5 Burst results for "Rosen Grant"
Bloomberg Radio New York
"rosen grant" Discussed on Bloomberg Radio New York
"The wire. This on Atlanta fed president Rafael bostic revealing that apparently he had trades, financial trades during the blackout, period that fed members are beholden to. He says that those trades were inadvertent. Now this is coming from disclosure forms that were recently updated, just to reiterate here, Rafael boss, the head of the Atlanta fed is said that he was made aware of specific traits and timings of transactions that should not have been done at the time that they were done. He is saying that he himself did not make those transactions. It was a third party that did it on his behalf, but the real issue here is why that was not disclosed before. It has now been disclosed. And of course, guys, this goes back into the broader issue that we talked about just a few months ago when it came to Richard clarita when it came to Eric Rosen, and of course, to Kaplan as well. This idea of what these fed members are doing with their own financial balance sheets at a time when they should have their eye on the nation's balance sheet. And of course you're getting in reaction to all of that, fed chair Jay Paul is testified about this. He's talked about the fed issuing up its own rules to really look at an examined the way that these trading is done. You've even had senator Elizabeth Warren be full out in front of this as well, asking for a much more disclosure about this. And yet it looks like, of course, more still needs to be done, really pleased to say that we can bring in our very own Mike McKee joining us now. When Mike, again, what do you make of the significance of these headlines? Well, Taylor, the Atlanta fed president says he discovered the call it illegitimate trading at this point. We don't know if it was illegal. And amended 7 years of his financial disclosure forms told the Atlanta fed board about it, told the board of the Federal Reserve about it and says it's third party problem when he came to the fed he decided to let a third party handle his investments so that he would be at arm's length. But as you see there in his letter, he said he was unaware of the trades during the blackout periods, but unaware and unaware of his holdings of treasury funds exceeding fed limits. And so he, as I said, he has redone his financial disclosure forms. Basically, what it comes down to is bostick omitted securities transactions that were made on his behalf from his disclosure forms. He held more than $50,000 worth of treasury funds violating fed policy. That was a new policy that was adopted last year. He had extensive trading, which he says was done by the third parties during the blackout periods, and that included the blackout period of March and April 2020 that got the former Dallas fed bank president rob Kaplan into trouble. Mike, I just wanted to stop you there. Can we just get a one clarification there. When you say that these trades were omitted from those forms. Is that more of an oversight or intentional do we know? Well, we don't know which trades were omitted of the many trades that were made, but we do know that he says it was inadvertent that the information didn't get to him or he overlooked information. He did say that what he had done instead of relying on state consolidated statements he used balanced statements that he got from the firm that managed his money. And that led him to inadvertently put some wrong figures down, which have been corrected. You mentioned that Jay Powell is looking into this the fed put out a statement that said it has asked its inspector general to take a look at this and they say they will accept and take appropriate actions based on the inspector general's finding. So it does seem that Raphael bostic is trying to correct this whether he can get by having this information disclosed will be an interesting question because Richard Clara had to resign early because of some trading irregularities, even though he was later cleared by the inspector general. And Rosen grant Eric Rosen grant of Boston had to resign because of some inadvertent trading that he did, the Atlanta fed board of directors, the chair has put out a statement saying that they accept president bostick's explanation and they have confidence in his explanation that he did not expect to profit from any FOMC related knowledge. So he's passed one test, but we'll see what the public test is like. Mike, what we do know, too, is that this is someone who is very well steeped in the fed and it's workings and its needs for transparency and being above and beyond when it comes to everything, especially when it comes to the financial markets. He's been at the fed working there since 1995. He's been president of the Atlanta fed since 2017. So what does this do coming on top of Rosen Graham and Kaplan and clarida in terms of the integrity of the U.S. Central Bank? It is a very bad look, Carol. The fed has been trying to get this trading scandal behind it. A lot of it has to do with the fact that the ethics rules are very strict at the fed, and it is easy to inadvertently break them, but to inadvertently break them for 7 years is not a good look. And so it's going to be interesting to see what the reaction is on Capitol Hill. A lot of critics of the fed after the last fed bank presidents released their issues. And so we're probably going to hear a lot more of that in coming weeks. All right, a busy man down in Washington, D.C., our economics correspondent. Michael McKee and guys come back into this conversation and let's actually kind of start where I think Mike left off, which is there are sort of the rules and there's the law, but there's also public opinion and public perception and we know that that in a lot of ways was a much more powerful sort of force that sort of push out the other board members who were found also have these sort of inadvertent trades. Just have to go into Twitter. Oh boy, not again, is what the key takeaway is at the moment. We do not need this sort of distraction. These sorts of headlines are sort of bully pulpit that it will once again create to really hit the Federal Reserve with at a time where everyone's looking at the Federal Reserve to steer this economy to be able to tame inflation without having its own name put in the mother at the moment. Yeah, that's exactly right, Caroline. I mean, that's exactly where my head goes, which is this could not come at a worse time for their Federal Reserve, given that a lot of ethics rules were tightened up under fed chair Jay Powell, just recently. And he in fact had to sell some of his municipal bonds as a result of that. For this to happen just after those three other fed officials had to step away from the fed as a result and in a time when the U.S. is battling the worst inflation it's seen in more than 40 years, credibility needs to be there. And a time when just a month ago, Elizabeth Warren, senator, of course, requesting again from J Powell details from all of the fed officials about some of the individual tradings and fed officials, rebuffing that and saying that we fully complied with our internal regulations. And again, remain to your point, the public's perception of credibility and further maybe more regulation now that this puts on the elected officials to now really move on this. And we should just clarify here. I mean, there is still a lot we don't know about these trades, including the timing of some of them and that Jerome Powell has asked for that inspector general's office to look deeper into it. So we just basically reporting what we know now is still a lot that needs to be looked through. Yeah, and the fed has been amping up its rules when it comes to trading by fed officials recently to include cryptocurrency. So this will obviously continue probably some of their investigation into trading rules more broadly. All right guys, as romaine said though, more details to be known. We'll continue and we'll get back to the
Bloomberg Radio New York
"rosen grant" Discussed on Bloomberg Radio New York
"7 30 a.m. and Hong Kong as well as Singapore I am I'm hustling down And I've got Kris here at the Bloomberg interactive broca studio in New York We've got trading underway now in Sydney push higher for the ASX 200 We're up about 9 tenths of 1% after a rally here in the U.S. equity market Top of the hour trading will begin in Japan and in South Korea and will take a closer look at what we may expect in the price action coming up right now a few of the sour's top business stories Haas Well the upcoming reading on U.S. retail inflation is expected to be hot The data will be released on Thursday at 8 30 a.m. on Wall Street Michael McKee has a preview January's consumer price index won't lead the fed to any kind of decision but it will offer guidance about what they'll need to do down the road Much of the jump in inflation has come from goods rather than services as Americans flush with stimulus cash stayed home and bought things instead of experiences The omicron outbreak last month probably kept that trend in place but we did see inventories rising at the end of last year which could mean some easing and transportation and bottleneck costs Economists will also check the reopening trade cars insurance lodging airfares and food to see if prices are still rising And finally housing home prices up 17 and a half percent through November 2021 will be feeding into the CPI for some time even if higher interest rates start to slow home sales Michael McKee Bloomberg daybreak Asia Two fed presidents are saying all options are on the table for a march rate hike Cleveland's Loretta mester said that inflation is considerably higher and labor markets are much tighter than they were back in 2015 even so master doesn't think there is a compelling case to begin this rate hike cycle with a 50 basis point move Then at the same time we heard from Atlanta fed bank president Rafael bostick he was saying the fed is not locked in to any particular trajectory in terms of how rates have to move and in other fed news The Economist Susan Collins of the University of Michigan will be the next fed president at the Boston fed She will be the first black woman to lead a regional fed bank She is replacing Eric Rosen grant he stepped down last year following revelations about his financial trading activity during the pandemic And Doug common secretary general mundo says the U.S. will hold China accountable for not meeting the purchase targets in their phase one trade deal data from commerce department show China was more than once had short on its purchase commitments for you as good The phase one deal was crafted by the Trump administration He has come in secretary Gina raimondo American entrepreneurs and businesses can outcompete anyone If everybody plays by the same rules and we have a level playing field And what you saw in that data yesterday is Chinese not doing that So we absolutely are going to hold them to account to live up to the commitments that they made that they signed up for Ramonda also said U.S. trade representative Katherine Tai is in the thick of negotiations with China now 33 passed the hours we update you on market action States side we had to move up in the equity space particularly in the NASDAQ market where the composite index gained more than 2% A lot of this had to do with a pullback in treasury yields We had a drop in the ten year of about two and a half basis points One 94 and much less volatility as well in the equity market Here's a measure the vix down below 20 So at the end of the day the Dow higher by 9 tenths of 1% the S&P was better by one and a half percent broad based move in the broader market with every industry group within the S&P positive leadership coming today from communication services along with real estate and information technology We heard from Disney and Uber after the bell in both cases the numbers were above forecast Disney shares right now higher by 6.9% in late trading Uber better by about 6% So if you look at the futures contract now in Chicago for the nikkei we're at 27,865 So we're more than 200 points above where we were in the cash market seeing a little bit of weakness in the end right now in early Asian trading not by much trading around one 1560 a little bit of dollars stability after a pullback in New York trading right now the Bloomberg dollar spot index is higher by about a tenth of 1% And as Mike indicated that CPI report is expected to show very hot retail inflation it has the potential to spoke a stoke bets I should say on a more aggressive fed and then bear in mind on Friday here in the U.S. a very important number that's the consumer sentiment reading from the University of Michigan We'll be talking more about market action for you in about 15 minutes Us Linda For now though it is risk on in the market Well Hong Kong warning it has almost hit the ceiling and the number of COVID patients it can hospitalize at Baxter has global news And.
Bloomberg Radio New York
"rosen grant" Discussed on Bloomberg Radio New York
"Let's get back into Middle East markets with our equity expert fundamental Saudi national bank which is one of the region's largest lenders they posted earnings What have you been hearing from some of the analysts Morning yousef Yes yesterday the stock slumped 2.4% It was the biggest drag on the all share index That's because earnings sort of disappointed looking at what analysts said cities said that again these earnings were weak particularly on higher costs and lending did not meet expectations Likewise in CI capital they thought that their earnings were relatively disappointing but still SMB continues to be one of their top picks And some of the analysts view that this quarter was sort of a one off experience given that we have the merger with samba and we're still coming off of that So we've had a flurry of flotations I mean every week you must be the busiest stock reporter at Bloomberg What's the newest front on the listings prospect Absolutely It's been really busy Mattis And over this week alone we had the L which is a digital security firm owned by the public investment fund They're looking to raise $800 million in public offering And their IPO price at the top of the range and we're seeing really heavy subscription on the IPO There's a lot of excitement And there's even another pharmaceutical company or rather retail pharmacy chain in Saudi Arabia That's also looking for 1.3 billion valuations So we're going to be keeping an eye on that as well Well thank you very much for that That's a fun way I want to get you some breaking lines from ABB one of the larger players from Switzerland This is then if once a quarter operating EBITDA that comes in at $988 million the market has been looking for $979 million I mean going into this it was always going to be about the groups adjusted EBITDA margin at Bloomberg intelligence team was thinking that it could deteriorate close to 10% due to temporary cuts to corporate expense reverse while input costs had so any guidance on inflation And that's an issue with electrification and some of the motion units And that kind of rolls over into some of the higher prices I mean we're waiting for more details here from the company What are you seeing Yeah we're going to catch up with the CEO a little bit later on I mean the margins have expanded despite the input cost rising Just think about the energy cost use of We saw that the biggest component in the inflation numbers that we've had On the dividend front it comes in just a little bit lighter than we had estimated 82 cents The market depends on 83 But the top line earn is the operating EBITDA also a bit larger use of 988 million The estimate was from 979 And of course last year they sold the Dodge business for just under $3 billion We know that they're in the process of looking at the power conversion business I think when we catch up with the CEO we want to know what the plans are for The electric vehicle charging business the IPO that suggests that that could happen And of course they did a big buy in charged up in China When catch up with Bjorn Rosen grant he joins Danny and myself in just.
Bloomberg Radio New York
"rosen grant" Discussed on Bloomberg Radio New York
"With us Before we get into your proposed solution to the problem describe the problem How did we get here Yeah I mean it's been a really rough ride for the fed's credibility over the past I'd say probably about 6 7 weeks First news surface that Robert caplan the Dallas fed president traded a lot of stocks last year pretty much And then we had Eric Rosen grant of the Boston fed also trading a lot of real estate investment trust REITs And then just even more recently Richard Clare the vice chair was disclosed to have switched a lot of money from bond funds into stock funds just a few days before the fed really started aggressively easing monetary policy to combat the COVID crisis So a lot of moving parts and Eric Rosenberg resigned last week and tomorrow will be Dallas Dallas fed chair rubber cap once last day And just to be clear first of all neither I think mister Kaplan nor mister Rosen said the reason they were resigning was because of this problem And as far as I know there's no specific allegation of wrongdoing on any of these parts For example when you talk about Richard clarity it said this was a normal rebalancing that was sort of automatic He might not even know what's going on The question I guess Brian is not so much did they do something wrong Is it look fishy Yeah I mean I think it's pretty clear that it's not a good look at all And Richard caplan basically said that my financial disclosure has become a distraction as the reason why he was stepping down but it's all just very strange because I actually Robert caplan the one who has been trading all these stocks was actually among the most vocal critics of the fed policy and saying we should tighten that financial financial markets have gotten too frothy And similarly Eric Rosenberg who was trading REITs was saying that the real estate market was too hot So it was very strange But yeah no wrongdoing really at least based on the fed's current ethics codes But there's reason to suspect that that's going to change They're definitely going through they're going through it now and probably coming up with some recommendations to make it stronger So again just before we get your solution on teasing this now so I really want to know what it is Before we get to that what are the current rules about conflicts of interest in trading Yeah I mean it's a voluntary guide in some ways that should be above reproach that there are some rules around how many actually how much in U.S. securities you should own So U.S. government securities because obviously the fed does have a direct impact on the US Treasury market And there's also rules around the blackout periods surrounding actual decisions in which they can't trade They also have to hold securities for 30 days Pretty standard stuff but at the same time this is the Federal Reserve we're talking about And at the highest levels they're influencing the economy as much as any single body in the world Okay we've waited long enough a drum roll please The answer is I don't think there's exciting as you made it but qualified blind trust is what myself and Alexis Leon came up with It's a tool that's used sometimes in Washington It would basically require fed officials to hand over their assets to a third party that's not a spouse or a friend A legitimate third party who would then go about divesting their assets and then buying a new securities with that Okay so what's the difference with qualified blind testers to blind trust Yeah my understanding is that blind trust can still be subject to you might have a friend or you might have someone who you work with kind of take over the trust and it's blind in that sense But this would be the way that we understand it is it would be a true third party someone who really is a lot more removed from the actual person It's sometimes called there's also things called double blind trust which is where you don't even know who's managing your money But those are pretty rare So this is kind of just to make sure that it is a qualified third party So it's not someone that the fed officials could influence So if there is an argument against this what is the argument As I understand the way this would happen it doesn't mean that whoever is managing the qualified branch would have to trade securities have to sell everything and buy something else right They would just manage it the way you would if you could still manage it Well the issue there is that if you give them all your assets and you have $10 million in Tesla that's not really blind because you know you just hand it over $10 million with Tesla right So they would have to sell substantially all of that And then that's a great example because there might be a small tax bill to attach to that with Tesla given the bases Right exactly So this would just basically be a way to not necessarily discourage people who might be affluent might have had financial success in their life from becoming a fed official but it would prevent them from the temptation of having been in the markets before thinking they know what's coming and then trading on it Because you don't want to have we were joking that you don't want monks to be running the fed right You want people who have substantially knowledge of the economy and of the financial system And so you don't want certain net worth to be prohibitive but you also don't want that to be seen as a conflict of interest What about monks running the Congress or the executive branch Should something similar to be imposed for members of Congress and for senior executives at the executive branch Yeah that's a lot of the commentary that I've gotten back on my column so far today is yes that's a great idea about doing blind trust for the fed Now let's do Congress There is a lot of concern that people come into Congress and pet all their influence And as a result they accrue more money So I do think that there is especially with Congress there's definitely need to improve capital of interests there too because they influence sectors even more than the fed does I wrote that even as the P 500 could be seen as the conflict of interest for the fed and that's true But when you really drill down there are certain sectors big tech for instance that I mean Congress could really really lay into big tech if they wanted to And you could possibly trade ahead of that Well the S&P 500 today if you look at what Mitch McConnell and Chuck Schumer did they really drove the S&P 500 with their budget deal right Right If you find out that everyone's buying S&P 500 calls a couple of days ago that would be a problem.
Bloomberg Radio New York
"rosen grant" Discussed on Bloomberg Radio New York
"Street live from the Bloomberg interactive broker studios This is Bloomberg day break Let's get more now on our top story this morning The sudden shake up in the leadership of the Federal Reserve Dallas fed president rob Kaplan and Eric Rosen grant of the Boston fed both resigning following questionable stock trades leaving an unexpected number of top jobs open all at once at the U.S. Central Bank Michael McKee is with us this morning economics correspondent for Bloomberg radio and television I don't know about you Mike The one I saw those resignation notices come within hours of each other yesterday I was just kind of like okay Is there a precedent for something like this No I don't think we've seen anything like this This is truly unprecedented The two officials at regional pet banks would quit at the same time we've had lots of openings but never because they had to resign in the wake of issues about their ethical behavior There's no evidence they necessarily do anything wrong and rob Kaplan denied in his statement that he didn't run but both to taking the opportunity to leave perhaps quite the scandal though Does this raise questions for you though about whether questionable stock trades are limited to Rosenberg and Kaplan whether this is an issue across the Central Bank and whether there's going to be need for more transparency in terms of what Central Bank presidents are doing with their own portfolios There is going to be a need for more transparency in the federal already working on overhauling its ethics laws but we do have the disclosure forms from all of the fed bank presidents and members of the board of governors And these were the only two that traded anything significant The question about Jay Powell owning the municipal bonds because that was kind of what beneficials did They took especially those like Powell and capitol who came to the bank with a lot of money from their prior lives They would put it in something uncontroversial like mini bonds within the fed ended up buying mini bonds and Powell did sell He was advised by the ethics office he could keep them And now there are questions about that as well So they will make changes but I don't think it's a widespread problem throughout the bank Now that we have these two openings at Boston and Dallas this is coming right around the same time that we're going to have a couple of governor seats opening up And of course a fed chair Powell's position comes up in February Talk a little bit about how this situation could really reshape what the leadership looks like at the Central Bank Well absolutely especially from the top of Jay Powell does not win renomination for President Biden and we start with a blank slate But the two vice chairs are likely to be leaving vanilla corals like sugar to supervision leaves in October He could stay on the board as a member of the board without being vice chairman although that's considered unlikely Let's clear that the vice chairman of the fed and sort of the man who's driven the monetary policy thinking is meaning in January and he his term is a fed governor is up as a Republican He's very unlikely to be reappointed by President Biden So we will see a perhaps as many as you mentioned at three of the top leaders of the fed changing And so then that changes the dynamic in terms of what people think about what the fed should do and when they should do it when should they taper much should they taper when do they start talking about raising interest rates All questions that we have exact answers because we wouldn't know who would be making the decisions One thing you can say it's time to throw the dot thought out because people who are on the dot block may no longer be there Yeah I wanted to ask you about that a little bit with Kaplan and Rosenberg both out the door here What's the possibility that we could see a significant shift in direction in terms of where monetary policy goes from here We've got about 30 seconds left Mike Well I don't think you're going a huge change in direction because there isn't that much disagreement among the beneficials Now Kaplan and Rosenberg were both people who were seen as 2022 dots So if the dynamic of inflation changes you might see that change a little bit but it's again as Jay Powell likes to say about a forecasted 18 individual views of where policy might be So whether it changes or not may not have an effect on policy just on Wall Street's perceptions Thanks for this Mike very interesting time to be watching the Central Bank to say the very least Michael McKee with us this morning economics correspondent for Bloomberg radio and television this day after we found out that both Eric rose and grin of the Boston fed and Robert caplan in the Dallas fed are going to be leaving their positions Eric Rosenberg this week rob Kaplan in just a couple Right now S&P futures giving back 27 points staff futures down 96 NASDAQ futures lower.