washington as both countries impose tariffs on an additional $16 billion on one another. are we there yet? bankersspeaking as gather and jackson hole. alibaba comes up shirt. eps less than expected. revenue growing on pace. welcome to "bloomberg daybreak." . am david westin alix steel is off. alibaba short on earnings. 61% as thenue company's investments, which took down its bottom line, started to pay off. 804 yuan. the shares took a sharp leg down. now recovering.

we will talk more about it. back, they looking revenue.billion yuan last quarter it was 50 billion. most american companies, that is pretty good news. julie: especially for a company of alibaba's size. some of the other markets, s&p range, as ouright markets globally this morning. an enormousseen amount of movements among major markets. so a tight trading range. not to currencies. the bank of russia has halted purchases currency as part of , trying torule increase the predictability of actions by monetary authorities. this could signal a rate action

at some point in the future from the bank of russia. we also have movement in the south african rand after donald aump inserted himself into debate about land repatriation from white landowners in south africa, a legacy of apartheid. the dollar rising against the rand. 15% versus then dollar this sheer. ahead of jackson hole and after two-yearesterday, a yield little changed at 2.6%. a.m., the7:30 european central bank releases minutes of its july meeting. at 10:00, u.s. new home sales. and trade officials are in china about resolving those trade re are an the

additional tariffs. were joined by marty schenker, bloomberg chief content officer, and rachel evans. let's stay on this trade discussion. buts hard to keep track, the yellow went into effect in july, the orange just yesterday, and now we are talking about another $200 billion. is there hope they will come to agreement? >> this global tariff regime to decades to put into place. you will not solve this problem in weeks or months. these this cautions are low level. u.s. administration has not figured out how it wants to , so itnt these tariffs

is difficult to negotiate when you don't know what you are asking for. does president trump want to get it solved before the midterms? you can over interpret what his strategy is. i believe he can come out and say a deal is great for america. after the midterms, it doesn't matter to him. julie: it doesn't seem to matter to the markets, at least thus far. >> the markets have been indian to all the talk about trade and tariffs. the reality is we have seen the market has sort of reacted blasé.

wilbur ross sang now is not a bad time for a slugfest in terms of having that trade war with china and trying to push them seems the, so it trump administration is up for a fight on this one. in that respect, i would not expect to see anything coming through from these talks. david: we will put up the pictures. they don't have this at the top level here. they are in no big rush. trump saidd donald don't expect breakthroughs any time soon. he is in this for a long fight. to your point about the midterms, the republicans would like to say we are being tough on trade. whether that resonates at a local level, that remains to be seen. as long as the economy is doing well and employment is up, they are in good shape. are watchingies

it, but not necessarily making decisions yet, but the headline is the fomc said further gradual increases will be consistent with a sustained expansion of economic activity, strong labor market conditions, and inflation near the symmetric 2% objective over the medium term. in other words, we will keep , is what least for now the fed is communicating. does this emphasize the independence of the fed when they are saying we will keep it going. >> it does. all the analysts said despite donald trump banging the table that rates should be kept low, the fed is an independent agency feels he canwell absorb that input and continue on the path. david: the economy is still growing. >> the fed's outlook seems to be

positive. it did mention trade and tariff fears weighing on the economy longer-term, but on the whole we have a positive reflection on the economic outlook. there is more talk about the neutral rate and whether we are starting to approach that. it will be interesting to see if we get comments at jackson hole. then when we get to september if we get comments on the rate and whether the fed lance to keep tightening. julie: we can look at the probability of it inc. priced in. the probability of it inc. priced in, hikes versus what we will see next year. we have seen over the short-term and uptick in expectations for two more hikes this year. the me, it did not seem there

was anything radical in those fed minutes. anything we didn't know already, that it seems perceptions are changing a little bit. >> i think it is the market putting their faith in jerome fed, their independence and ability to negotiate their way into a normal and just rate environment. david: we are going to hear later on this program. stay with "bloomberg daybreak." coming up, a conversation with esther george. now our third story is alibaba. we have put their earnings up. they had a miss on earnings-per-share and came in with revenue. say about tech more broadly in china? alibaba is a huge company still growing fast despite the

earnings miss. is a reassuring sign for investors. we are now up more than 3%. we had tencent miss on its earnings. tech complexinese get hit five that. this is a reassurance that $.10 troubles don't go farther than that. the earnings show the investments in video streaming, food delivery, cloud computing is paying off. still 93% year on year growth and cloud computing. , 24 milliongrowth active annual customers. million mobile users, 634 million there.

the size is incredible. their,tech here versus if you look at the valuations. we have a chart of this on the bloomberg. ,ecause of the selloff in china we have seen tech get cheaper there. >> investors agree with you there is an element of they want to take advantage of. it says something about the chinese economy. alibaba is growing leaps and bounds. it is also reassuring from a macro standpoint. david: not necessarily for the united states. they would like it to slow down. thank you. you can find all the charts we just used and more bite running terminal and ar

browse recent features and a safe our charts. coming up, the fed's morning about trade as tariffs come into effect and trade talks resume in washington. wells fargo investment institute global equity and technical strategists will be joining us next. this is bloomberg. ♪ xt. this is bloomberg. ♪

>> this is "bloomberg daybreak."

your bloomberg business flash. ryanair higher today, reaching a labor agreement with its irish pilots. the keyment is seen as to settling a wider dispute in europe that has disrupted summer travel. insists it is committed to taking the state oil business public, but an ipo will take place at a time when conditions are optimum. the public offering has been put on hold while the company buys a strategic stake in saudi-based industries. facebook says it has suspended 400 apps in a data scandal. it was over concerns of how the information people chose to share with the app were used. this month, a political consulting firm obtained data on 85 million american people

through an app. last: the fed had trade month with the minutes reporting "a number of disciplines indicated most participants had not yet cut back capital expenditures or hiring, but might do so if trade tensions were not resolved soon. we welcome now sameer samana joining us from st. louis. we will put up a chart here, particularly with respect to china. to what extent are markets taking this into account? >> they are not. they are going along with the narrative that this is political, the midterms, maybe it shows the president is tough on china. we think it results eventually in a favorable way. julie: in the meantime, do we

or some of that indecision watching on the part of ceos translate into market effects? we have seen examples of some companies, harley davidson being one of them. do we just see it in pockets, or does it end up being inflationary and affecting the economy in a bigger way? >> that is probably our biggest indicator, consumer confidence, business confidence, investor confidence and you try to figure out when it becomes a bigger deal. it does remain constrained to a handful of companies. again, we are not there yet, but that is something to watch. david: what about investor confidence? this chart shows we are in this

record bull market, investor sentiment is on the decline. what is accounting for that? >> there are many sentiment measurements and it is difficult to put them together to get one signal from the noise. there are some down, some doing well. i would say take a look at where markets are. we are close to 2860. if you look at positioning, it is not as negative as it was in february. are,: speaking of where we the s&p 500 near record highs, surpassed its intraday high yesterday. are seeing well above the moving averages. you have been watching the technical levels and moving averages on the s&p 500. seenct to the date we have

, what is that telling you about this trading environment? ofthat there are a lot people looking to get into these markets. intraday was your low, and people come back into by it. -- buy it. as you get close to that psychological barrier, you are also seeing selling. you have this tug-of-war between the bulls and the bears. you have to give the benefit of the doubt to the bowls. the russell 2000 has broken out to new highs. they are already doing well. julie: what does that tell us about who is trading this market? retail participation versus institutional and trader participation, and how does that affect where we go from here? tend to be an

institutional market. it is more the retail investor cautious about trade, where as the institutional investor is taking a wait and see approach. they are playing those trends, but they are cautious. if trends breakdown, you could see money come out of the markets. david: take me through the earnings reports and how they relate to the market. morecoming off a 24% or above expectations. that can't continue. whatat comes down to 10%, does that do to the market? >> the market takes it in stride. it has no expectations of tax reform repeating itself. it is possible, but we will not see a cut to the rate again.

it is improbable. the market takes it in stride. good analysts are building it into our numbers. you have revenue growth in the high single digits. ,dp on a nominal basis at 6% but revenues at 9% to 10%. that is powerful. they can take that economic growth and accrue to the top line. julie: all this sounds like full steam ahead. are there any risks you are concerned about. >> the market is overbought short term. you're heading into a seasonally weak time. coheave midterms, the n-manafort issue, markets at all time highs, so short-term, we would view a setback as an opportunity to buy. how does the fed play

into all this, the balance ,heet, removal of accommodation some investors have raised red flags about that, but that has allowed the expansion we have seen. >> it starts to create greater dispersion. rising tide that has lifted all boats. if you look at telecom, real allte, utilities, staples, the sectors have not done as well as cyclical areas. as central bankers joined the fed, you will see greater dispersion and you will be more selective. a few years ago, you could be stock centric and get away with it. julie: thank you so much. sameer samana at the wells fargo investment institute. appreciated. alibaba shares now rising despite reporting and earnings miss. it did have a 61% increase in

revenue. we will discuss. this is bloomberg. ♪

julie: alibaba higher in premarket trading. miss,nue miss, earnings but revenue and line, rising 61%. shelley, it is good to see you. talk to us about this balance between earnings and revenue. it is spending more. it is starting to pay off. thedo you interpret earnings miss versus the increase in revenue? >> this is generally a good earnings report. revenue, in line with but 61% growth from last year. that is what people will be counting on. due to a bigostly valuation gain for one of their

subsidiaries, ant financial. stripping that out, earnings were in line with expect haitians and what -- with expectations. hit.ba is still taking a david: it has been under pressure because of macro concerns about china. is the alibaba stock a circuit for what china is doing? >> that is that thing people will be watching. tencentw last week with , people are wondering if that is the greater china tech industry, and will that extend to the global tech industry. that thingsshows are going well for alibaba. they continue to have good revenue numbers and people are

buying stuff on alibaba. it is reflecting this change in business for companies that have conquered the online world, but are now trying to conquer the online -- off-line world. that takes more money. minutesoming up, fomc show a september rate hike is all but certain, but how many hikes are on the way. our interview with esther george next, as well as jackson hole. life from new york. this is bloomberg. ♪ xfinity mobile is a new wireless network

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included with your internet. plus, get $300 back when you buy a new smartphone. xfinity mobile. it's simple. easy. awesome. click, call or visit a store today. julie: this is "bloomberg daybreak." i am julie hyman. across assets. recipe futures trading in a tight range. markets across the globe and --

s&p futures trading in a tight range. markets across the globe not seen much movement, perhaps waiting for more clarity from the fed at jackson hole. the dollar is rising following -- the dow is rising following the fed minutes. the fed emphasized it is on track for one or two more interest rate increases this year. we have a pullback in oil prices after the recent rally. copper prices, as well, trading lower by almost 1%. i believe we have the ecb limits -- minutes that are just coming out. anything stand out? david: they are satisfied the markets are aligned with rate outlook, that they see trade protectionism as a key economic risk. but they are satisfied that they are on the right path. julie: they did not mention england. it did not appear in the account of the discussions. interesting because you and i have been talking about it.

seems investors are watching it. david: nothing in their notes here. julie, i am, surprised they do not talk about it. there was all the talk of the budget and a populist government will talk about it more than the ecb, but it says they avoided that. julie: not seeing much reaction. the euro had taken a little bit of a leg up going into this but is little changed here. not many surprises for investors in these ecb minutes as they come out. it usually takes a little bit of time. when you see sort of study as she goes here -- david: exactly, nothing going on here. ok, let's turn back to the fed. the fed rate hike in september is pretty much a sure thing, but fed minutes of yesterday raised questions about what comes after that. set down with

kansas city fed president esther george, a longtime hockey, and jackson hole, and she said two more hikes would make sense this year. >> i agree the economy is doing well, and based on what i see today, i think too poor -- i think two more rate hikes this it would be appropriate. that is not a commitment. at each meeting, you have to assess the data and what you are hearing from your constituents. hopefully everything holds together as we get to the end of the year. >> is that a strong consensus? >> i think if you look at the puts out,he committee read the minutes, read the statement, it would suggest that there is a degree of consensus around the state of the economy. but, obviously, within that committee, you are going to get differences on how many rate hikes are appropriate at this stage. kathleen: earlier you were worried about the pace of growth and inflation and the concern

that the fed might have to move faster. is that what you are thinking now or do you think this will have to pick up even more into 2019? i based on what we see today, do not think the performance of the economy and the way inflation has performed is an argument for fundamentally changing the course. but i think an upside risk would be that we have fiscal policy happening when we have accommodative monetary policy, so we have to that risk and see how it unfolds. tensile ratee you hikes for 2019 yet? >> i am obligated to, but whether those will come about, it is always hard. i can see maybe the next quarter, next two. looking at a 2019 will be a function as to whether this economy continues to perform. kathleen: [indiscernible] >> i could see getting back to a 3% neutral rate.

it would suggest we need to make several lives next year, too. you raised am glad the question of the neutral rate, because there seems to be an interesting discussion within the fomc now, not just about where the neutral rate is but how you use it. you get to neutral and stop? or do you go a bit further and make sure there is not an inflation issue? >> a big challenge for the committee. i call it threading the needle, which is we have arrived at a point where it will be a poor and to judge whether our policy is restrictive or still accommodative. that will be a function of looking at the data increasingly. that is what makes it hard. this is not an observable benchmark. if we could see it, then we could be more clear about where that is. the consensus view, the median for you, and that forecasters see people closely -- people coalescing around 2.5% to 3%. we have to be can't just of that

and see how in-flight -- we have to be conscious of that. : so when you get to 3%, ready to pause and see what happens? >> i do not even know if there will be 3%. we should always evaluate the economy. meetingit a meeting-by- approach. david: that was part of bloomberg's interview with esther george, kansas city fed president. now we go live to jackson hole. our colleague mike mckee is out there. we cannot see the grand teton's you, but we will imagine it. it is dark out there. do the of the fed governors agree with esther george, you think? terms, yes, the idea of a neutral it is hard to pin down. ,hey look at the 10-year yield

and subtract inflation, and you can it an idea where they think it might be. but they are going to take the time ago gradually because they are afraid that they could upset the apple cart by tightening too fast. they are worried that if the fed moves to quickly, you will have the traditional result were the economy slows down because credit creation slows. it will be slow and gradual process. i think esther george is normally a hawk, and she is committed to four rate hikes this year, but how many would actually get will depend, as she said, on the data and whether other people are convinced. david: pretty much september is baked in. over 90% probability. i have a chart the talks about december and next march. the white line is about a 62% hike in december. esther george thinks there will be, but it is only a 60% -- only

a 62% likelihood. it is 50/50 in march. some have said we may have to slow down here some. mike: we will be talking with rob kaplan about this tomorrow on bloomberg television, so we will get updated feelings on that. the fed funds predictions are about as useful as the polls that showed hillary clinton with a big victory over donald trump in 2016. what is happening right now, and -- and they tell you what is happening right now but not what will happen in december. we will get a lot of data between now and then. but the staff sees the strength we saw in the second quarter continuing. some economists and fed officials said they thought maybe that was the peak of growth and that we might slow down the rest of the year. so if we continue very strong see that fedould funds rate prediction go up. if, on the other hand, we see a

slowdown, in might hold or go down a little bit it so you have to because his. julie: mike, talk to us about jackson hole. technically, the meeting is about changing market structure, so not about that policy. but having been there a number of times, i know you know how these things run. what are we likely to get out of it? could interesting things come out of some of the side conversations? mike: well, maybe. in general, these people talk to each other all the time. i am not expecting a lot in the side conversations among fed officials or from the official topic of the conference. it is interesting and has an arm's implications for markets of the monetary policy going forward but not anything to do with whether we get a raise rates for the fourth time this year. do you might be made as if jay powell says anything to guide people, and we have not

had a chairman do that since ben bernanke in 2010 or in interviews we do or the other networks do with fed officials who jackson hole. it is a good chance to really take the temperature of what everybody is thinking all at once. david: great to see you out there, and we will see you even more. mike mckee, jackson hole. tomorrow, more interviews fed presidents of st. louis, cleveland, dallas, and atlanta. right now, let's turn to kailey leinz for first word news. china have u.s. and imposed a new tariffs on each other's goods just as the two sides resumed trade talks. taxes levied on $16 billion in products. the u.s. targeting chinese-made motorcycles and railroad cars. china slept duties on american coal, medical instruments, and cars. meanwhile, president trump is making it tougher his administration to close the deal on a new north american free

trade agreement. bloomberg learned that the threat to punish carmakers who produce vehicles outside the u.s. are stumbling block. the u.s. wants to be his tariffs on car supported from mexico that do not meet new content rules. and president trump says there is a great reason why congress not impeach him. he explained why in an interview with fox news. president trump: if i ever got impeached, i think the market would crash. i think everybody would be very poor. because without this thinking, you would see numbers that you would not believe. news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. david: thank you. picking up on what president trump said about the market crushing, you had a great question, julie. if you go back to president nixon, who was not and aged but didn't -- did resign, the market

actually did go down d.avid: i did -- did go down a mother there were a lot of things going on. julie: that was one of a number of factors. you had oil prices and inflation and a lot of other factors. you look at the clinton situation, whereas he was impeached by one of the houses of congress, and the markets were actually going up. we were in an economic expansion. is the impeachment, if and when it ever happens, now or ever, you cannot really take it in isolation. you have to look at the economic backdrop to a exactly, and those two bookcases bring -- and those two cases bring home the point. the two could be linked, but they ultimately say, where is the money? julie: they got the tax cuts already. will this avoid a tariff five, for example, if something like

that were to happen? who knows. there are a lot of questions. david: coming up, what is a board to do when the ceo is doing more harm than good? we speak to former american apparel board member dan dancing or next about elon musk's role at tesla. this is bloomberg. ♪

kailey: this is "bloomberg daybreak." i am kailey leinz spirit coming up, tom hayes, tyson foods president and ceo. david: elon musk a corporate governance. going when he tweeted about having financing lined up to take as a private,

and then he given interview suggesting to some that he may be feeling the pressure. next, we have some who sat on ae board that had to question powerful ceo. david danziger was on the board of american apparel when it at a power -- controversial ceo. he is now senior vice president of the fifth-largest accounting firm in canada. he has held numerous board positions and has assisted into nejra plans. david -- and turnaround plans. things come up about your ceo that raises questions, particularly a very powerful ceo, what do you do? >> the first thing you have to do is get together with your board members and see if there plot around the next steps. i think that the first thing that you want to do is engage

who have had a lot of experience with this sort of thing, because you need to make sure that the things that are being talked about in the public -- you have sort of concrete evidence before you make a move to do anything at all. most board members just you not have experience with this. they are not readily experienced with that here and it generally does not happen all that often. , probably the first thing that you want to pick to guide you through what are definitely going to be very stormy waters heading through the process. you need tou know, conduct a bit of an investigation to find out what the real facts are behind all the press that is going on out people arehatever

talking about and saying. you really have to separate the truth from the fiction and make a determination as to what has occurred. i guess during the process you need to dig a very strong 's employmenterson contract. they are all different and have different details and nuances and different sorts of transgressions for which you can take action, whether that be suspension or removal, termination, whatever the case may be. -- anddavid, shy of that your case, when talking about the american apparel founder, the behavior in question was perhaps a little more clear-cut. the investigation was all said and done. in a case where it is not necessarily as clear, are there things you can do short of a removal -- and other words, what

kind of pressure can the board bring to bear behind the scenes to get a ceo to change his or her behavior? >> very good question. on really what it is, and again, you have to look very carefully at what your options -- legally in the context of whatever agreement has been signed with that ceo or senior person. they generally do call for whatever penalties or provisions might be available to the board in such cases, whether that becomes the threat of a suspension or the threat of otherl under circumstances, you may need to use that to apply pressure to the ceo to either change the behavior or to do something to fix what has happened in the past. if there has been an sec

and it actually occurred, it is not really within the power of that board to forgive and forget that, if you will. that is something that is going to have to be dealt with. david: david, it is hard enough to deal with hr problems privately. and ave a public company big ceo, how much harder is it? when do you disclose to the public about what is going on between the board and the ceo? how fast do have to move? it is hard to get rid of somebody or reform somebody behind the scenes, and when you're in the public eye, it is much harder. >> no question about it. again, just not having the experience, board members not having the experience ever doing this before, they need to have a very good understanding of when something is publicly disposable. generally, you are not going to

disclose something until you have determined that it is true. you need to do some pretty good advice from professionals as to what your obligations are in terms of disclosures to the public. becomes a very, very difficult and stressful time for the board to be working under and with of scrutiny everybody calling and asking questions, and you may not have anything to say to them for some until you have properly investigated what has occurred and what needs to be done. julie: quickly, what about alliances? people who are appointed to a board are close to a ceo typically. >> look, that is very true. it happens all the time. know, i think most wherever they have

come from, they ultimately want to do the right thing. breach theirnt to fiduciary duty to shareholders because that is who they are ultimately responsible for and to. it does take some time. people sometimes have to do a lot of soul-searching. down to, ultimately, discussions with the party and the person, trying to engage them into doing the right thing before you have to take some sort of alternative, more strict action. it is difficult. differenterent people amounts of time to come around to it. generally speaking, most people ultimately want to execute on their duty. the right get advisors to help you through that process so that every director really does clearly understand what their obligations and duties are and who those duties are to.

david: that his former american apparel board member david danziger joining us by telephone. julia: we turn to wall street each, three things the wall street is buzzing about. kkr takes the drivers seat, in talks to purchase fiat chrysler's car parts business. and bitcoin exchange traded sale. s.e.c. shooting done pitches for etf ties. and ip-no. saudi aramco puts the ipo on hold when buying a stake in a petro giant instead. david: let's go to jason kelly, bloomberg's new york your chief. jason: this is an interesting deal. the size is about $7 billion. 6 billion euros. this is a carveout, classic private equity playbook. i have been talking to a few

people around the private equity industry, and they have been saying these are the times when you start to see this type of deal. carveout is big companies looking to get rid of maybe an underperforming business. david: a new ceo, very young. jason: these are the sorts of situations were private equity larts to leak it stops -- to ick it's chops. it makes a lot of sense they might be putting these things together. maybe lookingt, to do stuff. to be clear, before the entirely death of the former ceo did mention that they would sell for a big check. jade end that coin, the sec rejected another round of attempts to have an etf, this time from pro shares, granite shares, and direction on concern

that prices could be vulnerable. bitcoin cannot get a break, especially from the sec. turnedi know, i should his back to you, the daily etf report, the expert. bitcoin is down, i believe, 50% this year. it is amazing to think toward the beginning of the year and all the fervor. the newsroom was just a buzz with people talking about the ceiling and people getting into it. now the sec has been pretty consistently saying we're not going to do this, and not because they do not think cryptocurrency is a bad idea, they just cannot get assurances that it will not be men the belated and there is not room for fraud here. reports onthe hacking. julie: that is part of the issue, maybe belay should, hacking, counterparty risks. when we had the launch of bitcoin futures late last year, there was all this enthusiasm that it would become more

institutional, more acceptable, and we do get drips and drabs of news from the likes of goldman sachs that they are getting more into the business, but the new get these big setbacks, as well. is not becoming more institutional. jason: and while the price of bitcoin did go down pretty are medically when the brothers were not allowed to do their etf. there is not a lot of surprise. david: the third story is a big one, aramco. the news broke yesterday breathlessly that saudi aramco were not going to go on the ipo. then it turns out, maybe that was a little premature, a little over a ported. the saudi energy integer -- minister says it will do so at a time of its own choosing. so now we're going to take a beat companies -- because we might want to get into the chemical company. they will get in part

what they want, which is the big sovereign wealth fund still getting some of its money. this is a different approach of the saudi's apparently are taking in order to make sure that they are diversifying their economy. julie: we going to talk more about aramco. commodities as" " later today and we will be talking about aramco and the implications for oil. that is every thursday at 1:00 p.m. eastern. david: looking forward to that. thank you to jason kelly or do you can catch them every day on bloomberg radio from 2:00 to 5:00 eastern time. an exclusive with tom hayes, tyson foods president. this is bloomberg. ♪ this isn't just any moving day.

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simple. easy. awesome. stay connected while you move with the best wifi experience and two-hour appointment windows. click, call or visit a store today. david: talking about trade,

chinese and american trade officials made today in washington, even as both countries impose tariffs on an additional $16 billion in imports from one another. and fed minutes pointer for the rate increases but suggest they are approaching that normal they have been searching for. central bankers gather and jackson hole. and as more tariffs going to affect on chinese products, we will talk to the ceo of a leading u.s. food company caught in the crossfire. welcome to "bloomberg daybreak." thursday, august 23. i am david westin. happy to be right here with julie hyman. alix steel is often at we are going to talk with tom hayes. julie: i am excited about the conversation. it should be really interesting. meantime, watching markets here, which are in a pretty tight trading range. the s&p futures are doing much of anything this morning. we saw the same globally overnight and into this morning. bit.stoxx 50 up just a

euro moving a little down. the got the ecb minutes 30 minutes ago, and the ecb is saying we have done a good job communicating with the markets, which is interesting. we were both struck by the fact that italy not mentioned in the minutes, even though that is a risk factor that many investors are watching. we continue to watch the south african rand, which is falling again this morning versus the u.s. dollar. the latest leg downward prompted by a tweet from president trump, who basically raised concerns that land repatriation in country is a reaction to apartheid. this is been an ongoing debate and south africa. now the president inserted himself into it, asking mike pompeo to look into it. and the 2-year after the minutes not much from the fed, changed, a tiny bit of selling,

2.6%. david: now a look at what is going on outside the business world. china have u.s. and imposed new tariffs on each other's goods just as they resume trade talks. taxes are being levied on $16 billion of products. u.s. is targeting chinese motorcycles and roller cars. puttingtaliated by duties on american coal, medical instruments, and cars. meanwhile, president trump is making it tougher his administration to close the deal on a new north american free trade agreement. the president's threats to punish carmakers to produce outside the u.s. are stumbling block. the u.s. wants to boost tariffs on cars imported from mexico they do not meet stricter new content rules. and the u.k. is warning that a no deal brexit would raise prices for european goods and make life difficult for retirees. 25 technical notes were

published on how the country should prepare for the possibility of talks with the eu collapsing. one problem, british retirees living in a you countries could lose access to u.k. bank accounts. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. julie: thanks. the minutes released yesterday from the july 31-august one meeting left little doubt that the chairman plans to raise the rate , saying the stance and monetary policy remains accommodative. carmel us from denver is wellso, director of research and portfolio manager of janus capital management. we get this idea that perhaps we're getting to a point where things are no longer accommodative. the fed has been telegraphing this all along. as thee the implications

fed continues on this trajectory? >> you know, i have to stick with the points i have made before when i have been on, and that is that we will continue to see increases in rates. it will be steady. we still think it will be three of 2019, ande end the markets are able to absorb that. the yield curve has flattened. but when we see the 2-year basically unchanged after the announcement, people are expecting a recession but not in the near term. all the cinnamon indicators support that. -- all the sentiment indicators support that. housing continues to be strong. we continue to see consumer sentiment strong. all of that, to me, points to continued health in the stock market. my only concerns about this recent high is it has been so narrow. two out of eight of the sectors

actually hit new highs. we have less than 10% of the stocks hitting new highs. i think we will continue to have a lot of volatility but the general direction will be up. david: is it a question of how gradually it is done? there has been an enormous injection of liquidity in the market in the u.s. and around the world. that is coming off slowly. doesn't that affect equity valuations? >> you know what, it does, but we have really strong growth. we have the majority of companies surprise on the upside in the last set of earnings. you continue to see estimates increase. the u.s. is in a very strong position, and i believe estimates will continue to have that beat and raise kind of structure. same time, is your job going to get harder? we have seen realized correlations go down, and i am showing that on the bloomberg,

the s&p one-month correlation. so stocks are trending towards a lower lockstep move. does that mean it is more difficult for investors to outperform here, as we see that dispersion increase? >> you know, you could say that. correlations are seldom good for active investors. we have seen a lot of volatility. remember, if we look at the stoxx, only 10% or a little bit less have hit new highs. well, are picking stocks you can still make a lot of money in this market. david: i am putting up a chart. we have this long bull run, setting new records. the 1990's are the blue line. the white line is what we're doing now. it suggests that we are not bumping up against the highs from the past. .> i have heard these arguments as i said, it has been narrow. a lot of stocks of not participated.

if you look at the difference between small caps and large caps, the difference between value versus growth, there are big dispersions. i still believe we should be adding more on the value side of the equation. good yields and healthy growth, maybe not the big momentum stocks, but they still are going to be able to turn out a pretty healthy double-digit return through the end of 2019. julie: i am looking at the holdings in the research fund you manage. some of the top holdings are some of those big momentum stocks. you have your alphabet, amazon, microsoft, apple, so that does read like those stocks that have recently been hitting new highs, the big growth stocks. is that not where the next leg of upside is going to come from? >> is are some of our top positions. where have we been adding money?

it is to a number of stocks. we select like the chinese internet companies. if you look at tencent, we will get results shortly. they're interesting companies. there is news that there will be stricter controls on new gaming releases. we do not believe that is the case. there is simply a reorganization in the ministry that manages that. we will continue to see growth in that area. the other one has been hit by some numbers are disappointed the market, but we still think these companies, which are both done more than 15% from their peaks, are pretty interesting. we think that facebook here in the united states, down substantially from its peak, is very interesting in the longer term. momentummentioned stocks that have done well, but there are a lot of what that have not done well, and we looking at those names again to see if we should be shifting money into those names, as well

as some of this rally ideas. we always enjoy having you on. carmel wellso of janus henderson. coming up, the largest u.s. base tysont,, and trade war concerns. our exclusive interview with tom hayes, tyson foods president and ceo. that is next. this is bloomberg. ♪ hat is next. this is bloomberg. ♪

david: tyson foods hopes to change what you eat, looking approaching alternatives to your favorite animals. the cover story of last week's issue of bloomberg businessweek. the ceo, tom hayes, has brought about new goals by removing antibiotics and cutting greenhouse gases. tom joins us now. thank you so much for being here. good to see you in person after talking about you on air. >> great to be here today. beautiful day here in chicago. david: beautiful city. talk about your business overall. dashboard?your what will drive it to the upside and what will drive it to the downside? >> we are the largest food company, not just largest meat company, largest food company in the u.s. what thrives as is the consumer and certainly a lot of dynamics outside the u.s. with global demand. for us, it is the consumer in

the u.s., as well as things that are reallyng that hot in the business right now, and certainly trade is an issue we are dealing with. our overall business is really driven by the consumer, and that has never changed. david: let's talk about trade for a moment. are we overreacting to trade? important thing for everybody to understand is that the u.s. is so incredibly competitive when it relates to when there are issues that are creating uncertainty, that is not good for companies like tyson, certainly not good for us. we have make sure that we focus on getting to certainty. the uncertainty is what creates problems. when you have countries that are looking for feeding their people and having supply chains in place that they want to continue to maintain, any disruption to that creates turbulence. domestic protein is

important but experts are nearly as important in terms of making sure that our system is healthy. julie: we have a breakdown of your revenue by meat, by category. i know beef did well for u.s. quarter. we have seen lower beef prices some more demand for things like hamburgers. chicken has been a steady performer through the years. prepared foods, you have been increasing in that area. what is perhaps most affected by these tariffs is pork, the pink bar on this chart. what do you do to try to offset that and try and mitigate some of the effects of tariffs? you end up with a lot of pork on your hand that you cannot sell. >> great question. i will start by talking about the consumer. if we are going to continue to

keep our products in favor, we have to be focused on innovation. protein is a part of everybody's diet, at least 95% of consumers eat protein and animal protein. so getting that in new forms, forms the consumer wants, that meets the more they are. everybody has busy lives and want flexible alternatives, different types of protein that are fresh plate alternatives. we're focused on innovation. model isice about our needed move across beef, pork, chicken, prepared foods, and even now into alternative approaches. we are not just focused on one category in particular. i think that is what makes our company special, that we can move between those proteins he julie: with regards to tariffs and trade, what are you doing right now to try to ingest as that is unfolding? we are havingl, conversations with our elected officials, so we are very focused on driving the right conversations and that they

understand the impact for us and that it needs to be something that is dealt with adult with quickly. we want agreements to be settled. canada is our fifth largest trading partner. mexico is our number three in terms of export customers. sowant it to be settled, we're actively gauging to make sure everybody knows that. the other thing is we're looking at new markets. we are putting new sales offices in countries we have never been in before. we want to make sure we are looking at all the world in terms of where we can export to. as countries are creating new toationships, we are, too, make sure we're taking advantage of the entire world and our great supply in the u.s. david: talk about these alternative proteins. i think you said plant-based proteins. how real is that an house in my become? a lot of us are skeptical about

plant-based proteins instead of steak? is fantastic. most people love a wonderful steak. we want to make sure we follow the consumers. consumers are changing their eating habits a little bit. and if they are going to be introducing more plant-based proteins into their diets, we want to be in front of that trend. so we do focus on protein, not just meat. even though it is small today, it is growing at a fast percentage. so we want to be ahead of it, understand it, and take advantage of it with our fantastic market innovation resources. david: at 1.2 you think plate-based proteins will reduce 20% of the revenues -- at what point do you think plant-based proteins will produce 20% of the revenues at tyson? >> if the rapid pace of

expansion continues, it will be fairly quickly. 20% is a big number. we are a large company, $40 billion in sales, so it might take quite some time. but i do think these different types of proteins that consumers are trying to get into their diet will continue to advance. if you think about every consumer today that its protein, they are trying to introduce more and more into their diet actively, i think that is widely known. so whether it is animal-raised from plant-based sources, it will continue as it has for the last 60 years. julie: when it comes to raising meat -- i'd like a good juicy steak, as well, but i also know the guys who raises the meat and i buy from them. i am still in the minority in the united states, but there is attention being paid to how animals are raised. i know you guys have changed

some practices. of course, animal welfare groups want more for pork and practices. what is the back-and-forth like, and how important is that? >> it is very important to us. for the average consumer, they are no different than anybody that works at tyson foods. we want to make sure that we're doing things the right way. so there are new methods of production and new things we can do to become better, and we want to take that on. allianceeally what with our purpose. withe a large company heritage into gimp, but we're transforming into a modern food company. the opportunity is to continue to raise expectations for what we can do around the world as it relates to being the right producer. there are some things we know we have done in the past that are not relevant for the future, whether that is animal handling

or things that can be better or different, we want to attack that aggressively. david: tell us about the keystone acquisition and why that was strategically important, particularly with what you're talking about with plant-based or jeans. >> keystone is a wonderful opportunity. the mystically, -- domestically, it is a fantastic partner, and it helps us to continue to grow relationships with customers and be an innovation partner. secondly, maybe even more importantly, is the international platform. we have a very small international presence today outside of what we export. it provides is that platform to continue to grow the company in international markets. it is very excited from that perspective. the team is thoroughly enthused about making sure we continue to grow. that is one of our core strategies, of course. isinternational expansion

front of mind, and keystone is a wonderful acquisition to do that. julie: i want to ask about margins, something that is a challenge for many food companies in the u.s. right now because you have got freight , labor costs going up. so how is that affecting you all? are you able to pass on some of those costs? >> we are trying to pass those on, and it is difficult because nobody wants to pay more for anything. everybody is trying to make sure they maintain their cost structure low or even lower than it has been. andhat we're trying to do, i think we have been relatively successful, is make sure customers understand the value that we provide as a total supplier and that we move that into the marketplace. consumers will need to pay for costs that are increasing, that are real, and the driver shortage is created transportation increases, and that is a vector. -- that is a

factor. it goes back to the importance for making sure the products are relevant and that we are innovating. because if we are not, that makes it hard to pass those costs on. but that is absolutely something that we're focused on. it is our job to make sure we get that done. ovation isein and the key. tom hayes, the ceo of tyson foods -- protein innovation is key. kailey: ubs has tough words for tesla's model 3. we're told that it is disappointing for a $49,000 car. experts site quality issues. the banks is the model 3 scored below average on a so-called fit and finish audit. shares of ryanair are hired today. europe's biggest discount airline has reached a labor agreement with its protesting

irish pilots. it is key to settling a wider dispute in europe. shares of alibaba are higher in premarket trading. the only commerce giant reported the fastest pace of growth in more than four years. income fell due to the expense of shares awarded to its workers at its affiliate. that is your bloomberg business flash. david: thanks so much. staying on alibaba with ryan ben smith, vontobel quality growth portfolio manager, equity strategy. welcome. good to have you here -- brian bandsma. thank you. relief as these numbers can appear generally, no real big surprises in the numbers. the revenues were slightly ahead of expectations, earnings slightly below expectations. it is important as it shows the

health of the market and the health of consumer demand in china. in terms of the earnings impact in the numbers, i think it shows that a lot of it is discretionary in nature. alibaba investing for future growth. david: how much do you focus on plain old souls growth? year over year for the quarter was dramatic. >> a definitely reflects the health of the overall market, and i think there have been some concerns about across the internet space, about slowing markets in china. it adds a data point in terms of showing that the market is still very strong and healthy. consumer demand is still strong. with the amazon model, if you will, as an investor, you are ok with perhaps an earnings miss now and again if it is a matter of reinvesting in business and seeing that bear fruit on the growth side. >> which it to focus on companies that are capital

lights. a lot of incremental cash going to shareholders in not just driving revenue and growth -- incremental revenue and profit growth. the difference in terms of alibaba versus some of the other e-commerce models is, traditionally, alibaba's has been fairly capital light. a concern i watch going forward is alibaba has been shifting slightly more toward the amazon or jd.com type of model where they are spending money incrementally in terms of the ability and infrastructure, logistics distribution, breaking mortar, etc. david: how much of it is ricks and mortar retailing as -- how much of it is brick and mortar as opposed to the cloud? >> we definitely like the cloud.

david: so investment there, good. infrastructure, maybe not so good. of china andtext alibaba, it is a better story. one of the reasons why alibaba is able to gross of estes china is they are not necessarily competing against brick-and-mortar retail. even as they going to brick-and-mortar, it is still a theer story than say in developed market because brick-and-mortar is not that efficient. julie: brian bandsma is going to stick around. thank you. coming up, the u.s. and china hit each other with new tariffs. what does that mean for companies exposed to them? this is bloomberg. ♪

julie: this is "bloomberg daybreak." alix steel is off today. s&p futures or even flatter than before. a very tight range for futures

and markets globally. you have the dollar popping in the wake of the fed minutes in which the fed seeming to to raiseze its plans rates a couple more times this year. that appears to be the reaction. wewe see the dollar rise, see some of the rallies we have seen recently in commodities prices coming off. copper still down by about 1%. crude is little changed. we're watching individual movers. we were talking with the ceo of tyson foods. ismel is up with -- hormel out with earnings, and the revenue forecasts below estimates. another company reported after the close yesterday, and the company cut its profit forecast and the head of its pink brand will retire. ands.was for l br we have numbers for children's

place and williams-sonoma. second-quarter earnings at williams-sonoma beating the highest average analyst estimate. david: initial jobless games, 210,000, a little less than the survey, which was 250,000. continued strength in the job market -- which was 215,000. continued strength in the job market. kailey: day two of the latest on a trade talks between the u.s. and china. they will take place hours after each country imposed tariffs on $60 billion of the others goods. the u.s. placed duties on chinese made motor five -- motorcycles and really cars. china retaliated with tariffs on american medical instrument's, cars, and cope. the latest negotiations are not expected to result in much. in south africa, president trump entered the growing debate over rand. the president tweeted he asked the secretary of state, mike

pompeo, to study the south african rand. there is an ongoing debate about should beuth africa addressing inequalities. in australia, the prime minister is vowing to fight the latest attempt to replace him. turnbull says he will step aside only if his chief rival can prove he has enough support. the governing liberal already will hold its second leadership meeting this week tomorrow. australia have switched from ministers five times in a little more than a decade. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am kailey leinz. this is bloomberg. julie: thanks. top stories,f our resumption of u.s.-china trade talks. sort of a way at of measuring the stakes for the two measured -- nations. u.s. exports from china here and blue. china sells a lot of goods to the u.s.

u.s. exports to china in white. the red line here are tariffs already imposed. this is the total amount brought up as potentially being on the table. $200 billion of president trump has talked about. still with us is brian bandsma of vontobel. as someone who looks to invest in china, how much of a problem is this going to be, particularly when you look at the slowing economic backdrop? that china is is already starting to slow, and you can argue whether or not that is intentional by what xi jingping is trying to do in terms of reforming the economy and cleaning up the environment. having something institutional to create ahat headwind for economic growth is certainly something to be concerned about. what we're trying to do in terms of what we do across our

investments is trying to find businesses that are not necessarily emerging-market companies. they are great companies in emerging markets, and a lot of those businesses are more consumer-focused, more domestically-oriented. so we're looking at it from more of an investment standpoint, more in terms of what it might have an impact on in secondary levels. big pushina has had a on being more inter-directed, and that is really driving the consumer. that is a good place to invest for you. overweight china? it is it we are equal weight china on a broad basis, slightly over. david: china should be a growth opportunity. julie: and the stock market is going down this year. >> it is a factor. as valuations come off, it opens the opportunity for us to add. the opportunity but being underweight to china, you could add as prices come off

of that. we are building a portfolio and looking at specific stocks. we're looking at the opportunity and specific businesses. with the opening of the a-share market, that as to that opportunity. julie: turn to another country. you are looking for good companies in these emerging markets, but you have to consider the macro situation. nafta is another factor we have been watching. global currencies your today. asos has been a big outperformer in terms of currency. is this negotiations, an upside risk factor or downside risk factor? >> we have an overweight to mexico. julie: so you think there will be a positive outcome to the nafta negotiations? >> it is hard to say, but i think things are moving in the

right direction. we are buying companies that are domestically oriented. julie: and will not necessarily be hurt as much. >> the u.s. dollar basis certainly help spear david: with nafta, how do you put into the equation over door -- obrador coming in? of seehis point, we kind it as a positive. there is always a difference between what politicians say during the election cycle and what they do while in office. we have seen investors pulling out of markets. what do you think will continue to happen? the fed is seen as the big risk factor. then you start contagion for things like turkey and other crisis points around the globe. do think that updates to some extent. do you think it gets to the point where it is priced right given those risks?

six to ninelast months, earnings expectations for emerging markets have come off. earningsaybe expectations are probably more in the realm of reasonable. multiples have certainly come off of it as well. at this point, maybe the market is fairly valued, but there are concerns. the rising rate environment that we are in. that is not good for emerging markets. some are in a better position than others. post economic crisis, debt levels have gone up across the board, whether sovereign debt, corporate debt. household debt to that is coming to watch. julie: let me mention a couple of your holdings. the first one you brought to our attention, in addition to your largest holdings, is a company i am not going to attempt to pronounce, but it is a chinese

come did that produces a chinese liquor, one that is not one loan in the united states. what is appealing to you about this company? as china has opened up the a-share market, we have dipped our toe in. this is the first one we bought. , probablyrd liquor the second best brand in china. there is an aspirational -- it is an aspirational liquor, so if you are having a party and want whatpress people, that is you serve. it is a high gross margin business, maybe similar to vodka. very good gross margins. julie: is the investment thesis that it will grow within china or without you we were sent a

link explaining this liquor, and there is apparently a bar in new york city that focuses on it. apparently, it is quite an acquired taste for a western palate. david: it is pretty strong, really strong. bute: i have never had it, i heard one person say it tastes like sweaty socks. david: at the end of a long dinner in china, they will have it. it tastes like moonshine. julie: do you think there is an international deal here? >> i do not think the international market is really invert -- is really relevant. you leap up taiwan semiconductors is another one you are looking at. semis in the u.s. of done pretty well until recently. here, too, you get the trade factors that can cause working this. yness. cause murk in your of the chips

phones and computer devices, the company's dividing these are not making the chips. tsmc produces the application process for the iphone and all the chips for nvidia, most the chips for qualcomm. so there really a supplier to other companies. foundry.led a they basically focus on manufacturing the chips, and it is really in a space that there's really no competition. samsung is competing with them to some extent. a struggle for samsung to really tap that market. david: great to have you here. brian bandsma of vontobel. coming up, more on trade tensions.

republican representative tom reed of new york. this is bloomberg. ♪

kailey: this is "bloomberg daybreak." on kailey leinz. coming up later today, an exclusive interview with tom speier of next gen. david: trade is back on the agenda today as another $16 billion worth of goods from china get tariffs overnight. there could be another $200 billion worth of goods that might get tariffed. the chinese are negotiating in washington right now to try to resolve this. they go to new york and welcome

president -- representative tom reed of new york. under the constitution, congress is given some responsibility having to do with trade relations. is congress exercising the diligence it needs with respect to trade right now? >> we just took an additional step recently with legislation that retained authority of congress to set the trade policy clearly with congressional oversight. bottom line, with the president is doing is bringing disruptive trade policy to the table, and i am confident we will see asitive results of this, even soon as today or tomorrow, with regards to negotiations with mexico. david: we are hearing conflicting reports about that. do you think you may get an answer today or tomorrow on nafta that will be favorable? >> pressure is building, and the timeline is coming to a head shortly. mexico is giving indications of

wanting this nafta update done. that will put pressure on canada to finish their negotiations. we will all unite as a family to take on the trading issues that we need to take on, and that is the trading relationship with china. julie: there, there does not seem to be much progress. we have no officials meeting for both sides, but it does not seem as though discussions are advanced in any way at this point. >> i think that is accurate. at least they are talking. that is a positive sign. alignede get our family in regards to our relationships with canada, mexico, and the eu, i can and show you that table is going to be fully engaged with our interests being out there with the chinese partnership in regards to their interests. at the end of the day, it is about taking on china to get us to a fair level of trade with them. referred to the

family here, the north american family with europe in the mix. it does not seem like the president is on board with that family vibe, if you will. some of the sessions have been contentious. with canada, of course, with the rhetoric with europe. is a productive, do you think? toi think it is disruptive her that is the deceptive trade policy the administration clearly put on the table during the campaign and is bringing to the world today. you have to get peoples's attention who are used to status quo type of trade policy and relationships. with the president has done is disrupted that, and now folks are taking it seriously. that is why a think mexico comes to the table first and then we align the eu. we take on the trading partner we need to take on together, and that is china. you and 34 other representatives are up for reelection in november. peopleortant is trade to

in ithaca? >> it is very important to do -- to our district and we have high-tech manufacturers and agriculture. but people are forgetting is that president trump tapped into this silent voice of the rust belt, of that part of america that put him into the white house when every political pundit said they would not be with him. so this voices being heard, and they are willing to take on this disruptive effort. they want it resolved and want to bring stability back to the trade agenda. i think that is where we end up, especially with canada, mexico, and the eu. julie: disruption does not come without pain. meantime, there will be potential hits to places like in some cases iconic american manufacturers, as a result of this. how long can they put up with that kind of thing?

>> that is a fair input, a message i share with the administration quite often, that we are willing to see where this becaused of policy goes , in the long term, we are in a stronger position, but there are real impacts, real people impacted by this deceptive new policy shift. oft is why the $12 billion farm aid put on the table to stay with our agricultural community, other relief mechanisms of being considered with her guts to exemptions, those are -- considered with exceptions, those are hearing those voices. david: there is another subject you are involved in, the question of how representatives are treated with respect to outside business interests. you are proposing some reforms that without maybe congress already had but they don't. >> i am working across the aisle

with kathleen rice, a democratic member from new york. we saw a potential conflict in the house of representatives barcs rules that does not members from serving on corporate boards, so we thought we should have the senate rules that do have that bar in place of applied to the house. that is the proposal we are coming together to send a message to the american people, that we have a commitment to make sure they are trusting congress to strengthen, not weaken. this is something we can agree on to improve ethics laws to make sure there is no conflict. julie: congressman tom reed of new york, thank you so much for your time. coming up, the dollar rallying as investors await a meeting of global central bankers in jackson hole. more on that next. remember, bloomberg users can interact with the charts we show on tv using gtv . you can browse charts and save them for your own use.

this is the tariffs chart we were just talking about with the brian bandsma of vontobel. this is bloomberg. ♪

julie: the 2018 economic symposium in jackson hole to duff today. it is where policymakers and top economists gather and discuss the global economy. what should markets be watching at the conference? michael mckee is bloomberg's international economics and policy correspondent. the sun has come up and jackson

hole, so we can see the background behind mike. central bankers have a lot to contend with. we got the minutes, and the fed is on track for perhaps two put more in chris wray increases this year. there is emerging-market contagion to deal with an pressure. what should markets be watching? >> it is kind of funny, you mentioned the economists and policymakers, this place is also crawling with journalists. in the interviews journalists will do, we will get some news. jay powell is speaking here and make his eye to say something, but the tradition of fed chairs here is a key but rather bland. it will be the collective wisdom of the rest of the policymakers. at the sidelines, all those topics you mentioned will come up. i suspect one of the most interesting things that people will talk about and will be asked about is what is going on in emerging markets.

isa certain extent, it idiosyncratic, a word we like to work -- use. but there are strains around the world as the fed raises rates and as we see a lot of the trade hold.tions began to take you will have central bankers from around the world, including south africa and new zealand, here. there may reason talk about that and what the larger central banks are doing. david: it is an interesting point. let's be honest, with the central big stew and would fed does with monetary policy, can really affect the emerging markets. if they're increasing rates and strengthening the dollar, that is not good news for emerging markets. mike: it is a conundrum for the fed. the mandate is to take care of their own people. to coin a's case, phrase, put america first. but they do have an outside role

in the global economy. they do have an effect on what goes on and the rest of the world, particularly because the world is so dollarized. sometimes they work in cross purposes. in of the arguments fed critics make is that the inflation rate is so low that the fed does not s andto be forcing up rate could go slower and help emerging markets out. of dollar liquidity, they could start to make some reforms. the fed will be watching the u.s. data. saw a headline yesterday that the bank of japan governor is not going to be attending the meeting, which is somewhat unusual. any take away from that? mike: no, it may be the topic. this is a bit of a different year. market structure, the way markets work. we do not expect mario draghi here either.

the only central bankers from other countries are from the smaller emerging markets and some of the secondary level people from the ecb. it will not the as internationally focused as it usually is. but they do have jay powell here, and that is all markets will care about. david: that is mike mckee on location in jackson hole. tomorrow, live from jackson hole, we will talk to james bullard, st. louis fed president , as well as the dallas fed president and the atlanta fed president. julie: it will be busy. do not forget to watch "commodities edge" at 1:00 p.m. eastern. david: this is bloomberg. ♪

>> from new york city, i'm jonathan ferro. this is the countdown to the open.

coming up, the united states and china imposing tariffs on each other's goods just as trade talks resume in washington. federal reserve preparing to raise interest rates again. the internal debate over hikes intensifying. saudi aramco's ipo delayed. remaining just there. well out of reach. in the markets, 30 minutes away from the opening bell. a classic old-school morning. price action nowhere to be seen. futures, dead flat. bond market, dead fat. fx market, just a little bit of dollar strength. at 115.74. through the week, federal annual get-together on the heels of the release of minutes from their july meeting. little doubt that the chairman plans to lend the benchmark lending rate next month. >> we will be focusing