rally, aftereuro draghi didn't talk.it show you anything about positioning that the lack of talk at notable move? cameron: there is a real sense there is a fear of missing out amongst discretionary currency on this incipient euro rally. i think people were hoping for a dip to buy.- for a if yellen had given droppings speech -- draghi's speech and vice versa, it would have been the same. >> we have stopped continuing to hit all-time highs, not the recent days but not sue long ago. not so long ago. gold is up on paper. best year since 2010. japanese yen highest on paper. when you make of this? doesn't something -- what do you make of this? cameron: the dollar is going down against everything. irregardless of the quality of this. over long periods of time, there tends to be a negative correlation between cpi and asset gains. lo is a positive is a positive low for assets. thearlier, we talked about market maybe not pricing in the correct amount of central bankers assessing financial stability. let us play what he had to say

paying more attention to mario draghi. >> investors should be paying more attention to draghi, not yellen. >> walking on eggshells. >> everything to gain is so dependent. obviously if the euro zone was to show any signs of rolling over, inflation drifts back down it may be very difficult for them to announce anything at all but certainly the market is looking for some clarity. >> the central bankers want to be very gradual, very careful in both signaling and implementing the withdrawal of this extraordinary accommodation they put in place the last few years. >> how do you exit in a careful way where you don't signal too much you're exiting and still give time for the economies to do well and still give time for the inflation to come up and i think he will at jack hole go carefully forward. >> the economy there is more fragile than the u.s. from a structural perspective so i think the draghi comments will have much more information content at this stage. >> the e.c. wants to always say, we're always going to say nothing and leave our options open but the market will hear what it wants to h

>> draghi. >> draghi. >> draghi.ho is at jackson hole next year, chair yellen or chair cohen? >> gary cohn. >> gary cohn. >> gary cohn. jonathan: that was an easy one. it has been great to have you on the program. thank you very much. from new york, that will do it for us. we will see you next friday. 5:00 p.m. in london. for our viewers worldwide, you are watching "bloomberg real yield." ♪ ♪ emily: he was tapped to be heir to the softbank empire. arora was raised the son of an indian air force officer and he came to the u.s. for grad school. in 2004 he got the job of a lifetime. larry page and sergey brin hired arora to help move google into an online ad powerhouse, making him one of the most sought after tech execs in the world. a decade later he was named softbank president with a plan to eventually make him ceo. but as son's retirement approached, arora said it became

>> draghi. >> draghi. >> draghi. >> he was there next week, yellen or cohn?n. >> gary cohn. >> gary cohn. easy one.that was an it has been great to have you on the program. from new york, we will see you next friday. it is "bloomberg real yield ." ♪ got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. emily: he was tapped to be heir to the softbank empire. he was raised the son of an indian officer and he came to the u.s. for grad school. in 2004 he got the job of a lifetime. larry page and sergey brin hired arora to help move google into an online ad powerhouse, making him one of the most sought after tech execs in the world. a decade later he was named president. with a plan to eventually make him ceo. but as

>> draghi. >> draghi. >> draghi. jonathan: chair yellen or chair cohen?n. >> gary cohn. >> gary cohn. jonathan: that was an easy one. it has been great to have you on the program. thank you very much. from new york, we will see you next friday. 5:00 p.m. in london. for our viewers worldwide, you are watching "bloomberg real yield." ♪ ♪ emily: she's one of the most recognizable women in the world. sheryl sandberg helped build google ads into a multibillion-dollar business, then she did it again at facebook. she's into her 10th year as the social network's coo, having made a giant dent with her book, "lean in: a call to action for working women." then in 2015, the unthinkable happened.

would you take yellen's speech or mario draghi's? subadra: mario draghi. krishna: mario draghi.ario draghi. jonathan: who is at jackson hole next year -- chair yellen or chair cohn. subadra: cohn. krishna: cohn. ee.t: is three for thr cohn. jonathan: guys, it has been great to have you with us on the program. thank you very much. from your, we will see you next friday. to our viewers worldwide coming up and watching "bloomberg real yield." -- to our viewers worldwide, you have been watching "bloomberg real yield." ♪ ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. vonnie: it is called 30 p.m. in new york and 5:30 p.m. in london and 12:30 a.m. in hong kong. i vonnie quinn. -- i am vonnie quinn. welcome to "bloomberg markets." ♪ vonnie: from bloomberg world headquarters in new york, here the top stories on the bloomberg from around the world that we are following. u.s. st

draghi will say anything relevant to policy.hat probably wait until the next governing counseling meeting in september. mark: a couple of policymakers in the last week about the euro, they are shrugging their shoulders, they are not worried. within the private meetings of the ecb, from the minutes, they are worried about and overshoot. what is the path of the discussion on september 7, will the euro strength hold and will mario draghi be forced to address it in the accompanying meeting? care aboutral banks the currency in so far as how does that interact with the real economy. the ecb and mario draghi will have to address that. they will get a question at a press conference. from a u.s. rates perspective, i look at -- when i look for in the next couple of ecb meetings, where we get the change to qe in october or an announcement sometime after? that can have a major impact on both the european, u.s., and japanese rate markets. you are getting more of an unwind of qe. the ecb runoff is a much bigger issue for these markets, becaus

>> draghi. >> draghi. >> draghi. who is at jackson hole next year, chair yellen or chair cohen? >> gary cohn. >> gary cohn. >> gary cohn. jonathan: that was an easy one. it has been great to have you on the program. thank you very much. from new york, that will do it for us. we will see you next friday. 5:00 p.m. in london. for our viewers worldwide, you are watching "bloomberg real yield." ♪ ♪ best, theon bloomberg stories that shape the week in business around the world. ceos turn on president trump who lashes back. >> ceos are going to be reluctant to get too close to trump. who knows when the next outburst to get this was not enough you to withdraw, what would be echo -- be? from europe and japan surprised the city upside.

♪ anna: janet yellen and mario draghi.he central bank's inflation target is that it will be met. >> to low inflation is dangerous. that was probably the think in taking the 2% target. japan's core consumer prices inch higher, lagging behind the gains in economic growth. harvey sentane gasoline surging. -- sends gasoline surging. manus: judgment day. heir prepares to receive his fate. we are live in seoul. ♪ anna: a welcome to "bloomberg daybreak: europe." there is an old saying which is around and around she goes, where she settles, nobody knows. where will be dollar and tonight at 8:00 p.m. in the united states of america? the positioning is so stretched. there is something that has crept into the psyche of the market. rally like this and we are heading for the first monthly gain on the dollar. the question for markets is according to networks. investors are undermining the prospects of federal reserve tightening. anna: we are seeing dollar pools adding to the positioning. not everybody is bullish. there is a survey showi

speech. >> they should be paying more attention to draghi. >> i would pay more attention to mario draghirea -- draghi. >> i don't expect janet yellen to say anything. what does that speech from draghi mean to you today? tell me about the markets. of three weeks ago when we first heard of the speech, it was all about risk. that seems to his -- have faded. >> i think to some extent we are not set up and the reason is draghi came out two weeks ago and said i am going to uphold what the ecb council said it. of they will not be talking about new policy. maybe this becomes a reruns. you are looking at a euro that has had a nice rally against the dollar. personally the dollar is going to strengthen in the near term. i think if you're looking at emboldened.s more joanathan: everybody thought this was not going to be much of a speech. is this going to be like convention? theoesn't look like that's intervention and >> he is been rattled by what's going on. they don't want to signal that change is coming. ago, it was a revolution. keephe ecb is trying to everything calm. he doesn't want to go down

isardless of what draghi today.investors and analysts say the euro is strengthening because of stronger european fundamentals. julia: is it a euro story or a dollar weakness story? >> it is both. the downside and the outlook for the u.s. is a little bit more stable. people are thinking mario draghi might lean against euro strength it is sounds like he's not done that. he has ruled it out for now and the euro is taking that path higher. >> making the point that the , whenion swaps are over the ecb began qe in the march of 2015. both the ecble for and the fed in terms of level of inflation here. >> mario draghi is making , sayarly themed comments and regulators must kind of still continue to be vigilant. central supervision's reestablish trust in the eu banks. echoing what they talked about fanatically. julia: thank you, covering the fed for bloomberg mirrors -- news and kathleen hays. let's get a check of the headlines with mark crumpton. astronauts onboard the international space station got this dramatic look at hu

it wasn't really mario draghi related. this was on the back of pmi numbers, flash numbers for august which with by in large better than expected. except for the services number for the eurozone that came in at 54.9 a touch below expectations when it comes to manufacturing those prints were larger than expected 57.4, and 55.8, also a touch higher than anticipated. i think there was a big surprise coming out of germany. we saw that economy and the eurozone economy at large stalling when it came to the last july pmi numbers. there was a sense of plateauing, but the german pmi numbers, the manufacturing print, that saw quite a bit of a jump that led to this slight rise in the euro/dollar. what do you make of the pmi numbers? we thought there would be slowing, leveling off. are you surprised there is a pickup sooner rather than later? >> i'm not surprised you're right to highlight the point that some softer economic data recently has made people question whether the economy i losing traction, whether the currency is having an e

mario draghi says we are watching inflation, we have to be patient.is being stopped more, and governor kuroda is not going to move at all because inflation is so far from target. i wonder if the federal reserve continues on this path, if it is different from what everybody else is doing. alan blinderke to from jackson hole, he said he would not want to raise rates until inflation is clearly -- not just ending the decline, but actually starting to rise again. it is an interesting thing to watch. we will look at the september meeting with rob kaplan from the dallas fed, told us as well he is waiting to see if there should be a rate hike in december, he does not rule out an earlier rate hike. there is a possibility it could rise, but i think this is something that has been brewing for a while. mario draghi was surprising. kuroda says inflation is so far from target it is not a surprise. su: thank you so -- betty: thank you so much for that exclusive interview with governor kuroda. more headlines expected to continue to pour in over the next few hours wit

draghi just spoke in germany.rule, which gives an estimate what a central bank interest rate should be. #btv 3 622. the eurozone is a lot of countries. to take on some of the estimated rates is quite comfortable. poland, 9%. -1.3% for the periphery. ireland in between. fantastic chart from queen of charts. u.k. government getting more worried about the economy feeling less confident according to a new report by the recruitment and employment confederation. it said its index has fallen to the lowest level this year. this is industrial metals versus the rest. it shows the disparity within the commodities space. this is in the last year. look at how industrial metals have fared. compare it to precious metals. agriculture, energy, all in the negative. there's a big divergence. it isn't all about metals. francine: it isn't all about metals, but a big chunk is about metals. now let's turn to china. abandoned plans to buy a plot in london for 470 million pounds. this is the latest example of chinese firms aiming to avoid

and we got that double dose of central bank speak janet yellen and draghi. euro firmer, little movement there. the pound, weaker again for the week it's at 1.2815, this is the fourth week in a row we're seeing pound declines. it's helping the ftse 100 trading near the highs of the week >> the pound at an eight-year low against the euro earlier in the week gold prices, which have not done much this week not doing much today flat at 1292 >>> on today's wall street agenda just one piece of economic date ta to wrap up the week economists are looking for a drop in orders for big ticket items like heavy appliances, aircraft and construction quip sgloo equipment. >>> wall street will be watching janet yellen today delivering her speech at jackson hole fed watchers will be looking for yellen to give clues on winding down the balance sheet which we expect to come this year, potentially as early as the meeting in september also from ecb president mario draghi, we'll have live coverage on cnbc. interviews with cleveland fed president, loretta mester and one of the gove

draghi will be watched in case you touches on the euro.have the estonian central bank governor who did not seem to perturbed. will draghi even touched on the euro? does he need to or not, the euro strength? probablyect chris is right and we will probably get more policy wise out of jackson hole from janet yellen then mario draghi. if you look at what draghi said yesterday, sort of and academics reach. i suspect with the ecb beating just around the corner, i think september 6, draghi will probably keep his powder dry. wilmington about either. speaks afteri european markets are closed. janet yellen i guess it's while u.s. markets are still open. will either of them give any sort of hint at hawkishness? chris, let me ask you that. >> i think it is yellen where the hawkishness is likely to come through. you have seen quite a bit of strength coming through the u.s. dollar over the last few days. a solid bounce in what has been a steady downtrend. this is where we should be watching. the market is primed perhaps for a concession from janet yelle

does draghi follow the same script? will he be be ordering from a market -- will he be boring from a market perspective? andrew: all of the messaging ahead of this week is he will be boring.he spoke earlier this week . i think it was intentionally boring. if you went back a month ago or two months ago, a lot of investors in the u.s. were really saying we are more focused on draghi's speech because the fed is dependent on inflation, a lot of what we expect to happen has already been priced in on the balance sheet. the ecb is where we can really be surprised. that is where growth has really come in europe, about expectations. -- above expectation. there were a lot of expectations that maybe this will be the speech where he would signal a change, and i do not think we will get it today. in keeping with yellen and mario draghi and thinking about why we are not getting surprising market moving speeches here, we're in an environment where you are thinking about removing some accommodation. when you're in an environment where

we are going to bring you mario draghi's speech.e from germany, where he addresses the sixth meeting on the economic sciences. he is due to start speaking in just a few minutes. ♪ manus: wpp have sent a warning shot to the marketplace. the stock is down 9.41%. bloomberg is speaking to the ceo on the phone. saying it is a very tough business environment. the second quarter was tougher than the first. that stating perhaps a very obvious statement. he does go on to say there was a seminal event in q1 which was forfailed kraft bid unilever. reverberated throughout the industry. that hit advertising spending. if we go back to the context of what wpp have said to the market, they warned that spending coming through on consumer goods companies is where the real pressure has been. it cut its full-year forecast amid lower spending by customers in consumer goods and manufacturing. let's get your business flash. sebastian salek is standing by. sebastian: let's get more on that story. shares have fallen by as much as 12%. that is after the worl

kuroda, draghi, and yelling. -- and janet yellen.problem. -- had a similar problem. kathleen: if you think about coming into jackson hole, we can see around the world, i am going to speak about growth. persistently weak inflation and the central banks have this question of the ventral reduction. how are they going to go about it? we can put governor kuroda to one side. he has made it clear he doesn't want to talk about the exit. japan is so far from its inflation target. attending jackson hole every year. let's take a look at janet yellen. at the beginning of the year, who would have thought the fed chair would have to be thinking twice about raising interest rates one more time this year? as inflation started falling away from target, it has put officials on the defensive. people would love to hear when she speaks her latest sense of inflation. is the weakness transitory or is she giving it more weight and offense that maybe this would slow her down -- and a sense that maybe this would slow her down? they are going to start their ba

alan's point was, looks, why would mario draghi, believe -- all the way to -- why would mario draghiome all the way to jackson hole if he is not going to send some kind of message? kathleen, thank you so much. .oining us now is ed shing first of all, good morning. good morning. francine: this is the inflation chart for the boj. and white ishe boj the one that is struggling the most. if you were to ask question to any central banker in jackson hole, who would it be? ed: mario draghi. i would ask him if he is really concerned about the euro. clearly, it is having an effect. if you look at the asset prices in the eurozone, they are coming off. you are a pound investor, you're very happy. if you --at what point is this going to hurt the economy? therefore, does the work of tightening -- francine: if you are a german exporter, you are ok, i presume, with the euro level, but not if you were a french or spanish exporter. ed: i think we shouldn't exaggerate too much. it depends on the way you are exporting. basis, then year trade is 5%. it is not that dramatic yet. even if you look at euro-d

investors should more attention to draghi then yellen next week. >> i will more attention to mario draghidon't think the fed is going to want to shake the process, so i do not expect janet yellen as chair of the fed to be saying anything. jonathan: with draghi taking center stage, here to discuss is eys and michael mckee. what can we expect because there were doubts last week as to whether this would be the market moving speech ahead of potential tapering in a couple of might -- months? has becomeon hole this foreign that global wall street expects central bankers to make announcements because ben bernanke did it twice it most of the time the speeches we get are rather bland and academic and i would suspect those concerns are correct because you go back to the last ecb meeting and draghi set at the time the governing council agreed to wait until the autumn to discuss the mechanics of qe and the timing of qe. to this is not autumn yet and he is also a long way from home and remarks like that are probably better given if you are going to get specific hints or clues at an ecb meeting or a fo

on mario draghi's side, he will talk about the path towards normalization.ot put much emphases object currency if the currency came in that would be news. >> the political headlines out of washington, the concern over the prospect of a government shutdown, president trump threatening he will shut the government down if a border wall between mexico and the united states is not paid off what are your thoughts on this shutdown happening and the impact that could have >> i don't wanted to be forecasting plitt kaolitical developments like that but it's not in our forecast that we'll have a disrpuptiondisruption i think if we had a volatile disruption in financial markets, that could slow that down. short of that, don't think we'll see the fed delay on that front. we're not looking for the government to shut down, but certainly the risks are there. >> bruce, we consider the global picture, of course that will be discussed this week at jackson hole the similarities in europe as there are in the u.s growth numbers and unemployment numbers are encouraging, but no inf

janetahead, more on yellen and mario draghi.look at what investors are hoping to hear with bank of america merrill lynch. haidi: plus, we analyze the inest incremental tick up japanese inflation, painfully slow still. this is bloomberg. ♪ ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. rishaad: i am rishaad salamat in the hong kong. policy makers meeting in jackson hole, most major currency pairs little changed. sees the dollar correcting higher, possibly against the euro. great to see you. what gives you this idea? something i have noticed, a change in sentiment towards dollar strength. what would be the foundation? >> if you think about the terminal fed funds rate, where it will be when it finishes its tightening cycle. that is low, peak pessimism around the u.s. the majority of the people thought it would be around 2.5%, incredibly low compared to the eurozone. that is the foundation. look at quantitative and positioning metrics, it does scream out that dollar positioning is extreme. rishaad: we have see

janet yellen and mario draghi meet in wyoming. we

how much can you take away from draghi?erned there is not inflation, and they are focused on the strength of the euro. does that take the thunder from mario draghi? mohamed: no, i think if anything it shows they are going to win. and this currency like a hot potato in a global economy, no one wants it. if you end up with it, it is a problem because it undermines competitiveness. it is heavy to growth, and increases inflation when you don't get the inflation you want. at the same time mr. draghi has to respond to other things he is seeing in the economy and politically. so if anything what you saw from the minutes yesterday, very much increasing my interest in what he is saying. reporter: let's talk about what they will ultimately do. we know at some point in the next couple of months and what we understand from the most recent report they want to hold off. they communicate to the market, what that will be. qe at the current pace, what is next? mohamed: i think less qe will be very gradual. you will see central banks remaini

regulations might actually be hampering growth and maybe we should look into that and i think mario draghi might come from the same type of approach. jonathan: martin, for investors, how have you prepared for the removal of accommodation in europe when central bank

draghi speaks 4:00 p.m. new york time friday.nteresting, as is this, as donald trump threatens to shut down the government in october over border wall funding. in normal times, rates on fixed income investment go higher the longer the maturity. something unusual is happening. investors are demanding higher rates on those securities maturing on october 5, which is around the time the treasury estimated it won't be able to pay its debts. some are calling it a kink in the yield curve which is becoming somewhat more pronounced, which leads us to the ability of the president to push through his agenda. wonderful chart showing us the most tax companies relative to the s&p 500 index. you can see how they rose relative to the s&p after trump was elected. he will be able to push through his tax agenda dissipate, we see those types of companies fall relative to the s&p 500. wonderful topic of conversation. euro-pound parity. of the 62 participants in our survey, only hsbc and morgan stanley see parity or above by mid-2018. morgan stanley i

when it we going to hear back from mario draghi?n eggshells the last hours coming to policy in his speech last night. take a look at volatility across currency markets. there is a lot of anxiety on where currencies are going to go, where the euro is going to go. we did see a little bit more upside heading into the speech from draghi. the spread between the 1, 2 euro volatility has widened. it is very different from what we are seeing with the yen, the cad, the pound. hang on for the traders. betty: even after his very carefully crafted comments, yvonne, you still saw the euro rise. it really is quite a conundrum for them where they have got the economic conditions in europe rising as well as the euro itself, which has been tightening since the speech in june. the big question is going to be what does he follow up on coming this friday and how does that compare to what janet yellen is going to say? a lot of scuttlebutt in the markets about what we will hear from the central banks. what will come out of that is that nothing comes out

manus: draghi coming he didn't just draghi, he didn't really take the reins.he market itself is paying a huge premium, three times the amount. this is your dollar won -- this is euro dollar won. indeed, dollars turning. -- dollar sterling. how real is the risk? ben: in the business of building balance portfolios, we lean portfolios on the basis of how we assess the risk. , it isn't action slamdunk. these things are in the balance. there is clear evidence the euro has been strong and although it is not creeping into the evidence, it is hurting manufacturing. of course, it could. it reduces competitiveness and it brings in deflationary forms. my long answer. in the balance so the risk is real. anna: it feels like the last couple of jackson hole's we have gone in saying interest rates are so low. how can they stay so low? to illustrate the global nature of the low interest rate environment, one of my colleagues found yields dropping below 6%. anyone'st tapping into knowledge of lending money to the ukraine, mongolia. even if your government in a orce that has bee

martin: it is a difficult situation for mario draghi.t time he talked a lot about the exchange rate and the euro being overvalued. of 2014.in the spring then he had some ammunition. that worked. this is why the euro then depreciated over the next nine months. this time around, he had very little ammunition. if he talks about the euro being too strong, what is he supposed to do? can he further weaken monetary policy? probably no. i think that the main reaction on the part of the ecb will be to keep the announcement of tapering, which is probably going to come in september, october, in a combined communication, as dovish as possible. for example, a statement that goes like, we have decided to extend our monetary policy measures beyond the end of 2017, and then say, we might decide to reduce monthly purchases. that would be quite a dovish statement. martin, what is fair value for the euro? you could argue that 1.20 for germany is not that high. martin: this is a one-size-fits-all currency. it is very difficult to handle. for germany, the cu

. >> mario draghi took this opportunity not to signal what the ecb does or does not do next.took this more as an occasion to talk about what the big challenges are globally. he is especially concerned about openness. he is concerned about protectionism. makeconcerned about how to multilateral cooperation sustainable, fair, equitable. when it comes to the currency, you can take away that either mario draghi is not concerned about the euro because he did not explicitly single it out, but on the other hand, you could say, mario draghi is going to wait for the next ecb meeting, or mario draghi doesn't want to fire up the european bull. you know how currency markets are. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. loaurewo bank noble -- the weeks's top business headlines. samsung reveals its latest galaxy note smartphone, hoping to a race memories -- erase memories of its last phone. this is bloomberg. ♪ julie: this is "bloomberg best." i am julie hyman. let's continue our global tour of the week's top business storie

or should we expect fireworks from the fed >> i would think mario draghi will be careful. the ecb's meeting in just under two weeks. if they want to make big statements about tapering, i suspect it would be more likely there. though one never knows in terms of monetary policy, again, i think he'll be careful. we've seen a range of mixed data, as we were talking about earlier, strong growth data, but weak inflation data. i don't know if there's anything new for him to say today on that i suspect with mario draghi on the monetary front, it will be relatively calm. yellen could be more interesting. there are a number of key issues floating around. she has used the jackson hole symposium to make major statements before. but i think are a couple restraining issues one is the debt ceiling deadline coming up at the end of september, mid-october that could disrupt markets i don't know if you want to make strong statements going into that so i suspect she's more likely to focus on what the topic of her speech is, which is financial stability and perhaps -- what i'll be interested t

and would draghi want to lean in on that?y in germany is probably the wrong price, but for the rest of the eurozone, which is still not back on its feet, you have to assume they don't want it to get that much more expensive. have you trade core periphery in europe? >> that is not how i think about it when i am positioning my portfolio. we are buying individual companies. if you did think about it like that, i think you continue to have the problem you have had since the creation of the euro, which is without full unity, he will end up with a account deficit in the eurozone, and it will not get any better. you have to continue to pander to germany, which has tried to do more structural reform in the periphery. matt: thank you. if you are a bloomberg television customer, you can go back and watch freddie's comments from previously. tv ust tuned in on . you can also follow along with our charts and functions, which you see on the right side of the screen and on the bottom of the screen, you see a little, blue link. freddie w

around draghi also certain extents around yellen.he has stated the subject of her speech is going to be on financial stability. i think this is going to be we have,ng because coming up, the expectations that the fed is going to announce the start of its balance sheet reduction program. reinforcement for the outlook stability. there is so much cash out there because balance sheets are so bloated that it is causing term premiums the amount people are going to accept for looking of their capital. that is very low. it is not until you start to get balance sheet induction that that is going to rise. it is not until that rises until you see asset prices next markets that start -- next to markets that start to the flight. another speech about financial stability, she gives this in -- she gives the timing of the balance sheet reduction. anna: that is where it could be interesting. yellennce that janet could mention her own concerns around valuations? that is something that even slightly away from monetary policy, something that has caught th

the ecb president mario draghi was a busy man -- this week.vering his best before delivering his speech at jackson hole, he addressed the economic sciences before an audience that included 17 nobel prize winners. two of those laureates spoke with bloomberg television about on monetaryments policy. >> obviously they have a problem, in the sense that quantitative easing was an experiment in our modern times. quantitative tightening will also be an experiment in our modern times and, that means that they have to decide what rate and how to reduce the large balance sheet that they currently have. secondly, how that interplay's with increasing rates. i think at the current time the markets tend to be saying in a sense, let us wait and see and watch them evolve, that process of reducing the balance sheet and increasing rates. my view is that the threat of inflation tends to be muted and that gives them more degrees of freedom to experiment, and to see how to reduce the balance sheet size. and not do it precipitously or with the great threat associat

people were expecting janet yellen and mario draghi to mention something.red clear of policy and both have meetings coming up where janet yellen is likely to announce a balance sheet change. i don't think she wanted to front run those discussions. the debt limit issue, a potential government shutdown on october 1. that they alter the plan. officials saying thatcial could change the calculations for the fed. >> are you talking about rate hikes are the balance sheet unwind? .> it is the balance sheet on the rate hike, they are not there yet. you have seen this divide in the fed, a debate around inflation. even in jackson hole, officials said we have to keep moving and the slowdown is transitory. other official said we can afford to be patient because we are talking about one more rate hike. i think that is put off until december. even though they would like to give the thought she in december, it depends on how everything unfolds, especially with respect to debt limit. , layingly on the speech out whether or not she is going to remain as the fed chair, did yo

win andl for draghi to yellen to potentially lose. in a swansong? those in the questions the markets are asking themselves and what extent should we be worried about the debt ceiling? fitch have made it clear about the markets that they want a timely resolution to the debt is byg issue and it prioritizing who do you pay. let's get to juliette solly. house speaker paul ryan said he does not want to see a u.s. government shutdown after president trump threatened congress with that and -- unless it agrees to fund his mexican border wall plan. >> no one is interested in having a shutdown, it is not in our interest to do so. while we work on doing what we said we would do what we have done is to control our border. do not think you need to choose between the two. juliette: the u.s. is preparing another round of sanctions to punish the government of venezuela. would squeezetoll trading in debt. one of the people said the campaign to pressure nicolas sarkozy maduro and number doesn't -- no decision has made. you may be assured under the leadership of presi

. >> mario draghi took this occasion not to deliver a policy message, not to signal what the ecb doesdoes not do next, or when. he took this more as an occasion to talk about what the big challenges are globally. he is especially concerned about openness, and is concerned about protectionism. and he is concerned about how to make multilateral cooperation sustainable, fair, equitable. but when it comes to the currency, what you can take away is that either mario draghi is not concerned about the euro because he did not explicitly single it out. by not singling it out, you could say he is not worried. on the other hand, you could say mario draghi doesn't want to maybe fire up the euro bulls by indicating he will slow them down. you know how currency markets are. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. plus, two nobel laureates size up mario draghi's pronouncements on qe and twos fed presidents share their outlook from jackson hole. coming up, more of the week's top business headlines. samsung unveils its latest galaxy n

paying more attention to mario draghi.

will mario draghi talk down the euro? both did not happen. time. >> that was four years ago. yellen spoke about the deregulation and place. is precious given that bankers have brought like there is no tomorrow. they are telling the banks, don't you dare do something like we have done. it is fair interesting. shery: politically it was interesting. >> possibly i would have done the same. i'm not saying they should not have done quantitative expansion . the second part is mario draghi told us what we heard before. cap psy will raise, perhaps i will not. can show you with my fingers what an taking out of jackson hole. , and major central banks if somebody tells me what is the direction of interest rates, i will tell you flat, flat, or flat. willmeans janet yellen increase and mario draghi said perhaps not. shery: you missed a fourth option? this way. i will throw up a chart right 9433. >> really? shery: take a look. this is what we are talking about. the negative yield is climbing. one of our reporters at bloomberg news is saying that easing is n

very different situation from mario draghi at the ecb.g process. they will have to explain how they are going to do that. the economy there is more fragile than the u.s. so, i think that draghi cost comments will have more information content at this stage the new yellen commented david: take those comments and put them together with the accounts this week. how much did they take away from what draghi might be saying. ? are not seeing strong evidence of inflation and focusing on the strength of the euro. does that take a little thunder away from mario draghi? mohammed: no, if anything, it shows you the dynamo they are in -- it shows you the dial-in they are in. dilemma they arte in. inflation at a time when i getting the inflation you want. at the same time, mr. draghi has to respond to other things he a seeing in the economy and politically. if anything, what you saw from the minutes yesterday, radel much increased -- very much increased my interest in what he's saying. jonathan: we know at some point next couple of months, and what we u

another janet yellen nor mario draghi will announce anything new.he markets might be priced in about the euro. that's where we will see the real price action. manus: cracking piece on the bloomberg this weekend. this is the language he used. volatility. we are a ways away. in talking about the euro? i doubt that very much. financial stability could be a bigger conversation that yellen puts to the marketplace. perhaps we are underpricing that. >> that is a fair point to make. the most recent bed mentioned they were pushing back against deregulation in the financial industry, which weighed on bank industries. now she says they will fight the administration's attempt to roll back the dodd-frank, etc.. most likely scenario is that she will reiterate what has been said before in terms of the fed supporting financial regulation. nothing to definitive either way. matt: what do you expect from trump's speech tonight? and that the market moving or are traitors trying to take politics out of their daily work? >> i don't know how anyone can know what to work o

on the other hand, you could say mario draghi is going to wait for the next ecb meeting or mario draghisn't want to maybe fire up the euro bulls by indicating he will slow them down. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. plus, a size up on mario draghi's assessment on qe and two fed president's share their outlook from jackson hole. coming up, more of the week's top business headlines. samsung unveils its latest galaxy note phone, hoping you -- hoping it can erase members ories of the previous model. >> it has a very large screen, large display. it is the biggest phone yet. julie: this is bloomberg. ♪  ♪ julie: this is "bloomberg best," i'm julie hyman. let's continue our global tour of the top business stories with a clash of investment titans. billionaires carl icahn and and bill ackman dowdell on the future of herbalife. david: herbalife, it may be the stock that has the highest ratio of mentions the market cap of any public traded company in the past few years and is back in the news today with an announcement it

the big ones to watch ourjanet yellen and mario draghi.et yellen of the federal reserve, will they reduce the amount of assets they have lost tonight all the bonds they have been buying in the bonds they have been buying in the last few years, all stuck in a vault somewhere. that's how i like to think of it. it's been ten years since the crisis, starting to reduce that will have an effect on the market, specifically longer term government bonds in the us. they suggested that they would do it so slowly and other such a long period of time, some of the bonds will mature and disappear anyway so we will not even notice. that's a bit ofan will not even notice. that's a bit of an overstatement and i think we will notice in the market. we will see yields and interest rates over the longer ten or 30 year bonds will go the longer ten or 30 year bonds will 9° up the longer ten or 30 year bonds will go up because there is less demand from the big buyer, the federal reserve , from the big buyer, the federal reserve, buying them up over the last ten ye

very different situation for mario draghi at the ecb.e about to embark on a tapering process. they will have to explain how they will do that. the economy there is more fragile than the u.s. from a structural perspective. i think that mario draghi comments will have much more information content at this stage then janet yellen. >> take those comments we anticipate and put them together with the accounts we got this week. how much did they take away from what draghi might be saying? they're saying they're nothing evidence of inflation and the strength of the euro. does that takes some of the thunder away from him? >> no, i think if anything, it shows the dye lemma there -- a dilemma they are in. strong currency is like a hot potato in the global economy, no one wants it. if you end up with it, it is a problem. it undermines your competitiveness, it is a headwind to growth and it depresses inflation and a time when you were not getting the inflation you want. at the same time, mario draghi has to respond to other things he is seen in the e