but what is wrong with yellen. there's nothing wrong with her she had a great track record as the fed head she at first seemed to be wavering to turn the interest rate in the quantitative easing the federal reserve support of the economy around but then she acted perhaps less slowly than markets first wanted but now she got that balancing act right the markets were not spooked they're welcoming that the fed is doing what it's doing she's even starting to shrink the balance sheet now starting october the only problem was she was a democrat nominated by barack obama and i don't think donald trump saw himself being able to confirm or even though he must have liked her policy of having easy interest rates for a long time ok but party affiliation aside how different would powell actually be from yellen. we don't really know what happens when yellen is gone there's speculation that he needs a strong monetary policy guy aside because he doesn't have the kind of economic insight in training that janet yellen had her or her

." ♪ up, in the race for yellen's chair, front runners. tax-cut effort takes a step forward in the senate. the ecb prepares to unveil its next move. data offset by ugly politics. we begin with the big issue, the race for the fed chair. >> leadership matters into the chair is does make a difference. >> i think there are a lot of good names in the list. i don't think without list of names, even witnesses yellen, i don't think the president can make it bad choice. >> the political considerations outweigh the current economic situation. the new administration often just wanted some people on board. >> the interesting part is this discussion is coming at a time when there is the so-called mystery about the low level of inflation. the interpretation is quite important. >> i think they refute jay powell is someone to be more continuous in the policy we have been experiencing. complexll have a very -- accomplished economist as the head of the federal reserve for the foreseeable future. jonathan: joining me is my , head ofbob michele the global fix

want to reappoint janet yellen >> well, i think two things.irst of all, any president would want somebody in the chair testifying before congress who is not going to criticize the president's policies and, in fact, might favor them so if the question from the congressman or congresswoman is what do you think about these tax cuts if janet yellen is there, she may say if they enhance productivity it's good where warsh may say tax cuts are good for the economy and they boost growth they get that. this president who is more likely to say i put this person in, rather than reappointed -- i think reappointment would be seen as a defeat >> what about the thoughts of neel kashkari being in the mix >> that's not on >> not on. >> that was a non-starter. i guess a wealthy well-respected investor brought that up i don't think that's happening i reported, and i was able to say, he's not even under consideration. >> you made a case that low rates and high stocks, that's what president trump wants if he wants that, why not just stick with yellen? the stock ma

yellen heads to the white house. your pm rising in spain. the prime minister plans to take another step. engine keepsh delivering. gdp growth 6.8%, driven by infrastructure spending and exports. from new york city, good morning, good morning. daybreak."oomberg: let's get you up to speed on moves this morning. futures are softer, down one half of 1%, off of a four-day run. another record high close. bit in treasury. eels are lower by some basis points -- he yields are lower. at some euro strength to spike the crisis in spain, 11820 six. >> let's look at spanish acts -- assets. tenets of 1%8 -- -- a slight amount less than 1%. yields up by one basis point. sterling here, weaker you take retail sales, lower on the day. he wants a little risk off bid. gold, the to look at one to watch. david: it's time now for the northern -- morning brief. outeds -- claims will be 8:30 this morning eastern time. 9:30, eu leaders will meet in brussels and discussed illegal immigration and taxing digital companies. president trump will injured -- interview janet

hanging over the position of head of the fed he hasn't had kind words for the current chair janet yellen her term expires in february and there's speculation trump will appoint someone else who favors foster pace of interest rate increases. there's no business like show business they say but what about the business of running the world's biggest economy it's a blurry ninety washington u.s. president donald trump clearly hasn't forgotten the tricks of the trade honed on his show the apprentice in an instagram video posted on friday he proved he was a man well versed in the art of building suspense people are anxiously awaiting my decision as to who the next head of the fed will be it will be a person who hopefully will do a fantastic job and i have somebody very specific in mind i think everybody will be very impressed but most of bordley i think at the end of eight years you really will be abreast because things are looking good might that very specific someone winning the keys to this prime piece of real estate the favorite jerome powell the former investment banker republican is alread

do houset issues conservatives have over gl and -- over yellen?ouse conservatives have been trying to rein in the fed for years. there is the audit the fed movement personified by rand paul. some people on the far right would get rid of the bank altogether. they have long been hostile to the fed and janet yellen as the obama appointee, leading the fed. powell, also issues with him from house conservatives. not houset -- alex: conservatives, more the steve bannon wing of the publican party. a guy who works with bannon said powell is no better than yellen. ,hey were both obama appointees but i think powell is acceptable to a lot more republicans than yellen would be. vonnie: it is difficult to know what the criteria are going to be, in the mind of the president. he wants low interest rates and he wants somebody we can trust and most of these candidates will likely carry that out, they are not supposed to be political in any way once they get the job. alex: they are not. it is a academic job, it is supposed to be a phd economist who acts in the best

a little excited only heard janet yellen was back at the white house.urns out it was a regularly scheduled meeting. doesn't mean you won't slip in some questions about what you might do if her term is extended? alex: that they have to have this meeting today? they got my pulse racing. it looks like much ado over nothing as it turns out. we think. it seems like they would not be able to avoid talking about what everybody is talking about this week. there was a vehicle to get tax reform done. doesn't make it more likely the tax reform gets done in 2017 . alex: is the first and easiest step. there was not much doubt republicans would pass a budget allowing for a tax overhaul. there are much harder talks to come about what goes into this bill and how they navigate all the differences, just in the republican caucus much less bringing in democrats. vonnie: we will leave it there for the moment. we will come back to you later on this friday. thank you. he is our white house team leader. for more on the markets and how they have been reacting to all of this, i

videos of federal reserve chair woman janet yellen and e.c.b. head mario draghi are readily available so i want the research to cover them too. from facial expressions to fiscal intentions. this image of the bank of japan governor has been assigned one hundred percent happiness racing but what exactly that says about his next policy decision remains unclear after all looks can be deceiving. we're going to switch gears now allegations of rape and sexual assault against film director harvey weinstein has led to women across the world opening up on social media they want to make it clear that sexual harassment is not just limited to hollywood it's an everyday occurrence in the workplace. women power in berlin the age in lovelace conference office women in i.t. the opportunity to link up and manages founders and programmers are in attendance their aim to support each other and strengthen female networks the tech world is male dominated women have to be assertive they sometimes witness comments that a downright crass. isn't here and i don't believe t

yellen might be there longer than we think.ery important that is happening today. >> if he doesn't want yellen but if he wants someone like yellen, jay powell is his guy because jay powell supported low interest rate policies but he is republican. not a democrat. and, he is got slightly more deregulatory bent than janet yellen does. if she loses the job, loses it on regulatory issues, not interest rate issues. trish: we're watching all of it. great to see you. >> appreciate it. trish: white house press secretary sarah huckabee sanders expected to take questions any minute from the media now. today is deadline for cities to put in the bids for amazon. they're competing why their town should be chosen for the new company headquarters. that deal could bring 50,000 new jobs. jeff flock in chicago, which is fights hard to land this deal. he will be with us next. he will tell us what is up this week. our recent online sales success seems a little... strange?nk na. ever since we switched to fedex ground business has been great. they'r

mucha trump requested a janet yellen -- lunch with janet yellen.he fact that she wants to raise rates is something that donald trump with take a little caution about. of goldmanident sachs, gary cohn. he knows capital markets. he would be a good choice. by after the charlottesville -- riots, he criticized what president trump said. he is still in the running though. was an advisor to the white house from 2002 to 2006. say kevin knows politics. he is an insider. he knows how all of this works. been friends with donald trump for years. married to -- maybe that is a plus for kevin warsh. investmentbeen an anchor. he knows banking very well. something sexy about how all. inspires -- powell. he inspires confidence. he worked for republicans. want the fed to follow a rule. john taylor is all about that. much ae is not so potential republican insider as someone like kevin warsh. all the names are there. it is very interesting. we will know pretty soon who the next fed chair might be. this wild card twice as well. i have a funny feeling you will be talking

he says janet yellen would not be a great successor to janet yellen. oil has traded near the highest close in three weeks as exports from northern iraq fell by more than half amid fighting between government troops and curtis forces. -- kurdish forces. is in a comfortable range and would not rise above $60 a barrel without some kind of disruption. inc. markets have priced in some and we expectent to see prices may be spiking up toward extinct. -- up toward 60. >> and its 30's anniversary of black monday. october 19, 1980 evan, all the ringgit -- single biggest day stop market crash. the day marked a divide between old and new markets, being the first significant instance of computer-driven trading running amok. global news, 24 hours a day, powered by more than 2600 journalists and analysts in more than 120 countries. you can find more stories on the bloomberg at top . manus: always good to see you. that's get a market update from hong kong. afternoon, what's happening in new zealand, stocks trading at a record high and the kiwi dollar getting hamme

what happens to high-yield if janet yellen's inflation becomes less than transitory?ey go up together? how does that dynamic work? rachel: historically high-yield has had an inverse relationship with treasuries. the economy has already been strong, and spreads are tight, so there is not a lot of room for spreads to go. and furthermore, we think that rising rates is going to tighten financial conditions, so we think spreads are likely to leak wider. not taking away the total return of the asset class, but slimming it. tom: mark, i know everybody at pimco eats kale and you haven't been to mcdonald's in three years, help me. we saw the mcdonald's auction deal. when a aaa blue-chip corporate like mcdonald's comes, how does that deal get done? how do you get the paper you want? mark: well, tom -- and i haven't eaten fast food in 10 years, so probably not biggest mcdonald's the fan out there. obviously, investors are out there competing for supply. what is happening right now is the issuer has the advantage because the financial conditions are so easy. many of these corpora

fed chair janet yellen is said to be back at the white house. according to a person familiar with the matter. -- bob michael from jpmorgan marilyn watson from , blackrock and michael collins from pgim. looking at the situation, we barely discussed fed chair janet yellen staying on as fed chair in the previous segment. why? bob: i think her time has come and gone. i think she did well in the aftermath of the financial crisis helping to continue , bernanke's policies. i think the administration feels they need a breath of fresh air to come in particularly if , they're trying to pull the rest of the republicans along with them, and also trying to bring the rest of congress with them. jonathan: for me i thought she , signed a resignation letter off the back of the jackson hole speech which she defended the regulatory regime. you put the emphasis on deregulation. is that ultimately what could sign a resignation letter as well? mike: i think so. she has pushed back pretty hard on trump's emphasis on deregulating the banks. in her defense, that is the

federal reserve currently that post is held by janet yellen by the time expires in february. she had recently tightened the fiscal reins after a period of extremely loose monetary policy triggered by the financial crisis of twenty nine yellen could theoretically continue in the job but it's highly unlikely that president trump will ask her to stay on he said on friday that he had quote somebody very specific in mind somebody he would say he things everybody will be very impressed by so who is it going to be the leading candidate is your own power a former investment banker who is a member of the fed's governing board already markets would welcome his nomination believing he would continue with gallons fiscal policy something that would please democrats as well despite the fact that he is a republican also stanford economist john b. taylor may be considered but his chances are slim insiders believe he would raise interest rates too fast so why is this job so important in the world of international finance put that question and a few others to your cause president of the europe

here that ms janet yellen. disagree with the president in terms of rolling back banking rules since the financial crisis. then there is gary cohn, the head of the president's economic - he gary cohn, the head of the president's economic- he was president's economic council. he was considered the favourite, but their relationship went south, after he disagreed with the president's response to the violence in charlottesville. response to the violence in cha rlottesville. so response to the violence in charlottesville. so who is left? john taylor. he is a stanford economist and always on the republican list of potential fages. but never gets thejob. republican list of potential fages. but never gets the job. —— republican list of potential fages. but never gets thejob. —— fed chairs. he is a poor clippings that interest rate should be lowered despite inflation. next isjerome powell, a member of the federal board, and has expressed on the —— and has its roots in the private sector. and then there is kevin warsh. he

yellen, taylor, powell or a wildcard? kathleen: yellen. joern: powell. jack: powell. is it the beginning of the end of the bond bull market? kathleen: yes. joern: no. jack: yes. jonathan: next week we could get a first rate hike in over a decade from the bank of england. we have heard it before from governor carney. he has given us some forward guidance in 2014 and 2015, it never came. do we have an unreliable boyfriend or the first hike in over a decade in the united kingdom? kathleen: yes. joern: hike. jack: hike. jonathan: thank you very much for joining us. kathleen gaffney, joern wasmund and jack flaherty. that does it for us from new york city. we will see you next friday at a different time. 11:30 a.m. in new york. that will be 3:30 p.m. in london. so look out for that and remember, next week before the president goes on his trip around asia we should have the next chair of the federal reserve. will it be chair yellen, will it be governor powell or will it be john taylor? i look forward to bring the news on bloomberg real yield. from new york city to our audien

you have jerome powell and yellen. is probably much taylor.han warsh and if taylor is nominated, that is a big shock for the market. jerome powell is less of a shock . the dollar a little bit softer but not much on that announcement. jonathan: if you look at the position versus the federal reserve seats next year, is this hawkishness as opposed to dovishness? whoever comes in is predicting higher forecasts than the market currently predicts. jordan: that is absolutely true, and you seen a significant difference between the. lot and what markets are pricing -- dot plot and what markets are pricing. i think we are at the point where in terms of economic activity or in terms of inflation, the market will be very sensitive to assumptions not even over the course of the next six months but from six months until 18 months. whether we potentially do see the fed go at a faster pace than the market is currently pricing. i would tend to straightly abstract from whether it is powell or yellen or perhaps john because he is not qui

what do you know about the likely successor to janet yellen , including janet yellen possibly? kevin: i can tell you that john taylor and jerome powell have emerged as the two potential front runners in the list of five, five or so potential nominees that president trump and his staff are looking at. the remainder being janet yellen who met with the president yesterday, as well as kevin warsh and gary cohn. if you look at this a bit more broadly, in addition to steve working on mr. cohn setting each choice, vice president mike pence has emerged as somebody who has the president's ear on this potential pick. jeffelationship with hester ling, who is a fan of mr. taylor, as well as their economist in the vice president's office, have been working closely on the search as well. david: what do we know about timing? kevin: the white house has been very reluctant to name a certain day when we can get this. they have just said soon. what we are hearing is this will be announced probably most likely before the president embarks on his asia trip in over a week and a half. he find a singl

summers and yellen, both the democrats.is good to be reminded, it happened in a certain extent, before. betty: we tend to have short-term memories. ouring us to dig deeper, bloomberg intelligence chief u.s. economist. i know we -- you are looking at this interview with charles plosser. in terms of who is in, who is out -- we talk about this all week long. we have charts, it will go up 10 basis points of it is taylor -- all of this stuff. does it matter in the short-term? >> just to refresh our short memories, it was contentious when it was summers and yellen. was not as into the whole notion of reality game , america's next top fed chair was not the modus operandi. he was looking for continuity because it was a much more fragile economy. they had to move in a smoother fashion. now it will be past the eight year mark in the cycle. the economy is firmly able to stand on its own two feet. we haveite resilient, seen an impressive recovery from the hurricanes, natural disasters. chair will have significant consequences for the m

if you look at what yellen said in her q&a and recent speeches. she is sounding increasingly confident and i think that is because the labor market is doing well in the u.s., the consumer is healthy, financial conditions are easy, and the global economy is doing better than a lot of people expected. this is giving the fed confidence that they can take a step back from this large balance sheet. the market has mispriced the fact that the fed will go a little faster than most expect. the market for december is priced at about 60% right now, and cumulatively until the end of next year, less than two rate hikes. you are going to see a little more aggressive fed versus what markets are expecting and therefore, the trend to higher rates is likely and we will likely see the fed move and also other central banks over time start to step away from the support for markets. tom: i want to bring this in, published on friday. he really pushes the fed certitude. the market is greatly overestimating the votes and the commitment to hiking at the fomc, and then he t

so ben talking through the various candidates, no sign of janet yellen among them.arkets have responded well to the four years of janet yellen, if you see the challenge she had on hands, the us economy recovering from its biggest financial crisis in 70 yea rs, biggest financial crisis in 70 years, she started the normalisation of monetary policy, bringing up interest rates, and this month is of monetary policy, bringing up interest the ;, and this month is of monetary policy, bringing up interest the balanceiis month is of monetary policy, bringing up interest the balance sheet, th is of monetary policy, bringing up interest the balance sheet, the $4 reducing the balance sheet, the $4 trillion held by the federal a skilful reserve. so that is a skilful balancing job, but she does not appear to be currying favour with the president. so if she is not nominated again, who do you think is the most likely to take the job, the most powerful central banker in the world ? most powerful central banker in the world? i thought the introduction was really good, it laid out the

>> but first, janet yellen defends the fed unconventional methods.s is bloomberg. ♪ ♪ >> the race to be the next fed trumphas not been won, as praises his short list of candidates that makes it clear he is not made up his mind. donald trump spoke to fox business and he said a lot of things, it was a long interview. anything we didn't know? taxleen: a lot of it was on reform, he asked a lot of things anybody would ask. he is broadly speaking about five people, jay powell, janet yellen, and of course john taylor. what he said was exactly that, i am looking at a couple of people, i'm also looking at janet yellen, i like her a lot. three people in total he says he is looking at. also, a couple of others. presumably, the three he is looking at, powell, yellen and taylor, and the other two are kevin warsh and gary cohn. asked about , he says it isor in my thinking. a couple of other things are in my thinking, too. treasury secretary steve mnuchin is pushing for powell. mike pence likes taylor. wall street thinks powell is the most logical. it's look at 320

if it is not yellen, my pick would be powell.now him, he is incredibly smart and a terrific listener, which i think in a central bank leader is essential. and he does not jump to conclusions. he will think things through. he has been working with the fed staff for years. towould be the closest thing having the same leadership in place, which from a market perspective can be really important. in the past the chairman had to fight to get the respect of traders? kathleen: continuity is important. you are going to stick around. were taking a look at the people's bank of china governor, he also spoke at the group of 30. he admitted that chinese debt is a problem. stay with us. our economist is staying with us as well. we will talk china next. this is bloomberg. ♪ haidi: the people's bank of china governor has offered praise about china and a warning, he spoke to an audience in washington over the weekend that corporate debt is a concern but he is encouraged about the transformation of the economy. we have a chart you need to know. all

yellen,n, walsh, janet and glenn hobart and a richard davis. >> i think chair yellen is still bettern even odds for the fed chair. she would reflect a continuity of the policy in place that president trump has said he likes her and admires her track record. i would see yellen, powell, maybe worse, but he might be -- might be toobut he dovish. >> potential governors who would be dovish on interest rates would pullback qe and get the curve to widen out a little bit, which would be good for markets. interviewingarts these guys, he will go with one who is anti-regulation. the house passed their budget resolution for their fiscal year, taking a step to enacting tax reform. it allows the republican tax bill to be passed with a simple majority, protecting legislation from a democratic filibuster. how does the resolution become the easy part of this legislative process? >> you are absolutely right because now it is the heart part, trying to build consensus among republicans on a host of tax related issues, whether state and local reduction or any other issue in particular in terms of how the

he met with janet yellen at the white house.oving closer to the decision on who will be the next fed chair when yellen's term ends in february. editor, anda senior our guest. bonds even rally the bit. reporting steve mnuchin is pushing for jay powell. the middle of the road, follow janet yellen. jay powell, what type of fed chair would he be? choice isell interesting but underscores a point i have been making, which is, from apr policy standpoint in the fed funds rate, it really does not matter very much who he chooses. the degrees of freedom of movement is fairly small. the next chairman, the next crew is, is in the regulation, deregulation, reregulation of banks. it really signals that is the direction they want to go. the impact of quantitative tightening, is really going to be determined by how much capital the banks continue to they'rehold, which holding a lot of, and how much they're willing to let go. kathleen: same question to you. saying, monetary policy come a rate hikes, they are on a path, they will gradually hike. w

we know that howell and yellen are on the dovish side of things.er flattening of the yield curve would mean that the market is feeling warsh or taylor kennedy as being hawkish -- candidacy as being hawkish. four-time and memorial. if you have that flattening of the yield curve, it tends to not be supportive. question.uick we are talking about what would happen to markets depending on whether the president appoints or nominate a hawk. how is he going to do this? finalists to the city and would tell them who would get the nod? >> you can expect drama, you can expect this reality show type of environment to continue, even when it comes to monetary policy, which is not necessarily seen as an entertaining part of the presidency. you can expect them to drag it revealedake sure it's with a lot of drama like you did with the supreme court nomination. stay tuned, you can expect a very dramatic unveiling of the name. julia: we will stay tuned. thank you for that. scarlet: let's get you to today's options insight, we are going to check in with julie hyman. ju

warsh, yellen, cohn, and powell are all in the running. the divide between madrid and barcelona continues to grow, sending spanish funds lower and much lower. we begin with a big issue, wage growth surging. robert stan on the fed's next move. >> this is confirmation we are getting real wage growth. >> 2.9% wage growth is the headline. >> i think that is good for american workers. >> looking at the wage growth, you are looking at the unemployment number, which is the bright news here. >> remember, janet yellen said in a healthy labor market wage growth is between 3% and 4%. so we are just about there. >> as long as wages begin to rise towards 3%, they certainly are. and i think the fed is a slamdunk in terms of raising rates in december. >> this confirms a story that has been permeating the market. the data is strong enough and the fed has said they will tighten, therefore december is pretty much in the bag. >> i think people will rightly interpret that the fed can move. they will go in december. we think two and three times next year. jona

mark: it would be a good thing if yellen is reappointed?w: that is what we're seeing in these developments. mark: give me the impact on bond markets. what does it mean for yields? as you give your answer we will look at the 10 year and some key levels in the last couple of days. quite: the walsh one is in the more be i.s. school of thought. weighed --lobally way to lose and accommodative. there is a potential large regime change. the taylor one is a bit overemphasized. than much more pragmatic what is rule suggests. he's alluded to that in recent statements. course, is more continuity and more to say. how is the one that is a little order to place. everyone is after the 2.4% question. if it significant? or is it another psychological level? do we make too much of this? foreign technical analysis, these are very important things but in the grand scheme of things, think about this. of you the trillions theidity -- of liquidity fed is put into the system. look for the balance sheet will be in two or three years time and then think about the 2.

david: speculation heated up janet yellen.or an interview with vice chairman stanley fischer. in his exclusive conversation, he did not comment on specific candidates, but he shared insights on the qualities the job demands. >> do we need a fed chair like chair yellen who has read maynard keynes 1936? we have a few candidates who have not gone through those key chapters. >> they should read it on the whole book. what happens in the book is what happens when the interest rate gets too low. it is worth reading today what is in there. >> can we have a new set up with someone like william miller and nonmonetary fed chair who has a vice chair of your capabilities, or chair yellen's capability, or do we need to have that monetary expertise where crisis is shocked. ? terms in somemy places that having been basic theoretical knowledge and experience increases your self-confidence about what you are doing. is it essential? i doubt it. there are very, very smart people who could figure this out in many ways. but is it helpful? yes. enjo

a shorthand discussion would be yellen-like. taylor would have more of an impact, as a well-known phd economist. he could influence the board in a lot of ways. he could have an influence on regulation, research, basically, sort of, the direction of the board going forward. as we were just saying, powell keeps wall street on the same course because he is not likely to deviate. that makes people happy. maybe that is what trump is taking. mark: the discussion of double-header is being put forward -- maybe you have powell and taylor in the top two positions. could that be on the table if powell becomes fed chair and is nominated, is tailor then in the running to be vice chair? michael: absolutely, and donald said he is considering a package and specifically mentioned the two as part of the package. we do not know who would be chair and 2-wood be vice chair, but if powell were to be the chair -- and who would be vice chair, but if powell were to be the chair, it makes sense to have taylor be a strong number two. as vice chair in term

yellen: it is a concern. it is important for central banks like the federal reserve and others that have an implicit numerical target, ours is to present, to amass a good track record in achieving and obviously, there will be deviations. headingshould always be towards it. it is of great concern that we have had five or six years in which inflation has persistently undershot our objective. thatcontinue to believe inflation expectations are well anchored and consistent with our 2% inflation objective but that is something that cannot and should not be taken for granted. i must admit that there is some evidence that inflation expectations could have slipped. comes from household surveys like the michigan survey measuresmarket-based of inflation compensation which have come down notably. market-based measures are affected by things other the pure expectations about likely path of inflation. liquidity premiums in particular. but they have come down. it is of concern. and we definitely want to achieve our 2% infla

yelena: i think he is next on the list after chair yellen. if she is disqualified because of her opposition to deregulation, which she clearly stated at jackson hole, i think jerome powell has probably the most qualifications to get the job. shery: how about pushback from republicans? conventional republicans like john taylor. how is he doing? yelena: i think low interest rate policy preference would also disqualify the hawks, and obviously if you apply any iteration of the taylor rule, that would almost automatically require higher interest rates. that is now expected. shery: how will this fed chair race play into the tax reform, the fiscal options the administration has? yelena: it will have to interplay. if tax reform increases the speed of the economy, the potential growth of the economy, the fed will not necessarily need to raise rates. but if it is a simple sugar high tax cut, the fed will probably have to do raise rates. shery: thank you so much for joining us. seniorrg intelligence economic economist -- economist. vonnie: let's check

how little bit on this who knows it also coincides with president trump possibly interviewing janet yellen for the fed chair job there's been a lot of talk of in recent months about will he won't he will she won't she her term expires as we know in february if you're a betting man what do you think. what would you bet on her taking it her even receiving the offer well the new guy gary condit like mr cohn i think the chair yellen has done a really good job but she has the distinction which i think the president trump doesn't like of being an obama person and he seems to like you dislike anything anything. and so i think that's

will it be chair yellen, governor powell or john taylor?ard to bring the news on bloomberg real yield. you are watching bloomberg. ♪ who knew that phones would start doing everything? entertaining us, getting us back on track, and finding us dates. phones really have changed. so why hasn't the way we pay for them? introducing xfinity mobile. you only pay for data and can easily switch between pay per gig and unlimited. no one else lets you do that. see how much you can save. choose by the gig or unlimited. xfinity mobile. a new kind of network designed to save you money. call, visit or go to xfinitymobile.com. ♪ vonnie: i have vonnie quinn. julie: welcome to bloomberg markets. ♪ vonnie: from bloomberg world headquarters here are the top stories on the bloomberg that we are following. tech stocks are coming up on top today. this after strong earnings from alphabet and amazon. that has been a boost for the nasdaq and set the stage for a $60 billion tech rally. is castingrce giant a cloud over the health care industry. the company has received

♪ anna: yellen's inflation.nflation is says ticking up soon, keeping plans to raise rates gradually. >> my thumbs as these will not persist. i expect inflation to move higher next year. most of my colleagues agree. iraq since forces. catalina told to clarify its independence austrians tilt the eu's political balance to the right. manus: breaking the stalemate. theresa may makes a visit to brussels today to personally intervene in negotiations. ♪ anna: a very warm welcome to "bloomberg daybreak: europe." it just is going up. we gotten a bit frisky. welcome back. anna: and is willing to do with me. it is the world's biggest cryptocurrency. we crashed it through a thousand bucks in 2013. 56 day from two to three. six days from 3000 to 4000. the only thing that impeded bitcoin was the possibility that the chinese might crackdown on cryptocurrencies in september. good they go for it again? i love jv dimon. he said he would never talk about again. anna: how long did that last. they will pay the price according to the

the trumpest case for janet yellen for trump's own sake, the savvy move would be reappointing yellenlmost nothing can hurt a president's popularity as a weak economy can. obviously he's basically saying, if it's not broke, don't fix it when it comes to central bank policy and the economy >> it's funny, we're so in sync i picked the same must read but a different quotation. here's what he adds. what is the single biggest exception after he goes through a string of controversies that trump is dealing with, everything from russia to an approval rating in the 30% it's the economy it's doing just fine it's not booming, but it is growing steadily with a 4.2% unemployment rate as trump repeatedly notes, the stock market is booming. yellen is the most influential policymaker and her fed has creat played a role in creating today's economy. you wonder whether the trump administration will think along those lines or whether as steve mnuchin said yesterday, the stock market is booming because of them, the expectation of corporate tax cuts >> there is the feeling that the president would like to