michael mckee will interview robert kaplan.ay is a big day for another reason, that is because the general data protection regulation, gdpr, goes into effect in europe, placing new limits on companies that collect and use data on individuals. to take us through the regulation, we welcome bart mcdonough, and sarah, who is our bloomberg intelligence senior analyst in london. we will put up a chart that indicates that outlines in the gdpr, take us to the important new restrictions. is wouldally, th apply to companies in you are in the world, if they process data in the european union. its impact is not insignificant. andrules on data processing storage come into effect today, and it is a huge challenge for companies, especially in the financial services sector, which may have been focusing on. we're talking about the average cost of 66 million pounds, compared to 15 million for 5100 companies. david: you are for the financial services. we tend to think of this in terms of google or facebook, but the fact is financial services comp

robert kaplan as well as san francisco's john william both backing at least three more hikes this yeare vice chair nominee also told the senate panel there were benefits for qe. >> initially, i would have argued and did at the time think it made sense in the depths of fedperiod in 2008 for the to pursue that option, acknowledging it had not been tried before. at least in my memory, the u.s. had not mrs. early been at zero rates before -- necessarily been at zero rates before. i do think the benefits of qe diminished as more rounds were added. ramy: there is a little fed speak. let's bring in peter coy, economic editor. after all the things we are hearing, what is the take away? me is the takeaway for the fed is finally me is the fed is finally moving to fill out its core. there are seven seats on the board of governors and only three occupied right now. clarida will give you a fourth. testified today in her confirmation hearing. she, if approved, and it is expected to happen, will be the person in charge of small banks and she has expected to testify two things they are overregulated.

let's head to michael mckee, where he caught up with dallas fed president robert kaplan.about the threat facing the economy. >> the financial sector is part of that as key leverage. what i am looking for is systemic risk. if the company fails or defaults, it is not a good thing, but it is not going to pull down or shouldn't pull down the rest of the economy. corporate jet to gdp is something to watch, but i do not think a red flag is there at this point. michael: another thing you did not mention is oil. what do you see happening with oil prices and how much of a danger is it to the economy? robert: it is not a danger. we are in a fragile equilibrium right now. what do i mean by that? we are in relative supply-demand allen's globally. but some of that is based on opec and other oil producing countries agreeing they are going to cut 1.8 million barrels a day, and there is some talk they might revisit that. for the next 3-5 years, what you -- what youolatile will see is a volatile up and down in global prices. my concern is not in the next few years, but the out years. we t

dallas that president robert kaplan has cautioned against speeding up the pace of interest rate rises. he says the fed should not knowingly inverse the yield curve. meanwhile, san francisco john williams is positive about the economic outlook both in the u.s. and abroad. he sees three to four hikes this year is appropriate. >> i see the distribution as three to four rate increases as appropriate for this year as a whole, and a few more increases over the next few years. i view this to be the right direction for monetary policy. >> tencent slumped below 400 hong kong dollars. it is shedding more cash ahead of yearly earnings. the decline was the biggest drag on the hang seng index. the stock lost 95 billion u.s. dollars after a record high in january. tencent will probably reported slowest profitability since 2003. 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 am jessica summers. this is bloomberg. ramy: jessica, thank you. we have breaking news on the bloomberg. brainard speaking after this

robert kaplan just filled a book with exactly that. we've a lot to be thankful for. in our situation is not the average situation across the world. we could have been somewhere else. or we could of been living in a place where there is a lot of stress. what i have observed generally as that man, women when subjected to stress start to lose the higher level functions of their brain and start to de- generate very rapidly. the reason why i'm interested in autonomy and artificial intelligence the only way to create a better world is to reduce the amount of ancient stresses that cause us to activate that part of our brain and start to act like a snake. we do that very often. whether that proves to be true or not in social engineering we've seen that that happens. people in richer countries people generally behave better what does that mean. does it mean that been richer make sure better person. wonderful people everywhere. what makes people better nobody's coming after them and banging down their door. very consistent reactions to that kind of security. so using automatio

we go to the broader economy and the fed, steve leisman is at hoover institution joined by robert kaplan. steve, over to you >> reporter: thank you very much president kaplan, thank you for joining us >> thank you very much, steve. >> the jobs report, a puzzle, wages up .1% and unemployment rate hits a low we have not seen since the threes why aren't wages rising? >> careful not to react to one-month data look over three to six months, you see wage pressure. this month did not show it, but showed every other element of tightening in the numbers, but not in wage pressure, but i think it will. this may be just a one month aberration everything i see tells me there's more wage pressure out there. >> reporter: the rate fell, is there slack out there or not >> everything i saw here tells me there's a little less slack u6, unemploymented plus discouraged workers, those working part-time is now below the pre-recession low. that dipped down, unemployment rate dipped down, participation, and our own work at the dallas fed suggests participation is going to dip below down to 61% over the next ten

john williams his first interview since named the head of the new york federal reserve bank, and robert kaplanng on issues of trade and the economy. he's coming up at 2:30 back to you in new york. >> all right, thank you, steve liesman. when we come back, you know about doing the wave at a stadium. but josh lipton is taking that to a new level, right, josh? >> jon, he's considered one of the greatest surfers of all time, kelly slater, the 11-time world champion, and now he's developed what you're seeing behind me here, a wave system that creates these perfect, consistent manmade waves he thinks it could help turn surfing into a stadium sport th'somg nt at cinupexon "squawk alley. >>> welcome back to "squawk alley. coming up on monday, microsoft's build developer conference kicked off, and we're going to have microsoft's ceo satya nadella, his insights on what's next for the company, cloud, there is a lot to cover there. and as we head toward noon, look at the major averages. holding on to most of their gains. the dow up almost 1% same for the s&p and the nasdaq up a little better than 1% now,

named the next president of the new york fed he'll also be speaking with the dallas fed president, robert kaplantoy's dashow "worldwide exchange" is coming up next. are you taking the tissue test? yep, and my teeth are yellow. time for whitestrips. crest glamorous white whitestrips are the only ada-accepted whitening strips proven to be safe and effective. and they whiten 25x better than a leading whitening toothpaste. crest. healthy, beautiful smiles for life. >>> i'm courtney regan it's 5:00 a.m. here is your five at 5:00. >>> the u.s. trade delegation is in beijing at this hour talking tariffs. >>> tesla shares take a nosedive as elon musk hosts a bizarre earnings call. >>> and spotify drops after reporting a quarterly loss chinese smartphonemaker xiaomi pls to go public. >>> and goldman sachs bething on bitcoin by opening a crypto trading desk it's may 3, 2018 "worldwide exchange" begins right

later, you're going to be hearing from robert kaplan.cine: president trump pulls out of his meeting and markets barely blink. in italy, investors are fretting about banks as public parties push their proposals. we are live from st. petersburg international economic forum at midday, our presidential plan leaders.ral world ♪

charles evans of chicago, and we also had robert kaplan of dallas. and among the things that they were saying, charles evans said he is not so sure that tax policy will get the u.s. gdp growth up to 3%. i don't know, it feels like things are growing pretty well right now. do you think he's right? >> i think in general things are pretty strong, and we've climbed this wall of worry really for the past year, year and a half. you know, we've got unemployment at 18, 19 is, 20-year lows. so that's positive. i think that, you know, when you listen to the fed talk, you kind of have to take everything with a grain of salt. they're looking out ahead six months, a year are, year and a half. so they have a longer time frame. but in general, i look at the one indicator, i mean, the market seems to discount everything. and for now, it seems to be happy spinning around this 25,000 level, right, which is halfway back since our february lows. moving forward, yeah, i'm going to watch oil prices, and i'm going to watch what happens with next friday's unemployment. thos

we spoke to robert kaplan over the weekend. he spoke of around 2.5%.s you look at the world economy, politics will come and go and global growth remains firm. christine lagarde warned against central bankers who get involved in markets and try to interfere. what is more important for the momentum of world growth? is it that the fed doesn't have a policy mistake? las: of course, that is way more important, unless there is some kind of disaster. in the bigger picture, look at monetary policy more than geopolitics. sometimes it is more fun to look at the geopolitics and everything. keep an eye on that. this discussion is very interesting. how high can interest rates really go, can bond yields really go? we are at these levels that some people see as the neutral rate for the bond yields in the u.s. do you think 1.75% is the neutral rate? that would be a considerable distance away. i've met him. he's quite a market friendly president. a short ratesaying is at the usual level. that is a little bit of a way to go. but the long yields are not so far away. now

. >>> first on cnbc, fed president robert kaplan on rising interest rates, inflation and economic growth "squawk box" 6:00 a.m. cnbc. >>> welcome back to "fast money. it's like a scene from the alfred hitchcock horror film psycho crypto carnage rages on and has been a bloodbath since highs in early may. bitcoin, ripple, litecoin getting slatered what's behind the move our crypto baller bk. >> i would temper enthusiasm or volatility this is normal volatility but we'll talk about that in a bit crypto carnage, why are we seeing a selloff, let's call it. number one, regulatory uncertainty. yesterday north american security association come out and do something called operation crypto sweep where they shut down a lot of really bad projects and sent letters to a bunch of exchanges just to gather information this is what we want regulators doing, out there fixing problems, shutting down projects we have these rules, that we need to follow by. this is the next step into the institutionalization of this market while it's uncertain now, i actually view that as somewhat of a positive. lack of insti

plus, dallas fed president robert kaplan. >> and saddle up the ceo of chirurchill downs wil join us.is stock is up 63% in the past year what is driving that growth across the finish line that and more ahead on "power lunch," and "halftime report" returns right after this every fire department every police department is part of a bigger picture. that bigger picture is statewide mutual aid. california years ago realized the need to work together. teamwork is important to protect the community, but we have to do it the right way. we have a working knowledge and we can reduce the impacts of a small disaster, but we need the help of experts. pg&e is an integral part of our emergency response team. they are the industry expert with utilities. whether it is a gas leak or a wire down, just having someone there that deals with this every day is pretty comforting. we each bring something to the table that is unique and that is a specialty. with all of us working together we can keep all these emergencies small. and the fact that we can bring it together and effectively work together is pretty

i'm here with the dallas federal reserve president robert kaplan. >> welcome to texas. >> yesterday asing about the market moved on the minutes. i think there were two things that were in there one was this discussion of symmetry and the long one. if we can take this one by one, what is your sense that the federal reserve will be? how comfortable are you on a the% target? >> my own view is you don't want to run below, few had excess of 2%, i'd be willing to tolerate that if i thought we were going to run above 2% that would affect my policy views so that's my view i did some calculation, you have to be 2.7% for like six years do you have that tolerance >> it's not historical smet try. you don't need that to catch up. we had seven or eight years of an under run when i say we don't want to run a little above or bow low, that's fine we're not trying to catch up for historical under runs. >> is two-and-a-half tolerance level? >> i still say i want to run around 2 if we got a little above it. i thought it would be short term, not long term, i could tolerate that. fithought it would persist

dallas fed president robert kaplan has cautioned against beating up interest rate rises.e's not jumping away from three hikes come a but said the fed should not knowingly invert the fed curve. san francisco's john whims is positive about the outlook and the u.s. and abroad and seized 3-4 hikes appropriate. distributionter of , three-for rate increases is appropriate for this year as a whole, and a few more over the next few years. be thenally feud this to right direction for monetary policy. >> china's holdings of treasury's rose to a five-month high in march, increasing by $11 trillion, and2 underscoring the allure of u.s. debt despite trade tensions. china remains the largest foreign creditor to the u.s., followed why japan, whose holdings dropped to two $1.04 trillion, the lowest since october 2011. tencent slumped below 400 hong kong dollars, shedding more cash ahead of quarterly earnings. three point 4% share decline was the biggest drag on the index and takes the stocks lost to $95 billion since a record high in january. analysts think a tencent will probably report

president john williams, his first tv interview since being named the next new york fed president and robert kaplan about the feed meeting this week. their positions on policy going forward, inflation, and much more i guess -- >> check please. >> a lot of key questions right now. time for check please now. it's got to be -- this is my favorite, if "favorite" is the right phrase to use, favorite sound bite on elon musk last night referring to boring boneheaded questions >> and so where specifically will you be in terms of -- >> excuse me >> in terms of capital requirements >> next. boring hone head questions are not cool next >> boring bone head questions are not cool >> and cut him off you know what, the question may be boring, but it's actually one of the key drivers of the stock. >> that's why he cut him off >> people want to know if he's going to have to raise capital, and on that note, we didn't mention this all hour, but tesla bonds are getting ahead. >> he has a lot of experience asking boring questions, ladies and gentlemen, but that was not a boring question. >> these are the questions that

." >>> dallas fed president robert kaplan will be joining our steve liesman.hat i heard was, steve asked him does a three handle on the unemployment rate and we got that today for the first time since 2000 make you nervous about this economy running too hot and he said no. so everybody saying, you know, the feds getting a little more aggressive, worried about inflation, john williams, who is set to become the new york fed president which is the most important regional fed president since it's goldilocks, good growth, not too much inflation, not too hot and not too cold. >> very chill. i could understand him. he spoke plainly. >> which is weird. >> he's been a fed person his whole life. >> yeah. he was quite chill on the economy and inflation and all of that. so don't get too worried about that. >>> now maybe betting on the kentucky derby is not your thing but betting on the company behind the kentucky derby has paid off hansomely. churchill stock up 120% over the past three years. the company's ceo is about to join us. lots more "power lunch" ahead on this eve

he'll be speaking with robert kaplan, rafael bostic, and patrick harker wow.tch it all tomorrow morning. >>> there's still a whole lot more ahead right here on "the closing bell." >> much more on another day for the markets that left investors questioning their next move. plus why amazon suddenly finds itself facing criticism regarding its relationship with the police and a big step for a company that sells clothes to women but has none on their board. "the closing bell" with kelly stk chgeyo from the new rk ocexan returns in two minutes. hi, kids! i'm carl and i'm a broker. do you offer $4.95 online equity trades? great question. see, for a full service brokerage like ours, that's tough to do. schwab does it. next question. do you offer a satisfaction guarantee? a what now? a satisfaction guarantee. like schwab does. man: (scoffing) what are you teaching these kids? ask your broker if they offer award-winning full service and low costs, backed by a satisfaction guarantee. if you don't like their answer, ask again at schwab. if you don't like their answer, som

to our conversation yesterday with robert kaplan, this is about moving french built submarines down tonamics of the south china sea. francine: this is significant because it goes to the soft power that france and emmanuel macron feels he needs to rebuild. he went to see donald trump. we saw the friendship that certain press were talking about. we now see him going around the world to build alliances. a lot would argue that he needs to focus on geopolitics as he is but also on domestic affairs. as he is traveling so much, there are always critics saying he should be at home more to talk about labor reforms on mayday. tom: perhaps we will look for sanctions or any announcements from the president. here is taylor riggs. taylor: president trump came out with a late-night reprieve on steel and aluminum tariffs on the eu, mexico, and canada until june 1. the administration says it has already reached agreements in principle with argentina, australia, and brazil. iran is rejecting claims israel's prime minister that it lied about its nuclear weapons program. netanyahu said material smuggled o

and the treasury yield curve is also in focus, robert kaplan told mike mckee that he is keeping a very i will be watching very carefully the shape of the yield curve and what the shape of the yield curve tells me is that there are prospects for future growth that are sluggish. i think it is worth paying attention and that is the reason i am's ring let's just keep it at three, i'm not looking to increase that. >> let's bring in our guest, who thinks tenure yields will ultimately be priced later in the year. he is the chief macro strategist for asia, good to have you with us. when exactly? >> that's the big question. i would think the second half of as the markets adjust to the idea that inflation has to stay. i think you could push the idea further into the market and it will be a bit steeper in terms of pricing. what happens with the rest of the world, especially with think if iticy, i looks like that will slow down that is probably going to bring back a little more. all, i think we are on that trajectory. there's also another important data to look at. >> i think it confirms the inevi

what he's referring to, robert kaplan told me in the end we will see the gdp go down to one and three quarters of a percent. >> that is very scary and that would be our economy growing at a slower pace than other global economies. trent is because of demographics, baby boomers retiring. a lot of technical things he was pointing to. when i brought this up, he said absolutely not. he's expecting 3% growth. >> he seemed a little too quick. i want to be an optimist, too, but you've got to consider elements here. maria: does oil built on a stronger economy or doesn't economy weaken as oil prices get higher? prices at their highest level since 20 for a minute largely due to the protests in iran and the looming nuclear deal deadline, and as vice president mike pence's meeting with boris johnson today in washington today. they will talk about the iran deal. johnston to encourage the white house to stay in the deal. vice presidential nominee and connecticut senator joe lieberman told me yesterday. >> i'm encouraged by what the president has said so far and i hope he does pull out because they