fed sharewell -- to weigh in -- fed share jay powell wool -- fed chair jay powell next to weigh in.coming in at two dollars on adjusted basis, $2.73 a share. that seems quite high. david: the eps of $2.37 would be low. apples, wepples to will have to wait to see what's adjusted. suggest theould beat is the right number. alix: you immediate moved to the moveide -- the immediate to the downside. it feels like they are digesting what that means. that sales come in at $8.46 in atn -- net sales come $8.46 billion. david: some of the traffic numbers indicated there might be some challenges. it's been bouncing around quite a bit. alix: down 18% for the month. dbs head ofow, -- the ubs head of investment. >> roughly in line with what was expected. corporate estimates were much lower given that early reporting of holiday sales. was something to keep a close eye on. that came in around 37.5%. a slight uptick -- the margins falling because they seem to be having inventory problems. david: they are taking a charge to cut their upper management. >> that is something a lot of people have been say

jay powell says it's hard to prove that tax cuts and lifted then have economy. denuclearization is on the menu as president trump and kim jong-un meet for the second time. it's 6:00 a.m. here in hanoi and were gearing up for the official talks between president trump and kim jong-un. north korean state media already saying they are expecting comprehensive and innovative results from the official talks. today we are expecting another one and one -- one on one this morning and a joint statement in afternoon, following some friendlier talks last night where the two leaders dined together and they joked around, saying they had an interesting dialogue in that 30 minute conversation. the key questions remain, are we going to see more steps on denuclearization and could we get an inner for declaration? withll discuss all this ban ki-moon later this hour. and will speak to christopher hill and leon panetta. let's see how things are shaping up for the markets. the u.s. first look at close, we had a topsy-turvy session with the s&p 500 closing flat. health care weighing t

futures indicating the market will open lower ahead of jay powell.oints, s&p 500 down 4, the nasdaq down 116789 we're waiting on federal reserve chairman jay powell's second day of testimony on capitol hill. he will speak with the house financial services committee today on the heels of the senate testimony yesterday. markets suffered marginal declines yesterday on mixed economic data. dow industrials were down 34 points, s&p down 2 and nasdaq down 5 points yesterday at the close. european indices this morning are lower. take a loofnlgt fq100 in -- a look. fq100 down. asian markets overnight, mostly higher as you can see. the summit in north korea boosting the korean kospi index, up a third of a percent. big brother is watching. we will tell you how facial recognition technology may be used while you shop. wait until you see this. all coming up this morning. first, the future of home delivery has arrived. fed ex unveiling its first autonomous robot delivery system starting in select u.s. cities this summer. joining us right now for a first on fox is

here is the moment where jay powell's legacy diverges from janet yellen's. owell is going to have to do with this colleagues over the is toouple of years create some sort of playback for the next recession. we have already seen him decide what will happen with the balance sheet. the fed decided at the january meeting that they are going to stick with their current operating framework and have a slightly bigger balance sheet than they had in the past. they have slightly bigger issues downstream. they will have to talk about things like is the inflation target the right one? what do you do in will where inflation is permanently lower? you have less ammunition if there is a financial crisis because they know it is cutting that fund. it is their most potent peace of ammunition in their toolkit. so there are these real questions, and they are not resolved, and jay powell is going to be the person in charge of the committee when i have to think through those questions and come up with answers that could be politically difficult. carol: also in the finance section,

near target as jay powell said, but maybe not rising as much as wages.ou doesn't say he is watching inflation expeditions very closely. our bloomberg chart shows inflation expectations, if you look at breakevens on five-year, 10 year notes, have started to move higher. we will see what he says when he is asked again. shery: because after all of the fed speak we have heard so far, the big question still remains -- why did the fed shift gears to policy pause last month? did we get anything from his testimony? kathleen: if i had been there, if many of us have been there, we would have asked this very important question. what changed, say, from november meeting to december meeting to january meeting? the global economy was already slowing. we saw concerns about the trade war.all of these things were in place. what role did the stock market play? that question was not asked. we ask that to the chief economist at req economics. he said we already knew the fed was causing. the stock market must have played a role. let's listen. >> now the markets are almost bac

this is the moment where jay powell's legacy beverages. -- divergence.he will have to do is create some sort of playbook. we have already seen him decide what will be with the balance sheet. they decided that there were going to stick with their current operating framework and have a slightly bigger downstream. we've got even bigger decisions down the road, they're going to have to talk about things like is the inflation target the right one to be using. what you do in a world where interest rates are lower? aboutve less information a financial crisis because they know it is cutting that fund. it is their most potent peace of ammunition in their toolkit. so there are these real questions and there are not resolved, and jay powell is monday the person in charge of the committee may have to think through those questions and come up with answers that could be politically difficult. the financein section, what happens when hedge funds are built around one great manager. jason: and what happens when they leave? carol: we profile the investment firns behind fo

that's jay powell, concerned about the crosscurrents.e are tracking the pakistan isry, the latest line pakistan says that jets fired across the india border from airstrikes. this is the latest from pti. things are beginning to ratchet up between the geopolitics between the two countries. let's get back to our guest host this morning. lucy mack donald is with nejra cehic. jay powell is worried about the crosscurrents and financial markets have become more volatile. he mention that first before the u.s. economy. it sounds as if he is buying the market rather than the economic data. what do you make of that proposition? my crosscurrents he means market volatility. it was really volatile last year and it is wise to take notice of that. the other issue he spoke about, the china slowdown, trade as well, these were real significant concerns. what they're doing is entirely irrational, and although he didn't expressly say they were , that ismarkets exactly what the markets are understanding. if we see volatility continue to remain suppressed, wha

it is a tricky time for jay powell in terms of what he does next. jeanna: yeah. absolutely.nkis is the moment when his legacy diverges from janet paladin -- janet yellen. when he will have to do with his colleagues over the next couple of years is create some sort of a playbook for the next recession. we have already seen him decide what is going to happen with the balance sheet. the fed decided in their january meeting that they will stick with their current operating framework on the ballot sheet. a slightly bigger balance sheet that they had had in the past. he is bigger decisions down the road. with a want to -- they want to talk about if inflation is the right target to aim for. what you do a world where interest rates are permanently lower. you have less in -- ammunition if there's an economic crisis, because the primary tool to that fund rate, it is the most potent piece of ammunition in their toolkit. there are real questions that are not resolved. jay powell be the person in charge of the committee would have to think through those questions and come up with some an

we saw some intraday reaction to jay powell.from him that the growth outlook may be uneven, but that he is not worried about inflation, so we have a pricing in of expectations for were the fed could go on rates. what you saw was a decline in treasury yields. we saw a reaction there, certainly. in terms of where we have been, take a look at housing starts, analysis about the 2016 low we are seeing in the start of new home built in america is attributed to financial uncertainty, the turbulence at the end of last year, a partial government shutdown, and we saw that show up in other data, including consumer confidence. the decline playing out across the broader part of the market today. vonnie: with what you have been looking at, i want to point out the 30's curve. the 10 year yield did come down today. we did not see the same impact at the 30 year point. 0n other words, the 53 spread at its widest since 2013. this will probably be enough to keep housing where it is, at at least for the moment, something the fed chair spoke about to

liz: federal reserve chair jay powell gingerly tip-toeing through the senate mine field this morning,aging to skirt nearly all the potential trip wires. powell assuring the senate banking committee that he will remain patient when it comes to raising interest rates and he wouldn't bite when asked whether the trump administration's trade policies are a positive or a negative on the economy, but did concede that the trade battles are not helping farm bankruptcies. however, when one senator used powell's own words as a weapon against him, it caused some fireworks. glenn hall watched it all and is here to help analyze what it means for stocks and the market. i guess you could say did pretty well overall. he really kept to his very careful script and said as far as the top interest point here, interest rates, he would remain patient. did you see any veering from that? >> not at all. he was totally on point, made the comments that they are going to follow the data which is the code that the market is looking for, that they can remain patient and calm and there's no sign of a need for change

jay powell and president trump share a dinner together at the white house.did not guide on monetary policy, according to the federal reserve. the central bank stresses the path ahead is data dependent. it will retain its independence. welcome to "bloomberg markets: the european open." i'm matt miller in berlin alongside anna edwards at our european headquarters in london. anna: let's look at the individual movers. some days, we show you despite percentages. sorted by points because it tells a nice story around oil. part of the reason we are seeing in outperformance. changed to percentages, but on the point, bp was trading high, up 3.6% and it was total and others in the oil space lifted by the better than expected numbers coming through from bp. --o, strong performance in wirecard continues a bounceback, up 5.6% this morning. to the downside, what is bringing up the rear in terms of stock market performance? by points, how for lavelle to is down by 12.4% and was on as one of the negative performing stocks this morning. it seems there is a tech flavor to the

the president have actually endangered the economy overall and that that criticism of the fed and jay powellnother hit to the economy overall. is the president's words having an effect? >> well, i'm not a big fan of the president taking to twitter to criticize chairman powell. i don't think that's productive and i do think it causes confusion in the marketplace. at the same time, i think chairman powell's does a good jf keeping the fe fed independent. cheryl: i want to show something to this point. the president has tweeted several times against jay powell. this one i thought was.innocent. poignant. he said the fed doesn't understand trade wars or strong dollars, even democratic shutdowns over borders. that's one of several he made against them. at the same time, jerome powell is testifying this week. there are questions now that especially in the house with the democrats in charge, he's going to be a little more, well, upfront and defensive of the fed. he might strike a stronger tone. do you expect that from powell? >> well, i think he's going to stick to the script. they said the economy's

will the doves fly today on capitol hill fed chair jay powell testifying before congress and the markets may be on the line it's mystery chart time. there's the chart. shares sinking this year it's a name you know, but one that your guess says might be a good deal for your money long-term. the name ahead on this tuesday, february 26th, as worldwide exchange ginds right now. >>> welcome from wherever in the world you may be -- you are looking live at a picture of hanoi, vietnam, where president trump is about to touch down for

lee, thank you so much for joining us. >> thank you. >> just coming off the jay powell's testimony in front of the congress today, speaking fairly positively, but how should stock market investors be reading his comments first of all, in terms of the fed, they'll be data dependent if it supports a rise, they'll increase rates if data doesn't, they won't. my question is they're on hold, with maybe something happening on december. but i real them as being very pragmatic i think in the bigger picture we're in an normal reason i reasoni say that is there's somewhere, depend somewhere between 9 and $11 trillion dollars of conch debt. you lend money for germany for two years, you get negative return to germany, maybe ten basis points japan ten year, you get zero it's not a real world. i as an investor try to figure out what's norm at the product activity of the labor force grows 1.5% labor force and product activity growth determine real growth, and we're probably slowing to that level right now 4% nominal world, ten-year government bond ought to be 4%, may take several years to get there,

that was a policy mistake. >> he being jay powell >> jay powell made policy mistake. he reversed course, and that's unusual for the fed. they usually slow acting and they saw they made a mistake, and i applaud them for that. >> what was the mistake? >> certainly raising the interest rates in the face of no inflation. >> does that tell you we're in a strong market? if the fed threatens or moves the punch bowl slightly away and the markets fall like they did in december, is that a healthy market >> not as healthy as if we consist for the 4% to 5% interest rates i think even warren buffett said on this network, if rates stay low or anywhere near where they are right now, stocks are cheap. >> this has been one of the strongest economies in over a decade if we can't with stand 3% or 4% on the fed funds u funds rate -- >> look around the world we're not the only game on the planet we don't live in a vac you'll. interest rates around the world are very, very low you push our rates up on the long end here. with rates there in germany, we're -- that's still good sovereign pape

jay powell and congress. much of the markets run going forward is going to be reliant on jay powell remaining a little softer on rates >> i think it's extremely important. that will allow the markets to get a resolution on trade that's going to be extremely important for cap-ex cycle we have all the indwreed yents in place of now even lower interest rates, making stocks more competent ti with bonds, and also, that, you know, companies are going to allocate capital because they have a corporate incentive to do so with -- >> it's like december never existed. >> well -- >> we're falling 400 and 500 points in a day. volatility sored all of a sudden the calendar switches, and we get this market rebound. what happened? >> you just run out of things to sell that's how capitulation. that's the definition of it. we talked about it on the 27th of december. everything that wasn't screwed to the swaulz was being thrown out the window when you get to the sell everything because i can, that's typically a market bottom. it'

reserve's jay powell met president trump at the white house to discuss the economy. powell's demands were consistent with his news conference. policy the president would be based on incoming data. and the decisions are nonpolitical. the dinner lasted 90 minutes. steve mnuchin was in attendance. president trump is said to be nominating treasury undersecretary to lead the world bank following the resignation last month. he has per trade the world bank as too big and inefficient. other countries have defended the organization from trump. willalia's central bank shift policy. they left its key rate unchanged. 22nd consecutive meeting. downside risks have increased. failure to agree on brexit is holding back investment, according to ray clark. -- greg clark. the japanese carmaker will have to reapply for government grants. theresa may has until next week to secure changes that will satisfy enough lawmakers to win a majority in parliament, but there are few signs that you will budge. after meeting with angela merkel, shinzo abe warned of the dangers of crashing out of the e

we'll wait to see what maxine waters has in store for the fed chair jay powell. ng some fireworks. susan: market moves as well. treasurys pared their losses on powell's testimony. the dollar is extending gains as well. strength in the currency, also fixed income and u.s. debt. stuart: okay. what you have now is minus 135 points for the dow jones industrial average. that's largely on the back of lighthizer's testimony on capitol hill, which appeared to show, too early to be really, really strongly in favor of a big deal coming down the pike. ashley: exactly. stuart: paraphrasing here but that's where we are as of right now, down 132 points. we're still waiting for maxine waters to start the questioning of jay powell or continue the questioning. we will be there shortly. i think we're going to take a break real fast? we have to make money on this program. you know how it is. a few commercials for you. hope you watch them. promise you, we'll be back in a moment. fact is, every insurance company hopes you drive safely. but allstate actually helps you drive safely... w

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jay powell said as much in the testimony. applaud he said we are not a nation that is not going to pay our debts. we're not a nation that will run up debts to infiniti. other countries like china, for example, when, at the time that we come out of the next global recession for example, they will be all the more strong for it, because we have basically just taken our eye off the cash register. it does not work like this. i hope mmt is slade. charles: we have run out of time, congratulations getting married. >> thank you. charles: the man at forefront of trade talks with china, robert lighthizer not sharing his boss's enthusiasm over a potential trade dial. speaking of talks, president trump had good dialogue with kim jong-un today. we will have a joint signing ceremony tomorrow. with will that look like? that's next. each day our planet awakens with signs of opportunity. but with opportunity comes risk. and to manage this risk, the world turns to cme group. we help farmers lock in future prices, banks manage interest rate chan

and back to washington on the steak dinner last night where the president entertained jay powell. kevin, what should we look forward to tonight? kevin: the wall. i've spoken with officials who say the president will deliver an uplifting speech. but then i spoke with democratic staffers, who anticipate the president will just deliver a rio dress of -- re-address of the same policies he has been proposing, specifically around the border. now, on the republican standpoint, i spoke with the louisiana senator richard shelby earlier today. the presidencys is this as an opportunity to build consensus in water to over another government shutdown. i spoke in the hallway briefly with mitt romney, a republican from utah, who is optimistic about the speech, but says will be listening closely. the president will not just talk about the government shutdown, but also on trade policy as well as foreign policy. look to see how democrats react, particularly on issues of trade, as well as drug prescription policies, to see if there might be any middle ground or common ground moving forward to get so

jay powell speaking about rural poverty.ally told us is he sees a solid economy, a strong labor market. he does not see a heightened risk of recession. let's take a look at a couple of data points we had today that that.rate look at the steady move higher. so many employers are saying i need to hire workers. this is the kind of thing that makes jay powell and others say we have a solid economy. fromt something today -- a milliona quarter of members. they do a survey for decades now. int they found is a big drop their business sentiment. it's back to where it was in january 2 years ago when president trump was first elected, and the thing that , there wasd uncertainty index jumped to its highest since march 2017, and this takes us. go. uncertainty globally. about the trade war. inut how it hurts exporters asia, brexit, and more. that is hitting a lot of central banks now. haidi: kathleen hays. we will continue to talk about central banks. new zealand's central bank could be the next to turn dovish. traders are wrapping up tha

you can call it a high stakes steak dinner fed chair jay powell sitting down with president trump last night at the white house we'll find out what the two talked about straight ahead. >>> the countdown is on. speaking of washington, we are just hours away from trump's state of the union address we're going to break down the key things that investors need to watch >>> google shares under pressure today despite some strong results. there is one thing really bothering investors about the quarter. what is it we're going to tell you. we have to stick around. bp shares shooting higher after the oil giant reported a big beat we're going to bring you new comments from bp's ceo what would a tuesday be without a riddle here you go. you ready? it's a riddle. when is a pig a bull think about it the answer is ahead on this tuesday, february 5th, as worldwide exchange begins right now. ♪ >>> good morning, good afternoon, good evening. from wherever in the world you may be watching, and perhaps you are, in china. look at this you got happy lunar new year celebrations are underway all across asia, pa

people running for president trying to stake their ground in front of jay powell. chief economist economics,q -- rdq he doesn't understand why the fed made this big change from december to january. they've still got it out for two maybe the fed is reacting too much to the stock market. >> the equity market is almost back to record highs so now what happens? but theed responds, rate hikes back on the table, andfed needs to be a leader react to markets when they think the market reaction is signaling something really fundamental and i didn't think december's swing was that. kathleen: one more dive into the bloomberg library. a chart of financial conditions. we heard about those getting very tight toward the end of the year. that was concern people had, but on the far right-hand side of your screen, whether you look at the turquoise line, u.s. financial conditions, or the white one, a composite of u.s., europe, and asia, there is a loosening of financial conditions. anything more about this when jay powell speaks to the house financial services committee tomorrow? tha

jay powell said we don't understand exactly what mmt is. we disagree you can go that far that you can print a lot of money. we think there will be a problem with the national debt. the question today is when do we get there. vonnie: there are company earnings out today that are impacting the market indices that are lower. great earnings from best buy up 16%. campbell's soup up 7%. macy's up 3%. on the negative side, mylan down 10%. about half as down percent. in terms of asset classes that may be impacted by the powell hearing, the dollar index is holding its own above 96. a stronger british pound brexit hopes are not quite materializing. at 11082 --rading 1.1082. nevertheless, this may have a longer-term impact on the markets because it may have a longer-term impact on president trump's ability to govern, right greg? greg: so far as the markets stability any attack or suggestion or evidence that undermines the credibility or suggest that the democrats might be more aggressive in pursuing the president would create some level of instability

we're waiting to hear federal reserve chairman jay powell's testimony.nate today and the house tomorrow and we are looking for any clues in terms of interest rate hikes, the economy, how strong it is and of course the global slowdown. futures this morning are taking a hit, given the weakness in home depot as well as caterpillar was downgraded. that stock is also down. dow industrials down 80 points, a third of a percent, s&p 500 is down 4 and-a-half and nasdaq is down 19 points. futures indicate a decline at the start of trading. optimism over china sent the major indices marginally higher yesterday. there is optimism the u.s. and china will come together with a trade deal. the s&p 500 was up 3 and-a-half and the nasdaq was up 26. in europe, declines across the board. take a look. fq100 down better than 1%, 77 points lower, the cac is down a quarter percent, 11 points lower and the dax index is down 27, quarter of a percent. similar story in asia overnight, lower across the board. well, the dark truth of being a moderator, a new report exposing the secre

what struck you most about jay powell yesterday?, there was no real new news in his testimony. i am struck by how doveish the committee has turned going back to september. one of the things i took from it, this continued talk about participation, how participation has surprise to the upside. that really is a story of workers over the age of 55, if you go back and look at participation from 1990 to 2000, that was max participation. compare that to where we are today. there's 7.5 million more people over the age of 75 participating. that trend going forward will continue for the next five years, another 7.5 million over the age of just 65. so i think the real question for them is not just what is max employment but or full employment but what is full participation. so questioning that side of their mandate, they also question the inflation side of the mandate, the fact they haven't been able to achieve that target going back to 2008 when the financial crisis occurred. there's only been one month where inflation has been over 2%, excep

today,he house committee where do we expect jay powell to end on inflation?ore inflation for more hikes or the status quo does not get worse or more hikes. lara: i am still in the camp that we get one to two more hikes this year. that is to say we get inflation still around 2%. the fed has signaled that they are prepared to be patient given the inflation data. in the end, you are splitting hairs. if they do not raise it all, if they raise two times, you're still talking about them wanting down an interest rate cycle at the lowest rates we have seen historically. it is a lower rate environment. -- mike, youaid said you were bottom-up value. you want them to keep rates low. on the other hand, when the rates to up you short out the sheep from the goats and you want the sheep. alix: i was going to say which is bad? david: i think sheep is the bad one and goats are the good one. mike: i understand what he was saying. do i want rates to go up or down? i don't know. i have seen it being difficult when rates go up and now when they start to retreat it has been top. h

this rally in asian equities is because jay powell came out dovish and spurred a risk on rally in risklove the title. i have to give it to the other chart. if her chart happens, your chart goes through the roof. congratulations. this is bloomberg. ♪ 11:00 in singapore. more signs of stress. the survey of china's activity is weaker than expected in contrast to the official readings. that polls the rug from under asian markets. fragile gains on the regional benchmark were instantly wiped out. investors watching the trade talk. president trump says there's progress, but no final deal until she meets xi jinping. this is bloomberg markets: asia. ♪ juliette: we are entering the last hour of the morning session in hong kong and hong kong stocks are weaker about .1%, the weakness coming through in the private survey, taking a shine off beijing. although you could have chinese stocks higher in the morning. the philippines having a pretty good session, up 1.4%. it is about the currency market so we saw the yuan hit a six-month high yesterday ahead of trade talks. with arbitrating today and seein

fed jay powell, fed chair jay powell, i should say, sitting down for dinner last night with, yes, president. the two dined over steaks at the white house. federal reserve calling it "an informal dinner" discuss the economy. steve liesman will have a lot more of the details at the top of the hour. >> anyway, alphabet smarz are under pressure this morning. 2.5% down. the company reporting a big jump in quarterly revenue that would seem like good news the tech giant revealed rising costs for data centers hardware and head count i think this is actually what really sort of triggered some of the investors out there. costs per click dropped 29% from last year. 9% from last quarter separately, bp posting results. they are swinging to -- as production soared following its acquisition of bhp's u.s. shale assets we'll talk to the bp cfo. >> take a look at equities futures at this hour about three hours ahead of the market open. dow looks like we would open up higher about 92 points. s&p 500 up about 3.5 points higher, and the nasdaq off a little over six points >> all right let's talk a little more a

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michael: jay powell has been on bring the fed to the people. he speaks in different language.effort to bring the federal reserve to areas that don't pay much attention to it. he was asked about the economy. he says we don't know the total effective interest rates yet because they take a while to have an impact on the economy, but we are not close to recession. david: that is contrary to what we are hearing from a number of sources. we have paul krugman saying we are close to recession. michael: ray dalio and others have suggested. david: kyle bass said that yesterday on bloomberg. michael: they are seeing the markets go down. they are taking that as a signal. the fed is not taking it that way. they are looking at the production data and saying we are not close yet. david: he is not giving us much guidance on what the fed is going to do. when will we get some guidance? february 26 is the date for humphrey hawkins testimony. he will speak for the fed, not necessarily himself. we have not had a new forecast or changed dot plot. people can ask him, your press conference, was it ju

jay powell also on tap to talk about more dovishness looking ahead. haidi: a big week indeed.ee that, wall street could the regional benchmark push higher. we are keeping an eye on australian credit stocks following friday's release of a senate report into credit and financial products. also watching australian coal producers. we will get a pulse check on the industry today with its earnings. we are keeping a close i, the miner posted a rise in profit. morning, we will get more details of course on the best half on record. includingt is right, after the crucial question about where will suppliers come from? they will consider using brazilian. more of that with bluescope's marketing director. that is at 11:45. 8:40 five out of hong kong. start with the u.k. prime minister theresa may has again delayed a parliamentary vote on her brexit deal. she says it will happen by march 12. it is a little more than two weeks. nation's egypt for the summit. she will again attempt to win concessions. some eu officials say breaks it could be delayed by as much as 21 months. that is if no agree

jay powell having dinner with president trump at the white house last night on jay powell's birthday.on, president trump to tout economic success tonight. closer look at who will be attending as guest of the president and democrats. patriots on parade. mornings with maria begins right now. ♪ ♪ maria: we kick it off with markets, dow industrials right now better than 70 points, s&p 500 up 3 and a half on nasdaq right now looking like gain at the start of trading about 11 points after the market started week on strong note, big cap technology and industrial stocks led big rally yesterday, take a look, dow industrials up 175 points at the close yesterday, up 3 quarters of a percent. s&p was 18 and nasdaq better than 1%, 84 points higher tat close yesterday. earning season rolling on this morning with google parent company alphabet reporting after the bell last night, numbers were better than expected last night but the concerns are really over higher expenses and that's weighing on investors this morning, company is spending more money on whole host of businesses away from search, the st

. >> the federal reserve says chairman jay powell net with president trump at the white house to discuss the outlook for the economy. the fed says powell's remarks are consistent with his most recent news conference. new,s when he talked up a quote, patients in rate decisions. he also told the president policy will be based on incoming data and fomc's decisions are nonpolitical. it was said to have lasted 60 to 90 minutes. the fed numbernd two also attended. donald trump's inaugural committee under scrutiny this morning. spent $170 million on the curtain raising event back in january 2017. the committee had now been subpoenaed by federal prosecutors in new york. questions have been raised about how the money was spent and how tickets were distributed for the exquisite event. former chief jim young ken of -- world bank countries have defended the existing order against trump's criticisms. coming up tonight, the president talks the state of the union. bloomberg will bring you the latest from the big event in washington. crisisvenezuela were the continues. the u.k., france, and germany lead

we had jay powell, a 180. people were speculating to have people within the administration who are saying the president may be too concerned about the markets. , you know,nk that the markets are tending to be superficial in that respect. as long as the top going headline is that china trade tensions are going away, markets are going to react positively. for businesses, how do you make policy when there is nothing really written down that you can trust? trump's point, a memorandum of understanding is just that. and the amp -- enforcement mechanism which is the really difficult thing has yet to be disclosed. >> fairpoint. china's reaction come overnight, we saw that there is still a lot of differences, very substantial differences. the s&p futures moved lower on that. well below the session back to the highs. nonetheless, consider if you want to buy this risk rally. >> there is a lot of question about what is xi jinping's ultimate gain is pure it how much power he has in terms of the upper hand, the lower hand,

we are talking about jay powell, of course.esterday was eight days of gains, the longest streak for the dollar in years. it's declining now about .2%. even though jay powell is saying the economy is fine, we do have a pause on interest rates. maybe the rally of the dollar was too strong too soon. strategists are saying and we are coming a little bit off that high. vonnie: lawmakers have brokered a deal on border security. see if the terms are enough to avoid another shutdown. speaking at a cabinet meeting, the president said he was undecided on the proposal but insisted the government would stay open. gavin joins us from the white house. what did you make of the comments around the cabinet meeting? gavin: president trump speaking of the cabinet meeting saying he would not like to have the government shutdown but that he is going to be having a meeting later this afternoon where he will consider whether or not to get on board the bipartisan deal lawmakers came up with last night. inside the deal, $1.67 billion u.s.-mexicolong th

the federal reserve says chairman jay powell and his number two met president trump at the white house to discuss policy in the economy. the fed says the remarks were consistent with the most recent news conference when he talked of a new patience in decisions. he also told the president that policy would be based on incoming data and the decisions are nonpolitical. loretta mester supports jay powell's policy, but there may be a need for higher rates if the economy meets expectations. she says policy is not that far ahead or far behind the curve which allows the state to get data before making any rush to judgment. self-proclaimed venezuelan leader has won the support of most of europe as the u.s. led campaign to out nicolas maduro accelerate. the european union failed to offer its backing. trading of venezuelan debt has come to a standstill. stopped trading the note and debt after the treasury issued instructions, banning most transactions. the aussie dollar sliding today, , a trade balance more than expected. $3.7 billion, $1.5 billion more than forecast. more signs that the economy

maybe the narrative that hey, president trump made jay powell cave, instead of jay powell sees the u.stentially falling off a cliff? >> i think it is unfair. i think powell is spot on. he took advantage. they took advantage of opportunity to raise rates when they had them. there is moderating in u.s. growth. certainly issue overseas. now you have a situation where why continue to put gas on the fire when you may not need to now. charles: do we go into recession? recession not on the table? >> you can't be recessionary when you have the greatest levels of unemployment you've had in decades. got wages increasing. more importantly recession requires catalyst. no catalyst. no bubble in the market. no overleveraged financial situation. that is important. charles: if you look historically, michael at a chart when these low unemployment levels is typically, that is usually on the eve of something. i mean most of it is fed-induced but slow economies on eve of potential recession in the past. >> fine, a lagging indicator. we can say that a month ago everyone was saying it is recession. i rememb

i it kind of i think gives jay powell a little bit more room.he was a very dovish fed chairman not surprised she would be more sensitive to backing off gives d it. >> great thank you, as always. >> thank you. >> shall we bring in rick santelli to get his reaction to the interview with chair yellen? rick >> thanks, tyler i think there's two things i walkway with the first is i can't really jump into that inflation argument especially when it comes back to the two pillars, one maximum employment, the other stable prices when janet yellen's tenure began, inflation around 220. when she left in feb 18, not much lower the point is that the whole range of her tenure was 120 to 220. she did her first tightening in mid december lower end of the range around 150. right there, that was the worst point to pick, if you were really paying attention to the data it wasn't data dependent that flows nicely with the fact that you wanted autopilot and markets didn't have a huge hissy about that the issue is that autopilot isn't reassuring to the markets. the market

stuart: jay powell commentary, hostile question to jay powell and great consumer confidence report and we're dead plat on the market. >> there are concerns are the two dow members. stuart: two dow members get you every time. neil, it is yours. neil: thank you very much, stuart. we're following the jerome powell hearings on capitol hill. there would be drug industry titans getting a browbeating but appears jerome powell is getting hit hard. first of all from those who want to run for president. others wonder about what the jurisdiction should be for the federal reserve. powell himself did make market friendly and unfriendly comments at the same time. take a look. >> the fomc determined that the cumulative effects of these developments along with ongoing government policy uncertainty warranted taking a patient approach with regard to future policy changes. we just moved up. we welcome that. we don't find it troubling from and inflation standpoint. the banking system overall is quite strong. record profits. no bank failures i think in 2018. much higher capital, much higher liquidity, bett

first the economy under president trump president dining with jay powell at the white house, powell'spossible. it's like having your cake and eating it too. ask your broker if they offer award-winning full service and low costs. how am i going to explain this? if you don't like their answer, ask again at schwab. schwab, a modern approach to wealth management. comcast business built the nation's largest gig-speed network. then went beyond. beyond chasing down network problems. to knowing when and where there's an issue. beyond network complexity. to a zero-touch, one-box world. optimizing performance and budget. beyond having questions. to getting answers. "activecore, how's my network?" "all sites are green." all of which helps you do more than your customers thought possible. comcast business. beyond fast. maria: we are less than hour away from the opening bell expecting a gain start of trading 100 points investors watching earnings what also is important what president trump will say tonight state of the union address, joining us right now vantage point investment advisers good to s

it's jay powell. he speaks tonight. >> absolutely. know there's a great story on the bloomberg talking about the two camps in terms of where monetary policy goes from here. it matters for markets the gaza can tell them whether we will see hikes resume later this year. the other story is talking about the curves. i know you love a little curve. one is in negative territory. it got a little bit better. go the risk is those curves into negative territory as you go further out. this is the risk. if you do see momentum continue, if they tolerate higher inflation, what could that message do? nejra: absolutely. and to me, if interesting whether you get the flattening and possibly the inversion. it means different things. and speaking of markets, let's check in on the markets around the world. joining us from our bloomberg -- annmarie hordern. geopolitical tensions in india are escalating today. pakistan claiming and airspace violation by fighter jets. india's ministry gave -- niraj: good morning to you. well, the markets started off lower. t

jay powell is coming around to a wait-and-see view. are pushed upets that are tweeting today the european and u.s. equity futures struggle for direction. warnings by the queue? nissan scraps plans to build a new car in the u.k. as theresa may renews efforts to find a plan b on brexit. good morning, everyone, and "daybreak europe." let's get to the ryanair numbers. confirming its 2019 profit guidance between 1% -- 1,000,000,002 1.1 billion euros. revenue comes up to 1.5 3 billion euros. the key here is the versus arter loss profit a year ago. ryanair saying it cannot rule out further cuts to airfares and guidance. basically, ryanair reporting a 19 point 6 million euros net loss in the third quarter and is expecting weaker fares. the passengers were offset by 6% decline in average fares due to excess winter capacity in europe. commentaryso the coming through here is that higher all prices -- higher oil prices and lower fares have created a wave of eu airline failures. also ryanair saying in a morement they expect closings and failures in

stuart: concludes the testimony of jay powell, federal reserve chair. question from the senate banking committee chair, senator crapo. then as you just heard from the ranking member of the senate banking committee, that would be sherrod brown. chairman powell, senator crapo, steady as she goes. no news created there on the interest rates or state of the economy. sherrod brown, in my mind was pure politics. ashley: pure grandstanding. he mentioned trickle down theory, doesn't work, ceo pay. he says the president doesn't understand economics quoting janet yellen former fed chair who made the comment. made it as a statement. of course chairman powell said i'm not going to comment on that. it was an opportunity to bash the president. stuart: what do you think, susan? susan: economic standpoint, nothing we haven't heard before, inflation close to 2%. however only statements might be a bit of a surprise is trillion dollars in reserves. we had concerns about runoff of the balance sheet and if you have a runoff of the balance sheet that takes money out of the ec

still ahead, the final spread with the spotlight on chairman jay powell. that is next.his is "bloomberg real yield." ♪ jonathan: i am jonathan ferro. this is "bloomberg real yield." president trump and north korean leader kim jong-il and will meet in vietnam. chairman powell delivering his semiannual monetary policy. me, my guests. what are you looking for from the fed? >> i think we go back to the fourth quarter, we knew risk assets led to a higher interest rate regime. tee.he ball is back on the he has to acknowledge we are in ,n environment of 2% gdp growth the term premium is negative. a lot of space on the bond side. he needs to do something down the middle and more concrete, more transparent, when you go to hit the golf ball --it is not what you want to do on the golf course. policy attalk about the end of last year. too far and corrected too much? i have a nice glass of water to drink to make sure i do not get parched. show, i wason the hawkish with the fed. i do not think they cleaned up the communication at all, i think it is worse. i cannot rationalize economi

largely what jay powell told the senate on tuesday. in another room, the administration's point person on trade. robert lighthizer giving a status on the update of those talks. finally, president trump's former lawyer michael cohen before the house oversight panel. markets lower across the board been sitting there for the balance of the session thus far. we'll stay on top of all of that have some discussion and debate in a bit let's go back to the hearing in which jay powell is still taking part in that q and a >> lower than planned because energy costs are down. you're add jujusting for that eg there. >> does that not apply in reverse that if we were looking at growth being higher, are we treating energy costs the same as the explanations of prior growth as we are discounting inflation growth going forward >> i didn't get your question. >> if i understood your commentary right, you were saying that going forward inflation will be below target but that's largely driven by energy if i'm following what's written, the prior growth was dri