. >>> president trump takes aim at jerome powell ahead of today's policy meeting saying he could consider demoting the central bank head. >>> and trump also blasts ecb president mario draghi and his stimulus plans that sent the euro lower against the dollar. >> there are risks mainly because of brexit, also because of the trade conflict. even the persistence of these risks are a risk in itself >>> president trump has increased pressure on the federal reserve to cut interest rates. bloomberg reported the white house in february examined the possibility that the administration could demote jerome powell from his role as fed chair. the news agency reported that the white house legal review had made a case to replace powell as fed chair but said the move would be open to a legal challenge. trump also hit out at the ecb after mario draghi hinted at further stimulus for the eurozone draghi's comments prompted the euro to slide against the dollar trump tweeted a soft euro made it unfairly easier for them to compete against the usa. the president also said that europe had been getting away with t

this is the federal reserve chair, jerome powell -- as the federal reserve chair, jerome powell, expresseda rate cut. here's what he had to say. . >> two thirds of all the recessions since world war ii have been caused by some fed policy. some fed policy either being too slow or too fast. wevery hard to say whether will have another cycle with interest rates where they stand now and with the growth and inflation numbers where they stand. we might. the key is to be prepared. >> policymakers are walking along a ridge line. there is a very narrow band of flexibility at their disposal. the situation is much more competent. , thead of externalities trade dispute with china. >> when you connect all of the dots around trade tensions, particularly -- potentially an economic -- a technological trade war, growth will not be as fast as we have seen. >> i think progress ultimately will be made. anna: business leaders at the annual bloomberg invest some in new york on fed policy on the rising trade tensions. these things are increasingly linked in the minds of investors. let's get more with benjamin ma

>>> and let's see what he does trump putting fed chief jerome powell on notice with that comment yesterday as word leaks out that trump may have wanted powell out but he wants to get in with china's president. stocks surging yesterday trump saying the two will meet in china >>> discord in the ranks as pricing pressures mount opec pushing off next week's planned meeting in vienna. we will tell you when they will finally have a meeting and maybe have to confront iran. it's wednesday, june 19th. "worldwide exchange" begins right now. ♪ >>> all right. see what they did there. a lot of news out of asia, you got the band good morning, good afternoon, good evening wherever you are. i'm brian sullivan we have a huge wednesday hour for you including our exclusive sit down with that man, the founder of huawei. we'll get to thatin a moment first we'll start with the markets. the u.s. major averages are points away from hitting fresh all-time highs following 1% gains or more across the board yesterday. all the major averages, the dow, the nasdaq, more than 20% up from their december lows right now fut

as you mentioned before, charles, jerome powell pretty much confirmed it.d rather be early rather than late when dealing with a slowdown in the u.s. economy. back to you. charles: susan, thank you very much. joining me to discuss is third seven advisors managing director michael block. tim, let me start with you. i thought it was intriguing jerome powell talking about tariffs, economically for 21, 22-dollar economy they are not enough to hurt us but psychology of that, underscored today when the conference board came out with their number which was a big miss. it pointed to people being concerned aabout tariffs and new tariffs and trade starting to weigh on the public's confidence. >> absolutely. it also applies to business confidence. if you look at those measures as well, they have been in sustained decline since the trade war kind of elevated. overall, something you look at called policy uncertainty, some of those measures are pretty high, close to highest since the financial crisis. this confidence effect is main transmission mechanism to the economy. c

anna: jerome powell speaking on the fed rate decision.et's get to our markets conversation with mark cudmore, our bloomberg mliv and aging editor. we talked about whether it would be possible for the fed to produce a dovish surprise. it seems they did, judging by the gmm scream this morning -- screen this morning. mark: absolutely. jerome powell has done a wonderful job in the immediate delivery. every asset is doing well and he managed to get this movement in oversized reaction in equities. it is impressive getting the moderate line. skew inted, there was a the short term for a positive surprise from equity markets from risk assets because it has been so positive at the moment, people want reasons to buy. maysecondary action, which come in after a few days, we'll be negative. what has changed? they are open to appropriate action rather than being patient but they are behind with the bond market pricing which cut buta 25 basis point there might be more than 25 basis points. spent time analyzing, they are not confirming what is priced. ove

jerome powell did a 180.ne day he was in a mode of raising short term rates, then after a barrage of criticism from the president of the united states -- liz: also data. he also saw data. >> the data kind of came in just as the president was saying this stuff. listen, there's two ways of looking at it. either president trump is a better -- is better at this stuff than jerome powell, where he saw the data that jerome powell didn't which is very very possible, or he got jawboned. i can't tell you which one is which. i will tell you that when the president started attacking, he started backing off. and it wasn't just like -- remember, what he was doing was unwinding the balance sheet which generally is all the securities that the fed bought from the banks, toxic securities and treasury bonds, to infuse the banks with capital during the financial crisis, he was doing that and he was raising the short end because he was worried about normalizing interest rates and having some rate -- ability to lower rates, obviou

european equities follow wall street into the red and gold retreats from a six-year high as jerome powell dampens rate cut expectations. >>> the question my colleagues and i are weighing on is whether there will be a call for additional monetary policy movement >>> president trump threatens owe obliteration if iran attacks anything american in the latest war of words between washington and tehran we'll speak to u.s. treasury secretary steve mnuchin within the hour >>> and thyssenkrupp shares get a lift on a report of a possible offer by engineering firm kone for the elevator unit. >>> and european chip stocks rise after micron beats third quarter forecasts and resumes shipments to huawei despite a washington ban on the chinese tech giants. >>> good morning the federal reserve chairman, jerome powell, has warned that the outlook for the u.s. economy has deteriorated since early may thanks in part to uncertainty about global growth and trade. powell said publicliey during a speech that the federal reserve remains independent. he insisted the central bank has yet to decide when is the right

>> which he has been pressuring jerome powell to do.. neil: that's a faustian pact. what happens, the federal reserve is already ready to cut rates if need be to address it. >> it's not mexico that's necessarily driving that alone. there are other indicators that the economy might be slowing. powell is saying that perhaps the bigger effect is on mexico. over a third of its gdp is based on exports. are we going to cause the mexican economy to slow down sufficiently that it increases the number of mexicans, not central americans, but mexicans who wish to cross the border into the united states. neil: the worse you make things economically the more they try to come here to find something better. guys, thank you all very, very much. >>> we are up about 435 points right now. interest rates are back up. 29 of the dow 30 issues are all up right now. save coca-cola. that's only fractional. those antitrust concerns we were talking about earlier, the big companies that are under fire from u.s. regulators from the justice department to the federal

in you have the fed chair jerome powell and the st.ouis fed speaking, investors did not like what they heard, saying a july rate cut should be limited. we saw every sector on the s&p 500 in the red, tech and communication stocks leading the decline. gold jumping the most in six years, not to mention the yen also rallying. u.s. futures at the moment really not doing much. let's see how we are setting up for asia. asian futures appointing lower, going into it the session. it may complicate u.s. secretary of state pompeo's visit to india this week. in new zealand, kiwi stocks trading flat, halting a seven-day advance ahead of the with the governor standing pat. tylan also holding today and this wednesday will get data from malaysia. here in hong kong, more protests are planned this morning. paul: thanks for that, sophie. let's get the first word news now. >> new data from across the u.s. show increasing threats to growth amid rising trade tensions and pressure on the fed to cut rates. sales of new homes fell to a five-month low, adding to

officials apparently expect a rate cut by the end of the year announcing the decision fed chairman jerome powell pointed to concerns over weakening global growth and volatile international trade relationships just a day ago similar preoccupations prompted the european central bank to signal that it's ready to introduce fresh stimulus measures to boost the eurozone economy. and let's go now to our financial correspondent in new york yen scored a yen is what's behind this incision. well i mean we clearly saw that the federal reserve at least cleared the way verbal e. for a possible rate cut by end of july even if the monetary policy is not put on autopilot yet a lot will actually really depend on how trade talks will go on specially next week when ping and donald trump will meet at the g. 20 summit in japan overall the economy is in pretty good shape but weaker global growth and those trade tensions that. uncertainty and that's why the market does expect a rate cut latest by the end of the year now yes we know that u.s. president donald trump has been badgering jerome powell for awhile to c

we heard from jerome powell yesterday.is colleague and even he does not want 50 basis points cut. european futures look to be more negative. ftse futures, dax futures, and cac futures suggesting there could be a bit of a draft lower at the start of trade. european equity markets just getting opened up this morning. strength coming through in the u.s. dollar, which will not please president trump there and much. we will talk -- very much. we will talk more about markets, undervalued or overvalued, later. euro stocks pretty flat at this point. we will wait to get a fuller complement as stocks open to get a sense of where we are. a bit of weakness coming through on the british pound. euro stocks dropped further down. opening pretty firmly, solidly in negative territory. the sector breakdown for european equity markets. we were flagging a couple of sectors to keep an eye on, tobacco stocks, san francisco banning the e-cigarettes. keep an eye on the chipmakers as can all beinfineon in focus as we got news from another chip busi

what will jerome powell have to say about it today?mberg business flash from debra mao in hong kong. >> boeing comes back with the showstopper deal. a letter of intent for 200 of the grounded max jets. 24 commitment is valued at billion dollars. it gives boeing and opportunity to turn around the narrative concerning its biggest source of profit. the ceo said he would get on board the max tomorrow. the deutsche bank chief executive is planning sweeping changes for top management. he may take control of the investment bank on an interim basis while the lender searches for a permanent successor. for new plans cryptocurrency are facing angry pushback from lawmakers. chairman maxine waters urged halting development of the token until regulators can examine it. others question if the coin called leeper would have appropriate oversight. that is your bloomberg business flash. nejra: the white house is said to explore the legality of promoting jerome powell soon after president trump's news about firing him. we are told the white house came to

whether that is exactly what jerome powell intended is unknown. taking hisis comments that the fed would act as appropriate that the -- as a signal that the fed is now open to a rate cut. we know charlie evans said earlier he does not see it in the economic data. said heearlier today thought the fed should prepare for a rate cut. both of them are voters on the committee. if powell is leading them in that direction, they will get what they want but it may be that he is just trying to calm market fears while they wait to see what happens. we saw the mexican president say this morning that he thought they would reach a deal and there would be tariffs -- would be no tariffs and then donald trump said there would be. that, is theup on fed in a situation where it has to by time? -- buy time? we are really meeting -- we are really waiting for that g20 meeting between chinese and united states leadership. michael: that is exactly why i said it is not clear what powell meant. he may have just been trying to buy time. if mexico should come off the table, yo

so if mario draghi is worried about those, i can guarantee jerome powell is, as well.econd thing about mario draghi, he's concerned about low inflation and falling break-even inflation in particular. again, that's very true here in the united states. the one thing that's changed materially since the may meeting is break-even inflation is lower. so draghi was dovish yesterday i think jerome powell is going to be dovish in his communication today. and i think especially the thing that watch for is how he talks about inflation. inflation has been falling, it's been too low i think ultimately, that's going to be the reason the fed will cut rates. and i think today they're going to lay the ground work for that with a focus on inflation. so that's the thing to focus on. >> 2.08% on the ten-year the dollar the other main one to watch, especially with everything that's happened already this week. it was down about a quarter of a point going into this. >> so, you know, what we think today is that ultimately, if the fed winds up with a dovish tilt, which is probably going to hap

just getting back to those fed comments yesterday, let me detail what jerome powell said he signaled that the central bank's willingness to ease monetary policy saying it will respond as appropriate to the risks prosed by a trade war. powell said the federal reserve doesn't know how or when tensions will be resolved, but that it is closely monitoring their impact on markets. federal reserve vice chair richard clarida echoed his comments he said the u.s. economy is in good shape but the central bng is ready to act. he said he will be watching the current market conditions to decide whether the fed should go next. >> market pricing can go up and down, so we can't be handcuffed to that, but obviously we'll look at a range of indicators on where the economy is it's very simple we will put in place policies that need to be in place to keep the economy, which is in a very good place right now, and our job is to keep it there. >> meanwhile, chicago fed president charles evans said he's happy with current fed policy, but he's worried about persistently low levels of inflation. >> magnitudes

. >> coming up tonight on c-span2 federal reserve chair jerome powell on the u.s. economy. then the debate from the house administration committee on election security legislation. after that an interview with house minority whip steve scalise. house judiciary subcommittee hearing on the voting rights act and the court decision for shelby county versus holder. >> x, federal chair reserve jerome powell talks about the policies. he spoke at an event hosted by the council on foreign relations in new york city. this is one hour. >> good afternoon.

jerome powell says there could be some risks to the economy ahead.orld have disappointed on net, raising concerns about the strength of the global economy. apparent progress on trade turned to greater uncertainty and our contacts in business and agriculture report heightened concerns over trade developments. these concerns may have contributed to the drop in business confidence in some recent surveys and may be starting to show through to incoming data. so while the fed has kept interest rates unchanged, there now seems almost no doubt that the next move will be to cut them, and that could happen soon. shejust she just says the speculationjerome powell's job could be under threat. we will talk about that in our news briefing. let's go to our asia business hub where rico hizon is following the story. they have got the key building, government buildings ready. it is a hugely important visit for countries so hugely important visit for countries so dependent economically on china. let's talk about this. we are watching this visit very closely. in terms o

they said are you going to demote jerome powell. we'll see what he does, something like that. he thought mario draghi, they just did a beautiful thing. we know that they signaled they will be potentially adding more stimulus into the economy over there. what did you, what did that signal to you? what do you think happens? >> i think the president doesn't like the euro getting weaker. he thinks it is bad for exporters in the u.s. a lot of people in the u.s. like to have a strong dollar. look, european central bank, monetary stimulus, they have done so much of it, you now have for the first time in 5000 years of recorded history, we've been the last few years in era of negative rates over there. melissa: yeah. >> maybe they would push them lower? that is not the solution to their lack of economic growth. they need other reforms. melissa: but he is looking on it, saying i would like some too. if you heard larry kudlow on fox news channel earlier today, the bond market is signaling they think jerome powell is lowering rate. mr. kudlow said we wouldn't mind that. they're independen

and jerome powell yesterday.bout this, that he is aware more about the markets, how you communicate clearly what the markets. he put this holding pattern in. the fed meets next week. we saw bullard last week preempt this a little. week, expects a cut next but perhaps the ground has moved. we have a jobs report on friday, and this gives -- the comments from powell yesterday take the pressure off of him. there is a holding pattern, they are watching and monitoring the situation. all street economists are lining up for fed coats. tom: -- fed cuts. tom: it is all getting old. have central banks run out of ideas? are they running out of theories or belief in theories that work? simon: potentially. you have a conference in chicago. olivier blanc char did it a few years ago. .imon: adam posen there are aggressive policies on the table. central-bank community is happy to discuss them, still reluctant to embrace them. if you look at the amount of aftertion they have left that decade of rock-bottom interest rates, there is

paul: our top story this wednesday, jerome powell warns of english england. this sends the stocks down the most in three weeks. washington plays down this in china. the administration is demanding meaningful reforms. stockpiles continue to shrink. this could lead to rising tension in the gulf. shery: a quick check of the market close. we saw the s&p 500 for the most since may. it was already a pretty fragile session for the market. tensions.opolitical then we heard from jerome powell and also the st. louis fed president. investors did not like what they heard. check and communication stocks are leading the decline. we are also seeing the nasdaq down 1.5%. u.s. futures are not doing much. let's see how the markets are shaping up. sophie: we're looking at a tenuous beginning. these are nudging higher. the yen is looking study. -- study. eady. -- steady. goldman is seeing the silver lining, raising korea and taiwan to market rate. australia onowered bank earnings risks. stocks are nudging higher. this is head of the argan decision. we are seeing 10 year yield ho

that's what jerome powell has had the opportunity to do.e confirmation and after that and we have to make sure that he manages the economy that he believes is free of pressure and politics. that's what we should expect from our federal reserve chair. >> neil: so should the president lay off? >> well, i think it's the -- the president will do what the president will continue to do. jerome powell is committed to his independence and making sure that he makes the right decisions as he believes them to be. >> neil: thanks, cory gardner from colorado, the foreign relations committee. we are going to discuss that a little bit. because jerome powell did indicate he's ready to do something that the president has been calling for for quite some time. cut interest rates. he didn't cut today. he seemed to hint that he was very soon, maybe next month. the political box he's in after this. i've always been excited for what's next. i'm still going for my best... even though i live with a higher risk of stroke due to afib not caused by a heart valve probl

as the president opened the door to firing jerome powell. and you so accurately said, no, he can't technically do that, and not only that, it's the fomc, the federal open markets commission who has the power to cut the interest rate. not even mr. powell himself. so the question to you is, does the president even fully understand what the fed does, how it works? >> yeah, we talked about this, and you're right. it's a group decision from a group within side the federal reserve that makes the decision. all of this discussion about potentially firing jerome powell or demoting him from his position won't really have an effect. that leads me to believe that he doesn't want to fire him. because if if he fires him or demotes him, who is he going to blame for trump's failed economic policies. i'm not saying his economic policies have failed. but i'm saying to the extent he's out there saying the economy isn't doing well because of the fed. if jerome powell season the around as the scapegoat, who is the scapegoat. that's part of the equation here, we

a 2% rally after jerome powell said the bank will take, quote, appropriate steps amid the president's trade wars. the dow had its best day since january. the nasdaq closed almost 3% higher. that is a big one-day move. erasing all the selloffs monday after tech regulation. the s&p 500 also a big move up. 2%. both the nasdaq and s&p recorded their best days since january. >>> all right. "early start" continues right now as the president continues his trip through the uk. >>> president trump speaking today at a d-day commemoration, but not before making more headlines in the british media. >> i think it's more likely that the tariffs go on. >> there is not much support in my conference for tariffs. that's for sure. >> the president on a perhaps collision course with senate republicans over tariffs. >> we swore an oath to protect the public. if you don't do your job, you will be held accountable. >> the deputy who stayed outside during the parkland school shooting fired and arrested on felony charges. >>> plus a dizzying helicopter rescue that almost spirals out of control. good morning,

jerome powell feels otherwise. on top of blast being back and forth between iran and the night, more specifically the president of the united states, and, the iranian mullahs there, now of course, being fingered by the president not knowing meaning of word, nice, insulting statements. he says no more john kerry and barack obama. that is just for starters. blake burman with the latest from the white house. reporter: you had dueling comments coming out of the presidents of iran and president of the united states. first from iran, iranian president rue hassan rouhani. the iranian president called those sanctions quote, outrageous and idiotic. he also shot down the idea of any potential future negotiations between the nations adding, quote, they tell us to negotiate with them. if you are truthful and want to negotiate, why do you sanction or foreign minister at the same time? it is obvious that you are lying. well that clearly caught the attention of president trump as he took to twitter and fired right back, threateni

stocks posting huge pains as fed chairman jerome powell not only opens the. down verial tools could be here with potential money printing on steroids. mexican officials are here in the u.s. negotiating. they are confident a deal will be done before that june 10th deadline. >>> never ending loop of doom, speculation has become daily financial market coverage, often masks good news and positive developments. i will break down on why we should be actual developments more than worst case scenarios when it comes to markets and the economy. all that and much more on "making money." ♪ charles: fed chair jerome powell opening the door to a rate cut a little more today in a chicago speech. >> we do not know how or when these issues will be resolved. we are closely monitoring the implications of these development for the u.s. economic outlook and as always, we will act as appropriate to sustain the expansion with a strong labor market, inflation near our symmetric 2% objective. charles: obviously investors loving what powell had to say. those comments coming less than

here is federal reserve chairman jerome powell's news conference. it is about 45 minutes. >> jerome powell announced the -- ourcolleagues colleagues and i have one overarching goal, to sustain the american economy. at the meeting that concluded today, we maintained our policy interest rate but made changes to our statement. since the beginning of the year, we judge that our current policy stance was wrongly appropriate and we should be patient assessing the

this comes after jerome powell's comments this morning.ittle down take in the vix -- downtick in the vix. guy: europe doesn't have so much tech. some of the downturns over here are less dramatic. the dax is having a really decent day to the upside. one of the reasons for that, the auto sector driving into the upside. umphac 40 has some car behind it. ♪ guy: 30 seconds until the end of regular trading in europe this tuesday. europe does not have as much tech at the united states and appreciate we have seen the blue touch lift on u.s. markets over the last hour and a half. we are up. you can see the spanish market, the italian market do well. ,he dax is having a solid day for different reasons than some of the reasons in the united states. the dax is trading up because chemical makers are having a better day. we are seeing this rally driven by the automakers. bmw is having a good day. some of the chemical stocks are doing well as well. the ftse 100, a little bit of a laggard today. some of the safe haven plays we have been seeing as late, fo

jerome powell's use of the word "us" was particularly important.r all used to passing statements from the fed with a fine tooth comb. that "us" word is very important. nejra: christopher jeffrey, staying with us. questions of character dog boris johnson in the race to become prime minister. we will discuss that next. this is bloomberg. ♪ hey! i'm bill slowsky jr., i live on my own now! i've got xfinity, because i like to live life in the fast lane. unlike my parents. you rambling about xfinity again? you're so cute when you get excited... anyways... i've got their app right here, i can troubleshoot. i can schedule a time for them to call me back, it's great! you have our number programmed in? ya i don't even know your phone anymore... excuse me?! what? i don't know your phone number. aw well. he doesn't know our phone number! you have our fax number, obviously... today's xfinity service. simple. easy. awesome. i'll pass. nejra: this is "bloomberg daybreak: europe." we are all set for the g20 at the end of the week. some saying that is the fed's opp

some say this is jerome powell's most important decision of his tenure.ill we see a powell persuaded by the market or will he be pushed back? important fed meeting for jerome powell but i do not know if the pressure is completely on him at this meeting. ort of the markets are aware are expecting their will not be any change in monetary policy at this meeting itself. preparehas to do is come if he thinks he is going to lower interest rates down the road, he has to prepare the groundwork for that. that might be easier than if you're thinking of making a move at this meeting itself. he will be helping the market to prepare for an adjustment down the road but right now, he probably does not know when that will be so i suspect he will be quite darted in terms of how he projects the future. ok, in terms of preparing the market down the road, what do you think we will see -- will it be dropping the patient? combination of preparation will we see from jerome powell and his colleagues? approach is to send signals, dropping the tightening already implied ford 2020.

unrelenting in his criticism of the fed and more specifically of his own pick to lead it, chairman jerome powell. here he was yesterday when asked if he had considered demoting powell. >> well, let's see what he does. they're going to be making an announcement pretty soon, so we'll see what happens. but i want to be given a level playing field. and so far, i haven't been. >> so back with me right now is my colleague, ali velshi. ali, cnbc is reporting that the rates are going to remain unchanged. what do you read into that? >> so that's what we expected to happen, right? it would have been very unusual to see a rate cut right now. what we are waiting for is the statement from the federal reserve, which we now have, that says the federal reserve leaves rates unchanged and has signaled that they do not expect interest rate cuts immediately. the markets had expected that the central bank would keep the interest rates steady, and that we would get a signal that there would be rates cut in july. i would ask that if we can put out the dow right now to see the response of this. because the marke

i don't think -- neil: you and i know jerome powell.oomed across the hall from me when i was a senior and he was a freshman. we called him jay. i wish i had known then he was going to become the chair of the federal reserve. neil: was this at princeton? >> yes, it was. i don't think the president will intimidate him. neil: i was across the hall from a guy who later owned a string of delis. >> might have become wealthier than jerome powell. neil: he can't do it. the judge is saying you can't do it unless it's for real -- >> it's not me. it's the law is crystal clear on this. neil: are you absolutely right. i want to stress this again for all you people, the president keeps pushing this, it is a lie, it is wrong. he cannot fire the chairman of the federal reserve. he can't demote him, all of a sudden have him cleaning restrooms there. no matter how many times you hear this, understand that he cannot do it. this is the same guy saying tariffs are something governments pay. you don't have to worry about it. they are beautiful. maybe in his

house explored the legality of demoting jerome powell back in february. soon after president trump had mused about firing him. sources say administration officials weighed the jayibility of removing powell as a chairperson. jay powell does remain in the job. mario draghi has hit back at criticism from washington. he denies he is weakening the euro to gain an economic advantage over the dollar. he said the ecb is ready to add more stimulus. his comments weakened the euro. trump said such suggestions make it unfairly easier for european companies to compete with the u.s.. draghi denies he has any plans to weaponize the exchange rate. >> our mandate is price stability defined as a rate of inflation which is close but below 2%. that weaid a moment ago are ready to use all of the instruments necessary to fulfill this mandate. we don't target the exchange rate. >> hong kong leader says her extradition bill is lightly -- likely to progress. she said she has to shoulder much of the responsibility but insisted she would not resign as chief executive. she has been

potentially, we could be seeing more dovish messages from jerome powell and the fomc.urse, that would also impact the euro-dollar exchange rate. central bankers are very poker-faced. no one admits they are targeting the exchange rate. in reality, it is clearly an important mechanism through which policy is delivered. draghi potentially does not want to see a stronger euro adding to his problems. amanda: anybody betting against the bull market in treasuries has been on the wrong side of the trade for a long time, other than brief periods. to go to 1%ar were within a year of its current level around 2%, and 11% return in that market. will the bulls stay on the winning side of the ledger here, given what we expect to hear from the fomc? tom: our view is there is an extremely important undecided variable at way here, the trade war. everybody was surprised negatively on the trade war in may. the markets expected the trade war to go away, or the trade truce to hold. big surprise, we had the u.s. moving ahead with more tariffs. now the market expectation has long in the other

. >> then there is this, jerome powell weighed in on trade developments yesterday. >> we are closely monitoring the implications of these developments for the u.s. economic outlook and, as always, we will act as appropriate to sustain the expansion with the strong labor market and inflation near our semetric 2% objective. >> translation here. if the president sacks the u.s. economy with his trade policies the fed would have to come in and rescue the economy to bail it out. stocks rallied after those comments. the best day since january 4th. investors taking those comments as a sign the fed may cut interest rates. >> i'm happy to hear you were shocked by that. it felt like here is your bailout. president trump for your messed up trade policies. what about this as related to the mexico tariffs. this is about china primarily, yes? or is it also in case you mess up things with u.s. and mexico? >> the fed speak is very circumspect. but the point that the president is on multiple fronts in his trade war now and that becomes more dangerous for the economy. >> and encouraging, the president

he also says he never threatened to fire jerome powell afte

needs mario draghi instead of jerome powell.i quite like independence for the ecb and that would be something that would not please president trump so much. you don't have to take this question very seriously. can the fed learn anything from what the ecb is doing at this point? seems,: well, the ecb it mario draghi has kind of been able to surprise the market when they least expected it. the ecb has tended to act more aggressively. it is this recognition that one policy rates are at the lower -- being more aggressive preemptively in boosting policy and boosting stimulus is perhaps the way to go. that's one of the things that jerome powell has talked about. aboutis some debate whether the first fed cup would be 25 or 50 basis points. would be 25d cut or 50 basis points. see in terms you of the dollar euro rate this year? there has been some back and forth about the possibility of a currency war. we asked the question yesterday if the g20 would be the ideal place to kick off this currency war. clearly, each side would prefer to ha

will jerome powell surprise the market and cut rates will they raise rates?ll they say about rates >>> a story out of the middle east the pentagon sending another 1,000 troops to the region >>> and facebook making a big bet on digital money will it pay off? it's tuesday, june 18th. you're watching "worldwide exchange" on cnbc. ♪ >>> thank you for being with us on cnbc. i'm brian sullivan it's 5:28. the big story now is actually coming out of europe moments ago european central bank president mario draghi says the bank could ease fiscal and monetary policy again. either through interest rate cuts or outright bond purchases, quantitative easing. if inflation does not pick up in the eurozone the euro currency sliding dramatically on that news against the dollar we're also seeing big moves in the bond market. the yield on the benchmark ten-year bund hitting a new record low a negative yield, 0.29%. eurozone money markets are now fully pricing in an ecb rate cut by december. our treasury yields are also slipping the yield on the ten-year note at 2.05% what's that

>>> european equities hit a six-week high after the fed signals potential rate cuts this year as jerome powell flags concerns about the health of the u.s. economy >> in light of increased uncertainties and unit inflation pressures the committee will monitor the information and act as appropriate to sustain the expansion. >>> the bank of japan also holds fire echoing the fed in warning of rising risks to the outlook while attention turns to the bank of england and whether they'll stick to their rate hike message. >>> delivery hero jumps to the top of the stoxx 600 after the berlin-based food business ups its full-year sales guidance >>> now i want to bring your attention right away to a developing story in the oil space. oil prices have jumped amid another escalation in tensions between washington and tehran. a u.s. official has told nbc news that an american military drone was shot down in international airspace over the strait of hormuz the device in question was an rq4 global hawk. a u.s. central command spokesperson separately responded to charges by iran saying that no u.s. drone wa

up to 30 years in the case of switzerland right now jerome powell who runs the federal reserve bank took over from ben bernanke you know he got to testify before congress periodic like ok here's a question that maybe a sake it could ask or somebody in congress could ask your own pal next time he's in front of congress this is a simple question you must ask him mr powell tell us under what circumstances you would raise interest rates dancer from jerome powell be there is no circumstance under which i would raise interest rates the answer to every single economic problem every single number every single statistic every single market reaction is to lower rates that's the old it's like an alcoholic who drinks when they're happy they drink when they're sad they drink because it's tuesday they drink because it's daytime they drink because it's night time they're not a holiday they just drink drink drink drone pow will cut rates whether the economy is expanding whether it's contract ing who's a president who doesn't matter his dog bit him is wife hates him he's going to lower rates makes no dif

jerome powell warned about the rising threats. of the foreign relations, he said the week economic outlook was stoking concerns. >> cross currents have reemerged with progress turning to uncertainty. data raising concerns about the strength of the global economy. pricing inhave been a reduction of 50 basis points. waterbullard dumped cold on those expectations. ask inflation is running below target, which is surprising given the economy has surprised on the upside over the past two years. have been strong. in employment at a 50 year low. we are looking at inflation running below target. expectations deteriorating. growth still ok looking backward. looking forward, at looks like a slow down. yield curve. seems like a good chance to make insurance rate cuts and re-center expectations back at the 2% target. saying, of people are you have the g20 meeting this weekend in osaka. could you have waited to see what happens there? what if there is a big positive surprise? would it have been more prudent? re-centeringf expectations is not th

surgeon general jerome adams talks about federal efforts to combat the opioid epidemic. from the pew charitable trust, this is about an hour. >> good afternoon. i'm the executive vice president and chief program officer here at the pew charitable trust. i am delighted to join you in welcoming our very special guest, vice admiral jerome m. adams. the 20th surgeon general of the united states. no other public-health speaker -- leader speaks with the knowledge and expertise and moral authority that comes with being surgeon general. and that's why when dr. adams speaks, americans listen. behavior changes and lives are saved. and in the very best tradition of previous surgeon generals who educated the american people, rallied the health care community, and changed the culture surrounding tobacco, hiv, nutrition, and other public health challenges, dr. adams is now leading the fight against the epidemic of opioid misuse. opioid overdoses were responsible for nearly 48,000 deaths in 2017 and 2 million people in the united states suffer from opioid use disorder, which we know is

of pushing legality jerome powell out of the fed chair.s leader says sorry, but protesters say their ultimatum still stands. ♪

yvonne: the president also says he never threatened to fire jerome powell. and it is selling most of its chinese plants as online retailing takes off. the focus shifting from central banks back to trade ahead of the g20. president trump's administration up in the anti-by blacklisting another five chinese tech companies. yvonne: perhaps dampening the prospects of getting any kind of deal at the g20. seems like when it comes to the oil market this escalation of tensions with iran, it perhaps is offsetting what we saw last week on the markets. a lot of uncertainty on the geopolitical front. david: on one hand you have that of grants. terms great headline here out of bank of america. they released her latest report. g20 plus fmoc equals perhaps a good formula for ef. we are flat on the benchmark. coming off three weeks of gains for global stocks. four weeks of gains. study in the treasury market. flip the boards and look at where we are on the currency markets. also on china. where are we here? i am looking at a lot of the pairs. dollar is still on the back foot

federal reserve chair jerome powell's job also may apparently be on the line.just a few hours the fed will announce around 2:00 today what it'll do with the interest rates. it affects everything for you. it comes as the president wraps up his pressure on powell suggesting he may potentially demote him if the fed does not lower interest rates. christine alesci is with us. wow, the fed is supposed to be always politically independent, apolitical, and yet the president is trying to have his way to boost economic numbers as he kicks off his campaign by telling the fed what to do. >> yeah, this is really remarkable action and again taking a shot at the fed's independence. to your point the fed is supposed to be 100% focused on making sure the economy is doing well, and it's supposed to be totally independent of the political cycle and because the american people comes first when it comes to fed, not whether somebody is going to get re-elected, and the president clearly trying to pressure the federal reserve to lower interest rates which will boost the economy and he

the president didn't outright deny a bloomberg report that he wanted to demote jerome powell.licly about how he regrets choosing him but apparently didn't go anywhere. now he's saying let's see what he does. what dough think of the whole become and forth, fire the guy and can't fire the guy, demote the guy. what do you think? >> you know, i don't have a comment directly towards one person. my general comment would be this. the price of money, the interest rates, is the most important signal throughout the economy. when the government fixes the price, you get the same distortions when you fix the price of bread. then you distort the market. we don't get feedback to know when we have overbuilt or overextended or entering into a new phase in the business cycle. you can't really determine when the business cycle comes or goes without fluctuating interest rates. i'd appoint somebody to the fed that believes in ling the marketplace work more in the arena of interest rates. >> neil: so don't lower interest rates? >> i'd let the market decide. it's like asking me, would you rather hav

you heard him there, jerome powell.nd he says that business conditions really changed, sentiment really changed going back to may the 1st. that is when the rhetoric ratcheted up for u.s. china trade tariffs. but also interestingly enough, also asked about the new facebook cryptocurrency, how the federal reserve views libra. >> given the possible scale of it, i think that our expectations from a consumer protections standpoint, from a regulatory standpoint are going to be very, very high. >> there you go. wide scope for the federal reserve for enforcement. the market has 100% penciled in a rate cut for next month. back to you. melissa: wow, susan, thank you. connell: talk about microsoft. microsoft was a drag today on the dow. you see the stock down 3%. jackie deangelis more from the new york stock exchange. reporter: connell, that's right. microsoft was down 3% a loss leader on the dow, contributing to a 179-point loss today. comes from a report from jeffries. analyst saying valuation for microsoft is just too high, cal

charles: president trump wrapping up criticism of fed chair jerome powell today telling fox businessot doing a good job, renewing calls for rate cuts. the president wishes ecb president mario draghi was our fed chair. hillary vaughn is at the white house with the latest. hillary? reporter: charles, the reason why the president said that is because draghi has cut interest rates in europe which the president says is smart and makes them more competitive. even though fed chair powell has hiked interest rates nine times during trump's terp, the president said on fox business exclusively he is not planning on firing or demeeting chairman powell. >> i never suggested i was going to do that. i do have the right to do it, but let me just tell you, he has to lower interest rates for us to compete with china. what they're doing is pouring money into the economy. and they're lowering rates. reporter: in an exclusive interview with fox business's maria bartiromo, president trump said rising interest rates makes u.s. less competitive and dealing dealing with retaliatory tariffs from other countri

the market move, much brighter at this hour after fed chair jerome powell pulled open the curtains to let the sunshine in by hinting, in fact it was more of a blunt statement, that rate cuts could be in order. in fact, he said quote, appropriate, if the trump trade wars slow down what is a robust economy. dow jones industrials up 436 points. s&p better by 48. the nasdaq, muscling higher by a full two percentage points or 160 points. as the president awaits the guest of honor which do include prime minister theresa may, earlier he stood side by side with may at a joint news conference. it is most likely the last time the two will share the same stage as the uk prime minister is expected to step down in july. brexit, one big theme of the news conference but trade took center stage. president trump promising a u.s./uk trade deal would be quote, phenomenal, and would double or even triple, he said, the volume of trade between the two countries. but causing a little bit of stir here, the president tested the british stiff upper lip, saying britain's national health service should be part o