the markets really want hear jerome powell promise more cuts down the road. going to do as much as it can to provide a buffer against the current trade war and the weakening global outlook. but it is very possible that jerome powell may not deliver on that promise. and it is notjust wall street screaming for more stimulus. the president tweeted... ..and compared jerome powell in another tweet to a golfer who can't putt. even ifjerome powell hints that he will cut interest rates, will it be enough to satisfyjittery financial markets and a president eyeing re—election. most observers think not, putting the world's top central banker in an no—win situation. michelle fleury, bbc news, new york. youtube's owner google says it has shut down 210 channels that were part of what it calls a "coordinated" attempt to post material about the protests in hong kong. the search giant linked its move to similar action taken by twitter and facebook earlier this week — but it stopped short of explicitly accusing china of a state—backed effort to spread misinformation. shara nji

essentially we are waiting for that testimony byjerome essentially we are waiting for that testimony by jerome powell that testimony byjerome powell. a lot of investors are waiting to hear what he might say or what sort of signals he might say or what sort of signals he might say or what sort of signals he might give towards the direction interest rates. that's it for the programme. thank you for watching. this is bbc news the top stories this hour: brazil's president says his government does not have the resources to fight wildfires raging across the amazon rainforest. president macron tells his british counterpart they can be no major changes to the brexit agreement but some minor alterations may still be possible. the world wide fund for nature says english rivers are being "used as open sewers" with 86 % of them failing to meet clean water standards. scientists are looking to the river ingol in north norfolk as an example of a successful project. richard daniel reports river ingol wetlands a place where native species thrive. yet 18 months ago none of this existed. it is a man—made reserve built

negative reactions compared to what we saw from jerome powell.ollar strength has been a feature here with the market readjusting expectations, how much rate cuts you are going to get. we see some dollar strength coming through and we see weakness and some of these emerging markets. let show you what has been going on with treasuries. treasuries keep popping in and out. essentially, we are seeing movement in the curve. you mentioned some of the volatility around the press conference. big moves at the end of the day. a little movement 5-10 year horizon. commodities really slumping. we will talk to the shell ceo in a moment. iron ore down. some of the dollar effects, translation if we are not going to see more interest rate cuts, that does not ask that -- support the economy route -- globally. let's talk about the fed meeting with our market manager. thisould you cast decision? would you say this is the fed buckling to the pressure of president trump? sensible midcycle adjustment, extending the cycle for the u.s. economy? very hard forwas powell. i

overall, the markets gave jerome powell a thumbs down.t he talked about was midcycle easing though he contradicted it by saying i'm not talking about one rate cut. it was such a difficult messaging to get across come i of't know your view if he failed or not. he did givems like into the market in terms of easing in the first place, right? the u.s. economy is still on strong footing, growing more than 2% at a more than 2% pace. 2%, wages are growing at more than 3%, so why cut in the first place is the question. but if you are going to do it, you might as well go with gusto, and it was more of a yawn than an awe. nejra: look at the recent data, the fed should not be cutting in its position. you even had scott minor of guggenheim saying that before the meeting but had he gone bigger than 25 basis points, with that cause more concern? in terms of outlook, the market will always want more and reprice. i wonder if whether what we got yesterday was a little blip and reposition. we are seeing steepening today on the two's, tens after a flattenin

there was confusion in jerome powell's comments afterwards. do you think that he is means to leave it one and done? >> i personally feel vindicated i have been arguing nine months, somewhat controversially that the fed should lower rates. i think the president agrees with me, the rate increases in september, the catastrophically bad decision by the fed by jerome powell and federal reserve board to raise rates in december which really hurt the economy. you remember what happened in the stock market. it fell by 2,000 points. they need to reverse. essentially what the fed did yesterday was reverse the december rate increase. that was a good solid start. they have to reverse the there is all this talk about interest rates. neil: why do they have to do that? >> because there is not enough dollar liquidity in the economy right now to sustain the three to 4% growth, when we put the economic program together for trump we believed you could get this economy growing at 3 to 4%. by the way, neil, if you go back to the summer of, last summer would were gr

the president absolutely right about federal reserve chair, jerome powell. powell clearly does not know what he is doing or at least saying. when interest rate cut was announced today to pm the market remains steady. it sold off 36 minutes later when powell insisted that this was not a trend but an adjustment. here is his rather ignorant statement about interest rates at his press conference. >> to ensure against downside risk, to provide support to the economy, the factors are, where factors are pushing down on economic growth and to support inflation. i do think it will serve all of those goals but if you were thinking of it as essentially in the nature of a midcycle adjustment to policy. lou: a midcycle adjustment. investors did not want to hear that nonsense. his remarks came at 2:37 pm for the next 16 minutes, the dow sold off. 279 points. the nasdaq fell 155 points. s&p 500 fell 46. edward lawrence has more in the story tonight from the white house. >> yes as you know, the federal reserve rates a court reporter not everyone in the room it was voting wa

this decision, they report, has led to a row between federal reserve chairman jerome powell and president" according to the guardian, the uk government is setting aside an extra £2 billion to prepare for a possible no—deal brexit, with money being spent on stockpiling medicines, extra border officers and a public awareness campaign. labour say it's an "appalling" waste of money. the times leads with news of a summer of potential misery for travellers. british airways passengers are facing travel chaos at the height of the summer holidays after a legal bid to halt a hugely damaging pilots' strike was rejected. the daily telegraph reports that the british army is launching a new division dedicated to fighting cyber crime the papers says it will specialise in information warfare and will react to "fake news" attacks on britain. and staying with the telegraph, the paper claims that shoppers are facing an array of 58 baffling recycling symbols, leading to widespread confusion. there is a test coming up so pay attention. with me is lawrence gosling editor—in—chief of what investment. we editor—

jerome powell for whatever reason and the fed decided not to follow the markets. they decided they were smarter. i can't tell you how many little snowflakes are running around saying well the fed should be deciding where these markets go. >> i'll make a bold prediction that the fed eventually will follow the markets and maybe even get ahead of the market and so as i stated earlier there's a good chance we may see fed funds at 1.5% if that's where i believe, the 10 year treasury will be. >> john, let's face it. share odd powell really overestimates his ability to communicate with the markets and he's shown time after time he's not able to clearly community whereas chair yellen if he didn't quite have the answer right she'd pull out her script and start reading straight from what the staff prepared her for. powell has never done that and overestimated the capacity. lou: very quickly because it's a matter of great interest to all of our viewers and most of the nation. devaluation of the wan, this is having a broad global impact though. >> definitely hitting all of th

jerome powell deserves some shade, so to speak.december when he was tightening, he didn't see the numbers coming that showed he shouldn't be tightening. the trade stuff was starting to impact gdp back then in december. it obviously came out i guess in the fourth quarter gdp numbers and we saw like a slowdown to 2.1%. but he should have seen that and he didn't. so when you are the ceo of the economy which he kind of is chairman, he's the president and ceo in many ways, the fed chief, you screw up like that, you got so people are saying that you know, particularly given the fact the president has no confidence in the guy, he might be a good guy to go. but the other guy i think when you talk about leaving and to straighten out policy is peter navarro. here's why. let's be real clear here. everybody knows china's a bad actor. peter deserves credit for being an academic that called attention to china very early on. but the way to combat china most people in markets and most mainstream -- by the way, larry kudlow would say this. he won't

viviana: traders are looking to jerome powell for guidance. licymakers made it clear they are opposed to lower interest rates. at a speech in jackson hole, powell may make it clear. markets pricing in a quarter-point rate cut. the new tariffs donald comp -- trump is threatening could drag the -- to the lowest and's 1990. that since 1990. economists say gdp expansion could be cut by half a percentage point. japan's prime minister accusing south korea of undermining trust between their countries. south korea will withdraw from an agreement as japan does not consider export agreements. u.s. aviation regulators looking for a few good airline pilot. experiencelyers with flying the boeing 737 max. the pilots will come from around the world and some will be seasoned captains. the faa wants those with as little as nine months of experience. global news 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i am viviana hurtado. this is bloomberg. nejra: thank you so much. world lead

what sort of tone is jerome powell going to take?rs, he actually does that the path of monetary policy, or will he just tell a very fine line. on,: don't forget, later james bullard is talking. the interesting thing i think is yesterday we got this push back against cuts. the s&p continue to rally and is being led by bancshares -- bancshares. the economy is getting better and that interest market will not be as compressed. it will be good to see what the reaction is today. futures are positive. let's check on markets from around the world. joining us from our bloomberg partner in mumbai is niraj shah, and in london, annmarie hordern. give us a look at stocks in india after we got this big red headline. >> a much-needed release. yesterday was a big bank cut down. indian markets were down and out. session, a percent and a half. the nifty bank, the one in the red, down 5%. the finance ministry official has told bloomberg there could be a reconsideration on the tax and the surcharge levied on investors in the budget gone by. between a sa

federal reserve chairman jerome powell has been under pressure from the president to slash the interest rate soon a powell has given little and the occasion of any change to interest rate policy in his speech to the u.s. central banks will gathering in jackson hole wyoming here he is walking with outgoing bank of england governor mark carney after delivering his remarks the world's most powerful central banker said the u.s. economy continued to perform well but he did note the risks linked to its trade war with china and said monetary policy alone cannot fix all the potential economic fallout from it. and we're back with yes quarter on wall street now again what is wall street expecting now with regard to future rate cuts. jerome paul as expected stood not clearly mentioned that we are going to see another interest rate cut anytime soon he said that he's going to he and his fellow. members of the federal reserve are going to close the observe the developments and then act accordingly but the bets on wall street are crystal clear investors here see 100 percent chance that we will see ano

but jerome powell seemed to not open the door wide open for that next 25 basis point cut. so although i do agree with you that offsets of large fed cuts can help to a certain extent offset some of the trade impact of tariffs, i question the fed's commitment to actually delivering on those cuts that are needed and i think that that's going to keep investors kind of half invested i think investors still remain invested in what they arn risk right now. >> bill we appreciate your time helping us figure out where we are and where we may go from here based on this week's turbulent events >>> here's what else is coming up on "the halftime report." >> it's not hip to be square today. a double downgrade for the stock. it's our call of the day. >>> get ready for another big week of earnings uber, disney, lift, shake shack and more. >>> and our investment committee is answering your questions. go to cnbc.com/halftime. "the halftime report" is back in two minutes. how do you gauge the greatness of an suv? is it to carry cargo... or to carry on a legacy? its show of strength... or its

guest: president trump selected jerome powell for this position. that was almost two years ago now. things have changed a lot in that time. president trump has set up chairman powell to be his fall man. any time dog market goes down or anytime we have some weak economic data, boy, is it fed chair powell's fault. fed chair powell has tried to say out of this. he does not punch back very hard. his point has been america, mr. president, we are working for the same goal and that is to keep this expansion going. down with the fall back into a recession that will mean people out of jobs and people losing money. he has said we are doing everything we can to keep the economy on track and this should help the president and the country. host: the president is also tweeting about the fed. he continued by saying, "things are going very well with china. they are paying us tens of billions of dollars made possible by the many devaluations and pumping in massive amounts of cash to keep their systems going. so far our consumer is paying nothing and no inflation. no help from fed." guest: that's righ

fed chairman jerome powell didn't say the interest rate cut would be the only one but he did say the.

in explaining what was seen as a precautionary measure, said chairman jerome powell was seen as a precautionaryaid chairmanjerome powell cited international concerns over domestic ones. it is intended to ensure against downside in risks from week growth from trade policy and offsetting the effects it's having on the economy. after the announcement, donald trump expressed his ongoing displeasure with the fed, tweeting mr powell and the central bank have let us down by not taking a more aggressive stance on interest rates. earlier, when asked whether the fed caved to white house pressure, mr powell had this to say. we never take into account political discussions. we also don't conduct monetary policy to prove our independence. us stocks fell on the news. wall street hoped many more cuts would follow, but mr powell said this was not the start of a long cycle of rate cuts. rather, it would continue to monitor the us economy and act as appropriate. michelle fleury in washington. the third move comes as central banks around the world are starting to loosen policy in the face of trade wa rs loosen po

we also have the speech by fed chairman jerome powell we'll bring it to you at 10:00 a.m.omorrow, the headlines from that as well. we can't -- there's no cameras allowed in the meeting then later on in the day we have mark carney, the governor of the bank of england. we have a whole sort of u.s. and international perspective about where interest rates are going. >> steve, it is karen. let me ask you, do you think we will come away from tomorrow, from powell and carney, with clarity? >> reporter: you know, that's a good question. i think the interest is no the reason i think the answer is no is because i don't think that the course of policy in the u.s. is very obvious. i was thinking back on other times that the fed has changed course, cut rates or hiked rates, and you had unanimous on the board because the case was easy to make we are running at trend here step back and tell yourself something. the federal reserve cut interest rates at record low unemployment that fact alone should be enough to say, you know what? these times are different. it is a new set of rules, and w

the chinese leader or jerome powell?s been pressuring the federal bank to do more to stimulate the economy. effect however was to rattle investors, worried about the deepening trade conflict with china and the damage it is doing to the global economy. i asked the bbc‘s chris buckler in washington whether or not mr trump can indeed order us companies to close their operations in china. ina in a series of furious tweets he attacked china and appeared to heighten the trade war and he ordered, that is the word he used, ordered, that is the word he used, ordered american companies with interests in china to look elsewhere to base their operations. and what sparked this is the plan of china to impose up to 10% tariffs on $75 billion worth of american goods. that is the latest strike in a bitter trade battle between the countries. the us had already announced plans to impose 10% tariffs on some $300 billion of chinese imports by the middle of december. and president trump hasjust announced that in response to china's decision h

tomorrow, investors will be looking closely at what jerome powell has to say.t that when the fed last cut interest rates in july, he referred to that cut as a midcycle adjustment. iw, if you look at the data, think actually he will probably stick to that approach. we will have a very measured reduction in interest rates. i would be very surprised if you get a clear statement from powell tomorrow guiding us to more aggressive rate cuts. i think there is scope for market disappointment tomorrow. matt: how disappointed will the markets be? at what point do you think the markets begin to push jerome powell to make the moves it wants? bob: if you look at the futures markets, they are basically saying or discounting that the fed funds rate will be cut on average 65 basis points between now and year-end. to three means is two cuts. our view is that there will be a cut of 25 basis points in september. there may well be another cut of 25 basis points later in the year, possibly the december meeting. data,k given the activity the service sector data, the inflation number

with a fresh round of tariffs on american goods and after the feds jerome powell didn't respond the way trump wanted him to. some worries they can't drink away french bent nerves are anxious over donald trump's threat to slap levies on their wine. a historic free trade deal between the e.u. and the worthless or blocking they go up in flames as pressure mounts on brazil over the wildfires of raging in the amazon. basin of the w. business i'm joined now in berlin welcome now this may surprise you but china's earlier unveiling of a new round of retaliatory tariffs on about $75000000000.00 worth of u.s. goods at an angry response from president donald trump he's an entire tariffs on chinese goods starting its. tambour that's after an earlier tweet storm accusing china of costing the us trillions of dollars he also said u.s. companies were quote here by order to immediately start looking for an alternative to china now just as a reminder the latest round of tariffs from beijing was a response to washington's last move to tax an additional $300000000000.00 worth of chinese goods taking effect

jerome powell for whatever reason decide not to follow the markets.nowflakes are running around saying the fed should be deciding where these markets go. >> i will maker the bold prediction the fed will follow the markets. i stated earlier, there is a good chance we may see fed funds finishing near 1.5%. that's where i believe the 10-year treasury will be. >> chairman powell has shown time after time he's not able to clearly communicate. chairman yellen when she didn't have the answer right. she would start reading from what the staff prepared her for. chairman powell doesn't do that. lou: it's a matter of great interest to all of our viewers and most of of the nation. devaluation of the yuan, this is a a global impact. >> it's hitting emerging market currencies. it will make matters worse for the emerging market countries that china is trying to recruit with its growth initiative. brazilian currency is off by 4.5% since late july. lou: thank you, sir. i think you have got this fed thing figured out, bill. we'll be right back. thanks so much, both of

all eyes on the fed chair jerome powell and what he will say about effectively getting the global economy reveal how it tracks you — it's been another busy week in the tech world. our technology correspondent rory cellan—jones is here to look at some of big stories making waves. rory, good morning. how are you? good morning, iam rory, good morning. how are you? good morning, i am well. let's start with this story about youtube and the taking down of this, these channels, 200 plus channels have come down. we have seen similar moves from facebook and twitter over the hong kong protesters, interesting how this story is playing in china as well. this has been rolling all week and we were waiting to see whether google, which owns youtube, followed facebook and twitter‘s lead. earlier this week they shut down a whole bunch of accou nts they shut down a whole bunch of accounts which they basically accused china of running in a kind of disinformation campaign. google has done the same, 210 channels on youtube, saying they are part of a coordinated attempt to post material about the protests in ho

jerome powell gave it a little more after boost. he seemed to be more dovish. he seemed to suggest he was ready to act if need be to step in front of the economy. then came the tweets. my goodness, all bets are off. all of sudden donald trump's reaction sent oil prices back down again. on the other hand, connell, look what it did to gold today. incredible day. safe haven buying like crazy in gold closed at highest level since 2013. it was the a real rush into the metal. gold is up this month, 7%. if you want to buy gold for christmas, this is the time to do it. put those things over the weekend, it will be very hairy. gold if you see more headlines that could explode this week. that looks like the safe haven play. oil on the other hand may be bad because they will worry about demand. connell: it will be interesting weekend. we'll talk about g7 coming up as well. phil, thank you. melissa: i like idea of gold for christmas. i like idea of gold for christmas. taking on china, federal reserve, president trump upping pressure on jerome powell amid escalation of trad

trump he's repeatedly pushed for a larger interest rate cut in fact saying today that fed chairman jerome powell had let him down jerome paul's delivery was in line with a dry and factual tone fed chairman have always displayed yet there was a hint of caution as he explained the committee's decision to come.

i would say that, but i'm not jerome powell. i respect his unique role that he has to play and the way he has to guide himself through all the land mines in washington, d.c. >> being he doesn't want to necessarily reciprocate and join this fight that the president seemsinitiating with him. that's what you're saying. >> yeah. again, i think he's very careful about saying that, you know, he's not getting involved with fiscal policy or trade policy. that's not his role. he sticks to monetary policy but again monetary policy can jcannot offset the concerns about the trade. that needs to be made clear. the president's reaction really to the decision was not as harsh as i expected. i expected him to go after powell and not be able to control his committee, have two dissents when you think of what trump said thus far about the meeting, it's pretty mild >> give it time. >> i was just going to say that. >> this could just be the beginning. shannon has a question for you >> sure. >> i think the challenge for economists now is we're seeing

. >> the president's tirade included attacks on federal reserve chairman jerome powell. he told bankers quote trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the united states. while monetary policy is a powerful tool to work to support consumer spending, it cannot provide a settled rule book for international trade. he was barely done speaking when trump fired off this on twitter, quote, as usual, the fed did nothing. we have a very strong dollar and a very weak fed. who is our bigger enemy? jay powell or xi? during his campaign trump seemed to relish the idea of remaking america's trade agreements and talked about how good he would be at it. >> trade is so easy for me. it's so obvious what is happening when our companies are flocking out. we have to fix trade and bring jobs back to our country. >> tonight, "the new york times" reports the white house was not exactly prepared for how today unfolded, quote, mr. trump's tweets caught most of his advisors and staff by surprise and prompted alarm.

trump was reading about which was the greater enemy, jerome powell or premier xi. it was really unbelievable. what are you hearing at jackson hole, what are people talking about? megan: a lot of people are talking about trade. i thought the message from jay powell's speech was that the fed does not set trade policy, and there is no precedent for how they should respond to it. they will do their best but they don't really have a framework for how to think about this. the strongest pushback we have seen from the fed in terms of trade. that being said, i don't even think jay powell's speech will make the front page of tomorrow's paper. it will be about trade. interestingly, the more important place to be right now is the g7 meeting, rather than jackson hole, although i'm not particularly optimistic about any action being agreed upon there. amanda: it is so interesting because we are worried about central banks at their limit in terms of their ability to help economies, so that the talk turns to fiscal. not a lot of physical capacity for governments around the world. d

goods have really sent the market plummeting the fed chairman jerome powell also did not help inspire confidence and esther's i they may have been looking for a stronger signal that the fed would not be raising interest rates been the fed chairman has been a scapegoat for the president there's division in the fed on the fed board about how to go forward to keep the economy afloat all of that causing powell to keep his cards close to his chest not give a lot of detail about monetary policy going forward and all that with the uncertainties in china just really spooked investors today kristen thank you very much indeed. brazil's president says he may send in the army to battle fires burning through the amazon forest but an unfolding disaster is already being labeled an international crisis that needs global action french president emanuel not chrome wants urgent talks at this weekend's g. 7 summit and he's been joined by germany's angela merkel and the u.k.'s boris johnson we begin our coverage with the latest from highly jocasta. dramatic video captures the fury of the flames eating awa

, the president at one point tweeting earlier today jerome powell was clueless.alked about this inverted yield curve where the yields for the ten-year treasury bonds were dipping below those for the two-year treasury bonds. that has been a reliable predictor of recessions going back decades. president even tweeted about that calling that phenomenon crazy but they are certainly concerned inside the president's team and we're told by administration officials that he is frustrated with the team because they have not been able to turn the market around as fast as he would like. >> the -- i mean, is there a plan other than criticizing the chairman of the federal reserve? i mean, again, this comes on the heels of the china tariffs being postponed so as not to freak people out over christmas. >> reporter: anderson, it seems like the plan is to fix the blame on jerome powell. i can tell you peter navarro was on fox earlier today describing this as a fed downturn and not a trump downturn but fed downturn after officials toting the handling of the economy. you'll recall th

matt: what do you expect from jerome powell, this weekend?s he going to address -- jackson hole is always a place for great, important speeches. but this is a sensitive time for the fed, and they seem to have not a lot of agreement. been giveninly, he's some ammunition here by the people who spoke in the last 24 hours, talking up the economy and saying there's no need for dramatic interest rate cuts. he will probably try to address it in stages, keeping the door open for a rate cut in september, what the market is pricing for. he would not want to do too much to upset that. the key, where does he see it beyond september? he may take it as an opportunity to try to calm people down a little, and indicate he wouldn't mind a pause between september and the end of the year. that won't be easy. it is a fine lien to -- line to tread. but considering his colleagues aren't really seeing anything disastrous on the horizon, he probably wouldn't mind getting the market to come back a little from the idea of rates at every meeting. he doesn't want the mar

and the action of federal reserve chairman jerome powell. president trump: we put a lot of tariffs on china today. they put a lot on us. billion -- we50 are up to $550 billion. we want that stopped. ok? we will see what happens. it depends if they want to do that. they want to have talks. i'm always open to talks. reporter: [inaudible] pres. trump: in 1977, we had the rights emergency act. have the absolute right. 1977 -- i have the absolute right. 1977. check it out. we are taking in thousands of billions of dollars. china's manipulating their currency. people don't understand that yet. at the same time, china had the worst year probably anywhere from 30 to 50 years. they want to make a deal. happy with jay powell. i don't think he is much of a chessplayer. that's what i have, what can i tell you? he is not much of a chessplayer. i am going to say prime minister ali -- prime minister albee. he is a great friend of mine. reporter: [inaudible] pres. trump: we are going to see what happens. also a goodon is friend of mine. we will see what hap

nightly business rt", i'm eunice yoon in china. >>> all of that trade tk overshadowed fed chair jerome powell'speech on monetary t policy, ade is just opothe moun central bank policymakers. steve liesman is at the annual symposium in jackson hole, wyoming. >> reporter: fed reserve chairman j. powell with his keynote speech at the annual summit here in jackson hole, guardedly suggesting that the federal reserve could ces interest r in the months ahead. even though he said the u.s. economic situation is favorable, he noted that trade policy is playing a role in a global slowdown and that manufacturing and business has weakened both. there's only so much the federal reserve can do to address trade policy but could address some of the fall-out fromt. in a cnbc exclusive interview, e chairman's outlook was backed up. >> it is favorable, the economy is in a good place but there are significant risks. the global economy is slowing. there are uncerinties about trade policy and those are factoring in. we run monetary policy for the u.s. but we have to take into account globalop devnts. they impact expor

unlikely to end with a formal communique for the first time in it's 44 year history >>> fed chair jerome powell is set to address the group at jackson hole later on today. the fomc minutes released this week showed members remained divided over a decision to lower rates by a quarter percentage point but policy makers agreed that the move should not be seen as a signal that rates are on a preset course. now this morning in europe we're seeing stocks move higher as investors await this key speech from the federal reserve chairman at jackson hole we have the ftse 100 up 0.6% the dax up a third of a percentage point and the cac and the italian index also moving higher and in italy we're all watching political developments there. the president has given the political parties until tuesday to try to get together a coalition. we're a little bit in wait and see mode when it comes to italian politics let's look at european yields. at the margin more hawkish than the market expected. this has driven a move higher in yields german bund has risen to the higher level since the beginning of the month quite a

fed chairman jerome powell says the quarter of a point reduction was designed to keep the economy growing for as long possible he start of a long-term cycle of cuts. that has drawn the ire of president trump, who tweeted, "powell t us down." michelle fleury is outside the fed and joined us with her assessment. why is the chairman saying about why he made the rate cut now? michelle: look, if you take the american economy right now, is i enjoying longest-ever uninterrupted period of growth in history. to many it may seem like a strange time to cut interest rates, which typically seen as an effort to boost the economy. but those in the building behind me are trying to do a preemptive cut. this is something of an insurance policy to make sure that the momentum in the economy continues toove forward so that all americans benefit from the recovery. what they are worried about, laura, is global growth. they areeeing weakness and particularly mentioned weakness from the eurozone and weakness in china. there is also concern about the impact that trade tensions are having on american companies. you

reporters about the ongoing trade dispute with china and the actions of federal reserve chair jerome powellpres. trump: we are going to france. where going to have a good few days. ,t will be very productive seeing the leaders were friends of mine for the most part. wouldn't say it in 100 percent of the cases. i think we are doing very well. our economy is doing great. we are having a little spat with china. we will win it. we put a lot of tariffs on china today. they put some on us. we put a lot on them. we are up to $550 billion.

those two words from jerome powell triggered a tumble in u.s. stocks despite the fed's first quarter point rate cut in more than a decade the comments dampened hopes of further cuts this year some traders said the statement itself had already proven to be a bit of a disappointment. you can see what's going on. the ftse 100 slightly into negative territory similar story in germany we've seen a strong performance in french shares fit ftse mib trading up. the euro weaker by a third of a percent against the greenback. the pound trading pretty weak at the moment, also trading about a third of a percent weaker. the dollar strength is visible against the japanese yen and the swiss franc. let's look at how the u.s. markets are shaping up ahead of today. you can see how they closed down significantly last night the dow down more than 1.25% the s&p 500 closing more than 1% lower. a similar story in the nasdaq. you saw that reaction pretty swiftly from traders in the u.s. and we will be watching to see how things shape up today on the other side of the atl