i am courtney collins. this is bloomberg.anet yellen telling congress she sees an economy that is strong enough to push inflation higher, balance sheet that will start shrinking sometime this year. kathleen hays here with more. the fed hike in june, yellen stress to the transitory nature of weaker inflation. but she changed her tone a little bit. kathleen: a little bit. what she did was acknowledge the uncertainty around the inflation outlook. she mentioned the transitory factors like the new mobile phone prices and drug prices. put them in a broader array that the fed is watching, bottom line is tighter later market -- labor market will push prices. she said it is to early. let's take a look at the bloomberg. you can see a redline that the picks the fed's 2% inflation target. that is where the fed wants inflation to go. you can see turquoise line that includes everything. it is above 2%, now down to 1.7%. the white line at 1.4%. they are clearly headed in the wrong direction. have a bitrket did of a rally. we were speaking e

i am courtney collins. this is bloomberg. yvonne: thank you, courtney. stocks, as we mentioned, dropping in thursday's trade. every major index but the dow finishing lower. today in the markets? su keenan with more. we did have strong earnings reports. the s&p initially was up. end, it was lower. we did see the dow extend gains, but the nasdaq 100 sell the most. let's look at the earnings. rising to a record. verizon up the most in eight years. shares that missed got vanished. twitter -- actually, their earnings were ok, but the subscriber growth had investors concerned. ,f we go into the bloomberg volatility is part of the story here, and this is a chart for volatility across all assets. you have the jpmorgan global volatility index in-flight and this blue, which really peaked in may and early july is the fix. it is starting to peak at -- is the vix. it is starting to peak as we get to the end of july. that is something we are noting because the calm is starting to get rattled. that: indeed, and part of calm being rattled is a flood of earnings. , baidu

i am courtney collins. this is bloomberg.gree the federal reserve in their june meeting to hike the key rate. but there is a critical question, of when to start shrinking them passive -- the massive balance sheet? kathleen hays is here with more. it is interesting -- we do not think that by this time we would be talking so much about the balance sheet reduction. kathleen: we didn't, a year ago. march -- but no, we are ready to go. it is clear they were debating if they should reduce the balance sheet this year. the only question is, when? let's look at key phrases from the fmoc minutes. we decipher them to see what the fed was debating, what the takeaway is. several, if we are to start within a couple months. does that mean that in the july meeting they made an announcement and start winding in september? that is what it gets people thinking about. readyaid, better to get later in the year two address inflation. say, are we sure we need to start reducing the balance sheet? that the suggested danger of moving to quickly with t

i am courtney collins. this is bloomberg.vonne: coming up, protests at the g20 as leaders meet in hamburg. this is bloomberg. ♪ yvonne: this is "daybreak asia," i am yvonne man in hong kong. betty: i am betty liu in new york. leaders at the g20 in hamburg. changing alliances, talks on protectionism. there is violence on the streets. matt miller has the latest. matt: standing here in hamburg meeting.0 there are protests on the streets, thousands and thousands being pushed back by police with water cannons. however, all eyes are on the meeting between the biggest leaders, including u.s. president donald trump and russian president vladimir putin. we will be looking to see what comes out of that meeting. other important bilateral's will happen, including president trump meeting with chinese president xi and trying to diffuse the situation in north korea. president erdogan is here and wants to speak at his own demonstrations on the sidelines of the g20 summit. however, germany has forbidden him from doing that. he says if germany

let's get the first word news with courtney collins. courtney: president trump says jr.' donald trump meeting was uneventful. speaking in paris after meeting donaldmanuel macron, trump denies the lawyer in question was connected to the government. president trump: i have a son who is a fine young man, a great young person, who took a meeting with a person in russia. nothing came of the meeting. it is a meeting most people in politics probably would have taken. courtney: republican leaders have released a new health care plan to provide another 70 billion dollars to stabilize insurance markets. in an effort to win over party critics, they say the cuts are too severe. the republicans hold a narrow 52 -48 majority in the senate and face united opposition. will step down, to be replaced. 2008, moreme ceo in than tripling vanguard's assets. 48-year-old buckley becomes president immediately and ceo on january 1. has died after a long battle against cancer. winning the peace prize in 2010, leaving china's most prominent prisoner and infuriating beijing. tiananment of the protest

here is first word news with courtney collins. urtney: the imf has agreed to a new conditional bailout for greece, bringing an end to two years of speculation whether it would participate in a rescue program. a new loanproved worth as much as $1.8 billion. it grants a seal of approval demanded by many of greece's euro-area creditors. res --ends on counti countries providing debt relief. we are told the governing council may discuss tapering at its next meeting in september, but is unlikely to reach a conclusion than. bloomberg predicted the bank would use its september gathering to signal a reduction in the case of qe. >> a very substantial degree of monetary accommodations are still needed for underlying inflation pressures to gradually build up in support headline inflation developments in the medium-term. courtney: the second round of brexit talks wound up with the key divisions on display. told the u.k.er team to come back next month with more details. they shrugged off david davis' suggestion that flex ability is needed on bot

i am courtney collins. this is bloomberg..s.-china first economic dialogue is off to a start. wilbur ross criticized china over the trade imbalance, where both governments canceled scheduled conferences. more from the sarah mcgregor in washington. it seems these meetings started off a very tense. do we know what the biggest sticking point was that ultimately led to a cancellation of press conferences from both sides? sarah: yes. i think why this meeting was remarkable, these talks happen on an annual basis. rehash ofrebranded, a economic dialogue. normally these produce a long list of objectives, cooperation to work together. but they movet, the ball forward on the relationship. this year, we do not have one. the news is, no news. secretary commerce wilbur ross spoken fierce terms about the fact china needs to take concrete steps to reduce its almost $350 billion trade deficit with china. betty: are we reading too much into this cancellation of these two press conferences? or, is it a new turn in further deterioration between

i am courtney collins. this is bloomberg.et's look at the politics behind picking wisconsin as the site of foxconn's first u.s. plant. joe, let's talk more about this development. we have been talking about the states in the running or contenders were all these swing states. very much politically driven with this choice to pick wisconsin. let's talk about how big of a win this is for president trump. joe: it is quite a big win. it is a considerable number of jobs, going to wisconsin, not only a swing state, but also a state that the republican party has been peeling away from democrats in the national elections. he gets to keep a promise from his campaign, which was to bring companies back to the united states and restore american manufacturing. it will be put right in house speaker paul ryan's district. it is also home to reince priebus. wisconsin governor scott walker has been a backer of trump and his offering the company about $3 billion in incentives to put the plants there. yvonne: it is interesting to hear from the fox