. craig melvin: that's all for this edition of dateline. i'm craig melvin. thank you for watching. [music playing] german financial services provider grenke sink a german watch dog launch investigation following allegations of money laundering. the ceo of jp morgan the fed has helped it avert another financial crisis from the summit about the previous concerns and asked if it is time for the central banks to acknowledge its own actions

i think it is a mistake that because we helped the wealthy we shouldn't do it. the reason they did it is because of that. if you don't lift up the economy, the people who suffer the most are the poor. the fed is thinking about how do we lift up the economy they shouldn't hurt a wealthy person to make them feel good. they are doing the right thing now which is to let them get through this there are going to be serious situations that's kind of a secretary dairy problem right now. we should get through this and kind of unwind some of this stuff wisely there are huge incomes you could have negative imcome tax, fix education there are a lot of things we should be doing to help the poor federal policy is not the

thing -- they should focus on letting the economy grow they don't focus on growth strategies they have policies that don't help growth. if you had 1% growth in the united states over 10-year period, that would be $4 trillion gdp that's like $10,000 a person extra. that pays for a lot of social safety net, taxes. we don't focus on growth, healthy growth we focus on blaming each other and unable do basic stuff. it is long-term thinking, real policy, facts and analysis, not guessing not looking at year over year. it has become a waste of time and caused us to make really dumb decisions >> you are in a fortunate position you get into the room with the people making these decisions. your advice would be just do

nothing at this stage and keep policy as it is. when you talk to those in the federal government, now it is your turn to do the heavy lifting. >> you want to go to this great reception. i'm speaking for them. what they didn't want was a global crisis in addition. where they close down and people can't get money. they keep the markets open which benefit everybody. right now, they are so wide open they don't need to pump it up anymore. let nature take its way. look at the day-to-day things they do. they did do payroll checks small business support a bunch of stuff that aimed at people, not aimed at companies and stuff. they helped companies too but they are aimed at keeping money in their pockets

yes, we'll need another little round. it doesn't need to be $2 trillion particularly small business and those long-term unemployed >> the charter of the group ceo bill winters says he hopes the fed will pull back from easing measures soon. >> i think central banks around the world between zero interest rates and negative interest rates forced the flattening of the curve and forced compression of credit rates. this is being done by heavy lifting of the central banks when we see the back of this pandemic, we have the real economy kicking in so they can at least back off a little on the easing and let markets focus a little on themselves but they are not there just yet

>> looking at the early action and early gains on the boards have been tough to hold on to. we've had a little red splashing up on the charts the ftse is weaker just moving back intopositive territory. they are very slim rangers you can see more on the stock market up about .02% the markets are cautious after the improvement in the trading session. looking at those sectors and where retail stocks. had a decent performance in the latest update taking with it, they've been reporting two market cap stocks. waiting and driving the retail sector forward 1% in the green technologies improve we saw gains for the nasdaq and technology gaining .03 of one

percent. there has been movement after hours. there has been enough in the technology basket to drive that sector forward today basic resources and gains out of china yesterday. all eyes on the fed and further stimulus in the combination of the two-day's meeting. let's look at the worst performers on the market travel and leisure not fairing well utilities trade weaker, insurance, banks and telecoms under performing today heading out to the u.s. markets. closely eyeing messages from jay powell so far, looking at extension of some of the gains. a recovery from last week. it looks like we should continue

in the areas of the markets and most of the gains on the back of the fed comments setting you up for what would be an interesting session looking at the market which is likely to have a much rosier forecast to try to communicate and give the message that the job is done at this point. just starting out at the unemployment rate, you saw 8.4% is below the rejection of the forecast of 9.3% this year already gone below what they thought the unemployment rate would be if you look at the amount of jobs lost. 11 million jobs from where we were prepandemic so still sim lus is required to bring more jobs back >> that's right. i think it will be interesting to see how the fed expects that unemployment rate will evolve from here to the end of the

year on the stimulus front, jay powell has been so vocal about the fiscal stimulus urging for more relief. in light of the developments from washington, we haven't seen lawmakers be able to agree how he decides to frame the fiscal side of things. whether he decides to go very hard this is the last time we'll hear from him before the election >> looking at inflation levels clearly, communication has been inflation rates are not moving for several years. considering the market and we've seen stocks move on the back of low interest rates for a long time many of key to see out until 2023 seeing what the central bank sees beyond the immediate time frame of what it looks like about covid and vaccines

2023 will be quite interesting to see what fed members think will play out that year. also in terms of the targeting regime, this is a huge change flushed out of jackson hole allowing inflation to be above 2% a little below getting to this average close to 2%. if the inflation goes up in coming years, we'll stop debating whether the phillips curve is broken. seeing jobs and unemployment guide. you say when is inflation going to come into the mix that would move the inflation at the lower level. that unemployment rate will move lower. policymakers will not be as spooked by the jobless numbers improving at this stage. >> that's right, we'll see if the fed is expecting any

overshoot. one other thing i would throw into the mix that investors will figure out whether per jojerome powell wil interested in a lending program. officials across the board have been criticized in the efforts to support main street to the extent they've supported wall street this has been under fire with respect to the strict criteria seeing more credit risk themself in order to make the rules a little more lenient. >> what also jumps out to me, we've got this back drop and the stimulus program that congress approved early on. now with the stall in the meeting, also we don't have anymore stimulus coming through from congress. market participants think there

will be enough appetite. that could be an issue you look at the way stocks are trading, we've had a stunning ride and has been extraordinary on u.s. stocks we may have a couple of sessions where stocks bounce around what comes next? if there is no more messaging from congress. if jay powell is signaling more required could we have a bit of a lull for the stocks that will be interesting to watch? >> it certainly will, so much comes down to the vaccines it does feel like that is the big openquestion not only for the policymakers the investors weighing in yesterday by the president saying he thinks we could get an approval by october. that is an ambition scenario

we could see information from pfizer that they could approve as early as next month that is something they are watching closely as well >> fair to say gold, the dollar yields and areas of the market to watch on the back of the fed as well. ahead on the show, eu commissioner has issued a rallying cry for the block telling lawmakers it is time for her to lead. we'll have more from the state of the union speech next another day, another chance to bounce forward.

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welcome back a return to profit in the second quarter but sales were down 31% as customers stayed away from shopping stores. a rapid recovery in operations under way.

tesla shares turn higher for a fifth straight day as an update of the carmaker's battery. battery day is to take place next week. this comes as the company was excluded from the s&p 500 last week with exclusive lows after reports bafin is investigating. calling their allegations dem ons rablly false they raised accounts around wire card at the time >> exactly, bafin, the german regulator is extremely nervous

these days from the wire card scandal. it is not over and now these new allegations which had a very early take on wire card. of course raising the alarm bells here in germany. one also has to be crucial at the moment these are allegations which apparently are not correct or might be judgemental for now, what we are saying is most of the cash the bank has in its balance sheet is not exist ant and here they are saying it is not true. 80% of that cash is sitting in the bundesbank account and that

is different from any account in the philippines. still waiting to hear back and confirm. when it comes to the other allegation when you look to the balance sheet, there is something they call franchise business. that could be an issue apparently, they are buying franchise in companies outside of germany, which they ultimately control that could be a round trip issue here that only could be. also the report is claiming the assets are dying and that they are overvalued on the balance sheet. here also they are stating the average printer on the balance sheet is worth 8,000 euro which should be -- it sounds not very plausible but anyway

for now, we can only say bafin is looking into the regulation and also potentially into short selling. >> thank you we'll peel away from this corporate story and go to the speech from the ec president von der leyen. she says she wants to lead reforms of the w.t.o. and the w.h.o. in terms of the u.s. election weighted into comments saying the eu should be ready to build new trans-atlantic agenda with whoever wins the u.s. election this is a nod playing out to the fear state side. chances for a timely deal are

fading with every passing day negotiations are difficult but brexit talks haven't progressed. saying there is little time to see a trade deal with britain. saying the divorce deal will not be unilaterally changed in terms of those comments to the criticism for the deal between europe and russia on the gas pipeline particularly coming from the americans. saying the nord stream two pipeline will not bring pressure to russia. also weighing in on various other geopolitics as well around be belarus and more there is a lot from this speech,

give us a sense of what you thought was interesting for the investor community >> indeed there is a lot in this state of the union speech, the first von der layen is making. at the recovery phase at the beginning of the pandemic, there was a lot of criticism of how the eu was not coordinated in responding one of the reasons behind that was that health is a concern of national politics saying she proposed a stronger health union and reimposing the medical agencies one thing to watch out when it comes to the health space and

she announced she will convene a globe al health summit in italy next year. another interesting proposal that she made this morning is important also for the investment community is the fact that she will be making a proposal for a framework for minimum wages across the eu. right now, some european nations do not have minimum wage in place. this issue has been raised by the french president macron during his famous speech shortly after being elected president. so want to watch out in the coming months in the labor market space the headline of this speech is definitely when it comes to the climate policy, let's look at some of the remarks she made when it comes to this. >> i will ensure that it also takes green financing to the next level we are world leaders in green finance and we are the largest

issuer of green bonds worldwide. we are leading the way in developing a reliable eu green bond standard. i can announce today that we will set a target of 30% of next generation eu's 750 billion euros to be raised through green bonds. >> so von der layen announced more targets by 2030 and made the announcement that the commission would like 30% of those 750 million euros raised through public markets to green bonds. that's what we are hearing from this speech this morning when it comes to a stimulus package, let me remind our audience that european lawmakers have not approved it the expectation is that they will do that before the end of

the year a final note on brexit you mentioned von der layen said there is little time to reach an agreement. in this context, let me remind our viewers that this is the first state of the union speech without any british lawmakers so it changed there >> thank you very much joining us, director of bruegle. what we've heard first, very clear lines around the green and digital agenda stepped up the targets and also bringing up the industry to the future of how to modernize them, money for super commuters. what do you make of what we've heard so far >> i think the speech is a far reaching and wide speech the new headline is the climate

targets i have to say on the climate targets the real prove in the pudding is in the eating. 2030 is literally tomorrow when it comes to climate emissions you need massive investments and stepping up of the pricing of carbon emissions we need much more emphasis on the carbon emission pricing and making it more expensive for people to consume co 2 and emit

co 2 and i thought the emphasis on green bonds it is okay but a little bit of a side show here >> interesting point you raise about the green initiatives and corporates who have managed to hit their corporates earlier how they are traditionally positioned it sounds like they'll achieve much moreover this next decade >> that's right. it is in a sense the easy part of climate change, mitigation and a reduction has been achieved those companies that can easily green, they have done so at least partially. now the tough part that is our transport sector, industrial sector and many day

to day activities, airline industry and all of those areas. the technology is starting to be there but it is not yet fully competitive. you have to price the emissions. there is certainly trade off here between the growth agenda, the recovery and the tough climate agenda we are a little bit too optimistic when in brussels, the commission when it says, well, doing this tough agenda is a growth strategy. at the beginning, it will not be it will be a cost to business and consumers. we better be honest with citizens about it.

i think we have to do it we have to be honest to citizens that this is not going to be a piece of cake. it is going to be quite a tough thing to our economies >> when it comes to the commission's spending plans within the recovery fund, a lot depends on how that money is spent and whether it is quality spending you raise the point that it is not only the spending but the governance how do you think the commission under von der layen is improving. are they doing enough to pave the way for quality spending >> i thought we are very vague at the moment. the commission is vague on how it wants to ensure money is well spent. there is general reference to

processes. there is not a lot of clarity and strong emphasis on good governance basically, political accountability what i'm arguing is that we need to empower the european parliament to hold the commission and hold the institutions to account on how the money is being spent hold to account politically. not just a technocratic way but a political way. this is the biggest eu spending program and budget if you combine the regular budget with this special crisis budget the biggest budget in the europon union. you can't just say we will spend the money well

the place for that is the european parliament. the commission did not mention at all that parliament should have a strong say on this. >> thank you for joining us for the reaction we are going for quick break here apple unveils a string of new products and services as the tech giant looks to widen its customer base. we'll look at the latest releases after the break

welcome back to "street signs. these are your headlines jp morgan ceo jamie dimon tells cnbc the fed has done enough as the fomc prepares to relace the latest forecast. >> right now, they are so wide open, they don't need to pump it up anymore let nature take its way. eu commission president

evokes the european spirit in her state of the union address hailing the block's collective action in the face of the outbreak >> europe has put in place its own common tools to compliment national fiscal stabilizers. this is a remarkable moment of unity in the european union. this is an achievement we should take collective pride in >> inditex shows profit and says rapid recovery is on the way shares of apple is on early gains as tim cook unveils a fitness service and new watch and ipad >> health care providers are also seeing the benefits of offering an apple watch. they know it can make a big difference in the lives of

patients, customers and employees. it is a big day of action. let's look at the fx markets the euro and sterling trading further. one of the focal points will be the forecast we are expecting a rosier picture for this year. investors will be watching those longer term outlooks to 2023 a decent dayon wall street but we did see wall street give up about half of the gains. it looks as though they will continue to look towards a positive start one deal we are close to watching, that is around tiktok. president trump says a deal with tiktok and oracle is close after the u.s. committee on foreign investment reviewed the partnership yesterday afternoon.

trump also praised oracle's approach to the agreement. >> we are going to make a decision soon. i have a high respect for larry ellison. he's a terrific guy i've known for a long time. we'll be looking at the tiktok deal with larry ellison and oracle >> geoff spoke about what is next for the company after the takeover bid >> looking for the announcement to be made publicly. we will go with the commission where we will enable the organizational success apple is bundling television, music, gaming and cloud into a single subscription called apple one with prices starting at $15 a month.

unveiling new watches and ipads and an update to the biggest seller, the iphone is not expected until later this autumn they also rolled out a new virtual service for work outs. >> i love hearing the stories of how apple watch helps people and enriches their lives health care providers, insurance companies and businesses are seeing the benefits of offering apple watch. they know it can make a big difference in the lives of patients, customers and employees. >> let's bring in our gust richard, huge focus on the watch yesterday. we saw various different categories $399 at the top end to the bottom end under $200.

despite apple players being the top of the market, only 10% of apple customers have a watch so it sounds like there is more potential for this cross selling opportunity. >> exactly you go back to the second quarter profit last year and look at where the stock is today. that is all to do with the cross selling opportunity within that eco system on things such as the watch. apple throughout and effectively taking the limelight away from the big block buster expensive devices. we saw the same strategy with watches and ipads and the

computers. do you think you will see the 5:0 celebrated benefit where apple cannot afford to stay in the eco system >> certainly doesn't help. we have seen with some of the currency moves and emerging markets. we've seen the addressable market here as they've done with the phone that takes on a share where you need that lower price they are emphasizing as ever before come together launching these products or do you think they've

undertaken strategies in the pandemic and all these changes we've seen >> all of these after several years in the making where they've tweaked what they have in the pipeline. more emphasis of haejd fitness and staying at home and not being able to go into gyms this has taken all of the newbie hafors and running with that even as an easy to use, strong eco system we are all comfortable with >> the glaring emission was the iphone a lot of people are expecting that to come through in the next month. is the iphone still the most important thing to apple >> it is as i said on the share price and the weak iphone in the beginning

of last year with a look of what stocks have been they always thought it would be the next nokia it has proven that apple is more of a software company, a platform company able to sell beyond the iphone in the halo affect and the services and why the stock is rated at a premium. >> we've been watching at the market valuation just magnifies the problem with europe and asks the question where are those tech companies i do want to give it air time. the commerce company has jumped 30% on its first trading day the first debut since the start of the crisis. also the biggest since back in 2013 what do you make of the

opportunity here and what the company brings to market >> very interesting company. a lot of the trends they are benefitting from accelerate from the crisis online beauty and others have been exacerbated in the last couple of months to be able to sell that technology to other brands particularly on the beauty side. brands that have not been able to sell offline because of the challenges we have had can use the hut technology to provide a lot of the difficult things you need to be able to do that with websites in 190 countries and do that from the back end and what they've learned in their experience moving their own brand and now using that for other brands >> we've clearly seen a lot of appetite for the new economy those areas that can benefit on the back of covid.

online purchases, connected devices with apple are one of the areas from software products, sas with microsoft connecting people remotely what are you making of the pricing. on wall street, stripping the nasdaq and taking it to correction territory the question raised can any of these justify the valuation. how much is there for investors going intotechnology >> i think technology is so much broader than it was back in 2000 it is quite tricky to make a lot of the trend we've been talking about in the last 10 years, 20 years have been accelerated post this pandemic

there are stocks that pocket and both the beneficiaries and technology that led to a lot of volatility and valuations we feel in the extreme. with very high profile names as well mainly because they've done so much better >> global technology fund manager. i must say from the virtual workup from the launch makes you wonder of the brand-new. i'm a gym junky and i've only

done one online streaming class. i think you are one of the early adopters here. >> i have tried them apple's announcement took place in the middle of the peloton call the ceo weighed in and said they thinks this a good thing for the overall market it actually elevates the whole market there are so many choices out there. it's a booming industry. we'll have to compare notes after the show when we come back, we'll be talking federal reserve. the fed is set to hold the final meeting before the election. we'll have more after the break.

we've had firly muted action on the markets one of the exceptions is crude as hurricane sally prepares to make u.s. land fall. oil output has been disrupted.

a warning sally will likely bring historic, life-threatening flooding along the portions of the coast. speaking to geoff, jamie dimon called for further stimulus >> governments around the world took action. i think that is very admirable of course, we'll be finger pointing for years about the part that didn't go well it is a little disappointing we haven't come together in the united states with thele second round here we do need that round. carefully open up and get this economy growing for the sake of everybody. if we have another down turn, okay, you could have serious economic problems, social problems, et cetera.

governments should be thoughtful in terms of opening up >> the federal reserve is expected to keep rates on hold the conclusion of the two-day meeting. investors will be keen to get further insight on the new inflation policy to discuss the expectations in more detail, chris campbell joins us now great to have you with us today. it sounds like investors are firmly fix ated on the predictions. not just this year but out to 2023 what are you expecting do you see any sign the fed is going to overshoot the inflation target >> they have modified the way they account for inflation they'll meet their targets as the economy starts to reopen we'll start to see that.

there are risks to that as well. the fed has been providing a lot of liquidity as the economy opens jobs here in the united states, the chickens are going to come home to roost on that if things don't pick up in the united states, interest rates will have to remain low because of the large amount of debt we have raising inflation is really off the table. certainly through 2023 and perhaps beyond the fed will have to be creative on how to tap out of inflation even using new metrics because of the challenges and what that can mean for the long term for the economy. >> this is the last time they will meet before the u.s. election having the congress and the

white house take more for the federal reserve. do you think he's going to have a hard line pushing for stimulus today? how do the politics give in here given the recent weeks >> you read my mind. the large challenge is because we are deep in the heart of a deeply contested political campaign in the united states. for both sides, republicans and democrats, i don't see a real significant chance of a deal, other than there needs to be one. providing another round of ppp loans and cash infusion for those americans on the lower end of the income scale is desperately needed right now, especially going into the fall if we see another round or rise of coronavirus on top of the flu, it's going to be a real strain on local and state

economies and the national economy. while there is low likelihood we are hopeful p but i do believe powell will lock for one >> markets wondering how much more today and you could see moves in the market to a weaker dollar higher. you could see a break out of these ranges what do you think is the potential of that? >> i worked with powell when i

was in government. i think right now because of the many challenges facing the economy, really right now, the heart of the campaign, we'll see a lot of the significant moves of the fed we'll have to read between the lines and expect those subtle expectations we will take. going to the fed especially this close to the election. >> one of the updates will be around the longer term projection of 2023 how much stock can you look in that we've got the unemployment rate much lower than what we saw in the medium forecast. how much stock can we see for the line two to three year's time the federal reserve has some of

the smartest people working in it jay powell is one of them. no one knows what the future holds. es asbest especially now that we don't know about the vaccine all they can do is make their best predictions and make moves on those until the end of the day when we get a vaccine and we establish a new normal, there is really no significant great way of making predictions that will be in anywhere close to unthinkable until then >> chris, thank you for helping us we'll take a look at wall street and how we are posed to open on this day with the federal reserves green on the board for the futures. the u.s. market gaining 0.5%

the third positive session we did see u.s. markets lose steam late in the day. it did manage to hang on to early gains. u.s. production data rising less than expected by august. we did see a revision in july. fairly steady as she goes in terms of data. the stoxx 600 up above 0.3%. that is it for karen and myself. that is it for "street signs." you've got "worldwide exchange" coming up next and our coverage of the meetings will continue here on cnbc i feel like we're forgetting something.

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it is 5:00 on cnbc stocks trying to add to yesterday's gains as investors await the fed's latest decisions. under fire, fed's with the investigation of nikola under allegations it misled investors. >> and lawyers prepare to file an antitrust lawsuit in zuckerberg's company >> and sally