mark: still ahead, dennis lockhart.oes he think the fed is on path for three rate hikes this year? this is bloomberg. ♪ is "bloomberg markets." for a market check. julie hyman is here. have we got some movement? julie:. overall, for a market c. they are very little changed after earlier touching records once again. we see now a little bouncing around between gains and losses as we enter the 47th straight session the s&p 500 has not moved at least 1% as of the close of trading. as you can see, the dow and nasdaq are slightly in the green. let's move on to things that are moving more. mgm is one. the company coming out posting underwhelming fourth-quarter earnings. it was hurt by flatter revenue growth for mgm china and the cost of opening new casinos in the united states. there has been this choppy recovery from the gambling slump in macau and it looks like the company is not yet recovering from that. those shares down about 7% in today's trading. we are also watching kraft heinz today. those shares are also moving lower

coming up on bloomberg markets and interview with fed president dennis lockhart -- dennis lockhart.stern time. time now for other stories making headlines at this hour. i am emma chandra with your business flash. the biggest u.s. banks would cash in if president trump comes through on his promise to cut corporate taxes. bloomberg crunched the numbers and the bank could save a combined $12 billion a year. the president is for cutting the tax rate to 15%. a judge in delaware has temporarily prevented cigna from scrapping a merger with and some. the judge said they couldn't pull out of the deal after a federal judge blocked the deal as anti-competitive. the pricesas raised of some software, laptops and tablets in the u.k. by as much as 15%. the reason, the collapse in the pound after britain voted last june to leave the european union. several months ago microsoft said it would raise the cost of software services by up to 22%. that is your bloomberg business flash. this is bloomberg. david: american businesses eager to see the details of president economyplans to the especially when it

. >> i had to ask dennis lockhart if the march meeting is alive -- live.ople read it janet yellen's two days of testimony and said she sounded more hawkish, she may be going for a march hike. i thought dennis lockhart would say i am not there yet, but here is what he said. >> i think she kept all options open. she kept the march meeting live, which i think is the right posture at this moment. >> one thing that is important whenraders and investors, i asked dennis lockhart about a may move, he said as a matter of fact, we do not have a press conference. if we really need to come up we can collate press conference. we can say we are going to do it. therefore, the fed could move in may, according to dennis lockhart. markets have been betting that. see the odds of the march hike, still about one in three. the odds of the may hike about 58.7, it was over 60 24 hours ago. i thought these traders betting on this were betting on the moon. but he said it could be an eventuality. they may not have a need to move in may, but they could. rishaad: there was that jump i

bloomberg markets speaking with dennis lockhart.0:30 new london, york. global news 24 hours a day powered by more than 2600 journalists and analysts in more than 120 countries. this is bloomberg. rishaad: right, well, i am rishaad salamat. we can draw a line under the morning session in tokyo. sophie. theie: let's check in with currency markets, some movements there. the onshore yuan strengthening by the most in a week as the dollar continues to slide, this after their release of china's fdi data. the economic ministries said fbi fell to 80.1 billion yuan. the median as trent was 1.4% rise. saying this is because of lunar new year and volatility for january is indicative of what will come for the year. looking at the japanese yen today, if we take a look at what is going on with this currency, picking up pace after falling to a two week low on wednesday, traders pointing to declining treasury yields as being the catalyst here. this of the dollar falls against major currencies. checking in on equity markets, hong kong stocks, the han

a fed president dennis lockhart --his shop is putting a terrific, controversial gdp and inflation theoriesckhart, later this morning. this is bloomberg. ♪ ♪ the hour.st i'm guy johnson in london. tom keene in washington. still with jason furman, senior fellow. jason, i want to come back to the border tax. there are noises coming out of europe and they are growing louder that a border tax would be a protectionist measure and as a result of which, we would end up with a massive case that could be really debilitating for both sides of the atlantic. is that the wrong response? jason: that is the wrong response. if we went to a border tax system, the way to think about that is that you are taxing companies based on destination, where their sales went to, rather than on origin, whether profits came from. sales is a much easier based attacks and it is much harder to manipulate and has a real logic to it. it is not protectionist. the response i would recommend to europe if the united states did that would be to adopt the same tax system, switch over to destination-based taxation. if the whole worl

does that more than one beneficial including dennis lockhart last ,eek and i interviewed him also, its a live march meeting. live does not mean the fed walks through that door that is now open to a march high, but it means the fed is thinking about it, looking at it, and that is what is so important. j powell, a governor at the board for the fed in washington speaking in new york today said all these same things, but he added that he does not see the economy overheating. he still sees some slack in the labor market. he said one thing the fed can do -- it can be patient, so seeming to say to me he's going to watch the data between now and the march 15 meeting and again, get some strong data, get a big consensus, maybe the fed moves, but maybe they don't. markets are on notice now that the fed is thinking about it. >> am curious about the market reaction. what took the biggest hit? >> the reaction was muted generally. there was hope it would deliver something different than the statement said last month. the reaction was slightly dovish. you saw the yield come off of it and the dollar g

we will speak to atlanta fed president dennis lockhart. at 11:30 hong kong time, 3:30 p.m. london, 10:30 a.m. in new york. yousef: it is decision day in egypt, getting ready to release the latest recall. one of the highest inflation rates, economists are betting they will hold the benchmark. for more analysis, we go straight to our guest. let me show you this chart on the bloomberg. we have laid it out for you. you have the line in yellow, where the central bank has its interest rate. the line in white, that is interesting. that is the egyptian pound against the u.s. dollar. look at is strengthening. it is 10% in five trading sessions. the light blue, that is the key inflation. let's talk about all of this senior bank.al what do you expect it to do? >> we are expecting the central bank to hold any change, because it is too early to make a move on that front. they have preempted that hike where we are seeing inflation, where they raise interest rates. my view is it will take time to boost the economy, given that almost 30% that we have seen

dennis lockhart and dallas fed president, robert kaplan.mel foods and kohl's report before the open, after the close, hewlett-packard enterprise and nordstrom. >>> president trump will meet with executives of manufacturing companies to discuss efforts to jump start the american economy. the focus is set to be on deregulation, work force training, infrastructure, taxes and trade. this is his second meeting with his manufacturing council, a council led by the ceo of dow. calling them to the white house less than 30 days since they last came to discuss some of these issues. a signal perhaps that they had their homework, they will present it, talking about the issues. the question is will that translate into actual policy? >> absolutely right. it's interesting you use that word homework. we heard that from other ceos. some finance ceos mentioned they were given homework and to report back. the first meeting grabs the headline, but in the second and third meeting do we see action from it. >> especially now because he has more cabinet secretaries

jeffrey lacker, rob kaplan and dennis lockhart. we also get december ppi data this morning.results from dr. pepper, snapple, molson coors and after the bell, we hear from insurance giant aig. >>> front and center is president trump's national security adviser michael flynn resigning. the departure came hours after the justice department learned that flynn was subject to blackmail because he misled mike pence and other senior officials about his communications with the russian ambassador to the yig united states. keith kellogg, a top policy adviser for the president trump campaign is now acting national security adviser. this may have come as a surprise, but it did seem like some traders are pegging the weakness in the dollar to this abrupt resignation of michael flynn. >> i think it came as a surprise relative to the last week or so. during the course of yesterday it was starting to point that way. all eyes, as edward lawrence was telling us, on the various names heading to the white house today, including david petraeus. >>> credit suisse reporting a wider than expected los

time, by a discussion with the fed president dennis lockhart. the fed is firmly in focus.et's talk a little bit about how we priced it. we see some interesting diversions is. you have got interest rate expectations rising, the dollar going down. explain. on thewe are getting dollar. let's get his take. with dust are starting to see a move in expectations for march. you get into the middle of the summer it is almost a done deal to have one that hike ride in. why is the dollar not responding? chris: that is a good question. two-year swap rates have pushed up and so normally you would expect the rate spread to drive the dollar stronger. ahead of those the retail sale -- sales in the cpi data which pushed retire, what we were seeing is strong demand for carry trade for high-yield commodity currencies. typically, and that environment, that dollar tends to underperform. i am wondering whether the amount of money that investors are putting to work having been underweight emerging markets back in this more synchronized global growth trend which could be a story for 2017, that is p

i want to quickly bring up -- i was inspired by that dennis lockhart soundbite to bring this up. i know you will appreciate it. city economic society -- surprise index for the u.s. it tells a state it is beating economists estimates and we are at the highest level since 2014. why is the interest rate probability coming back from above 40 two below 40? it is small margins, given that many thought yellen was more hawkish than the fed members we have spoken to this week, and back that up? beenclearly, it has powerful. economic growth is 1% higher than expected three or four months ago. that has really powered the equity market higher, and bond yields. it is not just the u.s. recent data on shipping has listings, movement on boxcar movements, poor traffic. -- port traffic. this is good economic growth. mark: 2, 3, does it matter? tim: try to rank what is the most important piece of news in the next two months? i think the march meeting is not the most important. i think it is trump's tax announcement. president an active that it is not so important to markets whether they do or do no

dennis lockhart, who's kind of a centrist, the atlanta fed president, said the same thing.economy continues to do as well as it has, if inflation picks up, if there's some prospect of fiscal stimulus, there's a very real chance they'll do more rate hikes than the markets are expecting. >> you think a rate hike in march is likely? >> i don't think it's likely. i think 40% chance. >> that's higher than the market has been. >> i think three rate hikes this year is still the base case. there's more likely to be more than that than less. >> david, thank you very much. >> you're welcome. >> you're quiet. >> just listening. >> that's a first. >> how long were you at the -- >> 30 years at "the wall street journal." >> was there some big wall between you and the editorial board? >> absolutely, and it had barbed wire on top. >> as big as the wall trump is going to build? >> we actually had a wall. did you see the thing where the mexicans say they'll build the wall -- >> did the editorial board even talk to you? >> say hello in the men's room. >> then they wouldn't talk but give you s

richmond fed president, jeffrey lacker, dallas fed president, rob kaplan, atlanta fed president, dennis lockhart will also get the december producer price index data this morning. >> that for me? >> no, i'm got going to say pp. we had a guy yesterday say pp and doo-doo. we did, dom. >> you're talk about what you do do. he was talking about the tpp and what you do do. >> he was a potty mouth guest. >> it wasn't potty mouth. >> it's cable, but there's no place for that. >> you're so mature. no place for that. as for earnings, look for results from dr. pepper, snapple, molson coors and t mobile. after the close we'll hear from aig. if you come on here with some don't chase the rally, knee jerk -- every day there was a don't chase the rally story. >> you said dooty on air. >> do you have don't chase the rally story? >> no, i'm here to talk about the rally. >> he's here to talk about the rally and what's been happening with it. >> have i been giving good advice to people, don't chase the rally? what if people did not buy into this at 17,500, should we be happy? >> that's why investors and financial a

atlanta fed president dennis lockhart and dallas fed president, robert kaplan.s for earnings, hormel foods and kohl's report before the open, after the close, gap, close, hewlett-packard enterprise and nordstrom. in washington today president trump will meet with executives of manufacturing companies to discuss efforts to jump start the american economy. the focus is set to be on deregulation, work force training, infrastructure, taxes and trade. here's what the president said yesterday about the timeline for tax reform. >> before we do the tax, which is actually very well finalized, but we can't submit it until the healthcare statutorily or otherwise. we're doing the healthcare, moving along very well. sometime in the month of march, maybe mid to early march we'll be submitting something that i think people will be impressed by. >> better hurry, because treasury secretary says august for tax reform. that's what we'll be talking to steve mnuchin about. he said the trump administration is also targeting a goal of economic growth of 3% or higher. there is a print

i look at dennis lockhart, who will join us on bloomberg later today, the atlanta fed numbers sticky,nflation, the dallas inflation, the cleveland inflation. what does the number, the statistic begin to suggest high inflation? chair fischer: our target is 2%. obviously you don't hear that exactly, you hope to be very close to. we are as worried of being below as being above. it is something which if you are very close to 2%, it's not a problem. if it is significantly worried g below as being above. above, you begin to worry. and you begin to act. tom: part of our relationship over the years at davos and other important meetings has been, i really don't talk to you about the parlor game -- power game. i believe there is a march 15 meeting. changegoldman sachs their probabilities of what the fed will do. not specifically what will you do at the march meeting, but does this new inflation dynamic change the cadence of 2 or 3 rate increases as we go through the end of the year? chair fischer: i don't want to but you numbers on 2 or 3, this is consistent with what we have thought should be