. >>> coming up in 45 minutes time twee speak to cleveland fed president loretta mester >>> thanks for joining me on the show today let me take you to some of the action we're seeing for the monday session the markets are reversed we're down 1/10 of a percent across the board we are seeing loss of franks in the u.k., patches of green around some of the peripheral countries in particular portugal, spain, the core market in zurich trying to track a little bit higher let's delve into the markets and see some of the bigger deals and capping some of the losses around the foots see iwg, edp in portugal, these markets slight a fraction at the start. seven straight weeks of gains here in europe the italian market down the most .2 of a percent. a couple patches of green. mostly in the red. financial services down. technology fading and health care you see weakness in the oil price. a strong run up in recent weeks and there's been a real head wind in this sector. it's 1/3 of a percent. >>> let's move onto the big story this morning, italy's president will hold meetings this afternoon the populis

mester made on the cleveland fed on transparent.ns with smoke rings, where there was no conversation, and that our good friend, chairman greenspan, nobody understood. and then there was a little bit of discussion there. now we're like overinformation, ex ante, ex post. there's no way they got out in front of this debate. they got to wait for the cat, right? carl: absolutely the point they're trying to make, they're incorporating data into their forecast, so it does have the forward-looking element. it's not the reaction to the fed. tom: drag heat to delay. and i would say last week was a really important week for the ex ante, ex post ballet, and basically they had to go, oops, there's no inflation, right? carl: right. and they have to sect oni'll with the fact that we are seemingly are crossing through full employment, but we're not getting into consumer inflation yet. i think the fed has the markets right where we want them, because the fourth rate hike of this year, which would be -- tom: the red sox and yankees right where they w

is --d of mester said it loretta mester said it is something she is watching.ked about cryptocurrencies because he was a conference here in new york and said it is pushing the u.s. in the wrong direction. multiple currencies have not been good for the u.s. in the past. richard clarida, end line to be , testifiesd chair tuesday and that will be closely watched by markets around the world. haidi: absolutely. thank you for that. don't miss kathleen's exclusive interview with james bullard live at 3:30 a.m. thursday if 1:30re awake in sydney, p.m. wednesday for new york fears. reynolds,arfield let's continue this conversation about treasury yields. >> in fact, overnight, treasury yields kicked against jim bullard's concerns with the 10-year rising to 3%, one of those magic numbers out there. if it can sustain about that, and we will get more calls about how the bull market might be ending. this was something that wasn't just a product of technicals. there was some talk overnight from one of the ecb policymakers indicating that they are moving closer to reducing the

vonnie: loretta mester earlier on bloomberg.sticking with the fed for our battle of the charts. that is where we take a look at the most telling charts of the day and what we mean for investors. you can always get there at gtv. kicking things off is michael mckee. michael: this chart plots where the fed sees the funds rate versus where the market sees it. something has happened of this chart that has never happened. i picked a random date. this is two years ago in march of 2016. the white is where the fed projects interest rates are going to be. the red line is where the market projects interest rates will be. let me make a change on the date. you can see for the first time ever, the market thinks we are going to have more interest rate hikes than the fed. it is a little bit unfair because the fed does not change its forecast as often. they will not change again until june but we will see if they go to four. it is a different kind of dot plot than we have ever seen. vonnie: and the more loretta mester speaks, the more that will

. >>> loretta mester says the central banks could raise rates more than she thought.he u.s. should keep the debt file in hand before things get, quote, out of hands. carl icahn and darwin diesen are backing out of the deal. >>> here's how your money and investments look on the back of the news halfway through the 5:00 a.m. hour stock futures very positive. up 100 points for the start of the dow jones industrial average. the hang seng and shanghai is higher a little red but not a lot markets are declining by literally .1 of 1% that doesn't mean nothing is happening. two anti-establishment parties in italy look closer to a deal this matters a lot more than you might realize. willem marx is joining us from rome with more on this global story. willem >> reporter: yeah, thanks, brian. we've had a pretty busy weekend in italy in milan, we've had the leaders of these two parties, they've been trying to hash out some differences between their two platforms trying to figure out exactly where they can find things that are threatening to expel thousands of immigrants if he's to

she made the comments earlier this morning mester also cautions that the u.s.ings get out of hand mester is a member of the fomc this year. let's get to julia hernandez and here on set with us drew mattis. let me start, drew, with you to get the economic backdrop. we had some numbers at the end of the week. where are we right now in your view anything change? is it hotter than you were airporting right now the labor market, the economy? >> the labor market has been hot for awhile we haven't seen the wage growth. the thing i think people are paying way too much attention to are the energy prices. are energy prices going up bad for the consumer yes. but the consumer has benefitted from a tax cut if you look at the number of minutes of work required to buy a gallon of gasoline, it's not all that different so on the capex side you should see a difference in relation to the rise in energy prices. >> victoria, earlier we had phil orlando on who was not worried about inflation. just didn't think it was a spike. just thought it was sort of business as usual. this is wh

. >>> on monday, i will speak to cleveland fed president loretta mester that will be live from paris. u.s. president donald trump is scheduled to meet with top u.s. automakers today. executives from ford, general motors, fiat chrysler, along with the heads of daimler volkswagen are expected to attend they will discuss changes to fuel efficiency rules. the trump administration faces lawsuits from california and several other states after freezing fuel efficiency levels to 2020 levels >>> geely eyes an ipo for volvo cars citi group, goldman sachs and morgan stanley have been picked for the potential ipo which could see volvo cars valued between 16 and $30 billion. geely said they're looking at the possibilities on listing volvo cars the swedish firm told cnbc an ipo is an option and arjun joins me with more from one other carmaker trying to use hydrogen as fuel. what can you tell us >> you are speaking about fuel efficiency there there's a lot of carmakers looking into thefuture of cars is it electric or other fuel sources. and a british company developed a car called raza which runs on

i spoke to mester from the cleveland fed, i asked about the yield curve flattening she said they considera consideration when thinking about the fed hiking path in the sense that they're aware that when they start hiking it may have a flattening impact on the curve. it's not happening on the outside. on the flip side, you had bullard warn that he could potentially see a case where the yield curve inverts if that does happen, i suspect a lot of complacent investors that you talked to will get unnerved. >> it's something to watch out for. it's not just goldman sachs warn being levels of debt, the imf, too, saying it expects the u.s. to up its debt to gdp ratio. >> exactly definitely something market also watch out for. thank you for joining me >> absolutely. >> for more on the strange things goldman sees going on in the u.s. economy, head to cnbc.com let's look at u.s. futures which are seen opening up softer dow down 50 points that's it for today's show i'm joumanna bercetche "worldwide exchange" is coming up next. ♪ (daniel jacob) for every hour that you're idling in your car, you're send