at mays dennis lockhart 2:15. -- don't miss dennis lockhart at 2:15.e katrina, we will get an update on the economic recovery. ♪ matt: welcome back. i am matt miller with mark crumpton. let's get to julie hyman for the big stories of the market day so far. i guess volatility has been the story for the nasdaq. julie: we have been talking a lot about that. the nasdaq is green was again. i want to talk about the big market stories of the day and of the week. it has been quite a week for the major averages. you can cbs a be and dow are still negative -- you can see the s&p and the dow are negative. take a look at the sector moves. i want to talk about how they have done as well. what we're seeing today has mirrored the move we've seen this week. energy is the top performing group today and utilities are the worst performing group today. that is what we have seen for the week as well. take a look. you can see the energy index up more than 4%, it's best week since about february. utilities down 5.5 percent, sharp losses for that group. when you look at the u

matt mentioned dennis lockhart comments about september rate hike. he said if that is very disposed to the september timeline. he said shorter horizon inflation numbers. prices down and yields higher. 10 year yield at two point or percent. quick check on commodities. at two pointte 24%. copper coming off of a six-year low. -- rain in chile has halted production. matt: could be of what we would call it that cap bounce. if you were cynical, you might see it that way. top stories crossing the bloomberg terminal. warren buffett has been one of his biggest deals ever. berkshire hathaway agreed to buy precision cast parts. the price a little more than $37 billion, most of that cash. earlier we talked to a partner at gardner russo, his firm owns almost $1.5 billion of berkshire shares. the cash flow is how steady it should be. they have an order backlog they can map out, probably for 15 years. yes, the dollar makes a difference, but when you are placing order for an airline, they probably will end up going the wing because of the certainty it is the best in

dennis lockhart lighting a fuse under that one yesterday here in europe. to the wall street journal. according to him, he would need to see significant deterioration in the economic data to get him to say they won't move. question is how many friends does dennis lockhart have on the fomc when they go to vote in september? what you'll notice, though, is that the euro got hit against the dollar. sterling not so much. when i bring up euro/sterling, weaker again down by a quarter of 1%. we have our own rate hike debate in this country, here in the city of london. a bank of england decision. forecast, minutes. governor mark carney speaking as well. what will he say that could equally light the fuse turned pound as we go into that meeting. it is not just the u.s. that might have a strong currency problem. back to you. francine: jon, thanks so much. jonathan ferro with the latest on the markets. manus: tom keene joins us now from europe. you want to talk about the dollar. we had george magnuson here from u.b.s. the dollar is in the foothill turnovers next big mov

dennis lockhart gives september a ringing endorsement. euro sterling done by 70 pence.itting next to me forecasting 65 pence in the next 12 months. euro eris sterling bullish. i will be talking about commodities in just a bit. bring crude act through $50 a barrel. those are the big market moves this morning let's get some of the big stock stories with caroline hyde. you just talking about the general is the best performance morning. this is a company funding rates in the equity side of the business. the highest profit -- you said it in some eight years. there also promising more cost cuts. thank you very much. investors like what they hear. and here and united kingdom. another one of their top performers. again it has to do with their earnings. the biggest manager of u.k. pensions. the numbers to the analyst estimates. they are lowering in the cash in the your sing that inflows up 62%. they're down on the downside and it is all about oil down by almost six cents this morning. this is a refining company not living up to expectations on profit or sales. lower sales volume

brendan: everything dripping off the results of what dennis lockhart said yesterday afternoon. status lockhart so important? brendan: he gets so little information from the fed. he doesn't make the vote alone. he has other voting members. he says i don't see any reason why not. everyone seizes on that small information and trades. tom: looking at that 8% revenue pop just one idea doing better. olivia: second-quarter sales up 8%. a lot of analysts say hbo is one of the most least impacted companies by the slowdown. everyone wanted to know what was happening with hbo. what was hbo doing to subscriber growth? that number i do not see but it was a big earnings-per-share. tom: double-digit moves. operating income of 20% speaks to the power of these cash flows. we have time to figure out why that was. do you give an success for game of thrones? the first paragraph in the last sentence, in addition to being nominated for outstanding drama series, game of thrones was nominated -- was watched 14 times by olivia sterns. olivia: that's not true, it's your favorite show not mine. but that i

nicole: dennis lockhart now saying he expects the feds to raise interest rates sometime this year.wo weeks ago he told reporters that he was very disposed to a rate hike in september. late yesterday, lockhart says the drop in oil prices caused the inflation outlook. the fed has said it must be confident inflation is headed towards its 2% goal before raising those rates. peter fisher blackrock investment institute says the fed has a dilemma on its hands. lauren: productivity is low in the u.s. have developed economies. that puts it in a very spot. it doesn't seem quite strong enough and so we are caught in between. maria: he makes the point. how healthy is the u.s. economy and mass of the federal market committee and official members have to decide. the next meeting between september 16th. lauren: shares of chinese internet alibaba followed although it ipo price. twitter also below its ipo price. not a good sign for new stock offerings. we will take a closer look coming out. another drop in chinese stocks. traders setting up for a volatile day on wall street. despite the drop yester

i want to start with the news from dennis lockhart thinking that the fed should go ahead and raise. what do you think about that, steve? >> i think should do it next month -- melissa: in wake of all this? get it over with? >> the way you get economy revived is get credit markets working. suppression of interest rates hurt lending to small and new businesses hurts job creation. apple borrows 40 billion in bonds and government gets money virtually for free. doesn't do food for the overall economy. melissa: traders on floor of new york stock exchange said they would have to be crazy. he may be right but impact would be more bloodshed. >> that is the sentiment. i saw one survey people thought it was 50, 50, chance of fed raising soon. that has plunged to maybe 15% chance they will raise. federal reserve should not be in the business of watching stock markets. melissa: they shouldn't but they are, aren't they? they pumped up this market and they're afraid of deflating it. >> you worry they're watching. i don't really think the rate hike coming will be tiny. it's a long time coming. i don

mckee is there with dennis lockhart, the president of the atlanta federal reserve. michael: the morning session has concluded. there was a lot of theoretical talk about how you measure inflation and what central banks should do about that. actual policy question about what to do about inflation because it is too low at the moment. the forecast are that it will start going up. the question is fast enough that you are ready to move now. face is whether i have to see tangible evidence. if i have to see that evidence in the data or whether i can rely more on the forces at work in the economy given me confidence that in time, inflation will rise to target. michael: there was a lot of talk this morning about the difficulty of missed and guessing where inflation is going to be 18 months out. >> at the moment it is even more complicated. inflation is going to be affected eye things like oil appreciationncy and such. it may be more difficult to read the true underlying trends at work. say with thek and economy operating as it is in a very acceptable manner, the solid.ance is

we will be speaking with dennis lockhart. president of the federal reserve rank of atlantic.e a look at some of the top stories crossing the bloomberg terminal. we begin with were sad stories of desperate migrants dying while try to get to europe. the bodies of why than 100 migrants are being recovered from the mediterranean. they drowned when their boat capsized. up to 200 are dead. three people are being held in the connection with several migrants. greece's president has dissolved parliament ahead of elections set for september 20. the parliament will reconvene october 1. the economy grew slightly faster in the second quarter than forecast. the economy grew .9 of 1%. greece reached a deal on its third international bailout. there is jubilation in sierra leone as the net -- less notable location has left the hospital. her departure could mark the end of the epidemic. the woman most likely contracted the virus from her son who died last month. if she tests negative for 42 days the world health organization will declare the country ebola free. kim jong-un sounds like he is re

reserve: the federal dialing back expectations after dennis lockhart said they china slowdown and oilicating the outlook. statement,eduled bill dudley said the case for an early rise is becoming less convincing. prime the outgoing greek minister has ruled out leading a coalition with opposition parties. next month'so win snap election. part itsays his syriza would not put together a government with parties that supported him. tsipras did not rule out a government of national unity, just that he would be prime minister. francine: let's check in on the markets. 10:30 london time. we had quite a lot of breaking news. headline the china explains the aggressive rally on the shanghai composite. a rally fueled by soothing words , pushing backley potentially closing a window on a rate hike. europe, thearket in dax up three percentage points. in positive territory for the week. ftse 100 in london up 2 percentage points. almost every stock in positive territory. s pushing higher, wti back through $40. in china, we were up 3%. into the close we had a rally and finished up over 5%. a five-day rou

we have seen dennis lockhart playing into that voting member on the federal reserve

another three or four minutes with dennis lockhart of the atlanta fed.you so much for your insights today. back to you. melissa: thank you so much. want to bring in dan mitchell, senior fellow at cato institute. jason and jack are back as well. dan, start with you, what's your reaction, what did you hear there? >> the thing that encouraged me he recognized it's not the job of the fed, not the role of monetary policy to try to fix problems in the so-called real economy. if we're worried about a bad tax system or overregulation, if we think the burden of government is too high, tinkering with interest rates, have the fed do a tight money policy, those don't fix those problems. that's encouraging. on the other hand, i still heard him saying yes, we're going to try to fine tune the economy. that's how you get trouble. melissa: jack, that's what i heard, too. it wasn't a we've committed to, this stick to it sort of thing, they said we're re-evaluating, been a rough two weeks, tumultuous is the word he used. >> stop treating this like it's physics, they don't

liz: dennis lockhart, you had james bullard of st.aying, okay, we're ready, let's do it. we're no longer in an emergency mode of zero to a quarter of a percent rate. jeff, do you agree, is it september. >> i do agree september's very possible. the headline should be coming this fall, the end of zero interest rate policy. i think they could lift the fed funds rate 25 basis points. and the thing that lockhart also said that i thought was interesting, jon, was the cumulative progress. if you get stuck looking month to month, you can maybe get disappointed when you only see 215,000 jobs. but cumulative progress, the 11.1 million jobs created since the end of the recession, that's more jobs than created in any expansion on the last three before the first rate hike. so they're overdue, if you're looking at the jobs market for that liftoff. liz: go ahead, jon. >> the other thing that i think was really important today is the unemployment rate. so you could look at it and say it didn't change, it was 5.3%, why should that matter? it matters b

. >> dennis lockhart indicates it could delay the hike as they forecast the lift off to march of next year. >> and china's economy bottomed out. brent and wti climb back gains after settling at the lowest level in 2009. >> it was a rough session overnight. housing a big part of the story. we're just hearing from one of the luxury home builders reporting q-3 earnings of 36 cents. that's well below the analyst expectations of 49 cents. revenue was to come in around $1.03 billion and revenue coming in line with expectations. we should point out the stock closing lower yesterday following the broader market sell off losing about 4.7% but year to date up about 5.7%. responding to the housing data over the past couple of months but back to the market sell off. the dow seeing a 4,000 point move in one session. we just captured the highs, lows and where the dow closed. at one point in the beginning of trade we saw the dow down by around 1,000 points. some traders sending me pictures just showing traders clued so their screens and cnbc saying what kind of ride are we in for? we saw the dow com

like dennis lockhart was saying it's still going to happen? >> jobs coming in high wage movement.t to see inflation declining. we had a little bit of a bumpup there. we'll see what happens with the pce indicators which are the fed's preferred inflation indicators. all of this could derail. you say if it comes in the way the fed forecasts, is it enough? they'll tell you we have another piece of this information. >> a lot of data. >> thank you. >> it's left in the position. >> the stock with apple right now. >> the former new york stock exchange boss duncan niederhaur. he knew the score on the exchange. he's back on the floor. he's going to bat for fantex. we'll talk to him about his new job, his old job and all markets next. re starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours. ♪ i built my business with passion.

that's what dennis lockhart had to say over the course of the past two days. i don't think it's that big of a deal. with all of the economists and strategists, smart people think that the fed is almost universally going to go in december. i'm still not fully convinced. contract,ed futures at the flip of a coin, still another payroll number -- my sense is that -- i will put it this way. previously, i would be 20% they would move. i'm now closer to 50/50. scarlet: breaking news from kraft. kraft coming in with a second-quarter loss of $.91 because of merger-related expenses. when you back out all of these one-time items, the adjusted earnings per share was higher than the contestants -- the consensus estimate. says graph -- kraft heinz it will deliver its initial financial view for the merger, and it does not expect to issue or update its earning guidance as well, but it will -- is confident it will deliver against initial merger views. joe: norway may have survived the global financial crisis relatively unscathed, but we have a chart that shows how oil at $50 i

dennis lockhart said barring an unexpected deterioration in the u.s. economy is something he doesn't company, the fed will raise rates next month. >> it's coming. >> it's coming. he said, quote, the economy is ready and it is an appropriate time to make a change. global markets, everyone is just sort of bracing what is coming next. >> everything you will hear today and the next 24 hours none of it probably is important for your wallet as that last story right there. >> you're right. >>> this morning, experts investigating pieces of a plane found washed ashore in the indian ocean. is that plane the missing malaysia airlines flight 370? we are live after the break. woman: this is not exactly what i expected. man: definitely more murdery than the reviews said. captain obvious: this is a creepy room. man: oh hey, captain obvious. captain obvious: you should have used hotels.com. their genuine guest reviews are written by guests who have genuinely stayed there. instead of people who lie on the internet. son: look, a finger. captain: that's unsettling. man:

you mentioned comments by the dennis lockhart the atlanta fed guy. he slowed down some of the momentum. he wasn't able to break the market. despite the fact that his comments caused the dollar to rally. the other reason we may see short-covering there, we'll be facing oil inventories. we'll get the american petroleum institute, a private report, at 4:30 eastern time. we'll see the department of energy report. that report, unlike what has been happening in oil should show that demand is pretty darn good. gasoline demand in this country is well above the five-year average. we're seeing very, very strong demand. refiner demand for oil is near record high. despite the break in price we're seeing a disconnect. expectations for that report is that crude supplies could fall 1.4 million barrels tomorrow. tomorrow we could also see distillate inventories rise but gasoline inventories are supposed to fall. disconnect from the drop in price and demand here in the u.s. that's one of the reasons why we're seeing some short-covering today. david: you have to have

dennis lockhart told "the wall street journal" that only a significant deterioration in economic momentum could convince him to wait longer. lockhart is one of the first officials to speak publicly since the policy meeting last week. >>> a hostile bid in the drug sector late today as a result of rejected and unsolicited $30 billion offer from shire. if the deal were to happen, it would create a leading biotech company focused on rare diseases, the bid or word of it sent shares soaring. bertha coombs has more on the drama in the drug sector. >> reporter: only public for a month, but what a month it has been. the bio science company was spun off from baxter international. during the first earnings call as an independent company last week, ceo hansen said the firm was open to acquisitions as an acquirer. >> e are hungry for m & a but we are not desperate. i think we will use the discipline making sure that the strategy is aligned, the financials are there as well as we can integrate the organization. >> reporter: but it looks like they might now be the target, not the buyer. shire pharmaceut

i think that is the tone of what dennis lockhart had to say over the course of the past two days. do not think it is a done deal that they will raise rates. over the previous five days with , all of the economists and strategists, smart people think that the fed is almost universally going to go in december. i am not going to say i am one of the loan standouts. i'm still not fully convinced. with the fed futures contract, at the flip of a coin, still another payroll number -- but my sense is that -- i will put it this way. whereas previously, i would that be 20% they would move. i'm now closer to 50/50. joe: all right, david, you will stay with us through the break. scarlet: breaking news from kraft. let me pull it up here. kraft coming in with a second-quarter loss of $.91 because of merger-related expenses. when you back out all of these one-time items, the adjusted earnings per share was higher $.98, than the consensus estimate. i should say heinz kraft -- kraft heinz says it will deliver its initial financial view for the merger, and it does not expect to issue or update its e

separately the atlanta fed president dennis lockhart said economic conditions have largely returned to what he thinks of as normal. and that a decision to raise rates should come soon. >>> still ahead, politics and money. what some of the presidential hopefuls have planned for your social security benefits. >>> covering report on our nation's air traffic controllers. two in ten admitted making mistakes in the past year, mainly because of fatigue. the findings were part of a government study which according to the associated press, the federal aviation administration has kept secret. overall, controllers reported averaging under six hours of sleep per day over the course after a work week. >>> well the postal service lost money last quarter. but it was an improvement from a year ago. the independent agency lost about a half a billion dollars in the quarter ended in june. a year ago the loss was nearly $2 billion. even though volumes continue to decline the slide was offset by an increase in prices. officials at the postal service say they are focusing on digital innovation to help impro

today, the president of the atlanta fed says he sees the fed hiking rates sometime this year but dennis lockhart didn't make mention of september like he last referenced a few weeks ago. he says it's difficult to forecast economic growth. >>> china's stock market plunged overnight which then reverberated across the globe contributing to the selloff worldwide. shanghai's main index fell 8.5% erasing the gains for the entire year. the slide was so sharp, china's state media dubbed today "black monday." overnight, the government eased regulations on pension funds allowing them now to invest in the stock market for the first time. but that was not enough to prop up sentiment. >>> also contributing to the nervousness in the markets was oil. prices today continued to plunge. west texas intermediate fell 5% to settle back at the lowest settlement since early 2009. the accelerating slide in prices is due to declining demand from china and oversupply of crude. and that slide in crude is expected to bring gas prices below $2 a gallon to most of the country by the end of the year. but over the past two wee

dudley and dennis lockhart are going to be giving some speeches, and on the data front, retail sales are out. very important one there. producer price index at the key read on inflation and also the industrial production numbers. that is what to watch next week. >>> well, the high stakes game of house flipping has always been around, but now the practice of buying and selling a home in the same year is solely for profit is getting a whole lot riskier, but also more lucrative. diana olick has our story. >> taking a house from this to this takes a lot of cash, but in today's competitive housing market, it is a necessity for investors who hope to make big profits flipping homes. >> the market has gotten tougher, and so it's not for novices. you have to know what you're doing, and you have to be able to do a good job. you have to have an eye for detail, but with that comes reward, which is a better reward. >> chris harrison put nearly $400,000 into renovating this washington, d.c. home. after buying it for $700,000. it's currently listed at just over $1.4 million. >> it's a calculator ri

dennis lockhart says it continues to project -- to expect the hike in a decade later this year.hey complicate the outlook for growth. september remains a live possibility. team september becoming a smaller place. commodity prices tumble and the concern over slower growth in china rises, caroline: bhp billiton and they are saying cautious things about the near-term. near-term volatility is going to continue here in china. they say they expect the ongoing economic reforms that china is doing to contribute to a perio of market volatility. this is coming from andrew mckenzie. thehe long-term, --modities on outlook particularly by china. they are looking quite optimistic about the second half of the year when it comes to china. this might be helping the share prices. china will grow at a stronger pace in the second half. they see 7% growth for china this year. they say that china is not impossible to read. that is a funny comment. andrew mckenzie of bhp litan says it is possible. they are articulating their forward strategy well. let's have a dig into the future. they are remaining c

atlanta said president -- atlanta fed president dennis lockhart expects the central bank to raise rates this year. he admits the matter is complicated by china, oil prices and a stronger dollar. or cleese says the fed probably will not raise rates until next march. -- barclays says the fed will not raise rates until next march. china is who donald trump blames for the market turmoil. they want president obama to cancel next month's visit by xi jinping. walker blamed the market tumble on what he called china's manipulation of the economy. he said president obama should cancel the visit. donald trump said he would give him a dinner, a mcdonald's hamburger. get down.'ve got to yuan, devaluation of the changes in currency, it has been an unbelievable market run. there has been a shift in gdp in the u.s. in the last two quarters. normal market a correction. but i'm still a long time believer in the stock market like warren buffett says you have to look at a long view. brendan: watch the interview with salesforce's mark benioff at 4:25 eastern on bloomberg television. portfolio gotyour hammer

will have a conversation with atlanta federal reserve president dennis lockhart coming up at 2:15 eastern time right here on bloomberg. coming up on "the bloomberg market day," the market delivered plenty of adjustment this week. we will get the latest on the market, and who is putting their money where. ♪ ♪ pimm: good morning, this is "the bloomberg market day." let's get a check on how markets are performing right now with julie hyman. julie: let's take a look at the major averages. let's take a look at movers while we are looking at gamestop. the shares are up seven and a half percent. this is the worst-performing stock in the s&p 500 today, lower after its earnings report, although by all accounts earnings reports were strong. i will finish my thought on gamestop. the shares of gamestop are lower after benchmark research lowered the stock to a cell and said that the secular changes in the gaming market have been creating some issues for it. it is going to be left behind as we see more mobile gaming, for example, so those shares down 7.8%. stocks do remain higher on the week. all three

eastern when peter sits down with atlanta fed president dennis lockhart.ll ahead, it is the fed's world. we keep talking about it because we are all living in it. asset valuation based on what the fed is doing. is there another way? should we return to gold standard? steven more is here to weigh in. >> we are in final moments of trading. what a week. this week alone has been absolutely something. we are looking at a doubt that is off 66 points but your guess is as good as mine which we we are going to settle out the day. it has been a wild week. anything can happen. you want the bottom of your screen right there. 6.2%, $6.22 a barrel is the highest since august 4th, oil is up 12%. just this week. the biggest weekly gain in 6.5 years for oil. we are talking about gold right after if this. do we need some other mechanism to enforce discipline in these markets? billionaire investor steve forbes is next along with stephen more, we are talking about gold. trish: investors are moving carefully to figure out what they should do based on what the fed is going to d

yesterday, atlanta fed president dennis lockhart said the rate hike will happen this year. >> everyoneng bets. >>> "early start" continuing right now. >> breaking overnight. china's markets plunge again after the dow horror show yesterday. down 1,000 points in ten minutes. will stocks continue to slide or will they find stable footing? live team coverage breaking it down. >>> joe biden could be one step closer to entering the presidential race with new words of encouragement from the white house. >>> jeb bush campaigning on the border, but he may have found himself wading into new controversy this morning. >> good morning. welcome to "early start." i'm alison kosik. >> i'm christine romans. it is tuesday, august 25th. 5:00 a.m. in the east. let's start with markets. yesterday was horrific. a plunge for the dow jones industrial average. down more than 1,000 points in the first ten minutes. the largest-point loss ever in a trading day. at one point, the dow was down 102 points. stocks were actually higher. by the close, down almost 600 points. investors selling risky assets like stocks a

. >> dennis lockhart indicates it could delay the hike as they forecast the lift off to march of

the atlanta fed president dennis lockhart says the fed will raise rates next month.the money quote. the economy is ready and it is an appropriate time to make a change. he is a voting member of the federal market committee so those comments getting an awful lot of attention in global markets this morning rb. >>> disney's revenue up 5% than a year ago and lower than investors were expecting. movie studio revenues surged 13% because of avengers and blockbuster brought in more than $1.3 billion at the global box office. >>> listen to this new employee perk at netflix. unlimited paid parental lead. both moms and dads can take as much time off they want during the first year a child is born or adopted. that means they can come back a few months and leave again. netflix will pay their full salaries. these big companies are offering big perks to retain good employees. >> really interesting to see. facebook you get a bonus! you get a cash bonus when you have a kid! >> these tech companies saying they retain top talent both men and women better with these kind of perks! >> to

dennis lockhart made a very good point and steve made a very good point. the prevailing view at the table is if you move, you move slowly and deliberately. that doesn't mean a consequential number of significant moves that follow. you still have uber accommodative monetary policy. bankers need net interest margin to lend out. every banker wants to see a rate increase. there are different forces here. the deflation in energy prices, crop prices, food prices benefits the consumers and we are a consumer-oriented society. so there are are pluses and minuses here. open market committee members do not react to one day's action on wall street or even a correction. they'll do what's right for the sake of the economy, whether they are hawks or doves or trying to figure out how to be wise owls and remove themselves from excessive accommodate. one thing i would say in the reaction i've been seeing recently, is the fed going to raise rates in september after lockhart's speech, after vice chair fisher's speech? it does demonstrate people are hooked on the heroin of qua

most commodities are down because of comments by dennis lockhart yesterday.eptember be an inappropriate time to raise interest rates. the reason is despite the fact they have followed in the doom and gloom demand continues to be good. yesterday report from the petroleum institute that gasoline demand exceeded expert patients. the drawdown of 2.5 million barrels, 500,000 barrels in gasoline and a big draw to push in, please were a little surprised fall again. another report from the energy information administration. we will buck the trend of commodities under pressure. back to you. maria: we will be watching. major league baseball striking a deal to boost a dominant streaming business. cheryl casone with that story in headlines. >> good morning. major league baseball striking a $600 million deal with the national hockey league to take over the digital broadcast operation as well as rights for out of market games. in turn, and it shall take a 7% to 10% take an advanced media were $300 million. federal regulators expected to approve a new role that would requir

market is moving treasuries and the dollar moving on those comments from atlanta fed president dennis lockhartthe two-year note right there. you can see moving from 68 up to the 72, 73 level on the comments by lockhart and there's the ten-year note kind of up a basis point or two but the euro also losing ground against the dollar. there's the dollar index strengthening and the euro followary would be the opposite. well done boys in the back. can you see the euro weakening. let me remind you what the comments were. a centrist fed president who we follow for which way the winds are blowing at fed saying i think there's a high bar right now for not acting in september. that is raising rates. he also said it will take a significant deterioration in the economic picture for me to be disinclined to move ahead, that is saying he would move ahead on a rate hike in september with some of the better economic data we've gotten of late. brian? >> treg there. see if the market moves on those headlines. steve liesman, thank you very much. time now for our other daily segment trading nation, and today we tra

dennis lockhart came out and said the international situation complicated things but he also said he expects a rate hike sometime this year. again, keep it in the tent or you'll be responsible for the accelerated decline. if janet yellen had come out this morning and said this global environment requires the fed to be on hold then we wouldn't have been slaughtered like we were. second, we cannot dismiss the damage that china is inflicting on the global economy with it's stock market and it's lowered rate of growth. a year ago the shanghai composite stood at 2,236. on june 12th of this year traded at 5,178. that's an absurdly quick run. not based on any fundamentals at all. it was fuelled by tremendous account growth. millions upon millions of accounts along. and last night that index fell more than 8%. it's now dropped to 3210. when i compare them to the nasdaq from 2000 i find an uncanny resemblance and companies are insolvent. many banks in that case. it's inconceivable that we won't repeal every single point that index has made in the last year or more. until the shanghai composit

. >> also tempering sentiment state side hawkish comments from dennis lockhart speaking to the wall street journal. it would take a significant change in the picture for him to support delays past september. the two year yield ending at the third highest close. we're back at 73 basis points. also sending the dollar higher. the dollar index at a four month high. >> someone that isn't worried about the fed souring the mood is laslo birinyi. he came out with a bold call saying it could hit 3,200 by 2017. >> people don't realize we're in the second greatest s&p rally in history and we're ahead of the 1990 rally and if the market continues to gain 11 basis points a day as it has the last six years, two years out or so we'll be over 3,000. >> joining us now is federal market strategist at jp morgan asset management. david, good morning to you. >> good morning. >> all three major indices finished july in negative territory. were the markets due a bit of a correction? were they too buoyant over the last month or so? >> a little bit but the bigger picture is markets are going sideways for most of t

but then we hear from dennis lockhart, who loves to kind of get the markets riled up. he says, listen, look, the decision to begin raising rates is impending. but the markets seemed to be ignoring that right now. what is your thoughts on these comments from lockhart and fisher? >> there is a couple of things going on. fisher actually wasn't asked and didn't speak directly to the question of rates and when they're going up. but he did point to a problem that the fed has, which is that even though the job market is doing much better, it is closer to what he calls full employment. inflation is very low. that is a problem for the fed. i think that speaks to the dilemma they face as they go to make that decision in september. lockhart reiterated something he told us last week which is that he is getting close to being ready to do this. september is very live in his mind but not everybody in that room is going to be ready to do it. so i think we could have some fireworks in september. it will be an interesting month to be reporting about it certainly. i think markets could h

spread today when cnbc's steve liesman broke a story saying that atlanta federal reserve president dennis lockhart thinks the fed should tighten in september. i have multiple problems with this kind of thinking. i sau thought the fed was supposed to be data dependent and can we at least wait to see what the former data says since we heard from the fed last week that we need to see the data, and lockhart's comments caused the dollar to surge. remember, the strong dollar is bad for our market. it caused oil to turn down, and i know that's odd, but weaker oil is bad for the market right now and interest rates to spike higher and always bad reversing what looked to be a pretty decent rally. look, i get that it's not lockhart's job to pop up for the stock market, and this isn't china. still one day after the eighth anniversary of the rant about when the fed knew nothing and ahead of the financial crisis and it is not lost on me that the same lockhart poked fun at my lant and dismissed it with laughter and that's according to the minutes two year ago. lockhart wanted the lez say fair strategy, it couldn

when they released the meeting notes i was a laugh line and the much-revered atlanta president dennis lockharti believe that the correct policy posture is to let the markets work through the changes in risk appetite and pricing that are under way, but the market observations of one of my more strident conversational counterparts and that is not jim cramer paren, laughter, are worth sharing. that's right. laughter. think, i was saying the market was going to stop functioning and you couldn't be lazy and that's what they did and it happened. i give credit for changing the financial system before it went really dark. i have nothing, but respect for ben bernanke and for the current fed chief janet yellen and they've shown great judgment keeping rates low, with the world situation to which we're very much linked has been on an upswing and our recovery was fragile and to the overseas strong dollar. the great recession is still very much in our minds and keeps us more frugal and suppressing lots of economic activity and the banks are certainly still afraid. the fed did a terrific pivot and came aroun

when i heard your answer, you are less certain about september that dennis lockhart was yesterday. >>u the way i'm thinking about it. my approach hasn't changed, my thinking hasn't changed. what i think is appropriate is to wait and see the data. if you're going to be data driven, that's means waiting to see the data. . so those will be really important. i just wouldn't want to speculate. >> jay, pull the curtain back a bit. how will you make a decision? talk about the collegiality at the fed and how you work with the districts and the fomc to make this call? >> i think we have a unusual, unique system with the bank presidents and the board. the bank presidents bring a level of diversity of views. they have their own staffs. they come in every meeting and have their own views. it's healthy to ear different views. we have a good discussion, good dialogue and come together around a decision. i think it works. >> if the employment picture has improved more than would be expected with the gdp numbers, so actually that's the true state of the economy, then why after nine years without an i

. >> atlanta fed president dennis lockhart he's a centrist whose comments in early august helped solidify market expectations for a september rate hike but he looks to be balking off that call. in a speech in berkeley a couple hours abow lockhart said he expects a rate hike "sometime this year." but he did not repeat the comments he made twice earlier this month that he was looking for a september hike. he also said when rates rise they will be gradual, not in quarter-point steps. the inflation forecast right now is tricky. the stronger dollar, the weaker yuan and lower growth complicate it. barclays making one of the more dramatic calls, pushing its expectation for the rate hike from september to march 2016. it stems from the fed fears of destabilizing the markets, tighter financial conditions and lower inflation than what the fed wants to see. john silvio of wells fargo says they're considering a similar move from december to september of 2016. melissa, you're exactly right, it's in the eye of the beholder. one way the fed can ease with tightening baked into the market when they back of

we had a wall street journal interview with dennis lockhart yesterday saying he thinks the fed, if itg, that poses risks to the financial system. three voting members of the fomc you have expressed desire to raise rates in september. think? the markets the two year treasury yield is about to reach multiyear highs. it needs to go a tiny bit higher. then it will be the highest since 2011. the market starting to price in a september rate hike. erik: we had a flattened yield curve. the 10 year has dropped. what does that tell you? >> janet yellen is committed to doing this. you've seen fed governors talking about it with permission of the head person. rates are going to go up slowly. good for some markets -- for some markets here and are going to go up this year. erik: deliver a number two. : tracy worst-performing currency in asia is the ringgit. a 17-year low. the interesting thing here is the ringgit is falling even though there was a job in malaysian exports. stephanie: this is an interesting chart. why should we care? tracy: because -- stephanie: would you have known what the currenc

the head of the atlanta federal reserve bank, dennis lockhart out with comments, that despite everythingng on with china and dollar and everything else he still sees the fed raising interest rates sometime this year. in a speech to pension fund managers in california he says, developments, headwinds he is talking about here, developments such as depreciation of the dollar, devaluation of chinese currency and declining oil practices are difficult factors in predicting growth of economy, but i expect reduction interest rates to proceed sometime this year and proceed gradually. liz: two minutes, folks. dow jones industrials, claw back of epic proportions. traders have not seen anything like it. clawback, selloff, claw back. down 500 points. we were down 1089. as i toss to connell and melissa heard from folks on new york stock exchange. there is chatter that china may cut something, possibly rates tonight. melissa: the dow is down 55 pints. that is not the worst of it. dow plunged 1000 points at the open. biggest one day drop we've ever seen. volatility has not stopped. only 40 seconds left.