mckee, this should be justified.l economic growth comes from productivity and more people working. 600,000 was the number you told us. this could begin his for this administration. there could be genuine growth. mike: we will have to see how much is produced if we have this can of labor force growth and a number.dp you could get a decent productivity number for the second quarter. but can that be sustained? the 600,000 people who entered the labor force is probably not a sustainable number. we may see the unemployment rate come back down next month. the numbers that go into calculating it will be a little bit smaller. but a pretty good report that suggests the economy is firing all cylinders spirit julia: what about for the manufacturing sector? if we're going to look at any result ofncerns as a trade tensions, surely that would be it. mike: we did see the big gains which scale industries, is counterintuitive to what people expected. we did not think there would be a big impact because the tariffs had just been oppos

being reported by chp as the mckee road on ramp to northbound 101. i'm wondering if maybe we have one lane taken away on the main line as well. a two-car crash, pretty minor, no injuries, and chp is there, but you're stop and go from the 280/680 merge. sounds like they're getting close to clearing that. the north bay commute starting to fill in. southbound 101 through san rafael looking good in that direction. >> now, breaking news from the abc 7 live desk. >> breaking news we have been following all morning long. the rescue operation in thailand is over. and just half an hour ago, we learned all 12 boys and their coach made it out alive. here's a live look at the hospital in thailand, i believe, where the team is recovering. doctors say two boys have pneumonia, two have possible blood infections but the good news is they say they are athletes, they are strong, and will be okay. the soccer team was exploring the cave on june 23rd when monsoon rains flooded the entrance. navy s.e.a.l.s dove through narrow winding passages to rescue the boys and their

may kill you and i don't mckee or love with to the fact that she is us of the thousand. birds. anything. but. i. did. a good. piece and donkey bit of. good little my now less dong dong dong and sad number of new york city you know what's ahead to take care. no but i have said here that halacha should pay that they have. them and you know. i have something to say here she. fit this. i didn't expect to hear to learn so first she wants told me that they was her only friend gradually i felt that she became my friend too i didn't choose this friendship but sure you got that and the love that. spending time was she had i was a lot of fun she wanted to learn and discover new things all the time then we won't kill me it's a hidden away and. well hey kiddo see how you are. a long long good tactics into a bundle of fit a eight hundred club one of love and it's not. a good. we're going to get pushed. so it's. getting worse. and. yes i. was thinking maybe. not going up with good food ahead and i might expect to get the i let go of me and on to the house while i was on so would a stray is a

mike mckee reports.el: been officials sought the economy running in top gear and increasing business investment. that justified another gradual increase in their benchmark interest rate, particularly since inflation might run above their 2% target, driven in part by falling unemployment that would push up wages. many business contacts said they were expensing rising income costs and they were passing them through to consumer prices." many noted that if the fed state on its path, the fun rate quote could be at or above the neutral level sometime next year. what could knock them off that path? most participants noted uncertainty and risk associated with trade policy had intensified, and that could "have a negative effect on business sentiment and investment spending." business leaders were telling the fed about scaling back or postponing consumer spending. policymakers worried about deficits and an unsustainable fiscal path here and risk from political and economic developments in europe and emerging marke

michael mckee the winner.rk, this is bloomberg. ♪ scarlet: we have more on our breaking story, the fcc is considering a ban on using subsidy funds for chinese equipment maker huawei, who is now pushing back, saying it is unlawful. washington,rom perspective. this has been playing out a couple of months, is it expected? going on a fewen months. fcc cast a 5-0 vote to defense on the band. it will not be final until the second vote at the agency, has yet to be scheduled. what the issue is is whether companies -- u.s. companies may spend u.s. telik munication funds on gear from companies, awei, so it is a ban on subsidy funds. scarlet: thank you. you have written about this in june. talk about a trade group representing these leading american broadband and wireless providers, and where they stand. ctia, a have heard from big wireless association, but i do know world carriers have filed and said this will cause problems for us. gear mainly seem to be in smaller carriers and for smaller carriers, it is a problem tha

mike mckee i'm surefrom jerry as well.the 1951 accord between the treasury and the fed. both william mcchesney martin and alan greenspan served under both republicans and democrats and there's plenty of room. it is asserted mainly on the hill in the white house. an appreciation that independence and nonpartisanship are important at the fed. a president who goes right off the fed. is chairman powell threatened? >> i don't think so at all. you just read talked about the 1951 accord. the fed is independent by practice, not by law. it is a semi-independent agency so in theory, somebody could try to manipulate it. but no president has since richard nixon really tried. powell is not going to react to this. april of 1960, richard nixon felt arthur burns cost him the election to jfk. of 1960, richard nixon felt arthur burns cost him the election to jfk. in the recession, etc. etc.. eight years later with burns as nixon chosethe fed, someone else over arthur burns. now this is about the presidents worry of the midterm in 2020, isn'

michael mckee? trump has been talking about the dollar and its impact on u.s. trade.s been too high and that hurts us. the trade weighted dollar in-flight has been going up -- in white, has been going up before the fed raised interest rates and when they started raising rates, the dollar plateaued and started going down. because the economy was getting stronger. over for ait healed little bit and they small growth for a while and it started growing again and that is sending the trade weighted dollar higher. is theeighted dollar whole world and the impact of the dollar on u.s. trade. it is not necessarily the dollar that is causing our trade problems. vonnie: i love this chart, making. it should be -- amazing. it should be referenced once a day. fina you -- gina, you have my vote but close. caroline: where we see the dollar is moving so much on the back of a trump tweet, i have to go with michael mckee as it puts this into perspective. -- ad drw draw. vonnie: we go to the control room. win. you have the when -- york, i ame from new vonnie quinn caroline: i am caroline

let's hear what he told michael mckee. >> at the beginning of the year, i put in three for this year,hree for next year. i have not moved off of that. let's look at the consumer price index. month on month, 0.1%, weaker than forecasts, something to do with energy prices. the core of 0.2%. year-over-year rate we watch closely. let's jump into the bloomberg library. what you can see is that the cpi actually hit 2.9% on the headline and that was the fastest since 2012. energy prices have come back. you've got gas price dynamics, rent, etc. i want to show one more chart because you have to look at the fed target. it's not cpi. you have to look at the pce core. the headline is around 2%. not sending off a red flag yet. this concern about tariffs and trade is something people are worried about. i think tariffs may the deflationary rather than inflationary, but it's a concern. ramy: we'll leave it there. thank you very much. let's welcome hsbc's chief kevin logan. i know you are looking at this economic growth through the inflationary lens. what are your thoughts on this? kevin: i think it's

shery: michael mckee, thank you and romaine bostick, new york. nows check of the markets that the fed chair testimony has concluded. julie: as you have been talking about, we have seen an uptick in equities since we heard from chairman powell . not a huge one but reopened little change this morning. it is a difference in tone and direction as we heard from the chair. change in somet extent in other assets. if you look at the dollar and the 10 year, the client to its highs of the section. now, we have .4 of 1%. we have now seen buyers come into the market with a basis point move. and alsoge one notable, we are seeing the yield an dollar go in different directions. perhaps different interpretations. look at the bloomberg for the outlook for the number of interest rate increases we will see from the fed, and what is priced into the market. you have expected increases in the yellow and this year in the white. this reset seen all, his commentary, if at because there does appear to be flexibility in his outlook in terms of interest rate increases. fina

over to michael mckee . central isn't a message. it is an economy operating in top gear.nother gradual increase in the benchmark. inflation might soon run above their target by falling unemployment that would push of wages. a number of participants expected to pick up further. many business contacts indicated they were experiencing rising input costs.

david: mike mckee is with patrick harker.d morning from idaho at the 10th annual rocky mount economic summit. we welcome everyone joining us live on bloomberg television and radio worldwide. guestchael mckee in my today and the guest of the summit here is the philadelphia federal reserve bank president, patrick harker. thank you for joining us. let's start with the elephant in the room. or we don't know how big it is. in the room.armot cpi inflation came out 2.9% on a year-over-year basis. the court is set to .3%. highest in six years. are you worried? what is your read on inflation? is this a collection of one offs or are we finally starting to see inflation build and force the fed to a different policy path? >> thanks for having me. i will give the standard fed disclaimer. these are my thoughts and nobody else's. on inflation you used an interesting word. worry. why would be -- we be worried? it's not accelerating rapidly past our target. it is moving towards it. that's what we wanted all along. i think this is actually goo

bottom half of the inning, mckee martini, diving catch, what a play. the a's would go down swinging, wade davis strikes out matt olson to win the ball game. colorado host it is blue jays tomorrow. braves hosting the dodgers, atlanta pitcher shaun nukem was dealing. he gets the first two outs, one strike away from ao-no, chsyl b hit. that was it for newcomb. giving up one run and one walk, he picks up the victory 4-1. the first weekend of training camp is in the books for 49ers, and all eyes are on jimmy garoppolo. he ended last season on a five-game winning streak, sending expectations through the roof in santa clara. everything he does is being analyzed from throwing the deep pass to who he's dating. however, he's also been seen throwing the ball side arm and working on different throwing angles, something he hopes will make him a better quarterback. >> it's fun to work on these weird throws. i always heard brett favre did it when he played. when you get into a game, bolts are flying, you never know how you have to throw it. >>> the fastest rides on f

muchet: thank you so michael mckee.glued to twitter and remember, bloomberg users can interact with the charts we were just showing you using to tv including this one on wage growth and how it is lighting behind the decline in unemployment. from new york, this is bloomberg. ♪ joe: japan is reallocating in the u.s.. japanese investors are selling lower treasuries and buying riskier assets like stocks and corporate bonds. let's bringing catherine, thank you so much for joining us. we think of japanese investors as he told his of treasuries. but, that is changing. >> definitely. for the past years, japanese rotating oute been of u.s. treasuries in favor of u.s. stocks, agency debt, basically everything except for u.s. treasury. joe: we look at treasuries as being relatively high-yielding to japanese government bonds. know, the cost to hedge the currency risk eats up a lot of this. walk us through the calculus in. katherine: this is definitely a story about skyhigh currency hedging cost. treasuriesn unhinged is about 2

let's bring in bloomberg national economics and politics correspondent, michael mckee. mike, so mr. powell's prepared remarks identical to yesterday. the senate banking committee. anything new in the q&a session? >> not really. very broad ranging set of questions. the usual, where one party tries to get him to agree with their policies or not, so there were a lot of questions about trade. he stuck to the same answer that he gave yesterday to the senate, if we get into a prolonged trade dispute and tariffs go up, that's bad for the economy. open economies are better. they do better. they grow stronger. people make more money. but then he refused to take a position on whether we're in a trade war, it's not for me to determine. some talk about the fed and efforts to replace libor. he said that's coming along, still working on that. balance sheet, there's no plan at this point to change the rate of rolloff. and the fed is continuing with its stress test that they're going to fold them into regulation. there are a lot of things that you talked about, but nothing that's going to be a surp

thanks to michael mckee, bloomberg's international correspondent for bringing the embargo headlines.ay powell will be delivering those to the senate banking committee. we have opening statements on right now. ahead of u.s. fixed income strategy. perhaps nothing unexpected back,ts given coming potentially seizing on the q&a, the house, the questions we get out of the summer. the bond market has been a snooze fest for the last couple of weeks and really looking forward to this event, hopefully, we will get the q&a and this seems pretty unclean. >> the yield at 2.6% with the 25 basis points, no reaction whatsoever to the headlines. what do we make of the idea that ofre may not be enough growing momentum for the fed to fed.ive than the >> the market, especially many market participants training, -- we are not seeing enough data economics wise although there has been market volatility and the external factors are not as what we would like in the markets, but by and large, still relatively ample. i think of course there is uncertainty around trade, so the fed has to look at what they have

. >> that was our bloomberg international economics correspondent, michael mckee, thank you so much. right now, mr. powell narcotics brief recess in the middle of his testimony, the house financial services committee. and we're also getting some headlines from president trump. right now, kevin cirilli joining me back from london, and finally back here in the united states. just to follow up what president trump is saying here at his cabinet meeting. kevin: we've got chairman powell, house of representatives, and meanwhile, new developments coming out of the white house. president trump saying that the auto industry is going to be the focus of a meeting with european union commissioner juncker next week when he visits the white house on the 25th. this comes following what the e.u. has done with regards to japan, the largest type of trade deal we've seen, and quite frankly, coming at its time in which the european union is looking to respond directly to the protectionist strategy of the trump administration trade policy. so a lot of moving parts on this. we should note the e.u. has sai

for more insight on the testimony, we are joined by michael mckee, who has been following the hearing. what were your key takeaways? michael: powell is mostly concerned with the economy and not making waves for the market. about some big issues facing wall street and is in -- and didn't say much about the yield curve, other than they are watching it and they are not anxious to make it go down any further. in terms of trade, it is an issue. if in the long run we end up with lower terrorists, that is a good -- lower tariffs, that is a good thing, and as far as taxes, it is too early to tell, although they expect additional growth this year. the lawmakers were concerned, a lot of talk about banking regulation. the new bill that passed earlier this year that lightens up regulation on smaller banks, also, trying to implement that as thickly and carefully as possible. he tickets from elizabeth warren and other populist them across, mr. brown, for that stress test they connected this year, in which goldman family came up short but were allowed to pay out dividends and powell said that was un

here with more is our economics and policy correspondent michael mckee.hank you for helping us sift this testimony p or was the takeaway indeed that he threat?rade is the >> he did his best to be inoffensive about it. not a particular number or effect on the company, and spoke in generalities, and economic theory that when you have higher tariffs, they grow at a slower rate and you can get inflation and that is not good for a country. however, directly address the administration buses tariffs, dancing away from it every time they ask about it. joe: on the question of inflation, over the course of two days, did we get any further insight into how chairman assessed's -- assesses the risk now? >> no. his statement in the follow-up comets on monetary policy where the economy is right now are pretty much taken from the fed statement in june. inflation is at the target, they want to keep it there, but it does not show signs of accelerating at this point. he noted we are not seeing wage inflation now. something forn or investors to trade on based on his testimon

joining me now, live from charlottesville, virginia is guian mckee.or of presidential studies at the university of virginia. professor, presidential studies is your thing. two presidents. what are your thing. two presidents. what are you thinking? don't know if you can hear me. am i coming through at all? yes, iam hear me. am i coming through at all? yes, i am sorry. that's all right. i know we are on your phone. given that presidential studies is your particular study, what are you thinking of these two presidents? the striking contrast is what really stands out. the performance in helsinki yesterday has been widely covered here in the us and around the world. really i think unexpectedly today we had barack obama's speech. the first time he has spoken at this link about these issues. and i was particularly taken by the fact that it was in south africa, in an international venue on the 100th anniversary of nelson mandela's birth, and that a loan is significant. and in the message that he delivered, he really did lay out an alternative —— alone. and an

michael mckee, good to see you.ry seinfeld and rough head to a garage for the vintage car collections. more on that. that is an awesome car. jessica it is an amazing -- jason: it is an amazing car. alix: this is bloomberg. ♪ alix: this is this is bloomberg. . coming up next hour, robert shiller. we turn out a businessweek beat. when i sit back and chill and let the experts take over. from trade damage why american allies no longer trust washington are making free trade deals that leave the u.s. out. how the electronic retailer found a way to thrive in the age of amazon. rhodes scholar, inside the company that is restoring vintage vehicles. road -- womansplaining? jason: is an hour of women. i like it. massar, mynow, carol partner. nice to see you. , peterer story this week coy, we love the sky. so on the news. carroll: can you see this. this is the world and this is the united states. peter coy is asking the question -- will het trump have in a lasting impact? he has called the eu a foe. cis morning. there was the c

david: michael mckee, you have followed this for years.of the reforms go directly to what rufus was talking about. curbing what is called preferential treatment. greater transparency. what are the chances it could get done without the president blowing the whole thing up? michael: a better chance without the president because this administration is hostile to the wto. changes, andopose which case they could get to work on it and it would take a couple years to get done. nobody is quite sure where the ,resident is going with this but he does seem to be attacking the wto from the outside in terms of neglect. they have been blocking the appointment of judges to the wto appellate panel which threatens the system of adjudication of trade disputes and he is using the security reasons for tariffs whichteel could mean everybody else does that and you have a breakdown in the wto. need: rufus, does the wto more teeth? doesn't it need to be able to say to china, behavior we are going to check you out? -- chuck you out? i am not sure how well consensu

heading further north, we have an accident northbound 101 on the mckee off ramp. traffic is definitely backing up there as you're approaching the off ramp there. after that, speeds are in the green. take it to 205, major delays for drivers heading to the tracy triangle, heading out and it's slow from i-5. caltrans has road work in the eastbound direction. they had some in the westbound direction but that's wrapped up. eastbound lanes, you can see they are moving fine but they will have a few shut down until about 11:00 a.m. meantime, we are tracking travel times through the stretch. you can see this portion of 580, very slow from those connecting out of modesto. 43 minutes from i-5 over to 580, then the ride is slow, dropping below 20 miles an hour. things will start to pick up but you're in the yellow, 28 minutes on towards the dublin interchange. bay bridge toll plaza is looking okay, in the green, no metering lights just yet. a few cars backing up but nothing to write home about, 11 minutes heading into san francisco. neda? >>> nice to see the clear skies on th

thanks so much michael mckee. the other big news is goldman sachs.ngs come out but it is all about the succession. lloyd blankfein stepping down as ceo on september 30 and will become senior chairman. david solomon will become ceo on october 1. what it means for the individual businesses and talent in the company going forward. we will discuss that. coming up, more on mr. powell's terrace -- testimony. we will discuss with peter university'stmouth tuck school of business. this is bloomberg. ♪ powell's testimony coming to a time when investors are paying attention to the yield curve as indicators previously indicated economic recession. the ceos weighing in on that decision. >> reversing the balance sheet i think is very easy that rates could go up in a healthy environment. in history, we have had rates going up or you have a healthy environment. >> there is a flattening of the yield curve. that somewhat reflects peoples future view of rates and where rates will be. i don't think that has indicated any way of recessionary concern. >> i think we will s

weekend when i don't mckee or love with to the head those who is us of the past in. the. anything. but. i. missed. a. donkey but. now i. know. what. hair. no one knows but i have. that. ship a hater fish. him and. i had time to she. food. i didn't expect to hear so fast she wants. only front gradually i forgot she became my friend too i didn't choose this friendship but sure you got it and they loved it. spending time with show you know was a lot of fun she wanted to learn and discover new things all the time when we won't kill me it's a hidden away and. well hey kiddo. hey you are. a long long good tactics into how bill put it on a phone to clone one of love and not. a good. we're going to get to her. so it's. getting into the world nothing. is a. good thing and. not for the what good would a headline by a critic of the i look forward leaning on the house while i phones would destroy it because but yeah the typical hub just ahead needs. to hit us up to do it one weeks ahead new head day and i've been the have one shot up in the fuel to add a new to just ahead with the chain link.

michael mckee, bloomberg's economics and policy correspondence.ng up next, why investors are lighting up over 150 marijuana stocks. this is bloomberg. ♪ amanda: highflying stocks. the u.s. focused marijuana stocks are seeing increased level of investor interest as more states, including massachusetts and new jersey, push ahead with obama era legalization policies. meanwhile, in canada, hot stocks are burning out, hitting highs until this year. christine portland is with us. is with us. oram we are still not exactly sure ownership, including investing is going to be treated legally in the u.s.. that's why they personally traded at a value gap. there is so much on certain -- uncertainty. jeff sessions made it worse when he said he was going to rescind the memo that basically meant there was a risk that the states that it already legalized and those pursuing legalization would face legal challenges at the federal level. a lot of uncertainty remains, but there has been some small indications that the states are moving away from that and they are going

the 1700 block of mckee road, as well.f morell avenue and the pc repair place on crocker avenue. in each case, investigators say the outside appeared legit, but inside pictures like these, full blown gambling machines set up and operating right under the collective noses of patrons who frequent the area. surprise you at all that this is going on here? >> yeah. i guess so. yes. my goodness. well, nowadays, who knows? there's so much fraud everywhere. >> reporter: five business owners and employees are in custody. 51 gambling machines have been seized along with $75,000 in cash. >> there is a lot of peripheral crime that goes with these types of illegal operations. it could be quality of life issues all the way up to armed robbery. >> reporter: officials say two additional warrants were served in the rocksprings and east san jose neighborhoods. the result: 13 gambling machines and more than $280,000 in cash seized. police say the criminal element is attracted to the high cash flow of these types of fronts and the resulting c

new york native and defending champion mckee sudo chomped down 37 hot dogs and buns, making her a five-time winner of the women's contest. they each took home the coveted mustard belt and $10,000 for their eating prowess. >>> hundreds of thousands of revelers have gathered at the caital. a capital fourth celebration. ♪ the star studded concert including a performance by the national symphony orchestra. many came out early to watch dress rehearsals. the grand finale features fireworks over the national mall. >>> new york city officials are expecting 2 million people on the banks of the east river for the big apple's fireworks display. thousands of uniformed and plain clothes police officers will patrol the area to keep everyone safe. >>> on abc 7 news at 4:00, next. laughter and smiles today from some of the 12 young soccer players trapped in a flooded cave in thailand. the latest on rescue efforts to get them out. >>> to london where police are investigating additional sexual ( ♪ ) your heart doesn't only belong to you. child: bye, grandpa! and if you have heart failure, entrusting your hea

over to michael mckee . central isn't a message. it is an economy operating in top gear. another gradual increase in the benchmark. inflation might soon run above their target by falling unemployment that would push of wages. a number of participants expected to pick up further. many business contacts indicated they were experiencing rising input costs. many noted if the fed's days at the current policy path, it could be at or above the estimates of the neutral rate next year. what could knock them off their path? uncertainty and risks associated with trade policy intensified. policy makers worried about and understandable fiscal path as well as risk from clinical and atomic developments. there was a long discussion of the flattening yield curve. the federal funds rate could be causing it. some thought may -- it may be it would bee and important to watch. too good.ht just be inflation has an accelerated even though unemployment has fallen below what the neutral rate is. say theticipants concern in which the economy operated could give rise to heightened inflationary purpo

the 1700 block of mckee road, as well.r place on croply avenue. in each case, investigators say the outside appeared legit, but inside pictures like these, full blown gambling machines set up and operating right under the collective noses of patrons who frequent the area. surprise you at all that this is going on here? >> yeah. i guess so. yes. my goodness. well, nowadays, who knows? there's so much fraud everywhere. >> reporter: five business owners and employees are in custody. 51 gambling machines have been seized along with $75,000 in cash. >> there is a lot of peripheral crime that goes with these types of illegal operations. it could be quality of life issues all the way up to armed robbery. >> reporter: officials say two additional warrants were served in the rocksprings and east san jose neighborhoods. the result: 13 gambling machines and more than $280,000 in cash seized. police say the criminal element is attracted to the high cash flow of these types of fronts and the resulting crimes hurt everyone, including th

chopper 4 flying over these fields at the mckee wildlife management area where the sunflowers are pnow atak bloom. >> what a beautiful picture. the maryland department of natural resources plants the flowers each year and harvests the seeds to feed the birds. people are allowed to take h pictures withe flowers but you can't damage them and youn' ca pick them. >> great day to be out there, too, looking at those flowers, sure is. >> will this great day last, great weather last? >> storm team 4 meteorologist amelia draper has the answer. amelia, good flower watching weather for us the next couple of days? >> it is,in lo for low humidity to stick around tomorrow and saturday and mainla dry conditio well. on storm team 4 radar i'm tracking an isolated shower and this shower unable to cross the bay. notice it overren your in cambridge and slowly starting to sink south and everywhere else is completely dry and everybody is going to stay dry tonight, a really nice evening because thee humidityls are so low. currently we're at 90 degrees but as the sunostartso down with dry air in place we're r

michael mckee is there with a key voice and finance. mike? >> they you very much, scarlet.mberg is present in idaho these days. i'm here with palm a collie, the --mer -- paul kelly it's nice of you to join us here. you work retired from actively managing money, but you keep an eye on everything going on. jay powell the u.s. economy is in a "really good place." do you agree or disagree? >> it is hard to argue with the truth. if you look at gdp growth, inflation closer to target, unemployment incredibly low, the economy is in a good place from a cyclical perspective. where i might push back on that, and this is my hobby is that i is a bigome inequality black mark on our economy. that is a more structural phenomenon as opposed to a cyclical phenomenon. >> you made the point that that partly comes out of monetary policy and they are the only policy coming out of town out of recovery. where's the fed now and where should they be following? paul: the fed should pat itself on the back and say that they did with the textbooks could not do -- said they could not do. getting out of t

speaking exclusively with our own mop mike mckee. to break, take a look at markets of across the board. 40 minutes into the session with the u.k. outperforming europe right now. of three quarters of 1%. this is bloomberg. ♪ welcome back, this is the european open. president donald trump affirmed the u.s. commitment to nato. but only after dragging top allies through a chaotic today's of insults, accusations, and demands for more military spending. with us now from brussels is guntram wolff. thank you very much for your time. i have been following this from new york. you get a more u.s. sympathetic take from there. to me, the most fascinating piece of this is that the north stream pipeline continues to be an issue. why do angela merkel has put so much of her political firepower behind making a deal that enriches vladimir putin and hurts the ukraine? that's a very good question. it's a project that would increase and improve energy supply in central europe, in germany in particular. if weice would be lower import more gas from russia t

bloomberg's michael mckee. unexpected.t do we know so far about the strength of the victory we are as ing about, particularly you look at the house and the critical for how he rules going forward. >> absolutely. the probably going to take rest of the today. monday in mexicotoday. onday in mexico how much political capital amlo will have, we have 40% of the in. the early exit polls indicate hat he probably has a majority in the lower house and may be one n shouting distance of in the senate. it makes a difference with how pursue his he can agenda and how much of a mandate he can pursue. julia: how aggressive do we expect him to be? looking at the comments in light of comments that he made. mark. med to placate the following the rule of law in the particular.or in eric: there were two speeches, one at the hilton hotel. other in the zokolo or the main square of the nation, a away from the first location. but the first speech really felt it was aimed at bank executives, porate and really to assuage some of the concern, and the

peterson andn dana michael mckee. .evin holt is still with us where is the inflation?s a good question. we saw in the gdp numbers that people were spending more money and we thought that was because of the tax cut, and that you would have greater personal after-tax income. i am looking at the employee costs and they are not rising. i mean, they are rising but not as much as they had been. half a percent in the last quarter, then 9/10 of 1% in the first quarter. people's after-tax incomes did not go up quite as much as they were expected to. david: is this just simply good news? when you put these numbers together with 4.1% growth in gdp, that sounds pretty good. dana: for the consumer, it is not so bad. , think with respect to income we did see very large upper revisions to after-tax income in the gdp report. real disposable personal income was revised up significantly over the last several years and the savings rate which was pretty close to 3%, and had been following comment has been pretty steady around 6%. in the last reading it was close to 7%. even though we have

our own michael mckee sat down with him. he says in regards to inflation, he is comfortable. even at as high as 2.5%. that would be well above the 2% target. let's hear what he said earlier. >> i had put in three for this year and next year. i have not moved off of that although i am open to an increase this year if we start to see inflation accelerated. kathleen: he is not rushing to raise rates even more this year the consumer price index report is closed to watch today. bloomberg into the now, because what is important to most people is the year-over-year rate. what you can see here is the headline, up to 2.9%. we had a higher brent, which is an imputed number. gas prices falling. -- since fastest cinch 2012. highest rate, you see upward pressure on consumer prices. a put 2% there but i have point to make and that is the 2% target does not refer to cbi, it refers to the pce deflator, this .ore line -- this blue line the main number just under that 2%. and thata sweet spot is why jay powell said he is not ready to declare victory on inflation. people are wondering if tariff

economist at current cornell loss will professor paul mcauley at the rocky mountain summit with mike mckeenapshot of some of the biggest business stories in the news today. blackrock intruders are frontrunners to oversee about 120 billion dollars to lloyd's. no comment yet, but bloomberg has learned that a decision from lloyds could come in the third quarter. a single winner could be selected, or employees could split the mandate. invited good for the contract after ending a partnership with standard life aberdeen. and johnson & johnson will appeal a multimillion dollar verdict. a jury in st. louis ordered --nson & johnson $40 billion -- $4.7 billion. off -- now kinds is now meet of all kinds is now off the menu at wework. wework says it will no longer expend meals with any red meat, poultry, or pork at events. the company's cofounder says avoiding meat is even more beneficial to the planet than switching to a hybrid car. and that is your business flash update. a top level u.s. delegation is out in mexico for talks with the president-elect as well as other officials. to accomplish?pe they

numbers for the month of june. 12:15, after carter will have a on stage conversation with our own mike mckeeuntains summit. and then the u.s. treasury will be auctioning $14 billion in 30-year bonds. let's get an update on what is making headlines outside the business world. kailey leinz has first word news. says hepresident trump is committed to nato and everyone has agreed to increase their financial commitment. the president spoke in brussels after an emergency session prompted by president trump's attacks on allies over defense spending. french president macron said spending plans have not changed. president trump's latest threat make the u.s. and china resume talks through a new round of negotiations. the trump team is also willing to resume talks. the administration ratcheted up pressure by unveiling a list of $200 billion of chinese products that could face higher tariffs. opec's oil output may be stretched to the limit by supply crises. the cartels gulf members may have to pump almost as much crude as they can to cover losses from venezuela and iran. saudi arabia may have to draw re

. >> the captain, 51-year-ol nneth mckee seen in a picture of dailymail.com survived. his attorney tells nbc news neither he nor his client is speaking publicly at this time. the questions about safety continue to swirl. the associated press reports the boat was pulled from operations for four months in015 by the u.s. coast guard for a, quote, hazardous unsafe condition. in 2011 the boat lost steering on this same lake with 30 passengers aboard, although ina that it was able to make it back to shoresafely. >> holding this family up -- >> in indiana aigil for the colemans who lost nine family forers, all of them posing this happy photo shortly before this i fated boat. a chaplain who visited with tia and another family, all nine survived, questions about why one perished and others survived. >> why h one nine die and another had nine live. that is difficult to understand and comprehend, soare all wrestling with that. >> funerals for the 17 people who dieded are plaf the coming days. meantime ripley entertainment, e companies that own the duck boats said it is going to p

join me as michael mckee. also with us geoff dennis.ple that with friday's number, -- mike: we are watching the impact of tariffs, the trade war that china may be getting into and the lag effects of tightening the chinese prom last year trying to deliver trying to move some of the shadow banking system out of the financial system and what we are seeing is a growth trend that is weakening. a chart here from bloomberg that shows the growth trend from our now cast which measures monthly changes in gdp moving down significantly. we're talking about growth in the upper sixes and they will meet the target of 6.5% this year. we are seeing a slowing before trade data starts to be affected by the trade war. seeing lagged effects of tightening. alix: for emerging-market investors, to you like china? geoff: technically we are neutral. we don't dislike it or like it greatly. is,way we look at it michael is right you have not seen the impact yet of the escalating trade war. we need to see how escalated it gets over the next several months. tohink th

michael mckee, thank you. from new york, this is bloomberg. ♪ julie: let's talk about the earnings.rocky run recently. they have bounced a little bit in the very short term in the past month or so, not so good. row, none4 days in a of them are catastrophic. i think there has been a recalibration of the bullishness we have seen. for a while and -- for a while, everyone is coming on air. is put up orow shut up time. we know what the tailwinds were, tax reform and regulatory reform. we know about the capital returns, that is all behind us. have forward, you headwinds. the question is, is it enough to overcome headwinds? we will find out. usually what happens with bank earnings is the expectations are difficult to calibrate. some win and some loose. that is why i'm playing it from the point of view of one tends to balance out the other. >> so what do you think will happen? you won't see that much movement by the end of the year? >> that is what i'm thinking about. jpmorgan rallying, wells fargo, getting beaten up. from an individual point of view is a lot of activity. i do not know what

host: matthew in the keys rock, pennsylvania -- mckees rocks, pennsylvania, your thoughts on immigrationnd customs enforcement. caller: i do not know if "abolish" is the right word. maybe folded into a couple of other agencies it do with immigration or border security. i never thought it was something that should've been created. if memory serves me, it was created after 9/11, was it not? host: yes, 2003. caller: i have noticed the city i used to live in had ice agents. they always seemed to get in some kind of trouble. a dui here, a car accident there. host: you say the agents themselves? caller: yes, a couple of them did. that is the problem. i think there has also been problems with some of the people that they hired and tried to ,xpand their talent pool personnel back in 2007 and 2008. host: michael is in new kensington, pennsylvania on our republican line. caller: thank you for taking my call. thank you for c-span. it is wrong to vilify these people that have been put there to protect our borders, to protect the security of our country. , itow there has been a big seems like a media