janet yellen: it is absolutely true. been listening to janet yellen yellen's testimony before the house financial services committee. froms answering questions commerce and david schweikert t -- congressman david schweikert. i am pimm fox. joining me is betty liu. michael mckee and police in a problem with it -- romowitz. lisa: where are all the other congressmemn? pimm: i know that there was an , ahange between keith republican from pennsylvania, and he was putting up a variety of charts that seem as though chair yellen pointed out were not for the right timeframe. we have received a discussion on what year-over-year means when talking about earnings or any other metric and he moved on to another slide. [laughter] he exited the room when his time expired. having said that, anything substantive that you have heard from yellen that stands out? lisa: no. she is getting her gold award for absolutely saying nothing. they are asking some of the questions and some of them are hitting out what the market is wondering. if they d

we are going to have more of janet yellen's testimony on capitol hill. you're watching bloomberg market day. ♪\ pimm: good morning. federalbeen following reserve chair janet yellin's testimony, the first of a 2-day testimony. she is speaking with lawmakers and saying she expects to raise rates as soon as september plus that it will remain dependent on the economy and the health of the economy. she has been answering questions related to dodd frank legislation, transparency at the federal reserve am a and now monetary policy, even one on predatory lending practices to minorities. responding to questions from maxine waters, democrat from california. we will continue listening to her testimony and response to questions but i want to look at helm markets are responded to the testimony. >> basically, the major indices are all hugging the flatline as speak. seen janet yellen the nasdaq is up the highest. the dow and the snp are up by about 2/10

tom: michael mckee with janet yellen this morning.g with us because that was our twitter question of the day. will janet yellen mentioned greece and china? the first answer -- yes. she will head to that global events are introducing too much uncertainty to hike rates. tom: that is one belief. [laughter] vonnie: second answer, ignoring an 800 pound gorilla what make it leave. china is great concern especially given bank exposure. tom: good at measuring the pulse of economics. vonnie: third and final answer if yellen mentions greece today she is more likely to quote olivia newton-john rather than tsipras. tom: i think there is a percentage of our audience who don't know olivia newton-john. brendan: how to handle that twitter question without singing which has been banned from the show? i will not that is for certain. brendan: the course of that chong -- song was better shape up. vonnie: i believe that you are watching greece all day today, tom. tom: let's do yours first on yellen. vonnie: we have data at 8:30 and janet yellen starting t

jonathan: today, full attention turns to washington dc where janet yellen will address u.s. akers. >> i will expect that it will be appropriate some point later to take the first step to raise the federal funds rate and normalize monetary policy. jonathan: that was yellen last friday. joining us now to shed some light, jen. we are eager to get to the bank of england. janet yellen, she is laying the groundwork for that first rate hike, she reconciled that with the message that we are data dependent. it is not supporting her right now. >> that is the point. the markets are not convinced the hike will come this year. the recovery may not look even. the market trading is not coming forward to match the idea of a rate hike in 2016, perhaps today's testimony might be an opportunity to hammer home the message. jonathan: the market rate cap seems more dovish. the fed has been wrong. who is wrong? the market or janet yellen? >> i think the economic growth prospects might be a bit optimistic. i think it is an interesting exercise. i think it is successful of yellen, for me that is what

fed is on track to raise interest rates this year and that is what janet yellen is going to tell congress one hour from now. remarks prepared for the testimony, yellen says the prospects are good for further improvement in the labor market and economy. you can watch her testimony on bloomberg television that starts at 10:00 eastern time. matt: we will hear from president obama today as well. he will hold a news conference on the nuclear agreement with iran. we will have live coverage at 1:00 p.m. eastern time. the president faces a fight with congress over the deal. the gaucher disease say the deal would prevent iran from building a nuclear weapon. hours after the announcement john baer called to -- john boehner called it unacceptable and fellow democrats want to take a closer look. >> i think preventing iran from becoming a nuclear weapon power is critically important for the safety of that region and for u.s. national security interests, so i hope we will get closer to that goal but i went to a jerk -- reserve judgment until i am at the chance to review the agreement. matt: congress has

we of janet yellen making headlines. yvonne: let's get started with the federal reserve. janet yellen noted progress at home on inflation and to the growth overseas could pick up more quickly than expected. she said the fed is likely to raise rates this year. reported that it is not all about timing. lawmakers also faced criticism. yellen cited the fed's recent efforts to improve transparency, including press operatives and the publication of forecasts lightbank officials. on bank regulation, yellen defended the feds record saying she disputed suggestions from republicans of the central bank would do better to follow a formula for setting rates. in japan, the country's lower house will vote this afternoon on the deflation to expand the role of the military. minister's drive was approved by a security committee. toanese took to the streets oppose the move checking antiwar slogans. major progress -- protests in japan are quite unusual. even so, the bills are set to pass the lower house. they are needed to counter china, according to lawmakers. toshiba is a bond risk restore

yogesh: i don't think you can ignore janet yellen.ou cannot go in to the bond market with the possibility of rate hikes looming. when it comes to global equities that is the alternative to cash. that is what is bringing the markets high. we have a weaker euro and lower oil prices. during a minor headwind, it is slow going. this is a good place to be right now. jonathan: as a look at euro sterling dropping is that a better trade for me? if i want to trade sterling strength? chris: i think so, yes. it is probably the fed, but you mentioned lincoln later today. i think we think it will be uk data that drives the strength. so, i'm sure they are not welcoming sterling strength. everyone wants a weak currency to sell goods into the euro zone. if so, i think the u.k. economy is about 20% larger than it was in 2008. the bank of england's at the top of the pack. they will have the tolerate some sterling strength. jonathan: can the tolerate the stronger pound? chris: and this -- unless things go ground of crazy. there will be an adventure -- eb

let's go live to janet yellen. shis

spieth. >> we break down janet yellen's testimony and how the markets reacted. that's coming up in 2. >>> welcome to worldwide exchange. i'm carolyn roth. >> i'm wilfred frost. here's your headlines from around the world. >> the dollar powers higher after the fed is preparing for liftd off this year. no matter what happens overseas. >> the decision to raise rates will say no the economy done stink. we're close to where we want to be. >> flames of fury in athens as the country's lawmakers vote for the bailout but the german finance minister says a grexit still may be better as they prepare for how the ecb will support the nation's banks. >> a number of banks raise their price targets after it exceeds expectations on new subscribers in the second quarter but income falls on expansion costs. >> how rich can he get? donald trump's fortune climbed to $10 billion. they can't deal with a man of that welthd. >> straight today at a and what we've got for you is the june euro zone inflation data. it was confirmed at 0.2% on the year. that was in line with expectations. th

janet yellen speaks at 12:30.a rate hike coming sooner or later than investors expect. >>> rotten apple -- why one analyst thinks the tech darling has further to fall. but first a big celebration on wall street. soccer fans cheering the u.s. women's team as they show off their world cup trophy and investors are cheering the big market rally. take a look at market gains, more than 1%. it's as if greece and china never happened. does this make sense to you, jim lebenthal? >> this makes sense for today, i don't know if it will make sense for next week. up big one day, down big the next day. the reason why, there's too much out there greece may be solved. i'm a little suspicious. we've still got china, it's not just the stock market. it's the rate of growth of their economy. we've got a federal reserve that's looking at the first interest rate hike in over, in about a decade. these are all things that are going to keep the markets very volatile. think it's time to pick your spots, have some dry powder. we picked our s

mike: we are going to hear from janet yellen but are we going to hear janet yellen?ring, why did the markets key pricing at a doferent interest rate, why we have a tape or tantrum, and why are people worried about what might happen when the government raises rates? hardmmunication is very and i think it is particularly very hard when you are trying to make commitments in the future but you really want to be a discretionary polisario maker -- policymaker who can do things in real time. i think our communications efforts, i would require -- i would call them mixed success or mixed failure. as we go back in history and get further away from this. , i think that is what we will conclude. i would prefer the fed did less forward guidance in talking about with their policy strategies are and how they are going to react to data, rather than making pre-commitments to things they are not prepared to commit to. out: we are about to find whether she is taking his advice. betty: we already know what she is going to say because we have some of the prepared remarks. i want to bring

janet yellen said the economy is improving and they expect growth to strengthen. but some lawmakers took that opportunity to turn up the heat. >> the federal reserve chair janet yellen said they are on track to raise interest rates this year after more than six years at near zero. >> if the economy evolves as we expect economic conditions likely would make it appropriate at some point this year to raise the federal funds rate. >> but she said labor markets are not at maximum ask the inflation is above the 2% target. and the central bank is closely watching the volatile financial conditions inside china. >> were we to judge that these did create substantial risks or changing the outlook in a notable way then a change in the outlook is something that would affect monetary policy. >> but interest rate timing took a back seat to house republican concerns for more oversight and accountability over the central bank. there were calls for a more trans parent instructor interest rate policy and several lawmakers over the use of the turnover material regarding the investiga

mortgage rates have risen to the highest level since october, and janet yellen maybe be one reason. the average rate for a fixed 30 year low was just below 4.1%. yesterday chair yellen said the fed is likely to raise interest rates this year. industry experts say speculation about her rate hike is helping to boost mortgage rates. tonight -- janet yellen returns to the hill today for a second day of questioning. follow this line that starts at 2:30 new york time. betty: ebay selling the enterprise unit to a group led by primera. the price tag 920 $5 million. the online auctioneer also reported second order sales that beat wall street estimates. on the use the breakup from transaction business paypal. invested -- investors are eager for indications how will will perform on its own when even starts trading as a separate company monday. ebay has struggled with sluggish sales after a major data breach that -- last year. any nominations are out. a big leaderones" so far. this score is nomination for outstanding drama series. a sign that tv is becoming more diverse, henson for empire and fe

dollar strength is something janet yellen is very wary of.ould eat into u.s. >> manufacturing and exports. i'm going to split. have a great rest of the day. you have a great wednesday as well. see you tomorrow. olivia: don't go away. still ahead, we will head back to the conference where betty liu will be live with the chairman of hatch beauty. ♪ ?wk??????????????óóó???????Ñ?Ñ?? olivia: welcome back to the bloomberg market day. let's take a quick look at where the markets are trading at this hour. he was equities moving higher as hope emerges that we may actually get a deal over greek debt. this comes after alexis tsipras sent a light a letter that late-night letter to creditors asking for a two-year extension any third bailout. you are seeing equities trade higher around the world. gains and financials and materials. energy the only sector in the red. we do have breaking news -- crude inventories. julie: we are seeing another bill -- build in crude inventories. inventories up 392,000 barrels. gasoline inventories down about 1.8 million barre

janet yellen a bank of england governor signal the end of low interest rates, giving clues as to when the central banks could lift off. google gains in late trading. investors welcomed that. the search giant is now famed for its new projects. ♪ welcome to the countdown. i'm anna edwards. we're a lot of news around greece. we get to that in just a moment. we heard the ecb yesterday that they were increasing liquidity. a lots about the me speak to the eu commissioner. that is an exclusive conversation and it takes place on this program. used to be in charge of latvia. then later we there's thinking that his vision for london's infrastructure later, we will be joined by a host of ceos. those companies release their numbers for the most recent quarter. the president of the swedish telecom giant joins us in just under an hour's time for his first conversation. those numbers are just breaking now. they're keeping their outlook unchanged. coming in just under estimates. let's get back to greece. finance ministers authorized a bridge loan to greece. that is according to the irish prime minist

i am sure janet yellen's testimony was the main event.he was up the, -- upbeat, fending off attacks from republicans that say the bank needs stronger oversight. but she set the rate hikes are coming. investors have gone with tears -- six years with nearly zero borrowing power. >> our economy is in a much better state. low interest rates have facilitated it. a decision on our part to raise will say we are close to where we want to the. -- be. we think the economy needs higher rates. su: there you have it. she is saying rate hikes are coming. they will be gradual. sooner, rather than later. this will be good for the economy. yellen said the policy will remain highly accommodative for quite some time. she was in the hot seat for two hours. she got questioning from a republican committee member over document in a 2012 policy deliberation. yellen said the fed intends to cooperate, but not quite grand a -- right now. but the main message was that they were going to pursue rates, follow a gradual path later on. to do that, she indicated they may

janet yellen is suggesting that america is doing better. michael mckee is senior vice president of reality for all of "bloomberg surveillance." he is with us this morning. and jeffrey davis. michael what do i need to look for at 2:00 p.m. this afternoon? aren't i bored stiff? michael: hillary clinton was running for president last time in 2008. brendan: when is she not running for president? michael: for six years we have been saying that what they say is more important than they do come and this may be the last meeting at which we do that. everyone is looking at changes to the statement to see clues as to when they might rate -- when they might raise interest rates. there is no news conference, no dot plot no economic forecast. tom: i was watching "elizabeth" last night, that magnificent kate blanchette movie from 20 years ago. janet yellen has a palace court. what are you watching today e? michael: you could parse the statement. look for what they might tweak when they talk about economic growth, is the economy getting stronger, and will

programming note, janet yellen is speaking at 12:30. we will speak -- we will see her speech live on bloomberg. matt: we have a deal approaching in greece. alex tsipras has handed in a package of pension cuts, tax increases, a sickly and austerity package from the one he rejected and walked out on previously. >> it was a vote to give tsipras the authority to help decide greece's future. it is almost immaterial. the europeans to dictate the terms and give the greeks the opportunity. have a good weekend, matt is back in a minute. matt: welcome back to the bloomberg market day. let's get straight to this morning's top headlines. wholesale inventories rose in may by the largest amount in six months. the strong increase may be evidence that businesses are more confident about the future. wholesalers reported their sales by a modest amount. the department of justice is preparing cases against former deutsche bank employees according to two people familiar with the situation. charges could come before the end of the year. the u.s. is said to b

what is the flavor of janet yellen's uncertainty.s not sure how much slack there is in the labor market. she is therefore not sure what inflation is going to do. and she is not sure what the impact of europe and china are on the united states. she has thoughts on all these topics and one of the things we're trying to get across is that in some cases she is right to be cautious. in other cases such as the labor market, we think maybe she is grasping at straws to prove there is more slack than there is. ubs's view on the labor market is that we are tight now, and that is why we are seeing things like the eci pick up. that will translate into inflation by the end of the year. brendan: we just had sri-kumar on. he said there is lots of slack. he still sees plenty of room. what leads you to believe that there -- that they are running out of slack? drew: there are a number of structural reasons that can be occurring. the number one that immediately leaps to mind is the affordable care act. that 30th hour of employment becomes very expensiv

we will see if that is how janet yellen season two. -- sees it too. a bloomberg reporter saw a transaction on his these a card n greek out in droppe currency. biggest slip. good to have you back. joe: i'm exhausted. alix: thank you for emily: google fights back. we debate the future of the economy. ♪ emily: i am emily chang. this is "bloomberg west". two of the most influential venture capitalists say silicon valley is taking on too much risks. developed thes tiniest and most powerful computer chip in the world. is it a game

janet yellen will begin her testimony in just a few moments.hat to you live as soon as she begins to speak. in the meantime markets relatively stable. s&p is going for the fifth straight gain of the year. up to 2110 and oil down to $52 and change. >> we have the official testimony from her. our economics report joins us with that and more. everybody wants to know if she can give more clarity on interest rates moving forward. is there more clarity to give or does she risk misleading people? >> if the fed is data depend dant i'm not sure how much more yellen can give here. obviously we'd love to have more clarity on the timing. maybe a question about her forecast for how the employment rate will improve. maybe a little more clarity on what confidence of inflation moving back means to her. and i think your discussion in the last hour about this idea that maybe there could be a bit of an up side surprise in foreign economic growth is worth probing in the sense that she sees something there about the turn around in europe and other emerging markets

the big fight will be over the level of debt relief that might be granted to them and janet yellen giving her semiannual testimony to congress beginning on wednesday. she'll be grilled on interest rates. other central bankers will be busy as well. the european central bank and bank of japan will both be meeting. no one is expecting changes in interest rates, but everyone will want to know what mario draghi has to say about a deal with greece. finally, earning season begins with jpmorgan and bank of america reporting. get set for another wild week. for "nightly business report," at the new york stock exchange. >> the big focus this week was in china with the u.s. market very closely following the ups and downs of the shanghai composite. overnight that index rose by 4.5%. that added to yesterday's gains, following the extraordinary measures the government took to stem the market's step losses over the past month. >>> now to greece where the country's debt crisis may be nearing a resolution. later tonight parliament is expected to vote on a reform package that's much closer to what its credi

we will see if that is how janet yellen sees it too. a bloomberg reporter saw a transaction on his these a card carried out in greek currency. biggest slip. drachma eq. good to have you back. joe: i'm exhausted. alix: thank you for watching "what'd you miss?". joe: >> from our studios in new york city, this is "charlie rose." charlie: he's been the artistic and musical conduct your and he became the musical director. he conducted the london symphony orchestra. in 2000, he had a vision for a new opera house which, after several technical set backs, finally opened on his 60th earth day in 2013

janet yellen is still on track to raise interest rates this fall. nuclear accord with iran means another million barrels of oil hitting the markets. how quickly the islamic republic can get back online once sanctions end. texas governor greg abbott is here. businesses like toyota are moving their headquarters to the lone star state. brendan: good morning, i am brendan greeley. pimm: i am pimm fox. we are 90 minutes into the trading day. stocks, a little bit of buying today compared to yesterday. the s&p 500 gained about .3%. maybe people are digesting all of the details of what is going on in iran and china. brendan: who knows what the story is? have a lot of conflicting bits of information. brendan: you can say that these things have been much wilder on iran and grace, where it means more for the economy. the u.s., everyone looking at interest rates. let's take a look at some of our top headlines at this hour. after true years of difficult diplomacy, there is a deal on iran's nuclear program. negotiators into the end announced an agreement this mor

tim: the fomc minutes and janet yellen. savita: earnings. we need to see topline growth to feel better about this recovery. joe: i can't think about anything until the referendum on sunday. alix: i'm thinking about china. the shanghai composite under 4000. cpi coming out midweek. joe: thank you very much. alix: coming up, we will speak to a member of the european parliament ahead of the referendum in greece. she might have some strong words. ♪ alix: i'm alix steel. joe: i'm joe weisenthal. alix: another democrat is making the bid for the white house. jim webb announcing his campaign today. he formed an exploratory committee in november. he's a former marine and decorated vietnam veteran and had a brief stint as secretary of the navy in 1987. joe: nascar once you to leave your confederate flag at home. they are asking fans to refrain from displaying the stars and bars. in a statement, the facility say they want welcoming environment in all of sports. alix: it just keeps coming, the confederate flag backlash. those are your top stories. joe: g

the other market focus would be janet yellen.ag last friday night talking about the possibility of a rate hike this year. what do people say? tom: michael mckee will join us to break this down. it is important. in the last few days there has been very soggy data within the american economy. it is enough to take a firm like macroeconomic advisers, which looks at gdp every day and they have dampened their second and third quarter reviews. though not been enough to sway janet yellen that a q&a to a more fractious house versus the diplomacy in the senate could make for interesting moments later in the morning. manus: that lady is getting better versed in communication. as always, we will be watching the show from the other side here in europe. coming up, we are talking about driverless cars on the road in 10 years. we look at the company planning to make that happen. ♪ manus: welcome back to "the pulse," live on bloomberg television. one israeli company is booming in the driverless car business. mobileeye. our bloomberg editor went f

janet yellen not running as a republican candidate at the last response. chair yellen greeted on the hill? bernie sanders is not there. is thaere a new dialogue? phil: it is tension filled. i think this is a progression of what we have seen over the last five or six years. you think about the house committee chaired by jeb hensarling, a critic of the fed. 60 plus lawmakers and quite a few of whom are not well versed in these issues sometimes -- it is not -- i know, that is shocking. it is not the easiest place for janet yellen to have a discussion. she works to deflect and defend and that is what you saw yesterday. brendan: lawmakers focused on oversight. did anyone ask a question that had anything to do with the financial markets? phil: there was a little bit a democrat from alabama at one point delved into monetary policy. lawmakers look at this more on their oversight role. that is what you are going to see today in the senate and she speaks at 2:30 not her usual 10:00 a.m. you are going to have democrats people like elizabeth warren and sherrod brown,

the dollar jumped when janet yellen started speaking. pimm: thank you very much. let's continue listening into testimony from federal reserve askinganet yellen who is -- answering a question directed by carolyn maloney about international financial conditions and the effect they would have on u.s. monetary policy. >> if the fed waits longer than currently forecast to start raising rates, will that mean a steeper path of rate increases? longer, itit certainly could mean that when we begin to raise rates, we might have to do so more rapidly. an advantage to beginning arlier is that we might have more gradual path of rate increases. as i indicated, the entire path of rate increases does matter. there are many reasons why the committee judges and appropriate path of rate increases. it's likely to be gradual. at zeroat we have been for over six years, it has been a long time since we have raised rates. doing so when we finally begin in the deliberate and gradual way, looking at what the impact of those decisions are on the economy, strikes me as a prudent approach to ta

impact and onto janet yellen -- first, the market impact, and if mario draghi is doing more and a bonds are going lower, it puts pressure on u.s. interest rates. and that if there is an economic spillover effect, it gives janet yellen and the fed more reason to delay the long anticipated liftoff. if you added all of that to a possible strong jobs number tomorrow, our own economist is forecasting 320,000, way above consensus. that makes it, in his argument, harder for janet yellen to raise rates because the dollar strength would affect the economy negatively. think the dollar strength argument is harder to make now just because of how much dollar strength we have. we have priced in a lot of that differential of european growth versus u.s. growth which created the strength of the dollar versus the euro. the marginal jobs number isn't really going to lead to another 25% increase in the dollar. yes, we think the dollar will go stronger, but not significantly from here, so that it really changes the story for the economics to change janet yellen -- matt: if goldman sachs, which is admittedl

what is the update on how janet yellen will adapt to "it is pretty darned good out there"? michelle: we think we are at a point in the economy where we can very slowly adjust interest rates. i think we have to focus on what is the progress of the labor market? we are at a 5.3% unemployment rate, adding 220,000 jobs. even if you are in the camp that it is lower, that is the thing. it is kind of an abstract concept. but even if it is lower, you are making such significant progress that there is not that much more you can fall. tom: 4.9% is dramatically different for 1600 pennsylvania avenue than 5.0%. brendan: we are waiting on wages and we have started to see some movement. major employers are making changes in their wage policy. michelle: what janet yellen and the fed have said is that wages are not a precondition for rate hikes, but they are an important symptom of inflation. that is important as well. we are starting to see some evidence of it. brendan: when we moved september, december, is that going to be a bump of adjustment? who does not know this is going to happen?

beat mark carney may have janet yellen to the punch. olivia: they think they want to do it until next may. our funds are pricing them in for september. but the story was that carney could be the first to raise rates. how times have changed. top headlines -- home prices in 20 big cities rose at a slower pace in may. was upe-shiller index 4.9% from a year ago, less than predicted. the slower rate of appreciation may make it easier for first time home buyers to get into the market. honeywell is spending $5 billion on a british maker of gas, electric, and water meters. the ceo says the deal will create new platforms for more acquisitions. pimm: investors are not discouraged by bp's lowest quarterly earnings in at least a decade. the price of bp shares is up

do you believe fed chair janet yellen or do you believe jeff gunlock? >> i was in brian's camp and really listened to commentary and feel it's almost an obligation to otherwise you lose confidence. i'm in the camp they will move in 15. >> i agree with you if for no other reason janet can do it. she's able to effect that change. i think she is backing herself into a corner somewhat. >> yes. >> and she's not dumb. she's doing that, i mean, this is a calculate discussion, i think, and so maybe she feels like, you know, she can change the direction a tiny bit and get it started without the world going nuts. >> let's say she does do it in 2015. is that the right move in your view? >> would have been three years ago, entirely different conversation. they control the front end of the curve. they don't control from ten years out. given the fact that greece seemingly is off the radar screen, china nobody seems to care about. tlt should have traded through 115 on the downside meaning rates should have gone higher the opposite happened. >> all right. still ahead,

does he feel like he has to catch up with janet yellen. i think they want to start preparing markets. they have not been extremely strong but also they have not been consistent. so they want to give the signal and stopped hiking. this is why the market reacted to their come mens. >> but the problem is investors don't know what to do with mr. carney's guidance because sometimes he's dovish and the next day hawkish. investors have been wrong footed by what he's been saying. i think it's really tough to follow what he's saying. >> that's actually true. i mean quite often we have been surprised with his guidance. but the important thing is to just focus on the data and when you look at the data then this is consistent with tightening. the fed will go first. it will follow soon after. >> so with the fed what we're expect as good a one and done move. they're going to be moving soon but then very slowly. would the same apply to the boe? >> it's very likely and this is the key message from carney this week. there's no incentive to go very fast. th

what do you think about that and what janet yellen is saying?hink you're going to have higher rates is what's going to happen. neil: okay, well, that answers that. the next item, this whole thing with opm and the compromised records at 22 million workers, those who apply for federal jobs. does it concern you? get back to the idea we're getting this stuff in the hands of the wrong guys? >> i don't know. that's not my area. let's talk about oil and gas. neil: okay, there was a point to this, because you scared me there, you answered that very rudely. my point was -- [ laughter ]. neil: my point was, in all seriousness, you think we should not leave ourselves exposed to opec, you worry about the way the nature of the world is getting. so many hackings and stuff going on, doesn't that speak to the oil independence, gas independence to which you opine. what do you think? >> well, that's what i've been after for ten years. neil: that's what i meant, if you listened to me, that's what i meant, you slapped me down in the beginning. >> okay, okay. but we

the s and p when janet yellen released, and nine points, up 16, nearly doubling. janet yellen says we are seeing economic activity expanding and as they put it, solid job gains. the gains you see with your money and your portfolio hold in this final hour? got to watch your money on count down. a massive data breach, united airlines, america's second biggest carrier was indeed the target of hackers who made off with personal data of millions of you flyers with secret travel manifests. united hackers linked to chinese hackers kissel personal information for millions of anthem healthcare members and from the u.s. government human-resources database. the biggest government reach in history and not just chinese hackers creating a very weakened national defense. fox business exclusively reporting twitter is now the favorite recruiting tool of the islamic state. the fbi director wants twitter to pay a larger role in monitoring terrorist activity. will it? at this hour of the social media signing the not. no decent user growth to speak of. the cybersecurity corp. the fron

and fed chair janet yellen addresses congress in the two-day testimony beginning tomorrow. >> just look at the retail sales numbers, look around the world. and tell me that you feel fully confident that we have turned the corner and we ought to raise rates. i don't think it's there. >> reporter: it's hard to find bright spots in the data. spending at service stations was up, but just slightly, reflecting the rise in gas prices. the electronics and appliances category saw it go up 1% as they diverted towards gadgets and investing in their homes rather than on apparel and accessories. the rest of the results are so so. showing consumers are continually to allocate their hard earned cash. >> i have cut back mostly on nonessentials. like clothing, bicycles, things like that. >> travel you know shopping but still we're still spending only necessary on like food. >> reporter: in economists think the cautious consumer is here to stay. >> consumers are not going to go back to the old days. and what's embodied in the fed's forecast is things are about to get back to normal. that now that house p

vonnie: janet yellen has told us to ignore the dot plot.ey have come into closer agreement, the fed has scaled back his criticism and is recognizing it to be an important signaling tool. lakshman: the fed was off on the unemployment rate estimates, but they were also way off on gdp. and on how fast we would grow. and on the cyclical rebound. we have often heard about the second half rebound. and here we are kind of ready for it. i am afraid it is going to disappoint again. you are going to get the slower growth again. if you actually got anywhere near 100 basis points of fed rate hikes to over 1% or something, think about what that is going to do to your term structure. you are high risk of parts of it inverting. carl: i am very skeptical of the second half rebound because if the fed is raising rates and europe is not, and you can -- and europe continues to ease the dollar will continue to strengthen. i am bearish on the second half of the economy because economist are impacting -- are -- lakshman: i think the dollar and the currencies are

you still dead flat and a big word list by janet yellen same things look about right for rate increasellas yellen. netflix split seven for a blend from a $700 to $100 down 1% to 9938. we have a new video of el chapo's escape. he walked into the shower, bends down it goes through a hole in the floor of the shower gets down into its tunnel and leaves. can you imagine this? elizabeth nick donald has more. >> it is stunning. he went through a mile-long tunnel that was well ventilated and then he ended up in a house that was extensively being constructed about a mile away. workers were working 10 hours a day moving dirt out of the tunnel to build it. they had a motorcycle on track in the tunnel to get the dirt out and up above ground to build the tunnel to get el chapo now. stuart: they got into a house especially built for him to escape into. liz: it looks like they are working on construction of a house. it was to get this guy out. he's the most notorious drug kingpin in this part of the hemisphere is not the world. he's got cops politicians reporters and their family. you buy marijuana h

janet yellen finished speaking not so long ago. we take a look at how equities are performing, it's been a bit of a relief rally all day long. europe kept its biggest two-day gain since 2011. chinese stocks extended their gains as well. the shanghai up 11% in two days. we are seeing a risk on markets. treasury booms are lower, the europe gaining because optimism ahead of the greek parliament voting on the proposal by alexis tsipras, the same as what he rejected from creditors. matt: even more austerity in the proposal he put forth to the parliaments, and it was roundly rejected just for five days ago. it will be interesting to see. scarlet: now the referendum behind him. of greece voted note austerity. he's now going to put austerity in front of parliament asked them to vote on it. he's going to ask parliament to vote contrary to what the people of the country voted. scarlet: although he has a mandate. that's his interpretation. matt: he can do exactly what they don't want to do. some of the other top stories. scarlet: janet yellen

janet yellen saying that she thinks the fed is actually closer to raising interest rates.ant to give you the sound we have at 12:36. take a listen. >> maybe we don't have that sound. well, best-laid plans, ladies and gentlemen, what she said i'm going to call it up directly here and i'll read it to you. she said decision on our part to raise rates will say no, the economy doesn't stink, we're close to where we want to be and where we now think the economy cannot only tolerate, but needs higher rates. so not only tolerate, there's the headline right there, not only can tolerate, but needs higher rates and close to where we want to be. it sous to me a lot, scott, like a federal reserve chair that wants to raise rates. >> because the risks as janet yellen herself laid out, the longer you wait, the bigger risk you have of having to do things too fast down the road. >> and that's important to bring up. i did get a commentary from an analyst at isi, and he said he hears yellen in this testimony leaning early. leaning september. i think it's a close call. i think the federal rese

that does not sound like janet yellen.for his attendance and as a guest on "bloomberg surveillance." brendan: tom keene was out with the word silly this morning. tom: i miss to that. until i get to my fourth cup of coffee. let's look at an agenda right now. i will look at gdp, and this is really important and says so much about how we do things different in america. a nouriel roubini question, chinese gdp calculations. no one does that in the real world of american economic there is a massive respect, brendan, for the effort, the sweat to try to do these numbers right. they are imperfect, but this is america doing what it does best, which is saying here are the facts as we know it, let's try to improve. this is a good day for american economics. vonnie: i will be glued to the highway bill. i really am. [laughter] tom: a bad day for american politics. brendan: this is fun. vonnie: the senate is voting on the highway bill at noon, both on a short-term patch. brendan: i am taking a look at "businessweek." karen weiss has a gr

janet yellen yellen will not even be there.t needs to happen between now and then that makes you change your mind. >> it is around the labor market. we talked a long time about the spare capacity. the employment cost index is also out next week and that has been one of their favorite measures. the only place we are -- place we are seeing potential inflation is the labor market. they are trying to determine what that looks like. there are a lot of other things going on, china, greece and so on. not even oblique references. it is interesting that the fed feels pretty confident at the moment and in the economy that their job is to assure that inflation expectations do not run ahead. jon: what surprise a lot of people is that is five straight meetings to janet yellen has done a great job of keeping the ship and no one doing anything silly. at this point, the central bias of the federal reserve is to be risky enough -- does that change at all next year? what is that mean for me? -- what does that mean for me? >> the dissent will sta

♪ alix: janet yellen remained positive on future economic growth and its impact on the labor market. many of the factors underlying u.s. act to be our solid -- activity are solid. i anticipate that employment will continue to expand and the unemployment rate will decline further. .lix: joining us for more your biggest takeaway. i am trying to determine if she is [inaudible] and her speech held to the point notaising rates but it was leaning toward september more so than december. janet yellen is still in the one hike cap. are the hurt close allies now in the two-hike camp. we will have to see with -- what happens. marketoes the treasury reflect a one and done sarah -- scenario? lisa: what she said was more hawkish than what they were expecting. you saw 30 year treasury yields rise. of two day rise through most 2011 last i checked, the two-year has increased the yield of the past two days the most since february. you are looking at a market that is rising in a greater chance of potential rate hike at and perhaps greater growth. biggest takeaway was she said the macro economic developme

it was interesting janet yellen on this issue did say for the first tomb that she would be open to a modest increase on the threshold of sifi-designated banks, banks too big to fail. yellen is open to that. when it comes to interest rates, she favors a prudent and gradual approach to raising interest rates. reiterating this idea that perhaps the first interest rate increase could come sooner. that doesn't mean it's going to happen rapidly higher in a stair step after that. >> clearly, that is sara eisen, not kelly evans. she is on vacation. i'm bill griffeth. welcome to the end of the first hour of "closing bell." bob pisani stepping in. we had a modest rally today. noose dakota may close in record territory here. >> looks like it's going to do that. we've been advancing on the major indices. germany up 9% australia up 9%. s&p up about 4%. all in the last week. greece looking better. china stabilizing. that's important. at the same time the global growth story is not looking good. energy stocks are looking terrible. material stocks are looking terrible. big global names like dover, em