betty: thank you so much, peter cook, who will be watching janet yellen's remarks. will keep our eyes on the fed chair. we will take you to providence live. in just a few moments. ♪ betty: it is 10:00 in san francisco and 1:00 and hong kong. matt: i am matt miller joining bette today. data's day yellen's to shine. she is going to speak in a few moments. we will find out what she has to say about the economy while in today's report that showed inflation is rising more than expected. another round of talks on the greek crisis ends with no deals. greek finance minister may see a parallel currency. at the boxer sequel office. we will tell you why more studios are turning to the and remakes instead of being creative. ♪ betty: this is "bloomberg markets pick up the up breaking news on fed chair janet yellen. i want to get to peter cook, our chief washington correspondence with highlights of her speech. peter. headlines is

guy: janet yellen's warning. stocks drop around the globe as they say equity the uh and's are quite high. anna: german company siemens cut jobs. guy: u.k. voters go to the polls today. good morning and welcome. you are watching the pulse. we are right here in london. anna: we begin with the global selloff. $2 trillion has been wiped off the market. guy: you are looking at it right now. as you can see there is a lot of red on that screen. anna: bonds continue to retreat today. that is the german and 10 year bonds showing yields. guy: that is what happens when you strip things early. the latest concern comes from the federal reserve chair janet yellen. she said that debt markets may exist. >> equity market valuations at this point are fairly high. not so high when you compare the returns on equities to the returns on safe assets like bonds which are also very low. but there are other potential dangers there. guy: that is quite a combo. that brings us to today's twitter question. it is simple and straightforward, is

storynow more on our top -- here's a bit of what janet yellen had to say today in providence, rhode islandyellen: if the economy continues to improve as i expect, i think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. to support taking this step, though, i will need to see continued improvement in labor market conditions, and i will need to be reasonably confident that inflation will move back to 2% over the medium-term. after we begin raising the federal funds rate, i anticipate that the pace of normalization is likely to be gradual. headwinds that are still restraining the economy, as i said, will likely take some time to fully abate, and the pace of that improvement is highly uncertain. if conditions develop as my colleagues and i expect, then objectives of maximum employment and price stability would best be achieved by proceeding cautiously. itch i expect would mean will be several years before the federal funds rate would be back to its normal, longer run level. matt:

janet yellen has confidence in the u.s.conomy, but she makes it clear that we are not at full employment there. she said that exquisitely. one thing to continue to watch is improving labor markets. inflation moving which iowa is starting to do. -- is stilln convinced that there is a liftoff based on the current state of the economy. betty: it sounds as if you say that she is sticking with what she has noted before. she is takings questions that the speech that some of the questions might revolve around how this gradual pace of tightening is going to be executed. what is it going to look like? peter: i think she has made clear in the past and i think she will again in the speech that it will not be like previous tightening cycles, where we saw quarter-point moves every single meeting. we are going to look at what is happening with the economy and adjust as needed. we could take a couple meetings off. that is basically the message here. she has said this before, betty, and she has delivered messages to press conferences as we

why did i hear janet yellen say there is a perfect storm? now inflation and housing prices going up? jobs going up? then i the help of window spin machine is right but not from her perspective whether in this spirit of the military air strike first is ground strike her as his maximum employment. that to is true but when they get into the weeds. >> but helicopter then they used to call the predecessor. and then to move the needle that is the disconnect they want to see things happening with a good paying job. >> to benefit their own lives that is the disconnect charles: with janet yellen in particular she has the difficult job to justified because how many know what it is? we don't know what the heck it is but it has the extraordinary power out of there to part -- to print $4 trillion? >> she is backed into a corner things are doing better retail she is not raising rates she passed to build the rhetoric we can do this. when the rubber meets the road how many people have been on food stamps the last six years it is growing. i don't think it is

i don't think janet yellen slipped, i don't think this slipped. i think he made this absurd comment to say from my point of view, there won't be a rate high, because what i just said is nuts, if consumers begin to spend willy-nilly like they used to, it is not going to happen overnight to matt's point. >> lockhart and all of the fed members are starting to confuse wall street and investors in general, they're going off on their own with comments and saying these things, i think it's a bad omen of what's to come, they can't seem to act in unison and janet yellen has lost control because of the other fed members. i have never seen so much power and influence in the market as they have now. >> i think the media is giving them power, i don't think janet yellen lost power or influence, she'll be the decision-maker. >> what's more important, what's going on in the treasury market right now is much more important to the economy and the financial markets than what the fed does. we know they're going to from 0 to 50 if not this year then next year. the tig

mark: janet yellen has warned about high valuations in the debt market. ♪ mark: janet yellen talked aboutigh valuations in the debt market. let's get the details. head of global market research, good to see you. were you surprised at the openness of janet yellen? you are and fx man. you surprised at the openness? >> i don't know openness is the word i would use. i feel safe that the chairman of the reserve has a opinion. i don't know if she is worried about financial risk, or it is making her a bit more cognizant, but certainly, if i were the regulator or a governor, i would because it's of cautious. we are sitting here looking at commodities, currencies not so much. but fixed incomes, certainly. rationalizing what is driving this. and the fed was searching so hard, the drivers don't seem significant. if this was to carry out a risk event or something we could pinpoint, at least we would feel more comfortable about it. what we are looking at really is something else, which says that what happened on october 15 in the treasury market -- the flash crash, or whatever you want to call it, is

lisa: right. : this is a victory lap for janet yellen.e market is that this is not a one and done fed. then you escape the taper tantrum and they get the zero bound, which they really want to do -- lisa: it's not quite a victory lap -- if you look at the futures, the bond futures, you will see that they are steering the fed with respect to where the benchmark rates will end in 2016. scarlet: talk about the nature of that disagreement. itself already brought closer to the market. the: beam market has -- market has stood firm. the fed is the one that caved. they said 1.8%, where is the bond market tried to get a 1% rate. and we have the june fomc meeting with the dot plot and the -- right now it takes about three and a quarter percent growth in each remaining quarter of the year to hit the federal year-end target. scarlet: r from it. carl riccadonna, thank you so much. abramowicz, our bond markets kuru here at bloomberg news. we have so much more coming up on the bloomberg market day. we are counting you down to the close. it has been a vol

it's up 1% after janet yellen. it's one of the places where you have seen the biggest reaction. >> a move. let's talk about it. back with us kathy jones from charles schwab. who's with us here at the big board, gerard fitzpatrick from russell investments, ken mahoney, also with us here at the new york stock exchange rick santelli checking in. >> when you look at how the market responded, you didn't get a whole lot out of this did you? >> i think she just reiterated what we already know and that is that the fed intends to raise rates this year. we think they'll probably start in september. as long as the economy is doing well, they're going to take a gradual approach. which i think is pretty well based into the market already. >> are we there yet? i mean -- what has to happen for us to be there so they can start raising rates do you think? >> i think we're probably there. again, i think the big concern for them is the communications strategy. they want to avoid another taper tantrum. unemployment is falling and even

that tells you how little news there was today, other than janet yellen.etty: and how trigger-happy investors are. i hate to say anything reminds me of 2007. back in the day, when scarlet was training me, every day the market story was [indiscernible] it did not matter how bogus the rumor was. it tells you something about a bull market. profit growth is slowing. 2007, wherer to people of the takeover rumors. i think we will see more rumors like that. scarlet: you did have cpi. david rosenberg says if you go back to 1960, this has been the best gdp inflation backdrop. to 2%.flation between 1% the s&p 500 on average gains 15% annually. he says right now this is a good environment for stocks, not so much necessarily for bonds. today.hat selloff >> partly in response to cpi data, showing inflation was coming in at a fast pace. this is raising a little bit of concern in the bond markets that they are going to hike this year and bond values could potentially lose. >> that is what her message was, 2015 is for real. >> for real. [laughter] >> she's not kidding aro

at 1:00 p.m., janet yellen speaks. tom: you have to believe she will advance the dialogue forward. let's look at equities bonds currencies, commodities. yesterday uncommonly quiet. pretty much we continue the wage bound trade rating for the world of economics to link back into the world of finance. still very elevated equity prices. the vix 12.11 stunning complacency. for your memorial day sport we give you three obscure cross rates because we can do this at bloomberg. how about euro, swedish krona. how about japanese yen, swedish jan. we have never done this on surveillance this morning. stephen will make us smarter on this strange and obscure world in the next hour. let's consider greece. chancellor angela merkel stamping out optimism on greece with a vengeance. this of course at the eu summit in latvia. she said greater -- i have no idea what it means. guy johnson does. guy you carried the story forward. we saw the market move about an hour ago. why did spreads widen? guy: i think people are assuming the little bit

michael: relatively, i can't janet yellen's remarks -- i caught janet yellen's remarks -- stocks do notxt to credit and government rates. stocks look cheap versus those others. that is relatively. if you move rates up, you will move the rest of the asset classes. erik: what about the argument that there are no more powerful actors in the world in central banks and they are all pumping liquidity into the system. if the european central bank -- maybe the fed is not doing it -- if the ecb is buying here -- there will be a selloff in the rates market? michael: there will be for one of two reasons. one is, people will buy the fact that they might win. it might work. if we can create inflation, and the u.s. is the crucible because if they can create inflation, people will make the leap that germany is using the same ibook -- same playbook. it is a big if. if i had an iphone i would pull it out as say this alone is a deflation machine. demographics are a deflation machine. we have structural horses that -- forces. that is the big debate. the fed is semi-schizophrenic. they have been shifting b

maybe they were 1 foot out the door what janet yellen said tuesday.hat do you expect with the trading action then? >> liz, i think the risk that we see is probably a little bit higher interest rates here. bond investors, when i talk to bond investors, they've been very complacent. they've said to me, well, there's no inflation. liz, that is actually not true. we're seeing about 1.8% core cpi. year on year. that's very close to the fed's 2% inflation target. (?) >> ten-year yield at the moment 2.2%. thirty year yield 2.98. >> the move with five basis points from two year yields. (?) fifty-seven basis points up to about 62 basis points. we did see -- a little bit of a market reaction in the bond space this morning. expect that to continue over the summer months, liz. i think the low inflation that we've been talking about so many times on this show, that might be behind us. we might see some upward pressure to inflation as we go forward. >> that's what the fed wants to see. a little bit of price action when it comes to inflation. have a safe and happy a

what do you watch that's smarter than what janet yellen says perhaps? >> i watch several different things. the dry ship indicators and overlay like the other guest was saying, i overlay 10-year notes on gold. they have tied themselves together when. futures go down in the note, they go down in the gold. take that chart up, it's unusual, but tied itself together for a year. liz: you see the maturity line and the gold line which, of course, is the blue line. i don't know why we didn't make the gold line gold. jeff grossman, we saw oil hitting a new five month high, jeff. >> yes, it did. i have been touting that for the last several times i have been on. i'm not surprised we got here. again, about the indexes, i am a simple guy, looking at lundberg gas survey. liz: the lundberg gas survey? that's not so simple. >> it's not as exotic as the ones the other guests mentioned, but i'm look at the trends in gasoline consumption. liz: well, the trend when it comes to prices is definitely up. >> well, a couple of weeks ago, everybody was sure that we were going to

janet yellen is talking. right now you see by watching the bond market. the bond market is telling us they want to raise rates no matter what. bonds are up. once it got through 2.19, it was off to the races. there are a lot of indication they will raise rates sooner than later. i don't think they can. i think they're making mistake. pressure on dollar, rise in the permanent man rate, all of sudden makes sense that they possibly raise rates. although i don't think they will. rate increase is being priced in sooner than later, based on what i'm seeing in markets here. it is creating a little bit of turbulence with the overall market. friday's job number, if it is a big miss, i think it is off the table. we'll see. adam: janet yellen'sish rational exuberance statement. you think there is opportunity as we said two minutes ago, with small cap and mid-cap stocks. tell me about that. >> sure. at southwestern money management we believe in diversification. so we look to own stocks in variety of different market caps we find a lost opportunities in the small, mid

stephanie: we will hear from janet yellen today.he sentiment that rates could be pushed higher in the next month, we are only going to see the move more dramatic. erik: hearing something similar. also, euro-dollar options expiring today at $1.10 $1.11 $1.15. stephanie: if the dollar rises sooner, it is why you watch bloomberg tv -- it is only hear what you can get this live coverage. that is what the street is telling us. erik: we will be back in two minutes, everybody. ♪ erik: let's go back to the euro-dollar chart so that you can see the most exciting move of these pre-memorial day markets. stephanie: if you look at the timing, it started exactly at 8:30 a.m., when the cpi number which was more positive than people expected came out. ♪ erik: you are watching "market makers." i am erik schatzker with stephanie ruhle. david's are both is here. michael reagan. we were talking about the euro-dollar move and that is what we should begin the conversation. michael r.: a reaction to the core inflation numbers we got. it reminds me of comm

david: janet yellen was too. >> we know what it can do.his deflation is such a serious, serious concern, not just for the united states but for europe. once prices, david, start to fall, it is like this cycle. it is just really vicious. i think that is what she is trying to avoid. david: veronica, i've seen very vicious cycles with inflation. frankly that concerns me more than deflation concerns. >> they're both pretty ugly prospects. idea of hyperinflation versus idea of inflation. we don't want either of those. the fact the fed is facing a very difficult challenge right now. they need to figure out when to raise rates, do it and do it gradually so the market doesn't freak out. we've had a lot of sideways movement in. market. we'll continue to have the sideways movement and continue with volatility. until we have further guidance from the fed, savers around investors, especially mom-and-pop and middle america will be left saying, what do i do? i want to sit on the sidelines because i'm still so scared. david: veronica you making assumptio

janet yellen speaks at 1:00 eastern today.er really makes that dependency something important. i wonder if that speech will be changed or will be like yesterday's sweet rolls. if you look at a chart going all the way back to august 2011 cpi core. you won't find a higher number until that month. up 0.3. what did it do to the market? look at the short part of the yield curve. two-year note zoomed a little bit, didn't it? s as it sits right now up 4 on the day, up 7% on the week. 30-year bond. minus one unchanged when we look at what it is based on yechltd but yesterday. flattening is usually what traders do before they think the fed will potentially raise rates. let's look at the market's response. let's look at all three of the biggies. 10s minus 2s flattening. 30s minus 5, two day, flattening. market has an opinion here. maybe there is an exaggeration going into a three-day weekend. when it's euro strength or weakness that moves the dollar we try to focus on the proactive component. when was the last time the dollar index clos

thanks for nothing, janet yellen.terms to describe the stocks today saying that valuations quote,

later, it is janet yellen time. don't miss it.eat weekend. ♪ guy: friendly and constructive. merkel's words to describe this meeting with tsipras and hollande. the three leaders didn't walk out with a deal for greece. worth tweeting a picture though. the ecb president is about to stay at the forum on central banking in portugal. we are going to bring you all the news as we get it. and we are going to take you back to riga. we speak to the ukrainian finance director, natalie jaresko. that exclusive interview right here on "the pulse."

we saw some weakness on the yen after janet yellen's comments. another page turns in the greek debt trouble with the final scene possibly just two weeks away, happens calling for compromise say they have met creditors three quarters of the way, more than $6 billion of bills will come. minister greek finance is saying it is up to creditors to compromise in the rather colorful analogy he says it is that creditor's interest the cow that produces the milk should be beaten into submission, so the milk will not be enough for them to get their money back. this is statement comes one day after prime minister tsipras says greece cannot absorb anymore austerity measures. the german chancellor and the french president have already made it clear last week that greece has until the end of this month to reach an agreement on it's a program, and that would include economic changes, policy changes demanded by creditors. the greek government has to pay a monthly tension, they have to pay salaries by this friday, it also has to repay about $330 million to the imf

janet yellen is a gradualist.pull what the fed did in 2004 to 2007 where they raise the fed funds rate from 1% to 5.25%. i think she raises by 0.25% in november and steps back two or three months and sees the reaction in the economy and markets. i'm not afraid of a rate ratchet here. >> yield on the 10-year german bund year is at its highest level in five months. it's been volatile for bonds around the world. should we are worried about that here in the united states? >> i don't think so. bill gross has got that one right. the trade of the century is to short german ten year bund. >> you agree? >> i agree. >> you're the second person in recent sessions who has spoke, i think what you are saying is equities are a long-term investment. you kind of bypassing the fluctuations and concerns we have for the next how long? >> ron barren told me there aren't many of us left. i said what do you mean? he said that have seen a secular bull market like '82 to 2000. secular bull markets tend to last 14 or 15 years. we are six y

thanks for nothing, janet yellen. sheaf used frightening terms to describe the stocks today saying that valuations quote, generally are quite high end quote and that they represent quote potential dangers. yeah, i think her comments contributed to one more nasty session, dow plunging 86 points. nasdaq tumbling 0.40%. everyone is entitled to their opinion. that doesn't mean i think everyone should express that opinion especially when they run the federal reserve and the topic is stocks. why do i say that? as a grizzled veteran of the markets i know this can be unhelpful. i remember in december of 1996 when alan greenspan panicked many talking about how stocks are suffering from irrational exuberance. how did you do if you listened to greenspan? forget the fact that you would have missed out on one of the greatest bull runs. the dow was at 6308 and now it's over 17300. come on. same thing happened in july of last year. when janet yellen herself said that valuation metrics in some sectors particularly biotech and social

i want to update all of you on this janet yellen speaking about the economy. these comments just coming out moments ago. she reiterated that rate hikes are expected sometime this year. our very own blake burman has details what the fed chairwoman had to say. blake? >> she did indeed, cheryl. good afternoon to you. appears janet yellen's remarks in rhode island were pretty much right in line with what the markets expected. she told the chamber of commerce there if the economy continues to improve as she expects the fed should be on track for a rate increase later this year. the minutes from april's fomc meeting on wednesday cast doubt of an increase happening during june's meeting. yellen this afternoon really did not give a hint as to when an increase might play out later this year. she said after liftoff, the fed will take a cautious approach. >> if conditions develop as my colleagues and i expect, then the fomc's objectives of maximum employment and price stability would best be achieved by proceeding cautiously. which i expect would mean that it will be sev

is carl -- andow -- part of this was in opposition to what we heard janet yellen say n.es bullard is on his own? guest: he is in the hawkish camp which puts him outside of the dovish core of the open market committee this year to janet yellen. dudley, fisher, and some of the others. while those are not reflective of the underlying tone of the committee, he did sound dismissive about the inflation numbers are as tenant in her speech last friday said that actually it is more troubling that we are missing on the inflation side of the mandate to a larger degree than the employment aside. a very sanguine view towards the outlook. they want to do something this year, even if it is one and done just to do it. we heard him talk about asset bubbles. where is the biggest risk? pat: you mentioned a large country or of that of the to the west of us called china. it has one of the largest asset bubbles going on. it has nothing to do with that policy, it has to do with the shenzhen hong kong linkage that has been opened up. in the u.s. it is hard to find asset bubbles that are interes

can we blame it on janet yellen? >> no. i think you put the nail on the head when you said during gasoline over a fire. the fire was already burning. the german 10 year at a yield of about five basis points. a blowout over the last couple of weeks. as for the why, i don't think it is a primary driver that we can single out one thing, but i will point out two things. a tremendous rally. a phenomenal rally. global bonds. you have seen multiyear lows on japanese debt, u.s. treasuries. you have seen record lows from france, italy, spain, germany. eventually you get to weigh risk that you get two-way risk. this is the second point and the important one. the debate going on globally right now.remember the back drop to the yields? the idea investors would accept a ridiculously low yield because they didn't think the deflation -- oil rebounds. data picks up.those two things and into inflation expectations picking up. this is the reflection a lot of people were waiting for. this could go on for years. that could speak to the idea th

keep an eye on those gas prices. >> moving on janet yellen is speaking about the economy today when she addresses the greater providence chamber of commerce in rhode island. yellen may comment on the labor market or unemployment as rhode island has one of the highest jobless rates in the country above 6%. the minutes from last month's fed minutes suggested a june rate hike was off the table. all eyes on janet yellen and what he says today. >> we have a little bit of commentary from the bank president that says stronger coordination of monetary policy between europe and the u.s. is not a goal in itself. it is known that i'm skeptical about qe but it would not be constructive to constantly comment about it and the end to unusually low levels of volatility in some markets can help sharpen markets minds. the recent volatility including higher bond yields market correction. so those are some of the commentaries the economic outlook is brighter than it has been for seven years. speaking at the ecb forum he added that monetary policy is work it's way through the economy and growth is picking u

that will reserve chair janet yellen had a warning.anet yellen: the equity market valuation at this point generally, quite high. now, they are not so high when you compare the returns on equity's two returns on safe assets like bonds, which are also very low, but there are also potential dangers there. emily: yellen also said that they could see a sharp jump if the fed raises rates. and the time warner cable deal, calling for more diversification in the business. mr. wheeler: we do not have a lot of competition, especially at the speed that are important to the consumers of online video. a fully competitive marketplace would bring with it the intense and constant pressure, pressure to improve just as it did in the days of cable dsl competition. more competition would be better. emily: at that same show cablevision ceo james dolan said he wants the cable tv market in new york to consolidate. tesla shares are rising in after-hours trading. the electorate carmaker saying revenue rose to 1.1 billion dollars, while the company reported a $1

guest: we will hear from janet yellen today and get more guidance from her. one of the thinks they said in the minutes was that careful committee communications regarding policy intentions could help dampen markets. is that really the case? quarter-point rate increase as scary of a thing as tapering, qe, and can the fed really talk us out of this? guest: they have already gone a long way to talking us out of this. the fed has been working and pushing the markets wider. when they did the taper it was a non-event. taper catcher? ben bernanke3 said, there is possibility we could start tapering asset purchases. the market $35 billion a month but it went down. that was the tantrum part of it. olivia: the freak out. guest: some were calling this a potential taper tightening. not sold yourave bonds in anticipation of the increasing interest rate, have you been living under a rock for the last five years? guest: people are longer treasuries and longer more treasury risks this year than last year. ( why? guest: one of my favorite charts is bloomberg takes the average

olivia: which does janet yellen put weight on?d has historically been putting more weight on it, because it's more comprehensive t. covers costs for companies of hiring and having people working for them. that's why we put more weight on that trend that has appeared over the last year as an important development. i think it feeds into the fed's decision whether they want to hike in june, september, or december. groip let me put up something else, a chart we lifted directly from you. olivia: do it. i'm learning a lot. brendan: it was our single best chart last hour. what we're seeing here is that it is a high-skill recovery. of course, you need growth in low-wage jobs or demand for low-wage jobs in order to increase low wages. my question is, we've been talking about, we want to see wage inflation before we move. how much and for how long? because wouldn't a little wage inflation be really good for the economy, and shouldn't we sit on it for a while? torsen: can means higher top-line growth for companies. we basically had no top-li

it is expected rates to rise after federal reserve chair janet yellen said the interest rates could raise. >> it is normal for markets to become more volatile. we are not surprised by this. in a lot of people's view that was less likely to occur now than c september or perhaps even december but over the last few days fed speakers including chairwoman yellen have made it clear that the first rate hike will begin sometime in 2015. >> many market observers do note that while we have seen more volatility recently we have yet to see any real stress for stocks or the u.s. economy. at least not enough to kauds any real panic. but as markets try to handicap when the fed will move on rates, more of a roller coaster ride could be in store for the next months. i would expect volatility to continue through the summer. you have a point of decision on whether interest rates will be moved up by september. they've indicated september is the likely date. the closer we get to september, the more the market is going to be pricing and the impact of that move and that usually create volatility. >> even though

>> yes, bill, well, think i it's smart to agree with janet yellen. she knows what she's talking about. it harkins back a little bit to the exuberant comment from greenspan but her point was very clear. it's just that they're quite high and they have been quite high. again, that three-month chart on the s&p 500, they've been high for almost six months. but the economy is still strong not super strong because you're going to talk about productivity. that's an underlying problem within the economy. but we think that it's a healthy economy, stocks are high. that means they could tread higher. you've had a six-year bull market which is very long in the tooth. i would eneverybody to look at their 401(k) statements and rebalance that asset allocation. >> you did say at the top you were shaveing the u.s. exposure and go a little bit more overseas. do you want to tell us sector-wise what you have in your portfolio. >> we like to be more germany and northern europe. as you brought up, the uk the pound has been strong. the uk will be strong with its involvement

that was janet yellen wrapping up here speech in providence. steve liesman, give us the three takeaways here. >> thank you very much. >> one of them is that they are continuing on this idea that the weakness is transitory. they are on a track to raise rates at some point this year. she really upgraded her view of the job market i think a little bit and is pretty neutral about inflation and did not incorporate the new inflation data we had. >> it was interesting how she steered away from the stocks afterwards and it was quite a twitter around the markets when she said that stock prices are quite high and people were weighing in saying why is she commenting on the stock market anyway? >> she didn't this time around. >> she learned her lesson. >> i'm not sure that is true. when they made that remark it was a measured comment and something she meant to say. i don't think she could care less who liked it. >> what is holding the fed back from raising interest rates sooner. she said i thought i heard two things. number two, the labor market. it's good

janet yellen saying, this year, we will start to raise rates.denly, all the other pairs versus the dollar are starting to weaken. today, just off by 2/10 of 1%. the japanese yen is want to keep an eye out for, still keeping that level. interesting comments coming out of rbc earlier today. they were saying look loitering is intense at 123. as we are hearing, bnp paribas feeling that the bank of japan could surprise, us once again could add to stimulus,, could start focusing on bond yields rather than the inflation data. finally, we could start to see another jerk in terms of yen weakening, dollar strengthening. keep a night out for the japanese yen. meanwhile, the euro has been weakening, now just up about 3/10 of 1% this morning. we are looking at greece once again. they are very much and focused. it we've got a meeting in brussels, the creditors, and greek officials -- notably, greece is likely to hijack the agenda in dresden. we are getting the g-7 meeting. we've got officials from the biggest economies, germany france, the u.s., the ecb, imf,

federal reserve janet yellen had a hawkish tone. indicating inflation is moving forwards the fed's target. >> for this reason if the economy continues to improve as i expect i think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. to support taking this step though i will need to see continued improvement in labor market conditions and i will need to be reasonably confident that inflation will move back to 2% over the medium term. >> simon, it seems like the european central bank had been driving bond prices across the globe over most of this calendar year. is that focus going to shift back toward the fed as they start to raise rates? >> no we don't think so. we think that european influence is going to be very heavy. if you look at the message we're getting from the fed, there are two things clear. they are really keen to raise interest rates. they want to get off of zero as soon as they can. they will probably do tha

where we focus on innovation technology, and the future of business here it federal reserve chair janet yellen warns that equity market valuations are quite high right now, and there are potential dangers ahead. here is yellen speaking about the timing of a rate hike. janet yellen: we need to be attentive to the possibility that when the fed decides it is time to begin raising rates, these can move up and we could see a sharp jump in long-term rates. so we are trying to, as i have repeatedly said, communicate quickly about our monetary policies so we do not take markets by surprise. emily: she spoke of the institute for new economic thinking in washington. she's is on deals could see a sharp jump in the fed raises rates. the ecb has increased the cap on in emergency cash available to greek lenders. the limit was raised by $2.3 billion, according to people familiar with the decision to the ecb governing council is debating whether to tighten rules on further greek assistance as the greek bailout cost remain -- talks remain stalled. pharmaceuticals company buying another committee for a $.4 bill

the message for the market is this federal reserve chair janet yellen made a clear and direct statement on the one thing virtually all investors are focused on the timing and speed of rate hikes. central banks benchmark short-term rate which affects everything from mortgage rate to auto loans has been near zero since december 2008 and since they've been so low for so long a lot of anticipation aboutn liftoff might occur. yellin's comments come weeks before the next meeting and despite the concerns the economy might be slowing. steve leishman has the details. >> janet yellen saying today she believes the rate hike will be appropriate this year if the economy improves as she expects. >> i think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. to support taking this step though i will need to see continued improvement in labor market conditions and i will need to be reasonably confident that inflation will move back to 2% over the medium term. >> yellen was clear expectation

than janet yellen says rates are going to go up.me of the data, it is important to put that in the context of seasonality. some of the data we have seen can be blamed on the weather. when you look at underlying structural data in the labor market indicators, the most recent housing market data, or corporate earnings growth, all of those point to a very positive trend. point of view, they are still arguing for beginning the rate hike, fundamentally the economy is improving. markets may worry about these in the short-term, but that is the long-term trend we are focused on. look at the take a world's number two economy, china. we have equities rising. of course, weakness there. what is the long-term trend for china, in your view? china, surprisingly less of a long-term view. the economic view is one of a slowing economy. investors, especially equity market investors, we think it is a policy of reaction. there is quite a bit of room for policymakers to ease policy further, regardless of interest rates for liquidity measures. that is als

look at what janet yellen and other central bank counterparts are doing. they push interest rates down to all-time low levels in many cases they're at negative levels. neil: yeah, and it was an odd position to be in. i think the markets have gotten ahead of themselves. she created the environment, as did her predecessor, maybe precise reasons for what's happening now? >> exactly. look what happens when the bubble burst. when people figure out negative interest rates don't make sense to print a bond and buy the bond, that you're guaranteed to lose money on that may be why we are starting to see interest rates go up in europe and here in the united states. it could be the beginning of a bond bubble burst. and if that's the case then stock valuations are going to come down because interest rates are going to be going up, borrowing costs are going to go up. bond prices are going to come down it's going to hit the stock market. neil: i raise this with you, jim and feel compelled, to the wall of worry that we climb eventually that doesn't last, but there have be

manus: janet yellen is worried about china and greece.ung's about the unintended economic consequences if something bad happens greece. as an economist, even though small in gdb terms -- gdp terms what is it in terms of risk what does it rank for you? >> you hit the nail on the head. it is very small, with the ecb supporting the wider area, the impact him in terms of contagion should be limited. i would rank any worries about u.s. and china higher. at this point in time we do not have those worries, if they were to materialize, definitely those with be higher than greece. any uncertainty is not good. the fact that greece could lead to uncertainty would not be something good for other economies. caroline: we will be speaking about the u.k.. talk to us about the u.s.. we are seeing what janet yellen wants to be on the agenda. do you expect that? >> definitely. i think it has to be seen in the context that you have an employment rate of 5.5% the market is doing well. you are not at an emergency level that you are at right after the crisis. t

fed chair janet yellen is getting ready to speak about the health of the u.s.g market mover. we'll get more clues, maybe about the timing of future rate hikes. that's what we're watching out for. we're going to be carrying her speech live. >>> check out mid cap stocks, they're up 6%, outperforming their big cap rivals this is the sweet spot for investors as we gear up for rate hikes ahead. and john deere shares are up big on the back of the latest earnings, should you be getting in? a bull/bear debate coming up on that stock. >>> only one s&p stock has been up between memorial day and labor day every year for the past decade. the average return 20% over that period. dom chu, new 'do and all. i had to. >> you know, okay. so here we got, we asked all of you viewers to tweet in some of your guesses. we're heard the likes of intel, oughto zone, home depot. we've got a lot of the candidates possibly. let's take you through the clues. it has been up ten out of ten summer seasons, we'll define that per ken show as between memorial day and labor day. up 20% average. it

scarlet: they had some time to digest what janet yellen said and what stanley fischer said as well as money. mark: from the global resources of bloomberg news, it is a deal that cable's john malone had hoped for months ago. his company has agreed to buy time warner cable for $55 billion. time warner cable rejected charters offer last year and bid.with comcast's that deal fell apart last month. coming up, bloomberg's in-depth interview with thomas rutledge. the other ceo in this proposed merger might be getting a golden parachute from time warner cable's ceo. million ift up to 55 you is terminated within two years. -- he is terminated within two years. stanley fischer says the central bank is playing a waiting game when it comes to interest rates. ratesd if the fed raises to quickly, it would be harder to cut them if the economy slows down. phrase.ve another our processes are not date determined. they are data determined. wait and see what happens. we don't have to announce we're going to do it in september. if the economy is growing slowly, we'll wait. scarlet: he says putting too muc

what should fed chair janet yellen do and when should she do it? here on "closing bell" when we come right back. >>> welcome back. earnings moving this market today. we'll start with etsy down 19% after last night's disappointing report. lowe's moving to the downside at 4.5%. compare that with home depot. target, here's another tale of two companies. that's up 1% today on its earnings report. walmart had a tough session yesterday. >> told a different tale that's for sure. salesforce.com leads the charge after the bell tonight. dom chu back again with a preview of the names and numbers to watch for. >> the hits keep on coming. let's start with salesforce.com release. analysts estimating a profit of 14 cents a share, sales $1.5 billion. they are reportedly fielding possibly a takeover offer and analysts say that speculation has create the risk for the bulls heading into this particular earnings report. next up l brands earnings expected to come in at 60 cents a share, $.5 billion worth of revenue. analysts are concerned that aggressive promotions cou

tip into a much better world or we're going to find we get even lower growth, and we get what janet yellen and others are worried about, financial instability. >> rose: funding for "charlie rose" has been provided by: >> rose: additional funding provided by: >> and by bloomberg, a provider of multimedia news and information services worldwide. captioning sponsored by rose communications from our studios in new york city, this is charlie rose. >> rose: marco rubio the republican senator from florida announced his plans to run for president last month. he sits on the senate foreign relations committee and the intelligence committee. he outlined his foreign policy doctrine earlier today at the council on foreign relations. i spoke with him following his remarks. here's that conversation including some questions from members of the foreign relations council. in previous conversations with me, you have said that one problem said is that we're trying to fix 21st century problems with 20 cernry crds. yet all of the men you cited were of the 20th century. >> there are timeless truths. the sun stil