there is a debate here and what charles plosser was saying pushes against what charles evans was sayinghe market pricing and right now in terms of an interest rate increase in what do you expect? plosser and i agree with the one statement he made and that is that things are not as bad as they used to be. if you go back to last friday's employment report, even though the number was much higher in terms of the jobs created, the market honed in on something that was wage inflation and the fact that wages are not really rising. it's hard to think they would raise interest rates at a time where the actual job creation is not as robust as it should be or the wages are growing enough to push the economy forward. evans,re like charles this is more the end of 2015 before the fed needs to raise interest rates. >> charles plosser said in the past that the fed is not very good at forecasting inflation. we have seen is not very good at forecasting the drop in unemployment as well. what is the central bank good at? stimulus for the last few years is what i have been really good at. is orderlyown of q

dollar rally on the back of the dissent by charles plosser.erable amount dropped. you have september, october then qe ends. it will join the euro and a lot of people one day lower. -- want it lower. >> trying to look up what the debt ininated banco espirito santo is. bail ins is something we could be talking about more. other corporate stories, lufthansa has reported weak numbers. we will talk to the cfo, coming up next. we will talk more about banco espirito santo. shares are down but equity holders may be at risk. the junior debtholders, subordinated debt holders could be feeling the most pain. that is what the stock is doing. we will talk about that coming up later. see you in a moment. ♪ >> welcome back. lufthansa shares under pressure. second order profit fell. joined by cfo simone menne from frankfurt. good morning. let's talk about capacity. seems to be a problem on a number of fronts for the airline. short-haul, how tough is this winter going to be? we heard from brianair -- rya nair, putting more capacity into the european space. >> o

how many people actually agree with charles plosser? how many dissents should there have been? most important thing isut the fomc meeting, it very scripted. they come in with prepared remarks. probably plosser already wrote out his remarks. the big mystery of yesterday is why president stanley fischer did not dissent. he had written an op-ed saying it is time to raise rates. time is near. you have to be in an environment dissent we do not often. you have to be diplomatic and plan on when you are going to dissent. you do not want to be a serial dissenter. he went to position yourself when the time comes. president stanley fischer probably decided there was another time to do it. president plosser, who was all about considerable. >> the four of us could go on for an hour. how does this translate into running a business at the boardroom level? >> the macroeconomic situation clearly affects the assumptions you make for your business. thingsend of the day, like the news yesterday and stuff, that is not much of a surprise. these are baked in. when you start running international busi

later today, charles plosser will join us as well. scarlett?ight the twitter question. as tv killed the summer blockbuster? ♪ >> good morning, everyone. bloomberg "surveillance." it is friday. adam johnson is back. i am betting on argentina. >> you have been betting on argentina from the beginning let's bring in betty liu. he has. he did not just jump on the bandwagon. >> he went way ahead on argentina. he liked the blue uniforms. that is how my mother chooses teams. that is how i choose my cars. i love that keller. >> that is fair. i will grant you that. 100%. >> we are very excited to have him in the studio with us. heard him unveil the gm compensation plan. is going to be joining us more the thinking behind this. the claims start coming in august 1. there are so methinks to account for. >> there were 13 deaths linked to this. how many claims this he expect? cover 2.6 going to million of the cars recalled. i don't know if there will be that many numbers. obviously they will be looking through each case. it is wide and big. this fund is uncapp

finally getting to the vote, it was 9-1 this time with philadelphia fed president charles plosser dissenting and he is an inflation hawk. according to the statement he voted against it because he objected to the guidance indicating that it will likely be appropriate to maintain the current target rate for the federal fund rate for a considerable time after the bond purchase program end, which is expected to be later this fall, because such language is time-dependent and does not reflect considerable economic progress that has been made toward the committee's goals. melissa, back to you. melissa: interesting, peter. stay right where we are. let's get reaction from the panel. our own charlie gasparino. make an money with charles payne. brian west burrsy. what do you think of that dissent? >> i thought fisher would dissent after his piece in the "wall street journal" earlier this week and he voted with the chairman. so that was kind of interesting. but, if i were on the fed, would i have dissented today. i think the fed needs to get tightening underway. i think they need to sell off their bond

that may telegraph a dissent this week in the fomc, but perhaps joined by charles plosser. this week that came out earlier today, lower than expected. the case-shiller home price index and consumer confidence tomorrow, followed by -- it starts to accelerate -- adp up, gdp up 3%, reversing the first quarter weakness. i'd be watching prices and wages, two indicators whether or not the fed has to move faster. most likely the fed takes $10 billion off what had been $80 in purchases in december, down to $25 billion now. publicly, not much change expected, only a slight tweak to language, take note of the improving job scenario but a serious behind the scenes discussion about the accelerating pace of tapering and moving up the timetable for hiking interest rates. here's how the fed might look at date tap this is what happens -- this is now three-month average and compared to september. job growth quite a bit stronger. unemployment rate, lower. but on the backs of a big decline in the participation rate. earnings stronger and inflation, pretty much unchanged though it's up from wh

philadelphia fed president charles plosser, the lone no-vote from the federal reserve today.mittee isn't taking into account economic progress that's been made when considering when to raise rates. will janet yellen have to move up her timetable for raising interest rates? rick reiter's fixed income cio at blackrock. also joining the conversation, ellen zeddner from morgan stanley with thoughts on the fed. welcome to you both. rick, first of all, you guys changing your projections for a rate rise? >> it's interesting. you had two conflicting pieces of data today. you had the gdp piece of data that clearly showed the first quarter was aberrational, then you have a fed that many interpreted as hawkish that we thought is more dovish when you include the comment on labor. so, we're not changing. we think the fed will be moving and the data will support moving early in '15. >> first part of next year. ellen, are you in the same camp? does anything today, whether gdp or from the fed, change your view? >> no. i would agree with rick, nothing has changed our view in terms of the timi