michael mckee and brendan greeley in jackson hole.ood morning. ♪ tom: it will not make the headlines in america. it is a big deal, yen at 1 10.84. of bloombergka tokyo reporting there is no inflation and japan. this is a big deal for asia. outright deflation again in japan. our morning must read. vonnie: kit juckes from socgen talking about the top macro topic of the month, the chinese fx regime shift here he says the objective remains a puzzle given the shift was followed by a tightly managed float. he goes on to say the u.s. dollar will ultimately do well in a macro environment of declining global reserves. bill lee of citi with us. how much was the yuan depreciation related to the selloff? bill: the listening was the exchange rate was an attempt to be imf friendly. it was not for macro purposes. what we conclude is the regime is trying to find its way to find a liberalization scheme it wants to continue. and they did a devaluation they have done days of depreciation and they are within thell -- a collar, strength to the bottom and

tom: michael mckee with a great economics perspective, skip york on oil. our lower -- our lower oil are lower oil prices -- will spendink we some of that savings at the pump. the petroleum trade deficit is down $80 billion from where it was a year ago. tom: how much does this fold into economic forecast? gdpmuch do they bring up because oil is cheap? mike: it depends on the time period on which you are talking. it has been pointed out the latest job in oil prices and gasoline prices comes at a time when we are going back to school shopping, an important time of year. tom: are we? are weak? folks, joining us tomorrow, rachel riley, taker of my money. year -- explain to us what she is trying to say. mike: she said the impact of the rising dollar is much bigger on other countries than the united states, not so much in the united states because traders largely invoiced in dollars, so it does not make a difference for us, the impact on growth in much smaller -- the impact on growth being much smaller. does stan fischer and the assembled at jackson hole -- do th

pimm: joining us live his michael mckee.hat is your sense of where things are headed based on your conversation with her? is funny because earlier this week all the talk was the fed pushing back the september date into maybes december or 2016. a couplegdp report in of days rally on wall street and every one is talking about september being a potentially live option again. the feeling generally about the gdp numbers as they tell the fed they are getting close to where they need to be for a rate increase because all the cylinders for the economy seem to be firing and even the inflation numbers and not too bad. matt: how are people reacting to bush's.7% is a most jeb target. you have on of women at 5% and on inflation around 2%. what else does the fed need to see the raise rates? >> that is a good question. the theory has been, and the basicallyrs have said as comes out of the economy, as we grow faster, that will start to put inflation pressure on the economy. we will start to see more inflation which is their goal at this poi

central bankers are michael mckee and brendan greeley.an fisher will discuss inflation and it is the one thing the donald trump hasn't discussed. the stronger dollar trumps all. this is bloomberg surveillance and we are live from the world headquarters in new york. i am tom keene and i took two days off. well-timed? vonnie: you could've taken any two days off in august and you would've missed something. tom: will bring you up to speed on currencies and commodities. let's begin with our top headlines. isn't asoday's decline steep but the direction is still investors were not encouraged by the interest rate cuts. starteduro the stocks skidding again the day after germany britain and france all down by 0.66%. the s&p 500 coming off of its worst six days and five years. central bankers plenty to talk about they all gathered it sent -- jackson hole, wyoming. we asked mohammed. >> it certainly reduces the probability significantly. cautiousill be very and it will what to fuel further volatility and it will most likely wait and not initiate the

me -- weclueless, like turn to michael mckee for tea leaf wisdom. and we will talk about hedge fund carnage within the hour. mike, we have to rip up the script. we are in the midst of the dong. tell us the story of how we ended up with 10,000 vietnam dong, worth 44.7 cents. mike: i cannot even buy you a cup of coffee with this. . brought back some you can keep it as a souvenir. this is an example -- tom: this is an example of what you and i have done. will we see more of vietnam's devaluing? mike: probably. you make a good point that they are joined at the hip to china. the annan's largest single trading -- vietnam's largest single trading partner is the united states, and the vietnam dong does not mean much. with asia appeared we see malaysia's currency fall by 12% this year, and we have seen rhodesia posterity down by 4%, 7%. vietnam only down 4%. to remain competitive with the region, they have to weaken the currency. tom: let's move on. i know stanley fischer has binders full of dongs. does janet yellen care about the vietnam dong? or the contex

scarlet: michael mckee has been going through all the headlines. news now, but it does seem to be all about inflation at the moment. when fed officials met three weeks ago, most of the minutes say the conditions for policy had not yet been achieved. the conditions were approaching that point. confidence prices would continue to move up. inflationisks from to -- that is what the

scarlet: michael mckee has been going through all the headlines. cannot call it breaking news now, but it does seem to be all about inflation at the moment. when fed officials met three weeks ago, most of the minutes say the conditions for policy had not yet been achieved. the conditions were approaching that point. confidence prices would continue to move up. inflationisks from to -- that's what the fed markets have been looking for. higher rates of resource utilization appeared to have had limited affects the date on wages and prices. they agreed to continue to monitor inflation deponents closely with all members indicating they would need to see more evidence that economic growth is sufficiently strong and labor market conditions confirmed enough. befores three weeks ago the latest jobs and price data was released. the time, some emphasized the economy had made significant progress over the past few years and the economic conditions were met shortly. while they generally agreed additional information on the outlook will be necessary before they

lisa abramowicz and michael mckee, thank you so much. next up, the new york stock publiclyroute newest traded company. houlihan lokey. we will hear from the ceo. ♪ scarlet: welcome back to the bloomberg market day. i'm scarlet fu. pimm: i'm pimm fox. companies are increasing their stockpile the most in two years. it is generally seen as a sign of confidence. if company -- if consumer demand does not increase, they may cut back and that would be a drag on the economy. it may take more than lower gas consumers'mprove confidence. views on the economy and personal finances remain unchanged. old media money meets the new media market. has a cold nomination of websites that focus on food. vox will create a partnership to help the network better connect with young consumers. why not.rkets? pimm: julie hyman. julie: secondary offerings from shakeand shakes not -- shack, and their stocks are doing different things. shake shack shares are doing what stocks usually do when they offer more shares. you see a dilution for existing shareholders. tesla,

mark: the governor of the reserve bank of india city down last week with michael mckee.et a check on the european market close. mark barton reports from london. mark: 900 billion euros disappeared from european stuff in the month of august, putting that into percentage terms, 8%. the stoxx 600 fell by that amount in the month of august. the biggest monthly drop since august of 2011. every single industry group on the stoxx 600 fell in august led miningcompanies, companies, chemical companies. 16 billion euros valued disappeared from the chemicals industry. the oil and gas industry lost almost $60 billion as well. an astonishing and to the month. stocks are finishing lower. when will the fed raise rates? that is a big question right now. here are some big moving equities on this monday session today. french mobile telecom company reported weaker than expected first-half profit. it said domestic competition. cutsans to widen its cost in its transportation unit according to tito's people familiar a shareholder estimates a lower dividend for the year. and the italian oil com

mark: brendan greeley has been covering the jackson hole symposium with michael mckee. thank you so much. he will be with us throughout the day here on bloomberg television, quitting a conversation with a benefit president dennis lockhart coming up in about an hour at 2:15 p.m. new york time. matt: coming up, exclusive interview with ash carter, sever security, wearable technology, government surveillance are all things that they're going to discuss. we will get a preview, next. matt: welcome back. leading the way, that is not what is catching our attention. julie hyman joins us now to show us the story of the day. oil pricesing about continuing their search today. take a look, up 7%. really taking off more sharply around 10:00 a.m.. a little whilem ago, showing an increase of one in the number of rigs, but that doesn't affect the phenomenal driver. it looks more like a snapback will stop the two-day gain in oil on track to be the biggest in 6.5 years time. 45.58. earlier this week, it was below $40 a barrel. it is been a rapid move. we're watching retailers. as oil cli

watching the market in china and europe and the u.s., the vix is way up at michael mckee who talk tof the kansas city fed yesterday and she said wall street volatility does not change my plan. she is a nonvoting member this year but has been arguing that the rate should come off of zero and she says we should not a attention to what wall street is doing, we should pay attention to what the economy is doing. you will find a strong argument from a number of people that whatever happens on wall street, they are not paying attention. mark: thank you. the annual symposium gets underway from jackson hole, wyoming and we will have more at 3:00 p.m. new york time. michael mckee and brendan greeley will speak with thomas egg - hoenig.oned more on the market snap back as we go to break. the dow jones industrials are up 340 points. s&pnasdaq is up 103 and the is up 2.40 5%. we will be right back. ♪ >> 2:00 p.m. here in new york. the dow jones industrials are on track for its best today rally since 2009. oil is having its best day in three years. what has investors shaking off fierce? >> a decad

tom: michael mckee and richard claritin are coming. to -13.ow back crude begins to test $39. on to the second screen. 15.25., west texas is on that $39 in the watch. ./ brent is what the world is watching. through 65, 66, 67. in march, we got 270 ruble per dollar -- to 70 ruble per dollar. of course, the glencore news, as well. as corporations are challenged. i want to get through this in to second's. two seconds. this is the real economy affect when we talk about mumbo-jumbo on the data screen. 15% inflation in russia. brendan: one of the most surprising things is the relative independence of the central bank of russia. stick or as a hockey right angle. we do that for mr. putin because he likes ice hockey. that is a submarine. because he likes submarines. tom: you are all wound up this morning. you wait your wheaties this morning. brendan: sorry. modest confusion ensued yesterday. dovish was the word i saw most often. that is a tinge of further new mediocre. rublenge, the peso, the -- the 30 leaves for janet yellen. michael mckee provides minute by minute wisdom. we are hono

michael mckee and brendan greeley are in the early morning there.wkish and dovish grizzly bears. brandon? there is a stuffed grizzly bear in the jackson hole office. it is very intimidating. what is not any clearer is what is going to happen when the fed today,nts gather discussing the possibility of leaving the zero bound in september. mike mckee is with me, he's our economics editor. esther george is well-known as a hawk and urging that we leave the zero bound. very interesting what she told mike about the path of liftoff. >> we had been at zero a long time. i think it is reasonable to expect that i give some volatility. i would like the opportunity to how the economy response -- a more gradual path as opposed to more rapid. brendan: we've heard this before, we do not have enough data. so we do not know what is going to happen when we leave the zero ounds. mike: they are making it clear they are going to do it slowly. wall street pushing back, suggesting you are going to have to wait. volatility, it is inflation or lack thereof that is going to ca

john: coming up, michael mckee z -- macasey. ♪ john: our guest tonight is former george w. attorney general and current jeb bush advisor, michael mukasey. you wrote an op-ed piece in the washington journal. you have come under some criticism from defenders of secretary clinton in recent days who are upset about the notion that no one is pointing out that you have not identified yourself as an advisor to jeb bush. i want to get that out of the way. i want you to answer the question of the extent that how that affects the situation. michael: i have not spent a lot of time with governor bush. i got an e-mail from an editor at the wall street journal asking me if i had been following the story and whether i was interested in writing anything and i did. i didn't check with anybody on the bush campaign. i haven't spoken with anybody there in months. two-parter.-ed is a through in a went relatively careful way and talked about the various areas where secretary lee -- clinton might be in some legal jeopardy. area,ings in the legal one related to keeping classified material in an un

tom: michael mckee will join us with his perspective.ack story of what was seen in jackson hole. the markets react and begin to set up for what is without question the event of the week. this is friday's american job reports that will affect markets worldwide. been coveringe that. money needs to be ponied up. much more than that, we get ready for friday. we will talk to michael mckee about this. skip your will join us. he is from houston. inwill talk to him about oil america and saudi arabia. manus: that is probably the single biggest issue in terms of the oil. a lot of deals are being done this morning. we will tune in at the top of the art. tom keene is coming home from jackson hole. fieldis a supergiant gas off the coast. it is the largest ever such find in the mediterranean. it may hold 30 trillion cubic hit of gas. 5.5 billion oils of barrel -- girls of oil. -- barrels of oil. forony, what does this mean them in terms of their overall production? anthony: good afternoon. this will shore up the reserves for them. they need to replace

erik: michael mckee will be here to make sense of the numbers. ♪ erik: if you are making u.s.uch nothing matters more than job creation and the jobs report the most important economic indicator. it will be out on friday. michael mckee will be here and we will be talking about jobs but first, the ism manufacturing data came out about 40 minutes early this morning. that tells us something about the economy. michael: somebody screwed up somewhere, but the headline number is worse. now that the new york mets shortstop cried on the field we know there is crying in baseball. but there is no crying in economics. the topline number falls a little bit to 52 .27 -- 52.27. stephanie: the crying is usually in the stands because the game takes so long. michael: yes, but you like baseball and you would like it longer. the reason this is effective because inventory is declining. the first quarter gdp was propped up a little bit by big inventory build. if inventories are coming down, that would suggest there is room for more production ahead which could be read as good news. the bad news is w

lauren: former attorney general michael mckee attorney general michael b. casey appeared on fox news sunday saying clinton herself is the focus of the justice department, not just a private e-mail to her. >> to say the investigation is not of someone is ridiculous. to investigate people and she's one of the people investigated. >> clinton maintained she never sent or received classified e-mail in her private server was allowed. lauren: donald trump hitting wall street hedge funds saying he would change tax laws to make a hedge fund manager pay more. >> they pay nothing and it's ridiculous. the hedge fund guys didn't build this country. this guy shift paper around and get lucky. nicole lauren: the top rate on capital gains is 20%. that's a lot less than the top tax back on regular income which is 39.6%. huge difference. lauren: asian markets plunged overnight. shane had done 8.5%, negative for the year. hong kong fell 5%. the nikkei in japan 4%. in europe, stock opening sharply to the downside as well. losses of 2.5% for the ftse, cac and dax and germany. ni

world bank of indiana governor spoke about the global economy with bloombergs michael mckee at the 10thhering over the weekend at jackson hole. ofwe are in a time industrial growth that would be better if we grew faster. central banks have pretty much done with the could do. isis not if you that universally held, but in general across the world, central banks have done pretty much what they are capable of great now others have to step up and whether it is through structural reforms, , butme cases fiscal policy those might be the sources that we have tried doing too much right and as a result, in certain asset markets, prices are not correct. whether that happens smoothly, or that happens in a volatile fashion, i guess is anybody's guess. >> do you believe the secular stagnation argument? to thee is some validity fact that we are growing far more slowly than in other recoveries. there is something that is going on. i do not know if this is more of long-term factor given all of the innovation in what is happening. hope that we would find some way of monetizing all the good stuff that is h

pimm: just to mention that kathleen hays is winding her way, and michael mckee is winding their way toackson hole. we will have full coverage about the jackson hole meeting coming up. >> i will be here. pimm: interpreting. , carl.ou very much we will look at how commodities fared this summer. we will tell you what happened to copper when no one wants it. ♪ ♪ olivia: this is "bloomberg markets a." pimm: let's look at how stocks are performing. one sector in particular leading the rally. julie has more. julie: we had this overall rally today though we had some companies out with earnings in the retail sector. let's start with express. they are out with comparable sales that rose by 7%, more than twice what analysts indicated. it is also raising its forecast for the full year for comparable cop sales -- comp sales. the stock is trading at its highest since december 2013. abercrombie & fitch without a permanent ceo following the departure of mike jeffries in december. however, an unexpected gain and profit. $.12 per share. here to comp sales are better than estimated that they still fell b

michael mckee is here to talk about what exactly he brings to the table. what do we know about him? michael: he was the head of investment banking at goldman sachs until 2005 when he joined the harvard faculty and runs his own investment firm. he is also on the board of directors. of state street corporation. he has a lot of wall street ties in his written several books on leadership. the dallas fed is very free market and very independent thinking and it looks like they got somebody who may follow that mold. mark: those wall street ties, will critics of the fed see that as a help or a hindrance? critics will not like the idea of another wall street person going to the central bank but this is a done deal in the sense that the bank board of directors picks the new president and the federal reserve ward of governors can either both them up or down and they have approved him so he will be taking office in september. he will be on the board when they debate september 17 whether they raise interest rates but he will not be a voting member until 2017. betty: how does he lean? michael: we

i michael mckee with brendan greeley. we are with the commission of its.iday, it is her numbers that everybody is looking at. it is our numbers that sometimes people are bit concerned about, including those at the fed. it has been a major issue for policymakers and investors alike. can we trust the numbers these days? not that people are fudging the numbers but that maybe we are mismanaging the economy? particularly productivity -- what do you say about that? role of the bls is to help americans make smarter decisions all across the board. by producing gold standard data. all of our methods are transparent and we have the highest response rate of any survey anywhere in the private or the public sector. our discussions with everybody on how we do what we do and so, yes, i numbers can be trusted because they are based on the reports voluntarily given by firms and families across the country. all together in meaningful ways so that people can use them to make decisions. the think thef federal reserve has been doing this pain closer attention to the numbers be

brendan greeley and michael mckee. >> when you look at what the factors figure to the inflation forecast expectations have been relatively stable. we have growth, above trend growth, they were market improvements continuing. we do have some shocks in terms of oil price, commodity prices, and the appreciation of the dollar. in general, because the economy is doing better and growth is above trend, i believe -- i am reasonably confident we will get back to 2%. >> are we going to get back in time to justify a rate increase as early as mid-september? >> i am in the motive looking at all of the data, evaluating what is going on in the financial markets, and we are going to be putting a new forecast at the september meeting. but my view so far in looking at sort of all of the factors is that the economy can sustain an increase in his used rates. >> the inflation perimeter that the fed set has been met or close enough? lookow, i think we have to at looking forward. monetarys to be -- policy has to before looking policy. you don't want to wait until your goals are met in order to start moving. w

as our michael mckee has told us more than once, you have to read between the lines.you see is there are a lot of people out there who are working part-time who do in fact want full-time work. but i imagine if you work part-time for two or three years because you cannot find a full-time job, it might start to appeal to you because you can pick and choose. a lot of folks don't want to be board -- they may work at one job and decide monday, tuesday, wednesday i will work here, thursday, friday i will work here. bloomberg profiled a graphic designer who worked part-time and then is working part-time at his own wooden toy business. these are budding entrepreneurs. mark: you have a chance to look out for yourself. ofing up, a university massachusetts story -- an interesting story here -- sometimes hedge fund eight isn't what we think it is and we will be exploring that as well. betty: i'm looking forward to that. coming up on the bloomberg market day, hillary clinton is trying hard to shake off first if image as she tries to shake off questions about using her private e-ma

pimm: michael mckee and brendan have been there following all the events. earlier today he asked to federal reserve president loretto master how the united states is going to get back to the 2% deflation level. >> i'm reasonably confident, when you look at the factors factoring in the inflation forecast, inflation expectation has been relatively stable. we had growth above trend growth. we have labor markets for improving is continuing. now we have the sharks in terms of oil price shocks. an appreciation of the dollar, which is equally scary. the economy is doing better, and since it is on trend, i am confident we will get back to 2%. context of the fed. are we going to get back into deaths -- in time to justify a rate increase in september? we're going to be putting in new forecast at the september meeting. but my view so far in looking at all the factors is that the economy can sustain an increase in interest rates. >> inflation parameters that the fed has is that? >> we're always looking forward. monetary policy has to be forward-looking policy. you do n

mex: michael mckee e-mailed about this.dea is that a parent has instructions that go with the book and the parents need to jan often, -- yawn often -- scarlet: contagious. -- they should listen and not read along. it comes with instructions, but this is by a swedish behavioral psychologist, so you would hope that there is something actually to that. once she goes to sleep, it is fine. it is getting her to sleep. scarlet: i was looking it up on amazon and it is fascinating to see people who bought this book, what else they were interested in buying. they also bought "calm down time," a toddler to work. revolutionary12 strategies for your child's brain." alix and supposedly, the authors said, this is a verbal way to rock your child to sleep. i will report back to you on wednesday or thursday to let you know how it actually goes, if she can drift off in her sleep. scarlet: there is an online review that says "i'm actually speechless. i went from taking 2-3 hours to 12 minutes." alix: ok. know, thisst so you behavioral psycholo

let's ask michael mckee. this is completely unrealistic, correct?ing the a lot of play on the campaign trail. some of it makes sense, some of it does not. he starts off by asking whether the fed's payments to banks are reasonable and necessary. congress authorized it in 2008. he could start with congress on the question of whether it should be done. reasonable and necessary gets at the idea of these excess reserves designed to take money out of the economy so we don't get too much in patient. callis a monetary policy that they are probably not qualified to answer. cory: do you think this is a principled call or a saber rattling to get votes in iowa? mike: it is probably a little bit of both. originally, they were calling for audit the fed. the fed is audited. since the balance sheet has gone up so far, we are now around $4 trillion and the calls have gotten louder. the ideas that the fed is manipulating the economy is getting more entrenched. people are looking for somebody to blame. rand paul is saying, you can look at the fed to blame. the fed is

michael mckee is with us. i saw him in the elevator all packed for jackson hole. michael: the only thing we need to fear is fear itself. we don't know what is driving this route. do people come back and buy on the dip as they have done throughout this bull market? thedan: we thought conversation at jackson hole would be how to create inflation and the conversation looks like how to avoid disasters. michael: the fed is getting easier today. we will go now to top headlines. the market selloff went global and it began in china where stocks fell the most since 2007. it fell more than 8%. there are growing concerns at the chinese economic slowdown is getting worse. at the opencks sell as the dax dropped more than 2%. futures indicate that u.s. stocks will be lower at the open and ended last week down the most in almost four years. oil is down again today as well. went low $45 per barrel for the first time in more than six years. three american servicemen have been awarded france's highest decoration, the legion of honor. they helped foil what could have been a mass shoo

michael mckee is with us. i saw him in the elevator all packed for jackson hole. need to fear is fear itself. we don't know what is driving this route. do people come back and buy on the dip as they have done throughout this bull market? thedan: we thought conversation at jackson hole would be how to create inflation and the conversation looks like how to avoid disasters.

michael mckee carries in his wallet vietnam dong. we have never done that before, folks. the vietnam currency against mighty china, and even vietnam prospers and improves over this devaluation by china. very cool. brendan: and you have seen american investment into vietnam. there is the possibility of the tpp passing. tom: that gets us to the top headlines. everyone affected by china this morning. here is julie hyman. julie: the decision to devalue the yuan is rattling markets again and spurring the people's bank of china to intervene. the currency sang for the second day. bloomberg news reports that authorities did intervene to support the yuan and banks were told to limit some dollar purchases. stocks are down around the world and futures indicate that u.s. stocks will be down at open. they are now in a bear market down 22%. back assays it will buy much as $4 billion worth of stock over the next two years. they are trying to revive a share price getting hammered by concerns about the slowing chinese economy less than a year after going public. alibaba's market value has

that's where we find brendan greeley and michael mckee this morning. talk about the highlights thus far. brendan: the highlights are closer to where you are. fed presidents and central-bank chiefs from around the world are arriving today. we spoke to esther george of the kansas city fed earlier today -- earlier yesterday. the action is in d.c. where we got numbers from the bureau of economic analysis. if the fed is data dependent, what are they thinking? michael: if it were for the volatility in the market, they are thinking in moves up the opportunity for a rate increase because we are seeing strong growth not only in consumer spending but also businesses starting to contribute business spending. there was a build in inventories which may be a bit of a problem but we did not see a big hit to exports from the dollar. some of the things they worried about, not so bad. people have been talking about the disinflation. we did not see it in these numbers and we don't see it in corporate profits. while the concerns was, do companies pull back because they th

michael mckee, bloomberg new york.t brings us to isay's twitter questions, the fed brave enough to hike? chief economist at bamberg banks. by all accounts that seems to be the takes. do you think september is still a possibility? are they still too nervous? >> it is still a possibility. forink it would be good markets, including emerging markets, to get over this first hurdle and then to know from the fed itself that this will not be a rapid successional rate hike, but a very leisurely place. september is possible. francine: holder, you think they should hike in september? holger: i think they should hike in september. react,ly the way markets that would be the most market-friendly way. -- cpido you think consumer prices are the slowest in months. oil is on the floor. oil is declining. that is a very clean word, it is declining. getting cessation back to 2%. is it doable in your mind echo holger: it depends on oil prices -- is it doable in your mind? holger: it depends on oil prices. we do not have to receive it in thi

michael mckee and brendan greeley travel to jackson hole. the vice chairman will discuss inflation.ump has not discussed, the stronger dollar trumps all. good morning, this is "bloomberg surveillance." it is wednesday come august 26. i am tom keene. i take two days off, look what happens. a tent in central park, i had my insect repellent. trout fishing in the pond. i found nature in new york city. >> did you do the boats? tom: we did the gondola rides. i did not sink. it was great. tom: for all of you worldwide, come to new york city for vacation.

michael mckee, bloomberg new york. all plays out in asia, let's take a look at the hong kong market. >> good morning to you, guy. we are seeing asian stocks down on the back of the weakness you mentioned. prices,plunging oil really affecting a lot of the energy prices -- australian market is down 1.4%. some of the energy players like origin, also in japan being sold off. .6 ofin the red down by 1%. they have been focusing on china ong kong. we saw inrom the 20% april. we also had malaysia continuing to be sold off, down .6 of 1%. the lowest close since june 2012. and of course, the shanghai market yesterday had that while spring coming through on the close rising by about 2%. down by .6 of 1% today. interesting commentary suggesting that government intervention comes around the 3500 point level on the shanghai composite, rather than the 4000 point level. i also want to show you the enterprise index, entering what they are calling a cross. this is the 50-day moves across the 200-day, in february 2014, a lot of selling c

mckee is there with dennis lockhart, the president of the atlanta federal reserve. michael: the morning session has concluded. there was a lot of theoretical talk about how you measure inflation and what central banks should do about that. actual policy question about what to do about inflation because it is too low at the moment. the forecast are that it will start going up. the question is fast enough that you are ready to move now. face is whether i have to see tangible evidence. if i have to see that evidence in the data or whether i can rely more on the forces at work in the economy given me confidence that in time, inflation will rise to target. michael: there was a lot of talk this morning about the difficulty of missed and guessing where inflation is going to be 18 months out. >> at the moment it is even more complicated. inflation is going to be affected eye things like oil appreciationncy and such. it may be more difficult to read the true underlying trends at work. say with thek and economy operating as it is in a very acceptable manner, the solid.ance is quite t