so we have also established that big trump by job opening the fed to lower rates by a 100 basis points and a gauge of quantitative easing for q e 4 he is patently and obviously buying votes which again is not only used to be illegal but so much of what used to be illegal in america nobody pays any attention to anymore all right let's move on so what do you think about rates in the us can they go negative in the us and if so can a still retain reserve currency status that being the us dollar or and will that we see a breaking of the buck remember in the 2008 crisis the money market fund is going to break the buck and alarm bells went off and they had to write a check for $17.00 trillion dollars to bail it too big to fail banks oh here we are once again breaking the buck but the question is will negative rights come to america we've got about 30 seconds and we'll hold you over but go ahead take a shot at it we got about 30 seconds wolf so far i don't think that's wanting to go that way i think they're sticking to your own lower bound and that's what that's what they've been saying i thin

it seems he is saying the fed it should be able to choose its own political outcomes and work .owards those ofon: he is vice chairman the open market committee's main jobork fed. i think he is trying for a cookie-cutter approach. ultimately, when you look at the , whether to cut by 50 or 25 or leave rates unchanged is a huge matter of surprisednt i be very if he came out when he was at the fed and made this case, but he is independent. you do not lose your ability to argue or to have views when you leave the fed. david launch flower another example of someone who left and yet remains quite interesting. , think everyone has a right when you leave a body, to comment on monetary policy. anna: there is a history of leaving central banking and being quite outspoken. thank you very much for joining us. executive editor for economics, simon kennedy. itsas agreed to sell business and alaska to another court. that ends a six decade present where -- presence were crude output has slumped. joining us is a bloomberg energy reporter. why is bp pulling out after nearly six decades? polish -- take us through the story. they have great assets and have a stake in the b

the dynamics opening that relationship. david: how much more difficult does this make jay powell's job as chair of the fed?saac: the difficulty was already a 10 given the conditions around the world. we have reached a saturation point. i can tell you it does not make it any easier. to the tradeturn dispute between united states and china that triggered this dispute. where are we right now? the president thinks we cannot -- we can get it back on track. there were phone calls, the chinese say they were not found calls. were there phone calls were not? isaac: one of the bizarre chapters in this book we have been writing will be phone call-gate. all of the dynamic swirling around that. my point appliances we are still just talking about talking. whether there were calls were not, we are still talking about talking. as we navigate this road ahead, i think about it with mile marker's and potholes. on the mile markers, we need a date for a meeting in september. on the potholes, there is always the potential for further retaliatory steps which would further dampen the hopes of a deal. in my opinion, this story has

i'm steve >> one of the fed's mandates of course is achieving full employment so it watches each new piece of data very this morning the government said that the number of job openingsn june was littlehanged from may, signaling an essentially healthy jobs market still. the number of opening was 7.35 million, near 1.4 million more than the number of unemplaned amer it is the 15th straight month above 7n. mill >>> and one place looking for workers is vermont, and tha i stat offering incentives to help lure people to live and work there. ne al, bring in younger workers. kate rogers is on the job for us in burlington, vermo. >> reporter: for colin powkovitz remote work means freedom. >> i value working remotely, just innately. it enables me to be wherever want to be and to have my family be with me in a setti that we choose and a location and a choose that we >> reporter: the 37-year old has worked remotely for the better part of his career with pure charity, a technology nprofit. he ais family were based outside of los angeles but decided they wanted to buy a home and own some land. so they packed up their two kids and dog into an rv and drove 25,000 miles across the c

leverage in the economy >>> meanwhile the dallas fed president told cnbc he would like to steer clear of the cuts but would remain open minded. >> part of this job is to be forward looking and there's a risk management part of the job and i want to take all the time between now and september to assess how the economy is acting and i'd like to avoid having to take further action. but i'm going to have an open mind about taking action over at least the next month of numbers if we need to and for me the global -- the global yield but particularly the u.s. yield curve, i'm less obsessed with the 2 to 10 and movements back and forth and more focused on the fact that the whole curve has moved down over the last months and the feds fund rate at 2.25 is now above every rate along the curve which to me is a reality check that says it's possible our monetary policy stays tighter than i would have thought three or four months ago. >> the dollar index was down you can see it's now stronger. the euro there weaker against the dollar this morning and sterling losing some of the ground it gained yesterday on the back of the meetings between boris johnson and an

road map begins with stocks moving lower ahead of the open, investors digesting trade war fears, latest jobs numbers, the uncertainty about the fed'st moves. >> trump tariff threats, the president promising to tax the hell out of china until a trade deal is reached. >> oil prices recovering after the worst trading day in four years. both exxon and chevron moving higher after reporting quarterly results this morning. >> along with inline results for july, payroll gains were revised downward for both may and june the unemployment rate held steady at 3.7 for a second straight month wage growth 3.2 from a year ago, but manufacturing weak, year to date average 8k, works 22k last year and santelli pointed out, manufacturing work hours, the lowest since 2011. we know where this is all coming from. >> we're continuing to get a tale of two economies. overall a healthy job report, came in line, better participation, better wage growth, a lot to be encouraged about, but there are pockets of weakness, private sector is one of them that people are pointing to, private sector added 148,000 jobs in july the expectation is 165,000 jobs. also, the

and president trump cut regulationses and that opened the way for businesses to create more jobs. >> and he attacks the fed. if they're not doing enough and you're saying the economy's doing fine, huh, wonder why the stock market is on the verge of a recession watch. dagen: i have been very clear about what signals the markets are sending. i'm not going to sugar coat it. it's worrisome when the yield curve inverts. the three month and 10 year inverted earlier this year. the tax cut, most americans households felt the tax cut. >> it wasn't enough of a stimulus to keep us out of this situation. you can't say the democrats are rooting for a recession. dagen: this is because of the trade fight with china, it's a problem and the slowdown all around the rest of the world is a problem. that's a large factor. >> of course. dagen: not going into what we're seeing right now, but my point is, is that wages recently -- people are keeping way more money than inflation in terms of their wage growth. wages are growing at the fastest pace roughly in a decade. that's not something we saw during the entire expansion which i

the fed is doing a pretty good job. i would like to remind people that the federal open market committee which decides interest rates is people, usually 12 people. we don't have a full fed. it is not just the chairman of the federal reserve that makes the decisions on interest rates. at the moment it appears that the fed is likely to decrease interest rates again this year, most people would say 50 basis points nobody knows for certain if there's a 50-basis point reduction, i think it will keep the economy in a reasonable shape. you cannot avoid a recession only by interest rates if china trade agreement is not resolved in some form before the election, i suspect it will not be good for those running for reelection. >> when you say -- >> i do think. >> when you say there's -- >> i do think there's a chance of getting agreement before the election. >> when you say resolved and getting an agreement, are you talking about a deal light type of thing that's what tom friedman was kind of laying back yesterday, we have to roll back our ex president-ele pectations. >> there are three parts one is that the chinese will buy more

open to possible tax cuts to boost the economy, and pointed the finger at the u.s. federal reserve foallegedly holding back growth. pres. trump: if the fed would do its job, we would have a tremendous spurt of growth. a tremendous spurt. olthe fed is psyically very important. less so actually, but very psychologically important. if t which it has done poorly over wte last year and half, we would see a burst of glike you have never seen before.ri sophie: ron ie is a former advisor to president george w. bush and he joined mearlier to discuss all this. the president is saying he does not think there is a recession at all, and yet his actions are those of a preside who might think there is one on the way. ron: he has political reality hr is now cting. if the economy does not do well heading into 2020, his reelection prospects go down significantly. but if you look in the united states, what constitutes a recession?ne two quarters otive economic growth. we have not seen that yet. the president is right to say that we are not in recession, but i do understand that he is worried abt his electoral ospects next year. sophie: how worried should he be? every admin

job openings and a lot of hiring. the telecom sector is shedding their non-technical staff. we continue to see strong results. also for some of the new emerging areas. >> typically a dovish fedent stocks soaring. why did it work this time? he did cut rates. wouldors were hoping he not just signal one or two cuts, but that the fed was embarking on an aggressive campaign, considerably lower rates for the foreseeable future. reasons chairman powell wouldn't want to do that, wouldn't want to tip his hand if he was planning that aggressive approach. that's what the futures and bond market were pricing in. to have him push back against that notion really caused people to push back against what they ought -- pushback that what they thought will happen will happen. the most jobs being added? >> a massive expansion in cybersecurity jobs in particular, and that is not just the people who are down in the basement at nsa. have a deficit,shortfall in tee need. then you see emerging fields. we are tracking now the analytics position, being over 50,000 total in the u.s. edging towards the 100,000 by this time next year. we are starting to see some of these new technology domains. intellige

jobs. so i don't think this is necessarily a good political opening for democrats. as for the president, he has been saying for a long time that the fed not accommodating enough vis a vis china and the european union central banks, so when you say that powell used the word accommodating seven times, i'm thinking -- neil: i don't know about accommodating. adjustment. >> but i think that does go to the heart of the president's argument, whether he's caving in to the president, i don't know, but i think it was an argument the president was making for months and months and months. neil: i want to switch, if you don't mind, joe biden is still speaking to reporters right now post his debate performance last night and he said he was surprised that the party was getting to the point of criticizing a lot of achievements of the obama administration. now, i think what they were trying to say is anything bad in the obama administration was on biden, anything good was barack obama. having said that, it does make you wonder, he is their most popular standard bearer and i'm wondering what the end game is here. >> it's actually very dangerous path fo

jobs right now. with keeping the economy moving, it is the consumer. what happens when consumers decide that things are getting risky and they stop opening up their wallets? that is a much bigger concern for the fedvely, professor economics at syracuse university and peterson institute, nonresident senior fellow. thank you for joining us. still to come, haven currencies fell as president trump delays those additional tariffs. the yen posts it's biggest daily -- its biggest daily drop since march of last year. this is bloomberg. ♪ paul: this is "daybreak asia." i am paul allen in sydney. shery: i am shery ahn in new york. let's head to sophie in hong kong for a check of the markets. sophie: we are going to be checking how far this overnight relief rally can go after the u.s. delayed tariffs on chinese products. theince march 2018, while greenback found support from your score inflation coming in higher than forecast. the yen did pare some losses. around 106.65at against the dollar. it has been needs to over the month of august. check in on the offshore yuan, holding its overnight rally, which was the best in almost a year when it strengthened past seven a dollar. a quick check on treasuries future

job. stuart: sarcasm is a low form. [laughter] shame on you. thank you very much. next case, look at futures. still a fast lane level, plus 230 at the opening bell 11 minutes from now. the feds talking which might be a heated debate over comfortable temperature while sleeping. the fed had the thermostat recommendations ascending social media into a frenzy. check this out, a live shot from the international space station. two astronauts are taking a space work and should be a lasting about six and half hours and a new back after this. about vehicle quality. and when they were done, chevy earned more j.d. power quality awards across cars, trucks and suvs than any other brand over the last four years. so on behalf of chevrolet, i want to say "thank you, real people." you're welcome. we're gonna need a bigger room. you're smart,eat you already knew that. but it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. now you're even smarter. this is truecar. stuart: updating the story on denmark. the prime minister has responded to president trump who has canceled his trip. she says she is surprised, disa