j. powell is doing. it's really important for you viewers to understand the markets -- >> the markets and the economy are not the same thing. less than 50% of the u.s. population even owns a stock. when the president gets up there and touts it, is he forgetting that those forgotten americans, his base, don't own many stocks? >> the real issue is this, he keeps touting wage growth. wage growth adjusted for inflation is not rising. you think about the economy, you think about this talk about lowering taxes for the middle class, those are all things that may need to be done but not as larry kudlow says the economic boom is never going to end, you know what i mean? >> he said that 12 days ago. >> i guess the point is let's leave something in the tank. they're raising rates so they can get to a point -- the fed funds rate is at 2.5%. you know what it was, it was 5%. in 2000 when the economy and the stock market tapped out, 6.25%. in 2008, they went down to zero, okay, so now we're just coming off of this peri

j. powell isn't local, he's not going wild? >> i actually find myself half in agreement with the president. i think the federal reserve culturally is too worried about inflation that they aren't really seeing and not worried enough about preserving this tight labor market which is really good for workers. we're starting to see some wage gain. so i disagree with the fed. that said, what they're doing is not extraordinary. what they're doing is not loco, as the president has said. there's a good argument to be made that they should be hiking at the rate at which they're hiking. particularly with tech stocks, right, you and i have easily talked for five years about how stocks are overvalued by any measure. when stocks are overvalued, it's like a toddler standing on top of a dresser. you want to get the toddler down without the toddler falling down. right now what we're seeing is the toddler is kind of climbing down. >> we always have to remind our audience, stock valuationings are not based on amount of iphones apple is selling. i

j. powell really stoked it i think he's a considered man. he recognize his words mean tremendous power on wall street i got to sell walmart right now because obviously the chinese or the factor there is tremendous verbiage of what tariffs will mean you are trying to figure out who's going to eat, higher cost and the company and supply change >> that's a key question for so many, how much am i passing along. >> that's why the conference call is for people who want to know why people are so worried about china. it looks fabulous analysis >> they don't have to worry about rising wages as much as walmart but they're already fairly high. >> told you it would be loud there it is, opening bell here on this friday take a look at the sec back in our headquarters kind of mix scope this morning and that appears to be the case. that was last i celastic. it is celebrating. kodiak sign focusing on therapeutic treatments overall >> well, you know david, when we look at things like the long-term jobs growth that i showed you during intermission we have fabu

j. powell, there is inflation, but i don't want your purchasing power to be eroded, but that's causing the stocks to go down. we've heard rumbling that things have gotten worse in the last couple of weeks. we know there was a supply glut for western digital, but people are wondering about the higher quality proprietary chipmakers like amd and nvidia, which is why we sold nvidia for my charitable trust earlier this month. third, people are panicking. in a panic, investors sell first and ask questions later. with all these tech stocks bundled together, it's more than likely a sell first, ask questions later. so there's the history of the selloff, but what do we do more importantly, now that the market is severely oversold, is it time to go bottom fishing in tech, which you know i have not suggested yet. just a little bit nibble today but now i've got some names. if you want to pick among the rubble, you need to be rigorous and empirical, as we said at the top of the show. okay i want you to take a deep breath, and i can do like a plank. i learned about that and set some downside targets. fin

j. powell's crazy and he's raising interest rates too fast.e market goes up, he says it's all about him and we should talk about it more. >> he's obviously scapegoating the fed. that he doesn't get blamed. we know it's a steady march since the election. the s&p 500's up 30% since then. the nasdaq is up 50% since then. i don't think the president can take a whole heck of a lot of credit for a lot of that. definitely not the differential between the nasdaq, right, because they're really not that effective. when you think of some of the major stocks in the nasdaq. they're driving the performance by the president's policies. as far as the volatility in the market, i think what's most important, the market has a maga problem and not the maga you think. >> it is not a make america great again? >> it's microsoft, apple, google and amazon. they make up $3.5 trillion in market cap. 15% of the s&p 500. that's 40% of the nasdaq 100. over the last two weeks, what has the market shown us? when those four stocks go down together, it takes the whole market d

j. powell and that is at least consistent with the line of rhetoric he was using in 2016. in fact, throughout the period of quantitative easing, president trump, as he was trying to build his political reputation, was saying this was harmful to the economy and the fed should -- if they weren't trying to protect -- >> all right, i'll ask ali a question. so we can all sit here and say this is preposterous, it makes no sense. but does it make sense? we have seen the president's rhetoric spook all sorts of people. ceos. political leaders. you know, on both sides. what if this actually has an impact for him? what if somewhere in the recesses of jerome powell's mind and his team, they're like, we don't need this drama, and what if it actually causes them to slow down? >> couple things. i think people who aren't president who think interest rates are too low, always want someone else to raise them when they're not president. i think everybody who is president, when interest rates are too low, never wants anybody to raise the interest rates, right, because it's only ever bad for y

j. powell i will give him that you slow down this economy, you get all the workers you want we have an immigration we are not letting immigrants in that are taking these jobs of major cities across america. it is something that you do not want to expand if you are in the restaurant business. >> amazon's price increase here. they did it in two places, the u.k. and the u.s here it is over 100% higher which highlights the point in terms of the gap and having to pay off workers. >> if you go to powell, a lot of different retailers. you should become a price setter for retail what do you do if you are jc penney jc penney is only a dollar a stock but it employs a lot of people we come in with our cell phone and we don't need checkers and there are 3 million people with checkers >> what about the manhatt manhattan - its got employees and it is a normal store it is slightly odd >> it is slightly disappointing. target is holding up incredibly well here. i think brian kornell is making some original moves. watch pepsico. david faber asked me what's the key of this market, pepsico is going up and they are be

j. powell loco. >> definitely unusual. the thing that's interesting is powell of course is the president's choice to lead the fed. and the fed has a big job ahead. it's trying to say we've got to stay ahead of inflation before it bubbles up and fossalso have foster an economy that creates a lot of jobs. the job situation is fantastic. last month, the unemployment rate dropped to a 49-year low. we're seeing some signs of a little bit of price pressures. not too much though. >> the fed has said they'll keep rising rates because they expect things to keep going well from now until 2020, which happen to be an election year. >> let's be very clear, the strength of the economy right now is something we're going to looking at going forward. it's also going to be very important. we've got earnings season coming up. we'll find out from companies how they think they're going to do going forward and also how trade policy might be impacting them, because now we're starting to feel the impact of the tariffs in certain industries. >> al

and j powell sounding upbeat on the economy.roll the tape. >> i am pleased to say that by these measures the economy looks very good. the unemployment rate stands at 3.9 percent. a 20 year low. inflation is currently running near the percent objective. it is a positive outlook. i was asked at a press conference last week whether these forecasts are too good to be true. which i had to admit, it was a reasonable question. [laughter] stuart: let's get an answer on this. joining us, a harvard economics professor. that was a remarkable and positive outlook from a fed chair. do you share that positive outlook? >> well, he actually told us was, where the economy is now. not where it is going. and i think the economy is in fantastic shape no for the same reasons that jay powell said. i think it is fragile, i think it is a risk that as long-term rates keep rising, the treasury has doubled in the last two years. as it goes from three percent to five percent, i think it would be a real challenge for rectory prices. >> you do not see a rece

j. powell is watching.t is how i would like to comport myself these are not numbers for industrials of things we want to see. if there was tension with china and federal reserve not following then we'll be fine what am i supposed to say? i am not worry that they'll come to census. >> hey jim, it is michelle, good to see you again should we worry to see >> this was not a good quarter, i certainly, yes the cash flows are okay and continuing to buy back shares. this was poor execution and i am quite surprise this is not the 3-m i know and caterpillar was above, what happens there. >> look, it got higher cost. they basically told you they're going to have higher cost. i think it is much of a reaction of the fact they did not do the class classic. orders were great and china were good >> we got to go. am i hearing you correctly that cat perpillar is in a different class? wllll right >>e' be watching at 9:00, jim, thanks, we'll see you in a couple of minutes. ♪ ♪ my ambition? helping people get what they want, un

j lift goldman the s&p 500. for the futures advance. ftse futures -- advance. the u.s. president takes another jab at powell. pres. trump: the biggest threat is the fed because the fed is issing rates too fast and it independent, so i do not speak to them, but i am not happy with what he is doing because it is going to fast. nejra: heading into battle, no brexit progress in the cards. we are in brussels. manus: welcome to "bloomberg daybreak: europe." it is the beat for airfare on the margin. they promised you a beat. margin, 48.1%. 3 billion, the market had, just under 2.9 billion. this is a curtain-raiser on tech . we saw the stocks get battered. droppingonductor index 8% in five days. this is a beat on margin, a beat on sales. it beat the street estimate. this is the guidance, by the way, for fourth quarter. euv orders,arter, this is five systems coming side ofon the big euv the business. 2.8 billion in sales. breaking is coming through on roche, on the pharmaceutical side of the world. astrazenecae had talking about their commitment. nine months. 42 billion. the outlook is confirmed for 2018. prices of drugs i