hovering in jackson hole. philip shaw joins us ahead of the monetary policy symposium today. ♪ >> welcome back. i'm manus cranny. softbank is selling almost $4 billion in bonds to help finance future investments after the company scrapped a merger of its sprint unit with t-mobile u.s. the warchest could be used to buy companies from yahoo! and dish network. a judge has thrown out a $256 billion lawsuit against bp by a whistleblower who claimed that the oil production plan form was unsafe. the judge said it was ultimately about paperwork wrinkles and not engineering shortcuts. ebay shares climbing after reports that they could spin off paypal as soon as next year. the world's biggest online marketplace has been telling potential candidates that they are considering spinning off the division. >> fed chair janet yellen will make her first speech at the jackson hole monetary symposium ladter today. theer george hosting meeting said policymakers have every reason to consider raising interest rate above zero. >> and

speech kicked off the jackson hole some posing.r message -- or is still slack in the u.s. labor market. chief advisor to ollie ounce, and a columnist for bloomberg view. he joins me from california. what was your take away from chair yellen's comments today? did it do enough to satisfy the market, and to give transparency to the debate on the open market debate? ncyagain with transparen on one thing. as mike mckee said, that is a key input into the future of monetary policy. very good for working around the next corner and seeing how complex that is. the good for looking around corner after that, which has to do with financial stability and the global applications of what the u.s. is doing. >> how much weakness remains in the u.s. job market, and what the economy needs right now to achieve maximum employment? >> the biggest weakness is the failure of wages to respond. as jenny ellen pointed out today, all other indicators are stunning to move. we saw that in the minutes that were released two days ago. what hasn't moved his wage gr

economic symposium in jackson hole is officially underway. markets around the world can set their clock for the first keynote speech from fed chair janet yellen. yesterday, michael mckee caught up with kansas city fed chair after george. -- esther george. he asked her about the international impacts of monetary policy. >> we live in the global world, obviously, and the connections are growing between our countries as the fed thinks about monetary policy. it is focused on the u.s. and its mandate, but we talk about the geopolitical risk, we talk about what is happening in the economies of other countries because w we affect each other. >> has mario draghi called? >> mario draghi has it well in hand, i am sure. draghi, our next guest says that the ecb president could steal the spotlight at jackson hole. thank you for coming in. draghi could steal the limelight. we have heard a couple of voices telling us in the studio and again the conversation in jackson hole about whether or would be theeuro best gift that they fed could give. >> it would cer

as well, we are standing, louisa, just ahead of jackson hole. no one really wants to commit to any big positions just ahead of what janet yellen has to say. back to you now. >> which might be understandable, sri. before we go, do you know jell-o? do you eat jell-o? how do you describe it? >> they call it jello-o in america. when i grew up in the uk, it was jelly. >> exactly. my mother used to make it, too. but apparently people aren't buying it any more, sri. thank you for that. later on today, jell-o shaeres are wiggling and wobbling. find out what americans are turning to. it is primarily found in the u.s., i would agree with that. >>> it is back to school season. if you're in e-commerce, should you already been talking about targeting customers for christmas? >>> also, it may have been a record august at the u.s. box office. we take a look at the season's flops and hits, as well. >>> coming up, emily tan, she's been finding out some home truths about the congress long property market. we'll be checking in on that, too. we'll see you in a seco

typically, the jackson hole event is an important one. so i think -- >> so how is this translate through to europe then at the moment? because we're in a similar story here in europe with regard to markets still being willing to, by and large, ignore a lot of the softer data and focus on the points of the good stuff that's coming out. >> i think it's really interesting. monetary -- it's all about the monetary policy. and i think -- i don't know. i'm more confident than markets are about the package that draghi delivered in june. i think that if you look at the uk, it's coincided with a significant increase in bank lending. more access to credit at the front line of the economy. now, this has not been down in the eurozone for three reasons. these banks are being stress tested. so naturally, they're going to want to be very cautious about extending credit lines while they're going to be shoring up their balance sheet. number two, they've been paying back the ltro funding that they got three years ago. so that has affected credit. number thr

you heard from mario draghi from jackson hole.hink the interesting in drug use speech was he signaled that the way is open for european governments to add more physical stimulus. that is a departure from her him. -- for him. some people may not be pleased with that. i think merkel will be trying to button down some of the optimism that governments in spain and italy in particular can begin to spend money as opposed to continue with this kind of policy of austerity. i think the french government is in trouble in the economy. episodesng to see many and chapters in france with the evolution of the socialist party. definitiveave a leader appear on the right. i would think they would love to spend more money. you would hope they would spend it intelligently. i don't think that is going to happen soon. there is going to be a more intense debate within the socialist party. >> we spoke to some commentators this morning who suggested that the debates going on in paris in the midst of the socialist party ofut whether the future france allie

the traveling elite go to jackson hole.in search of a way forward for his republican america. i'm tom keene. joining me is scarlet fu and adam johnson to get you smarter on the american economy. our guest this morning ward mccarthy, chief financial economist at jefferies as well. learn thatt, we japan exports rose more than forecast in july. obviously, they are a big exporter, so if they are exporting more, that means we are buying more. meanwhile, at the bank of england, the officials are split as to members want to increase reflectshey think it the health of their economy. >> we have a gain of 1.4%, which is a reversal from the prior .eeks dropped >> this is what it does. >> it is a volatile number. it is begin yang. >> listen to you. yang.s that yen yang.s the yin >> listen to you. >> staples as reported morning's about an hour -- reported earnings about hour ago. a little better than estimates. target and hewlett-packard later today. what are the company news items we have today? >> we will start with a billion-dollar f

it is easy to use say in -- say in jackson hole. it is hard to do. >> we have a new government tomorrow? >> i don't know if it will happen that quickly. he has to form a new cabinet. the backdrop to all this is that france's economy is stagnating. for thes been no growth last two months. >> i am thinking about "the little mermaid." howrance can't figure out feels about deficits. they also have real structural problems that they need to fix. mario draghi addressed both of those. this is been going on for five years. spending more money is what they need to figure out how to do. >> islamic state militants solidify their hold on syria. now the northeastern province has become the first province fully outside of assad's control. i am going of syria, to call it north-central. i thought it was farther out toward turkey. it is not. it is closer to damascus. >> they're trying to hold onto gains in northern iraq. second they captured the biggest city in june. the u.s. has been bombing net position the last couple of weeks. >> as this was hap

now, to jackson hole, wyoming.rs and top economists from around the world will gather to discuss the outlook for the economy and monetary policy. jonathan ferro is here with a preview. it is fascinating. and thehole's history role it has taken. it seems to have gone from being a place where u.s. central has be would gather and come a real global event. >> ben bernanke made it into something it was not before. it is a bit different this time. the meeting itself is reevaluating the labor dynamics and will give you clues on what janet yellen might do. we have to put this together with the federal reserve minutes yesterday. the big take away there is a hawkish sentiment. , thenta comes in better we might raise rates. why are we putting a line in the statement? it does not tell me you are driven by the data at all. when richard fisher says the fed is coming away -- around to his way of thinking, the committee may becoming a touch more hawkish. when you have these big, burning flames of hawkishness, everybody expects jan

next coming up, we will go to jackson hole.ments from esther george of the kansas city fed. this is "bloomberg surveillance." on bloomberg television and radio. ♪ >> this is "bloomberg surveillance." i am scarlet fu with tom keene and adam johnson. time now for some company news. activist investor carl icon at it again. he has taken another big stake in a big company. this time it is hertz. in the car.5% stake rental company. he may seek a place on the board. not outozilo still is of the legal woods. the countrywide financial co finder will face a civil lawsuit according to people with knowledge of the matter. prosecutors claim to pursue mozilo over his risky lending. armour sportswear makes a slamdunk offer to kevin durant. he is now looking at a 10-year endorsement that could pay up to $285 million, more than what he is paid by the oklahoma city thunder. that is the latest company news. , former saks ceo, this number does not surprise you. a it is about $28 million year. nike is paying $20 million right now. he is the hottest

something happened there in jackson hole today that has never happened before. protests. steve liesman has more. >> reporter: under the shadow of the cloud shrouded ground tetons fed chair janet yellen and ecb president mario draghi addressed the bankers in jackson hole and their speeches spoke of growing differences in their interest rate policies and economies. in fact, zradraghi noted in his speech that the paths of u.s. and european monetary policies. draghi said the euro area economy was uniformly weak and that unemployment was way too high. draghi made a strong appeal for european governments to increase their spending, and noted, european central bank was about to launch two programs to stimulate the economy. yellen said the labor market in the u.s. is improving. and gave it even handed summary of the debate over just how much labor slack there is. yellen said that if progress in the u.s. accelerated, the fed could move up the timetable for a moving stimulus. neither draghi nor yellen made any new policy pronouncements and extensive interviews with federal reserve

jackson hole is the mover in today's trade.that said, as we are here friday, let's look at the big winners for the week on the nasd nasdaq. it's been a big week. a lot of big movers in tech, yahoo! and intel up 5% for the week as the s&p index and trade kept a new 52-week high. apple breaking $100 a share ahead of the iphone6 launch. rioters reporting today apple splieders rushing to get the screens ready for the new iphone. unclear whether this delays the launch. but apple shares lower on the day. check out today's active stocks. look at el polo loco, further expanding presence into texas. that stock on today's move in the trade, and ross stores better than expected earnings, and the fresh market, the specialty retailer focusing on local produce and ogranic foods, that's moving in today's trade after reporting earnings last night. back to you. >> thank you very much. let's focus on a deal today, mentioned in light of simon's comments 07 record r of death this year, and record poe waiting the fed chair comments she'll make not

central bankers are gathering a jackson hole, wyoming. u.s.rs may raise interest rates sooner than expected? strong who has been a advocate for that, the kansas city fed president. mike mckee spoke with her about her view on policy from jackson hole, wyoming. function of how the economy performs. that is why the committee has been talking about it. how normalization will work. how we will control short-term interest rates. that has been the discussion over the last few meetings of the committee. >> one of the controls, overnight reverse repos. there have been a lot of concerns raised. are you worried they may have adverse consequences? >> they could. that has been discussed. reason, you see in the minutes and effort to say we consider this during the normalization process and to be aware of what the consequences could be. >> what are you going to look for when it is time to raise rates? what indicator or indicators tell you the economy is ready? >> i think we are getting close to that. worknk the committee will through this systematically in t

day inup, jackson hole's the spotlight. janet yellen and ecb president mario draghi speaking there today. what effect will they have on the markets? changing the phase of golf, can anyone make it cool again? we will be right back. ♪ back with former cia deputy director john mclaughlin joining skype. that, -- via talking about the islamic state and the danger it characterizes to the u.s. and the world. >> let's compare it to al qaeda before 9/11. damage.sed her and this this group has qualities that al havingould not imagine today. secretary chuck hagel indicated they controlled territory. they are very wealthy, literally hundreds of millions of dollars as a result of everything from kidnapping to bank robberies. they have access by virtue of the fact that they have literally thousands of fighters with western passports who can europeeely in western and come here. there are approximately 100 .merican among this group finally, i think they have a motive. they have a motive to attack in the sense that they are a direct competi

that is what happens when you come from jackson hole.school of business, he will be with us monday. peter henry i am sure with some important thoughts of the yellen and draghi moment. >> this is "bloomberg surveillance." i am scarlet fu here with tom keene and adam johnson. our guest host, robert hormats, former under secretary for economic growth. let's get you copy news from the files of "bloomberg west." shares of ebay talking about a possible spinoff. the move could come as soon as next year. activist investor and shareholder carl icahn has campaigned for the online marketplace to spin off paypal. microsoft plans to unveil windows nine at the end of next month. it is codenamed threshold. it was a new start feature while removing the charm's bar feature. soundcloud says it will start paying artists and record companies. it was it in line with competitors like youtube. boasts 175 million unique listeners each month. that is from the files of "bloomberg west." >> that is a huge deal. whether spotify, soundcloud -- >> artists are getting

the jackson hole meeting to include the heads of the u.s. european and japanese central banks is set to take a deep dive into labor markets, but it really comes down to a great rate debate between just two numbers, the 6.2% and falling unemployment rate and the zero fed funds rate which hasn't budged in almost six years. the key question for the fed is the easy monitory poll say risk inflation down road. >> the labor market largely healed. as you see, employment is back above trend in services and manufacturing. today's fed policy seems not only unnecessary but brought with unappreciated risk. >> reporter: alan kruger will loom large. he was invited but couldn't attend and argued the market is tighter than believed risk inflation because those long-term unemployed and dropped out of the work force he believes are not coming back to work. >> long-term employment remains high and in my view, the evidence suggests the long-materilong-term unemployed kpes plus sure on the labor market and give up searching for a job. >> reporter: janet yell loen

rick. >> definitely keep our eye on jackson hole.rd somebody at jackson hole was making fun of technical analysis. so -- what we're going to do is, we're going to compare technical analysis to monetary policy. what gives the best signals? get ready to rumble, after the break! ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ ♪ ♪ [ male announcer ] during the cadillac summer's best event, lease this 2014 ats for around $299 a month. hurry in -- this exceptional offer ends soon. ♪ hurry in -- this exceptional offer ends soon. it can help your business save money. false. the truth is when you compare our fastest internet to the fastest dsl from the phone company, comcast business gives you more for your money. why pay more for less? call today for a low price on speeds up to 150mbps. and find out more about our two-year price guarantee. comcast busine

coming up in jackson hole.hair is making her first speech as central bank chief at the jackson hole symposium. we take a look at whether she will be dovish or as dovish as investors expect. ♪ that beatng profit estimates advancing the shares to the most in a month. asia's biggest budget airline with a second-quarter quarter profit surged more than six times of that of a year earlier. bank of america's record settlement with u.s. authorities opened the sale of mortgage bonds in the run-up to the 2008 financial crisis could be announced as soon as today according to two people familiar with the matter. the bank will pay $17 billion, one of those people said. awas plans torm add more jetliners. among their biggest customers are singapore airlines, qantas, and aeration. awas has more than 300 planes in service. yesterday's federal reserve minutes showed officials preparing to raise rates sooner than anticipated. this week's focus on the fed continues tomorrow when janet yellen delivers her first speech at the jacks

david: better than jackson hole. better than jackson hole. >> always an honor to be on your show.'re honored. you're always in the forefront ever creating different types of business but accepting bitcoin international. what are the sales like people using bitcoin? secondly, do international people use it much more than americans? >> well, thanks, two great questions. love to have the chance to answer those. since we've launched in january, i think we averaged about, well, it is about quarter of 1% of sales. 12,500 to 15,000 a day since we launched and i expect that to go up in the fourth quarter. that should come to six to eight million dollars in sales this year. i told journalists, how does that translate to the bottom line, that probably translates into three to four cents pretax in extra profits to the bottom line. so i didn't mean it. sometimes i just, reporter asks me question, i give honest answers. sound like i'm pounding my chest. i'm not. bitcoin is strong part of our business but will add a couple shekels to the bottom line this year. david: how does it save you money?

eastern, ahead of yellen's friday speech at the annual jackson hole get together. i was there this year, at the beginning of the summer. it's really nice there. >> i'm not getting there this year. i hope they come in with a happy frame of mind. they have an idea of low inflation, strong dollar, dweent housing, interest rates low. i don't know. what do you want? you want what you got. >> a $4 trillion balance sheet? isn't it time, maybe, just time to -- >> should be a seller. should be a seller. >> what for? they want to ring the register. >> it's a contrary view, but she should ring the register. >> those will cost them. >> whoever came up with that, i want the name. i want the name of the person. saying you should short jazz pharmaceutical. >> i think a lot of hedge funds would too to do the opposite and do better. >> there's a lot of talk they are behind the curve, that was the operative term, and in the meantime, they were on yesterday saying, listen, go to the supermarket, everything's up in price. all i can tell you is you got to look at where things are in th

markets get excited in jackson hole. we have central bankers there. fedmarkets reacted to the coming out and saying that they support recovery's. mario came out with pointed and -- and criticisms about the austerity measures that exist and that there needs to be more flexibility. does this data be part of the solution for europe? >> there is austerityhat fiscal has been a huge weights on the economy. it has not been entirely necessary. that theygovernments need to address. and more solid countries, finances look better. the ecb needs to do more, as well. there is so much better capacity. it looks like inflation is going down further unless they do more work. end ofct this around the the year. >> all right. what about japan? you expect more stimulus? >> not this year. they will extend she we for qre foryear -- she we -- another year. drop in shows a small inflation. that reflects last year and there was a straight increase in inflation. it is because of that and there is a lot of spare capacity in the japanese economy, even more so with the data that h

it's the annual meeting in jackson hole, wyoming.sabga explains why it is such a big deal. >>> the kansas fed moved its annual symposium to jackson hole, wyoming in 1982 to lure paul voelker, an avid fly fisher to at tent. it was an elite forum for scholars, finance ministers, and others to address issues. the conference has marked major milestones in monetary and world history, such as 1990 which witnessed an unprecedented gathering of western and eastern block central bankers tasked with navigating from state market to free-market economies. jackson hole has always played host to many, such as india's central bank head. he warned that the financial innovations most in the audience, including then fed chair alan greenspan were making the financial system safer were actually causing a financial meltdown. three years later, he was proved right. in the wake of the 2008 financial crisis, the annual meeting was ceased upon by ben bernanke to signal significant shifts of monetary policy including asset purchases which helped balloon the f

focust is going to be the of jackson hole? central bank leaders from around the world are gathering in the u.s. at jackson hole in wyoming to talk about what? to talk about normalization of interest rates? >> the title of the symposium is reevaluating labor market dynamics. this is the key benchmark. this is what the central bankers are geared around. we know about the job policy mandate. the markets. about job openings were 13 year highs. job openings going up as an indication that the labor market is improving. pragmatic janet yellen respective, -- perspective, we are not going to see her waiting for all the slack to be used up before moving. hear comments from both sides of the atlantic about how this recovery does not look like recoveries of the past and that seems to because adding economists and central bankers to really ask questions about how these economies are recovering and what role wages played in all of that and productivity -- a lot of different themes to grapple around the labor market. >> absolutely. that does

. >> the eyes of the worlds investors are fixed on jackson hole. the conference of bankers has a renewed cachet with all major central bankers in attendance. they are coordinating strategies between the united states and europe. they're more divergent than ever since the 2008 financial crisis. janet yellen plans to gradually raise interest rates of the employment stage -- situation in the united states continues to improve. for now, she is holding off. >> over the past year, the unemployment rate has fallen considerably and that a surprisingly rapid pace. these developments are encouraging, but it speaks to the depth of the damage that five years after the end of the recession the labor market has yet to fully recover. ecb president meanwhile has indicated he is operating on a different track than the fed. he has expressed willingness to use stimulation measures if the economy continues to worsen. the european economy failed to grow at all in the last year. no major announcements are expected at jack in -- at jackson hole, but the markets will clos

the festivities are about to take hold in jackson hole. the mark does not seem to want to go anywhere but up. is janet's speech in jackson hole going to ruin it? >> no, i don't think so. she made some comments recently that, although the unemployment numbers look good because wages have basically been frozen now for six or seven years, the average american isn't feeling the benefit that the numbers would indicate. as a result i think that's a slightly dovish to enwhich e ii enable her to be accommodative which you know the markets actually like. >> if we hadn't just had the sharp rebound here, you could see it being much clearer sailing in light of what janet yellen says tomorrow. but do you think expectations now have gotten too high? >> i think they're getting there, but i don't really believe that this is a warning sign for investors. you have to realize the market is looking a good 12 months ahead. they are looking at the s&p 500 earnings which for 2015 at this point estimates aren't really all collected but they're going to be higher

investor action to jackson hole a bit muted.rrency markets, we , anyseen the dollar higher elections in new zealand, and the man who is shaking the foundations. "on the move" returns, after this. ♪ >> training again, the chicago mercantile exchange was it i technical glitches. back off. beijing warns washington after a close encounter over the south r slows in and ube india as the r.b.i. changes the rules. general few weeks, a election, but what looks like an the path back to power for prime minister has certainly become more unpredictable, and, in fact, one of his old foes. headlines, throwing it in the works, isn't he? is no love lost between the prime minister john key and this man, and since the raid on the mansion and the attempt to extradite him to the u.s. for copyright fraud, that is ongoing. they are fighting at every turn, and the latest trick is to found his own party, the internet resident and is a not a citizen, but he is funding it, and he is campaigning for his candidates, as well, and he has also increased his ch

a gathering of central bankers and jackson hole.lyoing to be previewing what will be said by yellen, and perhaps more interesting why president druggie of the ecb. mario draghi of the ecb. and a comfortable -- what a comfortable irruption in iceland could do to the airline industry. the industry says it is better per pair now, but ash still strikes fear into many airline executives. we will be talking the business of technology and summer vacation. we'll be meeting the guys at firefly. in two.e move is back >> welcome back to on the move, 55 minutes into your trading day. three companies for you, start with softbank. billion for investments. this comes with the merger of sprint in the u.s.. citigroup earned less than the bank of japan then it's mobile chief executive salary last year. citibank japan has made a profit of 12.9 million dollars. compared with the compensation of $14.5 million. back and explain why they're considering selling the business. $256ge has thrown out a billion lawsuit by a whistleblower, who claims the company

>> no surprise is coming out of jackson hole.s going to happen is the federal end qe in october and probably after that start hearing talk about tightening. the fed is at a zero bound interest rate a no other toolings in the tool kit. they have to normalize fed policy. if we fall back into recession, they have nothing to fight it. in general we see the company have be a skate philosophy and the fed would rather have inflation versus recession to deal with. >> that means energy price goes up, or no? >> no. absolutely not. look at it this way. we have a strong dollar, we have production increases. a weak eurozone. look at china now. moving their economy from largely investment to a consumption-based economy, bess demand on commodities. we're in a period where i'd focus on the consumer. consumer discretionary. consumer will have greater employment, rising wages, low commodity prices. optimum environment for the consumer. >> got all that right now. not spending in retail. >> not at all. but look forward. next year. they'll be changes

janet yellen's speech in jackson hole on friday. so will the fed chair be as dovish as investors hope, or is there a surprise lurking in the grand tetons? someone who probably knows. our own steve liesman who is there. steve, will she disappoint the markets or not? >> depends on what the markets want, scott. >> you know what they want, steve. >> you know better than i do. >> you know what they want. >> the story, markets expect yellen to be neutral and the cnbc survey prepared for the jackson hole conference here, 63% are looking for yellen to be neutral relative to a prior stances which would be essentially dovish. 31% think she may actually be more dovish than she was before. how dovish does the market think the fed will be? we asked our respondents, 36 of them, scott, to look forward. where will interest rates be in '15, '16 and '17, and where will the fed stop? we plotted it out compared to other interest rate hikes. this will be the longest interest rate hike since at least 1983. three percentage points they'll rise are about n

i was going to say jackson hole, as well. instead i'm going to say hue let pack yau yard and >>> good evening everybody, i'm ashley webster, once again lou dobbs, breaking news at this hour as hamas rockets are once again being fired at israel, and yes, israel is retaliating. moments ago, the israel military confirming it's again targeting terror sites across gaza after at least five rockets were fired at israel just hours before 72 hour truce set to expire this afternoon. now despite the prujs of conflict. egypt says israel and hamas have agreed to extend a temporary cease-fire for another five days. although it's not clear if today's rockets fired in subsequent retaliation will scuffle that deal. other crisis arou

i was going to say jackson hole, as well.tead i'm going to say hue let pack yau yard and home depot earnings. have a great rest of your week. >>> on the buzz meter this sunday, new violence in ferguson early this morning in defiance of a curfew as the national media chronicles the chaos after the fatal police shooting of an unarmed teenager. the tear gassing of a television crew and the arrest of two reporters. >> let's go. let's go. you can move. let's go. move. >> sir -- >> let's move. let's move. >> sir -- >> this way or this way. >> but is the press helping to explain another racially charged controversy? and how has the release of that shoplifting video changed the media narrative? >>> in a

liz: we showed her schmoozing with somebody in the lobby at jackson hole. keeping most people away, one protester got close to her. i think her speech was very, very much let me make both sides happy, the hawks and the doves. when you do that, you tend not to make anybody happy. i will say this in advance of saying that. you guys are fully invested even though you feel the stocks are fully valued. one of the things we noticed, inflows to junk bond funds and equity funds were 9, 10, 11, 12 billion dollars flowing back in total. doesn't that tell you the herd is back to risk on. >> in fact, the herd should, given the fact we have no competition for equities or junk yield bonds it makes both of them very compelling. relative to bonds on the ten-year treasury, international bonds like the german bund, cash yields nothing and continue to on a real basis adjusting for inflation means that once again equities should be drawing risk based capital because they're by far the best asset class in the derby. liz: now we get your names. specific companies you absolutely

to be putting 40e8s in the market or making the market whole is what's going to come out of jackson hole-- [laughter] unless a hole in the sky is filled with a hurricane that starts to form somewhere out on the atlantic, i mean, honestly, look at these oil prices dropping precipitously. natural gas isn't doing that much. it hasn't been that hot. this summer. where's the trade here? >> i think the market's oversold, but the trend's down. look at what's happening with u.s. production, liz. it's the highest level since 1974, and it's possible that we're going to produce more oil in this country in the next couple years than we ever have before. in fact, not only that, there are some projections saying we could double oil production. liz: suddenly, there's so much. and it's what people cried about and wanted in the industry. >> that's right. liz: let us drill, and then we do, and what happens? the price goes down, they have trouble making their margins. >> well, yeah, but the margins have still been pretty good. and what's nice about the oil we're producing, it's high quality, high yielding

>> jackson hole and the two question, tyler.he first one is how do you interpret labor market slack? it is critical. absolutely critical. that is an open question. the second issue is something that i don't think people will want to talk about openly but it came out again over the weekend with the release of the book on secular stagnation. there is a very strong view which i agree with that the fed is trying to pursue too many objectives. what it is sacrificing is financial stability. that the fed is willing to trade off immediate economic gains for financial instability down the road. and that maybe macroprudential policies are not strong enough. look for the slack argument and the issue of financial stability. >> that's fascinating because that goes back to the very debate we were just having about the $17 billion fine bachk of america's current quly in talks pay regarding the testimony crisis and whether or not that's going to keep these all together on top of one another, are going to keep institutions in the future from try

up next, we go to jackson hole, wyoming.ichael mckee joins us with the start of the annual economic symposium, including highlights of his sitdown interview with the kansas city fed president. a look at the grand mountains on this thursday. "bottom line" continues in just a moment. ♪ >> we continue our focus on the federal reserve as bankers and economists gather at the annual jackson hole, wyoming, symposium. haeckel mckee is there. michael? michael mckee is there. michael? knowing interesting people on the lower manhattan at the new york stock exchange and elsewhere are wondering what kinds of clues they will get for the fed future policy. they suggested a more hawkish view, maybe an earlier rate rise. one of the people arguing for that is the host here, esther george. i asked her yesterday if she still believes that we need to move sooner rather than later. that will be a function of how the economy performs. that is why the committee has been talking about with the sized balance sheet, how the normalization will work, ho

jackson hole, by the way.len's going to be talking at jackson hole. >> you need -- this is one literally where the most important -- past justice, now just net interest margin, and it's not going the right way. i think merrill is doing well. i think that the bank itself is doing well. i think they are focused. did not feel these things even two years ago. i think the company -- you know, why do you like the stock? because every time one of the justice department deals is done, they focus on being bankers, not being lawyers. >> hertz, you did it yesterday. >> wall of shame? >> yeah. put them on there? >> of course. >> yesterday, of course, late in the day, we got a filing from carl icahn, god bless him, 8.4%. >> he's a buy back. he's a buy back. >> january, i recall, i first reported -- >> dead right on this. >> it's a drinking game when i say "first quarter". >> there's people who tweet every time i say it, they got to drink. it's one of those phrases that i use. >> ridiculous. >> it's true. it was back in jan

. >> new details from the annual conference in jackson hole, wyoming. janet yellen and mario draghi both spoke today. michael mckee is there and joins me with the latest. >> pimm, certainly not a day you could necessarily trade on but a lot of information for investors to digest. two central bankers with their economies going in different directions, two different messages for the colleagues and the markets. for janet yellen, acknowledgment the economy is getting better faster than she expected which does put rate increases on the table. the timing remains uncertain. act too fast and you risk threatening recovery if investors overreact and push market rates up deceptively. act too slowly and you risk accelerating inflation that would force the fed to raise rates higher and faster short-circuiting growth. as yellen said, monetary policy must be conducted in a pragmatic matter that reflects the ongoing assessment of a wide range of information. mario draghi does not need information. he knows his economy is in trouble, growth stalling in eurozone and infl

and we leave jackson hole with essentially the same scenario in place. everything is data-dependent from here forward. nothing has dramatically changed. >> no, you sound disappointed, scott. i'm sorry about that. we do our best out here to give you the information, but -- >> no, no, i think the market is looking for a little bit more. >> would you have it any other way? would you have them be dogmatic about it, rather than be data-dependent? >> no, i'm not disappointed at all. i mean, i would expect -- i say it somewhat sarcastically, in that of course -- >> i'm joking. >> -- everything is going to be dat data-dependent, right? but some people were expecting her to be a little more dovish, there were risks in the market that perhaps she was going to be a little more hawkish and they really got a vanilla speech. >> look, what we got was follow the u-6. what we got was follow part-time for economic reasons. what we got was watch this debate internally about how much is structural, how much is cyclical. i mean, personally, i don't want the fed to do anythin

i am guessing mario draghi is taking the headlines post jackson hole.his a man who is waiting qe to come? >> it is interesting. he was making the obvious observation we have seen inflationary trends continue and bond yields supported. in addition the economic news we had coming out of europe, our second-quarter quarter gdp showing either stagnation or contraction in the largest three economies in europe, clearly not the sign of a robust european economy going forward. linked to one was of the comments manus made, the comment toe went off deliver this. they have to be amended for these additional comments. it seems very much as though mr. pressures trying to some others at the ecb to allow to pave the way for qe. >> how does it impact your view on equities? you have moved to neutral. would this be a game changer if they did capitulate on qe? >> i think we are a long way from the ecb being able to capitulate. in terms of changing our todamental view, we need have confidence it will spark earnings growth and will help reverse this inflationary tendencies a

tomorrow janet yellen comes out and is out in jackson hole. how much do you think she is looking, realistically they will make their decisions not at all interested how the market receipt acts. i don't at all believe it. i think they are interested in how the market reacts, when the market goes down dramatically they try to cover it in some way. how much do you think she is tailoring her remarks to the market? >> i totally agree with you, they do care what happens in the marketplace. you know what? i'm sure the script is fully, fully planned out, she is really not going to deviate from what we have seen over the last few fed meetings and comments coming out. it is going to be very, very dovish in my opinion. it is going to be, to the extent, she will say, june, july, inflation risks are not minimal but not really a concern. i don't see what she says tomorrow being any impact whatsoever to this marketplace. they do c ey want toee mke theyovarkeect yr ittlighe z: r ges moneyan perspective. will you lten more cloly to janet yellen or mario draghi

the tetons of wyoming this week and we're looking into the topics of discussion at this year's jackson hole wyoming symposium then muni expert miss kate long is on the program kate sat down with me earlier today to discuss the manipulable may have face in atlanta city right now and in today's big deal edward harris and i are discussing the fast food mega merger between the king of burgers and the canadian don't it captain mr tim hortons it all starts right now. there is a large gathering the world central bankers taking place in the mountains of wyoming right now yes the jackson hole symposium brings together the most influential monetary policy makers on the planet and last week local central bankers led by federal reserve chair janet yellen said that labor market still have further to heal before their economies can weather higher interest rates official meetings over the weekend in jackson hole placed jobs at the center of discussions saying that stronger hiring and wages are still needed to drive demand making her debut as fed chief at the annual conference yellen said that.