alix: thank you so much, mike mckee and brooke sutherland. and you can find all of these charts at gtv , you can check it out, all the charts we are going to use, come and to save them to your computer. alix: we are waiting for the public address from erdogan. we will discuss the fallout in the asset class and the spread to emerging markets. this is bloomberg. ♪ >> this is "bloomberg daybreak." largest discount airline is taking its biggest target its history today. pilots walking out in a bid to get better contracts from the company known for its pennypinching. forcing ryanair to cancel at least 400 fights. the struggling british department store chain has been rescued. is scooting up the stores, as well as the brand name, for $115 million. that came after house of fraser went to court to seek protection from its creditors. shares of overstock.com soaring. 375has agreed to invest mind dollars in exchange for equity in the online retailer and its lot chains it's a very -- blockchain subsidiary. and that is your bloomberg business flash. j

information, let's get some details with mike mckee. president talking about slapping tariffs on in respect to chinese goods? mike: you want me to start listing? 6000 of them. this is basically everything. this goes well beyond the $50 billion of can uber product -- consumer products they initially imposed. also a lot of chemical products, agricultural products, and electronics, intermediary goods that going to other assemblies here or in china. ont could go have an effect u.s. companies that buy the products to put in her final goods. so it will be interesting to see how he does this. the story suggests he might do it in the same way he did it with the $50 billion, we will impose a certain amount now and a certain amount later, and maybe an ounce it today -- announce it today but impose it down the line, to give the chinese and chance to come back and negotiate. caroline: what is interesting about the way china can come retaliate likeot for like. what are we expecting from china? it is only today they were saying look, listen, heed the

david: that is mike mckee on location in jackson hole.ckson hole, we will talk to james bullard, st. louis fed president , as well as the dallas fed president and the atlanta fed president. julie: it will be busy. do not forget to watch "commodities edge" at 1:00 p.m. eastern. david: this is bloomberg. ♪ >> from new york city, i'm jonathan ferro. this is the countdown to the open. coming up, the united states and china imposing tariffs on each other's goods just as trade talks resume in washington. federal reserve preparing to raise interest rates again. the internal debate over hikes intensifying. saudi aramco's ipo delayed. remaining just there. well out of reach. in the markets, 30 minutes away from the opening bell. a classic old-school morning. price action nowhere to be seen. futures, dead flat. bond market, dead fat. fx market, just a little bit of dollar strength. at 115.74. through the week, federal annual get-together on the heels of the release of minutes from their july meeting. little doubt that the chairman plans to lend the

joining us with more is mike mckee. mike, what did you think of that interview?ike: pretty much what esther george always says. she has been one of the more hawkish members of the committee. as idea she sees those justified is no surprise given that inflation is around the level the fed targets and the economy is growing at a strong pace. september seems to be locked in. the question is december and whether enough members will decide to go along with that. bet as esther george will data dependent. there's politics and the president to consider and the fed tries not to take that too much into account, boy when you have a president tweeting about how if you were to be impeached and you doesn't think he well, we mustet will crash, be talking about the president's role in the economy here and how that might change going forward and what that would mean. no doubt they talk about on the sidelines but things are not recorded. the minutes show there was no discussion of the president's comments in july about the fed and what they should do. he has ramped up the pressure

david: we are going back to jackson hole and bloomberg's mike mckee is live with jason professorrvardse adviser. mike? michael: thank you very much. .e are here with jason furman thank you for getting up early in the cold to join us. you were in the obama administration. donald trump tweeted this morning the economy is in its best shape then it has been in decades. should he get credit? is it ok for him to brag about this? jason: if i had an economy this good, i would be bragging, too, so i don't begrudge president trump for doing that. thingsstock with where are, you have a good growth rate in a low unemployment rate is on the plus side and investments are picking up and that is on the plus side. but you still have weak wage growth. that is much on the minus side. but the most important thing is a economy -- but the most important thing in the economy is productivity growth. it is hard to tell if we have seen an increase in that. without that, we are not going to sustain the economy we are seeing. michael: do you see any policies or trends and corporate america that will change the p

mckee from in mike the d.c. bureau. close your key takeaway? would not negotiate in public but you give us clear areas where she sees there has been progress. mike m.: that was always the big sticking point in the agreement, with a good deal because the president was upset that many auto plants had moved to mexico. that i suppose his progress. she suggested they made progress on other issues. this is a 30 chapter agreement so there are many things in bulk. auto is just 1 -- there are many things involved. auto is just one. the dispute resolution over anti-dumping sanctions and dairy, not in the nafta agreement, but the white house would be like it to be included, those were the two issues along with intellectual property that have not been negotiated on. christopher egeland is going out of her way to praise the professionalism and good faith effort put by ambassador ightheiser.r -- l is that a shared view that there is progress in good faith on all sides? >> the view in the white house had been that things were going well and that they were sti

shery: for more, let's bring in michael mckee. mikethis is not the first time we're hearing president trump hitting back at the wto. called: first time he is it the worst trade deal ever made. that was nafta. maybe he is going to get a deal. he is switching gears. the president has not been a fan it takes u.s.ause sovereignty to a supranational organization that can rule on whether or not the u.s. was competing unfairly in trade and can impose penalties. he has never liked that idea. most economists say we would be in big trouble without the deputy out the head director general of the wto told us today in an interview it would be one of the worst things possible for an economy like united states which is so connected to the rest of the world. he says we are working on some of the changes president wants to see. mike, is there a way to tie the story together with the idea that some of the tariff battles we have seen and tariffs imposed by the u.s., that there is this belief that if all the trade deals look the way the president ultimate

with morefor more -- from jackson hole we have mike mckee. we have heard the fed outlook, but all eyes on jay powell now, what he said in his speech. is he a man under pressure? mike: not really. with the academy growing at the rate is, inflation at the target but not showing signs of accelerating, he really does not have to say anything. and most people on wall street have the feeling that he will not. what is in it for him to try to drive the markets one way or another at this point? we saw housing really decelerate this week. today, new home sales down to a nine-month low. and prices starting to drop for housing. we have seen the emerging-market problems. and you have the questions about what happens with tariffs. so maybe he wants to express it little extra caution about the outlook, perhaps more than george is doing. but that would be about as far as he would go, given that there is really no reason for the fed to deviate from its course, and we saw that yesterday. scarlet: still, there is a lot going on outside of the u.s. emerging-marke

scarlet: jeff, you are listening to what mike mckee was saying, also looking at text of the statementsticks out? jeff: there is not a lot here. htey might have done -- they might have done more on the inflation side. like oil prices. they didn't, they took the simplest route. this is the summer fomc statement, but say that inflation is near and let's move on. certainly, not a lot here in the statement changes. scarlet: let's bring in diane swonk, chief economist at grant thornton. talk to us about what you heard that sticks out to you? diane: the biggest issue is growth is not just solid, it is strong, and consumers an investment is picking up. these are better -- these are very subtle changes, but it sets up the stage for the leap in rates, or the jump in rates, in september. they will do another rate hike in september and we have plenty of time before them with lots of signals. the third is in the details. i think it will be a lot of issues in the minutes, from trade, tariffs, the things they are hearing. we heard the pmi today say that tariffs are seeping through and you will see i

mike mckee will be all over it for us.rspective, we are joined by ellen zentner: from morgan stanley. steps for being made, are you hopeful candidate will get in on a video? ellen: i think we are all hopeful. nafta has been boiling on the back burner, low boil for a time, and we have been so focused on u.s. and china. and i have not been very worried about nafta, because the reason this is taking so long is because they are working out the details, that means you are far along in the process. 16 versus about the five-year sunset, that is great. you can imagine trade negotiations will follow a presidential cycle, where you put in nafta and you immediately after start working on the next iteration of it because these take very long time -- these take a very long time. many trade deals need to be revisited, but to have a sunset after five years, i could see why that was a nonstarter. lisa: i like what you said, once you get into the details that means you are further along. to me, it's an of explains why we didn't see a bigge

great coverage coming up thanks to mike mckee.n strategist and cio of cross bridge capital. mike thinks the chairman probably doesn't want to move markets. >> i don't think it will be a thriller. jay powell, a lawyer by training. it is not that much in terms of janet yellen and bernanke were using the symposium for, powell will try to keep the message the same. the minutes have become more transparent over time, so the is whence this time jackson hole was important, we had a lot of ambiguity. you had to employ people ducis cash to decipher -- to decipher. itell's mission is to make understandable to the guy on the street. we have to ask questions. if the fed is dovish today and powell questions the hike in september, you have record shorts on treasuries, yearly highs and dollar longs. the move we have seen already this week is reflective of that short-term positioning. we are in a dollar doom loop. if the fed because dovish, it is not because of the u.s. it is because of what is happening with the rest of the world and china. if h

mike mckee has done a lot of coverage and the peso.er into the election. is peso a barometer of nafta-ne ss? >> it is. they had their own election that caused some tension. now you can see in the last couple of weeks that we have had tensions around turkey and so forth and the peso has done pretty well because there is optimism about nafta. see if thereing to is a handshake deal coming. tom: francine, you said it. didn't we back off the handshake deal? francine: yes, we think mexico is saying there was no real handshake. are trying to keep up, but different sources are saying different things. link between the politics in washington and what president trump does on trade? i think the problem with this administration's approach to trade is they try to fight so many wars at the same time. in my view they have been aggressive in the china connection, and right now they are struggling to do deals anywhere. it is crucial to get nafta on track. there is ant, bilateral talk between mexico and the united states, and canada is waiting on the si

alix: thanks to michael mckee and mike wilson of morgan stanley. what is making headlines from outside the business world. russia is complaining that the new round of u.s. sanctions are not in line with the constructive atmosphere at the helsinki summit. the kremlin is threatening to retaliate. the u.s. is imposing sections to punish the vladimir putin was a government on the nerve agent attack on a former double agent and his daughter in the earlier this year. there is a report president trump has suggested privately that he is open to broader sentencing reforms and he previously backed. according to abc news, the republican has met with republican centers to discuss comprehensive prison reform legislation. and italy is about to battle the european union over its budget. the deputy prime minister says he's ready to complete the tough tactics they used to win concessions from the eu on migrants. they want to do it without breaking eu budget restrictions. global news 24 hours a day on air and on tictoc on twitter, powered by more than 2700 journalis

that is david kohl joining us nna.jea and then we have michael mckee who is reporting for us. >> lucky, mike. abigail doolittle has more with the market. abigail dolan -- abigail: let's look at the major averages. we have seen gains where we have had lined -- aligned markets. let's break down the reaction market by market to fed chair powell's comments, a more dovish tone. --s is the nasdaq and we see when the fed chair says gradual heights word likely needed if , weeconomy remained healthy see the markets climbed a little bit about 2/10 of 1%. when we take a look at the 10 year yield on an intraday basis, this is an interesting chart because it shows fed heads talking amongst each other. when you look at the intraday chart, we will see that ahead of the cleveland fed, messner indicated said her neutral rate was 3%, so we saw the 10 year rate move up three basis points implying four rate hikes, but when fed chair powell said he had a more dovish tone, we see a .eversal and we are unchanged we also have a reaction with the bloomberg dollar index. lows, it hasthe been on pace for its worst day

here to discuss is michael mckee, our policy correspondent, and our trade reporter in washington. mikewe keep hearing the time, -- term, a deal in principle. what does that mean about getting a deal with candidate and the trilateral deal with mexico? e it: budget enough -- fudg enough so that you can later fill in the blanks. a deal incredible was made on monday with mexico, but not a lot of things finished yet. they need to get something done in order tomorrow in order for tom and jump to congress that a deal is coming to them and get it done before nieto leaves office on december 1. they want to have it wrapped up before the new president takes office, because he might want to tinker with it as well. so there is a possibility that they can get something done by sort of stretching and fudging a little bit, but it is hard to think that they will finish it all by tomorrow. shery: a lot to be done, but discuss what this could look like. are we talking about a three nation deal, about bilaterals between each other into separately? >> so, i mean, what we are aiming for, what everybody is a

mike: it is all straight ahead on "bloomberg best." ♪ ♪ michael: hello and welcome . i'm michael mckee is "bloomberg best." your weekly review of the most important analysis and interviews from bloomberg television around the world. let's start with a day by day look at the top headlines. since withdrawing from the nuclear deal in may, the u.s. has been turning up rhetorical heat on the government of iran. on monday, it raised the economic pressure a notch as well. >> president trump restoring sanctions on iran midnight tonight and reaffirms the u.s. plans to impose tougher penalties on the country's oil exports in november. the move has drawn fresh condemnation from european allies, who are standing by the 2015 nuclear deal that the president withdrew from in may. >> what exactly are in these sanctions? well, it will impact the u.s. dollar purchases and gold as well as aluminum and industrial software, as well as potentially impacting the automotive sector, and iranian debt purchases. the second round of additional sanctions are set to begin sometime in mid november. we have seen the

mike pompeo's trip to north korea because of the dispute on trade the china. jay powell delivers his keynote address at a a jackson hole. fed's rateding' the hikes. let's welcome michael mckee is at jackson hole with some foggy mountains in the background. it is getting a little colder. certainly the reception has been pretty lackluster. there nothing we were not expecting from the fed chair. michael: this is a lot of smoke from forest fires of steering the view. clear the making it fed will continue along its gradual path of raising rates. we don't know when double -- don't know when that will end. maybe a december move and we will see from their. powell said some people want us to raise rates faster. some want us to raise rates were slowly. we will take a page from alan greenspan's book and do it slow and steady and make sure we're not making a mistake. vonnie: the analyst notes i have been reading say the plan remains the same. the interesting thing is everything is not prop to any kind of change in policy yet. michael: the things that could derail the fed, from the chairman today, he noted there were some concerns about developments overseas. he was going to set those a