let's listen to janet yellen. janet: given that monetary policy affects economic activity with substantial lag, it would be imprudent to keep monetary policy on hold until inflation is back to 2%. >> inputted to leave monetary policy until inflation gets to 2%. >> she looks at the strength of the labor market, something that is very important. this is worthy of where the economy is. let's look at #btv 776. this shows the white line of the main. janet yellen said in her speech that beaches continue to move higher. she is seeing signs of that but you see how they track each other. now it is lightweight is are moved flat. it doesn't like it will move up just yet. as far as what is happening next, this is something i think that is very important in getting the markets on board with her expectations. they will need to and be justified in raising rates on december. let's look at #btv 80 to 90. we are looking at a compilation of a world just rate projection. you can see how the chances of a septembermoved from -- they mo

there are many in lockstep with janet yellen on one more rate hike read you think janet yellen raised doubts about this view that if we do not hike soon enough, it will hurt the economy? dan: it is safe to take away from this, and certainly from the fomc last week, that december is definitely on the table. there is reiteration that with a gradual hike, they will get the 2% eventually. we will stabilize around that level. airings give quite some to this idea that they could be wrong. they could be imperfectly understanding the link between the labor market and inflation. they could be imperfectly understanding of inflation itself. the reason that jumped out at me, this is the question potential bankers around the world are asking. it is not a uniquely american phenomenon. chris: i do think it is interesting the way she frames it. she is talking about inflation being low this year, which makes the idea of transitory factors credible. what she does not talk about is, inflation has been under 2% for 20 of the last 25 years. which makes transitory factors a little less credible. there bis

janet yellen tried to make that pretty clear. they want to start the balance sheet, unwind, put it on a shelf, let it happen. now that distraction is out of the way. they want to get back to rate normalization. i think that is what they will do. for them to interrupt balance sheet normalization, you would have to have a major downturn in the economy, or a significant financial problem. liz: jim frischling, say you had those things, where are you assaulting money to protect you from that kind of issue? >> sure. actually i really believe that people left europe for dead, on or about "brexit." if you look at valuations, they are about half, price to earnings valuations of some european etfs, half of that what we're seeing in the u.s. europe is not dead. i think people like germany, italy, spain are worth taking a look right now. liz: great to see both of you. ward mccarthy, jim frischling in a jam-packed hour with janet yellen saying we're ready to get back to normal but boy it will be slow. we thank our jewish friends for the new y

apart from janet yellen, there are 11 other fed positions speaking next week. we want to understand long end rates, inflation, what gives them confidence on inflation. i will be watching mario draghi little more. he has to signal. jonathan: that is the guidance. it doesn't look like they have a clue what they are going to do yet. greg: it does not look that way. the last meeting, the market interpreted that there is something to do in october. i think all eyes are on him to clarify that statement even though he did not say anything. markets are looking for him to clarify. jonathan: what is your base case now? greg: i think it is steady as she goes. if you look at inflation numbers, that are lower today, i think there are real challenges that are structural. they have to do something. i do think they may announce something, but they could also extend it at the same time. jonathan: has janet yellen made mario draghi's life a little more difficult? colin: definitely. there's no doubt about that. she makes my life more difficult because within the fed we have no id

in the aftermath of the financial crisis janet yellen has. done the same thing i mean how does this bode for the future of the fed how much sway does he have he was a very close confidant of janet yellen he absolutely was they were on the same page when it came to making sure that some of the stronger regulations that they feel made the banking system that much more resilient in the face of the next recession stay in place and randi quarrels on the opposite of the spectrum has been very public in saying that some of the need to be tapered back toned down tempered which obviously is very friendly towards the banking sector so it will be interesting to see to get those two in a room without stanley fischer again of coral's it's confirmed ok you know i've got to ask you something because you've come on the show before and we've we've talked about the. feeling on the fed stanley fischer was appointed to the fed in two thousand and fourteen barack obama economics professor at mit governor of the bank of israel two thousand and four to two thousand

share a stagell with janet yellen today. there is a lady thatthere is a e on juliette -- take stage on bloomberg daybreak every day, juliette saly. juliette: capital partners are clawing partners -- exploring options. according to people familiar with the matter, the controlling shareholders of the drugmaker have held talks with shanghai pharmaceuticals focusing on the so -- focusing on the cell. jaguar land rover is scouting for acquisitions of international automakers amid rising competition in the industry. according to people with knowledge, the luxury unit has been holding internal discussions on buying other brands to diversify the branch of vehicles to sell. kkr is said to be trying to deflate desperate sweet apple to switch sides and join the avid that this comes days after the japanese company says it agreed to sell the unit to another group led by bain capital for $18 billion. yet toone maker has pain.with that is your bloomberg business flash. manus: the president macron makes a speech later on this afternoon. he

in the aftermath of the financial crisis janet yellen has. done the same thing i mean how does this bode for the future of the fed how much sway does he have he was a very close confidant of janet yellen he absolutely was they were on the same page when it came to making sure that some of the stronger regulations that they feel made the banking system that much more resilient in the face of the next recession stay in place and randi quarrels on the opposite of the spectrum has been very public in saying that some of the need to be tapered back toned down tempered which obviously is very friendly towards the banking sector so it will be interesting to see to get those two in a room without stanley fischer again of coral's it's confirmed ok you know i've got to ask you something because you come on the show before and we've we've talked about the. feeling on the fed stanley fischer was appointed to the fed in two thousand and fourteen barack obama economics professor at mit the governor of the bank of israel two thousand and four to two thousan

in the aftermath of the financial crisis janet yellen has. done the same thing i mean how does this bode for the future of the fed how much sway does he have he was a very close confidant of janet yellen he absolutely was they were on the same page when it came to making sure that some of the stronger regulations that they feel made the banking system that much more resilient in the face of the next recession stay in place and randi corals on the opposite of the spectrum has been very public in saying that some of the need to be tapered back toned down tempered which obviously is very friendly towards the banking sector so it will be interesting to see to get those two in a room without stanley fischer again of corals it's confirmed ok you know i've got to ask you something because you've come on the show before and we've we've talked about the. feeling on the fed stanley fischer was appointed to the fed in two thousand and fourteen barack obama economics professor at mit governor of the bank of israel two thousand and four to two thousand an

most of those gains came before janet yellen's speech. after it there wasn't much further reaction to the upside in the dollar. today there is around 0.5%. the dollar is moving higher against all of those currency pairs. the euro, yen and the british pound. being cited as that relatively hawkish line or two in janet yellen's speech. because slightly delayed reaction for currency pairs. euro has been on a slide eventually the most pronounced of those dollar strength across the board. gold prices for you, down three quarters of a percent yesterday. now to the wall street agenda, a pair of economic reports, durable goods out at 8:30 a.m. eastern, followed by pending home sales at 10:00. several fed officials are speaking today, including neel kashkari, james bullard, lael brainard and eric rosen grin as for earnings, one notable earning, thor industries >>> shares of nike are low their morning despite better than expected results the company reporting its slowest quarterly sales growth in seven years north american sales are a weak spot join

janet yellen, she is in a tough spot. by the way there is a lot of questions as to whether or not she will be the person to oversee this, right? because donald trump hasn't necessarily expressed enormous support for her. he has endorsed her here and there but there was a lot of speculation for some time that gary cohn, formerly of goldman sachs, might be the guy to take her job. i think that died down considering, remember the letter he wrote after charlottesville but is she really going to be the one that will oversee this? is it important that she does? douglas holtz-eakin? >> i don't know that it will be janet yellen. i don't think that is by any means clear. it is not obviously the who the front-runner is if it is not janet yellen. trish: hang on. i think she is coming to the podium right now. she is taking a seat. reporters are anxious. they want to hear what miss yellen, fed chair has to say about how this whole unwinding process will work. let's listen. >> at our meeting that concluded earlier today my colleagues a

apart from janet yellen, there are 11 other fed officials speaking next week. it will keep us on our toes and probably within a range, but we want to understand long end rates, inflation, what gives them confidence on inflation. i will be watching mario draghi little more. it is technically auto now, -- a fall, but -- the jonathan: that is the guidance. it doesn't look like they have a clue what they are going to do yet. greg: it does not look that way. the last meeting and press conference, the market interpreted that there is something to do in october. and so, i think all eyes are on him to clarify that statement even though he did not say anything. the markets are looking for him to clarify. jonathan: what is your base case for october now? greg: i think it is steady as she goes. i mean, the challenge, if you look at the inflation numbers, that are lower today, i think their real challenges are structural. they are running out of bonds to buy so they have to do something. i do think they may announce something, but they may extend it at the same time. i don

apart from janet yellen, there -- other fedsaid officials speaking next week. it will keep us on our toes and probably within a range, but we want to understand long end rates, inflation, what gives them confidence on inflation. i will be watching mario draghi little more. it is definitely autumn, or the fall -- jonathan: that is the guidance. it doesn't look like they have a clue what they are going to do yet. greg: it does not look that way. the last meeting and press conference, the market interpreted that there is something to do in october. and so i think all eyes are on , him to clarify that statement even though he did not say anything. the markets are looking for him to clarify. jonathan: what is your base case for october now? greg: i think it is steady as she goes. i mean the challenge, if you , look at the inflation numbers, that are lower today, i think there are real challenges that are structural. they are running out of bonds to buy so they have to do something. i do think they may announce something, but they may extend it at the same time. i do

julie: i want to bring what janet yellen had to say in a statement. she says "his team inside and -- herand -- lifelong represented the port internationally and lead our efforts to foster financial stability." obviously, a glowing commentary from janet yellen as sort of an economic policy fan boy, imagining the conversation that must have hadcher over the years and that dynamic no longer present at the fed after the middle of next month. it is difficult to imagine now with two potential slots of the grabs with the dynamics will be. michael: it's a little guys the idea -- it solidifies the idea they would go with the announcement in september because that is some debate agreed on. there were not the question. he has time his departure for after that meeting and it looks like that with something that they would get accomplished so he could run in the background while other drama takes face. as marty says, the idea of a december rate increase up in the air, a lot will depend on now of the views of the people who will be voting on it and there is one fewe

." ♪ jonathan: coming up, janet yellen brushes aside plans to the lowflation story -- plans to unwind the balance sheet and entities up another rate hike before year's end. geo politics fuels the bid as north korea threatens to deliver a hard-line response to president trump. and beyond toys "r" us filing for bankruptcy, heavy debt loads continue to haunt retailers. we start with a big issue. why unwinding a $4.5 trillion balance sheet is apparently nothing to worry about. >> i imagine janet yellen is doing cartwheels behind the scenes at how well the market has taken the balance sheet reduction plan and announcement. >> the fed wants this to be like watching paint dry for us. this will be very boring. it is all preannounced. it was all very transparent. there was no surprise in the announcement yesterday. and so, i think we will be watching quantitative tightening in slow motion. >> i think that what she is trying to do is as little as possible. she introduced tightening in monetary policy, and she was trying to do as little as possible with the dots to keep them as unchanged as they

janet yellen speaks later on. we have seen the dollar bounceback as we have seen european liquidity stocks coming into the market at what are we looking at? overnight, in terms of fx trading, vrable bounced back a little bit. -- the ruble bounced back a little bit. the yen is treading higher, up by .2%. the election story factors in their. -- factors in there. let's spend that off and talk about what else is going on, the commodity story is very interesting. you have the kurdish story in the oil market. you have what is happening in .7%.r which is up by the number commodity index is trading up. -- the bloomberg monte index is trading up. keep an i on what is happening with oil, the geopolitical story .n their -- in there a lot of people saying the curve is wrong when it comes to the oil market right now. let's get a bloomberg business flash update with juliette saly. juliette: the us has discussed for a five ways to deal with north korea according to h.r. mcmaster. he said some of the choices are uglier than other

chair janet yellen sticks to the rate hike path, brushing aside the inflation mystery. >> what we need do is figure out whether or not the factors that have lowered inflation are likely to prove persistent or they're likely to prove transitory >>> the fed bank boost reaches europe as the sector hits a one-month high amid reports unicredit is eyeing commerzbank for a megamerger >>> anglo american shares jump after indian billionaire anil agarwal ups his stake, making him the south african miner's top shareholder. >>> protesters are arrested in barcelona after tens of thousands take to the streets to demonstrate against spanish police raids of government offices, in a bid to block the catalan referendum.. >>> good morning it's thursday. a busy morning for us here let's kick things off with the stoxx 600. we are up to the tune of 0.2%. just off session highs one hour into the trading session we have a couple big stories going on we have the fed impact and we've got some m&a stories circulating around commerzbank before we do that, here's a look at the indices one by one. all of them are f

fed chair janet yellen. president trump is planning a 20% corporate tax rate and a maximum personal income tax level of 35%. details are said to be unveiled during a speech which he will deliver in indiana. let's join mark cudmore, joining us from singapore. let's talk about janet yellen first of all. she is pretty clear that she has put december on the table. she is talking about the fact that she is not too worried about inflation, she does not understand what is going on so she will crack on. the market seems unconvinced. is that the right trade? mark: they will regret being unconvinced. the fed was definitely hawkish down to data moved dependence and said it ignore the fact there is no inflation. the economy cannot cope with the rate hike for them not to hike. janet yellen reiterated that point and yet the move in rates and the dollar has been subdued. in the last couple of hours we getted to see the dollar more of a bid and u.s. rates tick up but this morning was surprising, i was reading one comment in

pretty interesting when you consider that one of his mentors is janet yellen. vonnie: looks like it was brought on it seems to me. shery: daniel moss, thank you very much. is set coming up, amazon to unveil a hold a range of products today at the companies seattle headquarters. what should consumers and competitors may be more importantly expect? we will have more next. this is bloomberg. ♪ shery: welcome back. this is "bloomberg markets." i'm shery ahn. vonnie: i vonnie quinn. micron technology of more than 7% after reporting earnings that beat. on top of that, the memory and storage chipmaker forecast another strong quarter. joining us now is taylor riggs. taylor: it's all about the future forecast revenue growth and matching expectations. they are expecting growth to be 60% and that's a pretty good especially after they came up two quarters of 90% growth each, so really making a lot of games. if you look at the numbers, you're looking at $6.3 billion. this time a year ago you are less than $4 billion. if you take back on a long-term chart, you can see how

in the news conference with fed chair janet yellen. matt: we think they will continue to be transparent, walk you through every step of the way what they are trying to do. they don't want any surprises. it got them in trouble in the past. we saw the temper tantrum. they don't want that. we are listening to what they have to say and they will try to end things. jonathan: here's the thing i don't get, kathy. will we get the summary of economic projections? we have laughed about it before. we don't know who is going to be at the fed. on the base case for year end 2018, they are seeing rates pretty much where the 10-year is now for the fed funds rate, just north of 2.10. we are at 2.20 on the 10-year. either someone is really wrong, the treasury market or the fed, or the yield curve is just going to look like this. dead flat. which one is it going to be? kathy: someone is wrong. i think the fed will probably bring down some of their dots. we will get 2020 now for the first time as well. jonathan: for whatever that is worth. kathy: well, fo

chief janet yellen announcing a reduction in the bond buying program. she is facing a tough balancing act between embracing the ongoing economic recovery, and worrying over a recent drop in inflation. and when she speaks, the business world is listening and if so is our financial correspondent at the new york stock exchange. good to see you. ok, based on what you have heard and what we have heard, will we see a further rate hike this year? correspondent: it seems so. over the last couple days, the futures were already looking at the possibility of the rate hike this year, probably in december after conversations and washington about tax cuts and the fiscal stimulus. today, after the dot plot was published, expectations have skyrocketed to over 70% in favor of a 25 basis point increase by mid-december, that will lock the short-term interest rates between a range of 1.25-1 .5%. and janet yellen said the path will increase, but if you want, let's listen exactly to what she said. janet yellen: we have raised the funds rate four times and we believe we are o

you got to take janet yellen at her word. when she said all decisions are data-dependent, well, it is a slow-moving process. this is not a contract, this is their forecast. things turn out differently than they forecast, then they will not deliver. betty: we are waiting for the boj as well later today. do you think this makes anything more cloudy for the boj? they are looking at it from the flipside. dollar appreciation means the yen depreciation. what governor kuroda has had a hard time doing is generating inflation. anything that can help him is probably welcome news. reinhardt, chief economist, joining us live from boston. i also want to thank kathleen hays. plenty more to come. this is bloomberg. ♪ ♪ betty: this is "daybreak asia."i am betty liu in new york. yvonne: and i am yvonne man in hong kong. the world bank is selling insurance operations. it makes it the biggest acquisition by the hong kong-based in sure. cba disclosed in august they were in discussion with third parties about the unit. they were also -- betty

followed by yesterday's speech by janet yellen. the strategy is likely to continue raising borrowing costs, anyway. she talks about the labor market. >> my colleagues and i may have misjudged the strength of the degreemarket, the which is consistent with our inflation objective, or even the fundamental forces driving inflation. taylor: we will hear from three more fed officials today. they all speak at separate events. that is your bloomberg business flash. tom: thanks so much. it is a good time to speak to howard ward about hawkish tinges i mentioned of chair yellen. mr. ward is of gabelli funds. all of this is presumed on a pickup and inflation, do you see a pickup and inflation? mr. ward: no, and a few minutes ago we talked about the pce deflator. one pointnning around 6-1.7 and the fed has tightened four times, they have to tighten five times. they are moving to normalize things, but they may be doing things start to weaken, but the hurricanes -- tom: i agree, but the critical issue is howard ward looks at a lot of different co

already down 13%, 14%. >> yes i'm surprised it's not down more. >>> janet yellen ripping into wells fargo during yesterday's fed news conference. yellen says the bank could face more penalties for opening up of millions of unauthorized accounts >> i consider the behavior of wells fargo towards its customers to have been egregious and unacceptable we take our supervision responsibilities at the company very seriously we are attempting to understand what the root causes of those problems are and to address them and we -- i'm not able to discuss confidential supervisory information and not yet able to tell you what actions we may take but i do want to say we're committed to taking the actions we regarded as necessary >> this is frankly extraordinary to hear this >> very strong words >> so severe and so late in the game this scandal broke over a year ago. the initial action was taken by the cfpb, and the fed has not really done anything yet as senator warren points out, the fed has the ability to remove board members so far wells fargo removed three members, added one of a total of 15 clearly

scarlet: janet yellen pressed on that during the news conference. give us your final thoughts from the central bank, michael. michael: how long does this policy path last? if conditions don't change significantly, they will raise rates. 2018 is going to see a whole new fed. she said she hopes the president will start appointing people. that will change the outlook and the way they make policy. there isn't a real long-term path. you should always have the last question of the press conference. killer. ira jersey. ira: we need to wait for the treasury department. that will be the next thing. how will a deal with the fed runoff? carl: we need to tighten policy. you see in the spread of the dots a huge variance over the next several years. not a strong consensus. scarlet: we will see how that shakes out. ira riccadonna nad i -- and jersey. michael mckeen. --michael mckee. tom: i have been up for 12 hours. ourlet: that doesn't for special coverage of the 12 decision. coming up, a power panel from our global business forum. -- that doesn't for our special

." ♪ jonathan: coming up, janet yellen brushes aside plans to unwind the balance sheet and entities up another rate hike before year's end. geo politics fuels the bid as north korea threatens to deliver a hard-line response to president trump. and beyond toys "r" us filing for bankruptcy, heavy debt loads continue to haunt retailers. we start with a big issue. why unwinding a $4.5 trillion balance sheet is apparently nothing to worry about. >> i imagine janet yellen is doing cartwheels behind the scenes at how well the market has taken the balance sheet reduction plan and announcement. to be likewants this watching paint dry for us. this will be very boring. it is all preannounced. it was all very transparent. there was no surprise in the announcement yesterday. and so, i think we will be watching quantitative tightening in slow motion. >> i think she is trying to do as little as possible. she introduced tightening in monetary policy, and she was trying to do as little as possible with the dots to keep them as unchanged as they could be in the next 12 months so beyond that they can mak

and janet yellen speaks and caution is the message. >> this is a topic that we do not understand it all and we may have made mistakes. >> a finance ministers speaking of. >> we are at a turning point. we have turned a corner. >> and we explain the appeal of trading bitcoin. >> i always tell people i need a story and a chart. >> and exclusive investment in sight. >> call me a cynic, but i think there could be a little disappointment ahead of us. >> all ahead on "bloomberg best." host: welcome. i'm yvonne man. bloomberg best, a weekly review of the most important business news, analysis and interviews from bloomberg television around the world. it was a momentous week in politics and policy across the globe, starting with a closely watched election in germany. angela merkel has won a fourth term as chancellor, but her victory was marred by support for the populace party and a clear rebuke to her open door policy on refugees. mainne of her mine -- partners now want to be part of the opposition. who will she build a coalition with? >> with the liberals and greens, that is their only choice

in the news conference with fed chair janet yellen. matt: we think they will continue to be transparent, walk you through every step of the way what they are trying to do. they don't want any surprises. it got them in trouble in the past. we saw the temper tantrum. they don't want that. we are listening to what they have to say and they will try to end things. jonathan: here's the thing i don't get, kathy. will we get the summary of economic projections? we have laughed about it before. we don't know who is going to be at the fed. on the base case for year end 2018, they are seeing rates pretty much where the 10-year is right now for the fed funds rate, just north of 2.10. we are at 2.20 on the 10-year. i keep coming back to this question. either someone is really wrong, the treasury market or the fed, or the yield curve is just going to look like this. dead flat. which one is it going to be? kathy: well, somebody is wrong. i think the fed will probably bring down some of their dots. we will get 2020 now for the first time as well. jon

in the news conference with fed chair janet yellen. matt: we think they will continue to be transparent, walk you through every step of the way what they are trying to do. they do not want any surprises. it got them in trouble in the past. we saw the temper tantrum. they don't want that. we are listening to what they have to say and they will try to end things. jonathan: here's the thing i don't get, kathy. will we get the summary of economic projections? we have laughed about it before. what is it worth, given we don't know who is going to be at the fed. if you look at the dots at the moment -- on the base case for year end 2018, they are seeing rates pretty much where the 10-year is right now for the fed funds rate, just north of 2.10. we are at 2.20 on the 10-year. so i keep coming back to this question. either someone is really wrong, the treasury market or the fed, or the yield curve is just going to look like this. dead flat. which one is it going to be? kathy: well, somebody is wrong. i think the fed will probably bring down som

he is also a supporter of janet yellen. with the coming departure of stan fischer, it is a triumvirate. as a matter of fact, he said he was surprised by the inflation shortfall in does see inflation rising back to 2%. over the medium-term, that is the boilerplate for saying, maybe not right away, but over time it will get there. he thinks the path should be gradual. valuations, overvalued stocks some are not particularly troublesome. he is ready to raise rates if that is what is called for. the president of the cleveland fed, more of a hawk on monetary policy, said earlier she double down on rate hikes. it could return over the next year or so toward 2% on a sustainable basis. she said she is comfortable with another hike this year. in her mind, the fed waits until march of next year to make a move, that is not gradual. she is saying that is moving too slowly. esther george, said she is watching the data. but she would like to raise rates. speaking about an hour from now. we are getting a lot of indications from fed speaker

this is following janet yellen's term. the contest for the position remains open according to administration officials. >> warsh is not far from a standard banker, although he has slight differences in policy prescriptions. he does not like policy rules, like the taylor rule, he does not think they are accurate enough. he would go to a range for inflation, rather than a point target, like 2% right now. he thinks that we have been within an acceptable range for the past couple years. now the question is, how would he go over at the fed? he has angered some at the fed with some sharp criticisms on the way that the board has organized and governed, so it could be an issue. >> the electric power authority in puerto rico ravaged by the hurricane, now with the entire island without power. and bonds have been offered that would include a $1 billion loan and an influx of capital when it is needed. >> we have come up with a proposal on lending with the -- with a sub 6% interest rate, providing a substantial chunk of new capital. it

we're all waiting to see what nuances we got from janet yellen's speech, she had a 37-page speech yesterday opacity in labor markets, opacity in inflation and what's going on with wages was the central theme. net-net those market participants who originally thought a 40% chance of a rite hike in december now think there's a 76% chance i have not seen anything that changed from her record and the rest of the fomc in that period. wonder if they'll change their minds on the markets on whether there's more chance of rate hikes in 2018. the fed still sees 100 basis points the market 40. today your focus should be on tax stateside. it looks like congress and some key gop politicians will outline what they see on corporate tax going forward. let's look at the markets. the banking sector, 1.3% higher. that's one of the best performing sectors so far by a country mile basic resources doing well construction material, insurers on the upside. to the down side, some of those defensive bias sectors, such as utilities, food and beverage and healthcare under pressure. ♪ >>> siemens and alstom are mergin

or janet yellen i misread anything, if we loosen policy if inflation is lower? >> i will say janet yellen. that is the most shocking thing i heard today? >> liz: how come why? >> we're on inflation pressure that was the no the case. liz: i loved it, inflation weakness may be transitory. meaning temporary. apparently it's not for the moment. >> at least for the moment. liz: what does an investor do? >> funny you should ask. we manage people's money. we see all kind of things. you listed three. there are variety of things that happen every given day. we caution investors focus on the long haul, be diversified. use appropriate investment vehicles to satisfy a long-term investment allocation. don't overreact to any news. not door number one, door number two, door number three. be patient, invest around a long-term strategy. liz: do your clients have a long-term strategy? what is your biggest position? >> we see what is going on in the marketplace. we see tech is hot and energy is not. if you rewiped the news, the opposite is true of health care and energy. they're f

start with janet yellen. >> janet yellen will speak here in cleveland before the association for business economics. a lot of people want to know what the fed thinks will drive inflation higher. there is a general feeling it will happen. . unemployment goes down and inflation goes up. they're wondering what happened and why it's taking so long. we heard from bill dudley this morning. probably her closest ally in the fed saying it will go up reasonably soon but we are still waiting. >> to what extent are they waiting for congress and the president and tax reform? are they just basically putting that out of their mind at this point? >> it is a good question. these economists work for all the biggest companies in the matter -- in america. they found optimism about growth in the future and a lot of that is predicated on the idea of infrastructure reform. without it, we tread water. and head ofirector the associated general contractors of america, here is what he had to say about it. say a cautious increase, that businesses believe the economy will keep expanding. forecasters think we will see

a little job owning from janet yellen. she struck a middle ground, hike,ing the fed rate despite missing the 2% target. >> a gradual approach is appropriate in light of subdued inflation, and the low neutral real interest rate. which implies the fomc will have limited scope to cut the federal funds rate, should the economy gets hit with adverse shock. we should also be wary of moving to gradually. abigail: her ecb counterpart mario draghi took a more dovish tone. bank of england mark carney will speak thursday. how should investors manic -- navigate? joins us from london. thank you for taking the time. her comments are classic said talks. she says because of uncertainty they have to taper off gradually, on the other hand, they want to be wary of doing it to gradually. why is that the strategy the fed uses so often? what do think she means there? strategy is toe migrate policy from post level financial crisis wartime policy to peacetime monetary policy. peacetime monetary policy moves to the best guess of neutral interest-r

dudley, ans, bill ally of janet yellen and big supporter, let's listen. >> i think janet yellen has done a fabulous job. i have known jennifer years and years. we are good friends. i think she would be a fine choice and leave it there. triumvirate of policy has been fed chair yellen, stan fischer the vice chair, and in york fed president bill dudley. stanley fischer stepping down all the more important and not surprising that we see bill dudley echo what janet yellen has said, inflation will rise in the medium-term and keeping the door open to another rate hike. bill dudley did not put a date on it, but fed watchers and it could happen in december. david: mario draghi basically stopped short of saying watch october. currencies in the next, one of the better performing currencies. what did he say are not say about the currency and why is the currency, the euro, above 1.21? above, .120,ing and he said that the euro needs more monitoring and is causing uncertainty. volatility in the exchange rate represents a source of uncertainty which requires monitoring with regard to its possible implic

fed chair janet yellen went further than she has in the past, guys, in acknowledging the fed may not fully understand the inflation die nynamidynamic. ultimately she ends up in her speech before economists today, backing the fed's current policy of gradual rate hikes and removal of easy monetary policy. the reason, she says there's substantial drawbacks to the fed going too slow >> without further modest increases in the federal funds rate over time, there's risk that the labor market could eventually become overheated, potentially creating an inflationary problem down the road that might be difficult to overcome without triggering a recession. >> that was the conclusion of the speech, but she spent most of the time before that speculating about the possibility the fed might have inflation and the job dynamic wrong. >> if these sorts of favorable supply-type shocks continue, achieving our 2% inflation goal over the medium term may require a more accommodative stance of monetary policy than might otherwise be appropriate >> i know what you care about, was it hawkish or dovish is a lit

this is following janet yellen's term. the contest for the position remains open according to administration officials. >> warsh is not far from a standard banker, although he has some slight differences in policy prescriptions. he does not like policy rules, like the taylor rule, he does not think they are accurate enough. he would go for a range for inflation, rather than a point target, like 2% right now. he thinks that we have been within an acceptable range for the past couple years. the question is, how would he go over at the fed? he has angered some at the fed with a sharp criticism on the way that the board has organized and governed, so it could be an issue. ♪ vonnie: the electric power authority in puerto rico ravaged by hurricane. -- by hurricane maria. virtually, the entire island remains without power. a group of investment funds that all $3 billion worth of the electric utility bonds have been offered a deal that would include a $1 billion loan and an influx of capital when it is needed. >> we have come up

this is following janet yellen's term. the contest for the position remains open according to administration officials. >> warsh is not far from a standard banker, although he has some slight differences in policy prescriptions. he does not like policy rules, like the taylor rule, he does not think they are accurate enough. he would go for a range for inflation, rather than a point target, like 2% right now. he thinks that we have been within an acceptable range for the past couple years. the question is, how would he go over at the fed? he has angered some at the fed with a sharp criticism on the way that the board has organized and governed, so it could be an issue. ♪ vonnie: the electric power authority in puerto rico ravaged by hurricane. virtually, the entire island remains without power. and electric utility bonds have been offered a deal that would include a $1 billion loan and an influx of capital when it is needed. >> we have come up with a proposal that allows lending to occur on a 6% interest rate, providing a

taylor: neel kashkari is backing janet yellen for a second term. >> i think janet yellen is doing an excellent job and i really hope she gets -- i cannot think of anybody was better equipped to lead the federal reserve for four more years than her. economist with leadership skills. taylor: yellen speaks on monetary policy in cleveland this afternoon. you can watch it live here on bloomberg television. some are calling it china's netflix. they are targeting u.s. initial public offering as soon as 2018. it could value china's was popularnetflix. streaming service as much as $10 billion. the biggest diamond found in more than half a century is off the block. it was sold for $53 million. is the size ofch a tennis ball went unsold last year and has been expects to go for as much as $86 million. that is your bloomberg business flash. is the size of i was waiting forjonathan: kashkari to say apart for me. that: i am not sure president trump is listening to neel kashkari. neel kashkari would like to push his name forward. alix: can we talk but the diamond for a hot second echo that was the s

janet yellen is very concerned up to the 2% target. it really comes back to labor. for .3% unemployment. i don't believe that number. it is much higher than that. you still have an awful lot of people who are on disability and so forth who now the jobs -- yes, that is true, too. now the jobs are more plentiful, people are coming off these welfare rolls and so forth and taking jobs. i think we haven't yet seen the impact on wages that we eventually will see. i think there'll be a a rate hike in december. ashley: go ahead, cheryl. >> i have to say this whole discussion about interest rates and inflation is so passÉ. it doesn't matter we don't have inflation. as long as you don't have deflation. it is long since time the fed needs to normalize policies and ballad sheets and get less interest rate. nothing to do with inflation. if we wait on inflation, it will be another 10 years. >> i think that's totally right. one thing that's essential we've never had a $4.5 trillion said alan chi. no one knows what the impact of that has been or what it's going to be a sister to u

janet yellen and about the trump held a meeting on july 17. this according to yellen's public schedule. eight days after that, the president told "the wall street journal" that yellen was in the running for a second term. janet yellen declining comment on if she would like to stay in the job and while donald trump has not said anything publicly signal he has sided against what bloomberg expects, to pick someone else. we have the implications and where the fed goes next. steven major is still with us. do you pay attention to this stuff, in terms of your thinking? yellengot janet potentially going, fisher potentially going, a bunch of other opportunities to place -- replace people on the fed. how important are the people, the unknowable aspect of people's decision-making in how you are thinking? stephen: unknowable and uninvestible. i guess we worry about personality shift, that is the current one which is why we focus on that. what was happening at the start of this year when i was in a our chief with economist, we floated the idea that maybe m

that is the room fed chair janet yellen will be meeting shortly. she begins the news conference at the bottom of the hour. this is bloomberg. ♪ scarlet: welcome back. we are for janet yellen to take to the podium in 15 minutes time. jeffreyh us is rosenberg fixed income strategist and in chicago, founder and ceo -- >> what a joy it is to have the interviews we have. with thearticular joy former governor of bank of england. michael mckee reddit cover to cover. here is governor k on forward guidance. a clearu don't have understanding of where you are to speak so unwise much. none of us know what the future holds. >> remarkably candid this morning. any punches.ull he is very abrupt. >> they are not trying to lead the market. these are just their view of what the appropriate rate would for any particular status of the economy and with all the changes coming to the fed next year, does the market think there is funding? imagine herer -- trying to smoke a pipe. things have changed over the years. where are we in our dialogue and transparency at sign --

anna: what do you think is motivating janet yellen? ,f she more concerned about when you listen to what she is saying kamaishi rate -- concerned about reappointment or legacy or rising above all of that? guest: there is a lot of ifs and butts in her speech and there is enough for market doves and hawks to clean onto. we emphasize the keyword which was uncertainty. fed an innocent bystander, a watcher to is -- what is going on. manus: you mentioned doves. we will take you to the left-hand side and we're talking about the vacant seats that we have on the fed. there is this debate that the fed is an+++ the moment, it is bereft of one jeopardy. those people who have been there a while, there is less of them created can count the weeks that they have 10 year than months and years and it could move to a rules-based federal reserve. what would that mean for the market? guest: if we saw a shift to the rules-based system given what the president was saying about preference for lower interest rates it doesn't make sense to suggest interest rates

if janet yellen is not appointed, does the market care? >> i don't think so, scott. >> that's what this conversation boils down to, and here's why. >> in the last ten years, or since ben bernanke has come on board, the committee has moved towards more consensus opinions. there's differing opinions on any decision not like the volcker or greenspan years where it was a heavy-handed chairman and i don't think that genie goes back in the bottle >> you don't think the known versus the unknown. >> i don't think it matters that much. >> in terms of how easy policy has been. >> i think it's a committee decision more now than ever. >> hold on. >> go ahead. >> you want to react to that comment? >> i think there's two competing ideas for the president. one is that he's a guy who wants to put his stamp on it and saying i'm going with janet yellen is that right what he said, it's more of a consensus -- >> that's the way the fed has operated it was sort of determined that the way that alan greenspan ran the fed was not the optimal way to do monetary pol

janet yellen talked about regulation. when we talk about what the president wants in a fed chair, is that were balls? with has a big impact in is going to be. composition favor of less regulation. how far in that direction do they go? david: it strikes me that we will have all of these confirmations in the senate when there is huge partisan green. is there a danger with this president that the fed will become more foolish? absolutely, that is one of the key risks we have. there is such a backlog of things they need to do and there is this looming stimulus. you can see that with the uncertainty in the is worthy conflict index or some of the indicators the track when or not monetary policy is predict. the combination of those things, with there moves natural disasters we have right now. the overall backdrop is there is a lot of uncertainty from the u.s. economically. we have a very overvalued dollar and it is starting to play down that discount. the more impact we have the fed and the outlook with more uncertainty, that's g

tom: nothing sophisticated about it and janet yellen has academic chops as we see from vice-chairman stanley fischer and they have a different set of history and generation and front rate economists they even the most conservative type would agree with. what i would suggest is it is a changing, he is 73. again, it cannot be repeated enough, a phd advisor for draghi , there's a meeting in frankfurt and a guy named bernanke. he has been incredibly vital for a long time. it is a real significant generational moment. michael: it is but most of the people who come to the fed has been around for a while. it may make it harder to appoint somebody not an economist because you do not have that person to steer them through the first months of the administration and a stanley fischer probably would have left in june. one more thing of the monetary side we should note, he was vice chairman of the board of governors and not vice chair of the open market committee, that is a separate job and by rule, it goes to the new york fed affectnt and does not the actual monetary process. julie: i see you ha

yellen came out and said the phillips curve is alive and well. and interesting thread study came out not that we needed another one on this matter because the filter is already been disproved about a half a dozen times already have i'm not mistaken some people even won a nobel prize for despair. some of these economic models and she's out here praising these things the central banks believe what they want to believe to get their message across wherever else it is and. it's it's really tiring here max that created these bubbles they don't even see the bubbles that they have created yet they are clear and obvious just as the housing bubble is clear and obvious when it turns out no max i don't know. but i think you are saying is a bit of an illusion going on here now a topic you've been covering for a few years now i think you are the first in the blogosphere to really take your sink your teeth into this topic as to the robots when all the truck drivers and all the minimum wage workers are replaced by robots g.d.p. could bloom in actually so booming

how much effective tightening occurs because of it ok let's talk about that seat janet yellen mainstream media seems to like her they seem to want her to be in line i think this is her job fair taking it appears to be i tell you i'm no conspiracy theorist at all but i was flabbergasted at the amount of obvious leaking to the media before this meeting and yes there's definitely a little bit of quid pro quo going on because all of mainstream media is on bended knee praying at night that trump keeps yellin because she's a no known. right you and i both saw well some of the wires a lot of the editorials of the information coming out if we see. the raise in their benchmark index that the fed uses over two percent they're talking about a three. times three in two thousand and eight maybe more in two thousand and nineteen what do you say to that if they stick to the same index. again lindsey we've spoken about this before i don't put too much credence in any economist forecasts especially where we are in the cycle but the implication of three more rate hikes in two thousand and eight is that th