as well as the reserve bank in russia will likely decide on higher interest rates when all cyrus the governors of the reserve bank there will get together and you know talk about what how to deal with the high inflation and what to do after the huge slump of the peso all this is on investors' minds and it causes them to rather discuss those topics and discuss the risk that comes out of those countries and economies instead of you know investing and making right real investment decisions what we day for both financial markets and if we don't we think you can read. except for the british pound that is it surged today after the e.u. stock breaks that it goes indicated a divorce still could be breached within a matter of weeks shabani made the comments that form taking place in slovenia is what he had to say about being realistic. i see that really stick we are able to reach an agreement. on the first stage of this because you should which is the brics it three g. . six or eight weeks the treaty is clear we have two years to reach an agreement before they leave two years after in mar

as well as the reserve bank in russia will likely decide on higher interest rates when osiris the governors of the reserve bank there will get together and you know talk about how to deal with the high inflation and what to do after the huge slump of the peso all this is on investors' minds and it causes them to rather discuss those topics and discuss the risk that comes out of those countries and economies instead of you know investing and making right real investment decisions what we day for both financial markets and if we don't we think you can read. american trade officials say they're hoping to breach an agreement to lift some trade barriers. with the european union by november the comments come after a meeting between e.u. trade commission as the silly amounts for him and the u.s. counterpart robert litan is it ties between the two come under strain with the us threatening to impose import tariffs on the e.u. cause of the latest health talks suggest the two sides could be ready to remove tariffs on some industrial products mobs from said last week that profound disagreemen

of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve bank chairmen and people involved in that helped rescue the system back then they said although we in other financial regulators did not foresee the crisis the kaiser port foresaw the crisis i might add we moved aggressively to stop acting in its traditional role as lender of last resort the federal reserve provided massive quantities of short term loans to financial institutions facing runs while cutting interest rates nearly to zero the treasury department stopped iran on money market funds by providing a backstop for investors the treasury also managed to take over the mortgage giants fannie mae and freddie mac. and worked with the fed to try to prevent the collapse of large systemically important financial firms the federal depos

banking reimagined. what's in your wallet? maria: welcome back. the federal reservet to hold its i 2/day meeting in -- its two day meeting in two weeks time. with unemployment numbers at historic lows and the gdp gaining strength the odds of a september rate hike weigh in at over 95%. joining me right now to talk about the backdrop on the economy right now is the federal reserve bank of dallas president and ceo robert kaplan. we should note that the dallas fed is not a voting member this year and robert kaplan it is good to see you this weekend. thank you very much for joining us. >> good to see you, maria. maria: when you look at where we stand right now, we just saw two straight quarters of 4% plus economic growth. we also had data just this past week, retail sales was weaker than expected. inflation was basically it looked like a nonevent. what's your take in terms of what the fed should be doing with regard to interest rate increases? have things changed in any way for you? >> they haven't changed. i still think we'll grow at 3% in 2008 -- 2018. gdp will grow at

plus, later on in the program, the president and ceo of the federal reserve bank of dallas, robert kaplan, my special guest. joining us coming up. but first we have the big headlines impacting everything from wall street to main street. geri? >> thanks, maria. hurricane florence has arrived and wreaking havoc in the mid-atlantic. the storm made landfall friday morning, pounding the carolinas with heavy rains, rising floodwaters, and gusting winds. hundreds of thousands are currently without power and that number expected to rise. more than a million people were ordered to evacuate the virginia and carolina coast. the storms could affect about 10 million people before it's done. trillion dollars giant apple unveiled its latest products this week. the tech giant rolled out three new versions of the iphone, iphone 10 r, 10 s, and 10 s max which has 6 1/2 inch cinematic video to display. the potential game changer could be the apple watch serious 4 -- series 4. it can measure your heart rate and detect heart attack and also call 911 if it takes a hard fall. the watches range from 400 to 800 d

of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve bank chairmen and people involved in that helped rescue the system back then they said although we and other financial regulators did not foresee the crisis because report foresaw the crisis i might add we moved aggressively to stop acting in its traditional role as lender of last resort the federal reserve provided massive quantities of short term loans to financial institutions facing runs while cutting interest rates nearly to zero the treasury department stopped iran on money market funds by providing a backstop for investors the treasury also managed to take over the mortgage giants fannie mae and freddie mac. and worked with the fed to try to prevent the collapse of large systemically important financial firms the federal depos

plus, later on in the program, the president and ceo of the federal reserve bank of dallas, robert kaplan, my special guest. joining us coming up. but first we have the big headlines impacting everything from wall street to main street. geri? >> thanks, maria. hurricane florence has arrived and wreaking havoc in the mid-atlantic. the storm made landfall friday morning, pounding the carolinas with heavy rains, rising floodwaters, and gusting winds. hundreds of thousands are currently without power and that number expected to rise. more than a million people were ordered to evacuate the virginia and carolina coast. the storms could affect about 10 million people before it's done. trillion dollars giant apple unveiled its latest products this week. the tech giant rolled out three new versions of the iphone, iphone 10 r, 10 s, and 10 s max which has 6 1/2 inch cinematic video to display. the potential game changer could be the apple watch serious 4 -- series 4. it can measure your heart rate and detect heart attack and also call 911 if it takes a hard fall. the watches range from 400 to 800 d

of america ben bernanke he was the head of the federal reserve bank and hank paulson was the treasury secretary and they let lehman collapse and then came to the rescue of all their friends well they wrote an op ed about basically concern trolling that there could be another financial crisis and first pointing out how much they as you know federal reserve.

very hard to say the reserve bank interest rates raising for the next couple years. this is not the u.s. our cycle is fundamentally different than the u.s. and we saw yesterday house prices continuing to decline down 10 months in a row now. very, very hard to see the reserve rising interest rates against that backdrop. haidi: you get the dollar right and everything else is sorted out. what is your outlook? >> the green back still has more upwards pressure i think as long as trade remains an issue. you've got an emerging market and trade will continue bubbling along. there will be moments of happiness like last week in relation to mexico. hopefully maybe canada and then of course back again when we focus on the u.s.-china relationship. plus you have the fed thfment ongoing -- the fed meets every three months. i don't see it speeding up any time soon but i think that will continue and that puts upward pressure on the u.s. dollar. not in a straight line. probably do a bit of a correction. but i think the broad trend in the u.s. dollar will be up and for our countries li

decisions fromey the south african reserve bank. pointing fingers, leaders warn the brexit clock is running out with no sign of a deadlock being broken. era, hending the abe set to be the longest serving near. bring you the latest, live from tokyo. ♪ nejra: good morning, everyone, and welcome to "bloomberg daybreak: europe." it's 6:00 a.m. in london. here is what is happening in the asian session, a mixed picture across the regional benchmarks in asia. .25%.ia-pacific up about i put the 10-year gilts in the risk radar and we are staying above 3% five times this year we have gone above the 3% level and pull that but for now we are staying there. a four month high on the ten-year treasury yield is not that far off the peak we saw in may. not only have i been talking about the 10 year yield but also the front end because that is worth noting. we've seen some curve steepening , up from a 20 basis point handle earlier in the week. so it's worth talking about the entire curve but the 10-year gilts very much in focus. crude oil above $71 a

federal reserve bank is raising interest rates it's interesting that you mention the u.s. federal reserve there as contributing to some of this crisis and so it's not actually this time trade policy trumps trade policy that is causing this turmoil. trumps trade policy contributes a little bit here and there but it is not one of the major causes of this particular turmoil for instance drums tweets against turkey do play you wrote in the extent of the devaluation of the turkish lira but they are really not the reason for that and how real is the risk of contagion to other markets there is some risk of contagion however contagion to be confined to those emerging markets that are fairly vulnerable again the vulnerable ones are those with significant dollar debt and with significant current account deficits which means they are to some extent living beyond their means other countries such as those which have little dollar debt and which are exporting more than they import those other countries should be mostly safe i think we do have to ask the question as well you know we're n

you will see the reserve bank start to be more positive. haidi: is the u.s.oing to stay despite the divergence of the u.s. and the rest of the world even if we see another step in the trade war? raymond: i think so. if it becomes more serious, i would prefer other sit haven currencies like the yen. and with interest rates, it makes it -- put into developed markets to get that higher return with relatively low volatility compared to other jurisdictions. haidi: the trade war is a sweetener for the dollar. appreciate your term. that's your time, setting up the start of the trading week. bloomberg users can interact with charts we just brought up. gtv . you can feature them on bloomberg tv, catch up with key analysand annotate -- an analysis and annotate. this is bloomberg. ♪ s is bloomberg. ♪ shery: welcome back. let's get a quick check of the business flash headlines. singapore airlines has the world's longest flight. it will operate a nonstop service to new york, 16,000 kilometers, 19 hours. seven are on order. the inaugural flight will be october 11. they

deadline to exchange bills which in theory would become worthless for new currency but now the reserve bank of india says that after the demo ninety nine percent of those cancelled large bills ultimately went back into financial circulation mr modi's opponents quickly proclaimed the demo a frustrating failure however the indian central bank also found that in the make of the demo indians opened millions of new bank accounts the number of indian tax returns filed also increased by roughly twenty five percent and dancing another stated policy goal and for more on the north american free trade agreement and the particular impact related to canada i spoke a short time ago to scott de barge an expert analyst at i.h.s. market who joined us from london. scott welcome thank you for joining us from london we sure appreciate it i mean there's been a lot of political discussion between the folks in u.s. canada and mexico and some of that i don't think gets down to the real benefits or maybe the lack thereof but what has been the real reward for canada as part of nafta. well certainly canada's experien

ramaphosa: i have noted what the reserve bank has said. we have now made an intervention through the stimulus recovery package, and we want to see the impacts of the initiatives we have taken before i take another view. francine: so that would be in the coming months? will you have to lower it? pres. ramaphosa: it will be possibly the next four months or so. we want to see the impact of what we are doing in terms of where the economy will go. francine: how quickly do think that impact could be felt? pres. ramaphosa: i would say maybe six months. six months would be an opportunity to be able to gauge the impact that it is having because we still have to go through the minister of financ'' s budget policy statement in october and it takes us another few months before we go to the next budget. francine: thank you for joining us on bloomberg. that was the president of south africa. guy: thank you very much. fascinating interview, really intrigued to hear what the president has to say. he has changed a number of things recently. i think he is t

so we've been hearing a quite loot about that, and reserve bank presidents talk about it in the meeting goes into the minutes, we're transparent about hearing about all of that. if you look at aggregate performance of the u.s. economy and people at a national level, it is hard to see much happening at this point. you can look at it the other way. you can ask if all of the tariffs that have been announced are applied, what would be the effect at the aggregate level. they're still relatively small. we worry about a couple of things. one is loss of business confidence which could reduce investment. again we don't really see effects that we can measure yet. also possibility of a financial market reaction over time to unexpected trade developments. more than anything though, i would worry in the longer run where this is going. if the end place we get to is lower tariffs that would be good. trade generally supports productivity, supports higher incomes and you know, fair trade under internationally accepted rules could be a good thing. if this perhaps inadvertently we have widespread tariffs

the reserve bank presidents talk about it in the meetings and it goes in the minutes. we're very transparent about hearing all that. i think if you look at the aggregate -- the performance of the u.s. economy at an aggregate and national level, it's hard to see much happening at this point. you can look at it the other way. you can ask if all of the tariffs that have been announced are applied, what would be the effect at the aggregate level. they're still relatively small. we worry of a couple of things, one is loss of business confidence. we don't see effects we can measure yet, also the possibility of a financial market reaction over time to unexpected trade developments. more than anything, though, i would worry in the longer run where this is going. if the end place we get to is lower tariffs, that would be good. trade generally supports productivity, supports higher incomes, and fair trade -- fair trade under internationally accepted rules can be a good thing. i think if this perhaps inadvertently goes to a place where we have widespread tariffs that remain in pl

paul volcker era the federal reserve bank starting with alan greenspan recessions have been outlawed the central banks have printed all the money they need to keep banks afloat even though it destroys the economy destroy social cohesion they think will see quantitative easing for a q.b. for if the bond market sells off a little bit more if the stock market sells off even two or three percent while the fed just step in and start printing money as they have now for twenty five years i do think you'll see a q e four but not at those premiers that you outline a think you'll see a q e four when you have let's say a ten or maybe even twenty percent correction in the stock market and perhaps a very big inverted yield curve and that's both plus those i don't think they'll step in. you know two percent or three percent correction in the stock market although they could i doubt that's where they would make that move i think they would wait until things get there usually actually follow what's happening in the marketplace they really don't lead although they give the atmosphere of the projection

first pointing out how much they as you know federal reserve bank chairman and people involved in that helped rescue the system back then they said although we and other financial regulators did not foresee the crisis the kaiser port foresaw the crisis i might add we moved aggressively to stop acting in its traditional role as lender of last resort the federal reserve provided massive quantities of short term loans to financial institutions facing runs while cutting interest rates nearly to zero the treasury department stopped iran on money market funds by providing a backstop for investors the treasury also managed to take over the mortgage giants fannie mae and freddie mac. and worked with the fed to try to prevent the collapse of large systemically important financial firms the federal deposit insurance corporation guaranteed bank debt protected depositors by the way the title this up is called what we need to fight the next financial crisis for a while the key phrase there is they run on money market so in a functioning economy there is no such thing as a run on a money market you

and before we go we check in with crypto says india's central bank the reserve bank of india has told the supreme court that not only will they prohibit the use of crypto currencies but that their ruling should not be challenged by businesses we'll keep an eye on that which is pretty interesting for the fastest growing economy in the world. and in a tell you news today i fand token cryptocurrency will be offered by the juve's ball club that's the football or soccer team that both star player christan e o. or naldo rather the team has one of the largest fan bases of any team in the world and a massive social presence the tokens will be tradeable and will be offered on the socio us platform that's a crowd management block chain text lab platform which is seeking to monetize the sport it remains unclear if the token will go through a traditional ishall point offering and i.c.a.o. to raise funds but the concept of sports block chain encrypt those is not only interesting but could be a great goal for all of sports and that's it for this time thanks for watching you can catch boom bust on d

appreciate your insights and daniel is with neuberger berman., meantihe president of the federal reserve bankst. louis is making the case for no more interest rate sincreases. ja saided financial markets may be signaling that monetary policy iwi g too tight, citing inflationec exptations that are still below the fed's target level.ec most e the fed to hike two more times this year and as many two more times next. >> it the strong domestic economy pushed imports to a record while slowing global growth softened u.s. exports. it widened 9.5% from june to july, bringing the deficit to its largest in a decade. >>> president trump today said trade talks with canada are coming along. discussions between the two cotries resumed today after ending last friday with no agreement. this afternoon, canada's foreign minister echoedhe president's ntiments. >> the goal for canada from the outset is to get a good deal for canada. that's the objective that we are focused we really believe that aeal thatorks for canada and works for the u.s. and works for mexico is possible and that has been our conviction from

repeats so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. amik plan is india going to be forced to follow suit. well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that its response to what is a much more significant. currency crisis facing turkey as has has been a adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that is arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out its tuckey's policy response india's not quite in the same situation as turkey turkey has a much larger current account deficit inflation is much higher in turkey that there are greater concerns about the stability and sustainability of growth in turkey and while the india

the rupee so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. my plan is india going to be forced to follow suit . well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that its response to what is a much more significant. currency crisis facing turkey is has been a nice adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that has arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out it's tuckey's policy response in india is not quite in the same situation as turkey turkey has a much larger current account deficit inflation is much higher in turkey that there are greater concerns about the stability and sustainability of growth in turkey and while the

federal reserve bank is raising interest rates it's interesting that you mention the u.s. federal reserve there as contributing to some of this crisis and so it's not actually this time trade policy trumps trade policy that is causing this turmoil. he contributes a little bit here and there but it is not one of the major causes of this particular turmoil for instance drums tweets against turkey do play you wrote in the extent of the devaluation of the turkish lira but they're really not the reason for that and how real is the risk of contagion to other markets there is some risk of contagion however contagion to be confined to those emerging markets that are fairly vulnerable again the vulnerable ones are those with significant dollar debt and with significant current account deficits which means they are to some extent living beyond their means other countries such as those which have little dollar debt and which are exporting more than they import those other countries should be mostly safe i think we do have to ask the question as well you know we're not just talking ab

we have been saying for many years you can't taper a ponzi and of course united states federal reserve bank is trying to taper the ponzi by unwinding quantitative easing and raising interest rates and we have seen the unwinding in emerging market currencies and another thing we've always said is that while inflation is a monetary event that hyperinflation is a political thing is when people lose confidence in the political powers that be and you see that in venezuela but you're also starting to see that in argentina where you're having almost hyper inflationary like sort of movements in their currency so i'm going to look at something else that we haven't right about and that is fracking and this is also part of that whole federal reserve zero percent interest rate thing but the next financial crisis lurks underground its name fracking fueled by debt and years of easy credit america's energy boom is on shaky footing this is a headline actually from the new york times bethany mclean the one who outed enron a warrant before they collapse but this chart is quite interesting because here is whe

repeats so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. robert plant is india going to be forced to follow suit. well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that it's response to what is a much more significant. currency crisis facing turkey as has has been a adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that has arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out its tuckey's policy response india's not quite in the same situation as turkey turkey has a much larger current account deficit inflation is much higher in turkey that there are greater concerns about the stability and sustainability of growth in turkey and while the

repeats so factors such as raising interest rates that's a move in the right direction by the reserve bank you mentioned turkey on thursday turkey announced a new economic plan which is well it's failed to impress really it cut its growth forecast in that he can. that plan is india going to be forced to follow suit. well i mean turkey actually today he is trying to deal with. concerns that it that its economic plan has been to the that its response to what is a much more significant. currency crisis facing turkey as has has been a adequate turkish leaders fall in something like forty percent over the course of this year the country is a new finance minister it turns out it's the president's son in law that has arguably damaged credibility of economic policy making insert and the new finance minister is trying to flesh out its tuckey's probably see response as india's not quite in the same situation as turkey turkey has a much larger current account deficit inflation is much higher in turkey that there are greater concerns about the stability and sustainability of growth in turkey and while

the big of japan on tuesday, the central bank of brazil on wednesday, and then the south african reserve bank and a swiss national bank. on thursday, the u.s. existing home sales expected to extend their form of trend, are they expected to extend the declines? i think this is speaking of a turnaround. alix: and i want to point out breaking news. coke coming out and saying that they may be, this is according to bloomberg television, may be in talks with a canadian marijuana producer to develop drinks. that would mean marijuana infused drinks. david: i had only heard about these maybe two or three weeks ago. alix: i did not know they existed. david: they will start them in the fall, ivanka rona will be the first out. so i think the idea of coke with marijuana, i interviewed the ceo and i know that they want to buy other manufacturers of soda, but i guess this is a form of soda? it, but alsotion coors, there are others in talks about this, but as i mentioned, the largest shareholder of coke, i have nothing to base this on. i cannot imagine -- would be into this. david: it will be a great shareho