and to have a better life, then you don't stop. the idea that we have saved five million people's lives, it's overwhelming. it's everything. >> welcome to bloomberg markets. i am amber can more and i am alix steel. let's get a quick check on the markets. i should point out the volume is really light. nonetheless, the s&p is eking out a gain of .2%. it does feel like you could find a hawk and a dove within jay powell's speech. we will get to that in a moment. a couple things look at. the dollar index is up. the dollar-yen is at its highest level we've seen so far this year. just keep that in mind as we go

through this session. the best-performing sector is energy. why? we don't know. there's no explanation. but the worst performing stock is dollar tree in the nasdaq. so keep that with a gain of's -- grain of salt. 10 year yield going nowhere. we did want to look at the two-year because this is where you really get the push and pull from doves and hawks room what jay powell said. we are there around 10:00. you come in with yields moving lower as the -- as he keeps talking and you digest the speech. it has pushed higher. at one point, it reached a 5% level. the highest level since 2008. >> some of this is fed related, but there are some stocks related to this. it is now in positive territory. reports are that they will start resuming these 747 max jets. they haven't on that in four years. since two jets crashed, so this

is a pretty significant milestone boeing, you see the shares react. blackberry is surging. bloomberg is reporting that a private equity player is in early discussions to buy the whole company, though they are early. no price has been disclosed, and it's interesting to see nvidia blowout quarter. the stock fell flat. now, it's just outright down. that is the ai craze winning. that is the thought at morgan stanley. that's what mike wilson thinks, and retail, the gap of nordstrom's offering a picture of disappointment with sales, but shares are rallying as investors are giving the new ceo who came from mattel the benefit of the doubt that he might be the person to turn things around. there is a big task ahead of him. >> let's go right to jackson hole.

>> we are prepared to raise rates further, if appropriate. we intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down towards our objective. based on this assessment, we will proceed carefully if we tighten further or instead hold policy rate constant in a way -- and await further data. >> turning from jackson hole is our host. joe, it seems like the reaction here is depending on where you start if you are a hawk. you see some hawk's notes or you may see some dovish notes. >> it really is. i love the way you described it. a little dovishness. a little hawkishness. a little bit of neutral. but i think there is a spot on -- if you article is to maintain maximum optionality. if your goal is to say, we are data dependent and away that doesn't sound totally cu say -- cliche. why would you come to jackson hole just to say your data

dependent. that's where you want to go. prior to this speech, all these discussions about academics or productivity. there is a little bit of that. but it is basically sort of a straightforward acknowledgment that there's been improvement on inflation. there are an upside risk to inflation. the problem is not all good. and there is a good chance that there's more work to be done, and i think that is a good way to give a good speech without making a massive ripple. you can definitely see that in the market as this prices the status quo. i'm curious. you've had some help. the pmi wasn't terrible. the data is strong. christine lagarde does not have the same kind of help. >> right. i really like the last line because going back to the stars metaphor, setting aside long-term concepts of what is neutral, what is normal, etc.. i love that it is cloudy skies.

you put it really well. you can tell so many different stories about this economy, and that's when it comes back to. again, we talked about this yesterday. you could tell a negative story about this phase ruling over. it is shooting higher in slumping again. there negative stories in positive stories, and that is sort of cloudy skies like, it is pretty can using. i don't think anyone has a great handle on the cycle. if he say it is claudia coming want to take your time to see how this develops for november or december, then that is where the fed is at right now. >> one thing that your definitive on was inflation is 2%. that was very clear. there was no room for interpretation. >> totally. it is interesting because this conversation should have an inflation target raised in a formal manner. there was a column where it said 3% should be more elation.

paul is more definitive on that. that there is no plan to do that. however, i do think in a way, we have had inflation very high for the last two years. while the fed is endeavoring to bring it down, it didn't completely slam the brakes on the economy. so, the fed has already been making this decision on -- one could argue, that some level of toleration or at least for some. of time, it is worth tolerating this inflation if it means robust labor markets, and i think it is the way to think about it today. we have this good labor market and the united state sprint 3.5% unemployment. high levels of employment to primary employment population ratios. fins like that. the question is, how much do you want to preserve that, or are you willing to sacrifice these gains to get packed -- back to 2%. while the fed will not come out to say the new target is 3%, it

is not saying we have to be back to 2% tomorrow or next month. that is why we are not jacking up the rates, massively. >> it is a tight rope. you need shades. get some sunglasses. >> thank you. >> in some sunglasses. >> joe is joining us. check out this episode on the terminal, and anywhere you get your podcast. let's discuss the state street economists. good to get your perspective. we talk about what the fed is doing pretty has the market decided what it is? >> know. i don't think anyone has decided. the fed or the markets. they are just wondering, and these are really just the place we are, and i have to say, as i was waiting for chair powell speech, i said to myself, this feels like a conversation we had internally with our investment colleagues. there is a universal consensus that where we are today is not a premium position. the rates are restrictive, but

when you get to details of how restrictive they are, that is where there is a difference of opinion and that is what chair powell basically said today as well. there is a lot of uncertainty. i think it is a fools errand to try and definitively answer the question today. this is a process. we are getting to the new neutral experience. we know what the economy, what the data does. we'll draw conclusions about where that longer-term equity is. if it's really new. >> we are just debating decimal points around the switch is in stark contrast to how we started with the fed and investors in totally different places with great expectations read is it fair to say that there is a disagreement under nuances or basis points. has a good view. >> in the short term, yes.

the idea that there is a surprising degree of resiliency in the economy, and that this could imply rates need to be higher or higher for longer than the market initially estimated, but you get to this tricky part of why we have seen this kind of resilience, and perhaps economists and markets in general, we haven't given enough credit to the positive impact of disinflation that has been accomplished over the last year. we came from 5% inflation. the poseable income is growing. it was contracting from 4%. this resilience in consumer spending can be extrapolated for the next six to nine months, and that is a little more questionable. >> i was mentioning this earlier. jay powell has helped with data that's holding up, even over.

the pmi's were really bad. christine lagarde speaks about an hour and a half. what tight rope do you expect her to have to walk because if you look at the market reaction, higher yields in europe are the trays of the day. >> the challenge was always more difficult for europe. not only because of the inflation shock being a little more acute and more externally with a little more difficulty to contract, but also, the nature of the euro zone. you are trying to set a policy for different countries, so, from my point of view, the question is very similar to the u.s.. you are clearly in a restrictive territory. the eurozone is far into restrictive territory, and then the trade of question is, how quickly do we need to get back to the inflation target. it is clearly evident that the inflation is accelerating, progressing in the euro zone as well.

the growth data coming in, it is weaker perhaps. i would argue that maybe it speaks more towards a caution approach from this as well. >> do they pause in september? >> i think they should pause. they should reassess. it is true every banker wishes the target was achieved quickly rather than over a. of time, but the truth is, getting it under control is like a weight loss process. you do to drastic actions, and you have a side effect with the process is consistency. it ensures the downtrend extends and entrenches it. i think europe is achieving that. you know, ultimately, it's not a guarantee what they do, but they should be just as the fed has actually done already. >> all right. we will leave it there. thank you so much.

from state street and alex mentioned christine lagarde. there is an ax collusive interview with tom keene on bloomberg at 4 p.m. new york time. you won't want to miss that. zillow is offering a 1% homebuyer. we will discuss it with the home developer next. this is bloomberg. rock stars? you're a rock star. you are a rock star. no more calling co-workers rock stars. look, it's great that you use workday to transform your business. but it still doesn't make you a rock star. so unless you work with an actual rock star. hi, i'm ozwald. hello ozwald. pam, you are a rock- i wasn't going to say it. ♪♪ you got this. let's go. gobble gobble. i've seen bigger legs on a turkey!

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>> this is bloomberg markets. i am amber. i am here with alix steel. warner bros. discoveries among the s&p 500's worst performers in today's session. the company is delaying the release of the dune movie sequel as hollywood strikes impact the timelines. it is launching a cnn streaming channel on its max platform next month read let's discuss with bloomberg. jerry, what is the significance of this? >> this is a big deal. they had some slow starts in the streaming world. they had a cnn plus product that is scrapped after about a month. now, it is starting to get into the streaming game in a meaningful way. >> how is this? is the stock movement a reflection of the cnn mac situation or movies getting pushed out because of the writers strike? >> it is more of the latter.

cnn having a bigger presence is not something that is going to move the needle for warner bros. discovery stock. i think that there is -- with the hollywood strikes going on, the timing of movie releases is something that investors are very interested in. >> is the reaction because we thought that the strike would be sort of wrapped up or at the very least winding down by now and the casualties not to this degree? >> i think that there is -- the strike has been dragging on for quite some time. it's just getting complicated and as far as the movie releases go, this is something where depending on how long the strike goes, we could see movies getting pushed back further and further in the 2024 and that could have an impact on all of the media companies. >> i'm the only person who is bummed about dune to being

released later, but if we look at this mac situation, how is it different than cnn plus? >> it is different. it is a standalone streaming service. that was something that was built under a previous ownership. when at&t did it, they decided they didn't want to move forward with cnn plus, so they have a streaming service that is really the whole company making a bid that -- big bet on streaming. hbo max and cnn will be a part of that, and it's a little bit tricky. they had to make sure they didn't upset the cable distributors who pay money to carry cnn, so they will rely on international content and they will have some original content that you can't get on your cable service. >> i guess that would also allow you to reach out to those cord cutters. if you cut your cable, you don't

get cnn on your television anymore. that is a way to bring them back in. >> we've seen a huge number, tens of millions of subscribers that have fled cable tv in the last couple of years, so they are trying to find a way to reach these younger consumers who have abandoned cable tv. >> how will they do that? i heard that there would be breaking news like cnn or something that would retrain your brain on how to find breaking news, which i found quite interesting. ask it will be something within max. i'm sure there will be various ways where perhaps you are on your phone and you get a push alert saying there is breaking news. go to max. it is going to be a challenge to train people to go to news events with the cnn cable channel or obviously, this competes with social media and there is a competition for

breaking news, and cnn is a little bit late to the game with streaming. other companies like nbc universal or cbs and abc have streaming services and have had some for quite some time for your they are your. >> i cut the cord, so i was wondering where i was going. thank you. gerry smith, thank you very much. coming up, i love the story. zillow's new dow pavement -- down payment incentive. this is bloomberg. the first time you made a sale online with godaddy was also the first time you heard of a town named dinosaur, colorado. we just got an order from dinosaur, colorado. start an easy to build, powerful website for free with a partner that always puts you first.

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>> this is bloomberg markets pretty i am amber kenmore with alix. we are tracking below. this comes after the company says it will offer mortgages with dust a 1% down payment as it tries to attract homebuyers with the most unaffordable

market in almost four decades. zillow hopes it will change the customer base with mortgage rates at a 22 year high. as a canadian, it sort of blows my mind. you can't get a house with less than 5% down. anything under 20% has to be insured. >> it blew my mind here. let's get to this. skyler olson. she joins us. i have to be honest. i see the headlines and i look at these worries of countrywide and why did you decide to do this? walk me through it. >> let's talk about the program. from home loans. it is 1% down from the perspective of a qualified or eligible phoenix. but also, a low need to get up to 3% down. zillow home loans are making that 2% grant to bring the 3% total, and 3% down with

mortgages this is an eligible bower, and a high credit score. they have the income on the regular to make that monthly payment. what they don't have is say, the built up savings to make that down payment to get in the door. >> as avenues of finance get more conservative, and as we see the shortage in demand, customers are sort of craving flexibility. how can i get together enough to live the dream? >> there a lot of people out there, not just millennials, and gen z, but they have similar operations to previous decades, and they're trying to figure out how to make their way forward, and when you think about a program like this, this is for a

person who doesn't have a generational wealth. there is an excess of the door, and they are able to earn and build a career over time. this is the product that kind of develops more for them, but at the end of the day, it still a 30 year fixed rate loan that can actually offer a person financial stability. >> what your basis? on the mortgage rate, which is 5.75 seven, what is going on that you are offering? what's the basis? >> i can speak to those specifics on the business side of that one. i will say, in terms of the set of people, when we are thinking about who is eligible for this one, it is within different price points, and other realms of eligibility, so here is a fairly qualified follower that can generally get a lower rate. >> really interesting. the story is not over.

>> skyler olson of zillow. what i find interesting is there's definitely a bifurcated market. you have new home sales that are jamming forward, and existing home sales constrained by supply, and if this loan goes nationwide, i have to wonder what that does to the bifurcated market rent does this make it tighter instead of looser? >> it might. ever-growing calls about how much farther can this trend take an area like this which is already trading and i don't think anyone would have guessed that at the beginning of a rate hiking cycle, we would start to see that towards the end of it. >> i think that's a good point. in the markets, we are still looking at mixed equities here, but relatively higher on the volume. quite light. i want to point out that nvidia is the worst performing stock in the s&p while hasbro has an upgrade as the best performing stock. it is hard to know if there is a signal within that market or just positioning. it is a friday. it is december and august.

for amber, i'm alix steel. have a great weekend. this is bloomberg. i may be known for my legendary football career, but truth is, i love a bunch of sports.

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>> happy friday. in new york, i am scarlet fu. >> i am sonali basak. we are kicking you off to the close. big day at jackson hole. s&p 500 index, a gain of point 3%. nasdaq 100 up over .1%. the two year yield is at 5.05. interesting moves, three basis point hike off the heels of that speech at jackson hole i fed chair powell. the 10 year yield, st