why is this so important to janet yellen. and when i asked you during the commercial break, we are not sure. jim: pressed for it when she was president of the san francisco federal reserve bank. this number is tacked up on the wall as if it were handed down from on high. 1965, there was not one year in which the rate of inflation reached 2%. 70 basis points. .7%. so now days that would be the grounds for kinds of a panic, right? deflation, 1930s. so what is it that changed? for one thing we are more encumbered more debt. they think we need inflation to help us pay our debts. but we never say that. it's the intellectual dishonesty of this monetary policy that most rankles me. maria: we are out of the throes of the recession, the financial upset of almost 10 years ago. but the economy is not doing all that great. look at gdp. 1.5% on average. tax receipts down. do you think there is a risk things slow down as the fed accelerates this? >> yes, i think there is a big risk. janet yellen in her testimony this past week and the docu

we have janet yellen's testimony. how asian markets are seeing the fed the strategy. is is bloomberg. ♪ up next, julia coronado joining us as well on the shift in yellen's tone. ♪ ,"onne: this is "daybreak asia i am yvonne man in hong kong. betty: i am betty liu in new york. let's break down janet yellen's testimony with julia coronado. hays stayed with us. first and obvious question, what did you think about the testimony? i'm agree that she was more dovish, leaving the door open for a softer interpretation of the inflation trends. betty: soft enough we will not see a rate hike this year? julia: i do not think we will see a rate hike in september. we can wait and see whether the inflation turns higher. kathleen: let's get to the balance sheet. i raised the possibility, people worry -- wondering if the fed will normalize this year. i have a chart for you. you can follow along at home. this overlays the portfolio. two big part of the mortgage-backed securities, $1.8 trillion. and the treasuries, another $2.3 million. security gets you up to $4.5 million. am i right in s

fed chair janet yellen giving a note of caution. su keenan has more. >> techhead a rebound. llen rally, day to coup. -- day two. it was the fifth day of gains for the nasdaq. this one served the most in eight months. target giving hope that they could have a come back. there is a lot of pressure on these retailers. most.el up the that has a lot to do with trump saying he will stop the dumping of steel. what was the take away of the yellen talk? , andwindow of opportunity bankers ask on their -- act on their words. it means carry on. the cost of carry is interesting to note. this is the index, that white line. it has been coming back as we head to 2017. the emerging-market carry trade index has been popular in this environment. now is the time, is what strategists are saying. betty: what are they saying about the last two days of trade and the story in relation to the testimony? su: one thing that got attention, is yellen's talk on a sitting on cash. we go into the bloomberg one chartime, and this is a about capex. we have seen bullish outlets for corporate spending. they have

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. >> we have been in an economy with low interest rates for some time. asset valuations are somewhat rich if you use some traditional metrics like earnings ratios. but i wouldn't try to comment on appropriate valuations and those ratios. maria: that was senate federal reserve chairman janet yellen saying low interest rates led to rich asset valuations. >> clearly sustained low inflation implies less uncertainty ab

lots more to discuss on janet yellen's upcoming testimony.next guest is watching for any additional details on balance sheet reduction. we have more with state street global markets in a moment. plus, cautious on stocks, but planning to him by more unlisted assets. this is bloomberg. ♪ ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. inhaad: i am rishaad salamat hong kong. investors looking for some clarification over the balance andt reduction rate increases when janet yellen testifies. joining us now is the global macro strategist at state street global markets. are we going to get anything new? >> i don't think so. we have the june fomc minutes. there was only one interesting data, the labor market data. yes, labor market numbers are .ood we have seen payroll numbers around 180,000. the bad part is inflationary growth transition area? even wage growth has been a weak story. what we will see is how the fed and janet yellen will manage this dual mandate. a lot of people will focus on that first. the second thing is the b

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. i did active duty 11 years.my in july of '98. and two

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. this is my new best friend, esther. she might look like any normal, playful puppy but esther's being raised to become a canine companions for independence assistance dog for a person with a disability. to get there, she needs lots of loving care and attention, plenty of exercise and good eating habits so that she can live a long and healthy life for her future family. visit cci.org or call 1-800-572-bark. raise

janet yellen introducing perhaps a little more uncertainty.ing let's buy emerging-market assets. joe: it is not just emerging markets. elsewhere people are bullish basically on everything. here's a look at some fundamental data out of europe. we've had a bunch of people here saying how they are bullish on year. it's about that -- on europe. this white line is industrial reduction for the eurozone growing 4.0% year-over-year. 2011 was the last time we got this kind of growth in the eurozone. france is blue. italy growing, italy is sort of famous in recent years for being a country the economy is unimpressive, even it is growing nicely. story,damental eurozone everything aside, the economy is growing. julia: great to see the bank earnings as well. earnings.cited about year bank earnings another reason to get excited. julia: i can't tell if you are being sarcastic. the market close his next. -- is next. ayear bank earnings another reason to get sea of green here. more to come. stay with us. this is bloomberg. ♪ ♪ >> everything is up. the dow clos

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. liberty mutual stood with us when a fire destroyed the living room. we were able to replace everything in it. liberty did what? liberty mutual paid to replace all of our property that was damaged. and we didn't have to touch our savings. yeah, our insurance won't do that. well, there goes my boat. you can leave worry behind when liberty stands with you™. liberty stands with you™. liberty mutual insurance. so new

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. here's something we bet you didn't know. nearly half of all cancers can be prevented. that's right -- half. nearly fifty percent. mostly by making small, everyday changes in your diet and controlling your weight. walking more, eating less. and eating foods that help you and your family to seriously reduce the risk of cancer. and of course, by not smoking. visit the cancer prevention, together we can website and

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. ♪ your body was made for better things than rheumatoid arthritis. before you and your rheumatologist move to another treatment, ask if xeljanz is right for you. xeljanz is a small pill for adults with moderate to severe ra for whom methotrexate did not work well. xeljanz can reduce joint pain and swelling in as little as two weeks, and help stop further joint damage. xeljanz can lower your ability to fight infec

at this point the irony could be janet yellen could be most likely successor to janet yellen. maria: she doesn't have to step down. >> the president i think has indicated there is an uneasy peace between the two. i don't know if they are b.f.f.s. but a truce has been declared and they are kind of on the same page now. so i think that would be good for market continuity. i think you have to have someone -- obviously she is very well qualified. she is a very dovish person. maria: more "wall street week" right after this. >> announcer: fed chair janet yellen has investors in a tissy. but does another fed chair agree this time? alan greenspan joins "wall street week" next. one laugh, and hello sensitive bladder. so i tried always discreet. i didn't think protection this thin could work. but the super absorbent core turns liquid to gel. snap! so it's out of sight... ...and out of mind. always discreet. for bladder leaks. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformatio

was declaring only a few days before janet yellen declare that markets will never ever crash again of course the italian banks as we've been. warning about here in kaiser par for quite a few years the italian banks are getting to crumble and stock markets buoyed by italian banks rescue but critics say it has killed the banking union critics are saying deal to save italian banks has ruined credibility of banking union proponents of the deal claim that it was necessary to protect the prosperous then neato region and preventing damaging italy's nascent economic rebound so yes seven hundred billion euros the italian taxpayer is on the hook for bailing out these banks and you notice what they say that created the people who are endorsing this bailout they're saying that well benito area so prosperous these are where the rich people live so we should protect them well you know first of all saying that won't be another financial crash in our lifetimes i mean she believes she is correct she believes that she controls the market that's the north or tarion regime for you they this is what she b

what we have learned from janet yellen's testimony. that's next.s is bloomberg. ♪ ♪ rishaad: you are back with bloomberg markets. i am rishaad salamat in hong kong. haidi: a quick check of the latest business flash headlines. amazon was not the only winner has prime day drew many deal hungry shoppers to the web. ebay saw its best sales stayed by anticipating amazon's big moment and launching an advertising blitz. using the slogan, did you check ebay? the ceo has boosted the marketing budget to freshen its image and change the view that it is an online rubbish sale. facebook trying to turn its oculus rift a fee our kids into a mass-market phenomenon and is planning a cheaper vr device. headsets it is cheap and high in rigs such as the oculus at $400. the new headset is to sell around $200. haidi: black rock pushing the corporate world on diversity and said it supported eight of nine shareholder proposals in the second quarter. it also voted against nominating committees for failing to address issues. blackrock had supported only two bank out of 98 d

cheryl: investors are wait to go her from fed chair janet yellen, u.s.s index pointing slightly higher right now. lauren: investors in europe are also waiting for testimony. cheryl: in asia mostly lower there. nikkei's half a percent. lauren: big move in oil prices overnight. look at them popping 2% this as saudi arabia will taking more supply off of the table. cheryl: here is the question for you, is facebook killing the messenger, they want to put ads on the world's most popular app. lauren: amazon to break records for amazon prime day sales, we will have the list of what's hot. cheryl: out west, more than 7,000 firefighters are battling wild fires, no rain in sight, we will have the details for you. lauren: good morning, 5:31 a.m. in new york. wednesday july 12th, i'm lauren simonetti. cheryl: good morning, everybody, i'm cheryl casone, we have a lot to get to today. lauren: big story, fox news exclusive donald trump, jr. explaining in detail meeting with russian lawyer on hannity last night and also released chain of e-mail. trump, jr. said that musi

we have to talk about gary cohn and janet yellen.ill this be asked exquisitely and how will it affect it? >> it has been asked repeatedly and she has continually deferred her opinions on that matter. this is probably her last humphrey hawkins testimony as so chair in early february, now is as good time as ever to finally deliver her intentions, whether she wants to stay on or not. david: how much would you assume gary cohn -- >> he said he would the a low interest rate guy. i think he would be of a similar ilk, trying to support the administration by keeping an accommodative stance of monetary policy. janet yellen has taken a slight turn into a more hawkish direction as of late. i don't think there would be a huge disruption. yellen.bigger dove then interesting. never thought that before. but this was lael brainard speaking yesterday. the fed funds rate is likely to remain close to zero in the medium-term. if that is the case, we would not have much additional work to do on moving to a neutral stance. how pervasive is that kind of co

gary cohn is leading candidate to replace janet yellen. source yous say that the job is kohn oig's if he decides he wants it he would be the first federal dhar in four decades who isn't an economist cohn is also mentioned as a potential future white house chief of staff clearly the man getting good traction within the white house, but this would definitely ruffle some feathers within the fed because of the lack of hardcore economist back be grugrounbackgd he is seen previous ofly being a democrat more than a republican. >> let's stick with the fed because janet yellen is headed to capitol hill today to testify before the house financial services ghitsicommittee. and we'll get the fed's latest read on the economy when the central bank releases its monthly beige book report at 2:00 p.m >>> christine lagarde doesn't agree with some xhechbcomments yellen made. >> i wouldn't exclude that there may one day be another crisis. where it will come from, what form it takes, how international and broad based it will be is to be seen. and typically the

you will have janet yellen testimony in the puss. >> you will be looking for inflation and yellen's testimony. on friday.t number we have cpi coming out. problem is the details has been weak. one orat you only seen two areas of strength. disconcertingre for the feds. they're betting a lot of all this unemployment that they've about is going to translate into inflation before they seen it. they're getting the markets ready for a hike. we don't have evidence of that. alix: temporary. times are we going to hear that? exactly. david: peter, look at the fundamentals. it really is inflation. what are the fundamentals that will drive inflation. it's been getting softer here a little bit. at the same time, we're employing more people and we more dollars to spend. >> you're right. outink there's other voices there that should have waited until you see the inflation indeed. if you look carefully with the market is pricing, the markets clearly, thery medium term inflation picture is bleak. point, we need to see vast changes. changing, bond yields are going up,ing on thing that's moving is real interest

so was janet yellen.losing at record high after the fed chair told congress essential bank plan to continue to raise interest rates gradually, let's get more from adam shapiro. adam: fed expect that is they will begin unwinding the balance sheet later this year. this was all part of the system that janet yellen delivered before members of the house of representatives. she's going to do the same thing later this morning before the senate. a part of semiannual testimony that the fed does if economic outlook. they are also concerned that inflation she says is not growing quite at the pace they would like so they are going to keep interest rates low e, they will raise them gradually but the key for investors is when will they start unwinding the balance sheet and here is what the fed chair said. >> if the economy continues to evolve in line with expect expectations, it's something that we should do this year and to my mind i would say relatively soon. the exact timing of this i don't think matters a great dea

let's talk about janet yellen and her impact to drive markets.xt us, -- set to step a little bit higher. that is how semiconductor will play into the chipmakers. you have job movementsm and -- and stocks are set for a high opening. you have global equities and yellen fueled the investor confidence. global equities, the longest winning streak since the middle of april. the chinese export numbers as well. exports of 11.3% in june from 8.7% in may. anna: a couple of things to watch, we put up details where we are in the market. a couple of headlines coming through. the owner of the unicode chain -- uniqlo chain. in at ¥22.9t coming billion below the estimate of 28.3 billion. keep an eye on the retail space. and an eye on cars. we are not over all of that story yet. we will keep an eye on that. going to a frisky opening. let's look at the bond markets. this is the center of gravity in terms of the softness coming from the fed. we are -- there is a strangle in the bond market, flat opening flat.e bund, french oat's macron meets merkel, macron meetingn

janet yellen is going to be pressed on where calibration of response is and politico has reported thathey are unlikely to nominate yellen for another term. have something for the bank of england officials pressing for a rate hike and a reduction in the stimulus at 4.6%. muted?e growth remained that is a question from markets. >> let's talk to the new stock market darling. traders are using options. relative to the torish ones, while the calls put -- and this isng by about positioning and are the gains related to the globe will rally in financials? why does this stand out? >> you can make that argument, if you look at the financial weeks,er the last few there has been investor interest get a space and we may higher interest rate for borrowing cost in the coming months. that was signaled by central they give more ability to boost the margins. and is a pig business contributes revenue with interest rates links to monetary this and it isof a macro reason. what about the coalescing around the mark gets? have the earnings coming out at the end of the month and there is a lot of people are st

. >> janet yellen says stay where you are on the interest rates at the moment. the fed decided to keep them unchanged. it is going to stay in the 1.1.25 percent range. the economy is going with solid job gains but inflation has declined and price trends would need to be monitored carefully. let's bring our financial soothsayer. no press conference. the fed did make a statement. how do you read it? >> we had two small but important changes. if we look at interest rates, earlier in may, the federal reserve was saying inflation is running below 2%. now they are saying it is running below 2%. they are not using the phrase somewhat. they are not really satisfied with how inflation runs in that mean -- may mean the door is open to only one more interest rate, possibly in december. that is what markets are betting on now. we heard earlier the federal reserve was saying later this year the they will wind down the balance sheet. now they are saying relatively soon. that could start soon, possibly at the next fed meeting in september. >> from janet yellen's take to her ow

resist the potential crisis >>> let's move from one powerful woman to another all eyes today are on janet yellen from the fed to hear her testimony on capitol hill. and we have the fixed income director from fidelity joining us to discuss it what are you expecting to hear out of chairman yellen today >> i think it's unlikely that she will move too far away from the latest commentaries and statements that we've heard already. the tapering is still there. we think that they will announce tapering in september. and that is fine for the markets so far if you look at treasuries, they have been selling off a little bit, but yields are in that typical range. there hasn't been that much of a shock certainly and we've not seen the tapering tantrum that matter feared. >> they made an effort to sign post very clearly what they will do is the market reflecting what the fed's message is or does the market have different expectations despite the clean sign posting >> the markets have taken any sign or negotiation of tapering quite well for two reasons first of all, there is demand for yield and that is suppor

tonight federal reserve chair janet yellen completes her second day of testimony on capitol hill we'll see how markets reacted to her views on the state of inflation and the fed's beige book is out my guess danielle de martino boost says it's the poorest showing in a long time and she tells us why she thinks so and it's a perfect storm in canada the governor of the bank of canada says the economy is walking a tight rope so proceed with caution stand by the bus start right now. before the senate banking committee today federal reserve chair janet yellen said she believes the risks concerning inflation are two sided stressing that price gains could both accelerate and slowdown that's appears to be an effort to adjust the views in financial markets yesterday in her comments before the house financial services committee yellen discussed the possibility that a recent slowdown in inflation could persist longer than the fed expects that triggered a big market rally with the dow jones industrial average hitting a record high investors saw the remarks as a signal that the fed which has raised i

janet yellen's testimony to congress is on everyone's mind.e are kicking off earnings seasons for the second quarter as well. singapore, taiwan, and malaysia are coming on as well. sophie: the start of tuesday in asia, opening around half a percent higher, perhaps tracking the rebound in tech shares on wall street. we have shares in wellington as rising,kiwi bonds although the kiwi dollar is falling following flat car spending for june. gains in tokyo as well as in seoul. 8/1000 swinging up about of a percent. keep an eye out for what's happening with time -- japanese tech yields. -- japanese 10 year yields. at the currency space, we are waiting on the philippines latest data, but we v thee currency rising about a 10th of a percent, but it's around the key $50 level, treating at the worst level in 2017. -- trading at the worst level in 2017. we have a focus in china, the , extending losses for a fourth day, but keeping level.o the global banks are turning more hawkish for the yuan. it is now at the highest since march. you can tell from the wh

marginally higher if you're looking at equity markets ahead of janet yellen's report to congress tomorrowentral bank on track this year. trillion dollar balance sheet. listening -- i'm trying to understand what i will hear from janet on. what the central bank is trying to tell you right now, we have really moved to a next -- a new stage. we are exiting the last 10 years because we do not know the president us -- anything. now we are starting to understand, reprice fundamentals. what messages are she going to communicate? >> the potential to be quite important. generally i have no idea but i am trying to work out what seems to be a new paradigm to me in terms of central banks. exactly what is it that is too.ed, nothing in spite of the short-term breakdown, in spite of the term of the fact that recently but we have seen is falling unemployment still, price rises are entirely absent. and none of them have an executive event. they have to get that model time to apply. short-term it's in inflation should be looks through. another explanation is they have woken up to their responsibilities with

east coast janet yellen headed to the hollywood testifying before the house finance minister servicestors watching comments on interest rates as well as fed winding down its 4 1/2 trillion-dollar balance sheet, she speaks to the senate finance committee thursday following latest developments donald trump, jr.,'s e-mail release he sat down with sean hannity about his meeting with russian lawyer explaining actions. >> in retrospect, i will probably would have done things a little differently. >> do you tell your father anything about this? >> it was such a nothing -- there was nothing to tell. >> the president defending his son this morning, his reaction coming up, markets this morning a look higher futures in openg of tring dow industrials set to open up 30 points nasdaq up 12 are in european gains across the board pretty much around highs in european indices as you see ft 100 up 3/4 of a percent cac quarante up almost 1% dax in germany up two-thirds of one percent in asia overnight mostly color exception of hong kong, tesla gears up for the release of the model 3 vehicle the company r

right now top story this morning janet yellen heading to capitol hill this morning, yellen delivers semiannual testimony to congress today and tomorrow and lawmakers to grill for 4 and a half trillion dollar sheet. jpmorgan ceo jamie diamon weighed in, more disruptive than people think for the markets. joining us right now to weigh in house financial services committee member congressman david of tennessee and congressman, it's good to see you, thank you so much for joining us. >> good morning, maria, thank you very much. maria: what are you looking forward to solicit from janet yellen? >> i want to hear from housing reform, interest rate hikes and also in terms of -- of lending money, community banks, being able to lend money more freely, where the economy is going. now, i have been able to hear her in one prior session earlier this year, i heard that chair say that we were at full employment or nearful employment, i expect her to probably say that again today, i would take issue with that because i see in my district a lot of part of my district had been stagnant or close to snag -- stagnant

we are seeing a rally, albeit a muted one, on day 2 of janet yellen's testimony. dow rising to a record again to .ransports also rallying s&p and nasdaq, not much changed, but something of an upward bias. on the bloomberg, you have a mixed picture. financials are bouncing after yesterday's declines to technology continuing what has been an impressive rally. the fifth straight day we have seen the nasdaq higher. have not seen a rally like that that long all year, if you look at the magnitude of the five-day gain, and the individual large-cap components rallying. telecom stocks are down half percent today. when i mentioned the financials and the bounceback, it has also to do with what is going on with bonds. the 10-year yield the -- we saw the yield fall yesterday. 's testimony this morning, and cpi data tomorrow -- the fed's preferred inflation indicator, we don't get that until later. in the absence of that, what we are getting is cpi tomorrow morning, and the traders will be paying a lot of attention to that as we see a little bit of a bounce in yields. we will s

donald trump said he may real point janet yellen to a second term. an interview with the wall street journal, he indicated that white house aide, gary cohn is a top contender for the position. yellen has declined to comment about her future at the fed beyond stating her intention to serve out her current term expires next year. u.s. senate has rejected mitch mcconnell's health care proposal that came at the start of several days of debate with no clear idea of what obamacare replacement plan will ultimately be asked to pass. the house rebuked president donald trump whose campaign is being investigating by -- this is am from bank should be flexible and considering the u.s. and europe by normalizing monetary policy. the bank of japan may leave itself without room for policy responses in the event of another financial crisis. policymakersy said need to continue monetary stimulus as soon as possible. dollar desks lower-than-expected gains in .onsumer at the same time, the bank of australia chief philip lowe reiterated that the move to remove stimulus has

back to you. >> meantime fed chair janet yellen struck a surprisingly dovish tone in her testimony before congress. she told lawmakers that the central bank could still adjust its policy if the recent undershoot in inflation continues. but yellen added that the u.s. economy warranted a gradual rise in rates the fed chair said 2% inflation is still the target and the fomc is monitoring the situation closely. >> it's premature to reach the judgment that we're not on the path to 2% inflation over the next couple of years as we indicate in our statement, it's something that we're watching closely considering the risks around the inflation outlook. we need to make some adjustment as long as our forecast is that we are headed back to 2% about that. >> she was also asked about the health of the u.s. economy and how it will impact the path and timing of rate normalization >> the committee continues to expect that the evolution of the economy will warrant gradual increases in the federal funds rate over time to chaefr and ma achieve and maintain maximum employment and stable prices that expectatio

we are looking at janet yellen, one part of that pair. mario draghi, the other half. single currency risen too far too fast? that is next. this is bloomberg. ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. so new touch screens... and biometrics. in 574 branches. all done by... yesterday. ♪ ♪ banks aren't just undergoing a face lift. they're undergoing a transformation. a data fueled, security driven shift in applications and customer experience. which is why comcast business delivers consistent network performance and speed across all your locations. hello, mr. deets. every branch running like headquarters. that's how you outmaneuver. ♪ matt: an american in paris. trump meets macron in paris today ahead of bastille day tomorrow. will there be fireworks? downw

janet yellen what may be her final report to congress.in cirilli is on capitol hill with republican senator david perdue of georgia. -- d kevin: we are here with senator david perdue. you saw the new health care bill. do you like it? involve.ontinues to i am hopeful we will get motion to proceed next week. we will get the cbo scores hopefully monday, and move on to this bill next week. this roomask you for for error. we have seen comments from senator rand paul saying he is not on board. perfection is difficult to achieve, and that's why we have been working so hard. we have a crisis on our hands. obamacare is collapsing after six or seven years. information the senator from montana has been asking for for months. the latest information they can give us his august 2014. the irs find 8 million people in this country because they could not sign up for insurance under obamacare. 85% of those 8 million people make less than $50,000, and half make less than $25,000. of thethere are portions majority leader's bill that would keep some of the ta

coming up, janet yellen her second day of testimony.resident of alongside angela merkel and several headlines coming out ahead of that news conference and coming out with a plan. germany and france agreeing the called.architecture is riding sod france laterlliance little bit it will be france in the united states. from paris and new york, you're watching bloomberg tv. >> the market action as follows, futures closing in at a record high yesterday. a 23rd new record. even looking at the action on the s&p 500. bond market,in the yields now higher. a decent bid came in following day one. it day to takes place on d.c.. the euro showing a little bit of strength now. dollar, a weaker story. >> and other thing, the bill is -- his proposal they said to repeal taxes on the wealthy. we are back with steve ratner. i think he leaves in place a couple of big taxes which will leave in place $30 billion. is this moving towards something that is more acceptable to the american people? >> first i think the question is if it is acceptable to the senate. g

we are looking at the two the fed, to janet yellen.to the bank of canada with that anticipated rate hike. i thought i would show you what has been happening with canadian two-year yields versus the u.s. that yield in canada has been ramping higher in comparison on those expectations and the boc;s boc's hawkish tone. finally, talking about oil, wti above$45 a barrel, brent $48. these bouncing back after some of the bearish positioning in about a year. mark: thank you. as markets await testimony from janet yellen, with corporate earnings season getting into full swing, let's talk about how investors should be positioned. with us still, james barty from merrill lynch, james bevan of ccla investment management. james, i know you love talking about earnings. james bevan, how is the earnings season? >> i'm really optimistic. to me, the earnings season is why one can be bullish. i expect decent earnings this year and next year. that allows me to conclude that the s&p 500 is still cheap. mark: you've got to disagree, james. >> sadly, no. i thi

really the week is all about that janet yellen testimony.well, and that is essentially enough to shift the dial if we get some alteration to language coming from fed policymakers. it really continues to be a story of bonds selling off and equities just grinding higher. what about this warning from singapore's sovereign wealth fund, what are they saying? reporter: this is really interesting. this is a massive fund. the comments echo a lot of what we have been hearing and what has been a very big debate and financial markets in the first half of this year. that is all around the fact that , are investors to complacent? are they underpricing risk? they are saying that complacency is too high. people need to bring down the expectations for returns. they need to expect volatility to pick up at some point. and of course, this all comes at a time where stocks are at record highs. gauges of volatility in the bond and equity markets are at or near multi-decade lows. meanwhile, political uncertainty is incredibly high. a lot of indexes of economic unc

things off gained 0.4%. 1220 the price of gold >> and yesterday a clear indication of how when janet yellen speak, wall street listens. and yellen does head back to capitol hill today, she will testify before the senate banking committee at 10:00 a.m. eastern. yellen appeared before a house panel yesterday striking a dutchish tone about future rate hikes. >> most of my com leagues or at least the median anticipated that one further increase in the federal funds rate would likely be appropriate this year but as i say, we constantly watch the economy, the evolution of inflation in the labor market and we'll make decisions on the basis of our evaluation of that information. >> also on the agenda today, we'll hear from chicago fed president charles evans and fed governor and look for weekly jobless claim, producer price index and the federal budget and delta air lines reports results before the bell. >>> president trump back in europe today lessthan a week after taenkd tattending the g-2. he is meeting of course with french president emmanuel macron the two leaders will hold a joint news confer

janet yellen starts her monetary policy report on wednesday. weightay is where we get states out of the u.k.. donald trump meets emmanuel macron and attends bastille celebration. lots to think about, all caps in the united states dominating right now. we are joined on set. are we going to learn anything this week on the fed? how does janet yellen learn about reflation or the lack of it? guest: that's the big challenge. and that has been her biggest challenge her in her tenure. on-the-job side, things are going fine. but the wages component from friday's data was the disappointment. she needs to provide a little more clarity on what the feds position is on this because the idea that this is a transitory problem has been pushed back on by investors who have pared back there called for the number of rate rises this year and next. she really needs to pin this down and speak to investors about what the fed inflation is and what it means for monetary policy. what is the latest trump story ? we're waiting to price in some aussie updraft out of the whi