who released the video of him questioning the central bank head of you know the central bank of canada and he notes that the trudeau government is borrowing 3000000000. dollars a week you'll never guess how much the central bank is printing per week so he asked the central banker how much quantitative easing they were currently engaged and and the guy made it to $3000000000.00 a week and that this canadian member of parliament was like how convenient because we're also borrowing 3 value no week right so again this is confirming on a global basis from different governments and different politicians are waking up to the fact that the central banks are printing with the stated goal of helping the unemployed and to stimulate the economy. and as politicians and corporate c.e.o.'s are pointing out that stated goal is increasing unemployment and increasing the loss of purchasing power and increasing the plight of poor the poor but it does help those who are asset holders they are becoming fabulously rich so the split between rich and poor is growing spectacularly and in that video it's amazin

of weeks ago. i think the next big theme is going to be the fed tapering narrative. they are lagging behind other central banks. the norges bank, bank of canada. we are seeing emerging-market central banks that are very hawkish. so i think the fed talking about allowing themselves to talk about tapering means that they might signal things are moving the right direction around jackson hole, which sets you up for tapering early next year, which is our base case. so i think the market kind of has to start pricing this in, and what we see in our models is the dollar is running a little bit cheap. the global reflation narrative is a little bit overdone. we are starting to see a pause in the momentum around global reopening, and the biggest part of this trade is if u.s. breakevens move lower and real rates move higher, those would allow the dollar a rally. i would can -- i would call it a consolidation, but that would be a little more in the u.s. exceptionalism camped over the neck month or two. annmarie: i'm glad you mentioned what we saw from the bank of canada. tomorrow we are going to get the bank of australia. do they follow their neighbors? m

strength in the euro the bank of england today announced they're scaling back the purchases and joined central bank of norway to raise rates later this year and last week okay bank of canadaoking at the pound versus dollar drifting lower and the 10-year drifrting offer of a yield of 83 almost unchanged on the session. back to you. >> thank you. >>> still ahead, it is all about earnings medical device maker lower despite an earnings beat. >>> square reports after the bell today and payment stocks having a massive run which name shows the most payment prowess? our trads llissserwi dcu lately, it's been hard to think about the future. but thinking about the future, is human nature. ♪♪ at edward jones, our 19,000 financial advisors listen and work with you to create personalized investment strategies to help you get back to drafting dreams and building your future. edward jones. it is time for investing to feel individual. what happens when we welcome change? we can make emergency medicine possible at 40,000 feet. instead of burning our past for power, we can harness the energy of the tiny electron. we can create new ways to connect. rethinking how we communicate to be more i

changed, and we are not seeing a slippage -- the bank of canada, reserve bank of new zealand -- so i think the fed have a lot more credibility than other centralks. kailey: let's talk about the european central bank. our point does the euro become a problem area for the ecb, at what level -- at what point does the euro become a problem area for the ecb, at what level? derek: certainly the annual inflation. when you look at the euro on a trade-weighted basis, it is close to record highs, but the pace is still not at a level that i think would be problematic. we are talking potentially .1 to .2 percentage points impact on inflation. if my forecast on the euro-dollar were to materialize over the next six months. yes, they play lipservice to that being of concern, but i do not ultimately think it has a huge impact on overall inflation dynamics at the levels i am talking about. guy: can we come back to the issue of credibility? you firmly believe the fed will do what it says it is going to do. what about the bank of england? we had comments yesterday talking about the possibility that we could get rate hikes next year, and that puts it in line with

. >> the bank of canada has already started tapering does that make your job tougher if different centralks, major central banks go at it at different speeds >> i don't think so. you know, sara, the bank of canada has a mandate to focus on the canadian economy and they do a very excellent job. we have a mandate to focus on the u.s. economy again, we are going to -- we set out a test for what will be required to begin to scale back the pace of our purchases and ultimately normalize policy rates. and so, no, i think different countries are going to approach this with a different time frame potentially. but we are all trying to get to the same place and i have been in contact with officials in most of these countries in last several months we are all seeing a similar dynamic, we are all trying to get to the same place. >> finally, since you are so focused on the labor market as the fed is right now and the millions of people who still don't have jobs, we are seeing this very strong boom, and we are hearing reports from certain sectors of labor shortages even at this time why has it been do y

alix: so the narrative of a couple of weeks ago was the bank of canada slowed their asset purchases. this was the first centralank that was going to go down this path, and that could lead to divergence in asset classes based on these central-bank moves. is that not really a trade based on what you just said? james: potentially. alix: you sound very reluctant. [laughter] james: if it was so easy, it would make my job a lot easier might have to be honest. but you have expectations leading up to the event because of the bank of canada had signals it was likely to engage in this tapering decision, and the markets were pretty well price for it and we didn't see much movement for it. oil continues to rally, and that is probably doing most of the heavy lifting. the fractional timing of some of these decisions probably isn't going to be a big market mover. the reality is the direction is what matters most, and they are all broadly speaking heading in the right direction. i think the ecb is the most likely to be a laggard in that respect. i think they are most likely to be positioning traders as a result of that, but a

of the concerns coming through. some central banks talking about tapering early. also perhaps in canada. is a worry for the european market, inflation getting out of control. inflation is a temporary stop by should not be a concern. it may be a delayed reaction to the inflation numbers that keep on crawling up and are not going away. anna: in terms of inflation and expectations, are you considering that they could be going higher? u.s. inflation links to securities, are you protecting yourself? on that? ? paul: building into the idea we have a temporary spike going through for a variety of reasons. longer term we have to pick up inflation if we think it will be more sticky. went to get past the seller spike we draw back to a level that is higher than started. some markets are starting to project a little too much and feeling a bit rich and started to taper off. inflation markers around the world, you mentioned europe and also australia, new zealand, canada, they seem to reflect a lot of inflation protection. anna: thinking about the way the market prices in the inflation, looking at u.s.

of tapering. you have canada, new zealand getting out front. at some point the fed, can it push the ecb ahead? yves: i think every central bank to have its own methods of normalizing. i think the ecb has been through it before. we are not in a situation in europe where asset valuation -- the situation is more tense in the u.s., with bows -- both the housing market suffering a structural shortage of housing supply, and a lot of appetite for home purchases, as well as valuation on risky assets. europe is not there, the valuation of european risk assets is not as demanding as the u.s. counterparts. the main rationale to taper i would view first by the fed is really the whole idea of talking asset prices rather than the real economy. and to a large extent, the same logic applies to europe. i would say does less argent for europe to taper. manus: certainly the bund market has moved since the last meeting. let's see if they deliver any kind of jolt today. thanks so much for being with us today, our guest host. coming up, amazon faces its first antitrust case in the u.s. . washington dc has sued the tech giant for allegedly violatin

bank of canada is already doing that. the bank of england may start thinking about it. it may be it is surprising, but we cannot expect centralanks to be unprepared because they have the tools to fight it. anna: i'm thinking of the infrastructure that is much talked about in the u.s., the green infrastructure spending in europe. this could add to inflation pressures, and given the nature of the long-term planning horizons, you cannot turn them on and off. if you have invested in them, they roll out over many years. monetary policy will have to react to that as well. danae: yes, we are hearing concerns about risks, about central-bank independence, monetary and fiscal policy tension. high inflation scenario has to be put in context. you can have high inflation and low growth, which would be problematic were central banks inc. they need to raise interest rates. it could raise issues for governments, but what we are entering is not a low growth scenario, it is high-growth potentially, and is driven by fiscal policy and stimulus programs that are supporting the economy. this is what central banks have been asking for a long time,

of global assets? >> i think if you emerging market central banks are in the process of normalizing because they have seen inflation go at. we have also seen a change in:. needs a land last week, canada as well. but i don't think these countries will really cause a significant slowdown. there is a worry with commodity surges pricing. emerging market central banks are not going to push the global economy into a slow down. we still have very strong numbers and momentum out of the u.s. and out of europe which will support the recovery, so i don't think it makes too much sense to focus on a few emerging market and smaller economies' policies just yet. haslinda: how much inflation is too much inflation, and where the fed is concerned, what are they looking at? we saw the pce, but in the end, is it all about wage growth? rajeev: that three-point 1% number we got on friday was indeed a strong number -- 3.1%. so this means something, some type of policy change will have to be implemented. we depend very much on what numbers we get out of the employment market on friday, in terms of job creation. and, as you mentioned, wages are important. if there is inflation but no readthrough in which inc

of the bond buying program. if that's correct, well, maybe it expects this discussions and messaging to start today that would certainly follow the pattern from central banks we have seen in canada zealand. covid, we have that outbreak in victoria at the moment that could persuade the r.b.a. to keep conditions a little easier for a little longer and that's probably one of the reasons we're seeing it hovering around record highs at the moment. sophie: victoria rolling out a support package for businesses enacted by the latest lockdown imposed. what's the situation? paul: that package $250 million to help businesses cope with this week long lockdown in victoria, halfway through, $3500 $. we have a fight between the state and federal government. the victorian treasurer calling the federal government's lack of support disgraceful, accusing it of leaving the field of the health minister saying victoria has had $45 billion of support during the pandemic and there is provision in the budget for more. but the political argument aside, the pandemic discontinue to get worse in victoria. there is 50 cases active in the community there up from four less than a week ago. this is a more virul

if you look at it, canada in late april was the first g-7 central bank that said, okay, we're going to taper our bond purchases. last week the bank oftaper bond purchases if you look at some of the emerging markets, brazil's central bank has raised rates twice, russia has raised rates twice. you've got i think over ten central banks that have already raised rates this year so the fed can say whatever it wants to, but ultimately at the end of the day if prices keep skyrocketing they're going to need to respond to that. they're going to start talking about tapering and doing it before the end of this year and that will cause a 10% to 20% correction maybe that's already started because of what we're seeing, but that's my prediction >> is tech still the most overvalued part of the market, dan? some of these names have been slashed, 10%, 20% to 50% off recent highs do you see any buys there in that wreckage? >> not really because, yeah, they're down 10%, 20%, 30% tesla is a great example revenue was up 28% the stock was up 740%. even if it's down 33% from its highs, and by the way in full disclosure we cover around i think half of our sh