the first is what jay powell said. if you look at his speech, neither the word terrorist or or trade made it into his speech. really off the table for their consideration and came .cross as devilishly hawkish the intention to slowly raise rates. that is probably more important than what is going on with the china trade. what do you make of this move by the pboc in the past couple days? the pboc in the past couple days? do you think it is enough to stem what we have seen with reutimann be as well -- the ?enminbi as well > >> it is not a trade war. -- it is overbearing still overbearing. we saw the people's bank of china make certain moves to coincide with certain kickoffs from the united states. to be honest, if we are thinking about the renminbi be on this as iseans to boost trade, that still a risk, where you could see weakness. ramy: picking up on the countdown that we had here, it is getting real based on what you said. where are you looking at? what we want to look out is going on already, it will give us an idea o

jay powell says the u.s.conomy is strengthening substantially but could the president's trade policy for would off course? a report from jackson hole coming up. investors are talking about income capital. what it means for business. let's get a check on the averages. we have seen the nasdaq at a record today. it is just off as high. s&p 500 up more than .5% higher. the dollar index dropped after fed chair jay powell's speech. 95.13. as for treasuries, we saw a little movement at the front end of the curve. -- 10-year it is below 20 basis points and staying there. we will continue to keep an eye for the rest of the week's trading. canada taking notes from the art of the deal. the prime minister says he will not settle for a bad nafta deal. trudeau was encouraged by the u.s. and mexico but said he would only sign a good deal for canadians. and mexico the u.s. will continue in washington through next week. canada has set out negotiations the last several weeks. at the officeic of the u.s. trade representative in

five at 5:00 president trump slamming the federal receive saying he's not thrilled f thrilled at jay powell for raising rates. >>> the epa rolling back major environmental regulations on coal plants. >>> microsoft out with a big warning about russian hackers ahead of the november election. >>> and beating the street our series continues you'll hear from one fund manager crushing the competition thanks to his big bets on streaming video, tax returns and energy drinks. it's tuesday morning, august 21st "worldwide exchange" begins right now. ♪ >>> good morning welcome from wherever in the world you may be watching. good morning i'm brian sullivan it's another big green on the screen kind of day nearly everything we track closely just for you in the morning is higher today. not a lot but rising nonetheless. dow futures up 48 points the market looks to make it seven up weeks out of the past eight. long way to go, but still we're on the right track tomorrow may be the unofficial celebration to mark the longest bull market ever for the s&p 500. a lot of people talk about the dates, but it's been a

jay powell, trade, venezuela. of course would he be pardoning anybody that of course has been charged and that happened last 24 hours. joining me, bring in fox news contributors, jason chaffetz, doug schoen, cio for kingsview asset management scott martin. get to all the things we talked about. scott, i will go out on a limb be. i wanted to hear what you said about the criticism of jay powell fed chair. he gave the reuters interview earlier this week. he criticized what powell was doing. they haven't talked, or met since powell took position of fed chair. i found that fascinating. >> i do too. there could be some set-up here. there could be some interplay that we don't know of yet, as far as cheryl, maybe the president trying to set up the fed for what, listen, is inevitably going to be an economic slowdown. we're in the longest bull market we've seen in history. there is likely going to be a fall at some point, right, based on timing of everything. so maybe the president is trying to set up the fed to say, hey, i

jessica: president trump has said to have complained that they chairman jay powell has not been the policymakercted. the fed has height five time since the president took office, including twice this year. he criticized powell saying he was not thrilled with rate increases. blackrock says it saw significant second-quarter slowdown in china's economy after analyzing a wide range of data. the fund managers cam -- cios told bloomberg the pullback was more visible in alternative data dan the government's official pmi rating. send a trade dispute has played on sentiment but the dead enough shows stabilization. but maybe the conclusion here is that overall fundamentals seem to be not bad. slowing down a bit, but not that bad. for domestic chinese companies in the second quarter or how global companies think about china. jessica: the yuan strengthen for a third day in a row, rising to on thehest in a week -- back of the weakening dollar. its recent events has trimmed it slump since mid-june to around 6.6%. that's on science policy are seeking to limit outflows in offshore liquidity is hiding. last ofa

i see no sign of that from jay powell so far. luke: no, it does not seem likely.be we will get a little bit of a chat about what they expect to happen with wage markets in the u.s. and why they are not really picking up, and why we are not getting much of an impact from that. if i was a fed chair, i would have that chat next week. jonathan: i have offered the ecb job up. kevin giddis, your thoughts of what is going on with the balance sheet, a lot of people laser focused on that, asking the question of whether they might pause balance sheet runoff. any reason to believe they will? what is the appropriate level of the balance sheet anyway? kevin: i do not think they are going to stop or pause the normal runoff for the balance sheet. they've been working on this for the last 14 to 16 months. you are probably one third of the way of where you should be when you think about where the balance sheet is supposed to end up as. i think they will continue down that path. there is no reason not to do that. the fed has been awfully quiet in general this week, so i do not know

jessica: president trump is said to fed chairman dave powell -- that fed chairman jay powell hasn't beenolicy maker he is expected. he made the remarks at a fundraiser. the fed has hiked five times since the president took office, including twice this year. he criticized powell saying he was not thrilled with rate increases. plannedng trade wars for the coming years. beijing slapped a tariff on american employees. that's bringing prices down and compelling farmers to lower harvest. the bank says that could mean a fall production of 7% over the next four years. the council disagrees with that view. strengthen -- yuan strengthened for the third day back of an the weakening dollar. the yuan's recent advance follows a slump of 6.6%. policymakers are seeking to limit outflows as liquidity tightens. sentiment toward corporate bonds has nosedived. of fund managers says a proportion of those with 20%ish outlooks has gone to from 63%. ofrs are at 63 percent respondents, more than double the number in july. there may be trouble after a recent five-week fizzling in the credit market. global news 24

he also commented on the chairman jay powell, trump did.sive than he would have hoped in raising rates. copper prices hanging above $6,000. david: tj maxx just came out as you were talking. $1.77.s per share of up 2%. they took the full year earnings per share and guidance of. they had good news out of tj maxx as you are speaking. -- guidance up. julie: they have been a perennial high flyer in retail. here is the interesting situation. macy's, kohl's, rallying big this year, both of which selling off after earnings. year, close tos record yesterday, up 35% year to date. still up premarket because of the big beat. kohl's is a sharp contrast. the second quarter, earnings beating estimates but the stock is falling in premarket trading. perhaps expectations were running even higher. david: a quick review suggests they were up across the board. julie: tjx. david: they also took their full-year forecast up, second-quarter net sales beat highest estimates. they got every single one of them green. right now, premarket, almost 5%. we areese reports,

we are waiting for jay powell to speak at jackson hole. there is an added political dimension and flavor to what is going on in wyoming. to flag what is going on in the price of a barrel of crude because we are up by .8% this morning. , first weekly gain in two weeks. a host of factors suggesting slightly tighter supply, whether it is u.s. sanctions on iran that are pending. all of that adding up to a fairly positive week for the oil price. we are putting in the australian dollar of ours because based on our headlines, we have been vertical shift within the liberal party in australia. the continuity candidate beating off the right-wing challenge. by .5llar bounces up percent or so. it was up by .6% earlier and down by 1.4% in yesterday's session. we are ready for jackson hole. nejra: we are already waiting for that speech from jerome powell. with that in mind, i wanted to show the curve, dead simple. we continue to the relentless flattening. 20 basis points, hitting that for the first time since 2007. those. it in fresh cycle i wanted to b

jay powell was in a suit and tie, which is a little bit out of costume.ee john williams wearing no tie. right, he isre happy that it is over with, that he did not cause any waves. vonnie: it is the kansas city fed as the symposium that posts this every year -- hosts this every year. typically because it is the only thing that happens federal reserve wise in the summer, it can be a venue for news breaking or a shift in policy or something like that, but jay powell clearly trying to keep things pretty gradual and unchanged. ,e saw a reaction in the curve a slight flattening and we are under 20 basis points again. michael: a couple of the fed the bank presidents we talked to say it is worth watching that they are not taking it is a strong signal because there are other things influencing the long end of the curve. the fed pushes short rates up and the rates rise. has been aing combination of a search for safe assets by investors overseas and a feeling that long-term process free -- prospects for u.s. growth are not that strong. it has pushed out the long end

we have comments from president trump around jay powell. the big picture, moving equities is all around trade talk, and jackson hole, looking forward to that at the end of this week. a lot of big picture stuff to talk about. the all-star market is down by under 1%. .hat has been weighed down critical bringing down its global growth estimates as a result. let's talk about what president trump had to say. this is the bloomberg dollar index down by 0.3%. reacting toollar what president trump had to say. he has complained to wealthy republican donors that jay powell is not the easy money fed chair that president trump had expected apparently. on the other side of that, euro strength, we put the euro in 1.1529 is where we trade. trump says europe and china manipulates their currencies. coming up on the u.s. trading session, things look flat. as we had to the united states, s&p closed 15 points away from a record. tomorrowe celebrating the longest bull market in history? the ceo, wenzie will hear more from him. we played a clip in the headline, a

up a messy week for emerging markets gripped by bearish sentiments, and looking ahead to chair jay powellpeaking in jackson hole, wyoming. we begin with the u.s. decoupling from the rest of the world. >> the u.s. is enjoying exceptionally strong growth. >> it's part of the divergence, one of the themes for markets in the global economy. >> the u.s. is delivering twice the earnings growth of the rest of the world. >> for now, the linkage is entrenched. >> if companies keep delivering, it is hard to make the argument against equity. >> the u.s. is continuing to break out in fundamental and technical basis. >> these companies are executing and if the prices were going up for no other reason than the story sounds sexy, that would be a different matter. >> when you look at the u.s. economy and what the trump administration has done in terms of providing fiscal stimulus, it is going to continue. >> the u.s. has a policy led growth spirit for the rest of the world, has been a combination of hawkish. >> i think the pace is more than sufficient. jonathan: joining me around the table are my guests.

steve liesman, what did chairman ja jay powell >> fed chairman jay powell will say that gradual ratepriate, and there does not seem to be a serious risk of overheating in the economy powell says this despite going on to say the u.s. economy has strengthened substantially most people who want jobs can find them and that he expects strong economic performance to continue if that does happen, in other words if the forecast of the federal reserve at this point comes to fruition, gradual issuance of the funds rate will be appropriate he says the fed will do whatever it takes in quotes, if the inflation becomes unanchored but he goes on to say, there is no clear sign that inflation is accelerating above the fed's 2% target he does see some risks out there to the economy let me go over what those are. he says real wages have grown slowly, the economic mobility has declined and the federal deficit's on an unsustainable path and he did say that it doesn't look like monetary policy will change any of the conditions out there. with with a history of getting certain critical things wrong, like t

investors seeking more clarity from jay powell at the jackson hole symposium.t will also be something where he can take -- get his take on emerging markets. kathleen hays is in wyoming. she gets around, certainly. set the stage a jackson hole, kathleen. kathleen: one thing we learned his confirmation of what markets expect, fed watchers expect, september rate hike is all but a done deal. another rate hike would be appropriate soon when it comes making people conclude the federal reserve is headed that direction unless something really dramatic happens. jay powell, chairman of the federal reserve in that role, the fed chair typically kicks off the official opening of the sessions on friday morning in jackson hole. the kansas city fed in posey him and often uses the speech to send asap -- a policy signal. will his word reinforce what we got from the minutes and make more sense of the neutral rate and whether or not you should stop when you get to neutral. how much will these tensions and emerging markets play into discussions being held where you are? kathleen: w

. >> bulls in charge, the rally that started with jay powell's statements and jackson hole. the nasdaq leading the way, technology up .7% with s&p 500 and the nasdaq putting in a set of all-time highs. the rally continues. four up days in a row. days in ap for seven row. 11 sectors trading

the fomc meeting, and chairman jay powell will speak at the central bank and gathering in wyoming for yet still with me in new york city is georgia gun goncalves,rge kevin giddis, and the luke hickmore from aberdeen asset management. things seem to be downplayed a jackson hole, white? >> it is more of an academic exercise is not really worried about a major change in the fed except for being entrenched and policy right now. it would take a lot for them to change it. speculation that you would see some acknowledgment of the em vol, but we think that is wrong. we are waiting and seeing. jon: the ideas of the federal reserve is going to respond anytime soon to international situations, are they? i see no sign of that. no, it does not seem likely. maybe we will get a little bit they expectout what

jay powell has been pretty clear. he was clear in may. does the ecb have a role to play? to what extent do you think the situation threatens the ecb's ability to roll forward with its plan? >> at some point, that will be the problem. if it does affect the banking system, they clearly can't withdraw more liquidity. when the banking system in europe is under stress. that would be -- that just would not happen. i think at some point they have to be having discussions already. with the banks in europe to try to make sure that they -- their funding lines are open and i would assume they are reaching out to turkey to try to come up with some sort of interim solution to stabilize the situation. >> that is the problem. kathleen, do you think there is something on the radar for the ecb here that changes expected policy moves in the coming months? >> yes. i think she is exactly right.

make any progress, chairman of the federal reserve jay powell is set to speak at 10:00 a.m. here is what kansas city federal reserve esther georgia told us about implications of tariffs. >> if this looks like this will continue, persistence to discussions, if it leaves businesses feeling uncertain, that could flow through holding back on investment or less investment. that's something that i want to watch carefully to see if that will show up in data at some point. maria: joining us to talk more about that jon hilsenrath, jon, good to see you this morning, isn't that the crux of this, the fact that it's uncertainty that will stall investment plans, stall companies from putting things in place that keep those economic growth engines turning? >> well, you know, maria, we have factors pulling in both directions on investment right now, on the one hand, we have a lot of uncertainty about tariffs which certainly could affect investment decision but on the other hand we have much lower coarpt tax rates which is giving companies incentive to invest.

. ♪ fed chairman jay powell has given his first jackson hole address, indicating he will stay the coursen rate hikes. "there is good reason to expect the strong economic performance will continue. i believe the gradual process of normalization remains appropriate." joining us from jackson hole is michael mckee and in bloomberg's genus malik and peter coy -- genus malik and peter coy. you are in jackson hole. what was different? did anything surprise you? michael: he talked more about the economy than some people thought he might, but did not say anything new. they are calling this the goldilocks speech. he presented it as a set of questions. if the economy is strengthening, why isn't the fed tightening more aggressively to avoid it overheating? if unemployment continues to fall in inflation does not rise, why is the fed tightening as aggressively as it is because they do not need to? he said basically it is a matter of risk management. you want to steer down the middle and avoid the economy overheating but avoid putting the brakes on it as well. he said the gradual path of rate increases

>> i think jay powell is a terrific chairman fed. i've known him, i know people he worked with, and i've listened to what he's had to say, so i love the fact jay powell is chairman of the fed, and he will do the right thing, he gets a lot more figures in than i do. i may get them a little faster on some things than the fed they may work their way through, but he will see it, and he'll do what, in his judgment, is best for the american economy over time there isn't any question about that, and maybe he'll make mistakes i know i'll make mistakes, but he knows what his job is and he'll do it. >> the president also tweeted about another initiative, and i just wondered what you thought about it he said after speaking with indra nui, she was the one who talked with him he'd like to do something that helps american business, stop reporting every quarter, maybe do it on a six-month basis. what do you think of that idea you focused on long-termism. >> jamie diamond and i came out a while back, but i always focused on the idea, "a" i like to r

federal reserve chairman jay powell gave a major speech daniele de martino booth the c.e.o.of quillan teligent is standing by to consider what he says and what it means for the economy and the future plus there's timely trade news alex one high limits joins us from toronto to discuss the details and we look at the technology sector in light of the recent ruling by the european union on antitrust decisions with andre barlow attorney of andro barlow mazhar plus there's even more news and more products being impacted by month santos. grief r t correspondent sarah when one says the joins us all this and much more but first let's get to a few stories topping today's financial and business headlines saudi arabia is leading a report today as a saudi for sovereign wealth fund is reportedly seeking eleven billion bucks in bank loans in the second big story from saudi this week after oil giant saudi aramco one of the largest and most profitable companies on the planet either canceled or postponed plans for the hotly anticipated initial public offering reuters reported the i.p.o. had b

yvonne: what do i to hear most from jay powell on friday?rds to where he thinks. think if you have this escalation of the tariff disputes between the u.s. and china, there is a really risk -- a real risk that it will come off. the u.s. economy is very dependent. how it will -- how will impact the u.s. economy going ahead? give clear escalation on where he thinks the u.s. economy will be infected were headed for if this dispute goes on. you have seen and heard from many ceos and economists that the u.s. economy is likely to be worst hit if the trick is to actually escalate. we have seen it actually happening. powell needs to be very clear on how he wants to articulate that at jackson hole. how the u.s. economy is going to be ambiguous about it. yvonne: when it comes to the bond market, we are looking for clarity in this tight range for a couple of months. given trade tensions of geopolitics, yield is taken lower from here. is the yield curve debate still going to be further flattening, or do you think we could see any kind of breakout. ? kelv

scarlet: everybody cares about the jay powell speak -- speech. .re-jay powell alibaba bring in more revenueother areas. investors responded positively initially. 3%,stock is closing down perhaps broader trade concerns are a factor. , victoria's secret owner, declining more than 13%. they cut their profit forecast and said the head of the peak -- pink brand will retire. rosenblatt raised their price sayingto $30 per share there is renewed conviction that there is multi-year double-digit growth. honeywell is closing at highest level this month. just shy of $150 a share. the 2018 forecast because of accelerating orders and robust sales. joe: let's look at government bonds starting in the u.s.. -- u.s. the two-year yield is up to 2.61, where the 10 year yield is unchanged. want to focus on the flattening yield curve. it's reasonable to expect more action tomorrow after we hear from powell. brazilian yields ended down on the day. a lot is going on there with poles and the election and anxiety across brazilian assets ahead of the election. caroline: i the similar number. the dollar was affected b

interesting to see jay powell talking about inflation.ear signs inflation was accelerating above 2%. how do you interpret his comments? it is kind of the ongoing mystery. less of a mystery following the jackson hole presentation. with which prices are adjusted. a pretty awkward economic environment now in the way it structurally operates compared to previous environments. you have no poaching clauses. you have no compete clauses. you have swift price adjustments. you have the internet and also you have brick-and-mortar shops. with these three elements, it is far more difficult for an economy, although it is growing fast, to generate a significant pickup in wage growth and inflation. the one thing that is on the move underground equity market, record highs in the s&p 500. we compare the run ups of 1929, the year 2000, in the most recent bull run we have had. our markets getting stretched ahead of the economics in the united states of america, which is your domain of observation? our markets outpacing the ego? a shortening of is showing and

the kospi heading lower as we count down to the jay powell speech at jackson hall.shaad: stocks mixed at the end of the week, trade fears dominating the agenda. the dollar out for the first time -- up for the first time in six days as china and the u.s. wind up low level talks. president trump saying he is happy to press on with his tariff war. alibaba falling the most since june after earnings fell shy of estimates, but the highest revenues in four years. nevermind. in hong kong, i am rishaad salamat

jay powell, a lawyer by training. at much in terms of janet yellen and bernanke were using the symposium for, powell will try to keep the message the same. the minutes have become more transparent over time, so the is whence this time jackson hole was important, we had a lot of ambiguity. you had to employ people ducis cash to decipher -- to decipher. itell's mission is to make understandable to the guy on the street. we have to ask questions. if the fed is dovish today and powell questions the hike in september, you have record shorts on treasuries, yearly highs and dollar longs. the move we have seen already this week is reflective of that short-term positioning. we are in a dollar doom loop. if the fed because dovish, it is not because of the u.s. it is because of what is happening with the rest of the world and china. if he is dovish, we will see risk on. the structural problem is not happening in the u.s. andave this outperformance your typical fx models would say the growth is better in the u.s., therefore demand

jay powell speaks to hundreds of ceos.ll be paying attention to the real inflation that is finally starting to come out in the selected data set. >> how much drama can we expect a jackson hole given all of the trade tensions but also trumps comments on trade policy? paper.one sent me a it happens to be the title of jay powell's speech. they also happens to be the same title of a very important white paper that was rude released that refuted the agitation that refuted the agitation the fed needed to be more gradual. i am intrigued that he has chosen the same title. it leads you to believe he might not be alarmist but he won't be as dovish as markets are hoping. reason the president has been critical of the fed is he would like to see a weaker dollar. central banks never admitted they think that is a good thing, for sessions of declines is the white house doing with the fed won't? >> it works but only for a certain amount time. by the seen these moves president to try to take the dollar down. if the data itself are arguing f

federal reserve chairman jay powell gave a major speech daniele de martino booth the c.e.o. of quillan teligent is standing by to consider what he says and what it means for the economy and the future busters timely trade news alex one high limits joins us from toronto to discuss the details and we look at the technology sector in light of the recent ruling by the european union on antitrust decisions with andre barlow attorney of andro barlow mazhar plus there's even more news and more products being impacted by month santos. greif r t correspondent sara one says the joins us all this and much more but first let's get to a few stories topping today's financial and business headlines saudi arabia is leading a report today as a saudi for sovereign wealth fund is reportedly seeking eleven billion bucks in bank loans in the second big story from saudi this week after oil giant saudi aramco one of the largest and most profitable companies on the planet either canceled or postponed plans for the hotly anticipated initial public offering reuters reported the i.p.o. had been abando

federal reserve chairman jay powell gave a major speech daniele de martino booth the c.e.o. of quillan teligent is standing by to consider what he said and what it means for the economy and the future plus there's timely trade news alex one highly bitch joins us from toronto to discuss the details and we look at the technology sector in light of the recent ruling by the european union on antitrust decisions with andre barlow attorney of andro barlow mazhar plus there's even more news and more products being impacted by month santos. greif r t correspondent sara one joins us all this and much more but first let's get to a few stories topping today's financial and business headlines saudi arabia is leading a report today as a saudi for sovereign wealth fund is reportedly seeking eleven billion bucks in bank loans in the second big story from saudi this week after a giant saudi aramco one of the largest and most profitable companies on the planet either canceled or postponed plans for the hotly anticipated initial public offering reuters reported the i.p.o. had been abandoned b

jay powell was clear that he thinks people overstate the role of the fed in these situations. does the ecb have a role to play? extent do you think the situation threatens the ability to roll forward with this plan? >> that is going to be the problem because if it does affect the banking system, they cannot withdraw more liquidity if europe is under stress. that would not happen. they have to be having discussions with the banks in europe to make sure those funding lines are open and i would assume they're reaching out to turkey to come up with some solution to stabilize the situation. jonathan: if they accept or want the hell. kathleen, -- or want the hell. kathleen, do you think there is something on the radar? is communication going on through backdoor channels. it is not so much the european it is the lending to the corporations in turkey. when you think about these sovereigns, their largest importer is both area -- bulgar ia. it exports about 5% of their gdp to turkey. and sovereigns of poland germany being at risk, the ecb has tremendous incentive to provide liquidity. j

president donald trump said he expected jay powell to be a cheap money chairman.lar moved lower on the comments, and the president nominates the fed chairman, but it is independent and has historically frustrated presidents by ignoring politics. james athey ofis aberdeen asset management and kallum pickering. has frustrated presidents in the past. >> there is a long list of presidents who have had things somey and have had physical interactions as well. there was the story of one fed chairman being thrown against the wall by a present. we have to remember the fed is independent within government, not independent of government. we say it is operationally independent. there needs to be democratic accountability and legitimacy. it is fairly standard for the president to have things to say. that doesn't mean it is the wrong thing. the questionuess is, in modern history, i have never seen a president say it openly. does it, at the margins, impact with the fed does? do they want to be seen even more independent because of what the president said? today, it isrkets a lit

maria: there's the fed, dagen, jay powell speaking at 10:00 a.m.ackson hall, constituency fed response on the president's criticism of the fed, she gave it to us yesterday. >> expressions of angst at a time when there are higher interest rates is not unique to this administration. congress understood this tension might exist between central bank that was responsible for money supply and those that have other angles in the economy and so they put important fire walls in place that would allow an institution like the fed to keep its focus on the public interest. maria: they could still blow it. they could still blow it. dagen: to avoid being nervous when you get up in the morning, that's why you allocate your capital properly, that you have a little bit of balance in portfolio, but in terms of interest rates they are still exceptionally low. i worry about them reducing balance sheet but looks like they have not been or not being as aggressive reducing the balance sheet as we expected at the beginning of this year. jon hilsenrath has been talking abou

jay powell speaking in jackson hole today. >>> and a major shakeup in australia. the prime minister ousted from office >>> hawaii on high alert hurricane lane bearing down. we have a live report from honolulu. >>> china upping the pressure on america. trade talks fizzling out what will that mean for your money? >>> and we are rounding out our week-long series of america's top fund managers. today a woman that manages the number one-ranked u.s. domestic stock fund up 38% this year. she'll tell you how she's beating the street and bring you some ideas on this friday, august 24th as "worldwide exchange" begins right now ♪ >>> good morning welcome to a special "worldwide exchange," i'm brian sullivan. we are live in washington. we have a jam-packed show today. we are also keeping an eye on hurricane lane the storm weakening a bit overnight, but let's not kid ourselves this is a major threat to the hawaiian islands. we have a live report from honolulu where it is late at night and they're concerned. first a check on your markets and your money dow futures are not a lot

from what independent trump might say of donors of jay powell.ecause peoplets need something to fundamentally trade on. there is business to do. if you are looking for an explanation of relative dollar strength and why emerging markets are generally under pressure, it is because there is ifa withdrawal of monetary stimulus going on by the western central banks and the fed is moving further and faster than the rest. historically, rates are still low. inflationely because -- joe: let's imagine for a second that trump or not the president but was just some guy on twitter, like a lot of people, chiming in with his two cents on monetary policy. does he have a point? the economy is doing well inflation is subdued and what is the fed worried about? is doing well and inflation is subdued but inflation is not as subdued as it was. are at about 2%. would have killed for that two years ago and deflation was the big concern. are still low by historical standards and this is about removing accommodation. they are not at a point yet where interest rates are re

the president said he was not thrilled with jay powell's raising rates.loomberg reported trump was complaining to wealthy donors at a fundraiser that powell has not been the chief he thought he would be. >> we heard complaints on twitter and through his economic advisor and others that he does not like the rate hike path jerome powell has put the u.s. on. these remarks behind closed doors to fundraisers become more personal. >> he is building a case, and you will see it one tweet, one appearance at a time. as he gets matter and madder. once trump gets on an issue, he won't let it go. i can almost guarantee we will hear more about trump criticizing jay powell. matt: donald trump has accused china and the european union of manipulating their currencies as he tries to wrestle concessions from two of america's largest trading partners. >> the german or european government are not manipulating the currency. we have a huge trade surplus with the u.s., but on the other side, we have a deficit taking over in earnings from americans abroad into u.s. this trade def

a messy week for emerging markets gripped by bearish sentiments, and the looking ahead to chair jay powellpeaking. the u.s. decoupling from the rest of the world. is enjoying exceptionally stronger growth. the u.s. is delivering twice the earnings growth of the rest of the world. >> for now, the linkage is entrenched. >> it is hard to make the argument against equity. is against fundamental and technical basis. these companies are executing and if the prices were holding up, the story -- that would be a different to net. u.s.en you look at the economy and what the trump administration has done in terms of providing fiscal stimulus, it is going to continue. as a policy led growth spirit for the rest of the world has been a combination of hawkish. >> i think the pace is more than sufficient. >> joining me around the table is kevin giddis. head of u.s. rate strategy for fixed income, and coming to us, really pleased that he on the show. let's begin with you. can this continue? >> i am not sure. if you look at the treasury market in general, the economy the strong, we have focused on the lack

positive they on wall street after -- a positive day on wall street after jay powell highlights the strengthenhighlights the strength in the economy. powell ise from jay pretty much what we expected and a little more dovish than maybe expected. >> i think people are turning over rocks looking for the dovish elements. there is a really interesting tension in the market that cameron had pointed out that the stillot four 2019 is seeing about three rate hikes. if you look at fed funds futures, and we have a chart to pull up, they are pricing it much less than that. a little more than one rate hike. there is this disconnect between what the market is pricing in and what the fed. is saying. there's a few reasons for that. the market thinks it will get more dovish, maybe the new voting members are on the dovish side. the other possibility is the market is wrong and they are not listening to jay powell and they don't get the message that he is saying. the letter issue is where the tension would get dramatics -- dramatic. risk assets would not three that as the best news. we will have to see it was rig

audience, it is the equivalent of having jared kushner pushing out jay powell and having the presidentunning the federal reserve. that is where we are at in turkey. >> that is true. a lot of concerns we have, we had marc chandler say there is no interest rate at which the lira could be stabilized. when i hear that, i think this is totally management. a couple of weeks ago, all we needed was for turkey's central bank to act like a central bank should. this could move toward a general betterment of the situation. now we're talking, we need a fiscal package, imf involvement. jonathan: i spoke with jane foley and she said we need 500 to 1000 basis points of hikes just to stabilize the situation. just to address it. size get itof any done? >> an interest rate hike of any size does not get it done. it comes down to the credibility and policy makers saying the right thing, backing down. turkey is too big in terms of its political connections to not back down. you're looking at, either way, no matter what, a hard landing for the country. that means you got financial risk within the banks and t

lauren: jay powell to speak at 10:00 a.m. eastern time.l: attorney general jeff sessions hitting back at president trump's latest criticism of leadership at the justice department. hillary vaughn has details. >> some senate republicans think that attorney general jeff sessions' days at the doj are numbered. senator lindsey graham said yesterday he doesn't think the president has confidence in sessions and maybe time for a new face at the department of justice after the midterms. but that didn't stop attorney general jeff sessions from showing his face at the white house in the middle of public feud with the president because trump said this. >> the dems are strong in the justice department, i took an attorney general that never took control over of the justice department, never took control of the justice department and it's incredible thing. >> sessions shot right back with a bold statement directed at the president's comments saying, quote, i took control of the department of justice the day i was sworn in while i am attorney general, th

shery: do you believe jay powell really wants data driven rate hikes?a time we are seeing the financial conditions we have now? >> i think he is following a very good and careful, clearly laid out script. the other employment rate is the and current growth rate unemployment rate will decline and inflation news yesterday, core consumer expenditures is the key inflation statistic, exactly 2%, the fed target. hard to argue that the stock market is not at high levels, credit spreads are narrow. commercial real estate is thin. you are sitting there at the federal reserve, you are jay powell, you are saying, i think we need to get rates up consistent with where we expect to see them in a normal well functioning economy. we are not there yet but heading in that right direction. exactly following the right script. it is data-driven. shery: speculation the trade deal talks with canada and the u.s. could fall apart. that we could see a trilateral nafta. how much would that hurt the u.s. economy? i doubt that, they will come to some deal. it will be much ado about