well with cocome to "street. astrazeneca falls to the bottom of the 600 on a report that their ceo is planning to jump ship to run israeli drug maker and shares taking a hit following a report that the german carmaker sold more than a million cars with excess emissions. and janet yellen strikes a slightly less hawkish tone than expected highlighting concerns about low inflation.

>> monetary policy is not on a preset course. we're watching this closely and stand ready to adjust our policy if it appears that inflation undershoot will be resistant and president trump arrives in france for a bastille day visit as controversy ramps up back home. good morning we have another very busy show for you. let's get straight to the ia report oil investors are going through a period of waning confidence according to the latest report the organization suggests that growing impatience over the rebalancing of the oil market is to blame for money manager slashing long positions in crude futures. and they said global gland growth rebound ed and want to

wait longer if the rebalancing process has the gun. neal, always a pleasure speaking with you about this report so when does the rebalancing finally happen >> well, it's on the way as we say in the report, at the moment we're slightly at the mercy of statistics. waiting for the statistics to catch up with what we think is going on out there the rebalancing is happening it's just a question of seeing that the recent increase in demand as you mentioned a second ago, very strong in the second quarter, will assert itself and that will mean that the deficit in the market as we move forward through the rest of the e. so we think rebalancing is coming it is just taking longer than most people originally thought >> i guess most of the culprits can be found on the nonopec side given that we're still talking about the resilience of u.s. shale producers but increasingly also about the production that is coming back from the likes of

nigeria and libya that were exempt from the opec deal. do you think the extension of that deal can only work if nigeria and libya join at some point? >> well, clearly the rise of libya and nigeria that we've seen in the last few months as been slightly unexpected i don't think anybody thought they could increase their production by 700,000 barrels a day or so which is what they have done. and if they can maintain current production or even good baexpani would imagine the rest of opec will feel a bit frustrated by this because voes it's diluting the impact of their cuts and efforts might be made to include libya and nigeria. but that is opec's business. but that situation is somethin which is becoming increasingly important. >> is it hitting confidence at opec itself? opec compliance slumping to 78%,

lowest rate this year. do you think it's because of the frustration that you just mentioned over libya and nigeria? >> no, i don't think it's necessarily related to libya and nigeria. the point about the opec deal is that the deal is -- the success of the deal needs to be measured over a period of time. and what we've seen in the first six months of the year is that the compliance rate with the opec deal is actually very good-bye historical standards. well over 90%. okay, we've seen a lower rate of compliance in june, that is certainly true so we'll have to wait and see how the other countries react because there are some countries within the opec family whose compliance rate is significantly below what we expected and of course there are other countries such as saudi arabia, biggest producer of all, which is most certainly meeting its commitments under the deal >> according to on your view, looking at the crude inventories last week, and they dropped the most in on ten months, but so

far about the five year average at the same time we're seeing oil output still increasing, and i think the market is just as confused about this one day oil prices are up, next day they are down what are you seeing in the u.s.? >> well, as far as the u.s. is concerned, we don't use the weekly statistics which you referred to as being the gospel truth because they are very heavily revised in susbs dwent we subsequent weeks yes rk, crude production is increasing, but refining is increasing so crude stocks are actually falling however that is leading to an increase in product stocks on the other side bam. so we're not seeing total oil stocks falling quite as fast as people expected. but we do believe that stocks will gradually fall over time and we'll wait and see if the states to confirm that picture >> why is that, do you think

this is down to cost inflation which is cited by many 1k3er789s b experts but also detisch cifici wells in the u.s.? >> what we're seeing in the u.s. is that the production has increased very sharply since the end of last year but in the last few weeks, the rate of growth seems to have tapered off. we saw i think it was 23 consecutive weeks of increasing drilling activity and that suddenly came to a grinding halt, all these it picked up again just recently. i think we need to be very careful aboutannouncing an end to the growth in u.s. production it's still increasing, still likely to continue increasing, but in a $50 a barrel a world or even a few dollars below $50 a barrel, we need to see if the producers are perhaps reassessing how much further they can increase production in the short term at this price level and that remains to be seen >> we spend so much time talking about supply

let's finally talk a little bit about demand because i'm looking at numbers coming from china this morning and chinese oil imports in the first half of the new year were up 13.8% that is quite a massive number i just wonder what the chinese are doing with that amount of oil. are they stockpiling or are they actually using it? >> well, there is a degree of stockpiling, that is certainly true and of course the chinese stock data is one of the parts of the balance where we don't have perfect transparency but as well as stockpiling which is certainly going on, there is very strong demand growth in dho china. they seem to be back to steady growth china, india, a bit of growth in the u.s. and germany and one or two other countries. global oil demand growth in the second quarter which has just ended has been very strong indeed and we think that relative strength will continue during the rest of 2017 so we'll see for the year as a whole

pretty strong demand growth and we think that will repeat in 2018 >> neal, thank you sooch for that as always neal atkinsons from the iea. a new cancer gene therapy has won support, paves the way for the first u.s. gene therapy which would treat a form of leukemia the treatment is given just once and expected to cost up to $500,000.trazeneca are trading at the bottom on the report that the company could lose its qceo to teva. he has agreed to join as its new chief executive. john rountree is joining us.

a lot to talk about. want to kick it off with novartis shares are down a little bit this morning slightly underperforming smi. yesterday they were up by 2.2% maybe we put the market reaction aside. how significant is this for the firm and entire industry >> i think this is very significant. gene therapy is a long time coming it's very difficult to pull off. and hats off to knnovartis for getting this panel approval at least from the fda there are still some side effect as, it has a long way to go, but good for patients and good for the industry that it is showing that it can continue >> you said some of the side effects are huge and i've read a "new york times" article about that one little girl who was treated with it, she almost died from the side effects, but then shall i recovershe recovered in the ed did survive which is great news

and did survive which is great news but what will novartis and other producers have to do about side effects, what about the fd ampt want to see? >> i think always there is a risk/reward. there is no perfect drug that doesn't have any side effects. there will be tremendous benefit from this treatment for people with leukemia. it's a really great treatment. but the trouble is that no man made interaction into drug is going to be per effect a and i think the regulators will want to monitor the side effects of patientseffect. and i think the regulators will want to monitor the side effects of patients assuming it's approved to see what they can do about it but i think a lot of patients will take the risk essentially because we're talking aboutlif dsh sl lif life-threatening diseases here and this is a treatment for it and a very good treatment by the

looks of the trials so far >> the costs are still prohibitively high $500,000 a pop obviously you only need one roen round, you are hoping that will be effective do you think as more and more makers will come to the market and maybe hopefully drive down the price, do you think this will become a lot more affordable >> i think these things are always going to be expensive there is a very complex manufacturing process going on you have to take cells out of the body and then treat them and put them back in this is complex technology that we're talking about. and it's expensive and obviously you have to -- the phrma industry has to make a return on their risky investment and price is a difficult barrier because as you pointed out, it's a one shot here and sometimes you compare that to long term treatment, although it sounds very expensive, it's a lot cheaper than treating somebody long term with other medications

that are currently available pricing, i think there is room for some creativity in the pricing. in a previous gene therapy afternoon proved o approved in , there was a kind of money back guarantee. although it was high price at the time,n approved in europe, there was a kind of money back guarantee. although it was high price at the time, it was returned. the idea was that it would be returned if the treatment didn't work i think those kind of contingent pricing is going to be what is required here. it's a very tough one to price it's a revolutionary treatment, but in a sense that costs money. >> is it going to be a big money maker for the likes of novartis and obviously still facing some competition, do you think because novartis is the first mover here that it can reap all the benefits what difference will it make to its bottom line? >> i think the numbers i've seen are predicting $1 billion.

in the old days, everybody called that a blockbuster. these days, $1 billion is not much for the top line of novartis we're talking tens of billions so although it's a great treatment, i think in small populations and because of the side effect issues, it won't be a huge blockbuster which will be $14 billion, $15 billion but as competitive treatments come out, there will be erosion because when you're talking about the balance of life, these one shot treatments, i think there will be a very big premium on side effects. so i think it will be competitive and perhaps that is why the market hasn't given novartis a massive boost over this drug because although it's the first which is great, if better treatments come out, it will struggle. >> john, let me move

astrazeneca. one of the worst performers on the stoxx 600 on this report that it's ceo will be joining teva we don't know whether there is any truth to it. how damaging would this be to astrazeneca if the ceo who has been at the helm of the company since 2012 and the company in the midst of a turnaround would loose its ceo? >> i think he's done fantastic job. share pricing increase, the change, i mean he has -- so if this rumor is true, and it's a big if, then teva would be getting a fantastic ceo. your question regarding astrazeneca i'm not surprised that even on a rumor that the stock is down. he's done fantastic good for astrazeneca over the last five

years. and i think a lot of that good will be already set. one company schbt juisn't just n so he's made a lot of changes already. i think his unusual combination of r&d and commercial experience has been well for astrazeneca. but it won't all be lost he's set things up and potentially a great catch if teva actually managed to get him. >> what could soriot bring to the table at teva? he's been making a big bet on cancer immunotherapy >> he brings a quality of understanding that is required to be successful in pharmaceutical although teva is known as a generics company, it actually has a subscription business as well and it's looking to grow that business. they got very good r&d and i

think what he can do potentially if this is true again is bring some of that r&d decision making and discipline and quality into te teva at a time when it needs to keep the generics going but also potentially build its business through the prescription side of things so i think it's a great challenge to take on to bimd up teva in the likes of a full pharmaceutical company >> john, thank you so much for your insight this morning. really appreciate it just want to bring you breaking news quite account an interesting poll when it comes to the expectations for china's gdp it's third quarter growth is seen to be slowing

keep in mind that the government's own forecast is for 6.5% still coming up on the show, daimler shares take a dip. we'll tell you why the automaker is driving in to lower territory after the break.

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welcome back we need to tell you what the markets are doing. stoxx 600 is modestly higher coming off its strong rally yesterday when the stoxx 600 was up by 1.6% that was the best day since macron's first round victory in the month of april and we saw that strong rally on the back of janet yellen's comments which were a little more dovish than anticipated, implicating that monetary policy will be tightened gradually. you see most european markets

are in the green ftse 100 is down though by just a smidgeon cac 40 up by a third of 1% what you will see is that if we can move on, telecom's basic resources, retail is better, health care off and oil and gas also trending a little bit lower. the german car make daimler has sold more than 1 million cars with excessive emissions this according to a report citing a search warrant issued. it says models with excessive emissions were sold from 2008 to 2016 in both europe and the united states. a spokesman declined to comment on the investigation, but said that it planned to cooperate fully with the authorities and casino has beaten second quarter sales estimates.

the french from spr market retailer reaffirmed it's 2017 profit targets adding that the and i would of its unit in brazil was progressing shares up nicely this morning up by 4.3% and european union top brexit gosh great tore says tno to make. and says it's inconceivable for talks to continue without settling initial issues like citizens rights. he fired bake at boris johnson who says the eu can go whis he would over brexit's exit bill. >> i'm not hearing any whistling. just the clock ticking >> no whistling, just the clock ticking. i like one it is one year to the day since theresa may became prime minister and it has been an eventful year. may announced article 50 would be invoked by the end of march 2017 and in january she became

the first foreign leader to visit newly inaugurated u.s. president donald trump and the month of march saw the first of a series of terror talks to hit. may announced a snap general election, but the move obviously backfired as we all know as the conservatives lost their majority the negotiations with northern ireland's du pchp reserved a su deem and to see more, head to cnbc.com in other news, the outlook for global sovereign ratings has improved over the last year. the improvement has been driven by good economic fundamentals. but concerns over high debt still linger james mccormick is global head of sovereign ratings at fitch ratings and joins us now talk us through the main findings of this report. >> as you said, it's a slightly less negative environment for global sovereigns. we're seeing a coordinated

growth story, ends of he recessions in some of the big emerging markets, commodity space stabilization. in the advanced economies again synchronized growth sorry. so i think tstory. so i think the macroeconomic backdrop is reasonably stable. >> monetary tightening is already happening in the u.s and bank of canada hiking interest rates and we're talking about it here when we're talking about the boe and ecb. what impact will that have on sovereign ratings? >> it depends i suppose. there is a policy consensus that central banks have done enough if you read the bis report that came out recently, it suggested that we look at g-7 and g-20 communiques, that is what they have been saying since 2013. that there is a need for fiscal

policy to be more supportive of growth so monetary tightening is definitely in the works. i think the growth impetus if you will is being handed overfi. not a great back crop for sovereign credit because we see debt rising at the government levels and we'll see interest rates rising as well so not necessarily good for advanced economies either. >> and emerging markets were the hain victim when it came to the taper tantrum. are they as much at risk this time around. >> >> well, i think you're perspective is the biggest difference between today and 2013, we're already starting to tighten in the u.s. and we haven't seen the taper tantrum, but there were just rumors in 2013 and we did. so what is the difference? it's really longer term rates. it's not policy rates. in 2013, we saw ten year treasuries move higher quitine a aggressive aggressively this year they have drifted lower. if longer term rates drift higher, that is where emerging

markets are more vulnerable. >> how much uncertainty is attached to your rates are we essentially in the dark >> a little bit. i think thepolicy uncertainty is more pronounced than it would usually be certainly in the uk we don't know the outcome and the negotiations on brexit are still very uncertain so i think there is a lot of question marks there in the u.s. trade and tax policy still to be resolved >> james, thank you so much. james mccormick, fitch ratings and we'll discuss trump's visit to paris with the president of cop21 after this short break your brain is an amazing thing. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory.

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welcome back to "street signs. not immune to that, astrazeneca falls to the above the stoxx 600 on a report that the uk far i a phrma giant is planning to jump ship to run teva daimler shares take a hit following a report that the carmaker sold more than a million cars with excess emissions. stocksallying around the world as fed chair januaet yell highlights concerns about low

inflation. >> monetary policy is not on a preset course. we're watching this very closely. stand ready to adjust our policy if it appears that inflation understohoot will be persistent. >> and president trump arrives in france as the russia controversy heats up back home we'll speak to segolene royal in just a few moments january either yeet yellen

rate hikes will be gradual european markets had a pretty glorious day yesterday on the back of those comments from yellen we were up by 1.6% for the stoxx 600. that was the best day of gains since macron's first round victory in the month of april. ftse 100 slightly underperforming today. and fx, look at one of the standout performers is the loonie against the u.s. dollar at .7724 a 113 month high. and the dollar is a touch lower against the japanese yen french train maker maintained its 5% organic growth outlook and said it skekts mexp

margin of 7% by 2020 german and french finance ministers will propose a plan to harmonize the tax policy president trump is in paris to celebrate bastille day and it seems like donald trump doesn't have that many friends in europe, segelene royal. unfortunately we are waiting for the connection we'll bring that to you of course as we get it. trump says he does not fault his son meeting with a russian lawyer and that he was not aware of the meeting between donald trump jr. and the attorney until

a couple gay ago and justice koornt pete williams has more >> reporter: christopher wray had would be mission, dominate his independence from the president who nominated him after firing james comey >> i will never allow the fbi's work to be driven by anything other than the facts, the law, and the impartial pursuit of justice, period. full stop. >> reporter: he said no one including donald trump asked him to pledge loyalty, something comey said that the president asked of him >> it got very awkward and i then said you'll always have honesty from me. >> no one asked me for any kind of loyalty oath at any point during this process. and i sure as heck didn't offer one. >> if the president asks you do something unlawful or unethical,

what do you say? >> first i would try to talk him out of it and if that failed, i would resign >> reporter: wray is a former federal prosecutor in atlanta and senior official in the george w. bush justice department at a time when comey was deputy attorney general and his boss wray was careful to defend comey's character discounting the president's description. >> you don't think director comey is a nutjob, right >> that has never been my experience >> reporter: but you wray also said comey was wrong to publicly criticize hillary clinton's handling of classified e-mails when announcing that she should not be charged with a crime. wray said he would make sure robert mueller has everything needed to examine russia meddling despite the president's dim view of that investigation >> i'm asking you as the future fbi director, you consider this endeavor a witch hunt? >> i do not consider director mueller to be on a witch hunt. >> reporter: and he says he has no reason to doubt that russia

was cyberhacking election. >> stocks moved up after janet yellen spoke we'll talk to a former central banker about what yellen's testimony means.

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the people i love have always been there for me. and now, i'm there for them, too. talk to your doctor, and call 844-214-2424 to learn more. ivanka trump and jared kushner have touched down in sun valley in 50id hidaho. the annual meeting is known to be a hub for deal making jul julia filed this report. >> reporter: people like warren buffett, sherry red stone, reed hoffman, bill gates and king of jordan here listen to speakers and hear panels in the morning in the afternoon, they bike and

go horse back riding and behind closed doors, make deals discovery ceo says he he expects many more media deals. >> it feels like there is more pressure on the cable players around the world satellite and mobile play ersz to merge or figure out how to offer all those together >> reporter: with the merger speculation about their companies, verizon ceo said verizon's not merging with disney and cbs ceo says cbs is not buying lionsgate the other topic dominating the conference, politics with jared kushner and ivanka trump on the guest list and panels including one hosted by tom brokaw and an interview with cia director mike pompeo the ceos discussing what impact president trump's policies will have on their bottom lines >> if he can inch pmplement his agenda, that is a boost for the u.s. economy at a time probably

that it needs it >> reporter: but others criticize president trump's policies on immigration, net neutrality and the environment >> i think it's just a joke. and hopefully it will be over relatively soon. it in-exapplicationly began and it will end. >> reporter: but he agreed that we will see more media deals i'm julia boorstin in idaho. amazon posted it's biggest day. >> 30 hours, 13 countries, and it is official, amazon's rhyme day is it's biggest sales day ever amazon says sales grew by 60% over the same 30 hours last year and maybe more important, amazon says more new prime members signed up 00 july 11th than any other single day in its history. and we know that independent research shows that prime

members spend almost double nonprime members annually. so it's a valuable group participation also was higher with 50% more prime members buying something on the site this year than did on 2016 prime day. now based on all this, an estimate that amazon topped a billion in revenue with gross per dmerchandise hitting betwee5 billion. the echo device was the best selling item and remember this is a key product that keeps consumers fur connected to the ecosystem if you will other top selling prices were an instant pot pressure cooker and a dna test and 200,000 dresses were sold, the same as the number of light bulbs. boomerang commerce which is run by a former amazon employee says prime day discounts did average

between 31% and 45% with the third party sellers offering higher discount rates than the products shipped and sold by amazon directly. but maybe what is more interesting is that bomber rang commerce found the normal best selling products in appliances, home and kitchen, toys and games weren't discounted on prime day at all and in fact thirp slightly more expensive. back to you. >> meantime fed chair janet yellen struck a surprisingly dovish tone in her testimony before congress. she told lawmakers that the central bank could still adjust its policy if the recent undershoot in inflation continues. but yellen added that the u.s. economy warranted a gradual rise in rates the fed chair said 2% inflation is still the target and the fomc is monitoring the situation closely. >> it's premature to reach the judgment that we're not on the path to 2% inflation over the next couple of years as we indicate in our statement,

it's something that we're watching closely considering the risks around the inflation outlook. we need to make some adjustment as long as our forecast is that we are headed back to 2% about that. >> she was also asked about the health of the u.s. economy and how it will impact the path and timing of rate normalization >> the committee continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time to chaefr and ma achieve and maintain maximum employment and stable prices that expectation is based on our view that the federal funds rate remains some what plbelow its neutral level, that is the level of the federal funds rate that is neither expansionary nor contractionary and keeps the economy operating on an even deal a new cancer gene therapy

has won support. the back pavers the way for the first u.s. gene therapy which would treat a form of leukemia is the treatment is given just once and is expected to cost up to $500,000. this development was decades in the making and it all started with one little girl rehema ellis has been following her story. >> reporter: dootoday's landmark decision started with emily whitehead, the textbook example of this ground breaking therapy. we met emily a year and a half ago at age 10. still cancer free after being dying thosed with an acute form of lieu dekeechl i can't when s was five >> the doctor said you need to call your family in because emily won't be here tomorrow >> reporter: but doctors at the university of pennsylvania and children's hospital of philadelphia developed the treatment. emily was the first child in the world to receive it.

>> she's cancer free and i couldn't believe it. i just -- i thought it was a dream. >> reporter: here is how it works. from a blood sample, a patient's own immune cells are separated out and then genetically reprogrammed, turning them into on super fighters that hunt out and destroy cancer cells at the fda hearing today, fighting back tears, tom whitehead testified next to echlly >> if you want to see what a cure looks like, she's standing right beside me. >> reporter: this fall, the full fda is expected to approve the treatment for relapsing leukemia in children and young are adults it's growing, but 83% of patients went into remission the ultimate goal, try it on other cancers. >> it's hard for me to even arctic could you you late how exciting this is everybody has been work toward this for so long >> reporter: for emily, today's decision is about hope

>> it's kind of exciting because it will get the treatment to a lot more kids. >> reporter: a historic step in science thanks to a brave young girl rehema ellis, nbc news let's remind you what the markets are doing this morning a quick look at u.s. futures at this point a positive start to the u.s. trading session. the s&p 500 seen up by roughly 5, the dow jones could add 32 and nasdaq seen up by 27 this is as the dow eked out its first record close since june 19 yesterday. the dow transports also closing at a record high the dow up by 0.6%, 123 points obviously markets reacted positively to what janet yellen had to say about her signal to raise rates gradually. she said that the low inflation prints will have to limit the reway of the fed to some extent.

and we saw that spectacular rally on the european session yesterday. we were up by 1.6 of% when it comes to the stoxx 600 that was the best day of gains since macron's first round victory in april.to the stoxx 6. that was the best day of gains since macron's first round victory in april daimler under pressure on reports that the cars were selling cars with excess emissions. cac 40 up by 28 points casino is doing well on the back ever better than expected second quarter numbers. we're seeing strength in france, but also in recession hit brazil when it comes to the fx markets, here is the picture. the dollar took a slight look lower on the back of a dovish than expected testimony from yellen but standout performer was the loonie against the u.s. dollar still up by 0.7% at 7724 this is as the bank of canada raised rates as expected

her kell oangela merkel has for the joint cabinet session with macron. german and french finance ministers will propose a plan to harmonize corporate tax policy and donald trump is in paris to celebrate bastille day there hasn't been a lot of agreement between european leaders and the u.s. leader of late what do you think the main topics will be, claire >> reporter: well, probably the two presidents will be working -- or will seek to be working on topics such as syria and countering trimp, b interrcy have lean aside the dividing issues, that is to say trade issue and of course the climate issue. macron wants to take the lead in climate change fight

he made a pretty terse answer to donald trump's leaving the paris agreement when he said we have to make our planet great again that would be with or on without the united states. so they probably won't talk about the climate change issue, but for this official invitation, macron will beside by side with dud tomorrow when there is a parade to celebrate bastille day and the 100 years since the u.s. troops intervened in the first world war to help europe so donald trump will be standing side by side with macron when he surveys the troops both men like these sort of military ceremonies. plaque kr macron as you would remember when he was elected drove down the champs-elysees on a military vehicle. and then the u.s. president will

go to visit a war museum and napoleon's team. and then there will be a bilateral meeting followed by a press conference and in the evening at 9:00 p.m. with their spouses, the two presidents will head to the eiffel tower behind me, the second floor, to the restaurant and try to get closer since their relationship didn't start off on a good foot remember that strange handshake between macron and donald trump when they first met. and then a lot of pretty terse exchanges between the two men also when donald trump said paris is not paris anymore i think the french president wants to show him otherwise during these two days visit. >> and it's quite interesting that looking at most recent polls, actually the french are in favor of inviting trump to paris. 60% of the french are in favor

of that. you are aware of the discussion that we have going on here in the uk that most brits actually are against state visit from donald trump here in the uk and that has been paeeen postponed indefinite indefinitely why are the french more open to donald trump do you think? >> the french people don't really like donald trump there is a big nostalgia for the barack obama era he had a lot of enthusiasm and supporters this is not the case for donald trump at all but i think when you talk about the french people that agree to this visit, it's a state visit and france wants to be a sort of natural partner for the u.s. now that the uk while it is a bit embroiled in the brexit issues and now that germany and angela merkel is keeping a distance with donald trump, macron probably wants to be the bridge between europe and the united

states and i think the french people agree to that >> claire, thank you so much and let's get back to the u.s. story and what happened with janet yellen's testimony yesterday. she was a little bit less hawkish than expected. basically saying that the low inflation may leave the fed with diminished leeway in tight 00 00enni00 e enning policy. ten year note dropping down to around about 2.3%.enning policy ten year note dropping down to around about 2.3%. let's talk to jacob frankle from the international financial congress thank you so much for taking the time always a pleasure speaking with you. i guess the markets heard what they wanted to hear from janet yellen yesterday but the interesting point is the missing piece of the puzzle, inflation. why do you think inflation is so low in the u.s.?

>> i think it's important to pose everything in the median term so i'm not impressed with the data, i'm more impressed with the trend in which they represent. it seems clear that the united states economy is recovering, that growth is picking up, that labor markets are performing better than many have expected and even inflation has it measures and looking forward is directing itself towards the 2% target is what is important is monetary policy of the united states uses the compass of the medium term that compass tells the fed we are hopefully almost, we are

seeing everything that we needed to see to justify normalization. and that's why i strongly expect and support the strategy of the fefshl today to go ahead with normalization. and if it is one month or the next one, that is really secondary. what is important to note is that not all the world is ready in the same way. so we should be expecting a period in which the united states is easing its expansionary mode, namely that the united states will start raising rates further, maybe putting some limits to the balance sheet. at the same time, europe will not do it. during that period, we should expect the exchange rate to show a change and we should expect to see a depreciation of the euro relatively to the dollar and

this will be good for europe and it would be a mistake if anyone tries to handle per with this healthy part of the adjustment mechanism. >> and what do we expect with the continuing bond selloff? >> the taper tantrum that took place some time ago, long time ago reflected relatively clumsy methods of communication i think that the fed is much better in communicating with the market and we all now talk about when and how sxaektly the fed will normalize tells you that the fed was ccsuessful in telling us the direction that they go and approximately even the timing hey you've gotta see this. c'mon.

no. alright, see you down there. mmm, fine. okay, what do we got? okay, watch this. do the thing we talked about. what do we say? it's going to be great. watch. remember what we were just saying? go irish! see that? yes! i'm gonna just go back to doing what i was doing. find your awesome with the xfinity x1 voice remote.

will be gradual. your trading day set up. and oil prices slip after a report suggests producers are raising supply and happening now, president trump lands in france. we'll what you is on the agenda. worldwi"worldwide exchange" beg right now. a very warm welcome to