going back to what you just said, china needs its mario draghi moment. what is the difference between the ecb chief saying we'll do whatever it takes a couple of years ago and that seeming to solve things and what china has or has not done today. >> europe has done some of the things china has done. they've engaged in individual policy measures. they engaged in ecb starting this year. the key in 2012 he reassured the markets. he had this press conference, his bumble bee moment. we have not seen that out of china. it's great they are cutting rates. that will help in the short run. we haven't seen this feed into better growth. the notion that china should stabilize, i think the next few months that could happen. the idea it could bounce back to the growth rates they've seen over the last ten years is very unlikely. >> that is a very interesting call for a mario draghi moment. markets are considered developed markets. they operate under different rules set. they are liquid and bigger. the chinese market is a controlled market run by a communist country. the

what would have been had mario draghi not pull the trigger? tom: what does lagarde -- draghi need to do? i think this is a currency war. quincy: he has got to get the euro lower. it now needs to be pulled back. a major exporter in the eurozone itself. so, you need to have strength in the eurozone. but also to china. of lombard street research and the focus on the netherlands. whether it is finland or the netherlands, these countries matter. olivia: of course. i'm thinking about deflation. that is the difference between nominalowth versus the level. what has changed? deflation. deflation is not unique to this quarter. what else happened in greece that was unique? was there a boost in tourism. was it a period of stability? jonathan: there was a lot of tourism. incraseased spending. people anticipating capital controls. tom: give is the update on greece. i'm like our audience, greece exhausted. make me care. hans: brussels will modify the agreement passed in athens late last night. 96 billion is the headline number. you may be can get germany vot

possible given that mario draghi and easy be just launched qe? : this is aner unusual occurrence. want to invest in whatever country is best doing inftion. that is what the ecb is doing with a 60 euro month qe. the markets for a crown that so that the other markets rally well in advance of the qe actually happening in march. it really started last fall when mario draghi wasn't the jackson hole fed conference, employing that it was going to be more action to be taken there. stocks go up, currency goes down, but what we have seen the last series is the opposite. i think that has to do with china. the economy is clearly slowing, i think that is why they are devaluing the currency, that is why they are using. it is a reflection of a slowing economy. if china slows, then the countries that are more affected are of course other emerging markets, countries like result, but also japan, and europe were more directly competing for china's exports and the u.s. is in a relatively better place. we are relatively closed economy , 13% exports. the dollar goes down because the likelihood of the f

what is mario draghi going to say?k the surveys we have been taking will be around 200,000 or the u.s. jobs number. larry summers is going to be there. jack lew is going to be there. wolfgang schauble is going to be there. some big, high-profile guys will be attending the meeting. today, a lot of data to delve through as well. 1:00 p.m., we will get some gdp numbers out of india. will the indian central bank the cutting rates? it would be interesting to see exactly what happens. plenty more still to come. we will dig through all of the data here on bloomberg television. more interviews coming out of jackson hole. as we had to break, let's give you a clip of the atlanta fed president. >> the distance that we have traveled as well as the current outlook for the economy, both of those, to me, would suggest that we are close. the timing is close. ♪ guy: welcome back. it is 7:18 in london. london is closed today. it is a bank holiday. in frank for, which is a little bit more germane. let me tell you what equity markets look

this is something that mario draghi needs to consider. inflation was the topic at jackson hole, wyoming this week in. policy makers may not have the best record of forecasting inflation. the fed vice chairman is confident that they will reach their inflation target in two years. that keeps september and the table. there is a lot to consider as we approach the u.s. jobs number on friday. news as year, the big we enter the last trading day of august. , that is theck biggest monthly drop since may 2012. that is the biggest drop in three years. emerging markets are the biggest since 2012. it's all about china. intervention to prop up the market will fail. it's an 8% decline. that's what we have witnessed so far. that was the height. remember back in april, we were at record. we'll fallen 12%. everything has fallen. i think these are my favorite stats read chemical companies have lost 50 billion euros this month. oil and gas companies have lost 60 billion euros. that leads me to the price of oil. days, crude trading $.17.ll -- rose by oil is s

hans: it is a cause for concern for mario draghi. stand up a little bit. in germany, they were there. , they came inth with consumer spending. they spent a lot in the second quarter. we will have to see what happens in the third quarter. the craziness, capital controls, everything that happened increase, that was the third quarter. have any idea how that will affect the numbers. i suspect we will have a decline in france and a slowdown in germany. olivia: you cannot take into account the instability in greece. you can take into account a full quarter of quantitative easing. is an economy on steroids. erik: i get combativeness? hans: that is what happens when you do not wear socks. a below the belt shot, i agree. erik: we can make it a below the i am not wearing socks. it is august. quantitative easing took a long time to produce economic growth. helped revive it the economy at all. what it did do was -- financial markets almost immediately. hans: if your goal is to have , theymployment in europe would be happy with moving towards it. what we have is unempl

mario draghi, at 20%. maury harris is with us from ubs.u try to compare these economies, is it more worthwhile to compare its economy to the u.s.'s economy or to the european economy echo maury: you have to compare closer to the european economy. as you said, through the trade pact. our economy is more independent. we are not nearly as trade ,riented, and this country inflation expectations have been very steady on the part of the public. 2.75%ontinue to be about 7/8% and i do not think they ever got the deflation bug. brendan: let's bring this chart back up again. when you look at how much higher those expectations are for the eurozone, more harris, do you see the possibility of destabilization there? is that it what is driving that, or is it underlying factors of ?he economy echo maury: they're certainly could be more concerned about deflation in the economy. brendan: what is the fix for that? that is what mario draghi has been trying to do, to stimulate investment. what is going to make that change? governmentibly more reforms in places

does this story shifts two years from now when mario draghi make the difference? olivia: that is the challenge for janet yellen. this is not transitory. tom: right now it is a dollar story. jon ferro is in london. a strong sterling as well. this is about yellen and carney. what is the distinction between those two central bankers? jon: the only major two central banks on the planet thinking about hiking rates. very different in terms of action. the market is pricing with hikes at the bank of england in may. tom: when you look at the dollar weakness, i look at athens rolling over again today. what is the nearest follow on is it that gold is going south or the equity markets in europe? jon: i look to europe as an earnings story, but there is certainly a tailwind story in the dax as well. you see the spillover from the fx market. i am not looking at euro-dollar, i am looking at euro sterling. that could be a problem. brendan: dennis lockhart of the atlanta fed said it does not see any reason yet to wait past september. did a clacks on sound in the city of london? did

mario draghi said he will maintain his commitment to policy. good stuff.'m looking at commodities. for 2014.ity index the rep -- the white line is the commodity index for 2015. a much deeper selloff and we saw in 2014. remember, the bloomberg commodity index from that july peak fell another 22%. -- the concern. will 2015 be a back to the future in terms of commodity prices? scarlet: we are comparing commodities with 2008. this time, it is supply driven. alix: does that wind up continuing or does the response stem the tide for the bloomberg commodity index? scarlet: let's look at headlines at this hour. the owner posting revenue wider than expected. so -- sales fell 11%. expected 3.2 billion dollars. the fourth straight decline in u.s. advertising sales. the company is struggling with falling fueling ratings. scarlet: that drop, 12%. it is ugly. quarterthe company profits beats after cutting expenses faster than revenue could climb. than estimated. revenues fell 1.5% to 380 $3 million just short of estimate. as moreing sales readers get their news online. h

how will mario draghi respond? let's go to hans nichols in berlin.he ecb already seemingly finding it difficult to bite abs. i know abs as of the big part of the overall program but it speaks to the idea that they have to widen the pool of assets if they want to make the program bigger. hans: that is one way to put it. what we are reporting is the european central bank is going directly to investor holdings beyond just banks to try and buy abs. the whole goal is to try and revive the ebs market. remember, it took a big fall in 2006. euros, and this year it is already at 55 billion, up from 47 billion in 2014. but when you take a look at the goal and what they want to do, it is about reviving this market, adding more liquidity. here is the market participant's sense to askkes the dealer to seek offers directly from investors." that is according to rob ford. on this is done out of our london bureau. great reporting. it gets to some of the challenges that the ecb is facing. when you take a look at what the abs program is compared to other programs, this

but it is true, though, i think mario draghi actually know, the impact in europe, but we also know it will stress the financing in dollar available to agents in europe. so we certainly hope for a later fed hike, than a sooner and maybe more abrupt rate hike than what has been announced, that is for sure. but i'm not sure that the anticipation in the euro dollar, i think this is a secondary problem to recovery, which is basically to unleash the famous investment factor that has been missing in action for the past six years. >> good morning to you. lower oil prices and the quantitative easing, of course, has been a boon for the european economy. i guess the question is given the recent international developments, do you think the ecb extending farther than 2016? >> i think it's discussible. i don't see a larger qe before that. and i'm actually expecting it to be longer than expected. i think the tightening by the fed will be expected when the ecb starts tightening. i think it will be later than february 2016. but it will depend on what japan does and to some extent what the people's ban

and if mario draghi's big statement, do whatever it takes, is true to his word.sed to understand the recalibration when all the signals are out of kilter? if this was krek and i believe it is, spanish yield should be close to the highest they've been all year. these are the things investors are going to have to contend with and there's going to be a lot more of it. that's my opinion. jon, back to you, buddy. >> up next, stocks still in rally mode, though off the highs with china continuing to drive action here in the u.s. a top vc investor in china is going to tell us how things are looking overseas, that's next. ♪ no student's ever been the king of the campus on day one. but you're armed with a roomy new jansport backpack, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. >>> coming up, despit

, jackson hole starts today where you have janet yellen sending her troops, fisher will speak, mario draghiom the ecb speaking. will they bring the cow bell or not. that is the third point which is bond yield, bond yield if your buying bonds, and i expect fisher to fade, bond yields fall, on the long side of bond yields, different ways to express that. sandra: yields coming down. >> bond yields fall. one spot, 98% and a good way to express that would be buying zero. there's an edf for everything which we can talk about. dagen: on monday, your individual investor you got totally totally shafted by the market. i did a lot of reporting yesterday with elizabeth macdonald and the message is set it up, caveat, shouldn't have headquarters in the open, shouldn't have -- you should have known better. that is the message with the atf and if that is the message if you are an individual and you buy another edf and try to start trading in you are a full. usually on mutual funds. >> the bond etss didn't blow up. might have been the place to be the last three months. maybe i am using my canadian accent bu

guy: how will mario draghi be viewing this, do you think? >> he sees that the u.s.g to raise rates and that is going to mean weakness for europe. that should clearly be helping the euro, the euro zone economy. i am not thinking he would be much concerned. if he was raising rates, it should not be seen very negatively. so long as you are not raising rates to counter inflation or a recession or a high valuation, which is not the case -- caroline: normalization, here we come, potentially. thank you very much. you are staying with us. guy: we have got to take a break. first, another deadline for greece. with another ecb payment on the upizon, how they wrapped talks. ♪ guy: welcome back. it is 7:16 in london. that means it is 8:16 in frankfurt. caroline: all the stories you need to know this morning. china considering combining two major shipping companies. the two companies are suspended from trading monday. dated this weekend showing slowing demand for chinese goods. exports down 8.3%. the estimate was for a drop of just 1.5%. caroline: the greek government aims to con

that's when mario draghi essentially hinted at an ecb qe and fueled this whole dollar rally we've been talking about for the last 13, 14 months. you can see a pretty loose correlation but a positive correlation between the s&p 500 and the dollar index. but what i find most interesting, look at these circles i have here. these are some big drawdowns, big drops in the s&p 500. 4 1/2%. 7 1/2%. 5.2%. each of those times those markets bottomed when the u.s. dollar was bottoming. you can kind of see it here. you can see it very well right there. what you're seeing is a day or two before the u.s. -- the stock market bottoms the u.s. dollar toends bottom. the thesis behind this being a stronger u.s. dollar means a stronger u.s. economy. now, there's also a push and a pull where you get too strong of a dollar and you get a sell-off. so you look at -- look at that peak in the dollar there, right? we just went sideways. everybody's worried about multinational earnings. the real question is where are we now and why do i think we ma have put in some kind of a bottom here? okay. this is the u.s. dol

we would to you which tools mario draghi is making use of. ♪ anna: welcome back.hing "countdown." here are the stories we need to know. shares in china are trading up ,'s switching between gains and losses. in the last few minutes, trending down again. traders have been waiting -- have been weighing interest rates. they shanghai composite has lost half its value since the middle of june after a four-day equity plunge. within the last few minutes, paddy power have at -- have announced an agreement of a possible merger. it would bring together one of the u.k. and ireland's leading leadingf the internet's gaming exchange. the nuclear deal with iran, saying it is a historic opportunity to resolve issues. the iaea says to run has just says tehran has -- supporters of the deal has seen growth of acceptance. japan cannot guarantee -- japan -- as demanded by the international olympic committee. after inception costs ballooned to $2 billion. world's biggest advertiser just reported a dividend at beat estimates -- that beat estimates. any fallout from the chinese. the story

jackson hole is the meeting they have used as kind of a roadshow even mario draghi last year where he whatever it takes. it's telling me that janet yellen is not even going to it and everyone is looking at this past week as the weakness. the market started rolling over in may. 22 janet yellen had a speech in rhode island where she said where probably going to raise interest rates this year. thentelling she said that and is not going to jackson hole and idle and she has done much to back off those comments. it will be interesting to see if bullard is banging the cowbell. vonnie: that is part of my agenda today. withe going to be speaking all sorts of guests from there but we and deadly's news conference will take place at 10:00 a.m. eastern and we get a bunch of economic data today including durable goods and the fed is obviously still data dependent and finally we will be glued to the markets all day long. bit of a diversions lower in europe and higher here pointing higher towards the open. >> that again yesterday we saw very robust reality that fated for he quickly so it is hard to r

that an implicit criticism, even though i am sure he intended that way, of mario draghi in the bag ist hand? it is more criticism of fiscal authorities around the world who are not stepping up and filling in the gaps. words, central bankers have done and continue to do whatever they can do. is in a in his case, he different situation than others because he is trying to build inflation -- they are trying to build inflation, but he is trying to knock it down. falling andces china, what is that due to the indian economy -- doing to the indian economy? here's what he told us. >> we have imported a fair amount of chinese products. it china's market grows more anticipated, we benefit hugely from lower market prices. it would be another benefit from historic chinese growth. michael: i asked what was the difference between being a college professor and putting policies to practice? he says he loves it. i thought we should do this and i tried it and it worked or didn't work. erik: in what way does india when and china loses? michael: they are both doing quite well. it is not really a trade bet

mario draghi will keep the printing press running for fight sometime. >> angela merkel will hold her position strongly. erkel is not- m really in threat. there.eave it hans nichols in new york this week. alessandro migliacci, our rome bureau chief. cloud.ealth care in the we find out how one company is using tech to revolutionize one of the fastest-growing growing areas of the industry, coming up. ♪ ♪ >> would you look at that? where it secretary of state john kerry arrives minutes from now to raise the american back over the embassy for the first time in 54 years. matt: wow. erik: is that hd? matt: it looks nice. could go to the hospital for an mri or cat scan and have your results in less than 30 minutes. one company is turning wishful thinking into reality. imaging advantage is using the cloud to transform radiology as we know it. here is their ceo and chairman, naseer hashim. thank you for joining us. the real revolution is that if i move to los angeles, god forbade, and visit a new doctor, i can get all of these images, or he or she can access them instantly by the cloud. >> tha

what is the significance of the deflation wars the mario draghi and mark carney if they react to what they see in china? jon: there is a safe haven bit in the bond market, the german 10-year yield at an all-time low. but there is also the deflation bit as well. if you devalue the currency and deflation, for the likes of mark carney it is getting difficult. don'tflation data says you dare. if it continues to stay around zero in china after those , -- the question is not what happens tomorrow, it is next weekend the months after. if this depreciation valuation continues. brendan: is there any sense that this news, a day and have hold, what this will mean for the engine of europe? --: it is important purchasing power is very important. also dilution of earnings. it is why you see the luxury good makers get hit today. it is why you see miners, those stocks getting crushed as well. tom: let me go to tim craighead in hong kong. we had just seen a sharp reaction, day two of the evaluation. give us a perspective how the stage managing this is an. are they in control of the markets, or are the

when mario draghi had commitment both those factors contributed to driving down funding costs and encouragedain. that is what turned the economy around. to argue that nothing has been happening in the policy sphere -- francine: the groundwork was laid. my more pressing point, is there a danger that rate hikes have been too soon, or is the danger we leave it too long? kevin: we say we have the forecast of the first quarter of next year. we are later than most because there is the view that you had a big tightening and financial conditions already driven by the strength of sterling. that will contribute to lower inflation and growth going forward. in an environment where growth is moderating anyway, it is not as if there is a runaway economy that will likely generate a rapid buildup of inflation in the future. there has been a moderation in growth. there is more risk of going to sue and there is in delaying this until next year. francine: thank you. kevin daly from goldman sachs. here are bloomberg's top headlines. hiroshima is marking the 70th anniversary of the bomb attacks. caroline kennedy

that is not what mario draghi wants.e: part of the deal with the europeans is to try to get the currency down. that is relatively clear. so, no. if i were a european policymaker the thing that would worry me would be that move in the euro. francine: more q.e. possibly on the way? mike: i was running charts. january, you don't round the 60 billion a month, they are bang on track. they are sticking to their guns. they are going to need to do more than that. the european economy is not in bad shape. more all for liberalization of the labor markets for you look at spain, italy, france -- they are doing what they need to do. you've still got around us unemployment in some countries, particular spain, but it is getting there. if we need you more, we will do more. i'm not sure they need to do more. started in march. it is now the end of august and we already had a market debating about whether or not they're going to complete this program. now we are talking about them doing more. let's just take a deep breath and say, it's cle

euro might be an alternative destination, and whether that in turn starts to be a problem for mario draghind the ecb. if i was at the fed, this is going to give me pause. wouldas at the ecb, i worry about my euro. stephen: our own forecasts suggest exactly that. we think people have been too optimistic about the euro against the dollar. if the fed doesn't raise rates in september, the euro might get a new lease of life. manus: so all those arguments about qe seemed to dissipate quickly. francine: thank you so much. stephen king and mark gilbert. that brings us nicely to today's twitter question. has china reignited currency wars? tweet us. join in. we are all there. despite gold's recent decline, australian miners have managed to shrug off the worst because of the aussie dollar. the situation has offered some rich pickings. francine: australian mining has picked up two acquisitions. paul allen paid them a visit. >> some more fresh gold pours into a depressed market. this 17 kilogram brick is being created in evolution mining's newest assets. out here, the appetite for gold remains as stron

that was answered earlier this year by mario draghi and the very aggressive quantitative easing that the euro and ecb is undertaking. it happened last fall was actually pretty scary. sure enough, the market facilitated fresh eyes and s&p 500 and frankly, pretty decent rebirth of many eurozone economic sectors. we love to obsess over when it is happening, but regardless, you have to make your investment decisions. have you been buying as we were seeing the drop? michael: when you wake up monday and a bomb is dropped on the financial markets, sometimes the best to do is stand back and wait to see how far it is falling. matt: you want to back it up. michael: you've got conviction, certainly, but i would say this -- yes, i'm still certainly very bullish on the markets. whenever get what is really different from monday morning versus two weeks ago, two months ago, six months ago, i don't think there is that much difference here. toward that point, jim bullard from the fed policy point of view, has a fair point. what is happening within the tape right now, it continues to take you back to

we were waiting for mario draghi to make a move, every bit of bad news was interpreted as good news.as movedink china more quickly. iron hee, the ecb, the was draghi said we are going to do whatever it takes. the size of the ecb balance sheet declined by about a third years.e following two china is moving quickly because frankly the stakes are higher politically and socially in china. vonnie: some bond market moves -- a huge move in the german bond market, german 10 year yield up 66 basis points from about 55 following this announcement. china has cut the reserve ratio by .5 percentage point and is making some other moves. the pboc saying the economy is still facing downward pressure. brendan: jason trennert, can the chinese government six their problem right now? we've been talking about two engines. the chinese engine is in flames. can they fix this engine with monetary policy? jason: no. you cannotngly that fix anything with monetary policy. monetary policy is one tool that governments have. there are 4 tools -- fiscal policy, monetary, regulatory and trade. lord onlynd out, knows

. >> certainly not a picture that is going to make mario draghi very happy.epresent a tightening of conditions. it is really related to expectations about what the fed is going to do over the last couple of days, expectations about the fed rate hike. we still think there is a chance that we could see the fed moving , but we still need to see what the data say over the next couple of weeks. , while itro position is not doing any favors to exporters in the region, it is still not too expensive in our view. the moment, you are seeing a september call for the fed. barclays move their call from september 2015 to march of 2016. a number of economists seem to be reevaluating. you think there is still more that we can learn from the data before the september meeting. >> let's see what happens to the markets. the fed members have made it clear that market volatility could be a factor which would encourage them to delay a rate hike. for the time being, it is still too early to say. i think the payrolls report is going to be extremely important. overall, we see very buo

mario if we get to 1.17 draghi may have something to say.ncine: nestle, the world's biggest food company, has reported first-half sales growth that topped estimates. but a slow down in china -- means some analysts are forecasting the company could miss its long-term sales targets. manus: elliott gotkine joins us. you look at these numbers. there was a huge amount of expectation that these guys -- would find it darn tough to make thieir numbers but they beat. iott: coming in a smidgen below the median estimate of 43 billion swiss francs for the first half of this year. europecine was saying, a bit of a laggard in terms economic growth. u.s. doing pretty well for nestle, as was north america. there were even some signs of life, green shoots, from its frozen food business in the u.s. they make things like lean you usedwho i'm sure to be able to quote the adverts. manus: it has eluded you for the moment. francine: no one asked you to do that. elliott: overall, pretty good set of results from nestle. the market is taking its cue. you are expected