it is untested territory for the reserve bank.ndicated that i don't think that is around the corner but if they get down to what they consider logical endpoint for traditional interest rate policies, they might have to look at other measures. the form and shape they take is open for debate. but we have the view they will be thinking about that now and potentially working through some small alternative measures that they may take, whatever form that is so if they get to that point where additional stimulus is needed, they could act fairly way. paul: franklin templeton director andrew kenobi, thank you for joining us. we will have more on reserve bank of australia decision with moody's analytic economist katrina alv. the rba holding study today. she joins us on 11:00. shery: that is on daybreak australia but get a check of the markets trading he vstoxx up 4/10 of 1% but we are seeing futures also gaining 3/10 of 1%. the key news this hour has been the u.s. proposing adding more tariffs to $4 billion of eu goods. take a look at what

he would be the executive vp at the federal reserve bank of st. louis. seen the potential, judy shelton, in the past talk about seeing lower rates as fast as possible. dove,s been known to be a making dovish comments in the past and we are now hearing she will be nominated for that position but this all depends on confirmation from congress. we have seen some of the other nominees from president trump for those positions not being able to get confirmed in congress. let's move onto the markets because this will have big repercussions in what direction the fed will take. we are seeing an unusually high amount of companies altering profit forecast right now. is it being underplayed at the moment by some bullish equity investors given they have so much support coming from more dovish central banks? adam: of course, there is a great deal of uncertainty about the fed policy over the next six to 12 months. in its current form and any changes to its warm in the future, whether or not we get real dovish and aggressive movement from the fed will depend on how the

has regulatory and supervisory powers under the reserve bank of india $134.00 and the same is under consideration the shadow banking sector in india has struggled after a series of non-bank lenders defaulted on debt obligation some will watch including the infrastructure leasing and financial services causing government of india to step in and take control. and he could stand so much on air has dropped plans to lease a boeing $737.00 max until safety concerns about the aircraft are resolved and it's back in the air this is just the latest fallout from boeing's ongoing saga involving the $737.00 max in the investigation in the wake of the crash is legal journal contributor with america's lawyer has more molly is this a sign american airline companies abroad are losing confidence in boeing. it certainly seems to be the case daniel certainly for some on air the airline put plans on hold to lease a boeing $737.00 max after their board of directors stopped the order that jet was actually being leased from another vendor that had purchased the airplane so this may have doesn't directly affect boeing's

wednesday, there was this quite important reserve bank in decision taking place.for the indian economy? could itd part, actually be in a funny sort of way bad, because household savings and the incentive may actually lessen. >> that is a tough spot for policymakers. cuts, see aggressive rate ith the businessman and -- may not help much. that will help at the margins and a large part of the banking system is still under. in our view a recap of the banking system is what could really help drive the economy back up. >> monsoon, what about that? that is something that could really derail the economy. it was looking pretty ropey but what is the initial forecast? be fairly important for 15% of the economy or thereabouts. underwhelming, but our view has been and still remains that it is fairly of the direct5% influence. fundamentals, unless we have two or three back to back -- it doesn't really matter for economic fundamentals. >> thank you so much for joining us. ubs securities. watching softbank group, the shares up by about 2% in tokyo trade, and of course we saw the

. >> the reserve bank of australia is going walkabout for its policy decisions.he bank's first meeting in the city for five decades. the rba is expected to announce a second successive rate cut on tuesday for the first time in 2012. the last time the rba met in darwin, it adjust did policy to encourage saving. 51 years later, it aims to persuade australian to spend. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. shery: thank you. the trump administration is wrapping up the pressure on the e.u., proposing to slap tariffs on billions of dollars of additional products. greg sullivan joins us now from d.c. i thought the u.s. has been negotiating an fta with the e.u. what is prompting this latest announcement? greg: the trump administration is ratcheting up pressure on the e.u. over subsidies to their manufacture. the u.s. trade representative's office today released a statement saying they are seeking comments for proposed new tariffs on nearly 4 billion in

monetary policy many of them here in germany would have a preferred to see the chief of our national reserve bank the bundesbank here in germany in the top position of the european central bank or more booze there in frankfurt thank you. and of course we'll have an update on the proceedings in brussels in the news at the top of the hour. united states has threatened to impose tariffs on a further full $1000000000.00 worth of european union goods in a dispute over subsidies the u. and the u.s. accusing each other of using state handouts to give their respective companies a competitive edge promise and cheese all lives pasta and scotch whisky face high import taxes taking the total value of e.u. goods hit with their u.s. tariffs to $25000000000.00 u.s. dollars the u.s. will impose putus tariffs on its own worth 12000000000 of the. us education giant boeing reportedly hired developers at an indian subsidiary to create the software that's thought to have led to 2 deadly crashes of its 737 max jets according to bloomberg some of the programmers were paid as little as $9.00 an hour the plane software w

in south africa reserve bank has cut interest rates from $6.00 and $3.00 quarters to 6 and a half percent it joins a string of central banks across emerging markets that are producing borrowing costs global risks are high and domestic demand in south africa is low indebted consumers are holding back from spending. is an estate agent in johannesburg. he sells apartments to the upwardly mobile in. one of the trendiest suburbs in the inner city currently rent out a property that i used to live in here. i heard that b. and b. is quite good in the area so i thought you know what the this is an opportunity and can give more income from this year so i started doing that then i moved back home . because business is a bit quiet story is common as africa's most developed economy status and economic gains enjoyed since democracy in 1994 and if 3 it. without any inherited generational wealth to fall back on middle class blacks especially run the risk of regressing financially. you've got a black middle class that in the end can not create sufficient wealth to move up the income chain get anything the

>> if you take a step back, we are going to see downgrades from the reserve bank.hat's going to be another growthon, not the first downgrade you seen over the last couple of years, some fairly pudgy downgrades because that does open the door for another rate cut coming through. in this situation, we need retail sales, we need that discretionary sector to really bubble along. that is why -- that is where they will try to target the consumer, get that money going back into the real economy, so i think if you can make people other situation is really we have to focus on housing here in australia. we are just a leverage play on housing. one of the things we have seen is the idea that banks now are cutting variable rates more aggressively. they are trying to stoke the property space on the investment side and that will, i think, have a bigger impact on the real economy. when you are looking at the feedback loop the twin real assets and how people feel, they would be much better off trying to get the real assets, stoking the idea people are feeling better about their dom

the central reserve bank of us trail you has cracked through the 7% barrier -- the central reserve banka. trade balance thursday, largely thanks to surging iron ore prices. this is bloomberg. ♪ we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. >> i am paul allen in sydney. we are under an hour away from market open.n >> i am sophie kamaruddin in hong kong. welcome to "daybreak asia." >> our top stories, asian markets look set to rise after wall street reached new highs. futures pointing to gains. trade remains in the headlines. talks with

. >> coming up, more news on monetary policy with rate positions from sweden and the reserve bank oftralia. we will revisit more of the compelling conversations. peter navarro advises the president on trade. the u.s. and china made plenty of progress. >> we haven't exchange of views goingrong commitment to back to the negotiating table. >> this is bloomberg. >> welcome back to "bloomberg best." anticipation of the u.s.-china trade deal, as well as dovish monetary policy around the world, help to bolster global markets and economies in the first half of 2019. this week, many guests on bloomberg television discussed the factors i could sustain or. advisor of elian's, who spoke with jonathan ferro about u.s. growth and the fed. >> the one thing that economies are going back and trying to figure out is do we have such deep structural changes in the economy that we can run this economy at high growth and low inflation? that is critical for the fed as well. there's a lot of work to be done in terms of understanding the new structure of the economy. >> chairman powell exclusively communicat

you're watching the news that is still to come the federal reserve bank in washington announces the 1st lending rate cut in years what does it mean for the global economy you're watching the news that story coming up next with ben physical and i'll see you again tomorrow same time same place for now thank you for spending this part of your day with me. it's all happening cuts of it. nor link to news from africa and the world. your link to exceptional stories and discussions ok no one will come to you to do such a clean program tonight from funny jimmy from a user of easy town wild web site d deputed comes to much africa join us on facebook at t w africa. central bankers don't do surprises the u.s. fed cuts interest rates by a quarter percent in line with expectations but not exactly what president trump watches. no breakthrough but progress no trade deal the 1st face to face talks since a truce was declared last month between the u.s. and china it fizzles out. and one of the world's biggest contributors to ocean plastic cynical plans to crack down on polluters by imposing fines of. the

you washington every news still to come the federal reserve bank in washington announces the 1st lending rate cut in years what does it mean for the global economy you're watching the news that story coming up next with ben physical and i'll see you again tomorrow same time same place for now thank you for spending this part of your day with me. it's all. happening go to fit. your link to scream africa and the world place your link to exceptional stories and discussions hello and welcome to do such a clean program tonight from for an insanity plea for money as if easy ally would say d w cold snap africa joined us on facebook at g.w. after.

the federal reserve banks are subject to several levels of , and the review reserve bank financial statements are reported by independent accountants and retained by the board of governors. do you believe it is important for the board of governors to know whether the board has been -- it is important -- chair powell: it is important and we demand all relevant information on that question, including any kind of question that has been raised. we get that information before we make a hiring decision. >> thank you for your service. >> senator brown would like to ask another couple questions and then we will be done. >> thank you for your patience. two brief questions and a short statement. during the debate of the passage of s 2155, we heard from the fed that section 21 would not weaken the foreign precepts operating in the u.s., yet the fed released a proposal in april that appeared to do that. what led to that about-face? chair powell: that proposal is a matter of providing national treatment to banks that do business in our country. we try to treat similar banks similarly, whether they are for

jay powell the chairman of the federal reserve all confirmed what the central bank has been hittinhittingt. later this month after two and half years of steady increases. congress mr. powell used usual coded language to signal the change. >> in the june meeting, many of the participants saw the case for a somewhat more accommodative monetary policy stance had tricked them. since then, based on income data and of developments it appears uncertainties around the strength of the global economy continue to wait on the u.s. economic outlook. inflation pressures remain. >> this is an abrupt change in the last six month or so. a year ago the bank told us that rates will keep going up for the foreseeable future. >> with a gradually returning interest rates to a normal level as economy strengthens is the best way the fed can help sustain an environment in which american households and businesses can thrive. gerry: what has changed. some think the fed is responding for criticism of donald trump who is been vocal for some time. they said they should not of raised rates as much as they have. and some

on the back of the reserve bank. to be highly providing any. money. to the community by making. money for a manufacturer or on going. to a remodel are going to money on a why people are always needing more and i haven't. mediately available. that's a contribution to the economy. regulatory system was established banks were regulated the commercial investment banks were separated cut back or risk investment practices that could harm private people. there had been remember no financial crashes during the period of regulation by the 1970 s. that changed. the story getting that huge increase in the flows of speculative capital just astronomically increased and enormous changes in the financial sector from traditional banks to risky investments. complex financial instruments money manipulations and so on increasingly the business of the country isn't production at least not here. the primary business here is business. you can even see it in the choice of directors so the director of a major american corporation back in the fifty's and sixty's was very likely to be an engineer and as

stocks did fall slightly yesterday as investors await that big decision from the federal reserve bank this afternoon. the fed is expected to cut interest rates for the first time since the financial crisis. what it's aiming to do is head off any potential slowdown in the u.s. economy. now an interest rate cut could result in lower borrowing costs for consumers and businesses on all types of loans but might also mean lower rates on your savings accounts as well. >>> shares of apple are higher after the company reported earnings that beat wall street forecasts even as sales of the iphone continue to slow down. in fact, it is the first time since 2013 that the iphone did not account for a majority of apple's overall sales, but the company has offset that weakness with growth in just about everywhere else, growth in ipads, macs and services, which includes, by the way, the app store and apple pay as well. apple also announcing it there launch its new credit card with goldman sachs sometime in august. >>> and comcast has rolled out a new parental control feature to help you manage your kid

and then the reserve bank presidents talk about it. we've been hearing quite a bit about concerns about trade, uncertainty around trade really all through the course of the last year and a half. and those concerns heightened substantially as of the last beige book. nachkt the mention of trade concerns double doubled in the last beige book, the one for this meeting. that's clearly something on people's minds as i mentioned. and you know, the effects are not so much- i would say gnat actual mechanical affects on demand what we have seen so far is meaningful but not large. i think there is derek dsh there is discussion of much greater tariffs. and i think that's where the uncertainty is and that's where the concerns are on the part of business. >> in your opening remarks you mentioned the fed review of monetary policy framework. kind of what is going to be the way of operating going forward that's the question you and your colleagues try to weigh as we speak? i do want to challenge you a little on this. it sounds like you are committed to

join me not to talk about the economy, and what is ahead, the president of the federal reserve bank of. president, it is always a pleasure to see you. thank you for being here.>> thank you, maria. maria: had you characterize things right now? we are seeing pmi 's slowdown that is global not just the us. is that with the real weak spots are? and are you expecting a slowdown? >> yeah, so -- we have been expecting that growth would slow from 2018 until 2019. and we thought that last year and you have heard me, i talked to about it. the reason we thought that is aging populations, slowing workforce growth and waning of the sizable fiscal stimulus. particularly, the spending aspect of the fiscal stimulus was going to wane. if you had been the show april 30, i would've said you know, our forecast would have been 2 1/4 or two and half percent gdp growth for 2019. i might have said that if i was wrong, we might be wrong too low. in other words it might be better than that. then the china talks hit a snag, the threat of tariffs on mexico were very significant for u.s. businesses because so many

paul: the governor of the reserve bank of india says policymakers are seeing signs in the banking sectororing and other shadow banks to prevent contagion. outstanding loans of about $135 billion last year according to the data. doom and gloom for south korean exports. they sell 14% from a year earlier. semi conductor sales plunging. almost 1/5. this comes after figures for june showed falling by the most in three and a half years. collapsedvestment has since president trump came to the white house. falleninvestment has since 2016 to just 5.5 million last year. they have ramped up regulation and a heartening attitude in washington. the governor of the reserve bank of india says that brexit is the main reason he is not ask -- excited. it has become more political in recent years but when it comes to brexit, they have somebody who understands the political situation within that country. global news 24 hours a day, on air and at tictoc on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. i'm paul allen and this is bloomberg. yvonne: thank you. the electi

kaiser report it's like james grant our interest rate observer said about the head of the federal reserve bank their 1st act if he was to take over would be to fire himself they don't need a central bank central bank is an impediment to everything that we cherish in our lives and kaiser report is here to tell everybody about how messed up everything is and if everything was all messed up there would be no need for.

entering directly into discussions so far we have had a series of meetings almost all of the reserve banksand we meet there with the constituencies that we serve and they are very successful. hearing from people, not just economist the people who are not economist and how their lives interact with how the fed works has been great even better than we hoped it would be. we are just now beginning the process to incorporate that feedback and we will be having a series of meetings for giving - - beginning today as we evaluate the questions we are asking. is very early to say where that's going but we are setting the table now and looking at the framework and how it has performed around the world during the global financial crisis i expect we will be at this a while, it has been a good exercise and opened us up to sunlight and prospectus and then ten years after the crisis looking for monetary policy is a good time to ask if there are things he can do to improve the framework. >> high mister chairman. and for maxie o's. do you feel constrained at all for more cuts or more developments in financi

is over 40 times leverage the federal reserve bank came out and said that t.v. failed the fed stress test 3 times in the last 5 years in 2018 i was involved in a money laundering scandal with a bank then in april of 2019 the german police raided d.b. over tax evasion charges mounting up to a 1000000000 euros and then also in the 1st quarter of 2019 d.b.s. hail mary attempt at a private bailout by commerce bank failed as merger talks collapsed now this collapse of deutsche has been predictable so it comes as no surprise to industry players its top shareholder airlines cut exposure from 10 percent and dump shares running for the exit the 7th largest hedge fund in the world and t.v.'s biggest prime brokerage client closed out counterpart exposure and also moved on so what scared them. well it could be massive direct exposure 43 trillion euros of as to may derivatives on the books in 2008 derivatives played a big role in the financial crash in the form of collateralized debt obligations and betting on top of these financial assets people basically made bets on the ma

madness well i think that's an important point you know when the central bank of america the federal reserve bank indicated that they were going to go on to permanent quantitative easing money printing as far as the eye could see without stopping that was the bottom the the the recent bottom and big going around $3300.00 that's when that statement came out then folks started to look around for hard money solutions money system gone awry and of course you can all look at 2 places gold and because what the gold bugs don't seem to appreciate. made hard money fashionable again and that halo effect as spilled over to gold if it weren't for big coin there would be no current rally in gold into gold bugs have no gratitude one.

kaiser report it's like james grant our interest rate observer said about the head of the federal reserve bank their 1st act if he was to take over would be to fire himself they don't need a central bank central bank is an impediment to everything that we cherish in our lives and kaiser report is here to tell everybody about how messed up everything is and if everything was all messed up there would be no need for us and we would be on permanent summer vacation you know we have refill compelled to keep doing the show even though it's completely basically you know on a away that i don't know how to even to finish the sentence i had an idea but i'm retracting that sentence you have no solution for that sentence well well like michael corleone we keep on being dragged into more financial skulls with doggery and i want to. look at this headline about joe biden because i think joe biden is not the solution to what ails the democratic party or america the americans.

closely is going to be watched by the reserve bank, isn't it?vernor of the rba has said he wants to cut rates and see how that plays out the assumption is that we expect 5.2% unemployment numbers and the risk for the rba is that we have a surprise upside that goes up to 5.4. the plans scuff because then the pressure will come and they muni -- may need to cut rates earlier. they are hoping for a small increase in jobs. that would suit the nicely, but if we do get a jump in the unemployment numbers, certainly people would be surprised. the rba meeting the -- may need to consider moving ahead and they may have to bring your ford, so certainly there's a lot on the table. mark cranfield, thanks for joining us. you can follow more on this story and all of today's trading and you can find the on the .loomberg at mliv you can find out what is affecting your investments right now. plenty more to come on daybreak asia. stay with us. this is bloomberg. ♪ >> this is daybreak asia. let's get a quick check of the latest business flash headlines. netflix

madness well i think that's an important point you know when the central bank of america the federal reserve bank indicated that there.

kaiser report it's like james grant our interest rate observer said about the head of the federal reserve bank their 1st act if he was to take over would be to fire himself they don't need a central bank central bank is an impediment to everything that we cherish in our lives and kaiser report is here to tell everybody about how messed up everything is and if everything was all messed up there would be no need for us or what we would be on permanent summer vacation you know we have really feel compelled to keep doing the show even though it's completely basically you know.

tom: the former governor of the reserve bank of india says brexit is the main reason he is not interestedark carney, the bank of england. he said the central banking has become more political in recent years and when it comes to brexit, "it is best the country has someone who understands the political situation within that country." ukraine's comedian turned president. he has dominated the country's latest parliamentary ballot with exit polls showing his party winning a record of 44% of the vote. and aprilnto power despite having no political experience, capitalizing on fixing the economy and end of the conflict with russian backed separatists in the east. global news, 24 hours a day, on air and @tictoc on twitter, powered by more than 2700 journalists and analysts in over 120 countries. i'm tom mackenzie. this is bloomberg. kathleen: thanks so much. shinzo abe has won japan's upper house election as expected. he has fallen short of a super majority that would let him push through revisions to the constitution. our correspondent stephen engle is in tokyo. take it away, what is next, what

be all the reserve banks, and we meet there with the constituencies that we serve. they have been very, very successful. hearing from people, not just economists, but people who are not economists, how their lives interact with the fed's work. it's been great, i got to say. it's been even better than i hoped it would be. we're just now beginning the process of incorporating all of that feedback and we are going to be having a series of meetings beginning today and yesterday as we evaluate the questions that we're asking about our framework. it's very early to say where that's going but we're setting the table now and looking at what our framework is and looking at how it's performed, looking at how all the fra frameworks performed around the world during the global financial crisis. i expect we'll be at it awhile. i think it's been a good exercise. i think it's opened us up to sunlight and perspectives that we might not have gotten otherwise and i think it's a good time. you have ten years after the crisis, you are really living in a new normal for the economy and m

banks, ande reserve the board together convened all the stakeholders around the table to talk about how we can move forward. consumer groups, technology companies, banks, card companies, and pretty much all of the groups that would be interested and worked on a project for several years and one of the things that came out of that was a recommendation that the fed should build a 24/7 settlementtime system to solve that problem. we put out a proposal in october of last year of should we do this, and we got quite a lot of comments that were overwhelmingly favorable. i would point out that in our payment system in many places, the fed operates alongside private-sector operators in wholesale payments. it would not be unusual of what we have done in the past. we have not made a decision on this but something that we are looking at carefully and something that we will make a decision on soon. >> greg from bloomberg. i am trying to parse what you are saying. on the one hand, you say the policy till in the statement is ease financial conditions and that is helping the economy. that tilt, market