the fmoc intention has always been to return to a more traditional approach. and throughout this time the committee has been preparing for the normalization process. in june 2011 the committee sat out broad principles and to some more specific tactics for how it envisioned the normalization process to take place. in june 2013 we noted that conditions had changed significantly in ways that anticipated in june of 2011 including the size and composition of defense balance sheet and revision of earlier plans would be appropriate. the document released today reflects our updated plans which readers would no have been under discussion for the last few fmoc meetings. a new approach retains many broad objectives and principles from the original but also has new elements. as was the case before the crisis, the committee intends to adjust the stance of monetary policy for normalization, primarily through actions that influence the level of the federal funds rate and other short-term interest rates, not through active management of the balance sheet. the federal funds ra

it is a matter of maybe taking some off the table three fmoc -- pre=fmoc. >> great to have you on thecome, off electrifying start. riceorld's first formula e making its debut in beijing. we take a look after the break. ♪ >> you are with "on the move." we're looking at the challenge of cleaning up china. with the countries pushed out of coal and into more renewable forms of energy. where does it all stand? bloomberg intelligence has a check on it. what have we got? >> it is quite interesting. i'm an old dinosaur. i've been around a while. the last time they discussed the five-year plan, two years into the plan, they were still discussing numbers. a plan, they are really trying to solidify the 2020 targets. if we are seeing in the chinese that thee talk is numbers are going to go up, and the solar numbers are going to go up. >> the goal have been shifting little bit. >> we've talked about this before. you want to fix china's pollution problem. getting 80% down very gradually, that is feasible. you just need to inject a lot of other stuff, like nuclear, for example. the other thing you n

sector in this month to date chart and looking at that spike right there, that is right around the fmoc meeting so one regional that is rebounding is suntrust. that is up about 1.5% over a month and will benefit from the housing recovery in places like florida. pnc financial up over 2% over the last month and m&t bank is up. they expect rates to increase earnings for the regionals and not subject to many of the regulatory changes that pressured the bigger universal peers but regionals do face two headwinds. pressure of new loans hurts loan yields and there's the possibility of deposit outflows as rates rise and folks start to put more of their money to work elsewhere. in light of that, here are two more regional banks that analysts like. terry mcavoi says comerica is sensitive to higher rates and morni morningstar like business model so definitely names to check out. mandy, back to you. >> have you very much, my dear. >>> up next, the jersey shore's "the situation" is living up to his name. who's that? >> the situation? this is the situation. come on! >> what was that? >> pulls up the t

it's the fmoc, and all those comments we're going to hear as soon as we're done here. first of all, wells fargo has about an 18% share in the mortgage business, but about 6 or 7 of those points are agate business. we help small originators, give them money so they can complete or liquefy their mortgage. so our direct mortgage -- there's 7,000 banks in the deposit business, there's only a few hundred in the move began business. so i don't think we're we're oversized there, and secondly, unless you're over 40 years old, you think these rates are normal. when i got my first mortgage in 1976 it was 8.5%. and i got my second one in 1980 at 11% and i was darn lucky to get the money. the rates, the affordability index is still very attractive. there's three things when you buy a house, the cost of the house, what you make, and what the interest rate is on your mortgage. two of those still are in very good shape, especially interest rates. so my suspicion is, we are positioned for higher rates, and i am in favor of having rates reflect the strength of the economy. so -- but i

it's the fmoc, and all those comments we're going to hear as soon as we're done here.first of all, wells fargo has about an 18% share in the mortgage business, but about 6 or 7 of those points are agate business. we help small originators, give them money so they can complete or liquefy their mortgage. so our direct mortgage -- there's 7,000 banks in the deposit business, there's only a few hundred in the move began business. so i don't think i'm r we're oversized there, and secondly, unless you're over 40 years old, you think these rates are normal. when i got my first mortgage in 1976 it was 8.5%. and i got my second one in 1980 at 11% and i was darn lucky to get the money. the rates, the affordability index is still very attractive. there's three things when you buy a house, the cost of the house, what you make, and what the interest rate is on your mortgage. two of those still are in very good shape, especially interest rates. so my suspicion is, we are positioned for higher rates, and i am in favor of having rates reflect the strength of the economy. so -- but i d

it is right around the fmoc meeting.mid that speculation of a more hawkish view on interest rates. financials are poised to benefit of the rising rates because it would be indicative of a strengthening economy and see increased demand for credit an higher yields on bank asets. when you dig down into the sector's groupings, you see that trend even more so. diversified financials, one of the top groupings, up 2.5% this month. names like cme group, intercontinental group, ice. mcgraw-hill companies, all up about 5% this month. and neck and neck with commercial banks and universal banks like bank of america and jp morgan and the regionals and analysts say offer the purest play on rising rates and pnc and suntrust bank. this dynamic is also why real estate investment trusts have dropped 5% this month. they have been outperforming the rest of the year, dropping 5% this year and they have been benefited from a low rate environment so take a look at the financials. we'll see what happens as those rates begin to rise, potentially

are you buckling the seat belts for fmoc next week?ple think janet yellen is taking a hawkish tone. >> no. not if you follow the commentless at jackson hole. she's fixiated on employment. >> the fact of a -- >> old fashioned keynesian kind of way. >> that's what i want dr. j to weigh in on this. are you looking at a regime of higher rates? >> no. i'm not nor have i been, kelly. i agree with the other panelists. i don't think we see that next week. if i look at things that do worry me, the president's statement tonight, obviously, that's one of the things the world should be focused on because both what happens in the mideast as well as ukraine are going to be significantly greater effect on our market majority term and long term than janet yellen and the fed. >> why is that the case when it hasn't been true at least up until now and perhaps aside from certainly some of the market volatility we saw around the russia/ukraine situation and with regard to the islamic state, if anything, it's incredible that oil prices have performed as poo

confident about moving on to the next thing and it could affect janet yellen's dashboard going into the fmoceeting next week. how much underutilization is there in the market? maybe not as much as as before. >> it's interesting. they say on social media now some of the best selling, best read blogs are about how to quit your job. used to be how not to get fired and things feel better. >> great point and why the market is having this debate which we have seen some reporting on including steve liesman saying the language could change. why's everybody obsessed with the language to change? why might the market here be selling off on it? >> i think the issue of considerable time after the asset purchases is an important one. the fed is looking at a calendar date. six months after october or longer oral less than that. i actually think that you might see a change in the way they describe the economic situation before you actually see a change in the forward guidance. janet yellen shown in the past she is not willing to make major changes unless they have to. they don't have to change the language

the two bigger hawks comes off the committee in early 2015 so i don't know what the fmoc will look like when they start tightening aggressively but what i'm worried about -- i think the market starts to see this is that if you're not getting the inflation then how can the fed come in and tighten so aggressively without hurting the economy and what they don't want to do. so right now looks like the market's fairly well adjusted. >> all right. we have to -- sorry. we are out of time. appreciate it very much. as lawrence welk would say, thank you, boys and girls, for joining us. >> we'll be back up and following this one. we promise. thank you. the market's off. the dow 114 points now, again, it is the outperformer of the session with the nasdaq, s&p under pressure today. >>> alibaba giving back some gains. the pros will weigh in on the big test facing this week's raft of initial public offerings. how would you like to be public this week after last week's big show? jimmy choo going public. citizen's national here in new york find out if alibaba set the stage for them to sink or swim. >>>

headlines shake out this weekend and an interesting note out of goldman sachs that touched on the fmoce dropping that phrase considerable time and whether we see that on wednesday and goldman sachs basically said there's a big difference of reneging on forward guidance and then not extending it and don't expect a change in the language and question marks of that, scotland, between alibaba, all of it's going to see how it plays out. >> do you take a wait and see attitude before the event this is week or positioning yourself based on how you think that things are going to play out this week? >> you have to take advantage of the opportunity that is are there. i think to me, the selloff in netflix is probably really interesting. i think that will catch another bit at some point. none of these are one day events. tesla move is not one-day event. obviously, the chip sector's been moving lower but i think some of the stocks have given you a shot. the yahoo! move, you know, pete and i both have thought that yahoo! headed to 45. he's more in the $50 camp. i'm in the camp if you've been in the m