dallasrg scopg spoke to president robert kaplan, whether it is working for japan. negative rates might buy them time, that they might on margin help ease what they are doing. they are not a substitute for structural reforms, anti-japanese officials are painfully aware though structural reforms are not easy. how to increase the workforce, you know, user increase fertility or increase immigration, these are all very difficult things to do, and they lack the structural reasons, they try to get more women into the workforce. but i don't think monetary policy is going to address the key issues they face. they are going to have to ultimately come to grips with other policies to address these issues. anna: simon french of pamnure gordon is the with us. i don't know if governor kuroda arrived by helicopter, but the pictures would have been up impressive. we have a chart that underlines that inflation challenge, japanese cpi, excluding fresh food, we saw that spike that was only. because of the sales tax simon: nowhere near that 2% target. and we have the headline data, pric

mark: robert kaplan of to bloomberg about the prospect of a rate hike this year.e says september is still on will bee, but the 2017 watching a key report. uber is selling itself to chinese competitor didi. about 30 minutes into the trading day in the u.s. we start with economic data. julie: manufacturing get expanded july, but it was at a slower pace. this is an institute of supply management. 52.6.coming in at we should mention, the median forecast was 53. coming in a little below at had what had been estimated. employment contracted for the seventh month as part of this report. we get the overall jobs report friday. the major averages remain mixed in the wake of this report. snp pulling back slightly. nasdaq is trading higher. goldman sachs cut stock to an under weighted tactical trade, but nonetheless, adding to bearish sentiment this morning. if you look at the groups on the move within the s&p 500, energy shares of the worst performers, down 1.9%. we do have health care holding up well. those of the opposing poles at the morning -- poles at the moment. energy

robert kaplan, and janice lockhart joining us from jackson hole today. a big show as we can you down to yellen's speech. calm in the markets. jonathan: very much so. markets go nowhere. that is the story for the last couple of weeks. futures are dead flat. is unchanged. a little bit of price action on the dax in frankfurt. the price action is subdued. conviction is low. it is a directionless market. it is looking for some direction from the fed chair. crude.e to have that in a week of losses potentially after three weeks of gains. you want to see a range bound market look no further than treasury. the tightest month since 2006 on the 10 year. we open this week on a 1.57%. curve, itend of the should be trading at around 78 basis points. we have been range bound for a number of weeks. will be tackling the big question over the next three hours. we go around the world from london, tokyo, four team coverage for stop no matter where you are right now all eyes are on jackson hole, wyoming, where janet yellen is set to speak at the economic symposium. the marke

robert kaplan: we all have to improve our communication.e to understand when you give a speech or an interview, a snippet of what you say may be taken. it may make it look like there is more debate on certain issues than there is. i think it's an important challenge for the fed. we have to improve our communication. that falls to all of us. it is something we need to do. if you actually have the time to read all the fed's speeches and read the minutes, you get a much for picture -- fuller picture. often when you watch television you get snippets. it can create more confusion. i think we need to be cognizant of that and adjuster can medication. -- our communication. michael: when you look at what's going on, do you think there are distortions in the markets these days for monetary policy? robert kaplan: there's a cost to having rates this low for so long. there are reasons to have rates this low. the cost is it hurts savers. if you have any money in savings, you can't turn on it. second, he causes people to take more risks. people who have o

robert kaplan says the push for a rises strengthening. at follow me at twitter @rishaadtv.here is keenly awaited speech from janet yellen. we have singapore starting off. >> the story today looking across the asia-pacific is not surprising considering the mild pullback we saw this week. about. to really panic the 10th of 1%. it has also been a drying up of volume. you are really seeing a lot of outflow. a moderate about of our clothing pulled out of asian markets. we only have these two markets that have not seen this, that is taiwan and thailand. japan is just now to touching its sessional low. mostly at a push up, when you're talking about fixed income. a lot of these stocks have been caught in tight trading rings. australia has been stuck between points.6 japan's talk about 3-4 basis points. when you're talking about china, i think this might be a little more -- the reason i bring this up is basically on, they been -- this is being seen more clearly as it trying to get the leverage out. they want to reduce the amount of short-term debt that is being taken out of the mark

robert kaplan, brian moynihan, and bill gross all shared their insights on bloomberg television thisit those conversations and dig deeper into the bond market. this is bloomberg. ♪ >> this is a movement. this is a movement. there's never been anything like this. >> the trump campaign out with its latest financing numbers , the group saying it raised $80 million in july. tom: does this candidate need to connect with wall street or can he go it alone? >> it's funny, people talk about wall street and i would say wall street doesn't exist. what exists now are financial services firms. most of the traditional firms are all now banks. banks and other financial institutions. there's a lot of people in the private equity world that are supporting donald trump. a lot of finance people understand his view of the economy. it was a huge month come up from 50 million last month to 80 million this month. 64 million of the 80 million was in small dollar contributions. this just goes to show what we've been saying all along. there's a lot of ground support out there. >> from money in politics to mon

kansas city president said it is time to move, while dallas president robert kaplan said the case forate rise is strengthening. >> we said rates should be raised, patiently and gradually and cautiously. part of what i am thinking is the impact on the dollar, potentially destabilizing the rest of the world. it does not mean we should not raise rates when the time comes, but it should be patient and gradual. ratings haslobal advised its outlook for hong kong conglomerate. real estate trading and aviation has been cut to a negative with first half earnings falling below expectations. japan trustee services bank is suing. somebody says it will book the case, though the amount is still undecided. it has promised a prompt disclosure of any impact on the forecast. global news 24 hours a day, powered by 2600 journalists in more than 120 countries around the world. this is bloomberg. let's get a check on how the market has been trading in the asian pacific today. happy friday, david inglis. david: many traders already think it is a long week. you have the course, the fed chairman's speech late

introduce my guest here, dallas fed president robert kaplan.. >> thanks, steve. >> let me begin with our fed survey, which shows that 60% of our respondents say i mean, basically the fed is making it up. they don't think there's a framework, 47 to 37, they say, the fed is going from the latest economic data. not going on the medium term forecast. is that the right way to think about it? >> are you making it up? >> of course not. part of the challenge fed is adjusting to that and what's happening is, is a lot as many have said, the neutral rate which sounds a little wonky but the natural rate of interest has been declining and a period of transition where the fed is adjusting to that and i think our job is to communicate much better than we do. how we're thinking about the economy and why we do what we do? >> that all may be true and it is. however, what i hear is reports economists have a ton of reports that say, if the fed -- if there's a strong jobs report in september the fed may hike in september which essentially says that the next hike is

tom mackenzie is in beijing on the latest with robert kaplan. in hong kong, nicholas comfort in london for the latest on the european bank stress tests. tom, you're and interview with dallas fed president robert kaplan, what was your number one takeaway? tom: he said it is too early to tell. he can make a call of september ending is needs to look at more data, particularly any revisions. he said don't take center off the table. take a listen. -- september off the table. robert kaplan: september is on the table. we have to see how invents unfold. -- events unfold. it's too soon to jump to conclusions. i think i have learned is a central banker, you have to be patient. we have time to make a judgment between now and the september meeting. i want to take advantage of that time. now andreports between then, i want to get the benefit of that information before commenting. the president also said that the dallas fed forecast for 2016, growth would likely remain just below 2%. he also said the brexit effect on the u.s. economic growth picture was just

steve leaseman asked dallas fed president robert kaplan when the fed is gathering consensus for rate hike. >> this is a cost to fed fund rates at this level. it can create potentially a desire to take more risk. it can distort markets and hurts savers. to that extent, it's an element of what paul singer may be talking about. the prodominant driver is what's going on globally in the search for yield. labor slack is coming out of the labor market. maker accident frustrating slow progress, but some progress on inflation. and i think that gdp growth in the second half of the year will be strong. even the second quarter gdp number that was did pointing was an inventory adjustment. the case is not going to specu which meeting. >> the kansas president offered a more hawkish tone. >> you've seen in terms of how i've expressed my views on the committee. i do think it is time to move that rate. that doesn't mean i favor high rates. it doesn't mean i think they needs to happen rapidly. i agree that a gradual move in these rates, but under conditions where we're seeing employment move in the dir

robert kaplan has spoken.he central bank is staying away from policy divergence. >> to be a central banker in the u.s. today you have to think globally. it is not optional. what happens today for example in china which is why i am here visiting, can it transmit through the underlying economy is also very quickly through the financial markets as we saw in january and february when turmoil here transmitted to global tightening conditions. we have to be aware of policy divergence and also what is going on around the world. in a more global world, it can moret the united states quickly. that has to be a key part of our job even though our primary responsibility is to be central-bank are to the u.s. -- central banker to the u.s. we are minutes away from the start of your trading day. we are looking at the potential for corporate movers. heineken, we will have their numbers. the banks will be in focus. euro stoxx 50 up over 1%. frankfurt is indicated up over 1%. stocks to watch -- all eyes on heineken. 7:47 a.m. in

you mentioned robert kaplan. he sat down for an interview in china. basically that september is a live meeting. i think september is very much on the table. we will have to see how events unfold. it is too soon to jump to conclusions on that. one of the things i have learned, as the central banker, you have to be patient. we have time to make a judgment between now and the september meeting. i want to take advantage of that. two jobs report between now and then. perhaps more important, the president of the new york itd speaking in bali saying t is too soon to jump to conclusions. the outlook is pretty positive. you can see, it is premature to rule out further policy tightening this year. the most important thing to know is that, by tradition, the new york president never defense. if you know where he is, you know pretty well where janet yellen is. tom: some of the data is pretty good. what is holding them up? given what appears to be pretty good economic data. michael: that is the question. you get some good reports and then something like the gdp rep

call fromthat is the robert kaplan, the dallas fed president. speaking to our china correspondent in beijing, he said u.s. gdp could be revised and there are two more jobs report for the next fed meeting. he also reckons brexit will have a negative affect on u.s. growth. the september meeting will still very much be live. >> we will have to see how events unfold. it is too soon to jump to conclusions on that and i have banker, you central have got to be patient and we have time to make a judgment between now and the september meeting. to job reports between now -- two job reports between now and then. the billionaires campaign for hong kong's biggest ever privatization deal is getting a mention. -- the not from the influential shareholder comes days after rival also endorsed the deal. in may, the cinema line said it would buy legendary entertainment. on monday, they said market conditions had changed and the deal would not be in the best interest of minority shareholders. the chinese firm says it is going private in a deal worth more than a bill

then it is lockhart and robert kaplan.be on the show talking about the feature of monetary policy. the question is, will we hear from the professor yellen at 10:00? this is great. i think i will leave radio to listen to "bloomberg " this morning. right now, let's go to jackson hole. michael, i have to begin by congratulating you on as their george's interview. she is a d center. will there be dissent -- disstenter. will there be dissent? a bigl: there is question, what do you doing a monetary policy isn't working? wall street has one interest, that is the short-term. the fed is thinking about the medium and long-term when you're trying to boost inflation by keeping rates low. tom: my most important interview of the day said you of let the debate. that includes today the regime paper came out. does anyone know how to spell regime in jackson hole? be fronthis ideas will and center. you can't make forecasts anymore because the models aren't working. other -- anymore because the models aren't working. there are others who

don't miss some of the biggest voices tomorrow including james bullard, robert kaplan, and dennis lockhart. coming up, brazil's political landscape is on the verge of massive change as the impeachment trial of dillman set gets underway, and the conclusion to this process. short seller carson block is taking aim at st. jude saying pacemakers and different litters are easily compromised. the company is vigorously defending itself this afternoon, saying the allegations are absolutely untrue. this is bloomberg. ♪ david: this is "bloomberg markets." i'm david gura. vonnie: i'm vonnie quinn. it is time for the latest bloomberg business flash. concorde holdings is seeking to acquire assets from a renewable energy giant sun edison. groupinese clean energy is planning to bid for sun edison's controlling stake in terraform power, which owns operating power plants. david: vivendi coated second quarter honors that missed estimates. they now continue to lose money and subscribers in france. vivendi plans to reduce costs by $350 million. the cuts will help the company reach its target of breakeven in 20

. >> thank you ♪ ♪ tomorrow "q and a," robert kaplan, atlantic magazine on his book, in europe's shadowp.m. eastern here. here's some featured programs this week. >> saturday night at 10 eastern, afterwards, new american foundations, rosa brooks, the changes, in the military is approached to fight more, in her book how everything became war and the military became everything. >> miss brooks is interviewed by hicks, former deputy for policy and director of the international security program. >> congress is not going to wake up and say let's triple the budget. but if that's not going to happen if the military, is going to continue to be asked to take on this very wide range then let's make sure they are good at it. >> in-depth is live, with author and radio host, dennis, he's the author of the nine questions, asked about judaism. >> why the jews. still the best hope the 10 commandments. >> at 8 p.m. indicate anderson profiles the ten first ladies since 1960. first women the grace and power, she speaks here in washington, dc. on monday, marry roche on the science used to improve the u.s. m

don't miss one of the biggest voices friday, including james bullard, robert kaplan and dennis lockhart. new home sales dropped. discusses homebuilder what this week's data is about the industry recovery. an exclusive interview coming up next. this is bloomberg. ♪ david: this is bloomberg some of the look at biggest business stories in the news right now. drivers for amber's food foodery service -- uber's delivery service in london are vowing to strike this week. the strike is scheduled to begin friday. buying 9.9% of the empire state real of tea trust. wealth acquisition translates to a $622 million invested it. the sales of previously owned homes in the u.s. fell from a nine-year high. they fell to an annual rate of 5.4 million homes. the first time they are declined in five months. the national association of realtors said inventory is told tight and would take less than five months to sell out the current supply. businessour bloomberg flash update. a homebuilder join mark orton and myself to speak with us exclusively. we asked him if the housing market can withstand a higher rate. >

robert kaplan said the may -- the time may be right now to raise rates. >> we said rates should be raisedly and gradually and cautiously. part of what i'm thinking is the impact on the dollar potentially destabilizing effects on the rest of the world. it does not tell me we should not raise rates but it should be pastry -- patient and gradual. britain, consumer confidence is bouncing back after the initial vote to leave the european union. consumer sentiment rose the most in three years. not clear how this may turn into economic activity. the bank of england cut interest rates to new records. anheuser-busch inbev planning to cut 55,000 jobs after the takeover by sab miller is complete. the cuts will be made over three years. $3y can save four point billion a year after the takeover. in france, second-quarter earnings that missed analyst estimates as its pay television continues to lose money. net income fell 1.3%. vivendi say they also plan to cut costs. vonnie: time now for our bloomberg quick take where we provide context and background on the issues of interest. now we talk about unive

robert kaplan airs his views on the economy's progress.is bloomberg. ♪ scarlet: this is bloomberg markets. i'm scarlet fu. it is time for a look at the biggest business stories in the news now. it lost half its right after the federal judge tossed the patent victory against apple. the judge found the tech giant did not receive a fair trial because juries heard arguments from two separate trials. this will be the third trial. airlines arethwest calling for dirt kelly to be replaced. they say his focus on cost control has kept southwest from investing in critical technology that has led to stranded passengers. last month, southwest struggled to recover after its computer system crashed. recommended aysts target price of $14 a share. the e-commerce company has developed a strong brand for quirky products. sc has struggled to compete with amazon and will report earnings after market on tuesday. founder out for personal bankruptcy protection. halt theis bid to verdict in the invasion of privacy lawsuit. that is your business flash update. david

member of the group is speaking, and we will also hear from san francisco's john williams and robert kaplan. a lot to watch that could reset expectations for what happens the rest of the summer. francine: thank you very much. this is a picture for a lot of these markets overall. european shares are advancing ,ains, including volkswagen where the index turned positive for the first time this year. this is a picture for russia, we saw a lot of news on the last 10 minutes or so. picture, and then crude oil is below $45 but still quite because we aret seeing a lot of impact from the price of oil filtering into the equity markets. bloomberg because tom keene will join me from new york. we will have a conversation with larry hathaway about bond yields, markets, loads of things going on out there. overall, i would suggest that with the biggest thing you need to know is what happens with the bank of japan. we're seeing around 101 -- what does that mean? it means that there is concern that the prime minister has come to the end of when he can do with abenomics. brought a lot of the japanese paper to

don't miss some of the biggest voices tomorrow including james bullard, robert kaplan, and dennis lockhart: uber makes a u-turn on profitability. we will tell you how big the loss was, next. this is bloomberg. ♪ is making an about-face on its profitability in the u.s. after touting earlier in the year that it ain't money. the company has not posted a huge loss in the first six months. as much as $1.2 billion. here to explain is max chafkin. you can understand the company making a loss, but why would they would be profitable and then, with such a massive loss? weit is important to know are reporting a loss of 1.2 billion for the first half of the year, but most of that money was lost overseas. has seeminglyess deteriorated, lost more money, but the vast majority of that is coming especially in china, where uber has been in a crazy price were with its biggest competitor, and just exited the market. we are expecting them to improve things for the second half of the year, but we are in uncharted territory. vonnie: we have to stop there because we have breaking news. muddy waters posting a repo

robert kaplan making the rounds in china this week. he does believe that september is on the table.tember?ed move in elizabeth: with a that is a possibility. with the that's underpriced by the market at the moment. it's going to be driven by fundamental data and we are getting slowly mixed fixtures. if anything, interest rates are too low for where the inflation outlook is for the united states. we've seen good recovery and jobs, so let's see, but we think is a possibility. corley, thankh you. is 4:23 in london, seven minutes away from the european equity close to this is bloomberg. ♪ mark: this is the european close on "bloomberg markets." 10 minutes -- under 10 minutes to the end of the session, five minutes to be precise. i am mark barton. vonnie: i'm vonnie quinn. i want to take a quick look at european stocks before we get to the close, we did another intraday high for the s&p 500, up four points. the dow jones industrial average is up 29 points. percent,q up 7/10 of a continuing to climb. i amiguring out --mark: how below the record high, 17% below the record set last april. -

yellen's at 10:00 a.m., we will bring you interviews from the fed president james bullard and robert kaplan as dennis lockard. this is bloomberg. ♪ emily: a story that is trending. president obama has gone were no u.s. president has gone before, into virtual reality. he's narrating a 360 representation of yosemite park. they are producing a free video. the out today to mark centennial anniversary of the park service. a pie in the sky idea literally. domino's pizza has tested drone delivery in auckland, new zealand, and is on track to be airborne later this year. why new zealand? the country approved commercial drone activity last year but the skies are not going to be filled with flying pizzas. domino's was employed drones that only one location and local regulations require that drones to remain inside a pilot at all times. pizzat defense -- robot guy will come with the human chaperone. that does it for this edition of "bloomberg west." from san francisco, this is bloomberg. ♪ >> from our studios in new york city, this is "charlie rose." charlie: terry macdonald's ear. his career spans mor

. >>> dallas fed president, robert kaplan, says the central bank has limited room here to maneuver on interest rates. why, he's suggesting the neutral rate of interest is somewhat lower than people think. makering th making this a challenging time. the neutral rate is the level of borrowing cost associated with stable inflammation and full employment. so clearly a lot of debate on the fed right now as to when and why this period is different than other recoveries. >> when we offset some of the more slightly hawkish comments. ultimately we sit in the same position we have been for the last month, september small chance, september, bigger chance. >> that's why the jackson hole speech by janet yellen is going to be so important. >> absolutely right. >>> new data on where investors are putting money to work. $307 million in the latest week. this is the first time we've seen net inflows to stock flows. taxable took in $4 billion on week. >> those record highs attracted new money. now to today's jnd on wall street. we have a few earnings reports to wrap up the week. watch out for deer, es t

yellen's speech at 10:00 a.m., we will bring you interviews from the fed presidents james bullard and robert kaplandennis lockhart. this is bloomberg. ♪ emily: a story that is trending president obama has , gone where no u.s. president has gone before, into virtual reality. he's narrating a 360 degree representation of yosemite park. national geographic joined facebook's oculus studios. they produced a free video. it's out today to mark the centennial anniversary of the u.s. national park service. and a pie in the sky idea literally. domino's pizza says it has tested drone delivery in auckland, new zealand, and is on track to be airborne later this year. why new zealand? the country approved commercial drone deliveries last year, but skies of new zealand are not going to be filled with flying pizza's anytime soon. domino's has employed drones in only one location and local regulations still require that drones remain in sight of a pilot at all times. meaning your robot pizza guy will still come with a human chaperone. that does it for this edition of "bloomberg west." that is all for now. from san

today at 10:00 we have robert kaplan, the dallas fed president.re going to talk to him about energy. i met an awful lot of energy folks down here out west where i've been for a couple weeks now. guys who were in the energy industry and seem to have migrated to other jobs in the service and the tourism industry. that seems to be something going on here. so we'll talk to robert kaplan. and we've got a couple of fed guys for you tomorrow. and women, by the way. >> all right. steve-o. >> and joe, sorry. no tetons. haven't seen them yet. they're not here. they may be gone. >> but you are like a study in active outer wear. yesterday you had the other one on. today you got that. that is rugged. >> he puts on the suit for the official interviews. >> he does. >> do you guys like this? >> hey, did mary set you up with that? you didn't do that yourself? >> mary duffy called yesterday screaming about my fleece. she didn't like my fleece. >> you know what? >> you look good, steve. >> you look the part. >> that looks like mary right there, man. and that looks -

robert kaplan, president of the dallas federal reserve, will be speaking. september is still on the table. this is bloomberg. ♪ >> is 1:00 p.m. in new york. welcome to bloomberg market. ♪ >> from bloomberg world headquarters in new york, good afternoon. scarlet: good afternoon. here is what we are watching. u.s. stocks heading to record highs despite energy shares getting slammed. fresh concerns the fed will not hit. >> we will hear directly from -- he says it could still be on the table if data supports it. more highlights coming up. scarlet: we are watching china. economy watchers scratching their head after many entering in july. we're looking at the tale of tea does emi's. halfway into the trading day, the markets desk where julie hyman has the latest on crude oil and wti falling on crude oil. >> even crossing below threshold briefly. declinesee the decelerating as the day has gone on. the moment. it definitely test below briefly earlier in the session. last week as well as the rate count from last week. what does that mean for stocks. 500.oks at the s&

we have james bullard, robert kaplan, and kenneth lockhart.is bloomberg. ♪ david: you are watching bloomberg. mark: this is your global business report. david: glencore widens its plan after its worst first-half profit in five years. will it be enough to whether the commodity storm? declines are sending tourists to europe -- tourists to written on a spending spree. david: airlines are turning to twin-engine planes, like boeings dreamliner, for long routes. of the runway for the famous 747. it has been a rough seven months for glencore. half profit fell by 66%. glencore was heard by lower prices for metal dan cole. if plans to sharpen its debt cutting plan. is scrapping its dividends, cutting costs and spending $2.5 billion in stock >> copper, their biggest commodity, still hasn't bounced all that much. it is below what we think is is normal, natural price. we think at this price, especially given how glencore has transformed itself from a balance sheet perspective, valuere offers excellent today, despite the fact that it is up well over 100% s

and do not miss some of the biggest voices on bloomberg tomorrow including james bullard, robert kaplan lockhart, and fed governor jerome powell. is said to be posting a huge loss in the first half of the year. we will tell you how big. this is bloomberg. ♪ scarlet: this is "bloomberg markets." i'm scarlet fu. matt: i'm matt miller. scarlet: it is time for the bloomberg business flash. the vendee posted second-quarter earnings that missed analyst estimates. the company's pay-tv unit continues to lose money and subscribers in france. plans to reduce kospi $350 million. this will help the company reach breakeven for the channels in france. --t: apple is securing issuing a security update. the spyware takes advantage of three previously undisclosed weaknesses in apple's mobile operating system, including being able to take complete control of handsets. apple says it fix the vulnerabilities immediately after learning about them. scarlet: maryland congressman elijah cummings is calling for a hearing in september over mylan's drug prices. the company has been under fire for the sharp increase

you get robert kaplan speaking at a moderated q&a in dallas.doveish fed and became a hawkish fed. we have the minutes there from the end of july where they are little bit dated. david: i wonder whether they are reacting to the reaction? everybody is relating to everybody constantly. alix: the idea is dudley is the forward-looking voice versus the backward looking voice. if you have the ,udley-fisher-yellen trifecta you just admit that you are wrong and come forward. alix: we take a step backwards and we will talk to janet yellen next week and see what she has to say. the fascinating debate is getting a little confusing for a lot of people but it continues. we'll bring you the headlines right here on bloomberg. thank you very much. , 26 minutes into the session. equities marginally lower with the dow down by 1/10 of 1%. after four days of losses, european equities could snap back today. it has been a weaker dollar in the last 24 hours. erasing some of that weakness as we look forward to another speech by another federal reserve president. bloomb

reserve is an focuses week and we will hear from several speakers including john williams and robert kaplanay. the minutes released from the july meeting all ahead of janet yellen's speech next week. u.s. economists are still with us. we continue to get overall data that is surprising to the upside of the fed continues to seem more dovish. can you reconcile that for me? [laughter] no. clearre is a very economic buyer. the one negative ways more than a two stronger ones. there is data-dependency, but is not completely symmetric. jon: how do get from a to b? , that iss probably where some of the data surprises and volatility and lack of inflation have the biggest impact on the longer-term outlook. the fed says we are seeing the improvement, the low unemployment rate, but inflation is not picking up as much as we would like it to. what is going on? first of all, they think it neutral unemployment rate is lower. and because gdp is not as strong as they would like it to see, they conclude that monetary -- room to the fed some keep rates lower for longer. jon: the productivity debate, how does th

tomorrow, for coverage of the jackson hole beginning at 8:00 eastern followed by interviews with robert kaplanss it. that is tomorrow. jonathan: don't miss that tomorrow. coming up next, much more on a story that broke a couple minutes ago. after theia gets set next federal reserve meeting. we will go to dubai. that is coming up next. this is bloomberg. ♪ jonathan: let's get to that breaking news we had a few minutes ago. saudi arabia is set to target its first dollar on offering after a september meeting. joining us now is matthew martin, bloombergs middle east reporter from dubai. bloomberg getting hold of this story. tell us what we have learned. matthew: what we are hearing from sources close to the saudi bond issue is that the government will not be coming out until after the fed meeting on september 21. move to likely to see a the end of september, and in the beginning of october, we will see them try to finalize the terms of the pricing within the coupl first couple weeks of october. $10 million or north of that depending on investor appetite. you raise a good point. still seeing that k

we'll be talking to esther george and robert kaplan among others, that will happen friday when janet chair, give her keynote speech and that will be much watched by markets. michelle. >> thanks very much, steve. suzy, go ahead. >> steve, this is just such a surprising result given what's gone on in the past. i guess my question is do you think that the thing that's going on is the same sort of silicon valley effect that people can't bring themselves to say that they support donald trump and his policies and when you put this kind of survey to them they just can't admit that his policies would be the ones that would be good for the economy? do you think that plays into it at all? >> i don't, actually. i don't know. it's hard to get into people's heads, but look, this concept of either never trump or a donald trump presidency almost any case would be bad for the country or the economy. i think that's the idea that's filtering into wall street. you have to remember this group is highly and has been highly republican. when we asked this question in 2012, they preferred mitt romney 5 to 2

. >> dallas president robert kaplan says the central bank has limited room to maneuver. suggests the rate of interest is lower than people think. making it a challenging time. the neutral rate is level of borrowing cost. >> you remember this move started higher after we had the crappy job's report. somehow the notion they weren't going to raise was still good fuel for the move higher. and i think we still have this hope that some day when rates go up, it will be because of a stronger economy and the baton will be passed to the stronger economy. every time we think that's going to happen, the economy drops the baton. every time it looks like they're going to hike for a good reason, they take the baton away. the market has been weak the last three or four sessions because they might. >> when the minutes came out, the heaeeadline was you should e one on the table then 200 reasons why we won't. >> issues they don't give as much credit as they are considering internally. >> but the markets finished -- these guys are never. >> all i can think about is the olympics and the rela

. -- robert he will not kaplan says a hike to come is soon as september. >> and think september is veryuch on the table. i think we'll have to see how events unfold. it is too soon to jump to conclusions on that. i have learned as a central to makewe've that time a judgment between now and the september meeting. i wanted to take advantage of it time. to job reports between now and then, want to get the benefit of that information before commenting. francine: investors put the chances of a rate hike and roughly one in three and the odds of an increase by the end of next year are only slightly better. for more on the fed's next move, let's bring in ashok shah. thank you for joining us. we need to start with the fed because the fed is the biggest unknown or the one that is likely to move in the markets in one go. are they dovish echo on a more dovish than they were couple of weeks ago? ashok: if you look of the data that was coming out last week, it was pretty bad. the downturn in the inventories indicates they're going forward. you do not get that kind of movement. the main reason you get