to very subdued global growth conditions. Look, we we may be nearing about him for the global economy and for some of these indicators, but a key point going forward. Is that the rebound if if there is one as he's not going to be particularly exciting at all for that to happen. We would need erected vacation of a lot of issues in the European Union. I and and more importantly a reversal of the US China trade impasse. And we don't see that happening. At least not for the next three months. Not for the next three months. So what will you be looking for at least in the short term? I guess to to get the euro-zone a bit of a left. Well, that's a great point in the context of the backdrops that I just described economically rather than trading like a healthy currency. The euro is actually displaying we think the characteristics Giles EM currency, which which basically means it needs strong levels of global risk appetite in order to rally. So it's over to the again, they always bear this enormous burden for safeguarding the block, which is very fragile in the absence of support. So we think judgy has to go some way towards verifying the existence of a druggie put, but probably not as far as he should go in order to please global investors. And so either way we slice the cake. We think that the environment is going to be a heavy one for the euro. He he's either going to come in and be assertively dovish. Or he's going to disappoint market expectations for something relatively dovish. And either way the you're always going to trade with the heavy tone. We say based on what we've heard from drug in the past. I mean, what are your expectations? When when he does come out in that news conference in just a few hours here. Well, his options are very limited. They're limited firstly because the ECB has just made the decision to end outright purchases. And there also limited because he's in his swansong at the head of the so he's what he does now will affect the handover to new ECB president later this year. And so he's in a very tricky tricky spot. There's a lot of resentment to the quantitative easing program and negative interest rates in particularly in the northern part of the block. So he's in a tricky spot the most I think he could do is t- ups. The March rate decision when we get the new forecasts for some type of you know, policy shift on the supportive side. But don't be don't look like don't don't expect to be overwhelmed by by whatever hints, he provides, you know, maybe we're talking like new liquidity support measures for the banks maybe tinkering with reinvestment program, but he doesn't have many other options at this stage. I don't think that right now looking at euro dollar. It's a dollar thirteen forty five down three tenths percent on the session. What's your support level for the euro? Is a decent area of support. I think it's possible. We'll see a test of level somewhat below one thirteen before the end of the week before the end of the business of trading tomorrow. Three months of you is one twelve it's not a we're not looking for a huge move in in Europe. But the point is we we still don't see a global backdrop that's going to contribute to a significant sell off in the US dollar. And that's really important. You know on the one hand the said has turned a little bit more dovish tone the easy bone. It's done the PBOC bone. It's on the global economy of bone. But what has happened in the interim is that central banks have turned more dovish in response to that. So without a significant acceleration of global growth and an improvement in the global growth dictator. The dollar is going to remain reasonably firm, we think for the foreseeable future. And again, the decision coming at seven forty five. AM Wall Street time followed by European Central Bank president Mario Draghi's news conference thereafter, Stephen Gallo, head of European affects it'd be more capital markets. Always good to get your insights. Thanks for being here with us on Bloomberg daybreak and taking a look at equity markets futures contracts pointed.

Bloomberg Michael Barr Stephen Gallo US president Bloomberg interactive brokers SunTrust Bank ECB President Donald Trump European Union Nancy Pelosi Intel Bristol Myers Squibb Houston Twitter James harden Florida Bank Starbucks
"euro zone" Discussed on Monocle 24: The Globalist

Monocle 24: The Globalist

05:24 min | 3 years ago

"euro zone" Discussed on Monocle 24: The Globalist

"Live from Meduri house inland. And this is the globalist. I am Ben Ryland coming up a symbolic signing ceremony puts Franken German ties on display, but is the friendship enough to sail Europe through rocky waters, also ahead tense talks in Moscow as Japan and Russia clash of series of disputed islands will also look at the curious case of world leaders gifting the Russian president puppies most autocrats throughout history have owned dogs. And that hasn't made them any less autocratic. What it? And with China's economy slowing at an alarming rate will consider the ripple effect full the rest of the world all that. And the day's newspapers to ahead own the globalist live from London. France and Germany due to sign a treaty today that officially reused the long friendship between the nation's officials are arriving in the historic town of Elkin for ceremony. But rather than putting on a display of European strength. Many will be wondering with a strong Franco-German ties are enough to steer the euro-zone through the rocky waters of Brexit and the rising tide of euro-scepticism. Use of Yanling is a senior policy fellow at the European Council on foreign relations based in Berlin years of the signing of the treaty may be symbolic in times. Like, these apps symbolism is actually quite important. Yes. Indeed. That's quite important. You know at a at a time when the when the Kerns in the international debate run in the direction of emphasizing sovereignty and Trump never fails to speak about the normal thing of the corporation conflict between sovereign nations. This treaty is a symbol into the other direction is two countries actually trying to pull this over anti even further within an organization that is about putting sovereignty. I think that's rather. That's rather strong symbolism. It may not be undestood are shared by many. But for these for the parties involved it is renewing their commitment. We often talk about a United Europe, though, it's all about putting on a show like the signing of this treaty. But of course, symbolism also needs to relate back to something. That's a little bit more practical must go deeper than just putting on the show. How would you define the purpose of? United euro-zone. Well, France, Germany would like to see the euro zone over the long term to develop into a a truly common space which nut just is a comedy conomic space, but also and not just a common fiscal space. But also one where the main policies that are dieting and driving. This space are common in that extends into the fields of social affairs, social security, the environment energy of education of the media. You know, a comprehensive approach, that's that's what their view is. That's what also guides in a way of this new Frankel German treaty. We've seen many nations in Europe change, they leaders of the post couple of years. How has that affected? What might have been seen as the long term project for Europe? Well, it has weakened Europe. Because leadership is is in high demand in these times and at the same time most leaders of the your e you Member States now a rather cautious. Everyone has a rather strong e you skeptic movements or parties at home or in parliament, sometimes even sitting at the cabinet table. So it is not easy to see where a sense of direction a sense of guidance for e you policy within such a large circle of rather heterogeneous country should come from Britain's exit from the European Union. Of course relates back to this as well. It's clearly unleashed. Untold chaos here in the United Kingdom what the effect really been like on the rest of Europe one expect it has been reported in the news, but has the effect being as deep on the leadership in the rest of Europe as we might expect it all suspected. Be here in Britain. Well, there's a doubly effected icy on the one hand the twenty-seven have been moving closer together. I think they have seen that actually their community is a rather Fred Gile construction, and it is only as robust as the commitment to its goals purposes institutions and policies is. And I think that that is now more clearly understood and the the unity is quite strong. When it comes to stick stick together on the other hand, I think Brexit is the expression and seen as that by many around the European Union the expression of a century Fuego friend a trend to rolling back this high ambition of European integration to to return it to let's say a common market with some additional features..

United Europe Brexit France Europe European Union Germany Meduri Ben Ryland European Council Moscow Fred Gile London Britain China United Kingdom Elkin Franken president Berlin
"euro zone" Discussed on Talking Politics

Talking Politics

04:11 min | 3 years ago

"euro zone" Discussed on Talking Politics

"The emergence of on the one hand, the solid new formation of the right? But then also the emergence of this of retro western politics on the part of the of the greens, which however would form an ideal polish in partner for Merckel two point zero CD you in that context were that to be the new coalition. What would that do to that fundamental relationship with mccraw Europe? That I can guarantee that's not being discussed in Britain at all. But potentially that's the consequential part of this picture. Yeah. That was really really striking about German politics is that everyone understands them as pivotal to use the German political class understands the European stakes, but they're elections are not about Europe anymore. Anyone anyone else's directly about Europe? And it's unclear I think whether the current green party has the kind of Yoshiko Fisher foreign policy guts instincts. They not a party hardened in the way that your fishes party was by the big struggles on principle in the red green volition in the nine hundred ninety s about intervention in Kosovo. And so on that kind of fiber. He like is not constituent of of the green party at the present. They aren't a party that's been in government. They were not in government at any point during the the eurozone crisis. So they haven't really had to prove their metal. On euro-zone politics, not all these witch portfolios. They would get in that coalition where the foreign policy would really be one of their portfolios, or is the some sort of toxic coalition in which they add the green pizzazz to reconsolidation of a more conservative agenda on the part of the CD, which is I think also a possibility here and all of this very finely balanced coalition building coalition breaking is taking place with the prospect of a slowdown in the German economy, potentially recession and a wider global recession as the United States was happening in China. But if we do it from the European perspective what's driving economic anxiety in Germany at the moment. How much was that got to China? Well, I mean, I think what we're seeing is the ability of the German economic model in its current form to global economic conditions. This is the I think the path forward. I think is broadly speaking true insofar as their manufacturing sector in particular relies on high value exports of capital goods. And so on to emerging market economies. They are acutely sensitive to slow down in China. And I think we have to accept now whatever the forgiveness of the Chinese statistics may be that that is what's going on. There spin very very significant fall in investment, just a general slowdown in economic activity across the board. And so that does ripple back, and it's already Ripley Germany's slowing Germany is slowing fast now. Yeah. The manufacturing numbers of very bad for the last couple of quarters, and that's true across the board for the entire euro zone. That's been really Mark slowdown. And in the face of that the is still committed to ending quantitative easing ending the bond purchase program and opening the door to a discussion about rising interest rates, despite the fact that you know, the trigger four QE the trigger on buying in twenty fourteen fifteen was fear of deflation, the core measure of that is the circle core price indicator. In other words, not the bitter affected by all prices and extraneous factors like that. And that is not. Ending in the right direction. Right now, I've anything it's trending back towards one percent, which is dangerously close to deflation territory. So the enemies of QE will say, well, we burn we did QE all these years, and it doesn't work friends of QE will say, well, imagine what it would have been like if we hadn't done it. This is how lame this engineers, and we have to keep off to the the pedal to the metal. Then we just have to keep up foot on the gas because the economy really is a lame duck on just need this amount of stimulus, and what's the danger here that the Germans Germans have sunk so much into the sceptical position about QE that the point where they actually need the shoot themselves in the foot essentially by using this as an opportunity to justify position that's now out of date..

Europe China Germany Yoshiko Fisher partner Merckel Britain eurozone Kosovo United States one percent one hand
"euro zone" Discussed on AP News

AP News

02:30 min | 3 years ago

"euro zone" Discussed on AP News

"Digital news network. Jimmy in France sent to sign a new cooperation deal. Jimmy's cabinets on Wednesday gave the green light for Chancellor Angela Merkel's to sign the agreement with French president Emmanuel Macron, the dates of the signing is significant January twenty second. That's the fifty six anniversary of the signing of the treaty an accord sealed the post World War Two reconciliation between the former foes, the German French partnership has since become the motor of European integration. The one that has an always run smoothly. Miracles spokesman said the new code establishes, a new quality of cooperation between the two countries is meant to complement rather than replace in nineteen sixty three Elise a treaty a deer hunter is accused of getting drunk and shooting a woman instead of a deer. Police in Iowa say thirty four year old Lee Joseph riles had been drinking when he fired a rifle from the front deck of a camper hoping to hit a deer. He shot a seventy three year old woman in her home by accident and the bullet hit her in the head the wop low county sheriff's office says she was cleaning her stove when she heard a loud noise and felt pain in the back of her head when she saw that she was heavily bleeding. She drove herself to a hospital where doctors operated on her and removed. A bullet riles has been charged with being a felon in possession of a firearm and reckless use of a firearm. Unemployment fell across the nineteen country euro-zone in November to a decade low rate. The European Union statistics agency Eurostat said there was a nine hundred thousand monthly full in the number of out of work to thirteen point zero four million that reduced the overall rate to seven point nine percent from the previous months. Eight percent unemployment across the eurozone has been falling steadily. Since two thousand thirteen is the region recovered from the global financial crisis. However, ongoing worries about the level of government debts in a number of countries kept unemployment high searches in Greece in Spain in recent days. Evidence has been piling up that the euro-zone recovery loss momentum's than anticipated at the end of twenty eighteen particularly in Germany, and that could have an impact on businesses. Hiring intentions. Trump may declare a national emergency. I'm Tim Maguire with an AP newsman at the White House is considering using billions of dollars in unspent disaster relief funds to pay for President Trump's border wall. Earlier today as he's leaving the White House for Texas. Trump told reporters Abba win make.

President Trump Jimmy Elise Chancellor Angela Merkel White House European Union Emmanuel Macron Lee Joseph riles France Tim Maguire Eurostat Germany Iowa AP Greece Texas
"euro zone" Discussed on AP News

AP News

01:51 min | 3 years ago

"euro zone" Discussed on AP News

"After reporting holiday sales fell sharply from a year earlier shares of. Kohl's fell ten percent but target bucked the trend. Posting strong online growth items ordered online and picked up at store. Surged sixty percent in November and December for target. Unemployment fell across the nineteen country euro-zone in November to a decade low rate. The European Union statistics agency Eurostat said there was a nine hundred thousand monthly full in the number of out of work to thirteen point zero four million that reduced the overall rate to seven point nine percent from the previous months. Eight percent unemployment across the eurozone has been falling steadily. Since twenty thirteen is the region recovered from the global financial crisis. However, ongoing worries about the level of government debts in a number of countries kept unemployment high such as in Greece in Spain in recent days evidence has been piling up that the euro-zone recovery lost momentum than anticipated at the end of twenty eighteen particularly in Germany, and that could have an impact on businesses. Hiring intentions. Team USA's Ellie Raymond says, she's recovering from a broken elbow. But it didn't happen during a gymnastics routine in Twitter posts, she says I survived to Olympic Games a Mateen years of gymnastics without ever breaking a bone. The stairs. Got me, I fell and broke my elbow. She also posted a picture of herself on a couch or right arm, and a cast snugly with a dog raise men was the captain for both the gold medal-winning twenty twelve and two thousand sixteen US women's Olympic gymnastics teams. Trump may declare a national emergency. I'm Tim Maguire with an AP news man in the White House is considering using billions of dollars an unspent disaster relief funds to pay for President Trump's border wall. Earlier today as he's leaving the White House for Texas. Trump told reporters have.

President Trump Ellie Raymond gymnastics White House Kohl European Union Tim Maguire Eurostat USA Twitter Greece euro-zone Germany Texas Spain Eight percent sixty percent
"euro zone" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

07:13 min | 3 years ago

"euro zone" Discussed on Bloomberg Radio New York

"Markets are feeling a bit more upbeat today. With people familiar with the matter telling Bloomberg news that US President Donald Trump is increasingly eager to strike a deal with China soon to perk up financial markets, the structure of six hundred is up today amid gains in Asia as well as in US equity futures, the dollar fell tenure US treasury yields are down slightly after recent gains while crude Holtz above fifty dollars a barrel and European equities cyclical sectors. Let by others are leading gains on the flip side, the biggest laggards or defensive stocks like real estate coming up in Europe. Traders will be watching Francis. Consumer confidence Italy's unemployment rate UK unit labor costs and the. A euro-zone unemployment rate in the US trading day mortgage applications and fed meeting minutes will be in focus. That's it for me for more. Macro breaking news at squawk o- on the Bloomberg terminal nearer back to you. That's your Bloomberg business flash. With justina Lee. Thank you. Now. Here's Leon guaranteed with more on what's going on around the world. Good morning, Nara. Australia's considering issuing for the teenage Saudi women. Hold up in Thailand. Half alka noon says she fled to Bangkok to escape family abuse. Her passport was seized by thirties, preventing her from flying onto a stray Leah. She's now under the United Nations. Zimbabwe's fullness on authorities to undertake cloud seeding to ease the trumpets hurting crops and destroying catapults ges the four week dry spell has caused some farmers to delay planting some Acropolis, which includes the country's staple Coon symbolic way house for decades seated clouds with silver iodide and complain so rising that uses of some sound smartphones aren't allowed to delete Facebook, the Android based galaxy S eight and other models come with the apple ready installed. But onus of finding that it's almost impossible to remedy. Global news twenty four hours a day on Erin at tick tock on Twitter, powered by more than twenty seven hundred journalists and analysts in more than one hundred twenty countries. I'm beyond guarantee. This is Bloomberg markets. Thanks very much. Indeed, leeann now, China and the United States have concluded trade talks with Beijing, saying both sides are serious about negotiations. If also Bloomberg scoop that President Trump is increasingly eager to strike a deal with China to boost slumping markets starting out of Hong Kong is currently Bloomberg's China government editor Karen great to have you on. So essentially we've seen three days of talks now wrapping up between US and Chinese officials where do these trade talks stand right now? Well, if you'll remember it was supposed to be two. And then we found out that these talks have been extended to three days, which fueled some optimism, I would call it a cautious optimism that we were going to get something at least positive out of it if not proper steps toward a trade deal. Before we went into this, the general consensus was that. This wouldn't be the moment that we saw the big trade deal that we've been waiting for for months. If you looked at the composition of the US delegation. It was being led by deputy trade rep. Jeffrey garish lighthizer wasn't there. They were mid level talks. So we didn't expect something big. But I think people were really hoping that we would see if not a big breakthrough than steps towards a breakthrough something that would pave the way something that would give us and frankly, give the markets something to go on. What we got out of? It was a lot of positive statements from the US. We have Trump tweeting that things are going. Well, they seem to be very optimistic. China said that both sides are serious at a briefing about an hour ago at the foreign ministry in Beijing. But until now we really haven't gotten any details about what went on and everything with China, and the US the devil really is in the details. So at this point, we're still waiting for a readout of this. And we're waiting to see what was actually discussed this China gonna make more concessions to the US as the US pressure for that working. We don't know right now. But we should know soon. Yes. So a lot of details as still to be fleshed out there. Karen? But in terms of the market reaction, we're seeing quite a strong rally across risk assets globally today. So is this because we actually have had some concrete positive moves statements coming out of these talks, or is it just that expectations were so low going into the talks expectations. I wouldn't say they were low. I wouldn't say that they were again like we're going to get a massive deal. But people certainly hope that something would come of it. I mean, this was the first face-to-face meeting between the two sides and since Trump and she met in Buenos IRS over a month ago. So people thought, okay, they're finally meeting in person, there's going to be something as you see from the market rally. I think investors are hanging on on every single word that comes out. And and as you were saying, I mean, Trump is telling his closest advisors as we reported that he wants a deal. Two straight. Now, the market volatility on his side. He has suggested that China is more desperate than the US to strike a deal because of the economic situation they're facing on their side, including trillions of dollars off their stock market this year. So it isn't a giant leap to assume that the markets are feeling the optimism that we've seen coming from these talks. But that could change the soon as we get details of the details are what people wanted to see. Yes. So waiting for those details as you say, I'm just kind of wondering what the next step might be. I mean when might these two sites be meeting again for face to face talks. Yeah. You know, they're Trump is scheduled to be in Davos at next month. And so is the Chinese vice president it hasn't been confirmed if they will meet, but a lot of people are expecting that that could be the next time that we get really high level officials from both sides in the US has case the highest level of fischel meeting about trade. So Karen, you were saying earlier we didn't get a huge amount of detail from the Chinese foreign ministry this morning, but just sum up for us. What we got if anything on the issues of agriculture tech autos, some of the sectors in focus in these talks. You know, we didn't get anything concrete to go on. We're hoping to get that later today. But the big issue in addition to agriculture in addition to auto tariffs in addition to energy and made in China, and all of the issues that this trade war has really involoved is the US accusation that China is stealing intellectual property and technology from the US, and they are pressuring China to do something about that. China's drafting a law that it says will prevent for technology transfer. But again, the details we don't have them. We don't know what steps they're really taking to enforce that how serious the law is. So at this point, we're waiting to hear really on all of those fronts. Karen lee. Thank you so much joining us from Hong Kong Bloomberg's China government editor head on Bloomberg daybreak Europe. Theresa May restarts. Her stalled bid to win support for her Brexit deal. But can she overcome opposition.

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"euro zone" Discussed on AP News

AP News

03:15 min | 3 years ago

"euro zone" Discussed on AP News

"The protests that brought much of France to a standstill in December weighed on economic activity across the euro zone. According to a closely watched survey financial information company IHS market says it's composite purchasing managers index abroad, gauge of economic activity across the manufacturing and services sector declined to fifty one point one in December from fifty two point seven the previous month and equivalent fallen January would effectively see the euro zone in recession territory as anything below fifty indicates contraction in output this survey found the slowdown in growth during December in part reflected lower activity in France where a yellow vest. Protesters reportedly led to a first fallen economic output for two and a half years. A six hundred twelve pound blue-fin tuna sold for a record three million dollars after Tokyo's. Famed sukey g market was moved to a new site on the city's waterfront the winning bid for the prize but threatened species was more than double the twenty thirteen annual new year auction. It was paid by kitomura corporation, which runs a chain of sushi restaurants, and is often won the annual auction in the past bluefin tuna normally sells for up to forty dollars a pound, but the price rises to over two hundred dollars a pound near the years, and especially for price catches from northern Japan. Last year's auction was the last of the old sukey site before the market shifted to its new location the old spots being turned into a parking lot for the twenty twenty Tokyo Olympics. Daytrippers will be charged to access the historic center of Venice under a measure in Italy's two thousand nineteen budget law. The local government said the visit visitors tax would help defray the considerable costs of maintaining a popular tourist destination builds on water, it's estimated that as many as thirty million people visit Venice each year. The city council will be responsible for setting the charge and determining they collection method. The mayor's office said it would vary from two euros fifty to ten euros per person. They will be exemptions for students people traveling briefly to Venice for work or business and regional residents visitors won't have to pay the new tax. They are currently charged a small state, tax, polite. The varies according to season location and the ages of the guests. Shutdown impasse. I'm Tim Maguire. The AP news newsmen, the President Trump met today with congressional leaders about his border wall and the government shutdown after the meeting us asked by a reporter if he said the partial shutdown could last for months even years. I did is that. Absolutely. I said that I don't think it will. But I am prepared. And I think I can speak for Republicans in the house and Republicans in the Senate they feel very strongly about having a safe country. The president also said he could consider declaring a national emergency and bypass congress to build the wall. Trump says he felt a meeting was productive house. Speaker Nancy Pelosi says she didn't see any real progress. Lengthy and sometimes a contentious conversation with the president both sides did agree for congressional staffers. White House officials to continue meetings through the weekend, the two-week-old partial shutdown impacts a.

Trump Venice president France IHS market Tokyo Nancy Pelosi center of Venice White House Olympics kitomura corporation Daytrippers Japan Tim Maguire government AP Italy Senate reporter