are these headwinds or not? hon. yellen: it's difficult to quantify if it's a headwind. businesses certainly site regulation as a factor affecting their decision-making. what else you cited? if the businesses that you talk to cite it, why don't? i actually don't think it is the most important headwind. >> the corporate tax rate, 39.1%. the oecd average is 24.1%. we pay percent more orbotech. that's 15% less anything goes into wages and economic development, research and development. you see that as a headwind? hon. yellen: i think it's widely agreed that there could the constructive changes. >> i'm from wisconsin. they have manufacturing facilities there was also in all over the country. most manufacturers that in the have all left america. they've gone overseas. he's one of the few that are left. per employee he spends $15,000 per year on insurance and $20,000 per employee on regulatory compliance. $35,000 goes out the door per employee before he pays them one red cent salary. do you see that as a headwind? hon. yellen: these tax arrangements to have impacts on the prof

do you see that as a headwind? >> well, i think it's widely agreed that there could be constructive changes to the corporate tax system. >> i have an individual in wisconsin who has a manufacturing facility. he manufactures in wisconsin and has facilities all over the country. and most manufacturers in his industry, they've all gone overseas. he's one of the few that are left. he takes about per employee, he spends $15,000 a year per employee on insurance and $20,000 per employee in regulatory compliance. so $35,000 goes out the door per employee before he pays them one red cent in salary. do you see that as a headwind? >> well, these tax arrangements do have impacts on the profitability of various business activities. >> so you'd agree that would be a headwind? >> well -- >> or is that a benefit. does that help him out? does that help him grow jobs and salaries in his company? >> different countries have different systems for dealing with health care and financing it. and the impacts are complicated. >> i'll accep

to the extent that there are headwinds, i think many of us expected these headwinds would gradually diminish over time. you see the upward path of rates. more long-lasting and persistent factors that may be at work that are holding down the longer level of neutral rates. for example, slow product to the growth which is not just a u.s. phenomena in. a global phenomena in. obviously, a lot uncertainty about what will happen to product to the growth here at productivity growth could stay on for a long period of time. we have an aging society. i think all of us are involved in our process of constantly reevaluating where the neutral rate is going. i think what you see is a downward shift in that assessment over time. maybe, more of what is causing the rate to below are factors that will not be disappearing, but heart of the new normal. you are still seeing an assessment that that rate will move up somewhat. >> imed jason with reuters. the forecast for the fed fund rate came down quite dramatically. this stands in contrast with the 2016 forecast. you mentioned six artistic fence that's all only o

to the extent that there are headwinds, i think many of us expect that these headwinds would gradually diminish over time. and that is a reason why you see the upward path for rates. but there are also more long-lasting and persistent factors that might be at work that are holding down the longer run level of neutral rates. for example, slow productivity growth, which is not just to the u.s. phenomenon, but a global phenomenon. obviously, there is a lot of uncertainty about what will happen to productivity growth, but productivity growth could stay for a long time. we have an aging societies in many parts of the world that could depress this neutral rate in a think all of us are involved in a process of constantly reevaluating, where is that neutral rate going? in a think what you see is a downward shift in that assessment over time, the sense that mabye more of what's causing this neutral rate to be low are factors that are not going to be rapidly disappearing, but will be part of the new normal. now, you still see an assessment that that neutral rate will move up somewhat, but it has

you talked about headwinds the last time you were in, headwinds to the economy, headwinds today. the fed is not operating in a vacuum. there has been discussion about any number of issues that are going out there. you would agree that low interest rates themselves not a headwind, right? >> no. >> and in fact, with low interest rates, you would expect much more robust economic growth. >> that's correct. >> you expect -- you testified you expect the headwinds, to, quote, slowly fade over time. i contend those headwinds like i did last time are regulatory and we had a discussion here today about some of the regulatory impact. a number of members have raised this issue because we're hearing it from our constituents back home, small businesses. i contend it's the regulatory and fiscal policies this administration has pursued which is not -- again, the fed is not operating in a vacuum. higher taxes, the affordable care act, epa, dodd/frank regulations that i contend are missing because dodd/frank missed the mark. would you consider any of these regulations or fiscal policies to be head

janet yellen: yes, i believe it is because of the headwinds. one of the numbers in the taylor rule reflects professor taylor's estimate of what we sometimes refer to as the neutral level of the fed funds rate. it is a level of the fed funds rate that is consistent with the economy operating at full employment. something that by our estimate has been very depressed in the aftermath of the financial crisis. about secular stagnation are very much about what is the level of interest rate that is consistent with the economy operating at full employment. i am hopeful that rate will rise over time, although i am uncertain. at the moment, most of the divergence between our settings and what would be the higher levels that would be called for really reflect the headwinds that have been facing the economy since the financial crisis. senator corker: i've only got a little bit of time, but the employment rate is really misleading, is it not, relative to where we are in the labor market today, meaning that there is still a lot of excess capacity. i know tha

>> yes i believe it's because of the headwinds. one of the numbers in the taylor rule reflects professor taylor's estimate of what we sometimes referred to as the neutral level of the fed fund rate. it's a level of the fed's fund rate that is consistent with the economy operating at full employment. that is something that by our estimate has been very depressed in the aftermarket of the financial crisis. discussions about secular stagnation are very much about what is the level of interest rate that is consistent with the economy operating at full employment. i am hopeful that we will rise over time although i'm uncertain at the moment most of the diversions between our sittings and what would be the higher levels that would be called for really reflect the headwinds that have been facing the economy. >> the employment rate really is misleading, is it not relative to where we are in the labor market today? >> meaning that there is still a lot of excess capacity. i know ranking member brown was alluding to that. that equation is a l

yellen: policies be headwind to the economy? i would say productivity growth and growth in the capacity to supply goods and services is pretty meager. we are not sure what the cause is here that i would point out it is a global phenomenon we are seeing in many parts of the world. you also see other countries imposing other regulations on their economies as well. ms. yellen: the reason the man out all be the same in different countries. concerned because you talk about headwinds and it you are not diagnosing the full scope of what those are. as we look at the performance of at thenomy, looking constituents i talked to, they have not seen wages and small businesses not seeing assets in capital. thosee to look at what headwinds are and we have to do that. i yield back. >> the gentleman yields back, the gentleman from texas, recognized for five minutes. >> thank you for being here. i'm from texas, a small business owner and i have been for 44 years. i appreciate the testimony. we had a chance to chat about committee based financial

to the extent there are headwinds, i think, many of us expect these headwinds would gradually diminish over time. that is a reason why you see the upward path for rates. but there are also more long-lasting or persistent factors that may be at work that runholding down the longer level of neutral rates. for example, slow productivity growth, which is not just a u.s. phenomenon, but a global phenomenon. obviously, there is a lot of uncertainty about what will happen to productivity growth, but productivity growth could stay along for some time. society in many parts of the world that could depress this neutral rate. i think all of us are involved in a process of constantly reevaluating where is that neutral rate going. what you see is a downward shift in the assessment overtime in the sense that maybe more of what is causing this neutral rick to be low, are factors that will not be disappearing, but will be part of the new normal. an assessment that the neutral rate will move up somewhat, but it has been coming down, and i think it continues to be marked lower. and it is highly uncertai

the headwinds are coming from a slowdown in china, and europe.ll be difficult for them to raise rates if you already have a strengthening dollar. i wouldn't expect them to raise rates. i wouldn't put it at a 0% chance. because things to change. -- do change. it is unlikely at this point. what the me through fed -- what this does to the longer cycle. be -- are weg to one and done? think about the interest rate cycle, where terminal rates are, is all of that out of the window? patrick: it is been eight years set interest rates went toward zero. doesn't see that there is an end in sight for us to we were at such economic lows before the leave decision, that created some headwinds. you don't see anyone with exit .elocity right now that won't spur inflation for stub inflation is nonexistent anywhere right now. it is difficult to see and end 20% interest rate. -- to a zero percent interest rate. caroline: can you tell us what happened with u.s. 10 year yields? are recalibrating where they see yields going for the u.s. 10 year. they actually see it risi

>> yes, it is because of the headwinds.the numbers in the taylor rule reflects professor taylor's estimate of what we sometimes refer to as the neutral level of the fed funds rate. it is a level of the federal funds rate that is consistent with the economy operating at full employment. that is something that by our estimates has been very depressed in the aftermath of the financial crisis. and discussions of the secular stagnation is very much about what is the level of interest rates that is consistent with the economy operating at full employment. i'm hopeful that rate will rise over time, although, i am uncertain, but at the moment, most of the divergence between our settings, and what would be the higher levels that would be called for really reflect the headwinds that have been facing the e kconomy since the financi crisis. >> i only have a little bit of time, and the labor, and the employment rate is misleading, is it not, relative to where we are in the labor market today, meaning that there is at lot of excess capac

janet yellen keeps reminding us that there are a lot of headwinds that keep the demand down. that will keep rates low for as far as the eye can see. about thet to talk headwinds. a lot of people were struck by the use of the term "new normal". is there an intellectual shift happening at the fed? >> great question. lnci as experimental research, there are no good estimates. there are a lot of problems with this measurement treat to be using experimental research seems a bit much and a bit of a reach. i think it shows how dovish janet yellen is. she is reaching for every excuse she can to give it dovish blush on the data. what she has to do is not only something, bute she has to give the hawks something too. that's why i think there is at least one move this year. be replaced by three newcomers this year. we don't know much about them. the hawks will argue that we need to know we are serious and make credible the dot plot, that we will be normalizing, and we better start this year. joe: you mentioned janet yellen is dovish, but were not seeing the fed move right now. zero, ever

>> for one thing, large cap stocks are -- they are headwinds whichever way the dollar moves.f the dollar strengthens, our goods become less competitive. they got caught asleep at the wheel when the dollar moved from 130 down to 105 or 107 in the euro. they're doing hedging now -- >> you have confidence where they are now? >> the actual reality on these earnings, you know, they're going to be nowhere near -- if the dollar moves 5 cents, 8 cents against the euro, one way or the other, it doesn't have that much of an effect on their earnings. because most of the time they're hedged up pretty good. here's the situation. the fifth largest economy in the world, which is great britain, they make up less than 4% of the gdp. they run a trade deficit with the eu. those other 27 countries are going to be tripping over themselves to sign individual country agreements to do business with the uk. are we going to see a temporary thing here? i mean, this is going to have a very temporary effect. >> scott, thank you so much. >> thank you. >> wells fargo. >>> show of hands here, anybody with s

electoral process and whether uncertainty around that was a headwind to u.s. growth. and nearly, as you mentioned, nearly 60% of the panelists believed that it was a headwind. i would just put it in the terms of all else equal, if i'm a business person who's making decisions about hiring and investing, if i have uncertainty about what the tax code is going to be how i'm going to be treated as an employer, et cetera, i may be holding off maybe some of those decisions. and so on net it is a minute drans to growth. >> the overall forecast for 2016 growth is 1.8% down, from 2.3% three months ago? >> that's correct, yes. >> further that you expect the fed to raise rates twice this year? that's what your panelists believe, correct? >> right. >> all right. >> so the survey was done in may and the panelists believe that the fed will hike rates twice in the second half of this year and then four times next year. >> okay. >> of course, they hadn't gotten the employment report we all got on friday. >> right. >> so likely the number came down quite a bit. >> less sa ems bow matti

there are some headwinds.hinese exporters also got a reprieve from the weaker currency over the last year. if you look at the export numbers in the yuan, they were better than expected. in those terms, they rose 1.2%. and that indicates the weaker yuan is during to help exporters. imports was a bigger surprise, perhaps the higher oil numbers boosting there. we're expecting a decline of 4% no, 6.8%.me, 2.5% -- rishaad: it was massive the difference between the expectation and we actually got in the end. tell me something here, stephen. let us have a look. hong kong, quite often we get double booking on invoice doubling. etc. over invoicing. you have to have the alarm bells going off. stephen: hong kong is not a manufacturing center. it has not been for a long time. but imports from hong kong to record 243%.g a another record. now this is not goods and services being made here and sent to china. this is most likely a way of getting around the capital controls that china has put up, over invoicing, money escaping

. >> our economy has been withstanding global headwinds and this is another headwind. we worked with the bank of england to make sure there's liquidity if needed in all currencies. >> lew said financial markets experienced voltity over the weekend but that markets were operating in an orderly way. and that's the latest in business. i'll leave with you a check on markets. >>> tokyo police have charged a 17-year-old boy on suspicion of hacking into a school board's advanced computer system. >> translator: we apologize that personal information in the system was obtained illegally. >> approximately 210,000 data files have been leaked in the incident in southwestern japan. they contained personal data on about 10,000 high school students and their parents. the data includes the names, addresses and academic records of students and information about their families. police say the suspect does not attend high school. investigative sources say the boy taught himself computer programming and hacking by reading books. he was arrested in a separate case earlier this month for up

we hear from the treasure secretary on what headwinds he sees ahead for the economy.ore "squawk on the street" is next. years ago, i was starring in a one-woman show about a cat allergic to other cats. opening-slash-closing night it hit me: hats for cats. everyone said i was crazy. when i went online. i got my domain, catswithhats.com from godaddy. now these things are fee-ly-in' outta here. got a crazy idea you think you can turn into a success? we know you can and we've got a domain for you. go you. godaddy. with usaa is awesome. homeowners insurance life insurance automobile insurance i spent 20 years active duty they still refer to me as "gunnery sergeant" when i call being a usaa member because of my service in the military to pass that on to my kids something that makes me happy my name is roger zapata and i'm a usaa member for life. usaa. we know what it means to serve. get an insurance quote and see why 92% of our members plan to stay for life. >>> welcome back. treasure secretary jack lew speaking out this morning, sitting down with our own steve liesman who

that's a big headwind for its economy, which is export oriented and relying on a cheaper yen. at the same time you have the bank of japan accumulating a third of the outstanding japanese government debt. so what does this all mean for your money? and which global areas are ripe for your investment in asia? let's talk to a global quantitative strategist at wells fargo investment institute. samir, good to see you. japan of course has been in focus after we got that brexit vote the boj and policymakers suggesting that we could see some type of currency intervention in the coming weeks because of the sharp rise in the japanese yen. what does this all mean for the u.s. investor? does a proactive approach taken by the boj mean it's a good thing for u.s. stocks? >> you know, it still remains to be seen. they've passed a couple times in terms of doing anything. and with the yen in the low 100s, it's really been a surprise they haven't really stepped in post brexit. so one of the clearest losers away from call the uk and europe over the last couple days is japan because with that curre

there's still a lot of headwinds coming through for the japanese economy. when we talk about this current account balance, it dear thierry it quite a bit. that is weighing on japan. pointing to some positive growth even after you subtract the first percentage point contribution from this leap year affect that we did see. this probe has been mainly driven by the fact that we do see this rapid reduction in real imports. that is not necessarily a good sign of good growth. of course, with this sales tax ite being postponed now, lowers japan's growth trajectory in 2016, unless we do see more fiscal spending. of course, there is plenty of headwinds. the yen back to 106, it has been hovering around 107. he didn't see much reaction with these latest figures. the nikkei reported when it comes to economists, we are going to see some easing this summer. 3% of economists surveyed on the day have it in june. july --k in some time think sometime in july. look out for that, of course. the kospi just slightly off. holding on to very solid gains in the asia-pacific. we saw

jane: it is a headwind.the back of it, particularly it is growth -- prettily if growth in europe slows down on back of it. we do think it is too difficult just yet to preempt all of that and work out what is going to happen in the u.s. u.s. as yellen has been clear, we have been seeing growth. we have seen disappointments. one big factor will be the dollar because if the dollar keeps on strengthening, -- francine: d believe we will see -- do you believe we will see a dollar rally? jane: it is quite likely. dollar is the political -- it erupts further in europe. extent seen that to some against the u.s. dollar. really poured elections next year in germany and france. the less for years, look at the european parliamentary elections in 2014. we could have more that in the wake of brexit. maybe not. certainly, i think the dollar is going to test given the uncertainty -- given the uncertainty. francine: what does this mean -- the for the bank of japan? asian banks have done so much in the last couple of months an

david: there were headwinds to the global economy. we saw that in the weakness in china and asia.hat impacted the u.s. economy. it is unlikely that the u.k. has escaped that. it is a very expose trading nation as well as. there is some softening coming through. those trends have tended to evaporate this year. the u.k. looks like it is still suffering from the uncertainty impact from the referendum. we are seeing temporary headwinds that are exaggerating some of the slowdown that should reverse out into the second half and we should see an acceleration. we're not looking at strong growth anywhere. globally, the u.s., relatively subdued growth factor out. if there is a pickup short-term and the u.k. come it will be a temporary lift. purchases, a german 10-year yield, that has bounced , that is phenomenal. where are you looking for yields to go in europe? david: there will be a general stabilization. moving beyond the approximate risk to europe from brexit, if we remain in -- which is our main call -- we will see some small risk on. that will help yields. , at july theral end of the

they said that they are making seasonal headwinds as college students leave for summer.index has exchange traded funds in the company says they want to track more money with passive strategies. move will save current investors $20 million per year. those changes taking effective july 1. that is your bloomberg is this flash on this tuesday. joe: "what'd you miss?" brexit upending the chinese policy after the shock vote from beijing, facing a slumping euro hurting the eu and the stronger dollar with risk on capital outflow. for more on the downward pressure, betty liu joins us now. this is kind of a not talked about follow-up, isn't it? betty: it is, and i was just here yesterday talking about how asia to be a buying opportunity. there are many signs to this -- many sides to this coin. is that yes,ere this could mean a slowdown in asia's exports. it could also mean more instability. we have got this great map from her intelligence. it shows which are the most vulnerable countries to the brexit volatility. these companies that are export oriented, right? whenones that have

i've often taekd about headwinds.re headwinds, i think manufacture us expect that headwinds will gradually diminish over time. en that is a reason why you see the upward path for rates. there are other factors at work that are holding down the longer run level of neutral rates. for example, slow productivity growth which is not just a u.s. phenomenon but a global phenomenon. productivity growth could stay long for a prolonged time. and we have in aging societies in many parts of the world that could depress this neutral rate. i think all of us are involved in a process of constantly re-evaluating where is that neutral rate going? and i think what you see is a downward shift in that assessment over time, the sense that maybe more of what is causing this neutral rate to be low are factors that are not rapidly disappearing but will be part of the new normal. now you still see in an assessment that neutral rate will move up somewhat. but it has been coming down. i think it continues to -- it continues to be much lower. an

the first is operations gains persistent headwinds arriving from abroad have kforce central banks toeploy monetary policy with more intensity to deliver their mandates. then in turn results in higher financial stability rates. the spills over to economic conditions in other jurisdictions. [indiscernible] contrary, by securing economic and financial stability in their own jurisdictions, advanced economies have also stabilized other economies through trade and financial linkages. empirical evidence exists -- evidence suggests that the measures taken to -- have been positive, especially at times such as after the lehman crash when countries that faced, and global shocks. at the same time, monetary policy has inevitably created destabilizing spillovers as well . especially when business cycles have been less aligned. the large exchange rates for tuitions between major currencies and the pressures some emerging economies have experienced from capital flows are testament to that. this is not so much a result of the measures central banks have employed but rather the intensity with which th

and at she will still have to deal with that and i think you are right that trump can make some headwindith her on that front. there is an awful lot about what he is saying that will make republicans nervous. coming up, we will head to capitol hill. we will talk to a top democrat next. first, a quick commercial break. ♪ mark: we are talking about the horrific shooting that occurred this weekend in florida. joining us now live from capitol hill, the democratic congressman from mississippi. thank you for joining us. guest: thank you for having me. mark: given how open and free america is, should americans accept this kind of incident as the new normal or is it realistic that the government could stop such things from happening? guest: i think it's realistic that the government should start looking at what is happening and whether or not there are some things we can do to minimize tragedies like what happened in orlando. i think what you will see over the next coming weeks is congress and other agencies looking at what could be done differently to prevent such occurrences. mark: what is one

>> i believe it is because of the headwinds. one of the numbers in the taylor rule reflects professor taylor's estimate of what we sometime refer to as a neutral level of the fed fund rate. it's a level of the fed's fund rate that is consistent with the economy operating at full employment. that is something that by our estimate has been very depressed in the aftermath of the financial crisis. discussions about secular stagnation are very much about what is the level of interest rate that is consistent with the economy operating at full employment. i am hopefully that rate will rise over time although i'm uncertain. at the moment most of the divergence between our settings and what would be the higher-level that would be called for really reflect the headwinds that have been facing the economy. >> the labor, the employment rate really is misleading relative to where we are on the labor market today. meaning that there's a lot of excess capacity and i know ranking member brown was alluding to that. that equation is a little bit o

we are looking at valuations always, but we are looking at the macro headwinds and tailwind and looking for the technical factors that help us with timing. when i look at something like brexit, that has become a significant event that has caused me along with some other macro factors to cut act on international exposure in the second half of january. just trying to take some risk off. complicated even if the leave vote wins. the aftermath will be a long duration of uncertainty. the market is more nervous about this than it is an fomc meeting. you took some positions off and reduced exposure in january. does that mean once it is out of the way that you will look more at international markets again? when will international look attractive? alan: what we did in late january was add to gold miners, using that same process. give can see the market the all clear signal and breakout of this trading range we have been in for a year, that will tell me we can start adding data to my portfolios and that is going to show up in the international space. david: so you would take another look at intern

headwind. notwithstanding the headwinds. is a very focused to keep the u.s. that is presentpr and has been for some time and looking at our colleagues around the world to promote growth in the environment that is implicit in the change where policy-makers can continue and from those events that would unfold. >> let me shift toward a the program's theme of multilateralism and how you give a litmus test on the current levels and some who may string together this rejection of the e.u. and globalization and the widely populist and you even consider potentially emerging actors that benefited greatly looking to try to gain their own influence is there the underpinnings of the story of bilateral listen? >> as i wrote recently if you look at the history toward the multilateral endeavors there has always been the a pill bottle from woodrow wilson from the foundation of the bretton woods organization'' we have la0 learned in the last 70 years house important that commitment has been that has lifted people out of poverty to create opportunities if you look at the areas

you have a lot of headwinds right now in europe.large banks in the u.s., the average net interest margin is 3%. for the europeans, it is half of that. francine: you must look at the banks quite a lot. 10-years ago, it was about consolidation. now we have one regulator, that seems unlikely. will we see banks breaking up? george: if you ask me why the deutsche bank is under share pressure today, they employ a lot of people in london. if we get a vote that goes the wrong way -- my humble opinion -- they're restructuring charges will be very significant. they're going to move the most people out of london in one form or another. it is no wonder they are under specific pressure. the reality is margins are very tough in the bank. the cost is is too high. a lot of restructuring will go on. from our point of view, all we care about is the money good, good counter partners? deutsche bank is still a strong counter partner for us. tom: i look at money good as being the linchpin of mr. c regulatoryogue with authorities. how close are we with th

there are a couple of headwinds and tailwinds on this. is up more than 2% in the aftermarket session which surprised me, because iran is pumping oil. the exports are surging by hundreds of thousands of barrels moment but moment. and yet we still see oil climbing. why? >> i never thought i'd say this, liz, but thank goodness they are, because they're replacing outages other places in the globe right now. look at what's happening in nigeria today. there was another terrorist attack on a major oil platform. that could reduce nigeria's oil exports to a trickle right now, so that's a big issue. we're still beginning to feel the impact from those canadian wildfires. we're going to lose probab couple million barrels a day, and that's going to show up in this week's report. all of that is coming together at the same time. but the other thing, of course, is we're looking at tropical storm colin. you know, right now it's not a threat to oil industry, but you've got to watch this storm. if it turns just a little bit, we may shut down operations in t

but vice versa, then the energy names would have more headwinds versus tailwinds.e have volatility also -- we have volatility also very muted. as caroline mentioned, and has come down with a substantially since the beginning of the year. of course, there were fears of a chinese devaluation, and the januaryas tanking in 2016.the beginning of th and thee ecb meeting, jobs number of your about to get, the brexit about, the next fed meeting -- brexit vote, the next fed meeting, doesn't it surprise you that volatility is so low? the top of the index, not really. there is a general positioning in the market that they can't collapse, because there aren't enough positions to cut. if some macro answers we need before we can turn more bullish. the market is stuck in these big ranges. been the rotation and the service. if you look at that, it is on t on aw side, especially realized basis for step if you look at energy role, or sector role, these are a lot higher. it is not so much a question of the market moving, but which bits are maintaining, that may end up as flat at the

if you are heading in from fairfield it is a headwind. small craft advisory is expanded to all of the bayshore line from the delta at 2:00 this afternoon to 5:00 this evening so we i don't have winds around 30 or 35 miles per hour. i am seeing white cap on the bay. it will be bumpy possibly if you take out a smaller boat. ferries and, again, a little bit affected by that. here is a look at the cloud cover, low clouds are back to the coast and the high clouds are filtering the sunshine. that is why we are below average. temperatures from 50s at the coast and san francisco, a lost 60s around until you get to los gatos and san ramon and brentwood, already low-to-mid 70s. here is a look at high clouds, from mount tamalpais, partly cloudy this afternoon, and breezy with below average highs through friday and a bit of a warming friend but nothing that will get out-of-control, maybe a few nonet here and there. today, low-to-mid 60s in the coast to san francisco and richmond, and low 70s around the bay, mid-70s in the north bay and upper 70s in t

, and very, very high headwinds over the next couple of years. >> for the positive approach, and two years to work tout relationship with the europe and the eu, and the other thing is the mid of two is coming in, and we have exporting allowed, but the mid-2 coming in, and that will allow more flexibility of trade through borders and there is a lot to be done there, and also, we need to look at the background, because m&a across the world has been quite soft over the last 12 months or, so and so we are looking at the overcapacity here in the city, and so there are are going to be some adjustments and anything that you will see that when the markets get down to people looking at the annual operating plan, and taubing to the boards of directors, and it is going to be more realistic. >> and the prime minister said he would step down in three months, and how do you expect the financial sector to react and when does that happen first? >> well, your own candidate donald trump was saying today that he thought it was a good mo for britain to leave the eu, and if he selected president, he woul

what are the biggest headwinds?endum to your fantastic interview, manus, i would add one of the big ones in the reason -- region has to be iran. they've risen a lot more than people have anticipated at the highest level since 2011 producing something like 2 million barrels per day now that the sanctions have been lifted. they are aiming to lift that almost 5n quota up to million barrels per day over the next five years. that in itself is a huge regional tailwind. manus: talk to me about the share producers. -$60 per share the risk-report is shale comes back on board. is there a shift in the index? a shift in what we are seeing in the u.s.? that's exactly right. we have already seen some oil analyst saying now that oil is rrel, itat $50 per ba will test shale. will we see a lot of oil rigs come back online? the idea is with the new shale technology you can turn them off and on relatively quickly. we saw some signs of that last week. oil rig data was up for only the second time this year, something like nine rigs adde

but with the referendum dominating the story, yellen might have something to say about the fomc headwinds to look ahead, next. ♪ matt: welcome back to "on the move." days a darky and clodudy here in berlin, but the sun is shining on the equity markets as we see gains across the board. billionaire philip green will be questioned by two house of commons committees about the collapse of bhs, the retailer he sold for one pound last year. 15 minutes later, we will get the u.k. unemployment figures p.m.pril and then, at 6:45 tonight, michael gove faces audience questions in the bbc television special. at 7:00 p.m., the big one kickoff. the fomc's rate decision. that will be followed by chair yellen's news conference 30 minutes later. make sure you follow the top live blog. .ype in tliv and then turning to our special coverage on television, the fed decides starts at 6:00 p.m. u.k. time. right now, we are joined by bloomberg strategist, richard jones. how excited are you for the fed press conference today because obviously, we are not going to get any kind of decision? richard: i think the f

away from a plan to raise the ites tax hit shinzo abe said is not the time to hike as japan faces headwinds from the rest of the global economy. julia seeger has more on that. tax hike is a sales back and would, according to japan's prime minister. shinzo abe is once again postponing plans to raise the sales tax to 10% 8%. instead of april next year, it will be implemented in 2019. abe says he fears a hike too soon could derail growth. abe: our nation needs to speed up structural reforms, just public finance, and pursue various policies. but we should delay the rise in consumption tax that could potentially hurt domestic demand. that is why i have taken the decision to postpone the sales tax rise. julia: the government last raise the sales tax in 2014 from 5% to 8%. consumer spending dropped, pushing japan's economy into a brief recession. the new rice was first on the cards for october of last year, but concerns of another recession delay the plan. economists say that the tax rises crucial to help trim japan's gigantic public debt, which is led to over $11 trillion, more than double the co

central bank action and still they point to the disjointed political landscape in britain as some headwinds there. let's have a look at how the nikkei and topix are kicking off thursday june 30th and we're continuing that upward momentum or a rebound, the nikkei up 1.15%, broader topix higher as well. the nikkei managed to close higher in the last three trading days, in fact, banking in export related shares which had been battered, have in fact seen most of the buying, we'll see if that continues today. analysts still suggest a stronger yen and other factors may severely dent japan's economy. we just saw some data that you just mentioned regarding the industrial production output levels, tomorrow's quarterly business sentiment survey, the tankan survey, will be widely watched for any further cues or signals as to japan's economy, and investor sentiment towards japan's economy. the move higher in crude oil prices may also support market sentiment. the brent futures gained over 4%, settled above $50 a barrel. the u.s. benchmark wti also touched $50 overnight, $50 a barrel, rising more than 4

do you run up against headwinds at an old gm culture so that maybe you're like, well, that's a littleoo difficult to come up with? >> i think we keep challenging people but volt was a great example. the team came in and said we can do this in amount of time or give you more miles but it's going to take longer. we said great let's do that miles in this time frame and they went, great, but they did it. and sometimes -- i mean, i'm an engineer by degree so sometimes we have it figured out before we make the commitment. that's when they are at their best when they are challenged and the workforce is so excited, even if they are not particularly -- even if their assignment is not working on the autonomous vehicle, they are excited about it and that's what you tap into. i'm really proud of the fact that over the last four years we've improved our employee engagement by 40%. we're attracting people from around the globe. one other thing that people -- they think about general motors of this old company. 25% of our workforce is less than two years experience. so it's a very different general

and that's the headwind that about, thelking negative mood about the direction of the country, about the nominees. to make it very difficult. it's just that at this moment in relative terms president obama is much stronger than he was and has a greater capacity to help his party. gwen: even though the job participation rate today, even though the unemployment numbers down, the job participation rate continues to rise. i'm curious whether the democrats -- the president, hillary clinton or bernie sanders, have hit on a key here, which is if you goad donald trump, you'll get the headline and he'll respond and you can his news cycle. is that what we're seeing? karen: i think we certainly saw it in the hillary clinton speech where she had the networks on her for the whole speech. that his ability to dominate the news is not going as it was when he had a bunch of seven, eight, nine, 10, 14 other republicans. but when it comes down to a head-to-head, one democrat, one republican, it could be a different kind of media dynamic. gwen: let's talk about the media or governmental dynamic abroad.