dudley favors another rate hike in 2017.h now is the release of the july fomc minutes that come out tomorrow. with us to discuss is andrew sheets of morgan stanley. dudley, it does not seem like they are. your view? andrew: i think they still are. it is important to remember that policy is still extremely accommodative. the fed policy rate is still negative in inflation-adjusted terms. there is still an argument to keep rate -- raising that rate modestly simply to make it a little bit less extremely accommodative. jonathan: i find that difficult to understand. the removal of accommodations should be data dependent. if the inflation story is weaker and not stronger, than why are they carrying on the same projections and why are the likes of william dudley saying that his projection for the year has not changed from the one he had eight months ago? scott: there are two elements of this. the first is that inflation is part of the story, but not the entire story and other data has been stronger. measures of industrial production

the other cops, even dudley smith, the corrupt cop, will come to view it as wrong.ured road to self—knowledge. but even if you say you wrote this book in the mindset of 1942, and you refuse to move that mindset to today, you as, as you know, an important literary voice in america today surely have a view as to whether there is a justification for things like the patriot act, that we saw in the bush administration, or indeed the mass surveillance that... no, i don't. no? no, i do not. it does not interest me. i do not acknowledge anything outside the history that i write about. and it is that very quality, the fact that i deny the world today, do not use a cellphone, have never logged onto a computer in my life. that gives these books their power. and it gives these books their immediacy, and the feeling that they were written in that time period. and yet, i am here. i'm 66 years old. i will die in sa years, slightly after my 100th birthday. but i will have a lot of books that will stand. and they will stand because they were written in history's fire. will you, in t

we're also going to hear from bill dudley later on today n.une, his comments were seen as hawkish, and nothing has really changed. inflation is still low. the economy and labor market is still holding up really well. do we finally get some real support for the dollar here on that? >> i think support from the dollar is largely going to come from positioning, squaring of positioning and potentially some technical correction rather than purely on the fundamental front. of course it will get a massive upside surprise in c.p.i. numbers and given where the market is currently sitting, having priced in just barely 125 basis point hike over the next 12 months or so, we are likely to get support for the dollar, even on the fundamental front. but i think right now, numbers close to consensus are likely to provide a fundamental support for the dollar. alix: so sebyastian, from your end, if the dollar isn't vulnerable necessaryly to any kind of real upside or shakeout, what is the biggest asset class that is most vulnerable if we start to see inflation wi

>> the way i see it is president dudley of the new york fed is an important actor.emiere interparis among all the federal reserve banks and bank presidents. i weigh very carefully what he says i interpreted that discussion that he had the other day, his comments, as indicatie ining ti going to start on quantitative tightening rather than quantitative easing, but it's a very gradual process it takes ten ponce to take grip. and as a first baby step, i viewed his comments as saying, we're going to start moving in september. as far as another rate hike, i thought his comments on employment were very interesting and i would very carefully what bill dudley says because he, again, is the leading federal reserve bank president. and i knew that when i was at the dallas fed my successor, mr. kaplan, knows that while he's at the dallas fed. the head of the fed knows that these are important inputs, but you can't set aside when bill dudley mentions anything by the way, he's very well scripted and tied into the board of governors and the board of governors staff. i don't think b

manus: and of course, the other comment coming from dudley. we will talk about that. you don't need a phd, do you, to run the fed? anna: we will get a further update on the asian session in just a moment. for the bloomberg first word news now, let's get to sophie. reporter: donald trump has called out white supremacists for their role in charlottesville. there was an initial failure to peopleese accountable. >> racism is evil and those who cause violence in the same are thugs, including the kkk, neo na hate groupser that are repugnant to everything we hold dear as americans. ceo to : the third quit donald trump's panel in 24 hour. it has become a meshed in the political fallout. this came just hours after kenneth frazier stepped down, followed by the ceo of under armour. president trump has asked his officials to investigate how china handles intellectual property. he directed u.s. trade representative's to consider investigating china's i.t. policies, especially the practice of forcing american companies to operate with their technological know how. world's two bigge

even the evil irish cop, dudley smith...says, "i control people, and if i can't control them i destroy them". he is on a slow path to redemption. a slow, tortuous path to self—sacrifice, salvation and redemption. even as we speak. maybe the conversation we are having and the explanation you give for ultimately the sympathy you have, and who are very bent and corrupt, maybe that is one reason why some people in the us have come to see you as a defender of, for example, the lapd, even during the rodney king fallout, the videotaped beating of a black citizen, and you said, give the lapd a break. if you see the entire three—minute sequence of events, pertaining to rodney king, you will notjudge the lapd anywhere near as harshly. the extracted 56 blows to the head are shocking in that abbreviated context. but that abbreviated context is nothing but a lie. you have to see all of the events that preceded it. you say you think like a detective... i am by the way the yearly mc of the lapd's jack webb awards. oh, i know that. you're c

dudley had to say -- monetary policy is still accommodative, so the level of short-term rates is prettyow, and two, financial conditions have been easing rather than tightening. chris, let's talk about that second issue, because it does strike all of us that despite the fact that the fed has raised now more than once, the financial conditions have actually loosened. ow much of that is the dollar? chris: credit conditions have eased. i think as banks have made more money and felt more confident about the economy, they've eased their credit conditions, and now we're seeing a reacceleration of credit growth. the start of this year it was slowing, and that was a big drama for investors. now it's turning up, and credit is growing going, and that's a gn of a healthy economy, and easing financial conditions. i think it's key. also financial markets. jonathan: soft inflation here in the united states, and a federal reserve that still seems determined about hiking, if dudley's comments are anything to go by. is it a good thing they're not so obsessed or are they missing the point? chris: not at

well dudley says don't

dudley? >> i think the fed will not assert itself on markets for a while. they're comfortable with the notion there will be a high in -- a hike in december, not september. they will wait and get information and react. on the qb side, they will try to side, they the qe will try to make the balance sheet as boring as they can. they don't want to make news, they just want to monitor developments and holdout for the possibility of a december hike. was mohammed boringn talking about a spread. anding us is the director fund manager at the national investor. let's start with some of the currency discussion we just heard. we have seen some recent softness in the dollar. you would think that would be a good thing for middle eastern economies, because not only does it ease pressure on currency pegs, but it boosts the price of oil. the dollarseen how has related to the economy, especially if you look at the east, where tourism has slowed down, especially from the emerging-market countries, dollar has reduced the number of tourists coming from those countries. weaker d

tell me about the transitory inflation that has built dudley -- bill dudley and others he fondled. >>int. as the economy approaches full employment, you're supposed to see price pressure. we are approaching full employment, but the price pressure is not detectable. that is not the same as deflation, but inflation is clearly much lower than what would have been expected, and that is not unique to the u.s. in europe andt japan for a long time indeed, even emerging markets that are traditionally good at having inflation. tom: i want to go from inflation to a part -- to employment. bring up the chart. here is a transitory inflation you had brilliant praise for credit suisse, hidden slack. this is gorgeous. what is hidden slack? that i think the notion is there are people at the margins of the economy who are not being brought back into the active dissipation. and it will take some more stimulus or something, and it is absolutely critical in my view that we achieve that. toving them out gives rise discontents in society that was precisely the topic you were discussing a moment ago. francin

. >>> william dudley says he favors another rate rise this year in an interview dudley said that if theconomy eslov volves as forecast, the fed should hike rates again this year. the new york fed president also praised the trump administration for being "hands-off with the u.s. central bank and for not politicizing monetary policy." >>> let's stick with the u.s want to show you what futures are doing this morning lots of green on the chart the dow jones seen higher to the tune of 40 points. the s&p could add on 3 points. the nasdaq adding on 16 points this after stocks closed sharply higher yesterday this is after we see the absence of further escalation between north korea and the u.s. it was the best day of the summer so far with the dow adding 135 points >>> european markets, many markets are closed today that's why volumes are some what lower. the italian, austrian, polish and greek markets are closed for holiday. the xetra dax is seeing gains to 0.25%. the ftse 100 up by 0.25% the banks once again leading the charge when it comes to the sectors. >>> in the fx markets, the dollar is

. >> holly, on the fed, new york president bill dudley said about an hour ago he would imagine in their september meeting that they will begin the process of selling off some of the bonds on the fed's balance sheet. do you think the market is ready for that is that priced in at that point, or what are you seeing >> i don't think it's entirely priced in yet, bill, although he did make those comments and we saw treasury markets sell off a little bit hon those comment, though if you look at it he didn't say anything really different from what he's been saying regarding his outlook for the economy. he still expects one rate hike by the end year if you expect a lot of fed members, they will say a lot of the same thing and whether the market is pricing that, it's the same story i'm not quite sure if they said they will start reducing the balance sheet in september or they will start laying more groundwork and details for them for the markets to digest. even though a lot of the fed members have said they don't think that there's going to be big repercussions, big market moves, volatility regar

dudley delivering for investors?erman carmakers set to be closing on a deal that would provide hardware fixes for diesel cars. this could add as much as 5 million euros to the cost surrounding the scandal. willis be enough for politicians and the public? we are not done with car news, are we? matt: no speaking of german carmakers and french, british and american carmakers, general motors has completed its sale, closed its sale of opel and vauxhall. the french group that controls -- so general motors closing the sale of german brand and british .rand of its cars here very interesting headline coming across tsa, opel vauxhall, operating free cash flow by 2020 and targeting an operating margin of only 2% by 2020, only 6% by 2026. far asot so bad as european carmakers are concerned. not luxury carmakers, i in used to the u.s. margins of 10%, but that is with the giant trucks. maybe 6% not so bad. targeting operating margins of 6% by 2026 with opel and vauxhall. quickly, where our futures trading less than half an hour fr

forgive me when i say that dudley had reduced the debt profile.odie -- proceeds of half $1 billion. the debt number, looks to have risen. we look for more guidance on that. anna: let's put on the risk radar. i .6%,quity markets of japanese banks helping the tokyo market. chinese pmi and the export data look strong. if you are looking for evidence of global growth, global stocks high. the australian dollar, the r.b.i. a not changing rates early, but the higher us trillion dollar was weighing on the outlook for employment. he saw the aussie dollar. manus: let's look at the bottom markets. global equities are up, near all-time highs. south korea exports, 20% rise helping the equity story. bund market down three pips. what can you do for a bond market story? flat as a pancake. bloomberg's first word news. its get to juliette saly. juliette: thank you. alan has said equity bears hunting for excess in the stock market might be better off worrying about bond prices. the former fed chairman warned this would be were the actual bubble is and when it pops,

bill dudley, who is a close ally of yellen, said just last week that he still favors a third rate hike this year and expects to see firmer wage gains push inflation up toward the feds' 2% objective. the other big question mark is the possibility of a u.s. government shutdown. president donald trump's comment about building a wall even if it means shutting the government down clearly has the market on edge today, but could that make the feds put the market on hold? they're putting the odds at a september rate hike at 40%. >> so with central bankers meeting later this week, should you now shift your attention away from washington to the fed and the economy? michael, founder of ceo debt management, talks to us about that. good to see you, michael. as always, welcome back. >> sue, good to see you. >> i think one of the problems of trying to shift away from washington is some of the things the president brought up are so very important to wall street, like the debt limit, like the government shutdown and the like. how do you make that pivot from washington to the fed? >> so here's the quest

we just heard from dudley yesterday -- do not worry, it will come back.k for a long time. does the ecb have any chance of achieving its inflation goals? central bankers could never admit that they failed in achieving their goals. that would be the first point. and there are global factors, globalization. lower wage costs. putting downward pressure on prices. in europe, we have aging which is also putting downward pressure on cost. the ecb is finding structural changes. they know they do not have a big chance to reach the 2% level again. but, they can create growth and with growth we will gradually move towards the 2%. are: it is clear that they doing that here in germany, at least looking at their gdp numbers. economicu judge the situation in france, especially in light of what macron has been doing in the first few months? >> the first waking up after the fantastic macron paradise. he is implementing reforms. the german lessons from 10 years ago shows us that implementing structural reforms will always come with a slowdown of economic growth, initially.

. >> an amber alert in southern california ended in a dudley officer-involved shooting. officers shot a man accused of killing his wife and kidnapping his son. agents found the 49-year-old and his 9-year-old son daniel at an apartment in l.a. they rescued the child unharmed. authorities didn't say much about the shooting or how they saved the boy. they did find a handgun at the scene. >> this morning, the commander of the u.s. navy's seventh fleet has been relieved of duty. officials say they lost confidence in his leadership. under his watch, uss mccain collided with a tanker on sunday. this is the fourth crash involving a navy ship this year and the second deadly one. seven sailors died in june. >>> scenes of violence and hate unfolding across the country have forced a north bay theater company to cancel their upcoming play. it would have featured actors portraying members of the kkk. here's cornell bernard. >> it hurt deeply to do it. >> reporter: a few props are all that's left for this play, the foreigner, a 1980s comedy faers which involves some controversial chara

well dudley says don't expect to present anytime soon. shares in the photo app maker plunge as user growth stalls. can any filter save it from the instagram threat? this is "bloomberg surveillance ." we are getting some breaking news out of the iea. dip as we are seeing a across global stocks because of the threat from the korean peninsula. this is what i'm looking at. they are cutting estimates for the crude needed. i imagine they mean the crude pumped from opec for 2017-2018. they also go through some of the compliance issues opec was discussing. i don't know whether this is having an impact on the price of crude. you can see brent down some 0.8%. they say that global oil demand is rising to more than 100 million barrels a day for the fourth quarter of 2018. this is what i'm looking at for the rest of your data check. it is a risk off kind of mood. this is what we're seeing in equity. havens are gaining because of the korean tension. we had ray dalio publishing a note, a game of chicken between the u.s. and north korean leaders. he advi

i saw dudley moore, jonathan miller and michael palin. i mean, it was absolutely outstanding.ey were there. they were there in life! it really made it. and they are also bringing back this year, they are bringing back la boheme, because they played it in 1947, so they are bringing things back that for 70 years ago. the festival is changing. it has to change, and it has to grow. henry and ingrid wuga speaking about the edinburgh international festival, which gets under way later. for much of the uk, things are looking drier than yesterday. far fewer showers and more are looking drier than yesterday. farfewer showers and more in are looking drier than yesterday. far fewer showers and more in the wa ke far fewer showers and more in the wake of sunshine. that's because our area of low pressure which brought the windy weather is gradually moving away. blustery across northern areas, but a good deal of sunshine further south. glorious pictures coming through from the weather watchers. this one in cambridgeshire. more showers across parts of scotland, the odd heavier one in there. an

a lovely day so far are there in dudley and fairly similar scenes for many but there are changes on the in south—west england. cloud thickening and continues to turn grey hair and grey throughout the day. outbreaks of rain and drizzle becoming heavier. fabrics of rain in ireland sliding towards cardigan bay affecting the south of ireland. across central england and scotland, the isolated shower maybe but mostly dry. warmer than yesterday in light winds. outbreaks of rain extensive across parts of the midlands, wales and southern england tonight. heavy bursts of antoni wit in northern ireland. south of that, where a misty and damp. a cruel but bright start to monday across northern england and scotland with sunny spells. the far north of scotland with sunny spells but cloud increasing elsewhere. drizzle and wetter weather coming from northern ireland in into southern scotland and northern england. next in the sunshine to the far north and warm and humid in any sunshine breaking through in the south and that terrible bush ‘s way northwards as we go through monday night and into tuesday. h

they think this is a short recovery rally within a bearish trend, but they say let's listen to what dudleyet says this weekend if we get a cpi number 1.9% or 2% or above. then, perhaps, it becomes something a bit more tangible. betty: need to see more evidence and more sentiment. chris, i want to pull up a chart for our viewers on the bloomberg. 491. chart g #btv it shows how long a bear market cycle is for the dollar. if you look back to the 1980's, it is on average 10 years the 2000's.k in the early of course, relatively speaking, we are the green.. -- green dot. it shows the beginning of the trend, the decline in the dollar. whether we are headed to another bear market cycle. do believe if the evidence is that there is trend will continue could we possibly see one as long as another decade long decline in the dollar? well, pretty much got my chopping block. it depends on the euro contribution to the dollar index. on the euroull longer-term. there are risks around holding the euro dollar long position. then we go to the jackson hole symposium and mario draghi looking at the prospect of b

we think that the easing of financial conditions over the dudley from the fed talked about it yesterdayu are not so constructive on fixed income right now, and if not, why not? everyone else seems to be. barbara: i know. those data portfolios are negative right now and that's state for the market. additionally the fed will start to roll off their balance sheet. the ecb is probably not far behind it. meaning that there must the other buyers of last resort with yields drifting marginally higher. we don't think that the 10 year will be able to probably go much about 3% in the longer term and we are looking for something closer to 75 for this year. where do you barbara: put the probability of recession in the u.s.? such an important question. 5%.s currently at less than the reasons that we watch for recessions so carefully is we know that those the heat to trough declines in equity are restricted in recessions. on average it will call for the equities decline of 25%. we look for them carefully and if they get priced into the market right now they have a still positive living yield curve wit

it sounds like it could be the fed chair or stanley fischer or william dudley.epend on how the economy evolves -- it will depend on how the economy evolves. the u.s. economy seems to move along at about 2%, the matter what happens -- no matter what happens. we will have to see what happens with inflation. they were expecting inflation to move up more than it is. if they continue to start to go down, that will delay the next hike. vonnie: is the fellow's curve broken -- phillips curve broken? this is the big debate at the jackson hole meeting a couple years ago. is it broken or are we going to go back to our normal relationship? unfortunately, as with many things when academics are presenting papers, we did not get a definitive answer. you can see that in the notes in the minutes. -- and the minutes. one of the reasons we have not seen inflation move-up is employment has been higher than typical. now we have that spread between the traditional measure and the broad measures. people that want to be part-time, full-time. people that have not looked recently but do

dudley? mohamed: i think the fed will hold itself on markets for a while.a hike, it was going to be in december, not september. they will wait and get react.tion and also on the qe side, they will try to make a reduction in the balance sheet as boring as it can be. look at the fed, not to want to make headlines more news, just developments and hold out the possibility of a december hike. numbers,me breaking fortescue models has released its-- metals has released reserve. $2.9 billion, looking for $2.2 billion. the final dividend for the four-year post share was $25 -- $.25 aussie. ceoill be speaking to the later on today to break down those numbers. let's get the update on the market into the start of the trading week. new zealand is underway, it is to the downside, almost about 0.25%. the kiwi dollar and 73.09. another for the bloomberg index, holding all of the g10 currencies except the swiss to -- swiss franc. we see a downside in the sydney open, 0.4%. the aussie dollar 79.29. the kiwi share, it is a big day when it comes to mining. a big week for bhp a

comments yesterday from dudley suggesting another rate adding to the pressure of government bonds asfederal reserve may be doing at the same time. >> u.s. features upcoming european stocks up today. >> you are definitely seeing a classic returned in asia. japanese markets certainly welcome the weaker yen. you saw arises in south korean stocks on the european stocks a little more muted today, but a lot of that on holiday the couple economic releases. trade do it is nice to see the numbers that these tensions between the u.s. and north korea using. we will take that good news. thanks, riva. >> you know how europeans are in the month of august. each train to the next couple of months when washington comes back, how are the market going to react and are we going to see sensitivities? >> volumes there in the midwest. thanks for joining us here today on "fbn:am." cheryl: we will send it over to maria arter rumble. >> happy to say to you. i am maria bartiromo. tuesday, august 15 top stories right now 6:00 a.m. on the east coast. ceo backlash after resigning from the presidents manufacturing

dudley? mohamed: i think the fed will not assert itself on markets for a while. a hike, it will be in december not september. they will not look to disrupt the markets. they will wait and get information and react. also on the qb side, they are going to try to make the reduction in the balance sheet as boring as it can be. look at the fed right now not want to make headlines. just monitor developments and hold out the possibility of a december hike. el-erianat was mohamed , bloomberg view columnist and chief economic advisor on "bloomberg daybreak: americas." vonnie: let's check in on the first word news with courtney donohoe. is reportingos that a review from white house chief of staff john kelly on whether steve bannon keeps his job is imminent. officials expect payment to be fired. bloomberg has not yet confirmed this, but we will keep you updated on this new news. in finland, up to eight people were wounded when a man stabbed him with a knife. one report said that police shot and killed the attacker. no word on the motive. the terrorist attack in barcelona to

tomorrow, we will have the new york fed president bill dudley. we will also get the u.s. july pbi.n friday, the last month's cpi data. probably the most important date of the week. for a little bit of an idea what this will mean, i want to bring in jewel cracjoel. all eyes really on the cpi data for the most part on friday, right? joel: that's right. maybe a little context or background on this. earlier this year, measures of inflation softened. we know there were factors behind that softening. unlimited data plans introduced by a major carrier, some prescription drugs coming off of a patent, and the prices being brought down by generics, but there was a softening in prices as well. why do we think inflation is likely to gravitate to 2%? the fundamentals point in that direction. survey-based measures and expectations still support 2% inflation projections. second, the economy is doing well. labor markets are tightening. we expect 80% handling on the unemployment rate sometime next year. third, the dollar is less valued this year so far. 5% to 7% depending what measure you look at.

. >> this gathered in income to spruce up their community volunteers met at dudley gaining park in camden. they painted a mural there and touched up the greenery there around the area adding mulch to the surrounding trees and volunteers prepared a local house for demolition, and the project is part of of camden neighbor works and st. josephs carpenters society. >>> there is more to come on "action news" the latest on the deadly terror attack in barcelona, plus, not the reaction you would expect when coming face-to-face with an arm the robber but a clerk in new england says he could not help himself. we'll show what you he did coming up. >>> it's 4:30 and "action news" continues with breaking news from barcelona, spain. within the last hour isis claimed responsibility for the deadly van attack that killed at least a dozen people and left scores more injured. it happened in the las ramblas district popular with locals and tourists. witnesses say that a driver swerved over a packed boulevard mowing down people at random. 12 pronounced dead at the scene and more than 80 were hurt. and two peo

bill dudley weight in earlier. -- weighed in earlier. >> a year-over-year number of 2% after some of low ratings drop out of the statistics. to 10 months from now, so it will take some time. vonnie: from work i want to bring in our guest. thanks for joining. i want to get your thoughts on this market mainly. first of all, let's talk about inflation and whether we are looking at any healthier growth in the global economy. >> overall growth is stabilizing. global growth bottom 18 months, 24 months ago. the curveball here is if you got growth that seems to be maturing, this acceleration in growth implies very different leadership than in the last 18 months. vonnie: just to prove what we are talking about or illustrate what we are talking about, let's have a look at 9286 in the bloomberg chart library. it shows consumer spending pulling back, matching the cpi decline. it is honestly related to health care costs and also related to things like cell phones. satya: yes. some of our work, we raised the deflation, and this idea links back to this recent amazon announcement to purchase whole f

>> he would have been over at -- >> at goldman and in the context of bill dudley running the -- >> andand. >> it's very unusual i think the context of this might be, how do i say this? there's a concern. >> yeah. >> about people being appointed to the fed who are off the reservation. >> right >> and you winced, melissa >> well, i don't really know what that means. >> what does that mean >> meaning non-ph.d. or you mean crazy? >> no, no. like people who support the gold reserve system >> oh. >> like people who want -- like people being appointed to the fed who want to wipe out the fed. >> right >> and i think among economists and among people who follow the fed, and perhaps even among the people at the fed there's concern about there being not just one, because one is okay, but multiple people appointed by the trump administration who are off the reservation. >> right >> and i think what bill is saying here is that he doesn't see gary cohn as being off the reservation. and being an economist or not an economist is not the criteria. >> real quick. just now that general kelly has taken th

talking about the economy, we heard from william dudley yesterday and he had a positive prognosis forwhat more and it is going to take time for inflation to rise above 2%. anticipate ay: we moderate growth trend with further strength in the labor market. we think it will push inflation over medium-term, back to our objective of 2%. david: we will be breaking july cpi numbers in less than 30 minutes. is carlpreview the data riccadonna and darrell cronk of wells fargo. give us the prognosis, what do you expect us to learn in 26 minutes. cool streakk the will continue and core inflation .1.ht be up we are not seeing a lot of waving off of inflation weakness. more importantly, if we get a top trend today, we need to stop chopping this up to a couple of inducing credit and transitory factors like cell phone contract and drug prices, even if we stripped those out of the core cpi, it is decelerating aggressively. core cpi has decelerated by 60 basis points since the start of the year. we would still have decelerated by for the if we strip out those factors, so it is a more pervasive problem.

the activities are being held at the boys and girls clubs on dudley street in camden.than 200 kids from ages five to nine, will spend the neck three days working the first responders and law enforcement to make the pool a safer place. >> nicely done. >> well, families with critically ill children connected for day of fun at smith memorial playgrounds in philadelphia's east fairmount park. >> the playgrounds is closed to the public on mondays, but the staff invited the children for private play day today. families enjoyed all that the six and a half acre property had to offer. the maryland based casey cares foundation organized the group party. >>> well, some video by police in virginia has gone viral. >> take a look at this, these are members of the arlington county police department getting into the pool in their uniform. the video is called water stew , posted on the department 's facebook page last thursday, it is to promote arlington's annual police fire and sheriff block party happening later this month. little synchronized swimming there, police say it took multi

i brought along a chart that shows exactly what will dudley is talking about.ntinue to ease in the united states and the stock market continues to rise. as the fed funds rate goes up the stock market goes up. this is not what is supposed to happen. it makes the argument for the fed continuing to raise rates which yellen could cement in the markets mind for at least a december she wants to go that direction. jonathan: she could take the stan fischer line but make it exclusively about regulation. we prevent bubbles. that certainly could be that way if she doesn't want to make news. this raises the question of what it means for the dollar. where do you think we go? during tightening cycles the dollar does show some weakness. we might get a little bit of a bounce. if janet yellen stays on point the markets will calm a little bit. markets may start to firm as well. multinational companies have done really well as the dollar has moved lower and small caps have not been doing well as the mystic agenda has fallen out of bed. does that continue? multinationals continue

william dudley sees higher inflation ahead, but it's going to take time.s cymer price data. next stop, the german election. angela merkel returned to the campaign trail as she bids for a fourth term. snap, crackle, crash. the social media company plunges 18% in after-hours trading as earnings disappoint. it is "bloomberg daybreak: europe." it is our flagship morning show. we have had a little bit of cpi from germany, rising by 0.4%. year on year, up 1.7%. in the markets today you see a rational correction, a rational realization of a temperance in risk. that is what my last guest, james bevan, said. london is down by 0.5%. this momentum is building up in terms of the consideration of risk. rob carnell at ing said this is developing into this generation's cuban missile crisis. trump's morning the north korean regime not to follow through with the missile test on guam. retaliation like they never thought possible. you are watching equities in europe expending their losses for this week after the u.s. saw hefty losses. let's look at the risk radar. then we wi

. >> and even some members it was dudley saying, yeah, my mind is to do another one. >> we don't haveuch time in the show but it's about the deflationary effects of technology on the entire economy and i think that's why it is where it is and why you're not seeing it left off. >> walmart coming out with an approval for an airborne warehouse. >> yeah. >> they really got amazon in their sites right now. >> they do >> final trade >> i do. let's go to health care. >> all right got about 30 seconds or so left. you know what picture we're going to show you now. >> jane wells is out there. >> solar eclipse, coast to coast, anyway, in nearly a century is under way there's the shadow right now it's going to pass through 14 states was already, as you saw, in oregon, idaho, wyoming, nebraska, missouri, illinois, kentucky, tennessee, georgia, the carolinas before it's all finished later this afternoon. don't forget, get your glasses ready. keep them handy because you're going to need them speaki speaking of that, "power lunch" picks up next and so much more. >> that's right. i'm michelle caruso-c

manus: do you think that was dudley or rosengren?ce that said it was yellen herself, which would make it interesting. if it turns out to be on that subject of financial stability, it can fall one of two ways. janet yellen will either reintroduced the motion that the fed has a direct responsible the for financial responsibility or potentially reiterating a point that it is not our job, which would be a concern to me if that were the case. matt: why is that the concern to you? you think that they are responsible as a regulator? regulator,just as a that as a mandate. there is price stability for employment and it would be a rather naive of somebody to believe they could achieve either or both of those things in a world that is not stable within the financial system. we have seen basically within 2007, 2 thousand eight, and 2009, how the damage of the financial system could cause huge shock to the economy. personally speaking to try and ,eparate the two is difficult not only impossible. i would like to see central bankers trading their m

in the state of new york, that's the strongest it's been in two years the second quota with a fred dudleyabout he expects one more rate hike that's that stark contrast to the cme fed watch tool lastly, jackly, let's look tomorrow we'll comb over fmoc minutes we want to understand that's going to determine the direction of the dollar what we're saying about reducing the balance sheet which is imminent. >> looking at the charts, the technical levels you're watching, 93 and change, we're relatively low. >> that's right, jackie. when you look at the chart, 92.5, 92.60. we built a nice base there now we're above the 21-day moving average above 93. so technically the dollar looks like it has turned around a bit. i think retail sales number will go a long way in driving the market that's been the laggard as far as the recovery goes, retail sales. >> meantime, futures now, we'll be breaking down trade ideas for crude oil and gold and joined by bill stone to discuss why even a market correction wouldn't be a warning sign to flee stocks. back to you, scott. >> thanks so much. three hours until the

and new york fed president bill dudley, he's speaking later this morning. as for earnings, a lot on the retail side. kohl's, macy's, blue apron, canada goose reporting before the bell after hearing from nordstrom and snap >>> now time for the trending story this morning starting with a giant inflatable chicken meant to resemble president trump is getting some buzz on the internet it was placed near the white house yesterday as part of a protest. the 30 foot chicken features golden hair, pants that some say resemble president trump's >> some say. it's clearly meant to resemble him. >> he's not even there though. if they wanted him to see it, go to new jersey. >> he's not much of a chicken though >> no. not at all. >> what animal is he most like >> oh, i don't know. the president of the united states i don't want to even go there. >> there we go that's outside the white house >>> the mooch is headed to late night. anthony scaramucci will appear on "the late show" is stephen colbert on monday. colbert saying this is just a heads up for our censors to get ready

other than that, my father was an army officer and he was a staff officer to lieutenant general sir dudleyia is the world's biggest democracy, narendra modi of course has been talking today, positive language from him, as we would expect but there are still enormous challenges, aren't there? is there a recognition of that? absolutely. because india is a country of 1.25 billion people. considering what we were on 15th august 19a7 and what we are today, obviously we have made giant strides but the work is only half done. we have a long way to go and we recognise that and that is why the prime minister has laid out an extremely ambitious agenda for economic growth and development and to ensure that india assumes its place. it is notjust about economics. it is border issues and the treatment of women and there are still many, many areas that need specific attention. yes, but you mention the treatment of women. there are very few countries where a space programme is run by a large number of women. our women scientists have played a hugely important role in the mars orbiter mission and recently

the first quote is written by someone who admitted has an ax to grind, william dudley gail, served as a staff officer and was a part of lee nigh tis polk and polk's fighting with bragg. after the war gail married polk's daughter. bragg was cruel yet without courage he wrote, he was obsta nint yet without firmness, he was crafty yet without strategy. he was suspicious, he was envie yous, he was jealous, he was vain. he was a dung hill in disaster and yet in command of a better army that they had to concur mcarthur. the other quote by john c. spens who witnessed the battle of stones river kept a keen eye on events and a diary. he said bragg was underrated. he mused that bragg does not at all times get the credit he is entitled to. he is sometimes charged by some for the want of tact in the management of his affairs. this may be by those who know the least of what his designs are, but bragg has one trait spense said he can make a hard fight and if pushed close he can get out of the way. his men respect him but they're not dispersed to worship him. that's my own view, it's closer to spenc

i saw dudley moore, and jonathan miller, and michael palin. i mean, it was absolutely outstanding.ade it. and they are also bringing back this year, they are bringing back la boheme, because they played it in 1947, so they are bringing things back that for 70 years ago. the festival is changing. it has to change, and it has to grow. let's have a look at the weather. hello there. for much of the uk things are looking drier than yesterday with far fewer showers around, mole in the way of sunshine. the area of low pressure which bought the windy weather is gradually moving away. quite a blustery day across northern areas, but a good deal of sunshine in the south, glorious weather watcher pictures coming through of the sunny skies this morning, like this one in cambridgeshire. lots of scotland across england and wales. more showers though across scotland, and heavy wa nts showers though across scotland, and heavy wants across south wales and south—west england. however, it looks like the showers will remain largely confined to the northern parts of the uk, for northern ireland and much

as bill dudley said last week in a speech these aren't a bad thing.ositive supply shocks are creating lower prices in a number of goods and services for u.s. households. this increases real purchasing power for the household. it's very different than low inflation emanating from demand shocks. these are supply shocks. they are not bad things. statistics.le of core inflation on friday 1.7 year-over-year. the 10 year average is one point 73. core services represents 75% of the inflation basket is printing 2.4 year-over-year. it is a if the fed soul-searching on inflation and doesn't quite know why inflation is persistently low doesn't that by extension mean they are at risk of making a policy mistake? the probability that policy stays easier or more accommodative and creates financial imbalances. i don't think we are there yet. that is the risk if we try to fix the degree to which technological innovation is impacting inflation negatively although it's a positive for the long-term economy. the probability of financial imbalances building overtime. julie

the market is more focused on the balance sheet unwind and dudley is speaking later. he might be a hawkish surprise seethe fed seems to want to good news. there is an easier risk reward surprise on a site perception of hawkishness than the business and that is why you have not seen much reaction from bullard yet. policy, has ity reached its limits? there are a lot of central banks that are unable to reach their inflation target. mark: i am a massive lever we need to re-examine the policy framework. i am not convinced inflation targeting is such a great idea. you can get good growth without inflation, romania, poland, israel, they had sharp deflation but strong growth and even some developed countries like the u.s. and japan, they still had reasonable growth. i am not sure this idea that we need 2% inflation is the right thing for growth. we're not sure that monetary policy is the best mechanism for generating it. it helps generate inflation but it used to be the main way of generating inflation. it is much more marginal when there is structural inflationary pressures

we heard from very dovish fomc participants, but we also heard from president dudley and president kaplanoned inflation is probably not coming back to the target level anytime soon. julie: at some point, does inflation become a less important part of the fed's mandate? does it just start to not ignore it but not to weigh it as heavily as the employment picture, or does it prevent the fed from raising rates? matt: that is the big question about.een wondering despite the strong job market, will they start to pay more attention to the shortfall in inflation? i don't know if we are necessarily seeing that coming through in the fed speak. you do have this belief in the phillips curve relationship reasserting itself, so that kind of implies if the unemployment rate keeps falling, is going to be hard for fed officials to shake that narrative, that idea that they need to keep raising rates despite the low inflation. if you look at the components of inflation, there are so many things you can .2. that's part of the problem with the core cpi. you can go through so many components, and they do not h

obama's 2008 campaign manager david plouffe and senator tim kaine's former communications director amy dudleywith zuckerberg's recent visits to iowa, michigan, and ohio, and his denials about his interest in public office has many wondering if he has designs to run for president. i guess we're just going to have to wait and see. >> yeah, we will. that could be really interesting, though, i have to say. >>> still ahead, broadway honors the passing of one of its own. a look at the great white way's tribute to the award-winning actor and playwright sam shepard. plus, details on when the historic heat wave gripping the northwestern part of the country may finally break when we come back. (burke) at farmers, we've seen almost everything so we know how to cover almost anything. even a swing set standoff. and we covered it, july first, twenty-fifteen. talk to farmers. we know a thing or two because we've seen a thing or two. ♪ we are farmers. bum-pa-dum, bum-bum-bum-bum ♪ so find a venus smooth that contours to curves, the smoother the skin, the more comfortable you are in it. flexes for comfort, an

the northeast to gain back and actually still 2, 3% from the intraday highs on the day when bill dudley, i think the fed is the most important thing two ingoing into september. a guy who said today that the inflation expectations in the labor market are higher than people think i would be more concerned of that, so buy the financials. >> so the weak cpi last week was sort of a head fake? it sent the wrong message to investors? >> look, the fed, if you look at where conditions are, financial conditions are so much easier than they were even a couple months ago the market's at greater highs. races are down credit spreads are tighter you have an environment where the fed cannot do what they need to do and i think in a month, people are going to be like, whoa, what happened? i think the fed's going to move more than people think. >> i don't know, i feel like the fed has been telegraphing a lot of this already, right this question of how big, how quickly taking the balance sheet and i think the fed didn't move, they'd say, all right, what are they seeing in the economy that makes -- gives th

other than that, my father was an army officer and he was a staff officer to lieutenant general sir dudleytition. and you talk about how proud you were that india is the world's biggest democracy, narendra modi of course has been talking today, positive language from him, as he would expect but there are still enormous challenges, aren't there? is there a recognition of that? absolutely. because india isa of that? absolutely. because india is a country of 1.25 billion people. considering what we were on 15th august 19117 and what we are today, obviously we have made giant strides but the work is only half done. we have a long way to go and we recognise that and that is why the prime minister has laid out an extremely ambitious agenda for economic growth and development and to ensure that india assumes its place. it is notjust about economics. it is border issues and the treatment of women and there are still many, many areas that need specific attention. ye, but you mention the treatment of women. there are very few countries where a space programme is run by a large number of wi. 0ur wome

reconciliation is -- why bring upnist, the story and announce he has his reputation in the other bob dudley? the next story, when he is a scout, he comes to a house with a long missouri woman with her daughters, and cody intervenes union soldiers from doing this kind of thing that union soldiers did to missouri women. the missouri women are so grateful, they make a dinner for him and protect him from their menfolk when they come back. the story probably is not true, but it's interesting because not only does he want to be remembered for not having done this kind of thing, he wants to be remembered for having protected missouri women from this, and in fact, this is exactly the kind of thing that would have happened to his mother. hisouri men coming to house, threatening. she was forced to cook for the proslavery ruffians. at another point in the outer bobby, he admits being part of this, but he also wants to be better than the missourians and better --did to -- excuse me, better in the missourians and what they were doing to his family. does hen none of this talk about the civil war. the rac