Wasas the asset bubbles he worried about. We will continue to talk about that. Markets areow the reacting to this complicated decision. We of newsmakers throw the Program Including a Company Chairman and formal Federal Reserve chairman Alan Greenspan. And black rock ceo larry sink larry fink. It is quite a big program. First a check in the markets. Hawkish hold one hundred percent risk rally across the globe. Take a look at this it is green all over in europe. Telecom leading the way, euro stoxx 50 energy also moving higher. The dax now at a two week high. What does that mean for fx . It means a weaker dollar. You have the british pound up against the dollar. The one currently not in this is dollaryen, it is higher than you have investors digesting the boj decision from yesterday. Ng across theyi board. A strong rally in steel and iron ore. Those risky bases are seeing a huge move also crude is up. In the bond markey, i market, it is buying in the wrong end of the curve. Different 10 year yields and they low. I want to the could the short and we are seeing some selling as yields are backing up a bit. The story is getting into the market and go longduration. We will be addressing that move throughout the hour. Is that the right call, buying on this dip we are seeing . David we know it is a good day for you, alix, when copper is up. Lets check with our bloomberg team. With what is next with janet yellen. The fight of his life after the sec accuses Omega Advisors of trading. Alix we have to start with the fed, no hike about three members that descended. That is only the fourth time that has happened since 1992. Michael joining us now, overall you heard inflation was the key point in Janet Yellens testimony take a listen. Janet yellen we agree we are undershooting our inflation goal and want to make sure we stay on the course that raises that to 2 . We are struggling with the different issues with the new normal in this economy and the Global Economy or generally. That explains why we keep revising down the rate path. The dissent was the headline but janet yellen trying to paper over that a little bit. How confusing the economy is right now. Three dissents are rare. The last time was a fight over language. You can ask them about this. Involved in all of those dissents will be on the programmable to the letter. You have to go back to the 1990s to find any time there were three descents and how where is it there are three in favor of a rate increase . I went back to all the rate in which votes were recorded and could not find an incident of that. That is why theyre calling it a hawkish hold. That raises a question of how united is the fed on this hawkish idea. Youryou get to december three more jobs report three more manufacturing reports and three more reports on spending, three months of markets going up and down and the president ial election which somebody said could be huge for the markets. The fed will have a lot of data to digest. The rate increase might be a little optimistic at this point. It could happen but theres a lot of data for did a dependent fed. Alix how does this keep december a live when they are so much there is so much dissent . Situation since august . How do they manage that communication . See a lot ofwill reaction to the data. The markets will be driving this. Did a cominghe strong than the fed is going to be able to go along. If not you get this question of do they surprise the markets are not. Thet Pay Attention to beginning of december because a lot can change between now and then. Much, ourk you very economics editor. Another big market moving story of the day is oil. Up another 1 , james joins us from london. Is this another weaker dollar story for oil . James not purely, but there is oil has been quite volatile this week with people trying to figure out what is going on. We have been getting mixed messages so far with ministers from opec countries raising the prospects. Other people are saying these talks are just goggle they should perish just consultative just consultations. , theyhe next 72 hours could agree to have a formal meeting. That would be different from what the markets uprising in. Not pricing in any dramatic moves from opec. There is some skepticism they could overcome the problems that stopped an agreement in june. So, we surveyed a lot of tra ders, and the expectation is there wont be a major agreement. It remains to be seen. If the expected result emerges they just make plans for more talks in there wont be huge gyrations. Thank you very much joining us from london. We have these inventory numbers yesterday, sevenmonth lows to the some fundamental support to the rally nonetheless. Opec chatter always wins. Heard about these meeting so many times its a little comes out of them. What happened yesterday was the Hedge Fund Market was just wild, shaken because leons Omega Advisors was accused by the sec of Insider Trading. We bring in Peggy Collins now to talk about exactly what omega is accused of having done here. Peggy yesterday the sec alleges that mr. Cooperman and omega had inside information from Company Executives inside a Company Called atlas pipeline partners, an oil and gas producer. The charges relate to traits thend 2010 particularly summer of 2010 with the hedge fund had information and of time that atlas was going to sell an asset in july. When that happened the stock jumped 30 in the hedge fund made 4 million. That is the time period, and the single stock this is around. David Omega Advisors owned a fair amount of this company. Do you have any sense of what leon is defending himself with year . Peggy he came out and said with a five page letter saying he emphatically denied the allegations and was planning to fight. He followed up with a ten minute call with clients saying he will not let these regulators destroy his legacy and he will fight it. David peggy will join us later to talk about this more. But now you want to check out some securities. Alix that is an amazing story. This morning, the big mover, one shippersrlds largest in south korea. It can continue operation and totaleed 400 million in there were some stranded vessels now they can start offloading what was on those. This matter should the u. S. Because it will be a shipping Holiday Season as we get towards december. Also, i was talking earlier about the rally we saw in iron ore helping glencore. Up 5 , rebar in china up 3 as well. You had an upgrade in coal now. It is at the highest time for this time of year. At yahoo , itlook will report a massive data theft. They call it widespread and serious. Yahoo stockstill up on that risk rally. It is the same russian hacker as the linkedin theft. We are still looking mofr more into that story. David coming up, the fed and noteave the u. S. 30 year noting its biggest rally. The central bank doubleheader limit Downside Risk in treasuries . The head of global rich chatterjee joins us next with her outlook. This is bloomberg. Alix this is bloomberg, lets get update on what is making headlines out of the Business World. Emma the governor of north a state ofs defend emergency in charlotte after the second night of violence. Protesters protesting the shooting of a black man which led to Police Firing tear gas at protesters. City Officials Say they were not responsible. In the shooting the man they say refused to drop his gun of the resident say he was unarmed. Shows Hillary Clinton so leading donald trump. The survey by at msnbc has come than ahead 43 30 7 in a threeway race. Majority view clinton negatively but trump negative is even higher. Uk plans to hire 1000 more spies by the year 20 20 according to the bbc. The new intelligence recruits are needed because of the development of technology and the internet. They would work with the British Secret intelligence service. Alix it is a hawkish hold. In 2019, it is lower for longer. Citigroup saying buy the dip. I think the timing of a bond bear market has been delayed. Lets not be cherry about that. I think that in combination with what happened last night in japan was quite important in terms of bond yields and bond levels. Head ofe securities global rate strategy joins us now. An interesting 24 hours is buy the dip your call right now . Mores, for me the boj was important in the fed. It is been leading this entire bond route globally. The feeling was is a going to be some monetary action in japan . The abe government will increase. Pending, i was reading what we got from the boj was brilliant. Without hurting the life of the community, they will keep rates here for a while. We are back to the argument as to what we learn from the fed, for all the discriminant, ofagreement, there is a lot agreement at the base of normalization should continue. That was a bit of the field early on. Now what we hear from the feds ao want to normalize and gradually normalize. Cycle is of a hiking much lower. I think interest it is cheap here. Basis point. G 25 alix what kind of mood you expect to see . Will they be able to manage those expectations . They will have to sell and buy, and there may not be enough. Your confident in Central Banks ability to use your thesis . The boj has unlimited ability to buy bonds. My nervousness was 80 trillion buying. What if the liquidity actuallydried up . I am surprised they still talked about 80 trillion. I think that target is out the window. Upthe liquidity does dry that will be a lot less post of the market should not focus on how much they are buying but on their telling us it will be around zero. Invested, they just told me volatility will be extremely low. I will move globally. Ared put th e level we talking about and the slope of the curve. Wanted to steep in that yield curve. What is that due to the bond market . I think that steepening will happen. It means they will slightly rise, slightly higher premiums. Bond yield tells you is that it is effectively going bankrupt. The boj actions delay that. Prevent that te talk about this bond markey abe governmenthe issued fortyyear bonds . Without that, we are talking about and the five or 10 basis point it will be hard for us to steep and more because investors want the curve. Alix same thing here in the u. S. How much more can that actually flatten . In the lasteep and couple of weeks. Im looking forward to about 15 basis points appear. I think the big question is with the election how much of a shift will receive from congress around fiscal spending . Without fiscal spending that will flatten a lot more. Alix i love that boj and fed, were still talking mostly boj. David coming up, we discussed hittingeemonthlibor the highest since 2009. Leon cooperman finds himself facing a qs asians accusations of Insider Trading. Later, wilbur ross joins us to talk about where he is finding opportunity around the world. This is bloomberg. Go, thehis is bloomberg head of global ray chatterjees is still with us. Even his Interest Rate over all stayed lower your seen uptake in the rate at which banks lend to each other. What is causing this what is it doing to credit markets . We are putting of a chart right now to show that remarkable trend. I think this is very different from the increase weve seen in the past. This is from reform, less than three weeks our from that deadline. They have changed the rules for these funds. That has created a supply demand mismatch. If the rate is rising because there is less demand effectively also changes. It is creating a supply demand for front and banking. Doesnt reflect worsening bank credit but reflects higher funding costs. Numerous need to Pay Attention to that. Alix some analysts estimated could add three and 2 million in annual interest repayments because that goes up. David how much of that is already baked in . The market already placed it in . A certain amount of interest but i think it is going more than that. There is question of how much will happen between now and october 14. There is this view that it will come back into prime funds. I am not sure. Or six basis points above government yields. That pickup is incentive for anybody to move back in probably reputations. I think it will take a while. Demandrealize the cant rise. So libor edge higher. Look at credit interests, my question is as you have libor rising and getting that higher yield and wind up having yields continue relatively lower all across the globe is this a green light to go by u. S. Corporate debt . With Loretta Lynch say corporate debt make sense. Where think investors could look at is the spread curve. Because of libor rising, front creditdit front end has cheapened considerably. A begin your fed risk at the front end. Buy shortterm corporate debt that some treasuries you get the yield at the same time. Brilliant, thank you could to see you. Coming up, the sec accusing Hedge Fund Manager of Insider Trading. And it had an Immediate Impact on omegas equity holdings. The chairman joins us that is all coming up next. Emma it is 7 30 on wall street, he was what you need to know this hour. The ultimate fed rate hike are increasing. A 61 chance in move after december after the fed decided to leave rates unchanged despite three dissenting votes. Denmarks Biggest Company moves ahead with a historic shakeup of the conglomerate. Yahoo ising to rico, preparing to disclose a massive data breach of its main servers just as a land of communication prepared to take over the Internet Companies core assets was at that is what you need to know this hour. Isx here in the markets it a pure risk on rally continuing into the dax up by almost 2 . United utilities and telecom all leading the way. In the fx market and risk on rally means a weaker dollar. The dollar index down almost 3 10 of 1 of 1 to moving lower as the session continues. The topollar one of performers although dollaryen not participating in that kind of selloff. Movinghave the yen slightly lower against the dollar. In commodities its the after effects of that weaker dollar almost 1. 5 r up by the rally continues in oil as well. A lot of movement happening in those base industrial commodities. In the bond market it is green. I hate to be so simplistic but it is buying all across with the yields coming down whether you are in switzerland at the 10 year or hear the treasury markets. It is all about that curve particularly in the u. S. Continuing to flatten as you see that hawkish hold take root within the markets. Coming after the fed meeting that has to do with the new related interest versus the affective fed funds rate. That one line is the effective rate now down by. 56 . That neutral rate is basically at zero. The reason why that is so significant is yesterday in the conference janet yellen said the sides of a rate increase required to remove monetary accommodations may be small because the natural Interest Rate is so low. Think about a ticket from. 5 up to positive 1. 8 that is not a huge jump. Meansit overnight that the guidance of nine hikes from now through 2019 doesnt match up with this kind of accommodation, this kind of potential rate increase that we will see. Theoesnt jive with longterm growth forecast. That means perhaps the fed is still too hawkish beside the fact the broncos longerterm dots down. Fascinating take not that much room for them to hike if somehow we get to nine through 2019. David it seems like the fed cant get dovish enough as much as they try. Of theoperman is head Prominent Hedge FundOmega Advisors for some yesterday, the sec accused them of Insider Trading. Didnt hold his punches in responding. He said this it may 50 years of hard work and playing by the rules to get where i got and i will not let these people destroy my legacy. Pretty strong words. For more we turn now to Peggy Collins who covers our investor area for us. Give us a sense of exactly what are the charges. Sentially, the sec allege that they had intended information from Company Executives in 2010 at a company that is in oil and gas producer. And they had information and a time that atlas was going to sell an asset, and loaded up on the hedge fund made money off of them. He vigorously denies this and says he issued a fivepage right after the charges were announced and followed it up with the conversation with clients yesterday Afternoon Voice and we did nothing wrong into the goes back to the fact that he was an oldfashioned stock picker one of the things that has been shifting in the industry. He said he believes in facetoface meeting to the executives and he really dug into the stock, compared with some of the computer based trading. David normally using this would get settled but he said they couldve settled but did not want to. Say that they offered him a settlement and he couldve paid easily but he didnt want to go down with these charges because he believes he didnt do anything wrong. This is really the arc of his career, he is 73. David put that in a larger perspective what to some like this mean for his fund . People yesterday said omerga is cooperman. The personality and made his way into wall street in many successful career out of it. He is known in philanthropy sparkles circles. He is the face. David given his position, are there shockwaves going to the rest of the Hedge Fund Industry . Is this a one off . Most it is the highprofile Insider Trading case since we had sec capital. The of seen some traders sell out. Industry ise fund under tremendous pressure. David omega has lost a fair ammount over the last year or so. Peggy the main fund is up about 3 . David thank you so much, pe ggy. Alix . Alix finding