mr. carney, the artful mr. carney, talking about maybe raising rates.ediate effect on the guilty. and probably one of the reasons we saw a bit of selling in treasuries early. if you look at the foreign exchange side, these are close to five-years highs, at least on an intraday basis, but it has eased off, still showing the 6th of may. tyler, back to you. >> i got the artful karney there. i got it. happy father's day, rick. for next week's trading, plus priceline, that will buy you a lot of tables. if all reservations are automated, is that good? we'll give you the answers in a bit. we'll be right back. >>> according to dutch media, dozens of dutch soccer fans were pickpocketed while watching last night's world cup opener. they were watching the game in a big crowned in the brazilian city of salvador. one says a gold necklace was snatched around his neck. later netherlands plays against spain. >>> mary? >> tyler, we're looking at the big winners on the s&p today, at international game technologies, this on a reuters report that it's drawn takeovers from

mr. carney and the bank of england are normalizing, the u.s. are normalizing rates. rates doesn't mean that they're going to normalize to the extent they used to be before the crisis any time soon. or as the joke around this trading floor is, you don't need 200,000 to garner it. ben bernanke, some of these famous dinners that he's hosting for big bucks talking about how he doesn't believe interest rates are ever going to get to levels like 4% again when it comes to fed funds. many would agree with him, but there's always those black swans and unexpected fat tails. now, as for central banks being stewards versus masters of the financial universe, this is a topic that everybody needs to pay close attention to. because just because rates are normalizing, that isn't the issue. the issue is whether it's the deep pocket, the decision-makers of last resort, that global central banks -- and i'm not just talking the biggies with what's going on in japan or the uk or the eurozone or the u.s. i'm talking about all the other hundreds of central banks out there and all the econom

mr. carney put pressure on sterling. if you are an international company operating in the u.k., clearly your overseas earnings will be depressed. >> so are you changing the types of company that you are holding? >> slightly, yes. our u.k. fund. has been reduced we have. put more international earnings back in again. last year was more about domestic earnings into the early part of this year because the return of growth in continental europe. because some of the currencies are starting to return a little bit, looking to play more international themes again. >> here is what else is coming up. ready, set, buy. l'oreal's chief executive says he is just getting started with $5 billion in acquisitions so far this year. has a new handset competitor. and sci-fi meets reality. wewill begin to the right -- will dig into the rise of artificial intelligence. >> one stock we are watching today is rolls-royce. it is buying back a billion pounds worth of company stock after agreeing to sell energy assets to siemens. second biggest make

mr. carney seems more than happy to accumulate all sorts of power.ngland has never had these powers before. >> king created some of this opportunity. he was an aggregator of power. >> he was. particularly what you saw when he first came in. meantime, they are coming up with more and more controls of the banks. they certainly are tightening up on the banks big-time. the other thing is what is going to happen to interest rates? ratest is the interest connection? carney has said that when it comes to interest rates and macro prudential policy, the really important one is monetary policy. macro credentials policy is a service. -- macro prudential policy is a service. deal there specifically to with the housing market. heavy lifting of controlling the economy is to be done for monetary policy. >> that is still the last line of defense for dealing with housing. >> i think it is most important by a mile. >> mark carney has been switching like an unreliable boyfriend. i thought that was so funny. >> everybody loved that. it seems to me that monetary policy i

mr. carney. >> thank you, mr. chairman. thank you, mr. secretary, for coming in today. thank you for all your good work. i've been reading through the fsoc annual report, lots of good information and data in there. one of the things that's discussed in the annual report is the repo market as an area of vulnerability for our financial system. in fact, in hearing back from february before this committee governor tarullo started the repo market as the second greatest threat to the stability of our financial system after adequate capital requirement. do you share governor tarullo's concern, and what steps can be taken to prevent adverse consequences in the repo market during stress markets? >> i think that the short-term funding issues are quite significant. that's why when you call them short-term funding or shadow banking, you're putting so much attention and get them. the risk that one day, you are open for business and you don't even have the rebound of the money markets funding that you expected, we sign the financial crisis cause an immediate collapse, a collapse with

mr. carney's comments overnight, the pound as you see versus the dollar did come off 170, but still hoveringt pretty lofty levels. >> thank you very much, rick. you're up to date on the bond market. >>> take a look at this voidy. it is incredible. it's the video -- watch this. the shark taking on a go pro camera, took it right off the stick. will investors take a bite when -- we'll tell us which companies are inside the plastic box that could get a big boost. there it is again. worth a second look, i think. well, it is lunchtime. he was hungry. yikes. ♪ >>> a decent first half for stocks, s&p 500 hitting new highs, more than 20 times. what will the second half bring? the big correction that many have been talking about perhaps? or maybe not. we're back in two with the dow down 48 points. but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful inve

mr. carney quoting me, but i wish he would quote me in full context. >> there has been a lot of criticismthe deal from members of congress. everyone agrees your voice carries an extraordinary amount of weight because of your experiences. at the very least as a pow in vietnam. how do you reconcile the fact that you think this was a bad move with the reality that unless the deal was mad bowe bergdahl would likely still be in captivity. was there a better option? >> because we have a much larger obligation. that obligation is the lives of the men and women who are on the battlefield who are laying their lives on the line when we know full well that these five hard core, top level, which the taliban designated are going to go back into the fight and try to kill americans. unfortunately, and tragically, they have succeeded. and by the way, when we sign up in the military, we know that we go into harm's way and we know sometimes circumstances may not work in our favor. so to somehow say under any circumstances we would bring this wonderful -- i'm sure he's a fine man and his family is happy, to

mr. carney, the governor said, we may need to raise rates earlier than anticipated. be very wary because this is not to do with housing. that is critically important to do with the velocity. we know the train is coming. thereafterelocity that is important. there is a great chart. the price of money for three months in december of this year, bopping along, singing a song. >> explain this. before the speech and the markets are .75% positive by christmas. he spoke and it was one percent. look at the longer term chart. the last time there was a full drop in the price or the assumed risk, it it was during the bernanke taper moment. has carney had a bernanke moment? the head of peterson institute said he was surprised by mr. statement. >> either they have massively upgraded their forecast based on some new internal analysis, which we won't know yet. or he did not quite calibrated right, which happens to all great central bankers. he was trying to say, do not get to it -- do not get too carried away on the other side. eileen towards this -- i lean towards the second. i thin

mr. carney and what he has said of late may change the outlook for interest rates and the value of the poundto talk about central banks and how they communicate and whether there's a quid pro quo going on with the big players in the market. all after the break. type 2 diabetes effects millions of us. and for many, it's a struggle to keep your a1c down. so imagine -- what if there was a new class of medicine that works differently to lower blood sugar? imagine...loving your numbers. introducing once-daily invokana®. it's the first of a new kind of prescription medicine that's used along with diet and exercise to lower blood sugar in adults with type 2 diabetes. invokana® is a once-daily pill that works around the clock to help lower a1c. here's how. the kidneys allow sugar to be absorbed back into the body. invokana® reduces the amount of sugar allowed back in and sends some sugar out through the process of urination. and while it's not for weight loss, it may help you lose some weight. invokana® can cause important side effects, including dehydration, which may cause some people to have loss

mr. carney in his speech, to emphasis it's not about the target price inflation. it's about controlling the deficit and it is not a substitute for interest rates which address the economic cycle, not the credit cycle, per se. so essentially, this is about taking financial stability as an issue away from the worry bag of the mpc. >> bill, hi, it's louisa. some people might say, look, it's tough enough to get a mortgage these days. now it seems like we're going to have to go through more stringend rules. do you think the ability to get a mortgage is going to get dramatically tougher? >> no, but i think it is lending conditions was the evidence that mortgage demand has increased substantially. there was a material deterioration in confidence and optimism about the supply of moernlgs, possibly linked to the mortgage market review. so i think here we have to look at the situation. the bank will not avoid basically issues in relation to the oil price into the markets where it does not want to stop or prevent first-time buyers coming into that market. this is largely spe

mr. carney is speaking. >> the relative gap as we sit here today is probably about 16 points. we published that in our quarterly bulletin estimating that a quarter of that could be represented by measurement and there's a few aspects of that and i'll touch on them briefly. first with the just missed measurements of output, some of that subsequently we would expect to be with revisions of data, final data would come in. but some are more substantive. an example which is about to be fixed by the ons would be the treatment of r&d which is treated in an intermediate consumption as opposed to investment. so that is a secular underestimation of output which as i say is about -- we expect to be adjusted in the revisions coming up to methodology in the fall. other challenge owes on productivity added by value sector, it's one that the bang has done work on, capturing value added more broadly in the services sector is quite challenging as you're well aware. 70% of output is from the services sectors. it is less likely that there's measurement around the labor input component. that's mo

mr. carney's comments at the mansion house speech a week and a half ago.e key point i would make is yes, i think q4 is the right timing for the first hike in the uk. >> steven, we appreciate your time. i know you might be fairley busy on the back of the trading pattern. sterling has increased its holding at this level. it doesn't feel as though sterling is breaking out of this range. it's much priced into the trade. >> well, i think that's correct. clearly, if you look at cable or sterling/dollar, i don't think there's going to be a huge movement here, mainly because the dollar is likely to be strong as we go into the second and third quarters. i think the best way to trade this is against the euro. so i would suggest significant more downside on euro/sterling. we have this trade recommendation on and we're targeting 0.78 on the downside. but i think that's just the start. i think by tend of the year we could be even lower, down 0.76 or so particularly if we're correct in that the bank of england hikes rates in q4. remember, the ecb is going in the opposit

mr. carney talking a bit and the effect of the markets, whether -- they comply, and at least at this point's the biggest reason not to look for equity correction, but look at a five and a half year chart of the pound, basically october of 2008, down a little bit today, it's not changed the look of the charts. now, look at the euro versus the dollar, go to early may, and you can see consolidation there as well. may be the biggest consolidation on a month to date chart is the dollar yen. compressed. what's compressed mean? less volatility, less volume, hey, seen it in every corner of the market place from equities to foreign exchange, and look at the options markets as well. simon, back to you. >> rick, thank you very much. >>> fresh from the opening bell first on cnbc, joined by rob bundy, ceo of russells index, and this is a big deal for you guys. >> a big day, work all year for the rebalance, a one time of the year, taking all the stocks in the global series and also our u.s. series, and we move the small caps into large caps and back down. we reset the value in growth tilts, do that in a

mr. carney has served in the position for 3 1/2 years and will be replaced by josh earnest. ♪ >> that isome good rock 'n' roll. i got a few things at the top. my last briefing. to celebrate a nation of makers and empower students and entrepreneurs to help invent the future. me has always been a nation of tinkerers and the president believes the rise of the maker movement represents a huge opportunity for the united states. nationwide new tools for democratized production are boosting innovation and pray sureship and manufacturing in the same way that the internet and cloud computing have lowered the barriers to entry for digital start-ups creating the foundation for new products and processes that can help to revitalize american manufacturing. the white house maker fair features innovators of all ages using tools such as 3d printers and design software to bring their ideas to life. some may very well create industries and jobs of the future. as part of this year of action and this week's focus of efforts that will expand opportunity by spurring manufacturing, info have a vegas, the presi

mr. carney supposedly threw the world in a tizzy with the notion that gee, normalizing interest rates isnd the markets seem to be dealing with it okay. is this really going to be a cakewalk? are we forgetting about balance sheets and the fact that most assets have priced off of cheap capital now for close to i ahalf a dozen years? >> right. it's very easy for essential bank to say we're going to normalize things. it sounds nice. when you have asset prices in an economy that's based on abnormal interest rates, that's not an easy transition to make. just look at the two-year gilt yield. anybody long that obviously is not having a good couple of days. i think the market is way too nonsha launchalant with the ban england and also the fed. it's going to be a lot more disruptive and messy than investors think. >> when i look at the spreads between u.s. and boons, i get one picture. but an even more aggressive picture is between boons and gilts. so the uk and europe, your final comment, that's the 17-year, what conclusions can i draw from that? >> right. we know the ecb is on a completely diffe

mr. carney talked about from the bank of england on that talk the night before last is super important for a number of reasons because many look at the world as multispeed. you have the u.s. and the uk moving one way. you have stimulus in china, japan, and europe. i don't necessarily look at it that way. i think all stimulus is fungible, and i think that the relationship i would pay most attention to is how the guilt yields running up to the highest levels in april, 2.75, how it affects the relationship between bunds, 10s, and the u.s. securities. those will keep you out of trouble and the markets that still have discovery of sorts which is the global fixed income markets. only of sorts of course. >> i wonder, kelly, if what john manley's saying is the case and the summer really isn't as relevant as it used to be then what accounts for the fact that volumes have dried up in equities lately? >> well, i think that the global markets, people are putting maybe some money in emerging markets. i think there is some enthusiasm. i think overall the market looks good but i think in the short term w

mr. carney. >> so, joe, where do you want to be, then, to set yourself up for the second half, which we're basically upon? >> yeah, we are basically upon the second half, and i think, you know, everyone's asking, what's that catalyst that's going to help move the markets a little bit higher? i suspect the back half of this year's going to look very similar to what you saw in the first half of this year, meaning i don't think there is going to be that great catalyst that's going to help multiples expand. i think we are looking at a slow, yet bumpier ride ahead. i want to be focused on developed equities, and in particular, i want to be looking at some of the more cyclical areas of the markets, because i think that will unwind itself. >> kim, one last question here, because you absolutely nailed it. the "ft" is out with a headline just in the last couple minutes, saying the federal reserve has discussed imposing exit fees on bond funds to avert a potential run by investors. of course, moving ahead a little bit to think about what happens in a rising rate environment. but does this not speak

. >> that was josh earnest, the guy that replaced jay carney. mr. says the president is going to have to do it on. katy paf litch and an editor. >> katy, they're already saying there was a report saying both parties believe immigration reform is officially dead while president obama is in the white house as a result of several things, not the least of which is eric cantor's big defeat because it backed it and it scared the politicians. but if the president -- i mean is the president actually likely, as josh ernest is suggesting, to do it himself in. >> i think he's likely but the issue is what is left for president obama to do. we've already seen his executive immigration has an a policy of nonenforcement. the danger here is that the crisis that we're seeing on the border that you've reported on your show night after night with thousands of children coming here without their parents is a direct result of president obama's overreach and executive power grab. so president obama wants to two ahead and create another sfaf like the one you're seeing on y

mr. jay carney. jay, good to see you. >> thanks for having me, chris.we know about the extent of the damage and the legitimacy of the health concerns surrounding the sergeant? >> well, sergeant bergdahl, as you know was held by the taliban for five years. and in a situation which obviously was not ideal for him, his health, obviously, was under pressure. and one of the reasons why it was so important to act when the opportunity arose was to ensure that he could be recovered and could begin the process of physical and mental recovery. that will clearly take some time after that much time being held as a prisoner of war. >> now, that you have him, have they been able to diagnose anything that substantiated the concerns? >> i think at this point, chris, we need to allow for sergeant bergdahl to recover privately out of respect for him and his family. we're not going to get into details of that process. we're just thrilled that he is back. and that he'll be returning home to his family. his parents have suffered for a long time because of his absence. and i

mr. chairman, thanks very much for coming in. >> thanks for having me, wolf. >> we heard today from the white house chief of staff, denis mcdonough and jay carney saying that they'veer intelligence committee in the senate, for example, about various negotiations going back years involving the freedom of bowe bergdahl so you shouldn't have been surprised by this weekend's development. is that good enough for you? >> oh, absolutely not. as a matter of fact, that last meeting where he talked about the house and senate where they had all of the national security chairs in the room, there was bipartisan opposition to release prisoners in an exchange and that was back in 2011. by the way, they pitched that at the time of a confidence builder into negotiating a peace agreement. so clearly that doesn't jive with what they've just been saying and to come out that forcefully and we have pretty good records in both the senate and the house, it makes no sense to me whatsoever. i don't know why they want to get into a public match of some sort with the house and the senate intelligence committee whose job and responsibility it is by both statute and constitution is oversee the