mr. dudley: i will take that.e reasons we highlighted the tech sector, in addition to the sectors that have really contributed a lot to growth, it is the fact that wages are high in the sector. read before, we talked about the tech sector, we were noting that fed retail trade, restaurants, things that are geared toward, as well as education and health, those tend to be lower paying jobs. atre has been job growth both the lower and upper end. these techany of industries we are looking at comes close to the average earnings in the securities industry. but keep in mind the securities industry, though it has not contributed in terms of growth, as it usually has, it is still a big and important sector. you have average earnings of hundreds of thousands of dollars. it is not an insignificant sector in new york city. looking forward, which i guess your kind of focusing on, i think there is a lot of potential for growth in the technology center. one of the things that may not have been obvious because we were just looking

mr. dudley did not place a lot of emphasis on equity markets for his change of heart? michael: i don't think they want to reinforce the idea that there is a yellen put, or a greenspan put, and they are responding to markets. i think they are trying to say, there are some worrisome international developments, related to china, and that is causing them to reassess the growth outlook. i don't think they want to convey the idea that this is simply, equities are down 10%, we have to change policy. that is definitely not the message they want to send. at first, it seemed the consensus would move in september, now it seems closer to the end of the year, maybe december. but that is the time of the year when the quiddity usually dries up. is that something that folks are taking into consideration? michael: certainly, there are those concerns about your and liquidity. we have seen the fed do some pretty big actions in september. they began tapering in december, they cut to zero in december. , don't think december, per se -- the calendar configuration will preclude them from hiki

mr. william dudley. but there are just literally thousands and thousands of fundamentals and mr. alking about them. after it was done, all coy think of is many made fun of technical analysis. but modeling human behavior is much more consistent and sometimes as your work shows, much easier to get good signals, let's start with your most recent success signal on the chinese stock market. the shanghai index. what did you see and how did it turn out? >> well, we've had a number of calls in the chinese market since december 4th or 6th of 2012. and fortunately we've had a high success rates identifying the tops and bottoms within one or two days of the top or bottom so we've had a good string and hopefully this is another. we were looking for a top back on june 12th. we were there the day of the high, just like we were there on the nikkei market on june 24th and we projected down side to 3200 on the shanghai composite. and this past monday the low was 3193. and that fulfilled our downside objective. right another we're at a very, very critical point in the market. it's really a two-day

mr. dudley made a point about they have many economists watching emerging markets.ly is an issue. will they delay? let's see what the reaction is over the next 1-2 weeks. thank you so much for your time. , the new york mets on pace for their first winning season in seven years. fans on the verge of striking out again. the teams ticket price hike, next. ♪ mark: welcome back to the bloomberg market day. let's get to a check of the markets. about the red on the screen. that has not changed at all. >> has not changed one bit. afterrkets are down china's second currency devaluation in two days. we've pulled back from session lows and we are now down the least for the day, down by seven -- .7%. s&p anditch over to the i will show you the imap function come a snapshot of how each of the 10 sectors are doing. banks and telecoms are the biggest laggards. on the flipside come energy is one of the two biggest gainers. utilities up by a little bit more. that's look at individual energy stocks, they are enjoying a bit of a bump. earlier,me gains from it had been up by more than

mr. dudley scored many surprises yesterday with his commentary.nt of view we're during and a little bit longer time period before the rate rises kick in. by the same token if that doesn't institutional analysts on both one of them had a true handle on the true target for the s&p. there's still a perception of the high levels to be released. nicole: thank you for your time. >> good to talk to you. it hasn't been awake for the record books on wall street which began with monday's climb to nearly 600 points. one experienced trader telling our own he wouldn't be surprised if the fcc opened the inquiry into the trading that had us another flash crash. >> footprint on monday with all of these small positions going guy. that thousand, 10,000 share thoughts that they are under shares. they absolutely got crashed and they shouldn't have monday morning. to me it was a travesty. nicole: down a thousand points in just five minutes of trading. one investor taken advantage by 100,000 shares of facebook on monday. lauren: we are waiting to jump in at the right m

mr. dudley: from my perspective, the position to begin the normalization process seems less compelling to me than it was a few weeks ago. the normalization could become more compelling by the time of the meeting. looking at 26%, versus 28% before he spoke. mark: orders for capital goods rose in july by the most in more than a year. bookings for nonmilitary equipment other than planes rose, and orders for all durable goods, those expected to last at least three years, exceeded all forecasts with analysts bloomberg surveys. and those are your top stories. militarykosh got a contracts, and investors sent the shares soaring on the news. sincethe steepest drop 1996, and lower interest rates failed to help. what, if anything, can help? and schlumberger has greater one-stop shopping for crude exporters. and more coming up on "the bloomberg market day your quote funds hadange traded bucked theut some trend. mike, why didn't you set it up for us and tell us what the trend is that you see happening with investors? the big thing that caught my eye was the leverage into the those giving you two times

mr. dudley suggested, these ideas are made in america. do you think that this is just the beginning, then, of a longer unwinding of mispriced assets? jim: yes. olivia: at what point is that going to, like during the crisis, is that going to bring down business and consumer sentiment as well? jim: to a degree. i think the context in which we view the events of the past, week, two weeks, month is that something returning to normal rather than something abher yebt. financial monetary policy is abearant. what has been unusual is the ie -- ear restability of markets. -- eerie stability of markets. that's kind of the great snooze. ne must ask why markets are so seemingly happy to stagnate. i think this also gets back to monetary policy. when people expect the fed to be there, when that he expect zero percent rates to exist, stop reading the footnotes, stop reading the documents, security analysis falls into disuse. people tend to go for momentum theories of market action. they watch constantly and federal reserve and listen to what it's saying.

mr. dudley. or whether the fed more broadly see this as a turning point for the world economy.nd just want to hold the ammunition back. caroline: mark is going to be speaking at some point. what do you think he will be viewing from the gdp data? what they want to wait until after the u.s. questio.? >> the domestic economy justifies an immediate or near-term increase. but the world economy is not playing ball. and i think it may be a bit emasculating for the bankers and the u.k. in the u.s. that they are not in charge of their own destiny in terms of monetary policy. there are things going on elsewhere in the world that will dictate that timetable. it will be interesting to see whether mark pays attention, and how he interprets it. it is a first time since he is spoken since china. jamie, how will the data feed into the rate rise? jaime: i think it is true in both the u.k. and the u.s. that whenever the rate increase comes, it will be well signal. that they will generate uncertainty. so we are looking at, like you were looking at the speeches, some indicators of the broader sens

mr. dudley said. that was the one that was keyed in on. the point of what i'm saying, there is an adjustment process between risk and reward because of normalization at the fed. it is going to keep going on. does that mean that we are not going to see any down side in stocks? all i can tell you, the credit markets, the 30-year bond, augered the entire process there was going to be some limit to that down side. they prove to be the correct leader here. everything being reverted. look at the two day of tens. look atten aaugust 3rd of tens. we are getting back to somewhere where we were. look at boon deals. same thing. back into the low to mid-70s. if you look at the difference between bunds and 10s. is it temporary? look at inventory and gdp. it was a big historical positive. it is the demand for the widgets. whether we need to make more. it is going to be important. if we look at 5s and 30s, you can see we are stopped on that. five-year note yields are higher today where you look at the long end. it is very steady. if you do look at the lon

mr. dudley went pragmatic, but what really happened this week was, once again, it showed if you use market orders, you sold cvs, and people who used market orders, over 200 don't use limit orders. why would they ever come back? five brokerage houses broke down that way. these are the kinds of things that people say i can't do cds, maybe i'll do a mutual funds but i'm not going to buy and sell stocks, and i can't blame them. if your brokerage house is down and you sold some stock at the market because you were worried about friday's close so you might have said i don't want to be in, you got, actually, lows that we haven't seen in ages. >> but if you were somebody who was on vacation and really taking a vacation and not looking at your 401 k or your investment portfolio, should you be lucky enough to have one or your i.r.a., it was a fine week, and what do you do now. >> stay the course. i don't want to default to warren buffett. i'm not warren buffett. he's unbelievable. a great piece today about how one of the investors is buying berkshire hathaway. i find that you have to stay the course

mr. dudley and all of his friends. >> allison mayor sis -- >> thank you so much for explaining that. did you see the newborn pandas? one of them died. >> that's too bad. apparently, the mama bear had very little interest in this one little cub -- >> oh, no, they were trying -- i heard the workers there were working round the clock to make sure that she bonded with her two cubs. they were born about five hours apart on saturday. the do keepers were -- zookeepers were concerned about the smaller cub's weight, but they say the remaining cub is strong and nursing regularly, and they're very optimistic about its future. >> meanwhile, if you can't make it down to d.c., go up to the bronx zoo and check out the gorillas. there's a huge story in "the new york times" about the mating rituals up at the bronx zoo. they're doing just find thereupon. >> they are? they're mating? [laughter] >> particularly the head la. all right. jim, looks like you're over a body of water and featuring another boat. where are ya? >> we are over the east river. this boat is coming down the east river just about to

mr. dudley says, they do want to do it. however, i do agree with carol 100%. they missed their window.a bad time to do it now. in other words, to do it just for the sake of doing it, we all know they want to create a little distance between zero and perhaps half a point or one point so they have room for cuts if indeed they have to do that. but because you missed your window doesn't mean you that do it just because you wanted to do it and you missed your opportunity. >> their hands are tied basically at this point. >> it would be taking a victory lap. that's how many have put it. there's much more on cnbc.com. carol, thank you. another day. it started off on a positive note. but unlike yesterday, it actually ended on one and then some. does it mean investor confidence is back? we will preview the day for you next. stay tuned. what if there were only one kind of dog? then it would be easy to know everything about that one breed. but in fact, there are over three hundred breeds of dogs. because no one can be an expert in every one... an app powered by ibm watson will help vets tap specia

i think my question is for president dudley and mr. ore. ering about long island and their economy. long anld keeps thinking -- >> that was bill dudley speaking to reporters, taking candid answers, i would say, providing some answers of why a september rate hike looks, in his words,less compelling, talking about the international developments and the sympttock market sell off impacting. let's go to steve liesman. steve, clues on the fed timing? looks like september is off the table, right? >> reporter: i don't think it's off the table. in fact, i want to play for you some sound that dudley had just before we cut in with cnbc where he did use the word less compelling but held out the possibility that, hey, if the data goes the way they hope it go goes, it could still be on the table. take a listen. >> at this moment, the decision to begin the normalization process seems less compelling to me than it was a few weeks ago but it could become more compelling as we get information on how the u.s. economy is performing. >> reporter: so, sara, i pus

mr. ti sipras to call these elections. dudleywednesday that a september interest rate increase is looking increasingly in doubt. yesterday, bloomberg caught up with me kansas city fed withdent -- caught up ashley george to get her take. >> we should expect volatility from time to time. ee are in a period of som uncertainty, questions about china, questions about global growth. should expect some volatility. what it means for monetary policy i think is not yet clear. it is a complication. it is something we want, but i'm not ready to say it has some particular long-term effect. manus: now we're back with mike amey from pimco. and the bloomberg view columnist mark gilbert. just before the break, we had the u.k. numbers. before the break we were debating the fed and when they would go. we checked. it looks like it is 50-50 for december. dudley looks like september is off the board. pimco. bonds. go. mike: our best shot will be december. but i think the crucial thing is not so much the timing. it is the terminal rate. if you look out

fed resident william dudley saying the devaluation has huge implications for the world economy and the u.s. appears on track to raise rates in the near future. china was also on mrrump's mind. republican presidential candidate waiting in a china's currency gym last night. >> they are doing it because they feel obama is either not watching the ship and competent for whatever reason and people were shocked at the size of it. what it means there's more jobs and more money out of the united states. it's as simple as that. sandra: trump added it's impossible to compete with the currency devaluation in the obama administration is doing nothing about it. we know so many u.s. companies we talked about qualcomm and sky works at apple in so many companies doing business at disadvantage and so overall both parts not happy about what they are singing. sandra: trump has been on not one for a long time. he can claim he didn't just jump on. he's been talking about that for some time. as they look at trading over in asia, markets closing higher after beijing was to devalue the chinese currency for a third straight day. in europe, stocks angry embarrassed while that takings in f