jerry yellen was saying that her main concern was housing. -- chair yellen >>.e heard fed governors say we are watching the situation globally. he said that, the market trod. -- market shrugged. investors are trying to include the effects of ebola, which is a huge unknown at this point. this is not going to be a widespread problem. every time you get a new headline on it, the market operates on logic. you do see these swings in sentiment related to these concerns over ebola or some of the other global growth concerns. economy is on solid footing. when you see an ebola headline, that can be a scary thing on a human level and we see that affecting the market. you've been talking with people for the course of the past few weeks. >> people started to see more strengthen the treasury markets. people started piling back into the more safe haven investments. more than $1 billion went into u.s. government debt exchange traded funds. money has been moving back. biggest leading indicator has been the price of oil. that speaks to the possibility of deflation and the possib

janet yellen monitoring that.s through all the day on bloomberg television, radio and print. >> our twitter question of the day is apropos. to market respond volatility? >> 26.25, which is elevated. >> what is the average, 20? >> yet 20. >> the current level is double where it was. >> who has a single best chart? a sub returning financial markets kind of day. if you wanted an early indication, our chart find you might have found in bond yields. spread or the difference and yield between 10 year corporate bonds. is the 200 day moving average, the long-term friend line. above theago it moved trending average. it was aything else fairly sharp move. two days ago it was 30 basis points wider. we pay attention to this because the spread is a premium that investors demand to own high risk debt. when it widens -- much goes backow to the fed, effectively saying that at some point we will raise rates and all of a sudden there is no longer a place for these assets. beat toward the breakout that we saw before the financial cr

we might talk to him about what janet yellen had to say.ave a speech on growing inequality. >> the boston fed summit. ," theregan, "street smart top of the hour. thank you so much. >> see you there. >> stay with it. "bottom line" on bloomberg television continues in just a moment. ♪ >> builders started work on more homes in september -- housing starts climbed 6.3%, surpassing the million-mark for the third time this year. a senior economist at wells fargo joins us from north carolina. mark, welcome back to "bottom line." did to see you again. -- good to see you again. >> thank you. >> why does it seem like it is two steps forward, one step back? all we haveeally been able to manage and a lot of that has to do with the damage done during the housing bust. a lot of folks are feeling uncertain about job prospects. we recovered all of the jobs lost during the recession, they were not quite the same jobs that were lost. more peoplemillion working today than prior to the recession, but we have 2.6 million fewer people working full-time. nota lot

his janet yellen the central banker to the world?reuppose it depends you stand when you consider that. the u.s. economy is the biggest economy in the world, so she does have that mandate to set a point of view. that is not technically her mandate. first and foremost, she has to try to generate growth in the u.s. economy. we have had a lot of debate about this from the central bank governor in india saying that the fed need to be very careful about their policy because of the impact it has. >> that is the point. this is the key point this morning. janet yellen fx what goes on in other nations, whether it is malaysia or germany >>. >>i want to talk about the brazilian currency this morning. they announced surprise rate hikes to control inflation. inflation is higher than estimated in brazil. they say there is going to be a fiscal adjustment that was described as violent. issue turning or flailing? -- is she turning or flailing? >> the market is very skeptical of this president. the market wants to see economic reforms. until we see tho

he said to you yellen also agrees there is no need -- >> whether it is me, janet yellen, head of european central bank, and this is interesting, he wanted to make sure i got in the governor of bank of india. there is apparently questions whether india will go through qe. he said we do not need more monetary stimulus. >> basically ruled out yellen doing a qe4? >> he did. what he did, he said janet yellen and i agree what is necessary for growth is fiscal reform, not monetary policy. melissa: what do you think of that? >> that is best news we've heard all day. >> not for the market. >> it should be. not for every trader at this moment but generally, if there is now realization that monetary policy can't do it. more money printing can't do i. you have to reform. this is a big problem in europe more so than the u.s. they have not reformed their economies. >> i will be honest with you. i don't doubt that he said that to you. i doubt that yellen -- >> sticks to that. >> think of this way. she is president obama's puppet to certain extent. what does president obama have in two years? he really w

janet yellen should be thrilled. wall street should move up the date of a fed tightening.ric that she keeps harping on unchanged -- a 2% increase. we are not getting raises and in that suggests the labor market is not tightening and she does not want to raise interest rates. how do she explained that to the market and the american people? >> had is the president explain that? we heard him outlining all of the major improvements in the economy and yet americans continue to feel not any better than they were a few years ago. that is the top issue for them going into midterm elections. >> his dashboard is looking like janet yellen's dashboard. this report and compasses the president said yesterday at northwestern university. by almost every possible measure, the u.s. economy is doing better since he took office. the headline number for jobs, both are good. both are improving. deeper into this report, you see the lack of wage gains. that is why americans might be heading to the polls and do not feel as good about the u.s. economy. he and janet yellen would have a lot to talk a

is that the first inannouncement as a whisper of janet yellen? >> i think what the fed is trying and will create is when they really start moving rates, everybody's going to know about it so there's a way to communicate it f. you lay out the plan and i would argue it's not that disruptive. i think you have to step back and put it in perspective of a 1% funds rate all we're doing is moving out of the emergency conditions that you were. required quantitative easing. 0% funds rate. we are not moving like prior cycles. all we do is move to a 1% funds rate and probably 2 or lower for a long period of time so i think as long as the communication is done effectively i don't think it has to be tremendously dislocating at all. >> i don't think -- i think that there is more likely to be a marching band going down constitution avenue two meetings ahead of that time rather than just a quiet whisper. they have got to signal it well in advance. >> that's for sure. maybe they already have started. good to see you both. thank you for your thoughts. >> thank you.

one of them is janet yellen and vice chairman stan fisher. rest of the group, i have never seen such a lack of discipline. >> i don't agree at all. >> i figured you would. >> i think the evidence is that the expectations for the federal reserve and for interest rates had been remarkably stable and what's out there, the mistake people make is listen to one person who may not be -- have the right call. >> that's what i'm talking about. >> i think it's comments of jim bullard and maybe suggested the fed may not end qe. >> not the only one. >> that's followed up of an interview of boston saying nothing of the kind and seemed to suggest we were right on track. comments over the weekend. richard fisher, as well. the plurality of voices led stability. >> i think -- >> i remember no idea, we looked at alan greenspan's briefcase to know the policy. you remember that. >> i'm from the old school. i don't think that these fed guys should be talking so much at all. okay in the actions speak louder than the words. but i'm afraid i don't agree with you on s

we will not hear from janet yellen. she will give a speech tomorrow.g the real question which is what are they going to do about interest rates? >> that's 100% correct. >> the markets are saying that we should not be seeing interest rates rise, possibly not until the end of next year or beyond given where we are with inflation and the economy. >> in our lifetime. >> the fed continues to say we will see interest rates rise by the end of next year. obviously, that's the big debate right now and one of the big uncertainties for the market. >> i was fascinated by your with nouriel roubini. interest rates would never rise. he said later rather than sooner. >> he was on with us early this morning. play with he says about ending quantitative easing. worst thing the fed could do is to abort it. will lose its credibility and give us a hard landing. maybe the decision will be made in june and will happen in july or september. >> for more on the fed future and what market participants are watching, i want to bring in david blitzer, the chairman of s&p dow jones i

janet yellen and her console in the bond buying program as planned. they may also underscore their troubles by falling inflation. in the last month, oil prices have dropped 14%. failure for nasa kind of seconds after launch from virginia, an unmanned rocket carrying supplies to the national space station first and a huge fireball. was owned by private company. the explosion caused no injuries. here is nasa pass describing what was lost. >> we did lose hardware with this flight. we lost quite a bit of research hardware, which we will work with the different providers to recover and get them opportunities back to the space station. in addition, we lost some spares we will have to replace. shares of orbital sciences plunged after the explosion, down as much as 17%. >> premarket trading does not like facebook. shares are down as much as 8%. projected fourth-quarter sales .hat projected -- that fell to phone ishe push working. pimco continues to have a horrible no good year. it is been trying to stem redemptions. pimco was running a total of $6 billion in

yellen as chair of the federal reserve. in fact, about one in six people think alan greenspan is still in charge at the fed. he resigned back in 2006. now, to be fair, ms. yellen has only had the job since january, maybe it will take her a few years to catch on with the public. i think she's quite unmistakable. >> how do you think ben bernanke feels? >> and still greenspan is the guy people know. >> that's it for tonight. thanks for watching. >> and i'm tyler mathisen. thanks from me as well. have a great evening, everybody. we hope you'll join us here tomorrow night. >>> "nightly business report" has been brought to you in part by -- >> thestreet.com featuring stephanie link from shares or investment strategies, stock picks and market insights with action alerts plus, the multimillion-dollar portfolio she manages with jim cramer. you can learn more at thestreet.com/nbr. >>> welcome aboard one of the san francisco bay area's most unusual art venues -- the artship. built in 1939 as a cargo/passenger ship, the vessel's latest

janet yellen is expected to begin speaking in about half an hour. european markets are rebounding and equity futures are in the headlines. i will be joined by three leading voices to put this volatile market it to contacted -- context -- here is a look at our top stories -- a big third quarter for morgan stanley had earnings that almost doubled beating wall street estimates and one reason is an increase in revenue in trading stocks and bonds. we have heard that with other big banks. james gorman wants to improve returns on businesses. capitaluire less equity then trading. the next big appointment from the white house might be an ebola czar. president obama says he is open to the idea of naming a person to handle the u.s. response. >> it may be appropriate for me to appoint an additional person, not because of three of these folks of not been doing an outstanding job. they are working hard on this issue but they also are responsible for whole bunch of other stuff. >> in the meantime on capitol hill, republican lawmakers and plenty of criticism for th

and yellen said wages matter to her. i thought a good report might spook markets and fed talked about moving sooner. no wage growth, fed is not moving. melissa: good point. >> anthony scaramucci made a good point on twitter this morning this means we have a slow growth economy and fed doesn't have to kick in anytime soon. status quo and market loves it. remember joe fami on the show predicted couple weeks ago. interest rates not going up. melissa: despite isis and ebola continuing to dominate the headlines most americans think the economy is the biggest issue facing the country right now. this is according to a new "fox news poll." terrorism has gone way up to 19%. it was 3% before. still the economy dominating. 59% of voters are dissatisfied with how things in the country are going right now, compared to four years ago. >> i think t a really bad statistic coupled with the terrorism ramping up. listen if you talk to any political guy like karl rove or they will tell you, these numbers are not good for the democrats in th

janet yellen said so. tothere a downside transparency? trish regan joins us. an op ed on the communications strategy. >> in usa today i did. too much information. normally journalists recognize the value and all that communication. we like that. but we are in a situation now moving basedket is on what they think janet yellen is doing, and not even what they think. they know. it is being telegraphed so far ahead of time. what i am asking here is, why not have a little mystery between the markets and the fed? it is very interesting, mark. prior to 1994, the fed never told anyone when it moved on its interest rates. you had to gauge it based on what happened, and in the market the next day. we do not want to return to that, but it seems since and continuing with janet yellen, there is this desire on behalf of the fed to give the markets so much information. --ok, then is it the market' problem based on how they are interpreting it? >> you have a market that, i think, is overly dependent on the word of the federal reserve. i am going to value this market based on

inside that suv is the fed chief janet yellen making one of the biggest moves in years. this will move the market certainly. and in a crash test, it determines which cars are safe for you and your family. t ty's out today so simon is my partner. hi, simon. >> this is a historic day for the fed and we have key coverage up on every aspect. diane olick on mortgage rates. kate rogers on what it means for small business lending, kayla tausche and steve liesman on whether it really marks the end of fed bond buying. let's start with our senior economics editor, steve liesman. >> two years later, the fed set to end the bond purchases or quantitative easing that launched in the wake of the financial crisis. now it stands at $4.4 trillion. that compares to under a trillion before the crisis began and the plan is to keep it there for at least quite some time and the result is that just because qe3 is ending doesn't mean the effects are going away. the fed has said it's going to hold onto the balance sheet until they start raszing interest rates. that's not expected until the summer

>> i think so and the question i can't answer, scott is how janet yellen how concerned should be with three decents. we know go of them. and i don't think the market cares that much. three begins to be an issue for how well she controls the committee. it's worth monitoring but ultimately i think the policy is made on a sort of yellen, evans, rosen grand. the doves seem to be more in control now and they are very patient to wait. these guys are very concerned about having to go back. they are going to see the whites of the eyes. they are going to see the pupil and the irises before they chute on the issue of raising rates. because what they have seen is place where is the central banks have had to go back again and that hasn't worked well. so they are going to be sure they are on the way up and can keep going there. >> all the paul richards saying that the rest of the world doesn't look that good why we're talking about captain america today. stocks up, rates up, dollar up. how should we be thinking. >> first to react to steve. i actually believe yellen is going to take considerable pe

>> janet yellen will speak at 8:30 a.m. about income inequality.l have on the current situation the markets but martin feldstein is joining us as well as gun hubbard. ' coming up on >> looking forward to it. that begins in 15 minutes. >> it's like a countdown. >> we are helping you countdown to the market open. open,ms of the market apple will be reporting earnings we've lost our focus on earnings because of all the turmoil we have seen this week. will the focus returned to earnings next week? >> i certainly hope so. i think people can start focusing on fundamentals again. >> we will be right back right here on "bloomberg surveillance." ♪ >> good morning, everyone, futures are up 26. monday, stephen king of hbs -- of hbs just -- hsbc. good morning, everyone. "bloomberg surveillance," with me is scarlet fu and adam johnson. around.etter tape all the turkish border gets the headlines as the islamic state takes territory in syria. isl second front, consolidates power west of baghdad. control of anbar province is precarious. general savridis launches h

yellen is trying to address a structural problem with a creative solution.rk, and that is why the fed forecast has been wrong five years in a row. the imf forecast has been wrong five years in a row also. they lowered the forecast, but christine lagarde was actually candid about it and saying that it was getting warring that they were wrong every year. >> on bloomberg surveillance this morning, we were saying that we were actually turning to alan greenspan's oasis. this divergence, the u.s. economy nearing stability while the rest of the world slows down -- and i >> since jim said we are in a depression to mine going to say that he disagrees with that. >> first of all, it is slowing down. japan is slowing down and china is slowing down. >> and look at the numbers out of germany. >> it is obvious that the world is slowing down, but the u.s. has been kind of pulling the world up. gold has not changed much in real value in about 5000 years. when people say it is up or down, if the dollar is the new measure, yes. but gold is constant. compared to the price of go

this is a conundrum for janet yellen who says we will know it's time to raise rates when we see wagesnet yellen thinks there is a lot of discouraged workers coming into the labor force holding down wage growth. the economy has created almost a million jobs in last four months postop -- in the last four months. the participation rate is still falling in the labor force. in recent years, the historical relationship between wages and workers has broken. during the recession, the supply of workers went up and demand went down, but wages did not fall as they should. they did not know up much, but they did not go down. so does janet yellen keep rates low in the hope that this eventually works out or does you raise rates because there's less in labor market than she thinks. but there's no right answer, is there? >> that is the bottom line. if we are this close to full employment and wages are not rising, they be we are actually this close to full employment. fulled says 5.5% is employment. but we got into the threes during the clinton administration. goldman sachs sent out a note saying not

they took us out -- melissa: you just called janet yellen the devil? >> i will play devil's advocate. they took us out of a deep financial recession. markets gone up to 17,000. they will disciple late. >> who is this man? melissa: one at a time. one at a time. >> my twitter page is blowing up. >> in addition to japan, we're more than halfway through earnings season. numbers are good. we got a good gdp print. that doesn't hurt. >> why don't i get anything? melissa: because i didn't like what you had to say. starbucks wasn't to deliver you from the drinks long lines. they gave a weaker-than-expected outlook for the quarter. i love this idea. we're supposed to focus on earnings. the fact they said they would deliver to your desk? coffee? really? >> i like some starbucks and cost me 2.0 about tore a cup of coffee? why is that? that is my biggest problem with starbucks. i couldn't care less about this. >> i always thought overpriced coffee was a fad. i now think it isn't. you will get pretty heavy drone traffic in big cities now with all of these new delive

janet yellen did something she has not done before. she made comments about the detrimental effects. this is a conversation that people don't study, don't have stuff to do with it. follow something else in life are saying this is creeping in and will effect us all. does creeping and growing inequality effect us all? >> it's unfortunate, but economies that are very healthy, you have a lot of range of incomes, rich are very rich. the poor are pulled up because of all the venture capital investment and all the risk takin taking that the rich do. it's not necessarily bad. i was amazed by yellen's comments because the whole strategy of the fed, and she was a big part of the fed's strategic thinking for many years. >> she's not new to the fed. >> she's not new to the fed, and she endorsed bernanke's plan to bring down real interest rates to raise asset prices. who did that benefit? >> those who are assets. people who have houses and those who have stocks. >> i thought that was confusing because the people who have benefited in the last few y

later today look out for comments from fed chair janet yellen. check out sterling. sterling is lower after the bank of england official comes out and says the recent inflation is making him gloomier. after the break russia is back on top of the agenda. we had to milan as putin natural gas cut supply. in the meantime we want to talk markets. move" is back in two. the virgins is back. do you think that continues? >> i think the divergence should continue. we have seen a bit of convergence. as i mentioned, i think the treasury yields are much higher. i think they will stay here or go lower. that is what the ecb is committed to do. i don't think the surge we have or spanishek bonds and italian ones is sustainable. i think as a reaction, greece wants complete withdrawal from the program. i think that might have been the perception, but that is not the reality. some grounds has to stand on as far as renegotiating. fiscal balances -- greece has some grounds to stand on as far as negotiating. even the imf suggesting there might be -- we might be on the precipice of a cycle

speaking of fed folks, janet yellen sounding the alarm on income inequality.he fed chair saying it could seriously harm the u.s. economy and extent of inequality in the country which she pretty much created greatly concerns me. @rony here, because it is the fed's fault. they are the ones who juiced markets higher. >> irony? hypocrisy. one thing caused the wealth gap to expand rapidly, obama-nomics failing middle class and fed juiccng stock market so rich people take stocks they bought at 6,000 back in march of 2009 -- melissa: she is worth -- go ahead. >> melissa, inequality is an issue, just a metaphysical fact of reality. people are not born equal. @eople are not equal. some achieve more than others. think to charlie's point where equality, where the shame, treats people. how government giving advantages to certain groups and taking from others. >> don't forget, yellen appointed by president. melissa: right. what insight does it give you what she may be thinking about? if she says she is worried about income inequality, do you try to read into that what she

janet yellen is gettiigg3 -@political. consider this.e said the extent of and continuing increase in inequality in the u.s. greatly concerns me. now, all right, charlie, if she says inequality affects the economy, i think that is fine. >> just generally we are nonpartisan. ben bernanke certainly was a partisan when he dealt with president obama. there is a hypocritical aspects to all of this. janet yellen is the era when taker. it has benefited the rich people. they made billions. millions of dollars during this period this is a fed driven any quality. stuart: let's be clear. it was trillions of dollars. they pumped it out there. they put interest rates at zero. >> if you are rich enough to be able to afford a stock, your -@stocks went from 6000 to 17,0. stuart: pumped up by the federal reserve. this is so bad for her to go out there and say talk about any quality when she is the main corporate. stuart: you better know that we have a rebound. you predicted that the dow would hit 172. are you sticking with that tiieframe and that size of

it is true of ben bernanke and janet yellen and it is true of mario draghi. deal with more fundamental issues. >> the imf singles out russia and japan. what do you feel is weighing on the economy boast -- most? >> all of the above. and the china thing is very serious. no one believes the numbers coming out of china. much slower than things are there. brazil is not working. to imagine fundamentals changing even after the election. you keep coming back to north america and the united states. we are the one potential bright spot. but again, there are real questions. whether congress and the president, after the midterms, whether there is any possibility of working. >> tom keene, you are never this quiet for this long without something going on. >> i'm just looking at the markets. the german 10 year yield is stunning. olivia is right. they will do nothing at this meeting. >> nothing at this meeting. >> i just think it is a changed bond market. >> hard to believe. here is our twitter question of the day. what is your investment strategy as stocks selloff? ♪ >> goo

that janet yellen and european central bank president mario draghi agree with him. with rising dollar and continue, will the rest of the fed go in a different direction? liz: will ebola fears intensifying, what do you do if your employees need to travel? we're speaking with a company that provide emergency medical help for its clients. they recently helped two doctors evacuate in a ebola region. ♪ liz: this is a big one. dow component american express reporting just moments ago. let's head back to nicole petallides on floor of the new york stock exchange with axp. >> axp, a beat and a miss. earnings per share coming in at a buck 40, versus estimates of 1.36. that is the beat part. the profit looking good. however revenue numbers come in a little bit shy. revenue 8.33 billion, versus estimates of 8.35 billion. you're seeing stock looking to the downside in the bid-ask in the after-hours. american express says revenues continue to rise at steady pace but growth is over long term. loans continue to grow. that is something else that they noted. their profits topped esti

janet yellen and her console in the bond buying program as planned.also underscore their troubles by falling inflation. in the last month, oil prices have dropped 14%. failure for nasa kind of seconds after launch from virginia, an unmanned rocket carrying supplies to the national space station first and a huge fireball. the et

with all you have as a hammer everything looks like a nail, more q e from janet yellen. stuart: thank you very much. >> you are seeing this volatility in large part because governments tried to d risk risktaking, tried to stimulate the economy, interest rates at historic lows, and said 2 traders we don't know what they're going to do next, you need risk-taking in the economy to have sustainable, normal growth and continued to see this volatility. >> some of the deals that blew up. they fly to quality. it is a huge deal and why did deals like that blow up? because of u it speaks to a bigger issue. stuart: and certainty, lack of leadership from the top. >> easing is all we got. >> my point is there's risk in this economy because government is trying to take risks out by propping everybody up, dropping the market up, dropping the economy up. they got to pull up and we need less government, lower taxes, more certainty. bernard: when you get a big round of applause on sat one. i want to get to ebola. the trigger that got things going to the downside earlier this morning. a se

public and private. >> is janet yellen boxed in?n shek more realizes, and i think more than the market actually realizes because the key thing is we have a flattening in the u.s., what we have is financial oppression abroad and at home, we have low demographic -- >> is janet yellen going as elsa or anna? >> we have researched this morning from goldman sachs. i want to ask you about inflation japan now, however, in the risk assessment of the outlook reports, the price outlook are to the downside, attaining 2% price ability target still looks very challenging. >> in the u.s. we will not even see a to handle in terms of inflation, 2016 at the earliest. >> gary langer, this goes right to the angst of the american people. >> nobody is coming home and saying hey, gdp is up, let's party. [laughter] >> that is the quote of the day. >> we are going to come back with the humorous gary langer here on the polls as well. >> out twitter question of the day the following -- what scares you the most in the markets right now. tweet us @bsurveillance

one is, you know, it tells us a little bit, a little something about janet yellen because, yellen waseen as uber dove when she took this job. she had kocherlakota dissent against her a couple of times and a couple of hawks dissenting against her. what we see yellen as fed chairwoman trying to strike a balance but willing to upset not only hawks but doves. that is one thing interesting. i was talking with my colleagues earlier, you don't have to read the fed statements anymore. go to the last paragraph to see who dissented. if a dove dissented, all right it was a little hawkish. if a bunch of hawks dissented you know it was a little dovish and. david: there is your formula. liz: read jon hilsenrath in the "wall street journal." david: of course. liz: jon pointed out the better assessment of the labor market really solidified the story. jon hilsenrath, thank you very much. david: thanks, jon. we want to know what you think about this. could the fed be forced to go back to more bond buying? send us a message on facebook or tweet us @fbnatb. we want to know what you think. your answers co

i think that chairman yellen will do what she wants to do. she has enough information to tighten she could point to the unemployment rate. but if she wanted to pause or keep it dovish and kind of think she may lean towards, she obviously has the issues with wages. when you have zero wage growth and she's highlighted real wage growth as something that she's concerned about, you actually have to have the cpi level fall in order for real wages to rise in this environment. and there's a separate data point weighted to this -- >> i want to interrupt you for a minute because it's really important point you made. factoring in inflation, a zero wage gain is negative. >> yeah. >> people going backwards there. i want to make that clear the people. >> absolutely. so the anxiety, steve, you were saying there's anxiety around the number and headlines came in and people felt better about that. i totally agree but i think the anxiety won't go away, certainly away from wall street. on main street. where the fed's triannual survey came out recently and talk a

i would like to know if he was janet yellen, would his interest rate policy still be at 0? you can't have it both ways. >> phil? >> i won't try to guess. >> if you're king, where do you peg interest rates? >> two italian guys fighting over something. that's not uncommon. we'll eat pasta and fight through it. i don't disagree with rick. i won't try to guess the market and say simply enough, if i'm janet yellen, i would stop quantitative easing here and wait to interest raits until we're at a point to see -- >> see, you make it seem like we're at that point. you're changing. >> wait, wait. >> this is the discussion we have every day. >> i'm saying -- equity market, i'm bullish. >> i'm talking the economy. >> i'm absolutely going to say to you that we are 50 to 60% of capacity of gdp with room to grow as the economy strengthens and then we'll begin to raise rates. a natural progression. one step at a time. not a leap. >> so if i was your client, you'd say, you should be long equities and tell me that the economy is only 60%? >> wait. i'd say be long equities. be smart. keep th

i know you weren't a fan of janet yellen. you opposed her nomination. you think about the fed's move at this point and where do you think we go from here? >> well, we'll see how the markets react today. the last times they've tried to ease back, the markets have been pretty jittery on that. listen, qe-1, qe-2, qe-infinity has been an unprecedented experiment with expanding the money supply. now, we have been benefitted to some extent by a reduced velocity of money. that perhaps has kept inflation in check. but i got to tell you, actually, for the average working american, inflation is a very real concern day-to-day. if you're a teacher, if you're a steel worker, you've seen the price of eggs go up. you've seen the price of milk go up. you've seen the price of chicken and hamburgers go up. you've seen the price of gasoline go up from $1.83 when obama was elected up to $4. it's still over 50% higher than it was five and a half years ago. you've seen your health insurance premiums skyrocket under obamacare. you've seen your energy bills skyrocket under the

janet yellen spoke up about the u.s.uture is not as bad as many have been suggesting in the market. the yield finished down by six aces points. the yields have fallen for eight days. the lowest oval for year. >> can you imagine if you were on the wrong side of that bond market? index dovety touching levels you have not seen since 2009. the lowest since may 2013. what you're seeing is a big change. the strong dollar story does not cover it. how about the oil markets? -- i do not opec remember much about 1986. but if it is going to be a rerun where you see a collapse in prices, lloyd's register told us get used to $60 because everybody is producing and the asian market can choose where they want to go for their oil. there was a fascinating comparison. >> we will continue our coverage. interview with eight -- our guest from the inf. >> and recommending to shareholders vote against the $61 billion takeover of shire. good morning to you again. i guess up to speed. >> the price move we saw in shire, it seemed like the market d

. >> take a look at those boards will stop after janet yellen's remarks, stocks took off.hose markets extending those trades and the s&p 500 up about 1.2% of stop and then nasdaq one point 25%. many speculating interest rates will remain low for a lot longer. taking a look at some of the other movers in the session, we are watching sears -- one of the stocks tanking currently, off about 8%. at one point, it was off by about 8%. this is as insurance companies are mentioning they may reduce coverage. the company issued a statement in response to this, saying they are in a good financial position and have been and shall flexibility and they are meeting all their obligations. another stock i'm watching is monsanto -- a world's largest seed company. they issued a statement that trailed analysts asked -- analyst estimates. they say they're leaving farmers with less money to spend and worsen their ability to raise seed prices. we are on the markets again in 30 minutes. ♪ >> welcome back to the second half-hour of bloomberg "bottom line. jcpenney shares are falling the most in mon

that's the flaw in that. >> this is a victory for janet yellen.ell her that people are out there and available to work and do not hold strong leverage when it comes to coming back into the workforce or to going to work. if they're willing to go to work -- >> steve, can i add something to that? i think what we're seeing here, the simple indication of this is that we are on a path of going more hawkish while at the same time europe is going more dovish. what we get to do here is we have low rates but the fed doesn't have to worry about rates going up any time quickly because europe's doing the heavy lifting for us. so if you want to see what the dog is, look at dollar/euro. as larry said for years, we want king dollar. if we could have king dollar at the same time, we have real low rates. it's like we're getting the best of both worlds. i think janet's job is easier than most here. >> you're right. i just want to add the need for pro-growth immigration policy, a better visa policy for the brain y iacs. i believe yellen is a big dove. but i wanted to

now the question is just how long janet yellen and company will keep the fed low. you'll see the dow futures are indicated positive, up about 18 points above fair value. nasdaq futures slightly weaker. if you watch what's been happening in the early trading in the european markets, you'll see at least right now there are green arrows across the board with germany up by 0.8%. the ftse in london up by about 0.6%. and in terms how how things closed, the shack high, positive territory 1.5%. hang seng up 1.25%. andrew, it's not only the anniversary of the 1929 stock crash, it's the two of had year anniversary from sandy hitting our shores. >> that is true. i had not thought about that. thank you. thank you for that. let's tell you a little bit about some stocks that are on the move this morning. electronic arts posting better than expected results and raising its forecast for a video publisher getting cost controls and strong digital sales. falling short of that mid shares. panera missed the mark citing higher ingredient costs. then there's marriott. then there's shares

janet yellen and jack lew, mark carney, the u.k. chancellor george osborne will make efforts to solve a too big to fail issue with banks and financial firms. >>> now a texas worker becomes the first case of ebola contracted on u.s. soil. we'll have the latest on that developing story coming up next. >>> welcome back. more red in store for u.s. markets. futures point lower after the dow wipes out gapes for the year. >>> and fiat chrysler gets rolling with the ipo today officially emerging the u.s. and italian brands. >>> and the first domestic case of e bbola is contracted inside the u.s. >>> as we just mentioned, a texas worker has contracted ebola after treating a man who died at the hospital last week. the woman who has not been named is the first person to contract the virus in the u.s. she had close contact with mr. duncan. but it is unclear how this breach of protocol occurred. >> we are conducting a thorough investigation to figure out how this happened and ramp up infection control to do whatever we can to minimize the risk t

janet yellen, the fed. come on, man. this has got to be it, doesn't it?sn't somebody ringing bell? >> there is no wage growth. >> they've already given you a plan. they are stepping back. it won't matter. >> there is a little bit of wage growth, isn't there? >> 2% is keeping pace with a 1.7 cpi. >> most people are playing for dinner in this country. we have good jobs and paychecks. >> they've been focused on the unemployment rate. qe's over. >> then bernanke can't get the mortgage. people are going to say that is anecdotal. frankly, the fico scores, you have to have plus 700 to get it. there are reasons we haven't turned on the jets in this country. i think the idea that the fed has to do anything other than what it's been doing. larry kudlow, with be a unbelievable analysis how janet yellen talks dovish -- >> but will be more hawkish. that was interesting. >> there are things larry kudlow knows better than anyone else. i worked with larry for many years. when he speaks about the fed, it is not idle or anecdotal. >> we both noted it. >> it's brilliant ana

you can thank janet yellen. the fed said it will not raise interest rates anytime soon. the nice recovery from tuesday which was sparked by sluggish growth. futures are slightly higher right now. >>> the hackers who broke into jpmorgan chase may have targeted 12 other financial institutions. on the list, fidelity, citigroup, e-trade and hfc. some of the biggest names in the world. last week, jpmorgan chase confirmed hackers stole information for more than 80 million accounts. now investigators reportedly believe they took data from one other organization. all of this information attributed to people familiar with the matter. >>> breaking news overnight. another deadly police shooting in missouri. chaos in the streets. we have dramatic new video. >>> plus, a family sharing their story exclusively with cnn of how a routine traffic stop ended with police smashing into their car and tasing a passenger. ♪ all around the world the dedicated people of united airlines ♪ are there to support you. ♪ that's got your back f

. >> after fed chair janet yellen said she was concerned. >> widening inequality can be summed up as significant income and wealth gains for those at the very top of and stagnant living standard for the majority. i think it's appropriate to ask whether that trend is compatible with values rooted in our nation's history. >> here's what you need to know about income inequality in the united states. according tod national budget office the top 1% of households saw their after tax incomes rise, while the after-tax income of high income households nearly doubled, middle and low income households saw much less growth. let's bring in katherine rushland, she's a senior policy analyst at demos. katherine, thank you for being on the program. >> thank you for having me tony. >> what is your creak reaction e fed chair's words? >> it's difficult to read meaning into the fed chair's comments. but there's reason to be optimistic. rising inequality is a threat to stability and growth in the united states. secondly she rooted it in our deepest held values. she is in a position to have effect on the o

if you look at what janet yellen has been saying, the focus pretty much has to be on wages. -- it's fine to have a 19 variable scoreboard, but when seven are up and seven are down or flat, it is critical for wages. >> you did not live under a regime of polkadots, did you? >> i promise you that alan greenspan had a lot of of media. is anou should look at early manifestation of the slack in the road, i.e. kostin wage pressures. i don't sit there. -- the cost in wage pressures. i don't see it there. >> are the dots the issue? the problem is they are obstructed in and secure way, each individual participant saying what they would do if they were emperor. it is opposed to the appropriate policy, not the main outcome they expect. the fomc could be assuming that theirlleagues -- colleagues are idiots and that the path does not correspond to what they think. but it is conditional to all kinds of stuff. the reason why this is also compensated -- complicated is indicator of good what was happening in the market before was the unemployed men rate. today, it isn't. >> is that because it

you just came out of a press conference where you commended janet yellen on her guidance and communication. you believe the federal reserve is doing the right thing when being cautious on an exit. >> i think janet yellen is doing the perfect communication, in trying to give the guidance that is needed for the market to understand what they should expect. equally she's dealing with a complicated landscape. because while inflation should be kept under control, the job market is difficult to read. the unemployment rate has gone down for sure, 5.9, great. under 6. >> but where is the inflation? >> but the participation in the job market is not high. so she's dealing with difficult criterias and analysis. and i think she's communicating as well as can be done. >> it raises the question on the other side of the federal reserve amanmandate and we're sg economic growth but american families haven't seen incomes go up in the last decade. why? >> that's big issue which i believe the imf will do more work. the issue of the income allocation. whose benefitting from growth? and where is income going? h

. >> i thought it was interesting to hear janet yellen talk about income inequality.he federal reserve policies are probably the lead item that is widening income inequality. >> this is a huge and wide open topic for any political candidate. i still can't for the life of me understand why nobody has got on that bone and eaten it loudly. you have a policy to inflate. american cost of living in all-time highs. that created two-thirds of the country feeling like they're in a recession. negative wage growth. the fed has papers to suggest this policy to inflate did nothing but widen inequality gap so for her to whine about it, to me i would make a huge example of that and say obama, that's yours and you can own it too. people are generally mistrusting of the federal reserve. >> and mistrusting of institutions largely speaking. so what do you think will be the priorities? let's say the gop takes the senate. what does gop come out swinging with? is it tax reform? >> i think tax reform is a long, complicated issue. >> how about energy policies? >> energy policy is something w

they need yellen and, except, draghi to put a plan together. they need to put a plan together.now if they're going to -- tte fed is too reactionary. it's as if the market's down, and they're watching the tape and they say, oh, we've got to do something. they're almost too reactive to the market. liz: what they say and do might be two different things. >> sure. >> i think they're going to do it. listen, you mentioned this to me once over a beer, and it was one of the smartest things i've heard. president obama needs the stock market to stay where it is. >> he can't afford for it to fail. >> what do you do in the face of this? >> he appoints yellen, and if he gives the push, she's going to have to -- liz: well, george bush appointed bernanke, and he might have done the same thing. >> yeah. liz: joe, great to have you. please, come back again. >> thank you, i will. liz: charlie gasparino briigs him along. closing bell, 27 minutes away. the s&p 500 has turned positive but, agaii, we've seen this more than 60 times at least from the dow jones industrials today alone, up, down, all a