loretta mester -- joined by loretta mester, cleveland fed president.ight at you. >> okay. >> 0.4 on the business investment number, rick said third best number of the year, do you see that turning around >> i think business investment has been one of the bright spots of the economy so far this year because it's been lagging the last two years so having that come up, manufacturing come back is a very good thing, investment of course drives productivity, and productivity's been very low, so i'm very positive about that that's a positive for the economy. >> i want to pick up on a discussion i had with my colleague joe kernen yesterday who said, hey, we did 2.6 in the second quarter it looks like we're on track to do a 2.8, don't count your chicken, et cetera, is it time to up the forecast here? are we doing better than the boring 2%? >> well, i have a little bit above 2% in my forecast. i have 2% as my long run growth rate and i think we're going to be growing a bit above trend that's part of my forecast going forward and why i support this gradual reduct

francine: loretta mester talking about inflation. we have a chart for you.f looking at u.s. inflation. you look at the breakevens some of the phillips curve. economistsestion for is whether the phillips curve is just hibernating or whether it is broken. that is the model that looks at unemployment versus growth. the more unemployment goes down, the memoir there should be price wage pressure. that model has simply not happened. this is a great chart. hillary put my pci headline inflation in white and the pce core year on year in blue. it is around 1.5%. "bloomberg surveillance" continues in the next hour. david gura joins me out of new york. it is the last day tom keene is on holiday. we will bring you the latest market reaction to the flooding in houston. we will give you currency reaction and go through some of the asset classes. there's also brexit, with the labour party weighing in on negotiation. this is bloomberg. ♪ francine: cautious kuroda. the boj boss warns japan's current growth rate can't continue and he won't be following the fed or the ecb. coun

we'll have more coverage from joel today cleveland fed president loretta mester will speak to cet at 14:30 cet it we'll also hear from imf chief economist maurice obstfeld at 22:30 cet. >>> britain's foreign secretary, boris johnson, says though the uk has to meet legal obligations during eu talks, some figures touted for the brexit bill seem too high in an interview with the bbc, johnson added that britain would not pay a pen any more than is required nicholas, that sounds like classic boris johnson. should we expect any other language from him than this? >> no from what we've seen historically, with boris johnson, he will play both sides to some degree i think that they're trying to convince those that voted for brexit that, you know, we're not -- the uk will not pay a lot of money for it. it's clear from the europeans they're sticking to their guns, and they will insist on some form of payment. until these issues are worked out, the uk and europe are not able to move on to the important issue which is what the new relationship might look like >> nicholas, looking at what happened

july aadp number at 8:15 and we'll hear from cleveland fed president, loretta mester and san franciscodent john williams mondelez and time warner report before the opening bell. after the close, aig and tesla which has been on a tear as of late >>> the white house is reportedly not living up to president trump's standards. golf magazine reporting that the president told members at his bedminster golf club he's been spending too much time there because "the white house is a real dump. obviously this got attention because the white house is seen as a shining beacon of our country. >> it's also interesting only because it's another one of those off the cuff comments. >> that he says to his golf buddies. >> but it puts such a negative -- >> joe scarborough says you can leave at any time. >> just like he left the republican party. >>> nasa offering a six-figure salary for an out of the world role the agency is seeking a full-time planetary protection officer, ppo, to protect earth and inhabitants from alien contamination. making sure humans don't contaminate other planets, moons and other o

interviews with cleveland fed president, loretta mester and one of the governors, governor jay powell coming later. >> two big keynote speeches will be fascinating it's amazing how similar a situation yellen and mario draghi are in. they have strong fundamental data but lack of inflation both have very interesting different political situations they have to play the political game as well as different between the two. that's basically -- i bet they can have a drink before last night and afterwards and say we both got a similar task on our hands. >> except for the ecb has a single mandate, that's to control prices and inflation the fed has a dual mandate, control prices and inflation and and secure growth and employment i would argue yellen is in a much trickier spot the focus will be on her we know draghi is worried about the euro strength. i don't see them pulling back soon >> you could say she has a tricky one, but she already started. so it's easier for her to delay a bit. mario draghi has a big extra issue, does he have enough bonds to continue his bond buying program. even if the

joe: loretta mester and john williams both speaking tomorrow. julia: earnings on tesla.. be sure to tune in as we are joined line at 8:30 a.m. new york time. do not miss that. joe: that will make headlines. scarlet: bloomberg technology is alisa: i'm alisa parenti in washington. you are watching "bloomberg technology." president trump is standing by his eldest son on the accuracy of his statement regarding a meeting with the russian layer. that is after reports that trump himself dictated the july 8 statement, which says they -- discussed the adoption of children. emailed showed it was a means to deliver damaging material about hillary clinton. secretary of state rex tillerson says the u.s. is applying peaceful pressure on north korea. they raise concerns after recent icbm launches. he also says the american people want better relations with russia. he will meet this weekend with the russian foreign minister. a coalition of 16 state attorneys general filed a lawsuit charging the epa with illegally delaying designating areas impacted by unhealthy levels of ozone. the coal

the cleveland fed's loretta mester says it is -- global news 24 hours a day, powered by more 2700 journalistsore than 120 countries. i am taylor riggs. this is bloomberg. tom: thank you so much. we are very fortunate at inomberg view to have people the trenches of discourse and dialogue on whatever the topic may be. commenting yesterday on the cacophony of washington but it's wonderful to go to berlin. been absolutely must read on the oddities and dialogue and the discourse of moscow and washington. have you ever seen it like this? have you ever seen the delicacies back-and-forth between trump and putin? >> actually, there is nothing we have not seen before here. this is certainly not the first round of u.s. sanctions on russia. the mostrobably domestically important one for the u.s., but certainly not the most painful one for russia. tom cole and the fear is the russians and mr. putin will react. react putin -- will the day by day or is there a more strategic putin to what mr. trump speaking of when he speaks of sanctions? certainly -- is certain that is certainly, right now, when it comes t

guests lineup of said including robert kaplan and loretta mester.we talk about the bond market after we have had over $1 trillion worth of u.s. credit come into the market. from new york city, you are watching bloomberg daybreak. ♪ got you outnumbered. the dinosaurs' extinction... don't listen to them. not appropriate. now i'm mashing these potatoes with my stick of butter... why don't you sit over here. find your awesome with the xfinity stream app. included with xfinity tv. more to stream to every screen. ♪ andthan: global stocks drop havens rally after a terrorist attack in barcelona. unease about u.s. policy paralysis. hazard -- hasate claimed responsibility for the attack in spain. the white house, talk of a need for radical change. this is bloomberg daybreak. i'm jonathan ferro, alongside it david west in. alix steel is on assignment. a big loss in the united states. the biggest loss since may. futures up 1/10 of 1%. down,llar is on the back the euro advancing 1/10 of 1%. treasuries, yields up a basis point. 2.19. that is your across asset sto

the july adp employment report out at 8:15 eastern and we'll hear from cleveland fed president, loretta mesternd san francisco fed president john williams. on the earnings front, mondelez and time warner report before the opening bell. time warner everyone will look like in the context of the at&t transaction. also hearing from aig and tesla. apple was out with earnings last night. >> yes, lots to digest with apple. shares hitting an all-time high. 1.56 was the previous lie. should be 800 billion or so. the tech giant beating the street on ipad and mac sales customers are awaiting what could be as many as three new phones in the september quarter. we'll talk to these gentlemen about it jonathan gellar from the boy genius report. jonathan, 30 years from now, can it still be called boy genius? if you're gray, you know, using a walker you will eventually have to change the name, right >> i've already changed the name it's bgr now >> good. stands for boy genius now. we have will power, senior equity research analyst. will at robert w. baird. one thing they're pointing at is that the mid point of t