barry eichengreen. the most significant story of the day, i urge go,yone to follow tlive this concerns just how this government operates. ofhave mentioned a committee conciliation. one of the biggest banks in italy falling 5%. we will have plenty more on italy throughout the morning. this is bloomberg. ♪ rg. ♪ >> this is "bloomberg surveillance." let's get to the bloomberg business flash. changes are underway at a major fiat chrysler factory in italy. they will unveil a plan next scrapping has them two budget models for upscale cars. $5.4ays has agreed to buy lloyd's.f -- from lloyds has steadily reduced its presence in ireland. toshiba is on its way to selling its memory chip business for $18 billion. toshiba says the sale will close on june 1. it is trying to repair its balance sheet caused by billions of losses on nuclear energy. china has denied reports that it has offered president trump a $200 billion reduction in the trade surplus. joining us now is bloomberg's executive editor for greater china.

talked about risks to growth in the medium term rather than the short-term still with me is barr barry eichengreen just starting with you, guy. the language around inflation was interesting. growth wasn't really a story here, they dismissed the short-term weakness that we've had. the language being symmetric, how do you read that >> they could have been tougher in terms of inflation. they were trying to stress they would be relaxed as inflation moves higher the big issue for them is that the nominal inflation rates will be influenced by oil prices. remember that oil troughed in about june of last year, around $45 a barrel we're at $68 a barrel. the year-on-year comparisons are higher that will drive headline inflation up so, yes, underlying inflation is up i think the fed is in the language had to try and reference the fact that maybe we shouldn't be too fix aated on t headline numbers because of this oil impact >> you think this is a dovish sound coming out of the fed, though warning that we could see higher headline inflation in coming months, but not to read too much into it. >> i think that's