neel kashkari wants to see clear evidence that inflation will rebound before deciding where to go. he has been the lone dissenter against the two interest rate hikes this year. >>> still ahead, are under the radar stocks your best bet for the long-term? we have a list of names. >>> anthem will put out of virginia's individual obamacare market. citing uncertainty from the federal government including the president's indecision on whether to continue paying the sub sidies which make premiums afforde consumers. anthem already announced it would exit marketplaces in wisconsin, indiana and ohio. they have until the end of september to decide whether it will leave more exchanges. appears on edge because of the situation with north korea, one group is getting a lift. defense company shares. morgan brennan shines a spotlight on the sector. >> it was a week shaped by a war of words between north korea and the u.s. >> they will be met with fire and fury like the world has never seen. >> and while the broader market sold off amid the riser risk, defense stocks hit new highs. the sector has be

neel kashkari echoed what jim bullard said. concerned that the fed is not near its target.es now when you are so far from target he things would set the wrong -- send the wrong signal. that.d: thank you for speaking to a gold and nickel miner, that and more on the way. ♪ rishaad: you are back with "bloomberg markets: asia." i'm rishaad salamat in hong kong. haidi: i'm haidi live sydney. a quick check of the latest business flash headlines. hna group singapore partner in an overseas property trust is exploring ways to scale back ties to the chinese conglomerate. the management is said to be waiting reducing involvement. wants to be back by the $734 million worth properties from the two partners. rishaad: first quarter profits jumping, driven by rising prices and production as it sold off unprofitable british operations. income, up just about $29 million from a year ago. tata is helped by a from chinese steel industry. haidi: bitcoin extended gains to a record, despite last week's split in the underlying technology, jumping by as much as 21%. whileupport a solution, backing a

rob kaplan and minneapolis fed president neel kashkari speaking out this afternoon alibaba and walmarteporting results before the opening bell. after the close applied materials and gap. alibaba has been on a tear some of these chinese internet stocks like alibaba outperforming f.a.n.g. in terms of the technology boost. they don't get as much attention but they have been chbts don >> don't get as much attention and they had an extraordinary rise two, three years ago. we want exposure to the tencents of the world, those webos, then a stagnant two or three-year period, as the f.a.n.g.s took off, now rotation again back into those names >> back into alibaba >> walmart will be interesting they have been sort of steadily improving traffic and positive sales, ramping up the e-commerce efforts. the question is with the stock move which has risen to reward the company, can they continue to outperform? >> stocks to watch shales of l brands slipping. the owner of victoria's secret reporting a bigger drop in same-store sales >>> netapp beating the street. product revenues grew 10% on the year it'

neel kashkari said the credibility of the central bank is on the line. >> inflation has been coming up short, a little low relative to our 2% target. that actually matters. you think 1.5% is not a big deal, but it matters that investors believe the fed can achieve its goals. francine: meanwhile, james bullard says the time has arrived for a reduction of the balance sheet and he was confident it could be done without too much destruction in the market. will be able to let going on this process. i think it will be slow, but i think it is the right thing to do and i would support getting going on this process. francine: meanwhile, justin done dunlack is getting worried about the markets. he said this is not the time period where you can purchase anything and not worry about the risk. the time to do that was about 18 months ago. let's bring in luis costa and richard jeffrey, thank you both. richard, when you look at the fed, there seems to be a message saying disruption will not happen in the market, but they are still struggling to raise inflation. so, why continue normalizing, or start n

and then we hear from robert kaplan and neel kashkari.eak," 10 years ago this week, bnp paribas told investors they would not be able to hold their investment funds. ensued, but issuit the world a safer place? this is bloomberg. ♪ manus: it is 8:19 in berlin. what a beautiful shot of brandenburg gate. angela merkel took a three-week holiday, setting herself up for a 50 then you tour, as he gets to count down to election 2017 germany. we are counting down as well. every monday we have a program focusing on the german election. futures are lower. ahn has your business flash. snap has fallen short of estimates, feeding fears that aggressive competition from facebook is blunting the social media company's potential just months after the initial public offering. the parent company says daily active users reached 173 million in the second quarter. revenue disappointed and the shares tumbled in late trading. google u.k. has won approval to build a campus alongside the company's existing offices in cakings cross. the building will be the european

federal reserve president james oler neel kashkari have reiterated that inflation is a problem.hey said the fed should press on the shrinking its balance sheet. here are the comments from two of the more dovish policy makers in separate statements yesterday. >> the plan is to allow it to roll off gradually over the course of several years. we don't think it will be disruptive to the markets. the markets expect it and it will be very orderly and should be a low-cost way of shrinking the balance sheet between more normal size. to behink we are going elegant going on this process, it is going to be very slow. there won't be a lot of impact on markets, but it will be the right thing to do and i would support getting going on this process. matt: let's bring in mark cudmore, mliv strategist. are they right that the unwind won't disrupt markets or does that have something to do with that kind of talk with why it is hard for them to hit their target? mark: there was a large part of the market that does believe that this has been telegraphed for so far in advance, we have enabled to for

neel kashkari came out last week and said, we have been looking at this at the minneapolis fed and wethe linear. he calls it a ghost story. he was speaking against this. interesting. models, theyed's are specific with demand. they are looking at demand fluctuations. they are not good with respect to aggregate supply, the question of what is driving technology, what should we expect in the next two years from technology, how will those shocks affect inflation. so if you look at the demand side and think there is more investment, but they are really not that equipped to look at the supply side. joe: before we go, besides inflation another concern for the fed and really global central bankers is asset prices and what is going on around the world. we have a chart here going back 2002, comparing the s&p versus real consumer spending change and the situation between the two. what is the zynga because of significance? of this? matt: the blue line shows the consumer spending change. you can see in previous cycles it was pretty strong. in this cycle, it has not been as strong. it is not clear

andident james a learned neel kashkari say yes to inflation and the u.s. is a problem.he two officials comments lineup with investors expectations that it will be kept on hold when officials meet in september. here are his comments from yesterday. >> inflation has been coming up short, a little low relative to our 2% target. that actually matters -- you think 1.5 is not a big deal but it matters that investors believe the fed can achieve its goals. >> despite this low inflation both fed presidents are keen to shrink balance sheets, playing down the possibility of market disruption. >> i think we are able to get going on this process -- it will be very slow and i don't think we will have a lot of impact on markets but i think it is the right thing to do. >> those are the voices. let's bring in the global market strategist at j.p. morgan. good to see you. the soft peddling has really picked up in earnings. balance sheet reduction will not have any material impact. but they are worried about rolling over in inflation. what you want is it necessarily what you get and they a

dallas fed president rob kaplan and minneapolis fed president neel kashkari.ey report less than 30 minutes from now. we'll be having a look at the retail sector a little later in the hour, but before this, jcpenney down by 17 cents because of the low price of that stock. >>> a companywide town hall meeting was consequenceled after one of google's employees was fired. the employee was let go after writing a controversial memo on women in technology and diversity issues at google some employees were worried they might be outed in the media for asking questions he said some of the presubmitted questions were leaked along with the snams of tnames of the emplo submitted them >> the dow dropping 200 points yesterday. the worst day since may. let's talk more about the markets and your money gabriela santos, jpmorgan funds, and river front investment group. gabriela we know that north korea is a scary situation, a serious situation, and a risky situation. but how do we quantify the risk of north korea into our stock market how do you figure that out >> well, it's toug

when it comes to the yen, we had two very dovish sets of commentary from james bullard and neel kashkari to hear from build that the later this week. do you think a less hawkish fed and this debt situation in the u.s. is going to create a lot of tailwind for the yen? >> yeah, i expect the yen depreciates significantly maybe in september, but to us, the end of this year, i expect the yen may hit 100 against the u.s. dollar. betty: do you think we could get there even sooner if we see a market depreciation in the u.s. dollar? >> yes, though of course in september, the u.s. [indiscernible] monetary policy, and also that the debt ceiling may be the concern in the market. dovish may stand to hold and also the debt ceiling [indiscernible] trigger for athe further decline in the u.s. dollar. the japanese yen at the moment is maybe undervalued among the major currencies so there may be a boom for the yen to appreciate. betty: you have the same policy divergence between the boj and what the fed is perceived to be doing. we getght come apart if the fed moving at a slower pace if inflation and wage

we heard from two fed president's yesterday, james bullard in -- and neel kashkari in minneapolis.> we were telling a story and inflation was going to gradually return to target and especially in this measure, you can he be gradual return to target. it seemed to be going according to plan until we got to this year and this year, this number has fallen way off. at least on the scale you've got here. >> inflation has been coming up short, a little low relative to our 2% target. that matters. you think 1.5 is not a big deal but it actually matters that investors believe the fed can achieve its goals. david: still with us is julian emanuel of ubs. we are hearing from fed presidents, these two dubs, that we don't have the inflation data. go back to before the break. you were saying what could turn things around is that the fed moves too quickly. does that mean week inflation is encouraging to you? julian emanuel: i wouldn't put it that way. seeink what you want to is over the next month, how this course develops. you put out the doves yesterday and we probably want the jacks in the whol