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germain: bon aswe, totout mou [singing g in haititian creole]] woman: aft t the pce c conrts tt we at e un missn in haiti organeded in porau-princ the capal, ames camback to and proposed to work on a workshop to engage youth from vulnerable neighborhoods, young artists, in creating, crafting messages for peace and composing songs for peace. [children singing in haitian creole] man: : ♪ uh, ok,k, yo, yeah... [all singing in haitian creole] boudre:e: so james, emeline, and beethohova are like brothers and sisteters. they've knowown each other for a very long time. they worork together with about 200 yoyouth in 10 different cities n creeating songs and piec t that then ththey perform together, young artists together with their, you know, role models. most of the young people we work with, you know, they were amazed to be sharing the stage with such legends as james, emeline, and beethova, who were their parents' idols as well. [all singing in haitian creole] [cheering andnd applause] [all singing in haitian creole] [all singing in haitian creole]] boudre: we work not t only with peacekee

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the pce number, we were joking, pce is the new payrolls.rolls are slow and steady and there is no wage growth, and real wage growth is still negative. jonathan: i want to wrap up with a look ahead to next week and wrap up the conversation with a rapid fire round. one word answers only. the u.k. election on deck. long jeremy corbyn or long theresa may? gregory: long may. bonnie: may. brian: may. jonathan: have we seen the high for 10 year treasury yields this year? gregory: yes. bonnie: yes. brian: no. jonathan: does opec comply with jonathan: does opec comply with the latest cuts? gregory: no. bonnie: yes. brian: no. jonathan: payrolls, upside or downside? gregory: upside. bonnie: upside. brian: upside. jonathan: that does it for bloomberg "real yield." up next week, same time, same place, 12:00 p.m. new york. 5:00 p.m. london. you have been watching bloomberg "real yield." ♪ david: what propelled you to pick google as the company you wanted to go to? eric: i said, who cares about a eric: i said, who cares about a search engine? i did not p

is this phil or kill in terms of the reflation story on the pce for you?a, ink all of this don't think any data is fill or kill these days. i think they look at the broad spectrum of things they can. economists in general do that nowadays. we get much more data points, we look at the data as well, that the reality is the u.s. economy does seem to be recovering well. we are seeing people more confident and that is going to turn itself into the inflation as we get that shortage of jobs coming through. i think a lot of people need to be watching the average wage and how that is rising and whether that's continuing to rise because we still have the feeling that there are people at the edge of the workforce that haven't come back get that could come back that's going to remain a concern for the fed, as well. >> that comes tech to the discussion of does the full employment number, where is the ever-changing number? one thing that struck me was the lower volatility. the takee bond market, of america merrill lynch index, at a three year low. a political race which

i wanted to point out the difference between cpi and the pce.sed on baskets of goods -- the fed has always like to look at core cpi, what people spend their money on without food and energy. the deflator is what decides the path. if you look at the pce deflator in blue, it didn't get above 2%. it has dipped down to 1.7%. that's what we've seen fed officials become more circumspect about the future. it is still pretty much consensus that we will see to rate hikes this year. -- two rate hikes this year. you can see that chart on the bloomberg. charts -- two charts willingly presented. my regional bias -- joe knows me. -- two charts brilliantly presented. ♪ vonnie: it is noon in new york and midnight in hong kong. i'm vonnie quinn. elcome to "bloomberg markets." here are the top stories on the bloomberg around the world. u.s. stocks paring gains for the month so far. financial energy and materials up -- financials, energy and materials up. the s&p is down. jpmorgan and bank of america dragging financials lower. executives at both banks saying tradi

we've dealtith withru a russ t lasfew days,he have been some members w he id we mht be bettit cerede pce. what's yr ke oth? speaker ryan'mot goi t give crenc to th. i'm not going to comment on at there's not any pointn min a commten that. >> ds e potment o a special cose do u in giveou some brthg om now lst to rk on this agenda? speaker anlike iaid, the potment of thspecial council, tnk helpsssure pele and theusce departnthat they're going t dthr bsndendently d thorghly which ishat we caed forlllo. so ihink it s rfectl appropriate to do that inhe meantime, wreoi t ke dng ourob wee gngo kp r russian veigations gng wh r intelligce committs and look at just described. ergy and -- not comge and -- t ergy and cmerce, but education a wk force commtee, closi the skill ga e me services commite streamlini the w w procure wems -- weaps. let's get workinon tax rorm. let's fix people's obms. l r mmte are still dointh. i kw that people are csud with theewofhe d b w are here wking opeople's oblemsve day and we have all these dferent committees at doifferent jobs. and our job is to make sure that we sl

andhe administration now s a process in pce itheustice department. ripe is that -- rerter: is that part of ersight or intelligce the speaker: i'll leave up to mmtees to determine that. thank you. [ctis copyght national blsatellite corp. 20] [captioning peormed by the naonal captioning institute, which is responsibleor its caption content d accuracy. isit ncicap.org] ms. pelosi: lastight i was at my granddaughter gduion r high school. good day. speaking of ys, theas10 da t arin people

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reporter: obviously you have been very close or the years with vice presidt pce. you talk autontinuing to movehis agenda and hs re often woing on these issues re but considering the thinge dealt th tru a rsiin the pt w ys there are some members who sd we might be better with vice presiden pence. what'soutake on it? speakery: im t ing to give credee that. i am not going to give comment tt. reporter: at wt your members ar sing. speaker ry: ers tve a point ki aomnt on that. rerter: esheppointment of a special cnsel, do you thk, give you some breathing room now atea to wk, go on ts enda? speaker ryan: we, like said, the appoiment of special counsel i think helps sure people andhe justice dertnt that they'roi to go their jobs independently and thorgh ich is what we called for all along, and si think iwas rfectly property to do tt. in the meantime -- perfectly appropriate to do th. inhe meantime, we argog to keep our russian investigatns going with our telligence committ. and okhai dcred, er -- nothenergy and commerce -- the education and work force committ csi the ills

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pce is given where core an headline pce, there has been improvement.ut it is heading in the wrong direction. 4.5%id inflation is about below the path it was on from 1990 to 2012. he is worried about falling short because it will bring down inflation expectations. he notes the fed has been missing its inflation goal since 2012. he does think the key rate is getting close to the appropriate level. he is saying you don't have to raise rates much because you are almost where you need to be. he said in terms of the balance sheet, he wants to see starting in the second half of this year. we are about a month away from the second half. he does not expect to have a big market effect. the fed officials are going into this optimistically saying we can make a slow, steady, keep it on autopilot. it will be more like a technical move. the fed stops buying bonds, that means there are more bonds being thatevery three months investors have to buy. there will be more supply, less demand from the fed. will that push-up bond yields? tot may be the simplest way look at wh

we were joking, pce is the new payrolls.ayrolls are slow and steady and there is no wage growth, and real wage growth is still negative. jonathan: i want to wrap up with a look into next week and wrap up the conversation with a rapid fire around. one word answers only. the u.k. election on deck. or theresa may? gregory: long may. bonnie: may. brian: may. jonathan: have we seen the high for 10 year treasuries? gregory: yes. bonnie: yes. brian: no. jonathan: does opec comply with the latest cuts? gregory: no. bonnie: yes. brian: no. jonathan: payrolls, upside or downside? gregory: upside. bonnie: upside. brian: upside. jonathan: that does it for yield." you have been watching bloomberg "real yield." ♪ so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere

annumber of reon trump may tak atep israeli positioon number ofsss,ut tru has ou le to b thon to negotiate pce israelis d palestiaananthwhole peace.ongs for at if he's leo it, i d't it omhiill tr. st: on this trip,olaed move the embas to jerusalem, what do you thk topics d e poti t adminisation shou take on ose? gut: we, the embay,he site f the embas h bn .rsie the 1950s sdiheart oferusalem t arabia proposal sd shou be isel, soeaze butn mbic ise everyone, but sin agrees at the pti was i israel t in 1967 will alwayse rt that is the ud potion, you wou tnk our embassy was something we sul have done in the 10s and somhing we tay.do he u.s.osition is at is a fil salem issue, iselnnexed erusam thk jerusalems eternal pilf ra i mas sen for the united stes to recni that exactcontoursf rulewhere the city stops suburbs, pticulay ab bus begin isomethg r egotiatingable. hoan line, reblan cooksville, tennesse l, go ahead. ll: good morng instatn,is alha stuff you put out about o go init is a hoax 2018. i n't know wt going to happen- special counsel goes, of the ar --re was nhing there vince fter,le] -- commi

it was the wrong pce and wrong tone. it present trumpave dinn this evening in brussels. if they have done it there. he have made that point publicly. this is not the way to deal with it. it's not the way to be effective and deal with that. speemac years have gone by where people showed let's keep it quiet and not out there in the front pages et cetera. the pussyfooting around is not working. 3.61 percent of our gdp is what we put in but then you look at germany in germany only pays. and then the uk is slightly higher than 2%. but only five out of 28 nations are meeting the goal of pain in 2% of gdp. what has been working there after year is to throw in the can. is it, his, at least to something different. >> it's exactly right on the merits of the issue. since his invasion of crime three years ago 20 of those 29 allies have decreased defense spending. i think present trump should stay with us and do it in an effective way. what present trump to dotson today is that he would reaffirm the u.s. article five commitment. i was president bush's ambassador on that. when we were

andhe administration now s a process in pce itheustice department. ripe is that -- rerter: is that part of ersight or intelligce the speaker: i'll leave up to mmtees to determine that. thank you. [ctis copyght national blsatellite corp. 20] [captioning peormed by the naonal captioning institute, which is responsibleor its caption content d accuracy. isit ncicap.org] ms. pelosi: lastight i was at my granddaughter gduion r high school. good day. speaking of ys, theas10 have rin people witnessed ethhang revelations abt the trageous bevi of president trump. the appointmentf f.b.i. -- foer f.b.i. director mueller as scial prosecutor is a good first sp. the action shohe urgcy o vestigating tru, ssia possible cluti a interring in o ection -- cousion and interferg o election. also recognizes theravity of the president's abuse in power in tryinto shudown t f.b.i.'s invesgaon. rmer directoruellers respected public servant of e hight integrity. everyone respects him. the trump administration must give fmer directorueller's vestigion theesrc and dependence it ne

now, we e ing verbig effo becau o the pce ocs to have a new sategy, caot and stick. stick, by force, we havelrdy eradicated this year oy 15,000 hectares, which is the bhole vome weradicated last ar, and we ar starting edicate , to substitute voluntarily through a progr where the sas,nd we have 80,000 families alrdyn the pgram, thathear going to substitute for legal crops. this is the first time this could be done because of the peace. before, theonict did not lo us to builroads and to gi these pesants an alternativ --easants an altnative. nowe have. so we have to takedvanta of this opporni and continue redung the production of ca. in the meantime, we will continue to work togher, the u.s.nd- withhe u.sand other countri in central america, toight theinks of the chain. we haveestroyed 22,00 laboratories in thcombn jungles, seizing the cocai in transit. we have seized record a o tons, lt ar and ts ar we're doing eve better th last year. soy rkg together, we can be mucore effectivendha is the cmient we just made, or ratified th aeron. presentrump: that was a long and ver

the federal reserve's favourite measure of inflation, the core pce price index, could well move the marketse the prospect of a faster rate hike schedule, something that wall street is keeping a close eye on. economists are currently looking for a 1.5% yearly increase in that index. that is still well below the fed's 2% inflation target. joining us is justin urquhart—stewart, co—founder and director of seven investment management. let's start with the markets. those boards tell you all you need to know. there is some unease about greece again and italy with a potential election there. piling more uncertainty on. we have to put this into perspective. last year, we had the oil price drop, feeding through into the global economy. not just because of trump and things like that. we saw a lot of companies come through with big figures. that has also been reflected in europe, so we has also been reflected in europe, so we have had a good nine months. then we had the trump effect. all his promises in terms of tax, which didn't happen, and in terms of infrastructure, which haven't happened and all th

is noton core pce rising. the fed, which want to normalize policy -- and eight guess it does poorly go for the ecb as well -- how do these essential banks that want to normalize policy do it in a world when core pce is low, you down?employment is how do you deal with that as a central bank? it is the primary mandate. alberto: this is not a normal cycle. in the past, we had normal business cycle lasting around several years. we prolonged a business cycle and tried to smooth it down with central bank puts. whenever there was a problem, we had government and the private sector issuing more debt, and ,his created growth never-ending growth to some extent. it was a longer cycle. now you have people that have learned and done jobs for which there is note demand anymore -- no demand anymore. demographics are not growing anymore and technology is not inflationary. we are not buying two cards each . we are probably sharing the same cars. it is better for the environment, but it is different. it is not inflationary. the

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>> well, i think what they were looking at is evts that may have taken pce after he left dia where, of course, the administration gave him, you know, the clearance to run the defense intelligence agency and when he started his private sector practice and into the transition. there were obviously a number of activities in the range including the conversations can embassador kislyak. trish: gina, how -- how much of this is really substantive, how much of this is really political? your view right now? >> it's political. you look at -- it's like looking at a game, trish, that was lost and saying what should have been don't differently, the trump administration fired flynn and this is over -- comey has even said, comey has even said there's zero evidence of any collusion. they are still chasing that paper tiger, if you will, when what they really should be talking to her about is the leaks that there's ample evidence of why is it that the media and the left in general want to continue to discuss a nonissue that there's zero evidence in lieu of what there's ample evidence of and that is los

the "and,re pce, 2008, the crisis. this is topline pce with the oil distortion. goods are down here, mike. service sector, up here. why do we all feel this, but we do not feel this where chair yellen is, and we don't feel the advantage of inflation down here. michael: at this point, people tend to overstate inflation. it is a psychological target for the fed as well as an actual target. inflation at citations have been going down. tom: very good. what do you have for us? michael: this one really took me by surprise. if i did not put a name on this chart, which they told me i had to do, you would not know the white line is greece. the bottom line is the msci. it is outperforming compared to world stocks. when would you think we would ever see that? the optimism and the markets above the idea of getting a deal. tom: it is the ultimate winner chart to see greece better than good in the equity markets. it is made day and we tried to look back at somebody with anglo-saxon pagan history. dealo, may day is a big worldwide. it started in 1890 with different. expense,, ex

we the a hot jobs market, but inflation numbers are cooling, if you are looking at for cpi, cpi, or pceare the outlier among the fed speakers that we have seen. we hear from john williams and others who echo more of the consensus, 2 more hikes. what do you see that they don't? bullard: i think those inflation numbers have been surprising in 2017. you can see in that chart they are down in a year-over-year basis here to have been arguing we are making progress to the 2% inflation goal, but these have been going in the opposite direction in the early months of 2017. i think in the first quarter, we had a relatively weak gdp report. a little, but up even with that revision the first half of 2017 will be relatively ordinary gdp growth of 2%. the idea that the economy is and it faster than tran will push up inflation, i don't think it is matching up with the numbers we are seeing. furthermore, inflation expectations actually started to ratene after our march increase, an important variable to keep track of in this discussion. m, you talked ji about how inflation has been missing the target f

right have to be on, #3476, feds dualart, the mandate, unemployment at 4.5%, at inflation rate, core pcehe headline at 1.8%, so close to the target. get moreion is if you granular about the data, we saw a deceleration last month in inflation, 1.6% and one point 8% are down and moving away from the 2% target. .et's take a look at a list first quarter gdp was only 0.7 percent, but scene being stronger and the second quarter, maybe 3% or 4% on some current forecast. spending only 0.3 percent, week auto sales, but it is seen as transitory, and in fact again, the pickup in the second quarter. the inflation question may be harder to answer. the fed saying that as transitory as well. market say there is an 11% to in may. of a hike it is the june hike that is 70%. carl weinberg on daybreak asia said labor markets get better all the time, wages are rising, and the fed has to move. listen. acknowledgede fed that this happens and it is driven by data. if prices locum maybe they won't go in june, but right now everybody is ready for it and they don't have to say anything different in order to keep t

market,got a hot jobs but our inflation numbers seem to be cooling, whether you are looking at pce, cpior core cpi. i'm curious why you think -- you know, why is it that you are the outlier among the fed speakers we have seen. we hear from john williams and others, who echo what seems to be more of the consensus, which is two more hikes this year. what are you seeing that they do not? james: yeah, i think that is inflation numbers have been a little bit surprising so far in 2017. you can see that chart, they are all down on a year over year basis. we have been arguing that we are making progress toward our 2% inflation goal, but these have been going in the opposite direction in the early months of 2017. i also think come in the first quarter, we got a relatively weak gdp report. it was revised up a little bit, but even with that revision, i think the first half of 2017 ordinary gdpively growth of around 2%, so the idea that the economy is growing a lot faster, and this will push up inflation, i do not think it is matching up with the numbers we are seeing. furthermore, inflation at fix

looking at humidity pretty low. 43 pce upper 60s to around 70 through thursday and friday. muggy tonight, maybe some ac is needed. i turned on the ac for gibby. he's got the cone on his head. so we turned the a/c on. >>> bus stop temps, 66 to 80. in the 90 or plus thursday and friday. thunderstorms mainly friday afternoon and that will be with the cold front that rolls through friday afternoon and evening. summer heat the rest of the week. 92 tomorrow, 90 friday, 79 saturday, 81 sunday, and 77 monday. even though we cool off, temps are above average. average high is 76. on future cast, 10:00 tonight, a few clouds. a few clouds come in and temperatures 81 downtown at 10:00. walking the dog tonight, deni mainly outside the beltway. by 9:00, everybody is back in the mid to upper 70s, and by 1:00 near 90 again. use a couple thought showers and thunderstorms rolled through. most of these along i-81 attempts by 6:00 in the upper 80s to near 90. we get to the 8:30 hour, thunderstorms developed and they will subside. the temps 83 in cumberland. that's at 8:30 tomorrow night. we do

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i just want to point that out. >> that's true. >> cpi and pce. >> there you go.you very much. >> sure. >> as always, steve and nancy and michael, thank you, everybody. >> thank you. >>> oil prices as we mentioned, crude falling nearly 4% over the past week. up next, look at what's going on there, and if there are any opportunities to cash in on crude right now. later, the ceo of bluecross and blueshield joins us to talk about cost sharing subsidies impacts premium hikes. find out more from him coming up on closing bell, first in business worldwide. think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov the power of a low volatility investing approach. the power of smart beta. power your client's portfolio with powershares. before investing, consider the fund's investment objectives, risks, charges and expenses. call 800-983-0903 for the pro

mention the fed's key inflation rate comes out hours from now. .he core pce it is supposed to go to 1.6%ear. it has been running at 1.8%, targeted at 2%. that is something for the bond market. investors have a lot to digest in the next few hours. yousef: i want to dig deeper into what will be on the agenda. the economist say, we might get clarity on the longer term adjustment process in terms of the balance sheet reduction. what have you heard? kathleen: i think the balance sheet reduction is certainly an interesting and important question. you have to be confident in one more rate hike. productionsst rate -- projections were put into bloomberg around 13%. in junior to get closer to 70%. what is interesting is the bond market outing that there will be anything beyond one more rate hike this year. early on bloomberg television, jonathan from goldman sachs says the markets need to wise up because they are headed towards more hikes, that is plural. .> everybody is skeptical they are skeptical about inflation, the economy, but the fed is not. i think they are going to have to keep pushing an

the core pce down from the last few priors.you point to if you had to look at accelerating growth? >> well, i think, carl, that we've certainly had a slowdown here in the united states. there's no doubt about that coming off fairly strong numbers but what is incouraencouraging maybe a rarity, while the u.s. suffered a slowdown the rest of the world has held pretty firm. most of the economic surprises there are still positive and that's rare for this cycle. we've been the sole engine of growth in the world and every time we would slow the entire world markets would pull back. this time the u.s. experienced a slowdown without a pullback in the markets and i think that's because we're no longer the growth leader in the world. so we may grow, continue to grow 2%, 2.5% but if the rest of the world is also growing with us now in the balance of this recovery, that's a huge difference, it's not so much a faster recovery but a broader recovery, and that could demand higher valuations across the spectrum from here to overseas as well. i

we're likely to see lower core inflation, maybe lowest for the we get the pce.t this raise of prices. >> how does that work from the fed's point of view. oil goes up, the other prices are not coming up. the fed really looking at the that intersection ability of sustain labor growth and inflation. one of the things we keep looking at, it is puzzlingly low now. question is, are these transition mechanisms that we figured rules of law. are they working differently days? is there something new about the economy with labor mobility. the dot-com situation. there's so much pressure on wages. you wonder if anything will flow through to labor. upit doesn't end up showing in labor, eventually, you can look at core versus nominal. actually matter that much. ga thedon't get that broader economy, it will be a problem. downside torginal cpi. on the market reaction suggesting it was something else. weaker.ar is what was the big read from the data. is it trajectory of things over months? few >> there's inflation measures. ofday we got university michigan consumer confidence, wh

and temperatures out there in most pce comfortable. a lot of 50s in suburbs. that's pretty cool. and then later on today look how quickly we warm up. lower 90s for highs today. you couple upper 80s. by the water cooler than that. here's erin aerin with a look at traffic on this wednesday morning. >> 5:07 right now and good news if you travel 95 northbound through dale sit gli. as you can see not only express lanes and main lanes now getting by. earlier tractor-trailer crash after midnight has cleared. police activity blocking left lane, left shoulder however traffic is moving and earlier delays should ease. we'll keep you updated on that one. let's switch to maps. other problems in ellicott city this morning. water main and sinkhole closing main street indefinitely right near roomers avenue. you have to detour around that. crews out there fixing it keeping in touch with howard country police to keep updated on that one. aside from that if you skip the confusion and slow downs yesterday. safe track surge 15 second day impacted no trains between carl ton even stadium armory. if you

look at what's happened to the surprise drop in consumer prices and the pce inflation's not a problem and don't forget, the long bond is the ultimate hedge. against a stock market crash. if there's going to be a bad event internationally, north korea, europe or whatever, everyone runs to the long bond, to insurance policy. it gives it a premium and a premium means a low yield on that instrument. >> you think we're taking the threats of something like that seriously enough? as investors? >> well, as a very good outcome from the first round election. i don't think le pen at all has a chance. in the second round, i'm not fearing a confrontation on north korea. i think it's it's saber rattling. i don't see it, but there are a lot of investors that want to hold long treasuries because if managsomething happens, they wi up if the stock market goes down 500 points. >> it's good to talk to you. thanks so much for coming back on the halftime show today. >> thanks for having me. we have a news alert. phil lebeau just spoke with boeing's ceo. hey, phil. >> hey, scott, you guys were talking about

inflation pce number was lower than anticipated. do you think this is something we should look through and we should not necessarily adjust expectations when looking at the upcoming june fomc meeting? i know this week nothing will happen. but in june the fomc might hike rates. >> in terms of data, we are seeing softness in u.s. data and china data finally. we think the global industrial side is rolling over for the next three months. in terms of the fed, we think they have signaled clearly they will make an announcement around the balance sheet in june meeting. our call is that they may only go in july. i think you can say despite the softness in data, the old story is that central banks are reluctant to become too dovish in this environment, clearly the fed wants to get going with the interest rate or balance sheet tightening. that you will see playing out despite a bit of softness in the data. >> what are you expecting for the all-important jobs report this week or is it not all-important anymore? we saw aberration in the march nu

why do you need one in june if core pce, the preferred measure by the fed to look at inflation is at 1.5%. that's the data from yesterday. at this point in time there's no real justification to hike, is there? >> they will remain data dependent. when the data is sufficient, they will. if there's doubt about whether the data is strong enough, they won't. that's the approach we've seen. hence why the hiking has been gradual. we have two more hikes forecast. one in q3, one in q4. does that give upside to the dollar or is that priced in? the dollar has been a bit of a disappointment to the dollar bulls over the past couple months. >> we think the dollar will continue to weaken. generally once you get into the rate hikes, it's priced for that. it tends to weaken afterwards, particularly when valuation is extreme. the dollar is expensive. other currencies like the euro are cheap. it may be that the ecb is starting to do their taper and that will be the catalyst to unlock the value within the euro, you'll get the flows out of the dollar and into the euro. >> caroline simmons, deputy head of

he also is probably the most realistic of presidents establishing these negotiations, if they take pcelistic grounds. that is the palestinians will have to recognize the major jewish blocks in the west bank. liz: this is very encouraging to hear you say this but we've heard it before. >> yes. liz: i used to count how many times the nightly news, this was in the '80s and '90s, another stumbling block on the road to peace in the middle east. however, i'm hearing from you there is an opportunity here. in february, when the president i believe met with president netanyahu of israel i recall president trump saying one state, two states, i'm okay with either one. it has to be one or the other, right? >> liz, i was thinking about it, whether by design or by default this is the great leverage the president puts on all sides. that is, i'm not going to -- liz: you think that was, that was really calculated versus just looking like he is discombobulated? you think he is "the art of the deal" in living color? >> i believe so. i think holed a lot of sleeves, a lot of cards up his sleeves and i thin

earnings are still high, but core pce is below the fed target.hat that would tell you they look at all the numbers , with the trend is, and i think they were right when they said the risks around inflation is symmetric and you are close enough to that 2% target to keep them on their path. rolled over,de has brent below $50, metals rolling over as well, how do you call that view into the idea that treasury yield should be higher? >> a couple of things, some of the near-term data has been u.s.,, certainly in the and i think you have to respect that is the case. there are some other factors of play as well in terms of oil and particularly productivity in the u.s. and output has been impressive. that has weighed on near-term inventories, but you have to factor in some of the near-term data has softened. you look at, when by the weight european growth is pretty impressive, asian growth is impressive, global growth is still on a good path, chinese growth is still on a good path, but some of the recent high-frequency data is softer. i still don't think

again, we have a hot jobs market but inflation numbers seem to be cooling them a whether you look at pce i'm curious jim, why you think -- why is it that your the outlier here among the fed speakers we have seen? we hear from john williams and others who -- echo what seems to be more of a consensus, which is, tumor hikes this year. what do you see that they don't? is inflation numbers i think have been surprising so far in 2017. you can see those in that chart, they are all down -- year-over-year basis. we have been arguing that we are making progress toward our 2% inflation goal. these have been going in the opposite direction and the only months of 2017. i also think in the first quarter, we got a relatively weak gdp report. it was revised up a little bit. revision, the first half of 2017 will be gdp growth ordinary of around 2%. the idea that the economy is growing faster than trend, and this will push up inflation, i don't is matching up with the numbers we are actually saying. furthermore, inflation expectations actually started to decline after our march rate increase. that is an i

falling lower into 2017, which is amazing considering we are already at 4.7%. , youo a mandate, core pceice the blue line is coming down appropriately. went line not rising as quickly as the fed wants to see. say, it'sh, as you going to be a slow, progressive move in terms of winding down the balance sheet. let's take the ftse off. it's the rest of the european equity markets which are opening. extent,, to a certain was overbooked. european equities are opening, that's the blue line of the paris market, just a little bit thinner in terms of futures. we are seeing paris open down by .8%. we are just seeing it ever so slightly lower. let me extend that out a little more. just a little bit of a dip for paris, frankfurt, swiss market index. matt. matt: all right. i'm taking a look at the imap for the stoxx 600. that is going to be far fewer stocks then the u.k., but you can see that most of the industry groups are down here. the only gainer is energy right now. let me click into the energy sector and see which gainers -- looks like everything in energy is raining, oil and gas, equipment. rig

you can see at the end, the blue line's core pce.lives up pretty closely with this measure with nfib. if more companies are raising prices per the survey, it is a good sign that more official measures of inflation will probably rise upward as well. scarlet: i feel like we have been waiting for a long time. joe: we keep waiting. the beginning of 2016 -- how much hired as any to go to register? scarlet: we are not going higher right now when it comes to equities. we just came off session lows. the s&p 500 earlier touching a record high. it is currently down by about four points. the nasdaq still at a record high, up by 12, 6115 for the nasdaq. from new york, this is bloomberg. ♪ ♪ julia: "what'd you miss?" u.s. stocks in the lower today. the nasdaq closing at another record high. strong boosts from financial and tech shares earlier in the day. scarlet: i'm scarlet fu. joe: i am joe weisenthal. welcome you to our closing bell coverage every weekday. ♪ scarlet: we begin with the market minutes. the nasdaq closing at a record high, gainin

if we passed itould bring about aonstitutionally dubious pce that uld interfere with the important rof law enforcement professionals. part of the reanhi is prblatic legislation is because e process this legislation ollowed, like lot of stuff th we have t vote on, was not transre, was not regular oer. thre wano hearing on this bi. even iwe loo back at last year's verion of the bill, there wanoearing on that one either. thenweook at the le that we're debating no . spear, a rule means, at the processor ameing thil and wh we ve here is a utting down of that ocs, where they didn't provide open rulethey allowed only one amendmenas rt of this bill that hd been offered. there was no opptunityn the floor to what's callean open rule for docts or repuicanso offer good ideas iro ts legislao the six endmen that were btted tt the rules mmittee considered yesterday, fi oth were killed by the rus committee and not even allowed to be bated or voted ony the house of prentives. now, e numbeof times i've had to cometohi floor an aueganst a closed rule, a stctured rule, is exhausting. it's contrary- as con