exports and the fed sits and sits and says they get paid to borrow money while we are paying interest yes back to you on wall street the fed has to decide on its monetary policy next week a cut in interest rates is very likely thanks to mr trump's interventions or what exactly is this. well officially nobody says that the federal reserve has reacting to the harsh words from u.s. president donald trump amid all by the way on wednesday he did call the members of the federal reserve boneheads but it seems to be a certainty that interest rates will be cut next week when stay very likely by 25 basis points we see a hardly any inflation here in the united states and we do see some signs of weakness economic growth especially in the manufacturing area and that's why the probability is basically at 100 percent that the fed is going to cut rates 2 and scored in new york thank you. u.s. soybean farmers are among those hardest hit by the u.s. china trade war as china is imposing hefty retaliate or tariffs on their products among those profiting from the ongoing dispute are soybean farmers and crushers in argentina for the 1st

federal reserve does this week with interest rates could heavily impact wall street. the fedd to cut interest rates by a quarter point. friday the dow posted the eighth straight gain, rising 37 points. it was a mixed finish. the s&p 500 fell two, and the nasdaq lost 17. >>> there could be changes to the way boeing operates in the wake of two deadly crashes involving its 737 max jets. "the new york times" reports a committee of boeing's board has been looking at how the aerospace giant could design and build safer airplanes. the recommendations reportedly include changes to boeing's organizational structure. the creation of new groups focused on safety and possible changes to the way future cockpits are designed. the committee is expected to deliver its findings to the full board this week. >>> the curtain has closed on moviepass. the movie ticket subscription service shut down on saturday. it underwent several changes to its pricing structure and business model but kept hemorrhaging money. the parent company of moviepass said its efforts to seek financing have not been succes

at this week's open market committee seems like a fait accompli but in the meantime the wall street journal says the fed reportedly had to take action to keep the federal funds rate in their target range with $53000000000.00 and repurchase agreements fox business and other outlets say was close more closer to a $75000000000.00 intervention diagram the mechanism of this intervention for us and what are the implications of this fed action moving forward. well 1st of all i think the financial media and wall street is must too complacent about what's happening in their their their instinct is to sweep it under the rug is no big deal but i think it really is a harbinger of what's to come because you know the federal reserve has been artificially suppressing interest rates particularly since the 08 financial crisis and by keeping interest rates artificially low they have created a bubble that's much bigger than the one that popped in 2008 and what happened this morning is that you could see the air coming out of that bubble because the market is trying to bring interest rates higher because we have no real sa

were allowed to get even more free money by putting it on a posit with the fed so the ecosystem became between the fed wall street and the dad most people took a that's that's the ecosystem and they create this dynamism based on we want to with the fake message we want to create inflation to boost wages which is false they want to print money to increase the acid dyes of their homes in our work but the mainstream media buys it because they are also owned by the same folks so there is no diversity we come in we've been saying now for 10 years that's all false this is the real economy and we've gone from financial repression to financial vandalism at least now bloomberg calls it to financial terrorism which will be the next up the next step here is money for nothing in growth for free dutch considering $50000000000.00 euro growth fund financed with negative rate debt this is kind of in a way this m.m.t. is here they're saying they're being presented with investors willing to pay them to borrow defying all. the laws of our known economic history perhaps before the bronze age we did stuff like this and that's why we

the transports with them. >> yes, and also meanwhile wall street is bracing for the fed decision, now less than three hours awayre going to discuss what to expect next. stay with us markets. the business of trading goods and services. nasdaq operates among the largest markets in the world. and our technology powers markets from indonesia to chile. great markets are built on a foundation of trust and integrity, forged through leading edge technology and a smart regulatory framework. as technology advances, regulation must keep pace to allow the markets to evolve. today we see an opportunity to modernize regulation, to make markets more accessible to investors and entrepreneurs of all sizes. from the graduate buying her first stock, to an institution investing in thousands. the markets belong to everyone and stand as a symbol of economic advancement, social progress and limitless opportunity. that's the tomorrow that we envision and to get there, we'll have to rewrite it today. >>> welcome back to "squawk alley. saudi arabia's defense ministry saying that drone and missile debris proves an iranian role in last we

the bell." there is more. melissa: we are looking at a comeback on wall street following the fed decision to cut rates by a quarter percentage point and keep them at the current level through 2020. the dow closing up a whopping 36 points. we were down more than 200 points earlier in the day. s&p 500 and nasdaq, see how they're ending the day. positive territory for the s&p, barely. nasdaq, no such luck. i'm melissa francis. connell: i'm connell mcshane. that was a nice little chart at the end intraday for the dow. well-tom to "after the bell." we have fox team coverage i'm sure her counting on keep stories at the end of day. gerri willis on the floor of the new york stock exchange will start. edward of course with you, you're the man of the hour. i guess jay powell is. take us through the day. reporter: heard what he said there, 25 basis point cut to the federal fund rate. there was very divided fed we saw here. very divided committee on the fed funds rate. there were three dissents. the last time there were three dissents in the opposite directions, december 2014, five years ago. we had st. louis fed president ji

the fed and slamming the fed again saying the fed needs to be cutting interest rates. so the president trying to get out ahead of these numbers, disappointing numbers in the eyes of wall streety it's the fed's fault. you've got a president now here who is presiding over 600 million new jobs creating in his presidency. that led the last months of president obama. >> christine, thank you very much. >>> doctors may have pinpointed exactly what is causing so many people to get sick from vaping. this is an important story. dr. sanjay gupta joins us with this important update next. whether it's a year old or a few years old, we want to buy your car. so go to carvana and enter your license plate, answer a few questions, and our techno-wizardry calculates your car's value and gives you a real offer in seconds. when you're ready, we'll come to you, pay you on the spot, and pick up your car. that's it. so ditch the old way of selling your car, and say hello to the new way-- at carvana. you'when you barely the clip a passing car. minor accident -no big deal, right? wrong. your insurance company is gonna raise your rate after the other car got a scratch so small you coulda fixed it with

the fed. our colleague took a look at the results of cnbc fed survey >> reporter: wall street is expected to cut interest rates 100% of the correspondents see the feds cutting the rates by a quarter point. all expect another quarter point cut by year end. the problem is that forecast rates come with reduced out looks for u.s. growth and recession. the chance of a recession soared to an 11-year high it was below 20% for most of last year. growth is expected to climb from 2.2% this year to 2.5 in 2018. economist writes in response, quote, a trade war that continues to next spring or summer almost certainly causes a recession that is likely to spread worldwide not everyone agrees senior strategist says recession talk has been overdone. there has been a slow down but the outlet for holiday spending is good based on high level of consumer confidence for now, respond enters see slight gains for stocks but continued low interest rates the question is whether cuts will be enough to offset the weakness high levels of the stock market and continued forecast suggest the markets betting the fed will win tha

the bell." there is more. melissa: we are looking at a comeback on wall street following the fed decision to cut rates by a quarter percentage point and keep them at the current level through 2020. the dow closing up a whopping 36 points. we were down more than 200 points earlier in the day. s&p 500 and nasdaq, see how they're ending the day. positive territory for the s&p, barely. nasdaq, no such luck. i'm melissa francis. connell: i'm connell mcshane. that was a nice little chart at the end intraday for the dow. well-tom to "after the bell." we have fox team coverage i'm sure her counting on keep stories at the end of day

the fed. that is great news as a late, great stock sage, marty used to tell us to appear regularly on wall street, don't fight the fed, don't fight the tape the macro means we're not fighting the fed how about the tape to figure that out, go to the game plan next week. on monday the focus is big chinese data their consumer price index and producer price index, is it too hard to put it one day in our country? they put them both, we do one day and the next day that's silly i think you have to be wary of numbers but need to know how the economy is doing and these figures could give clues every day it feels we are assessing who has the upper hand in the trade talks if china is experiencing serious deflation, maybe they are in a worse position than some of us think. if there is major inflation because they debased their currency, that could make it more likely to make a deal if they are not too hot, not too cold they would be less willing to make concessions. let's keep an eye on the numbers. tuesday we hear from rh, the restoration hardware and he's been on a roll i want to talk about how lieu li --

the upgrade whether they nailed it or not. in taste you hadn't heard foam is fed day steve leastman lays out the big picture from the fed survey. >> wall street expects the federal reserve to cut interest rates tomorrow amid growing concern about economic weakness recession fierce and the trade war. 100% of respondents to the cnbc fed survey see the fed cutting rates by afare quarter point after announcing results of the september meeting, nearly all expect another quarter point cut by year end. the problem is that forecast for lower rates come with a reduced outrook for u.s. growth and increased probltd of recession the schans of a recession in the next 12 months soared to 11-year high of 32% of are according to the survey below 20% most of the year forecast growth is forecasted to 2.2% this year and sinks to 1.8 peppers in 2020 an economist joe naro the ff writes a trade war continuing into next spring or summer almost certainly continuing to recession spreading world withheld senior investment strategist at the philadelphia trust company says recession talk is overdone. yes there has been some slowdown in various economic indicators but th

seems like the wall street is facing for the fed to say one thing. there was confusion.e had two official dissenters. we have fed governors that don't agree with policy. jay powell likes consensus thinking. we want federal reserve to take over. >> i want consensus, as military guy, so are you. charles: military guy, when the highest ranking officer stepped in the room he or she was in charge! >> it says, sarge, what should i do? i like that. other sergeants have input. that is how you come to a better decision. >> during the next week you will see a parade of fed heads walk out on shows like this, walking out whatever comes tomorrow. they will be talking their own book. charles: with respect to what happened overnight, i don't want to get wonky about this, there was a mini-crisis, a lot of people say it could impact the federal reserve. maybe their balance sheet could be larger. help us with this, zach. >> you saw repo rates take off. two big things we saw driving this, corporate tax payments at september 15th tax deadline, while at the same time net treasury issuance in

the market now on wall street. stocks a little changed today. c ahead of the fedeeting announcement tomorrow and retail stocks fell, banks stocks did. energy stocksere down. they were lower on the retreat in price of oil, which we will get to in just a moment. butir the closing numbers for the day with the industrial average rising 33inints. we're at 27,110. nasdaq up 32, the s&p gafgts 7 today. >>> time to look at the upgrades and downgrades. home did he poet ground graded at guggenheim to neutral. it willar preventn expansion. the firm removed the 230 price target shares fell a fraction to impose that level, 2.21. snap upgraded to neutral from negative at susk hannah. first further s sizing growth. the stock reese 6.5% to 16.83. >>> coverage of match group was initiated with a buy rating at citi, the analyst saying the prarnt eparent company of tc com and tinder could grow sbrengsly i. the price $9 the shares gained 79% to. the makerf oxycontin has its day in court. ♪ >>> the maker of juul e-cigare aes says the sales halted in china tais after they re introduced

the fed's decision to inject billions of dollars into u.s. money markets this week sparked large discussion on wall street. vice chairman appeared exclusively on "daybreak: asia," and says he doesn't think the intervention is a big deal. ♪ >> i don't think the repo market is broken at all. these kinds of things used to be common. they haven't had to do it in a long time but it is important to remember that the rate spike looks very scary but it is only overnight. it is more of a concern, a technical problem in the short-term that the fed is addressing. the fed wants stability above all else, so i'm not surprised they stepped in. >> we can accept that the fed got into this by purchasing two point $5 trillion worth of treasuries in the wake of the global financial crisis. what is the plan of getting out again? >> the plan for getting out is the big unanswered question. the winding down of that balance is a whole other issue. my idea is that will be with them a long time. >> and the longer-term, does the fed need to come out with a more permanent mechanism? we really don't have something to address liquidity

but having said that from the stock market's point of view, wall street doesn't care. wall street is greedy. they have been pushing around the fed and getting away with it. they anticipate another quarter basis point before the year is over, rate cut. >> they do. the argument one could make before the first cut earlier this year, well, we needed to fix the yield curve. well the yield curve got more inverted and more kinked as result of that. we're not seeing this as some magic bullet that will correct the yield curve and instill confidence into the machines and robots. charles: real quick will we get another rate cut this year? >> that is hard call but i think we'll get another rate cut within the next 12 month. maybe not in 2019 but, because of these you know lying uncertainties. we're seeing tension between u.s. and china when it comes to trade i would expect another rate cut as insurance. charles: we have to leave it there. thank you both very much. >> thank you. >> apple shares are griping as the company grinds itself again making a debut of the latest apple iphone, trying to make it a big success. we'll have a live report b

brian: it feels like a lot of the wall street research is saying it is a liabilities problem, the fedas not been matching the fact that there has been an increased demand for other liabilities for a while. that is something that they used to do. they have done it since basically the creation of the federal reserve bank. so that is where you hear organic growth from jerome powell, saying we may need to resume that. they have been trying to find this level into has been uncertain for so long, so there is a feeling that perhaps they overshot and they need to get back into buying assets, but not qe, which i think people are straining to make clear. romaine: tell me something good happened out of this. i am assuming somebody found a way to exploit this, make some money. traders live for this type of volatility. >> if you are a day trader and you know the fed will step in to correct this, you are having a great time. i spoke to nick at janice henderson this morning, and he actually entered $35 million worth of dollar-yen forward contracts this week. the logic is the repo rate have really cr

lauren: let's take a look at the action on wall street this morning, very much in a holding pattern ahead of the fed, nasdaq down 12. coming up, a new security threat thathat could expose your medicl information. why the personal data and images areinare being left unprotected. plus, why the uk is stockpiling booze. keep it here on "fbn: a.m.." ♪ i can tell you what you want. ♪ you want to be alone. at comcast, we didn't build the nation's largest gig-speed network just to make businesses run faster. we built it to help them go beyond. because beyond risk... welcome to the neighborhood, guys. there is reward. ♪ ♪ beyond work and life... who else could he be? there is the moment. beyond technology... there is human ingenuity. ♪ ♪ every day, comcast business is helping businesses go beyond the expected, to do the extraordinary. take your business beyond. cheryl: some shocking news on patient privacy. according to a new report, medical images and health data belonging to millions of americans are unpro detectivedpd online. one cyber security expert says it's not even hacking, it's walking into an open

wall street. the s&p 5 remains within 2% off its record high. on going trade friction and the fed meeting that was meant to arify paths forward. marketsre typically seen as well supported by iestors looking ahead to improve fundamental developments. the rally has been broad with investors apparently happyt t the u.s. econoc committee will the market valuation today is about the same as one year ago which proved to be the 2018 peak ahead of the bruising ourth quarter downturn. bond yields were one percentage point higher. on d is easing back terest rates. and investor expectations for growth has been reset lower which can help support stocksor term uncertainty. it remains september. and the f might only keep cutting rates if the news from the trade policy arena turns bads and growth falters. this will keep investors on alert for signs o weakness if the market sneaks through septptber unscathed. the bulk of the year end will no doubt grow louder. it was weak economic data out of europe today that kept a lid market gains and contributed to concerns about the globalte comm that sue me

fed show it to :00 p.m. this is not planned. the repo crisis has come on so quickly. minard will join us from guggenheim. a linkage to the desks of wall streeted president on the dynamics and mathematics of the unknowns. we are thrilled to bring you jeffrey rosenberg of black rock. really definitive on the set of dynamics at the fed -- that the fed and markets face, and for that matter global and american banking as well. viviana: iran telling the u.s. it had nothing to do with the attack on a saudi oil facility and a cable sent to washington. tehran warned that it would respond if the u.s. takes any action against iran. president trump suggesting a retaliatory strike against the iranians. the u.s. is "locked and loaded" you may remember he said. he has not specifically blamed iran for the attack. the saudi finance minister is downplaying the attack's impact. in terms ofn economy and revenue is zero, acause our reserves for couple of days before we are back online last night and today. viviana: aramco has brought back 41% of capacity at the facility. the fed is preparing to adjust another $75 billion into west money markets. yesterday new yo

the worst of all worlds. charles: so to that point, wall street still indicating they expect one more rate cut perhaps at the december meeting, and it feels like this fedy take its cue from wall street. is that okay with you? >> no, it's not okay because -- you picked exactly the right word, they're probably going to cut rates. we should know by now whether they're going to cut rates. the fed funds futures curve is giving that a 60% probability as we speak. markets drive uncertainty. everybody just says it like, oh, my god, we have this terrible trade war that's creating all this uncertainty. the fed is creating even worse uncentithat every single business transaction has to be built upon. you have got to know what your financing rates are. not everybody deals with china, but everybody deals with credit. this fed has got to get its head screwed on. charles: real quick, the new york fed had to step in and provide cash to the financial system. without getting too wonk key, the notion that a financial system would run out of hard currency is a little frightening to main street. should people be worried? >> no, people should not be worried. anybody who's w

the online advertising market. and financial markets are mixed is asia following a flat close on wall street, with investors now looking ahead to central bank action first in europe on thursday and then the fedthe us next week. the world's largest motor show gets under way today in frankfurt, with all eyes on trade tensions between the us and china. with germany's economy now shrinking, the likes of bmw, vw and daimler will hope that the showcase event can give their brands a much needed turbocharge. according to the european automobile manufacturers association, the auto industry provides jobs to 13.8 million europeans. however, during the first half of 2019, demand for cars across the eu fell by 3.1% to 8.2 million. and there are fears that the eu could be dragged into a trade war with the us, after president trump repeated his threat that auto tariffs are never off the table as he pressures the eu for better trading terms. however, there is one bright spot, because 1 million electric cars are expected to be sold in europe over the next year, according to ihs markit. that is a 300% increase on 2018. at the show, our reporter theo leggett met with bmw's chief financial officer, nicolas pete

the traders on wall street. it also raises questions about the fed meeting today. the timing couldn't be worse.y are likely to be asked questions about it in the news conference. on fxs the interest reserves and whether we will see some balance sheet expansion to do with this, because we also saw the fed fund rate being pushed toward the higher-end. manus: yes, one analyst says this was a warning sign to the u.s.. we will talk about what he thinks very shortly. three-dayk at the move, still pricing in geopolitical risk, 7% of the geopolitical risk. we will hear also about secretary of state mike pompeo's visit. 70% of reduction will be returned, that was a critical number, and it soothed the nerves of the market. i thought we would have a look at the dollar index, the repercussions of the first in a intervu -- first in a decade intervention. they added yesterday, the new york fed added liquidity cilia that is a trade war. i think maybe we have forgotten about it. of the bit of a move on the yuan. socgen, a loving note from them saying this morning, 7.5 by the third quarter of 2020. . trump said

fed decision and global richks what's the next move for investors? the week's first trading action. squawk on the street, monday >>> well back. it is time now for our wall center stage. but fedex results will be in focus. let's start with a look at the fed, wilfred has a preview. >> investors morgan will be closely watching the fed decision the fed is expected to cut rates by 25 basis points fed chair jay powell on employment ob inflation and trade will be key. as always, the fed statement will be issued 2:00 p.m. eastern time followed by a news conference at 2:30 p.m. eastern time the reaction to which will of course be live on the "closing bell." >> yes, a big one to watch turning to fedex, another big one to watch, especially when you try to get a sense of the economy right now. we get those results next waeb and frank colin has a pre. >> you fell exexpected to see a 8% in decline in profits epa at 3.17. express segment revenues rb the one to watch forecasted to decline by 3.6%. when the company gets 52% of the revenues early in the quarter it ended the contract with amazon for air delivery and said that along with trade uncertainty would hurt operat

your note by the way is fantastic, you talk about the fed sticking to a late 1998 insurance policy thing but wall street more aggressive. >> right, exactly. so the fed keeps characterizing its actions as insurance and even though we've seen them cut-rate twice, they last cut them obviously last week, they signaled they're not sure the economy is going to need more stimulus because there are a number on the committee looking at an economy that is near full employment. they look at consumer. that is really healthy. and they say that the one area that of concern obviously is trade policy. that uncertainty around the trade outlook is causing businesses to be cautious but the fed says hey, that's not necessarily something we can fix by lowering interest rates. so let's not be so quick to use up all of our ammunition and trying to address a problem we can't solve. so you got people who are happy to take an action to provide some insurance for a slowdown but don't want to get more aggressive. yet you look at that inverted yield curve, the market is saying hey, we see a lot of things to be worried about. the fe

it would be the fed's second rate cut this year amid signs the u.s. economy iin yesterday, wall streether as the impact of the weekend attacks on saudi arabian oil plants faded. the dow gained 33, the s&p 500 a added 32. >>> the trump administration is expressing optimism that congress will pass the u.s.-mexico-canada free trade agreement. yesterday vice president mike pence said he believed congress would approve the agreement this year. pence said it is, quote, vital that congress passes this deal to replace nafta. he said it would boost the u.s. economy, create jobs, and help president trump reach a trade deal with china. >>> the united auto workers union says progress is being made in talks to end the strike against general motors. about 49,000 workers walked off more than 50 factories and parts warehouses. talks continued into last night and will resume today. analysts say gm is losing $50 million to $100 million a day due to lost production. >>> a judge cleared the way for stay in business after if filed for bankruptcy sunday. at a hearing yesterday, purdue lawyers obtained permi

the implications of this fed action moving forward. well 1st of all i think the financial media and wall street is being must too complacent about what's happening in their their their instinct is to sweep it under the rug is no big deal but i think it really is the harm injure of what's to come because you know the federal reserve has been artificially suppressing interest rates particularly since the 08 financial crisis and by keeping interest rates artificially low they have created a bubble that's much bigger than the one that popped in 2008 and what happened this morning is that you can see the air coming out of that bubble because the market is trying to bring interest rates higher because we have no real savings in this country we have enormous debt everybody is levered up to the max government the private sector business consumers because rates have been so low we borrow so much money the market wants interest rates to be higher but the fed doesn't want to allow that to happen because the role the road back to normal interest rates is a very bumpy one because it's going to take us right through another financial crisis so the f

the fed. much of wall street expecting a rate cut but could we see a curveball from the central bank? this morning. blaming amazon and a slowing global economy as it slashes its outlook. >>> vaping nation. how big could the stock be after the backlash from ecigarettes. the final hour of "squawk box" begins right now ♪ ♪ >>> live from the most powerful city in the world, new york. this is "squawk box. >>> good morning welcome back to "squawk box" here on cnbc live from the nasdaq market site in times square. i'm joe kernen along with becky quick and andrew ross sorkin we have langone, home depot co-founder, ken langone. >> you might not know he's here because he's pretty quiet. >> not a bad day today intimidating me, joe frightening me to death. >> oh, no. hard to do. >> first time he's been here when -- >> with me, the last four times. >> i was starting to get the signal he didn't like me. >> do you know when we see each other -- >> we hug. >> hug, sometimes kiss. >> i give a kiss. >> i give a kiss >> you don't shave, i don't kiss >> all right we are down 40 points on the dow this mor

>> i think that to your point, he is setting the fed up as the potential fall guy. wall streetfine with what happened. we were flat. in a wait and see period. more concerned about tariffs than the federal rate cut. so there might be one more ahead. but for now, wall street is satisfied with what they did. >> jerome powell has said that the reason he's cutting is because of the trade situation. i don't know whether that was meant to zing the president saying we wouldn't be in this predicament if we didn't have this cloud over us. do you agree with that? >> well, this is a big question that a lot of reporters yesterday were asking fed chair jerome powell. they questioned, whether these cuts, this quarter point of a cut, was that to apiece the president who has clearly been making the public declarations for months now asking him to cut rates. but the fed chair said this is more of the economy doing great, yes, but to assage some concerns with consumers. so rather being the economy is in a bad place, we need to cut rates to help it. we see the dark clouds. let's cut rates by a qua

the federal reserve. under pressure from wall street and the white house, america's central bank — the fed — hasjust announcedis year. the federal reserve cut its benchmark rate — which affects many loans for households and businesses — by 25 basis points to a range of 1.75% to 2%. we are expecting to hear shortly the man the president calls the "enemy" — the fed chair, jerome powell — will start his press conference shortly. we will keep an eye on that. he's in a tough spot, michelle. because at the europeans are putting the foot to the metal, quantitative easing, negative interest rates over here. wall street saying that he must respond to this. if you are jerome powell, is not a comfortable place to be right now. you look at the european central bank, they are cutting, that is putting pressure on him, wall street is putting pressure on him for more cuts. they want to hear from on him for more cuts. they want to hearfrom his on him for more cuts. they want to hear from his press on him for more cuts. they want to hearfrom his press conference on him for more cuts. they want to hear from his press conference

the fed. let's take a peak at the action on wall street, dow down 40.ut losing ground fas. are his day as the frontrunner numbered. and we have the latest on spacex's newest rocket getting ready to launch into the final frontier. you're watching "fbn: a.m." ♪ i will follow you. ♪ will you follow me. ♪ days and nights. ♪ and we know we'll be. ♪ i will stay with you. ♪ will you stay with me. ♪ the mobile app makes it easy to manage your policy, even way out here. your marshmallow's... get digital id cards, emergency roadside service, even file a... whoa. whoa. whoa. whoa. whoa. whoa! oops, that cheeky little thing got away from me. my bad. geico. it's easy to manage your policy whenever, wherever. can i trouble you for another marshmallow? 2,000 fence posts. 900 acres. 48 bales. all before lunch, which we caught last saturday. we earn our scars. we wear our work ethic. we work until the work's done. and when it is, a few hours of shuteye to rest up for tomorrow, the day we'll finally get something done. ( ♪ ) cheryl: vice president blasting democrats for

we saw the fed intervene in the repo market. seems like wall streetas happy they worked it out. >> charles, real growth produces real profits. the market is looking past the fact that powell provided non-answer answers and concentrate what they do best is make money. charles: david, manufacturing, everyone keeps talking about that being sort of the thing, even the federal lewds to it. the biggest hit, trade, it's a weak area. business investment, those kind of things but we had a good manufacturing report today. industrial production was up pretty good. capacity utilization is up. business equipment from that side was soaring. i won't say much ado about nothing but the demise hasn't occurred yet? >> i think that's right. this really bodes well. the problem really in my view has not been the u.s. economy. yeah there has been some weakness in manufacturing. that has been addressed nicely with some of these metrics. there is some weakness in real estate. it responded great to a reduction of interest rates in july. refinancing pick up with real estate act

the screen this morning. it is maybe a busy week ahead. wall street trying to look past the trade war an the fedmore actionable items including things like nike's results they're out tomorrow afternoon we get a housing health check out as well. and the final reading on second quarter gdp on thursday. durable goods on friday. the bond market scenes after those wild moves we have to calmed down just a bit lately and just three months left in the year, let's try to figure out to decipher what is ahead and bring in your guest of the morning who is chief investment officer of fixed income and portfolio manager at diamond hill capital management. bill, good morning happy monday, happy week what is to you the most important thing now? the fed is behind us trade war has been going on now for nearly two years what is the most important thing to you and your team to focus on right now? >> well, i think probably the trade wars versus the trade truce would be the biggest issue. are we going to get a trade deal or are we just going to get a trade truce? and could we even get an escalation of tariffs from her

the new york feds repo operation since the financial crisis. we will discuss the starting rates threatening to spill over into other corners of wall street.his is bloomberg. ♪ amanda: this is bloomberg markets. i'm amanda lange in toronto. shery: i'm shery ahn in new york. we take you back to the saudi energy minister presser. we have seen the minister sank saudi oil supplies have returned to market, saying saudi aramco will overcome the repercussions of the attacks and be ready for the ipo. we have seen questions over the valuation of the ipo given the attacks on the saudi facilities. the oil minister also saying he sees production at 11 million barrels a day or the end of september. this will be surpassing the level at which they were producing in august, which was only 9.8 million barrels a day. no wonder we are seeing the hit in oil prices. now brent falling to session lows. trading at 5458. you can continue watching the press conference. live go is your function on the bloomberg. let's come back here to the u.s. and talk about the overnight repo rates soaring in a rare midmonth surge. for the first time in decade, the federal reserve

. >>> this is morning on 26789 the fed is expected to cut rates. wall streetke surprises. we'll see what happens and the market's reaction coming up in today's dollars and cents. >> we'll say good morning. thank you for joining us for mornings on 2 wednesday, september 18th. i'm dave clark. >> i'm pac pam cook. thank you for waking up with us. >> a series of storms threatens parts of the united states and the caribbean right now. the storm could cause heavy downpours. the hurricane is forcing schools to close. a little while ago, the tropical depression became tropical storm jerry. it is the 10th named storm of the season. the hurricane is right now a category three hurricane with 115-mile-an-hour winds. melvin made landfall in southwest texas and tore cast to cause flooding along the gulf coast from texas to louisiana. >>> from their weather to our weather. here, it has been pretty nice, and a little t of rain in the santa rosa area. >> north of the golden gate. >> i just had a message they are getting light rain in petaluma. there is something. this is not t

the first time in threers 82. wall street is expecting a quarter percent reduction not a bigger one. the fedtions. as we've heard from the fed chairman and a number of fed officials there is still a good level of optimism, regarding the current set of the xi and some officials questioning whether we need this second round reduction. the fed is maintaining a cautious rate reduction as we've heard from a number of fed officials. there is a good deal of the current state of the economy. some officials outright questioning whether we need this reduction. the big question is what the fed thinks about future rate cut, will jerome powell set the stage for more cuts pointing out the risks that tone will be key to stockmarket reaction following the decision. >>> it was 25 years ago the sit-com "friends" premiered introducing to us monica, rachel, joey, ross, phoebe and chandler. to this day it remains a pop culture anniversary. cnn is reporting tonight friend together 25 years of laughter. we get a preview from a top-up shop in new york city. >> i'm here on the iconic orange couch where the "friend "

came back after a bad april but negative in july and negative in august the idea that the fed sees in this, wall streetd on the other hand, we haven't seen that manifest itself in hiring if you're a ceo and worried, you would think you might also if you're cutting back -- >> not necessarily. >> i'm going to hold on to people. >> hiring the people and hold onto the people to meet the demand i may not invest billions of dollars in a factory but i don't want to lose any of the sales or revenue that i have coming in. >> not every cap ex is a factory. could be machines, software. the intangibles are weak now you look at the other side, the part that's been good, which is the income and spending number that spending number is a little weak 01 the income number is healthy 06 on wages, 05 in overall personal income. the savings rate is elevated the consumer looks to be healthy. i'm not going to be troubled by a month-over-month 05 in july. that could have been boosted, by the way. you had the amazon prime day that's another factor that rachets it up. the fact that you have an august -- the idea is that the con

certain relationship with they have to buy stuff from the fed and they get a guaranteed revenue stream and then they market essentially to wall street so it's kind of like the in between layer of the stack if you will the financial stack the primary dealer stack right so so the primary dealers in this case they were what was going on there so the primary dealers are obligated legally to take down excess treasury supply at the auctions and what happens is every time they take down treasuries they fund those treasuries through the repo market that is coming from money market funds cash balances from across the country so that money ends up in the repo market and funds the treasury. for some reason and the treasuries that settled last week didn't really go well in the funding market and the fed had to step in and do an emergency. 75000000000 repo facility on an overnight basis for these treasury securities repos a repurchase agreement. the most the shortest term piece of paper in the financial system it's a loan that secured by the treasury collateral itself and it's a short term and this is kind of the stuff and this is what's used ba