next, why jim bullard is skewering expectations of a rate hike.is bloomberg. ♪ who knew that phones would start doing everything? entertaining us, getting us back on track and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save when you choose by the gig or unlimited. call or go to xfinitymobile.com. xfinity mobile. it's a new kind of network, designed to save you money. rishaad: victoria harbor and the icc. 9:29 a.m. here in hong kong and singapore. we are counting down to the greater china open. given theflat start premarket here in hong kong. we are looking out or trade data out of china. on top of that, we are looking at the fence and private -- inflation. we've got u.k. factory output as well. industrial production for italy and france this week. i am rishaad salamat coming to you from bloomberg's asia headquarters. haidi: i'm haidi lun here in sydne

eastern time, kathleen hays will have an exclusive interview with jim bullard. joins us now from st. louis with a preview. james bullard is known for being a little bit of an outlier. what do you anticipate he might tell you about inflation today? kathleen: well, he is certainly -- it is great for being here and face for hosting a very special show. simulcasting this line. -- live. inflation is the biggest one. inflation has not moved closer to the fed's 2% target. it is pulling further away. jim bullard had been saying, i don't think we need any rate hikes right now. we are in a new regime in economy. growth is stuck at 2%. just a couple days ago, he said, no, the level of rates are appropriate. this is where they should state. that is one of the big topics i want to dig into.inflation has become a global problem. vonnie: i am pulling up a chart, kathleen. 884111 is the chart you can look at. how in fact will they start to pan off some of those securities? kathleen: he has pretty much been pretty clear. they have given us the outline for how they will start thi

louis fed with president jim bullard. just to recap some of that conversation she had with jim bullard, the president, ceo of the st. louis fed, jubilant saying i think we have a ways to notefore we -- he said i optimistic we will have inflation high -- high inflation by the end of the year. that the balance sheet, as well as we have a plan from the federal reserve about unwinding that balance sheet. he said he wanted that to start before the fed began to raise rates. he said the plane and rates now is a good land, in his words called it a prudent, he called it so incremental and so moving it's almost nothing preachy asked him about dollar dynamics and also asked him about who might make a good fit share when janet yellen's tenure expires in february. he said he would favor a phd economist but emphasize this would be president trump's decision. president trump is on a working vacation in new jersey. that has not stopped him from working on filling key appointments in washington. the president poised to nominate a longtime

eastern time, jim bullard will speak exclusively with bloomberg.omorrow, we will have the new york fed president bill dudley. we will also get the u.s. july pbi. on friday, the last month's cpi data. probably the most important date of the week. for a little bit of an idea what this will mean, i want to bring in jewel cracjoel. all eyes really on the cpi data for the most part on friday, right? joel: that's right. maybe a little context or background on this. earlier this year, measures of inflation softened. we know there were factors behind that softening. unlimited data plans introduced by a major carrier, some prescription drugs coming off of a patent, and the prices being brought down by generics, but there was a softening in prices as well. why do we think inflation is likely to gravitate to 2%? the fundamentals point in that direction. survey-based measures and expectations still support 2% inflation projections. second, the economy is doing well. labor markets are tightening. we expect 80% handling on the unemployment rate sometime next yea

this is what jim bullard is watching. this is what he said about it.a has called into question the idea that u.s. inflation is returning to target. -- newrent policy great -- curb, manye fillets say that it is broken. he has called for the balance sheet. but take a listen to what james bullard said earlier. james: i think we will be able going on what was have any before. i think it is the right thing to do. i would support getting going on this process. >> gimbal and said that he thinks that september is when the fed should get started. echoed jim in many ways. has been trying to get that number up to 2%. what does that say about the intentions? balancing thisat and by roll off will be very orderly. fed officials are not concerned. it will see how this barclays off. yvonne: thank you for doing this live from new york. samsungwe are seeing shares bounce about 1% right now. jay y. lee could spend 12 years in prison for his alleged role in korea's wide-ranging corruption scandal. this is the harshest criminal sentence ever shot by a major corporate figur

kathleen hays interview with jim bullard is live tomorrow 6:00 p.m.ondon time. >> republicans are discussing a when it comes to overhauling the tax system. they are trying to change the tax code without adding to the federal deficit. president plans to wait at least a week before the trade investigation of china. it officials say the white house is still concerned about possible chinese violations of intellectual property laws. south africa's main aftertion filed a motion -- credit card to has passed what they were in 2008. >> thanks a lot. ining up, jumping $2000 china deepens cuts. you know what is next. this is bloomberg. ando my from new york london, on vonnie quinn. >> this is bloomberg markets. to $2000.ping joining us now, brought battle -- further hashow much a golf for the short-term? >> that is a real good question. as a trading vehicle, it could keep rally. when you talk about a global commodity, you talked about demand. demand has seemed to rally in the longer term. may should have started cutting these illegals. remember, china is still a

jim bullard is speaking now in nashville.know what he thinks when it comes to inflation and monetary policy. he says this is a low inflation era, but it's not just the u.s. if you look in the bloomberg chart library, you will see that bonds not just in the u.s., but germany, japan, last week, all fell. >> this trend is global. so, too, is the week unemployment wage relationship. what we have not seen is a average hourlyin earnings anywhere. is stillreason, there this relationship between unemployment and inflation. it seems to have broken down across economies, which points to maybe a more complicated story. vonnie: brian, you're obviously looking at the 10 year yield. are you also looking at other and markets beginning to price in inflation at some point sooner than later? to seeill be interesting how tips do going forward. there will be a complicated relationship between, if tips are underpriced, you might want to be buying them now, but it's a complicated relationship as far as how inflation factors into those prices. that

the fed's jim bullard is saying sluggish inflation is putting rate hikes on the back burner.-- still looking for deals. anchor: iron ore and steelmakers on the move. commodity traders betting on tighter supply. not lie.he numbers do disney expects movies and theme parks to offset weakness in media. anchor:

louis fed president jim bullard saying only sees very small inflationary effects from lower unemploymentng the first fed official to speak since the friday jobs report unemployment ticked down unemployment does not signal higher inflation i want to show you a direct quote from the st. louis fed president. even if the u.s. unemployment rate declines substantially further, the effects on u.s. inflation are likely to be small. as a result, he thinks current policy rate -- the current policy rate is appropriate for the current economy and he questioned whether inflation is indeed turning towards the fed's it 2% target sarah, an hour ago we were asking the question how the fed would react to stronger job growth and lower employment rate, it would be spooked by inflation? bullard not taking much time in answering. an hour later, you know what not very much. the question is whether other fed officials feel the same way, sarah. >> yeah. so it begins now they really have to debate this inflation predicament >> thank you >> right >> yes steve liesman. now let's get to rick santelli and the "santel

we bring you the interview with jim bullard. dialed down risk.ned the chorus warning against risky positions. the dispute intensifies. is this the right trade? welcome to bloomberg markets, european open. i am matt miller in berlin alongside guy johnson and bloomberg's european headquarters in london. manus: 30 minutes into the trading day, let us take a look at how things are progressing at headline levels. it looks like london is in a performing today. you have got to remember that anglo has gone ex-dividend today, rio has gone ex-dividend today. maybe a little bit of disappointment surrounding a lack of money being returned to shareholders as we have had a conversation with will kennedy suggesting business is going on the acquisition trail. 21 sox ex-dividend on the stoxx 600 this morning. the bulk of them are out of the london markets. talking of the london story or the u.k. story, david davis describes a second round of brexit negotiations as difficult but productive. stickingighlighted points, whether or not a future trade deal should be di

jim bullard said it is not working anymore.show inflation developing and other economists are working on this to figure out whether we have entered a secular change in inflation dynamics. and if we have, that upsets all the models that that uses to figure out what is going on. nobody has come up with a great long-term investigation. they are still clinging to the idea that these are one offs. alix: do you still buy it? ebrahim rahbari: i wouldn't call them one offs in the sense that there has been a structural break and we know quite a few behavioral changes, in particular on the wayside since workers are bargaining differently when it comes to their wage increase and there are things they need to account. that being said, we think inflation is dead if we think about the phyllis curve affecting prices. we see evidence of it in different parts. it is not coming through strong enough to bring inflation as quickly as we thought. alix: we saw because of health care services rising 3/10 of 1%. that could be significant for cpi becau

louis fed president jim bullard had to say about the fading inflation numbers yesterday.he minneapolis fed president had some with thoughts on the subject. still with us is kit juckes. you referred to inflation and the mystery of where inflation went. the real question is -- is this likely to affect the trendline of rate hikes by the fed? kit: i think it provides the fed with maybe the wrong word, but may be an excuse of not to add on any given day. there's always the field that the path of caution is to be too slow and hiking rates and not too fast. if they come up to the run-up of any given meeting and economic data is a little bit soft or there's a little bit of turbulence in the world, they wait. that is why they only raise rates when the markets have completely prepared for a rate hike. in and's a 99% priced then they will deliver rate hikes, but they are not. they are very easy to dissuade. last year we had brexit in the u.k.. we had the volatility that came out from china at the beginning of the year. they did not get any rate hikes for most of the year. i think th