vice-chair stanley fischer says the global recovery is disappointing.nderperformed expectations. so much for pent-up demand i guess? >> well, yeah. so much for pent-up demand. talk about stating the obvious. i think the fed continues to be delusional. these guys are kidding themselves. looking at the numbers that reflect economy 100 years ago. they have sold middle america down the road. every central banker in the world is guilty of this right now. stuart: ouch. sold middle america down the road. they're all guilty. all right. thanks very much. everybody. that is it for today's "halftime report." thanks, everybody. more "varney" coming up for you next. in new york state, we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs.

. >> stanley fischer saying, look, rates aren't going anywhere. can argue what he's saying, there's no demand for money and then say, wait a second the fed's keeping rates down. i know the big money guys don't want to hear this, i think the fed could sell 500 billion in bonds and there would be buyers, whether chinese, russians worried about their own money. demand for treasuries is insane. >> we'll get some note auctions this week. see what demand is like. a lot of m&a. >> there is. i'll tell you, people who like money, those borrowing it to do deals. we've seen that in amazon. there's not in this deal but certainly creeping sense of other bubblish times. kinder morgan what i'm talking about, it's consolidating publicly trading units into one company $44 billion cash and stock transaction that includes kinder morgan energy partners, kinder morgan management, and el paso pipeline partners. we're going to talk with kinder morgan's ceo richard kinder later on squawk. i can give you the term but was i'm going to turn to you. you know mlps and this co

yerlan, stanley fischer speaking in sweden later today. are we going in the right direction with regards to fed policy? we keep seeing tapering. we're still a long ways from rates going up, we think, or is that the case? >> well, the markets still believe that we're on course for the end of the qe, so the tapering is on. but the main question is whether the policy rates will be revised soon after or to what extent those rates will go higher. so, i think this is the most important question. >> now, let's bring max king into this discussion as well. he's a portfolio manager at investec asset management, with us, too. max, welcome. what do you think in terms of fed policy? >> well, i think if the u.s. economy accelerates, then the federal reserve will need to raise interest rates, and that is wholly a good thing from the point of view of investors. we still want to see accelerating growth turning into something that brings forward subsequent busts in the next recession, so we would welcome interest rate rises as a response to higher economic

stanley fischer is defending low rates for longer.ident says take away the punch bowl. mccarthy, he lives for debates like this. we have all become a bunch of fed geeks, i admit. who is right? which fisher? >> i think stanley fischer is right and the fed will keep rates lower for longer. i think they will start raising rates at the beginning of next year. some of the hawkish presidents want to pull that forward. tohink it's probably going happen later, because it's going to take that long for the fed to a comp was what they want to accomplish before they are raising rates. -- to accomplish what they want to accomplish before they are raising rates. but it's important to keep it open debate in terms of what policy should be, and also keeping the markets on their toes. there has been some complacency in the market with what monetary policy is and what it's going to be. argument thatthe if the fed wait too long there will be a setback and then they have to play catch-up? favorite recall the forecast in 2009, it was that we were going to

economy, nonfarm payroll growth -- >> you're not buying what stanley fischer is selling? t all. i'm more in the camp of stanley druckenmiller, where he says look, you've got nonfarm payroll three-month averages, they were at 340-plus, out of step with the 25-point basis fed fund rate. >> so, you think the fed is behind the curve here. do you think that means it's not going to end well, it's going to end badly? >> i think the challenge now is up to the fed to signal to the markets, you know, what their intention will be, wrapping up qe and the market immediately, if the economic fundamentals hold up the way they have been recently -- >> and you don't think they've done that? >> the focus is going to be on the fed. >> you don't think they've done that? >> not at all. >> hmm. we're looking at some of the sectors today. looks like, if we could put the sector board up for one second again. bob, where do you see the most opportunity in this space, then? >> again, a lot of it's going to depend on the signals coming from the federal reserve. what i meant was a few weeks ago, the y

regulation and has the ear of president obama and the attention of the federal reserve vice chair, stanley fischer, is here. these ideas make wall street nervous and they're gaining traction. she will be here with what she says is wrong with the banking sector. >>> our old different marcus lemonis joins us after the bell. "the profit" star here on cnbc has a few things to say about this market. plus, marcus has accepted the ice bucket challenge for als and will do so here on the "closing bell" and you won't believe who he's going to challenge to do it next, kelly. watch out. >> i know. let's take a look at markets right now. with an hour left in the trading session, the dow is turning in a strong performance, up 168 points or 1% now. it's actually the nasdaq as well that got an early start in the green, helping boost the risk complex higher. it's up 38 points to 4,503. and the s&p 500, and this will be one to watch, is at 1, 69 right now. >> and what a great year that was. joining our "closing bell exchange," rob bartenstein from washington wealth management, steven hammers from compass emp funds,

stanley fischer, number two at the fed, here is what he said about growth in this country, you and i agree we don't believe in that 4% growth. we think it will be revised like nobody's business, basic challenge on list of issues, restoring growth if that is possible. underperformance reflect as longer term growth shift in the economy and less growth and talks about supply. do you agree with him? >> yeah, 100%. the biggest reason for growth. i get back to the manufacturer outside of philly. there are is 1.6 trilliondollars of cash held by american companies. my clients are doing the same thing. we're hoarding it. we're very loathe to make investments and bring on more people right now. if businesses really aren't making those kind of invests and taking a risk, indicative of a non-business-friendly environment right now. you will not have growth unless that happens. i'm not seeing my clients. >> where americans have their money? gene? cash. number two, real estate. >> cash is it. cheryl: cash is king. gene, thank you very much. enjoy the rest of your holiday. >> you too. >> we want to

source of concern because it may slowdown of the economy which also faces a drag [inaudible] stanley fischer a little bit more dovish. janet yellen is speaking about labor markets. economists that bloomberg has spoken to suggest she will remain dovish. there is still funny of room for improvement in the labor market despite the improving figures. the caveat to last night's minutes, we had key wage, inflation data, since the july d toing which is surprise the downside. the unemployment rate is up. it gives the doves a little bit more ammunition ahead of jackson hole which kicks off today. >> the conundrum is markets. by 3%. bond yields are rising. stocks in the u.s. fell by retraced the losses. the dollar up as we know. volatility down. gold down. mixed messages in the market. the bond markets are telling us rates are coming sooner. the stock market does not seem to care or does not believe it. >> or the stock market says great. the economy is doing better so get ready and consumers, go spend. >> stocks will rise. latest data on the chinese economy was just released. the numbers were not too

i thought the stanley fischer speech earlier this week was very important.nk basically what he said is there is a lot of stuff we don't know, a lot of uncertainty. as long as that is the case, let's stay on the cautious side, the dovish side. a similar message yesterday from carney -- from our carney as well. >> your perspective on the market? checks, the market is so sure, so sure, then pimco, the market is so sure of the euro will reverse. here we are, still have not broken 133, 21 billion of short positions in the market, are we so short as the worst is baked in? on whetherit depends overall people are willing to get engaged more. overall engagement is very low. >> the euro-dollar, the euro-yen? funds,s say the hedge the speculative money, they may be 20% invested, 30% invested in terms of risks. which means if that figure stays the same, then we are very short. but of course they could suddenly come in and do 100% risk and we could go a lot lower. i think that depends on the central banks. i don'tdoes not change, think risk-taking will increase a lot. in

last year but the new suit accuses gm of concealing evidence. >>> federal reserve vice chairman stanley fischereconomic recoveries in the u.s. and elsewhere have been, quote, disappointing. fischer told a conference in sweden that potential economic growth may have gone into a permanent downshift because of a slower productivity and declining labor force participation rate. and one of this morning's big stock winners drugmaker mankind corporation. it's licensed its inhaled insulin treatment to french drugmaker sanofi in a deal that could be worth up to $525 million. sanofi sells more than $40 million a year in diabetes treatments but its top selling insulin is set to lose patent protection next year. 23% for the market. >>> breaking overnight a political crisis in iraq as prime minister nuri al maliki refuses to step down to allow the elected president to take over. this as the obama administration is stepping up airstrikes against militant group isis in the kurdish north of the country. duncan golestani joins us from erbil. >> good morning, michelle. this is the kind of political infighting an

. >> we will talk about the stanley fischer speech in stockholm that addresses better and if i met, better wages. weaker pound sterling is what we got. what else cap go >> 7:00 weekly number jobless applications. retail sales. very big deal, not a big number. looking for up .2%. business inventories. >> we call this ambiguity. about weird word segue. it is like debut. i digress. >> princeton. . am feisty today >> dear and macy's were poor before the bell. >> will bed cisco. interesting to see what john chambers is doing. >> i was thinking macy's would be interesting. i get a text message every other day from macy's with 50% about it. that eatingnt is into the margins? >> that is the morning brief. >> looking at equities, currencies and commodities. 1.33.ro sterling weaker as governor carney speaks. the fix is important. 14.13 is a better than good lower number. the quiet story of the past 10 days. there is the german two point year. -- the german two-year. here is normal. summerfor normal in the of 2014. here is banks and here is the negative two-year yield in germany. notice this. that is

janet yellen and the vice chair stanley fischer wilsey. -- will see.going to win next year. >> i would love to see janet yellen show up with her dashboard. >> this speaks very much to her concerns in the labor market. >> that is the focus. reevaluating labor market dynamics. thank you very much, john. we will leave it there. we are looking ahead to jackson hole. subject ofe a conversation on "bloomberg surveillance." keep it right here on bloomberg television. "bloomberg surveillance" is up next with tom keene and the team. i will see you again tomorrow. ♪ . . >> this is "bloomberg surveillance." >> today is the day as bank of america is punished hardest by regulators. plus the previous nine, you do the math. the white house announces that an attempt was made to rescue hostages in syria. james foley and others were not rescued. inflation will move higher. just look at your monthly rent. good morning, everyone. this is "bloomberg surveillance." we are live from our world headquarters in new york. it is thursday, august 21. i am tom keene. joining me sca

stanley fischer has been known to throw chalk. >> i never did it. how weael spence on control our emotions when things go down. >> this is -- there are two things going on worth attention. the markets have not figured out how dangerous the global economy has become. secondly, we have these better than expected gdp reports. monetaryslated in policy. >> two crosscurrents. josh rosslyn, you are shaking your head yes. isyou agree that this possibly global contagion? as a global contagion, no. i agree we have a larger issue. the rate of recovery globally has not been what it has been expected to be. if you look and dig into participation rates, we have real reasons for concerns. there is too much irrational exuberance. >> what did you mean a moment ago when you said global markets are dangerous? the global economy, the tradable side of it relies on flows of people, information, capital and goods. four are under threat. we are shooting down airplanes. whereis a problem about to fly. cyber security as a bonus contention. tons of tension. the middle east is

as stanley fischer, the fed's vice chairman and by far my favorite central banker said today when heppointing growth in the world's economies, there's really only one choice when you're faced with terrible growth conditions, and that's to take advantage of what's out there and make some acquisitions. >> and jim rattled off a list of companies and sectors where this could happen. so, are mergers and acquisitions the only way for companies to spur growth in today's economy? with us now is michael nemeroff along with the panel. michael, good to see you. first of all, at the beginning of the year, a lot of people were skeptical that this long-foretold m&a boom was going to happen. now it seems it's really starting to happen, isn't it? >> yes, it really is. the strategic acquirers have upped the game. everybody's jumping into the pool. if you're not growing by acquisition, you have to slog through organic growth. it's not exciting to investors. so, virtually every household name that you see has jumped on the pile and is starting to participate in the acquisition game, as mr. cramer said.

. >> i think we're going to finally do better than 2% unless you're stanley fischer and you think we'retuck here forever. >> i don't think you're stuck here forever want but there are factors that suggest you're not going to go 2.5% over the long-term. >> that's sad if we're not going to grow back at 3.5% again because that's what the united states economy was capable of. >> it's what it was cable b of. >> it's not morning in america? who are you? i don't think i know you any more. >> look at what technology is going to bring us for the next ten years. >> we can have great technological gains. but here is another raemt. the population growth is much, much slower than it was 20 or 30 years ago. >> enough jobs for the people we have now? we don't need more people. >> faster productivity growth to offset that slow growth in labor. >> he's a downer. take it away. take us to break. >> i think -- who i think is i think a slower, stubbornly disappointing recovery means that this thing goes on for way longer than people think. i don't think this is a seven-year recovery. i think this is five in