there's another side going on with jim bullard and what the u.s.ed should do as far as putting qe on hold, as far as being more dovish. you have the kind of response like him a weird response out of the austrian national bank novotny, awald voting member on the ecb and he is saying that the markets have overdone. qe, that it will start in december at the earliest. >> remember everyone got comfortable because they said there will be a big bond buying program. we never heard news that it was happening and not to have somebody who is this much of an insider say well, the expectations are exaggerated. what power does the ecb have? what action are they taking? it feels like nothing. that is why so many people are super negative on europe. >> we were talking to mark kiesel, and i said it is what is happening yesterday and today be enough of a banking that wolfgang sits down and let's mario draghi pull out his bazooka, and he said he thinks that is the case, but now you have someone sitting on draghi's council say not so fast, we will not be buying abs un

jim bullard suggested the fed consider holding off on ending the bond program at the and of this montha halt to decline expected in inflation. bloomberg they said fundamentals remain strong in the u.s. but your -- weakness in europe is to blame. >> for a long time they said the qe program would be open ended and we would be able to adjust it in response to developments, this is a serious macroeconomic development. >> vladimir putin is threatening to cut gas supplies to the ukraine if the government and kiev diver fuel for domestic consumption. chancellorthe german angela merkel criticized the government. sales, extendr the game for the 13th straight month. it hit a 2014 low in august. registration increase by more than 1.2 million in march of this year. another top story we're shoemaker,he luxury braces for market volatility and has gone public. share, a lot of people with a slightly better share than the shoes perhaps. let's go with the luxury reporter, andrew roberts. the owner of jb has priced at the bottom of the rage -- range, they suggest that the price is right, and it is extrem

investors like what they heard from jim bullard. bloomberg tv that the central bank should consider delaying the end of q.e. meanwhile, european commission president stressed calm amid slower global growth. >> of course we have to take it seriously, but i think there are no reasons for panic or alarm. >> the fight against ebola continues, but in washington,

some are at odds, jim bullard said yesterday the fed should consider lowering the expectations. it is not clear where fed chairman janet yellin stands, she made no mention of current monetary policy, but instead spoke about income inequality. >> instead, the continuing increase in inequality in the united states greatly concerns me. the past several decades have seen the most sustained rise in inequality since the 19th century. i think it is appropriate to ask whether this trend is compatible with values rooted in our nation's history. >> if you really want to read the tea leaves the absence of any comment on current economic policy could be a sign to despite the recent market volatility, yellin is content to leave in place for now the market expectation that qe will end as scheduled in october. for "nightly business report," i'm steve liesman. >>> still ahead, look follow steady eddy stocks to buy and hold in this volatile market. our next guest has a list of recommendations. that is next. >>> the u.s. now has an ebola czar, president obama has tapped trusted political adviser

i do not think what jim bullard said today represents what the federal receive is thinking. people -- gerri: why such a big reaction in the market? if bullard doesn't have coattails, if he doesn't speak for the consensus why does the market turn around like that? >> market overshoots and it is often illogical. i think, that is just. that is what we see all the time. he is one of 17 officials. he has gone out on limb before and the fed hasn't followed what he did. the message coming out of the their policy is pretty much steady as she goes. they're planning on ending program at the eed of the this month t would take a major turn around in the economic outlook to change that. let's not forget -- gerri: suffice it to say, these markets were -- go ahead, jon. >> well, we're goinn to get growth numbers in another week or two that suggest the economy is growing at a 3%, grew at 3% annual rate in the third quarter. gerri: well from your lips o ggd's ear. >> the fed is well aware of that. gerri: i hope you're right. >> they're not going to turn on a dime, oh, let's keep doing the bon

. >> i think it's comments of jim bullard and maybe suggested the fed may not end qe. >> not the only. >> that's followed up of an interview of boston saying nothing of the kind and seemed to suggest we were right on track. comments over the weekend. richard fisher, as well. the plurality of voices led stability. >> i think -- >> i remember no idea, we looked at alan greenspan's briefcase to know the policy. you remember that. >> i'm from the old school. i don't think that these fed guys should be talking so much at all. okay in the actions speak louder than the words. but i'm afraid i don't agree with you on some of these presidents. they change the positions a lot. one guy's talking about qe may go on for longer time. john williams said that just a few days ago. that was nonsense. no business saying that. bullard, what's his name? >> bullard. >> i don't know him. not personal. he flips. he flips. one month one thing, one month another. that damages the system. on the positive side -- >> told him to talk to the hand today basically. >> on the positive side, i give ms. yellen. i'm a m

jim bullard doesn't even vote on fed. they haveetheir fingers on the scale as they leave the market this is experimental monetary policy. massive liquidity and rally. the, so we'll get this as we figure out if they can leave and what pace they will leave. if they're leaving too fast, that what caused this week a lot of it, uncertainty over all the other things. if the fed is leaving, get out and cash in our chips. liz: some would argue, i will bring hank into the conversation too, crude oil falling below $80 a barrel was in the market psychology of many participants. you're picking a lot of energy related nnmes. we'll put them on the screen. where do you see the move back upward after oil as fallen so much taking potential profits out of moves for these stocks? >> first of all, anytime you get a great, high quality companies at bargain based prices like you are with exxonmobil, chevroo, schlumberger, you should take advantage of it and not worry about the near term and know you will make money intermediate and long term o

let may play what jim bullard said about inflation -- my forecast is for rising inflation so i am concernedbout rising inflation expectations. the five-year tips have declined below 1.5%. the five-year forward is down permits previous levels. the central bank has to guard against any expect haitians in the market that was suggests this will not have its inflation target so you have to be credible. clearly, he is looking at what the markets are pricing in. market, theps market price is insurance premium. it's not a pure measure of inflation expectations. it's inflation expectations plus some risk premium. that theould mean inflation expectations of the tips market should be higher than the real inflation number. of what percentage of our foreign trade is in europe, they are having an effect on global prices. the same thing with interest rates. part of the reason why interest rates are so low here is because when global bond managers allocate, they see low rates in germany, they affect u.s. rates and it does not matter how much trade we do. in a global market, it's the last traded price is ev

jim bullard joined mike mckee he wants a halt in decline and ablation expectations.ll tell you what he thinks the fed should do and what it means for interest rate expectations coming up after the break on "bloomberg surveillance." ♪ >> good morning, "bloomberg surveillance." green on the screen. let's look at top headlines. smoke the pipe, struck the dog, it is going to be ok. shares of google are trading lower. missing estimates. the ceo has been looking for opportunities beyond desktop-based search ads. investing and business software to mobile services to glass to driverless cars, take your pick. james, said yesterday technology has become "the tool of choice" for terrorists and encryption her's the agency's ability to collect data that is authorized to collect. j.p. morgan chase beginning to build a vast corpus campus. could be on the far west side of new york city. negotiating with officials over a possible $6.5 billion complex. it would include two high-rise towers and become home to 16,000 employees. those are the top headlines. it is amazing. i was watching

jim bullard doesn't have a vote. he thinks it will move to raise rates in the first quarter of next year. reality check for the market, the market here's what it wants to hear and a here's the stimulus cap stays on. great on yields this week. tenure not 8.94%. at 8.94%. now higher at over 300 basis points in a month. bella program? the markets are letting them know what they think about that. england comes out this morning and make some comments you know what? the data is making me feel a little bit gloomy, maybe we will also have low rates for longer. you've heard the message. was meant tongland be the first to operate. what is your call? >> it will be interesting. i think people will pay attention to that. the central bank story is front and center. how much is behind the rally we're seeing today? hard to tell. maybe people are bottom fishing. is about to step up with "surveillance." >> dow futures up 180 points. you're right about the hope the central banks will not step in, but at least to the right things. we ha

jim bullard's comments providing some type of support to the markets yesterday. >> and i think this isnteresting that the markets react to that. that means markets can move around too much on monetary policy. but if that is the case that the fed is considering changing its tact after ten days of volatility, they should be looking at the fundamentals. >> i think if the data continues to worsen, that is when qehad could be back on the table. >> qe4 could be a massive, massive change for the markets. i think, a, a fed person should come out. it's a significant change in comments and the market reacts tithly do it. >> dow jones indicating a move by 150 points to the s&p 500 up about 17 and nasdaq up 34. of course, it was a volatile day on wall street. taking a look at the ftse cnbc global 300 index, we are sharply higher on the day, up about 27 points or 0.5%. we get china's gdp figures next week. diving into the european markets, we did see a bit of a rebound. yesterday traded at a 13-month low. france, up about 73 points. and across the board, a couple of big movers here today in italy.

then, again, getting different messages out of the fed like we did today from stanley fisher and jim bullard versus yesterday's minutes, this is all very confusing. >> by the way, just to interject. stanley fisher, the new vice chair of the fed said today -- he put a time frame on the phrase considerable period of time. he said it's anywhere from two months to one year. >> and you can imagine how much differently those comments could have moved markets against a different back drop here. the original clarification of six months created a big selloff over the summer before she walked that back. he now trying to expand it. any time you put two months out there. rick santelli, let me pick on a phrase kevin used. island of improvement. can the u.s. remain this island of improvement if the global economy continues to weaken? >> well, i think that investors can think that. i think they're going to be in denial if they don't already know the answer. you know, super mario draghi has been demoted to a luigi plus. i'm sorry. but when he made a statement today that we will do whatever it takes, i'm par

listen, if you want to talk about jim bullard, judge, you talk about him. >> what he said. why don't you want to talk about it? >> then talk about it i have nothing to add into that. >> why don't you want to talk about it, what he said? >> because i don't look at individuals making the entire difference in the market and that's where you and i differ, judge. there's a whole set of actual fundamentals that the markets are going to have to pay attention to. bullard, yellen, yes, they are important. he is a non-voting member so he really isn't that important. when he grabs a microphone, you pretty much know what he said didn't make any sense. one hand, dropping energy price is good for the consumer but oh, my god, it's deflationary, do more qe? make any sense to you? [ overlapping speakers ] >> falling oil prices do the qe for the fed. >> yeah, why are they falling, judge? why are they falling? >> you bring up a central point here, what i want to talk about, his comments -- >> lack of demand is a big factor and it's not a good thing. >> doesn't make any sense. all i'm saying,

louis fed president jim bullard, who we talk to regularly on this program, suggesting the central banks should consider its taper. that's been fueling some stock buying. >> i heard a guy say that on this show the other day. his initials are j.k., i think. >> what about liesman? liesman would be balder today. but he -- he's not real slick, but he did not take -- >> he was smart enough not to -- >> he was thinks like six months from now, a year. next day. next day. i wasn't going to say this because we've got headlines to get to, but in the old days, there was this funny cartoon that said the market sold off early in the morning when it was noted that an asteroid would destroy the earth on saturday, but rallied at 10 after the money supply came in lower than spen expected. so now ebola is the same, but qe might continue! that is sick, andrew, isn't it? >> the market reaction is what's sick. >> i don't think it's -- i'm just sort of making a point. but for some reason, i read about nigeria and sen gegal, an in both places did epidemiological detective work, they circled it, they -- on mond

. >> the other thing is, i was speaking earlier with jim, and he was saying bullard said that the economic fundamentals of the u.s. economy are just fine. he even used the word "strong." if he's not worried about the economy and he's talking about delaying the end of qe, was he just trying to jawbone the markets higher or help out asset prices? >> if you actually read his comments -- and he gave it to an interview -- on an interview today, they're rather confusing. he seems to be trying to say we are here to do something if things fall apart. in particular, in case we have disappointment on inflation. and a lot of this he was addressing was on the inflation front. his actual commentary was a little on the confusing side. but the street took the basic comments from mr. bullard to indicate that the fed should consider delaying the end of its bond purchase program. that was the headline that hit first, and that was the one that traders actually traded upon. >> quick question. >> just quick. look, the fed wants to get out of the bond-buying business. all right? if you talk to fed insiders, if

. >> jim, i saw you agreeing talking about the flip flopping if you want to call it, james bullard saying, if conditions warrant we'll do more. >> he came out and kicked off the selloff saying the markets are anticipating that's more dovish than it will be and then i think he got the hand slapped by janet yellen like, don't freak the markets out. we are not going to move ahead of the growth. and so i think they're not seeing the growth in the data and unemployment isn't necessarily where we want it to be. you see u-6 underemployment far below where it needs to be growing and i think we'll see ratds longer for longer. looking for a raise in june by the market and positively surprised and raise after june. >> ralph, you're bullish. rick santelli made the point of the strong divergence and all of the trouble we had last week. >> phil? >> how -- >> forgive me, how do you explain away -- how do you explain away what happened last week? >> you have a fourth longest bull market and we have not had a 10% correction. >> certainly any issue of the market, ebola or isis or china or europe is going t