the feds monitor a policy on janet yellen scores. this is the w. business live from berlin i'm going to her office ten years after it launched the game changing i phone apple has released the most recent model in the series the computer giant is still moving from strength to strength profits hit ten point seven billion us dollars in the last quarter alone and many are predicting that the i phone ten will break sales records even though at nearly a thousand dollars for the cheapest version it's not exactly cheap. the images are practically identical all over the world there's a countdown customers burst in when the doors finally open like here in tokyo they put down a pile of money and leave like this student euphoric. i think i want to go home and get some rest and then enjoy the phone. the latest i phone has an edge to edge display and uses facial recognition technology. but otherwise it doesn't seem to be the huge technological leap forward that apple claims even so it costs around one thousand dollars in the u.s. and up to half again as much in

will it be janet yellen, potentially? >> that is the context that powell will be inheriting this fed leadership. it in the fed, if he indeed gets the job. thing is that things are ok and he inherits a u.s. economy that's in a very good place. inflation worries still remain. and hurricane related data that we still have to wade through. there are plenty of people in the market that have seen enough signs of inflation to not be too worried. world,oadly across the risk assets. haidi: we will talk more about that. ahead ofnvestors investment strategies there. i want to talk about this theme of continuity. it had a very muted reaction when it comes to u.s. assets overnight. say powell is yellen 2.0. it had a pretty subtle telegraphing. december is on the way. but this chart i find interesting because it suggests -- it's a good thing they are going to tighten because you can only imagine how loose financial conditions would be if they still had rates at zero. this is bloomberg's index of american financial conditions. two days

that is janet yellen. they are speaking at the nyu stern school of business, talking more about the markets and the economy, of course. she's mostly stating that tightening too fast could strain inflation below 2%, continuing how to keep an open mind and not be hemmed in by forecasts, and also saying persistently low inflation leaves the fed fewer tools when it comes to a crisis, a crisis we have not had since 2008. is tesla facing a crisis? tesla is building a new sports car that goes from zero to 60 in under two seconds. bloomberg data is saying that tesla is burning money at about eight thousand dollars a minute to ramp up production of the all-important model 3, and at that rate, it would exhaust its current cash pile by next august. with us is our reporter who helped to crunch those numbers. $8,000 a minute -- why? >> it's a lot of money, isn't it? they are trying to ramp up production of this model three-car to 5000 a week, and they are trying to build the machinery that is required, the tooling, the

we know what janet yellen will do. we have not seen what jay powell would do or how he thinks about reaction and the fed's function. you worked with him. what do you think his position would be? would bek jay powell vigilant on inflation. i think any fed chair worth his or her salt would do that. the question is what the problem is and how quickly they will be prepared to address it. one of the challenges the fed has going forward when it comes to inflation is not the inflation that is right now. to rear its ugly head, how fast will they have to -- how aggressive will they have to be in raising the funds rate or interest on reserves? how fast will they have to raise that in order to stem the tide of inflation? they do not really know the answer to that you may have not been in this situation before. scarlet: uncharted territory. we cannot use the word vigilance without bringing that bonds vigilante. a at this point, it will be continuation of that yellen approach of gradually raising a federal funds rate. i think there

janet yellen would normally be expected to serve a second term but because she was appointed by former president barack obama that is out of the question for the current white house by replacing a fed chairman only after one term president donald trump looks set to break another tradition. last you've been in the u.s. for a long time reporting almost straight and on the fed what your own paul be a good choice i would say he's definitely a solid choice his safe choice as we just heard he's been on the order of fed governors five years he has some experience he is an interesting choice as much as he does not have any formal training in monetary policy is a monetary it cannot mix he's from the private sector but i mean as i said he's been on the board of governors for a while he has gained a lot of experience and if you listen to what his colleagues at the fed governors have said about him he seems to be a consensus maker he seems to be experienced enough for the job so it's definitely a safe choice you said that he's been in the private sector in the public sector he's had some real jobs

many say it is janet yellen to window. that he will continue her path. let's look at the aspects of what he is said in speeches. the fed is close to its mandates. -- policy is currently very accommodative. it is appropriate to gradually normalize rates and below target inflation means you don't have to go quickly. of patience.a lot how is this sitting with people? even harris is the chief u.s. economist at bank of america a merrill lynch and he gives a thumbs-up to jerome powell. fed team hereour in new york and he thinks that jerome powell will be a good choice. that he has exhibited sound judgment and will continue to do that as fed chair. the bank of tokyo mitsubishi had some doubts that a lot of people expressed as we go through the process of senate confirmation. he said, look. the fed chairs the 1980's has become the nation's chief economist. and the question is now, when it with congresst, as opposition, can they defend policy? how will jerome powell reform in a crisis? the senate confirmation will come soon. -- he has already been confirmed twice

what janet yellen said yesterday was interesting. she reminded us that we are not out of the woods with regards to dis-inflationary pressure. although we have seen cpi pickup , we are still not clear we have got much in the tank in terms of wage pressure. inflation across the globe more broadly is well below central-bank targets. the notion that we are moments away from an inflationary shock is probably wide of the mark. doesn't mean we should not be watching inflation? absolutely not. it is a very important figure, not because of inflation itself, because it could be something that would trigger central banks to be more overzealous. differentthe story and perhaps more positive when you are looking at asia with the tech story, the consumer story, the reflation story we are seeing? >> we believe emerging markets are a structural story. our long-term capital market assumptions, we see emerging-market economies growing around 4.5% on average over the next three years. developing markets going around 1.5% on average. that 3% additional g

his cap does janet yellen -- cast as janet yellen 2.0. i wonder if jay powell -- is maybe going to be -- his own kind of fed chair, he's going to look at this question of tight labor markets, inflation, and saying it may be we need to think harder about this. what do you think? >> clearly, he will be his own kind of fed chair. is business background something that recent chairs have not had, at least a direct experience. i'm sure this will have a fair amount of outreach to the business community. this takes nothing at all away from janet yellen, an effective communicator as well. i think jay will pay some attention to regulatory balance. his are ready said there are some areas were here the federal lessen could actually the burden, particularly the cost of clients. clearly, he will be his own person in the job. it's important to understand, it requires collaboration. it requires listening skills. the federal market committee is very much a committee process. dennis, how is this going to balance with the dynamic of low inflation and asset

yellen hass, janet made things very smooth for her successor. she got the balance sheet reduction process underway. unlike in 2015 and 2016 when the fed was telling us that they were going to move three or four times in the year and didn't, in 2017, they more or less have followed the plan, and we know what the plan is going forward. dothe extent that they something close to that, it feels like it should be quite a bit of continuity going forward, and part of that is because of the decisions that were made in 2017 to set the stage for that. betty: one of the things that comes into the mix in the last few days, it isn't that inflation is at 1.3%, far from 2%, at that janet yellen gave a speech last week and acknowledged the dangers of inflation being low. inflation expectations may be pulling back, even though she thinks the tight labor market is going to work its magic, and then the november fomc minutes show that the doves seem convinced on growth but less convinced on inflation. in august, what mr. powell said about this question of inflation

sides, janet yellen does not want a boom bust economy. she just wrapped up remarks. ♪ itnne: that q&a just ending and. a fireside chat more than a question and answer panel. very lighthearted moments, talking about her first days and weeks as fed chair as she does wrap up one of the last speeches we will hear from her before she steps down as fed chair. a lot of talk about inflation as well. betty: saying the fed is not certain low inflation is indeed transitory. pretty significant headline coming from her. mention, wide-ranging talk from everything from her first days at the fed, do the most interesting person is she has ever met. certainly covered a lot of bases. as we digest these headlines from janet yellen, let's get to the first word news with jessica summers. jessica: the mexican peso weakened against the dollar. robert lighthizer says there is no evidence canada and mexico will seriously engage in renegotiating nafta. this follows a fifth round of talks. they fell short of working on any section of the agreement. light hiser say

janet yellen has agreed that may be indeed necessary. so i don't think he is looking for a sharp break or reshaping the fed in his image, but continuing a very successful trend. julie: we are just showing his cv. background play into monetary policy in the way he looks at the economy if we get tax reform done? and would republican be more inclined to the supply side notion of tax reform and tax cuts pain for themselves with economic growth and whatnot. if that is the case, the tax reform is actually increasing the speed limit of the economy, then the fed will feel less need to get in front of that by tightening policy. just a footnote, i think that was a key litmus test of everyone running for fed chair, and that may have impeded the chances of the more hawkish folks like john taylor. julie: being go. fed process is always politicize, but we have not seen trump slam the attorney general on twitter. >> that has been a surprise to us. the other thing he has not done is tweet economic data. scarlet: we're applauding him for not breaking eco

i saw one reflection on who he is, basically this is janet yellen without her?” think that is a fair comment. he is, interestingly, a lot of pick up this morning about the fact he isn't an economist. that may be a good thing. if you talk to economist, you get different opinions, but he is a balance, it seems, in terms of monetary policy, that to your point means probably he will continue a similartrip to means probably he will continue a similar trip to read on fiscal tightening that we've seen from janet yellen. an interest rate rise here and there, perhaps one next month? i think that is right. in the uk, of course, in coming into this rule, just as the republicans are seeing a massive, massive tax cuts, mainly the business, $1.5 trillion stimulus over the next ten years or so, the question is will he want to pull levers or will he want to do the president's bidding and get the economy really improving and consumer feelgood by the time the next election comes around. there is a suggestion they will be around the same lines and as much as he would like to ease b

so janet yellen's term is up at the beginning of february. the senate has to confirm him before then. he is expected to be confirmed and the democrats wanted janet yellen and the republicans generally wanted someone more conservative. they have talked about john taylor or kevin worship. but powell is, most senators seem more or less ok with him. it is not to say he will get yes votes from everyone but he is expected to easily clear the 51 vote threshold. host: in your story about the upcoming pic, you note that unlike janet yellen, powell was trained as a lawyer rather than in economist, though he has worked in the financial world for a lot of his career. issue for him in the senate confirmation hearing? guest: potentially. the people who are fed observers and work at the fed, they do not seem to view that as as much as a handicap because he has been at the fed for five years, but it is definitely a different style and it raises questions about how much he would have to lean on staff in times of crisis, given that he is not an economist himse

thatew york times reports powell has consistently voted with janet yellen. colleagues consider him a centrist and a pragmatist. the president announced his choice from the white house rose garden, yesterday. pres. trump: thank you very much. please. i am pleased to welcome members of the cabinet, members of congress and distinguished guests to the white house rose garden this afternoon. also, i want to welcome the chairman of the senate banking committee, who has done an incredible job, mike crapo. where is mike? please, mike. great job. appreciate it. [applause] pres. trump: as president, there are few decisions more important than nominating leaders of integrity and good judgment to hold trusted positions in public office. few of those trusted positions are more important than the chairman of the federal reserve. accordingly, it is my pleasure and honor to announce my nomination of jerome powell to be the next chairman of the federal reserve. congratulations. mr. powell: thank you. [applause] pres. trump: he is joined by his wife and his two sisters, and i

president donald trump considered five names including current fed chair janet yellen before choosing powell who has served as a fed governor since twenty twelve a soft spoken centrist powells name has been circulated as a top contender for over a week. as president there are a few decisions more important than nominating leaders of integrity and good judgment to hold trusted positions in public office and few of those trusted positions are more important than the chairman of the federal reserve powell sixty four has a background in law and joined the fed in two thousand and twelve he supported janet yellen store action in setting monetary policy and stepped in line with her post financial crisis plans even helping to develop them. inside the federal reserve we understand that monetary policy decisions matter for american families and communities i strongly share that sense of mission and i'm committed to making decisions with objectivity based on the best available evidence in the longstanding tradition of monetary policy independence powell will replace this woman as fed chairman ja

janet yellen would normally be expected to serve a second term but because she was appointed by former president barack obama that is out of the question for the current white house by replacing a fed chairman only after one term president donald trump looks set to break another tradition. view this you know as my colleague last last you've been in the u.s. for a long time reporting on wall street and on the fed but your own paul be a good choice i would say he is definitely a solid choice is a safe choice as we just heard he's been on the order of fed governors for five years he has some experience he is an interesting choice in this much as he does not have any formal training in monetary policy is a monetary it cannot mix he's from the private sector but i mean as i said he's been on the board of governors for a while he has gained a lot of experience and if you listen to what his colleagues at the fed governors have said about him he seems to be a consensus maker he seems to be experienced enough for the job so it's definitely a safe choice you said that he's been in the private se

you know janet yellen. and you're partial to her, bottom line is, there are a lot of -- unless you fundamentally disagreed with the federal reserve and central banks around the world having kept interest rates low since the recession, in practice, she has been widely lauded for the job she's done. >> yeah. i kind of want -- well, powell is a good pick but i wonder why they didn't give her a full eight years because she has done remarkably and is the first woman fed chairman. would have been a nice symbol for donald trump to give her the term again. it doesn't look like there's any change in policy that, any strong change in policy that he's -- causing with this appointment. >> that's the funny part. because during the campaign, donald trump did what candidates often do. they blame the fed when interest rates are low for artificially inflating markets, because if interest rates are low it pushes people into investments like the stock market. saying it was benefiting her republican friends. barack obama and t

showing the fed dual mandate, here's why this by the dow janet yellen and others are confident inflation will rise, because employment has fallen so much. but look at this. is feds key inflation gauge back from 1% to 1.3. speaking janet yellen, in new york, acknowledged the dangers of inflation saying the factors of inflation expectation have fallen a little bit. that's a bad sign if you want inflation to rise again. then we got the fed minutes. and that seemed like a more deeper discussion among those saying yes inflation will rise, we are on the path of gradual rate hikes. high debtan't raise we can't rate hike again until --see inflation's and inflation is on a sustainable path higher. let's take a look at the fed week ahead. a lot going on on monday. a stock ally -- staunch ally is

janet yellen avoided comment on that. she did suggest that she is very worried about the rising level of debt in the united states and the debt to gdp ratio. as fed chairs usually do put it back on congress, you should do something about that. mark: so much to talk about. the lack of governors, she was asked how things work without the governors. it has been a long time with a gap in the fed board of governors. it becomes problematic eventually if donald trump does not start filling these positions. >> it does, you will have three governors and only one of whom has a doctorate in economics and any large-scale economic training. they need more people who know what they are doing and how what happens in the economy. not to disparage jay powell and his ability. the fed has a lot of responsibilities, including bank supervision and running the payment system. things beyond monetary policy. those are divided beyond the governor and although janet yellen put a brave face on it, it is obvious that with fewer people doing the same

it was business as usual under his successor janet yellen at least at first now she's opened the door to gradual rate increases amid stable growth in the us the federal reserve stronger intervention in the economy stands in contrast to the policies of the european central bank which has favored a lighter touch and focuses on inflation the fed reacts to developments in the job market ellen's term ends in february and this man may replace or jerome powell the former investment banker is a republican and already part of the fed's governing board markets look ready to welcome such a choice his nomination would signal continuity another possible choice of fed chair could be stanford university economist john taylor but his chances are considered slim and analysts caution that he might be too quick to tighten policy. of course janet yellen might still stay on theoretically she's allowed a second term she was appointed by former president barack obama in the past u.s. presidents have tended to retain the fed chair is chosen by their predecessors if donald trump decides to replace yellen it w

president could make he stands for continuity so he will probably follow up where janet yellen is leaving the federal reserve and yet to me asking is this seen there on wall street is this seen as more of a political decision than an economic decision after all and as you said jerome powell is not seen as being that different from in a janet yellen in terms of policy. yeah well i mean donald trump said that he would like to leave his own mark and that's why he wants to bring a new fed chair and is not going to continue with janet yellen so far the new administration hasn't really achieved them that much when the time still takes reform to infrastructure spending or to a new health care reform but the u.s. president is very proud of how wall street is doing we're going from one record high to another and as i mentioned still your own paul's stands for continuity and that's what wall street actually likes and probably wanted to make sure that this continues and there's not all of a sudden a big surprise for wall street because wall street doesn't really like surprises at all yeah no surpris

janet yellen's 10 you're with the federal reserve. one page resignation letter sent here to the white house earlier today, trish. trish: the market kind of saw this one coming. at least so far not a huge reaction among investors that the dow still up considerably. joining me with reaction, chairman, editor-in-chief of forbes media, steve forbes and moody's chief economist john lonski. steve, what do you think her legacy will be for the fed? >> more of a seat warmer. she didn't change the policies substantially of bernanke. had some tweaks on it. no big push. no big push to reduce the bloated portfolio. no big push to get the get credit markets. no deregulation of banks which hurt bank lending. she will go out with a shower of praise but i think the record is pretty spotty. trish: if you go back in the history books, 30 years from now, and you look back, will she get blamed for a few things there or all bernanke? >> mostly bernanke. trish: okay. >> but she didn't undo bernanke. trish: john lonski, going into jerome powell, are things g

he had said usually during the campaign when he was running for president everybody knows janet yellen has been doing a very good job. and as we've also heard it is tradition for american presidents over the last couple of decades to reappoint effect chairman even if he was originally put in place by a president from the opposing party bush did that with greenspan and obama did that with bernanke it for trump it seems it was more important now to just leave his mark in just get a trump person in place than it was actually about policy changes that's surprising is it he drops going to announce his choice later this afternoon is there any chance that it's going to be more paul was looks pretty solid now after what we just recently heard but with trump of course there's always surprises and he has in the last couple of days really been all over the board here all over the map he said yellen is definitely a contender and ironically he even said john taylor would be in the running he likes him too even though john taylor also a member of the fed is standing policy wise for the exact opposit

four open seats with janet yellen announcing she will step down. we also have a president of the new york fed stepping down and four opening -- opening spots. in total, we now could have six out of 12 voting members of the fomc the new voting members. it is a wildcard and something to watch out for. shery: where art -- vonnie: where are yields going? >> 10-year, we are at the bottom of the range and they will continue to rise. we should not expect it to be much higher rates. ,e have been saying all along you have to look at rates in a global context. 235 in 18 year may seem low yield to us, if the alternative is a german bunds and you are in germany, and japan, at zero basis points, a high-yielding bond. we think rates will continue to rise. the curve will flatten and the race right will be muted. relative.rything is thank you. vonnie: let's take you to the first word news. >> president trump is continuing his war of words with basketball father lavar ball. president trump called him ungrateful and ball has downplayed the role of his son's release

yellen so having said that are you surprised by this really i mean of course janet yellen is four years were the second shortest tenure for a fed chair. that being said it wasn't because of what was happening under her tenure certainly. the rate of unemployment was headed in the right direction as well as interest rates and i don't think the president was at all displeased with her policy but i think he wanted to have the freedom to appoint his own person and so this is very much like donald trump he wants his own course in that position he wants to make his own mark while he's president and states have his own fed chair and so he's done that he's appointed a pal to this position and jay powell represents somebody who will likely not do much different from janet yellen so exactly and that's exactly that is exactly the point you expect there to be a lot of continuity between yellen and pell. i do i do expect to be a lot of continuity not a lot of surprises i think the market so far it's showing that i expect a lot of surprises a lot of differences and a lot of policy shift their own expe

powell in lockstep with janet yellen on just about anything. what don't we been him that makes him president trump's number one choice? powell would be by the way the first fed chair in four decades without an advanced degree in economics. no ph.d. either. he is a princeton grad, law degree from georgetown and wealthiest federal reserve chair since 1948 with a career spanning from wall street to washington. he's been a fed governor since 2012, a former assistant treasury secretary i believe under nicholas brady and former partner at private equity firm the carlyle group. charlie gasparino in the newsroom, way out in front of the fed chair sweepstakes. as we wait, what does jerome powell that janet yellen doesn't have that makes the president say he's my guy in step. >> he came in as a change president, why keep the same federal reserve chair even though we agree on a lot of stuff, when he was a real estate investor loves low interest rates, loves easy money, not necessarily good for the economy. savers get screwed on that, creates asset bubbles

yellen is janet yellen it's worth a minute to stop and say janet yellen has done a great job as a fed chair and will be the first fed chair since 1979 who doesn't get reappointed. that's been true regardless of party, this has been a very nonpartisan thing. jerome powell -- >> reporter: any concern about powell on regulation, wall street regulation? >> powell has aligned himself with janet yellen on a regular basis, and that is a good sign, but look, this is what hearings are about. i'm going to ask him some tough questions and see what his answers are. >> reporter: elizabeth warren, thanks so much for being with us. >> thank you. >> kelly, back to you. >> all right our john harwood speaking with senator elizabeth warren thank you both very much. >>> how much of an impact will the iphone x have on apple's earnings guidance? we're going to have instant reaction to the tech giant's results coming up. we're back in o.tw >>> let's head back over to julia boorstin with an update on cbs' earnings. julia? >> yes, an update, kelly, cbs though it missed the top line on revenues earnings actual

yellen. and task last old steel actually comically laced a livery of its new sedan and post its largest quarterly loss. hello from berlin i'm funny for char and this is your business news general paul who has been nominated as the next fed chief has generally supported the policies of janet yellen his predecessor and therefore is expected to remain cautious about raising interest rates too quickly. if trump had his way this man would head up the most influential central bank in the world jerome powell a former private equity executive has been sitting on the governing board of the federal reserve for years analysts expect him to hold on to the policies of his predecessor janet yellen that means he'll adopt a cautious approach to raise interest rates but the president's pick still has to be confirmed by the senate powells appointment would be considered a good compromise when acceptable to the democrats and republicans would assume his post in feb twenty eighth. but. with much more on this iss

janet yellen's term is up february three. the senate banking committee has to get this done in the next couple of months. heare meantime, we will what the white house has to say about the next fed vice chairman. haidi: the boe raising its key rate for the first time in a decade. they did it and sterling fell. i guess the statement was responsible for that. why? >> the most dovish rate hike in history is what people are saying. they kept the key rate on a seven-to vote, raising it by 25 basis points. mark carney the head of the bank of england mentioned brexit worries, gdp growth below potential, weak productivity, and said it is time to pull back looking at inflation. let's listen to what the boe said earlier today. >> with unemployment at a 42 year low, inflation above target, and growth just above its new lower speed limit, the time has come to ease our foot a little off the accelerator. that will help to bring inflation back towards its 2% target while still supporting jobs and growth. btvet's jump right into 4025 and see

a janet yellen just -- janet yellen this five -- janet yellen testifies a joint committee in congress. add tore six others to these top three. the treasury secretary on tuesday, speaking at the treasury market conference. the new fed president will also be speaking. this is at the new york fed. a snapshot of the 12 regions, the district banks. a meeting on the 12th and the 13th. expect it to raise that key rate almost 100%. as ahas been mentioned possible member of the board of governors is going to be speaking here on trumps economic agenda. 3.0, and we have the fed's key inflation gauge. >> central banks around the world are also on the tightening path. it looks like the bank of korea maybe next when they meet this week. >> people have been holding their breath to see what happens. they meet thursday according to a survey done over the weekend. key will be raising that rate for the first time in six and half years. let's take a look at what they are looking at now. it has been coming down for six years. up 3.6% driven, by exports. has been aive months big driver. you do have inflati

central bank if confirmed by the senate paul would replace janet yellen as the nation's top monetary policy maker funny from our business desk is here now to tell us about this development from the white house i mean we know his name jerome tal's on e who is what we also know that it's no surprise that he's been nominated but don't troll because he's seen as a very pragmatic policymaker brand and there's more of course in fact the way he's doing his policy doesn't differ that much from janet yellen. therefore we do not expect any big changes when it comes to an interest rate hike he's seen as a person who is rather soft on that was rather stable and that the peers more. if trump out his way this man would head up the most influential central bank in the world jerome powell a former private equity executive has been sitting on the governing board of the federal reserve for years analysts expect him to hold on to the policies of his predecessor janet yellen that means he'll adopt a cautious approach to raise interest rates but the president's pick still has to be confirmed by the senat

yellen to control in twenty fourteen the u.s. was through the watched of the financial crisis in a first year g.d.p. the best way to measure a country's economy was a two point six percent unemployment was six percent inflation was point seven percent according to the latest figures g.d.p. is up to three percent unemployment is down four point two percent and inflation is just half of one percent with a record like that many observers doubt there will be radical change with a new person in charge it seems in appointing power it's going to continue. the third will continue in its route of pursuing lower interest rates and the president seems ok with the beyond that he had expressed much interest in what's going on in the. poll is a lawyer but he has served as a governor for five years and is now set for one of the biggest jobs the most heated and global finance alan fischer washington. syrian army and its allies fighters have pushed isola to its last pockets in the eastern city of theirs or. its isis last remaining a syrian strong

it was business as usual under his successor janet yellen at least at first now she's opened the door to gradual rate increases amid stable growth in the us the federal reserve stronger intervention in the economy stands in contrast to the policies of the european central bank which has favored a lighter touch and focuses on inflation the fed reacts to developments in the job market yellen sturm ends in february and this man may replace or jerome powell the former investment banker is a republican and already part of the fed's governing board markets look ready to welcome such a choice his nomination would signal continuity another possible choice of fed chair could be stanford university economist john taylor but his chances are considered slim and analysts caution that he might be too quick to tighten policy. of course janet yellen might still stay on theoretically she's allowed a second term she was appointed by former president barack obama in the past u.s. presidents have tended to retain the fed chairs chosen by their predecessors if donald trump decides to replace yellen it wou

janet yellen sorites announcement today is being overshadowed by speculation as to who could replace her as the world's most powerful central banker and decisions expected from president of trump on thursday and there are reports the white house has notified jerome powell that it will nominate him. the head of the u.s. federal reserve is the most powerful central banker in the world some past fed chairman have even a teen near cult status like alan greenspan. he opened the money floodgates and sent equity markets into a feeding frenzy it led to a time of unprecedented growth field by credit until the bubble burst in two thousand and seven unleashing a global financial crisis greenspan wasn't around anymore it was his successor ben bernanke who had to do the damage control but he kept monetary policy loose the u.s. economy had gotten used to extremely low interest rates a rapid reversal would have caused shocks to the system. it was business as usual under his successor janet yellen at least at first now she's opened the door to gradual rate increases amid stable growth in the us the

havehair janet yellen may given her final testimony to congress, she is describing a steadily brightening picture for the u.s. economy while downplaying the risk of financial instability. we will get the highlights. the chief marketing officer of ford motor company and vice president of the luxury line lincoln will join us live from the los angeles auto show. more on their new product launch this hour. and bitcoin shines, they surpassed $11,000 in a matter of hours after hitting the $10,000 mark which took this price surge this year to 12 fold. economiste-winning says it should be outlawed. all that to come in the next 30 minutes at first a market check. fang not doing well, nor are semiconductors. >> a very interesting divergence for the major averages. the dow up 2/10 of 1% and the tech heavy nasdaq down 1.7% with the s&p 500 down fractionally with a divergence between the s&p 500 and the dow, on the one hand -- a huge selloff for the nasdaq, down 1.7%. the chip index down 5.23%, the worst day since brexit in 2016. seeing a big selloff for the fang and in the chip stocks. a look at the

style fed he needs it without janet yellen which makes powell the perfect choice for the job. and that's all your business for now rita now has a story about another separatist movement in africa that's right good had not got to move to independence a dominating headlines in europe right now but the other passionate separatist movements in many parts of the watch in nigeria a group called indigenous people of beyond is calling for an independent state in the found east of the country it's an only dem on that spot a bloody civil war fifty years ago our reporter visited the home of the independence movement leader nom de cano who went missing in september his disappearance has fueled fia's off new violence this is a statue of nnamdi kanu with its arms chopped off the real name because i knew has disappeared. i witnesses say security forces stormed his house in southeastern nigeria in september he has not been seen since the army says he fled but this man believes he was killed would say it will be the case a member of the separatist i.p.o. be the indigenous people of be opera he

we will have senator martin heinrich speaking for a moment before janet yellen. let's bring in michael mckee, economics and policy correspondent, and the chief correspondent for bloomberg economics. accident like the significance immediately of it -- not to downplay the significance of nearly newly of this testimony, but there's nothing nostalgic after four years of janet yellen -- behael: this is scheduled to her last testimony on capitol hill, and you wonder like baseball players doing a retirement tour, whether they will give her a launcher or car is a farewell gift. she has been remarkably stupid what she has said, all through this year, that the fed is on a gradual pace for raising rates and the testimony suggests she will say the same thing today. very little news, very little composure. interesting to see when they get to the q&a when she gets back to what they had done. yesterday at the confirmation hearings for jerome powell, there was a lot of asking about regulation and the prices. we might get more about the economy and inflation and those kinds of in

jon: janet back on capitol hill very shortly -- janet back on capitol hill very shortly. -- janet yellen back on capitol hill very shortly. this is bloomberg. ♪ janetoments from now, yellen will testify before the congressional joint economic committee. she will discuss her latest outlook, 24 hours after the nominee, jay powell, had his confirmation hearing in front of the senate. around the table, michael mckee. are we expecting to see any daylight between what we heard yesterday and what we are about to hear today? michael: no. pretty much the same thing jay powell said. the economy is growing and the labor market is getting stronger and wages need to go up a little faster, but that is starting to happen. inflation should rise and that means we get a few more interest rate increases. jon: stephen has done the compare and contrast of the statement today in the statement yesterday. he said the powell approach has a close ended nature. we expect interest rates to rise somewhat further and yellen is more open ended when she says we continue to expect gradual increases. this seems very nu

venture janet yellen's -- fed chair janet yellen's announcement today has been overshadowed by who would replace her. a decision is expected from president donald trump on thursday. >> the head of the u.s. federal reserve is the most powerful central banker in the world. some past fed chairman have even achieved a high status. he opened the money floodgates and sent a feeding frenzy. there was unprecedented growth fueled by credit until the bubble burst in 2007. his successor, ben bernanke, had to do damage control. he kept monetary policy loose. the u.s. economy got used to extremely low interest rate. a rapid reversal would have cost shocks to the system. it was business as usual under his successor janet yellen. at least at first. now, she has opened the door to gradual increases in mid-stable growth in the u.s. the stronger intervention in the economy stands in contrast to the policies of the european central bank, which favors a lighter touch and a focus on inflation. the fed reacts to developments in the job market. yellen's term ends in february and this man may replacer, jerome p

well, this could be the last few months for janet yellen as fed chair. people are saying the cat is out of the bag. multiple media reports say donald trump will nominate gerome powell, meaning the four—year term of janet yellen will end next january. in her time as the fed chair, she has seen low inflation and robust growth. that is why we have seen the economy turn a corner. are expected to go up again in december. in fact, the federal fund futures are pricing that in that 98%. markets expect rises in 2008 m, 98%. markets expect rises in 2008 in, but that could change under mr powell. who is he? a lawyer used to be at the carlisle group. he is expected to maintain continuity. he is in favour of a low interest—rate environment and may continue with the of janet yellen, gradually increasing costs. it is interesting that he seems to be a supporter of deregulation. the white house does not want so many rules for businesses. he may support the white house. what is more interesting, he will be the first fed chair since walker if nominated to not have a ph

janet yellen has been peddling that line for months. conditions in the labour market are strengthening and we expect that to continue. while inflation remains low, we expect it to rise to about 296 low, we expect it to rise to about 2% objective of the time. low, we expect it to rise to about 296 objective of the time. jerome powell is likely to continue the fed policy of gradually raising interest rates, making the transition from janet yellen to jerome powell relatively smooth and that continuity is smooth for people here on wall street and the us market. let's go to asia now and chinese e—commerce giant alibaba is celebrating what it called an outstanding quarter. that's been the top story for our asia business team — shara njit leyl is following it for us. hugejump in huge jump in quarterly hugejump in quarterly revenues huge jump in quarterly revenues for alibaba especially field by its online shopping. they rose by 61%, a $.3 online shopping. they rose by 61%, a $5 billion. online shopping. they rose by 61%, a $.3 billion. the

it is not just janet yellen and jay powell. we have the president who is a key player fed rate hikes. he is speaking monday and will be speaking to jay powell on monday. he faces a senate committee and with a question him on this interest rate hike. takeare looking at regulation and deregulation. certainly with republicans on the committee. certainly they testified on the joint committee of congress. we would hear a lot from her about the economy and the balance. there are six other speakers next week. every day we are going to be hearing from a lot of people. a lot of questions that the market is interested in. december,he hike in that is coming up next meeting. what about the past for next year, if the fed continues that isthe free market signaled in september. we are going to have the fed meeting on monday. that is the anecdotal survey from the 12th district bank to give a snapshot of the economy. remember this is what it is so important. one more thing, they are higher. the key inflation game coming in on friday as well. be

he will nominate him later today to replace janet yellen as fed chair. powell is a lawyer, not an economist. it's a break with tradition. he is a republican. yellen, an economic adviser, is a democrat. what could this mean for monetary policy? talk about the budget when a new tax bill has been unveiled as well. lots to get to. jillian, let's talk about the switch from janet yellen to jerome powell. assuming everyone gets confirmed, what does this mean? >> you want to get some kind of verdict which is not necessarily that much. powell has been part of the federal reserve group for quite a while. he's a fairly known quantity. he's not viewed as a firebrand. he's seen as moderate in many ways, so what many people in the market think is that the monetary policy will be moving on a similar path that it's been on the last year or two under janet yellen. now, that could be wrong, because as you say, he is trained as a lawyer, not an economist, and his inner workings are not that well known. but one thing very important about him is he's well known by wall stree

yellen. and. told steele actually comical delivery of it down and post a lot just. from berlin i'm funny for char and this is your business news general paul who has been nominated as the next fed chief has generally supported the policies of janet yellen his predecessor and therefore is expected to remain cautious about raising interest rates too quickly. if trump had his way this man would head up the most influential central bank in the world jerome powell a former private equity executive has been sitting on the governing board of the federal reserve for years analysts expect him to hold on to the policies of his predecessor janet yellen that means he'll adopt a cautious approach to raise interest rates but the president's pick still has to be confirmed by the senate palin's appointment would be considered a good compromise when acceptable to the democrats and republicans would assume his post in february twenty fourth. and that much more of this is crossing over now to the to our man on

why not reappoint janet yellen? but if you want someone who's not a democrat, not appointed by barack obama. powell is who you need. you expect continuity wi current policy rather than radical change. jane: but this is a big job. how likely is it going to be that he gets confirmed? neil: looks likely. he is a republican, but he is conciliatory, a centrist, not an ideologue. he will get plenty of democratic votes for confirmation. confirmation is not the issue. the issue is what do you want -- what type of leader the one for this organization. he is not an economist, he is a lawyer. does not have the economic heft that janet yellen or ben bernanke had. jane: does not have an economics degree. neil: that said, a lot of this involves bank regulation and all sorts of complicated things that do not involve monetary policy, and he will have a lot of smart economists around him. jane: it is a big day for the economy today, because the republicans unveiled their tax plan, something the president has got behind so far. and a