peter: janet yellen was a low rate person. turning out to be not an aggressive rate hike are either. you can imagine the different choice for the fed might have actually been pushing the board of governors and the federal open market committee to a faster cycle of rate hikes. david: stay with us. we want to bring in grover norquist, founder of americans for tax reform, welcome. grover: good to be here. david: let's get the taxes down, but is there a connection potentially in this sense that the government just borrowed a lot of money to make the tax cuts possible. it is cheaper to pay it back if you have a weaker dollar. grover: i do not think that is what is going through their minds. we have actually seen growth increase enough that if it continues over the next decade, we have more than paid for the tax cut. and youllion tax cut, only have to grow at 2.4% instead of 2% for the next decade for it to break even. so it is not what they will be reacting to it the white house. david: let's go at it in a different way. if you wan

trump himself who appointed germany powell for the position of fed chairman his predecessor janet yellen wanted to continue to work in this position but did not extend her contract you know it's another unwritten law commenting on the currency as a u.s. president but just how we could dollar does trump actually want. well for the moment and he got what you want at the dollar went down to a true week a low actually the euro gain strength that is right now is the level of our one fifteen dollars usually when we have to scenario shares here at the docks go down this way but not today analysts don't believe that this trying to set to continue and even though trump believes that the we dollar is better for the u.s. economy also exports in the united states are warning that this could have a rather negative effect for the economy and the boom that we have seen lately could be stopped with a very weak dollar and where the boom could be over you heard from dana cope in frankfurt thank you. the united states and china are preparing to meet in washington this week to talk trade tariffs is making d

yeah exactly i mean when he decided to nominate powell and let janet yellen the previous has to go donald trump could not praise his candidate enough and now this what he has said is really like an open criticism of his own candidate by the way powell was way more careful today he did not criticize the u.s. president openly trump is war you have to remember that that for interest rate hikes could harm the boom off the united states that we have seen lately and he wants the dollar on a lower level now just some weeks before the mid-term elections in november trump needs mostly one thing and that is good half line and trump might be a good deal maker or a good real estate guy but many economists actually say that the weaker dollar on the long term would not be even good for the economic growth and right now it's looking good in the united states unemployment in the u.s. at a record low of only three point nine percent just the inflation rate with one point nine percent is not making exactly the requirements of the federal reserve ok but the dow is also looking good today what else can we ex

jeremy powers as the new hands off the federal reserve after deciding that the contract of janet yellen the previous answer of mr powers would not be extended now we know that donald trump wants a weak dollar but how weak exactly. yeah exactly you already said throughout his campaign that he is in favor of a weak dollar and for the moment he got what you wanted we heard the dollar has been going down the euro has been stronger but when you talk to experts here also on the trading floor in frankfurt they don't think that this is really going to stay for a long time as a result we don't really see the market movements because of that usually when we have a strong euro or the very export oriented blue chip index is going down but even though donald trump has also made a statement that he doesn't think that there is going to be an agreement very soon happening with china on the trade conflict traders here today in frankfurt are not very concerned. that a group in frankfurt thank you so much. germany's employment agency says migrants are being well integrated into the country's job market an

equal the one up when you're on time this commitment when you tell it up when yellen if they were to see me at the west. i macs guys are one for my guide to financial survival this is fun it's a device used by professional scallywags to earn money. that's right these hedge funds are simply not accountable and we'll just move on to them. totally destabilize the global economy you need to protect yourself and get in for god's guys are. not enough and it's really. a levels from. the community. people we are based on and on the road look out for me oh look out is all bible going towards him. that's. right. she's going to. use your money doesn't. give us all that. but if you don't. know we're going to this. doesn't cut does it also toppi my life. i see him on have to die. for a man or sitting in a car when the fifth gets shot in the head. all four different versions of what. one of them is on the. there's no way there's no possible way. the. stronghold. of the. norway claims she was hit. by. a scottish university. they want to. debate over the limits of freedom of expression. people. make

he says the remaining residents are being threatened with eviction so that yellen can build new tourist benches. you know yachting hours ago and i thought again what happened in city gone as a disaster capitalism they took advantage of the situation after the tragedy with many lies and they are the only one benefiting and they left the people here with nothing and they are only thinking of themselves it may last. a month before high on struck a government agriculture scheme granted possum's of farmland to more than two hundred households the result company city code contested. the decision in court because it would have forced them to hand over a third of their land. but when the typhoon hit it changed everything we have for it alleges that with almost all the homes and buildings destroyed city and the jala had the real estate opportunity of a lifetime. you can see a typhoon coming and you know it will destroy you in a day but you can't see how very you're going to destroy you about in america it's difficult to fight these people in my own experience that they have a strong connection w

equal the one up when you are on time this commitment when you tell it up when yellen if they were to see me at the west. max keiser financial survival guide stacey let's learn about the bailout let's say on the strike that. the fight was thank you for. the story that's right if you looked at slavery. that i'm going to get out how i don't know that i'm not out of luck though they're not that i'm not out of the money out of the money the daily when i get out of germany. this was a good time to. try to move there i. know not that i want to give up i did not want to leave not why not. for x. chanting of the old people we believe to be here. oh my kids i don't want the bubble so john what are the other moment i thought of mother having little accusers are there a lot of them on the way to my be old enough to want the people i don't want to put out as a moderate party when i don't know them other blow that it. is . capable of producing chemical weapons syria's u.n. envoy gives a warning about extremists in the country but russia's fear of a false flag attack is brushed aside in washington.

the president picked powell to replace janet yellen last year. >>> on wall street, consumer-focused companiesy higher. some of the nation's largest retailers posted the biggest gains. macy's led the way, gaining over 6%. kohl's rose over 3% and home depot climbed 1.2%. overall, the dow jones industrial average gained 89 points. the s&p 500 finished six points higher. tech companies lagged behind the broader market, holding back the tech-heavy nasdaq composite. it ended up gaining four points. >>> volkswagen is reportedly recalling 700,000 cars due to a roof lighting defect. the recall affects the tiguan and touran models, according to a german trade magazine. humidity can cause a short circuit in the roof's light strip, which could potentially set the car on fire. the affected cars were sold worldwide. >>> health insurer anthem is partnering with walmart to expand access to over-the-counter medicine for seniors. starting next year, their medicare advantage customers buy the drugs for reduced rates at walmart stores and website. health-related items such as first aid supplies and support brace

first things first, back of the campaign trail, he had a go at janet yellen, talking about low interestt has been quite surprising that for 18 months he has said nothing of the timing of this is absolutely key, one of the reasons why the dollar has been so strong is interest rates are going up, currency strong is interest rates are going up, currency more strong is interest rates are going up, currency more attractive from a yield perspective, and right now, the dollar has frozen, so everyone is thinking, notjust the dollar has frozen, so everyone is thinking, not just against the chinese currency but also against the euro. he is concerned that the hike in interest rates is sending it even higher. do you think timing is anything to do with the central bankers summit that takes place at the end of the week? is it a bit of a coincidence, and reuters journalist were just probing? timing is key, both from jackson, because this is the annual symposium that takes place when the fed get—together. takes place when the fed get-together. bankers as well. in particular, getting real steer, as to w

jeremy powers as the new hands off the federal reserve after deciding that the contract of janet yellen the previous test of mr power would not be extended now we know that donald trump once a week dollar but how weak exactly. yeah exactly you already said throughout his campaign that he is in favor of a weak a dollar and for the moment he got what you wanted we heard it the dollar has been going down the euro has been stronger but when you talk to experts here also on the trading floor in frankfurt they don't think that this is really going to stay for a long time as a result we don't really see big market movements because of that usually when we have a strong euro the very export oriented blue chip index is going down but even though donald trump has also made a statement that he doesn't think that there is going to be an agreement very soon happening with china on the trade conflict traders here today in frankfurt are not very concerned. in frankfurt thank you so much. and daniel just mentioned that a trade conflict between the west and china and the two countries are currently prep

this janet yellen of the fed, the fed is doing political. by keeping interest rates at this level. >> now president trump wants the same easy money policies for himself. the fed did not comment. historically, the presidents do not talk about the fed. powell reaffirmed that issue last month. >> we do our work in a strictly non political way based on detailed analysis which we put on the record transparency tly. >> they are keeping the economy from overheating. experts worry it may be overs m overstimulated by government spending and tax cuts. >>> breaking overnight. a nationazi labor camp guard han deported back to germany. an order of deportation of jakiw palij. he became a u.s. citizen in 1957. he concealed his nazi service saying he spent world war ii working on a farm. >>> sean richard christie of pennsylvania was last seen sunday night in cumberland, maryland. he is accused of posting threats on facebook against the president and prosecutor in pennsylvania. the u.s. marshal's service is offering $20,000 for information leading to christy

he could have cited then bernanke or janet yellen.nstead he went back to greenspan, specifically mentioning how he allowed the economy to grow faster than people thought the economy was capable of, and it worked. that was a dovish element in his speech, no specific fact, but a stylistic element. david: one thing that may restrain the economy and allow chair powell to run it hot is trade. this subject came up in the last fed meeting, in the minutes. does that give permission to go hotter? gina: that is a two-sided risk. steps could trade slow economic growth. costsspats are pushing up and that could raise inflation above the 2% target. they have said, we are going to be willing to look through some of this, but it will be an open question. david: the dollar actually went down. it regained a fair amount of it but it gained a fair amount. why did they see this as a dovish move? jeanna: i also saw it -- gina: -- peter: i saw it being a slightly dovish speech. he is not beholden to the philips novel -- model and may -- might be me willing

when janet yellen talked about the possibility that they could let wage growth run, they could let itove higher because labor share of income has fallen so much over the last several decades. what that meant was that wage growth could go up without inflation necessarily having to go up. maybe they should let that run. paul mcauley deemed that labor share of thing from -- income rich's ratio. the fed andng to his ratio shows that labor has not recouped that share of income in this cycle. the question is, does that end up play a role in the fed's decision-making. it seems they are entertaining that and that is the struggle in terms of the fed debate. the focuslean towards on inequality and helping alleviate issues or should we stick with the inflation centric conservative approach. some of these are actually board members yet, are they? there is a bit of a question over whether martin goodfriend will be confirmed. his confirmation in the senate did not go well. is of the main reasons why he was adamant about this idea that this central bank needs to be focusing on inflation. that is the

i always had this sense that yellen drove things more. but given what haula saying seems to conflict -- what powell is saying seems to conflict with the fed is saying previously, i'm wondering what the fed will shake out over the next couple of meetings? michael: i don't think it changes a whole lot. the fed has been divided on how fast to raise interest rates. divided along the line 25 basis points or so. when you look at what j. powell as those fede same officials had been saying, the economy is strong in the short run inflation has moved up to our target. we can raise rates to what we see as a normal level without slowing growth. you're still accommodative, even if we don't want to say that anymore. we're still below the neutral rate. so, it isn't really a strong debate about whether to keep raising rates at this point. theye data changes, that are going to have a much more in-depth debate about whether to continue. i think powell is signaling he sees the economy pretty much the way the fed has seen the economy for the last year or so.

i think jay powell brings a different perspective than chair yellen i think for powell the fact thats less models base, he wants to see evidence tells me he will be gradual in raising rates. he will not be raising rates significantly. >> still two more rate hikes this year? >> two more this year, and projections for 3% growth and 2% next year, we'll probably get four more next year. >> all right thank you very much. steven freeman, appreciate that. >>> now to today's top corporate story. tesla tapping some top talent as it explores to go private. landon dowdy has more on this story. >> tesla top talent, say that three times. elon musk announced on twitter he's working with goldman sachs and a buyout firm, silver lake, for the buyout musk said i'm excited to work with silver lake and goldman sachs as finlt edancial advisero take tesla private sources say silver lake has not been hired in an official capacity and is not currently discussing taking part in a potential deal as an investor. early on monday musk wrote a blog post on how a take private deal would work. he said the head of s

one thing that was very interesting in his comments, which is not dissimilar to what chair yellen andnanke did, is give historical context. he did things like what is the natural rate of unemployment and how has that developed, and looked very closely at the 1970's and 1980's, suggesting why this is dovish, we will probably not go back to that kind of era. if we look at where the natural rate of unemployment is, it is a little lower now so we do not have to hike as quickly because there is a risk we can make a mistake. the fed is learning from the last 30 years of monetary policy and trying not to do the policy error that you saw previous fed do. romaine: i sort of wonder why we didn't hear a little more about fiscal stimulus, more about trade, and some of the other issues pushing the economy to a point that some people feel could leave to an error. ira: part of that i think is what the speech and tone of jackson hole is. if this was more of a humphrey hawkins, senate manual monetary policy testimony -- semi annual monetary policy testimony, you would hear more from chair powell. at n

this janet yellen of the fed, the fed is doing political. >> so he's complaining this fed is not doingm while he's trying to level the playing field. he says he'd like interest rates to stay low. jerome powell for the record just last month is on the record saying the fed doesn't act politically. listen. >> we do our work in a strictly non-political way based on detailed analysis which we put on the record transparently. we don't take political considerations into account. >> there's an annual central banker convention in jackson hole. i can't believe i'm saying this. >> you're geeking out. but it's exciting. through the prism of an executive branch that is criticizing the federal reserve here. >> higher interest rates could weigh on that ch. >>> the trump administration is green lighting a rollback of obama-era clean air provisions that critics say could come at the expense of public health. it aimed to reduce greenhouse gases from power plants by 32% from where they were in wife the and they had to do this by 2030. it's also federally regulating emissions for the first time, but that

ben bernanke janet yellen >> no, look, i'm not going to get trapped into that game there's no way butst of all, the resilient u.s. economy and the way our economy is structured still is the envy of the world. partly there's lower amounts of regulation, we see the stock market tend to constrict a little bit when there's more regulation, do better with less regulation, i won't get into that too much. but the nature of the economy is the primary issue. yes, a tax cut could matter in the short-term, but in the long-term, with the way the u.s. mindset and u.s. businesses are set up -- go to italy and talk to the italians about opening a cappuccino shop versus here in new york city. you'll get an earful i have, i have talked to isleal ans who can't open a cappuccino shop in italy. why are the regulations so difficult? if the italians would change the way they do, their economy would be much better here's an editorial about the economy that you did not ask for, but u.s. structure is really the key >> i think maybe a lot of people contributed. bob pisani, thank you. >>> coming up, more on the

trump and reit calling fed's independents, one has to hope he did you in the take action like janet yellen'srate hike. a sharp two week pullback, a real spiral in market got her mind right, she raised rates for the right reason after that and wall street accepted it. it looks like gary cooper waiting for a handshake deal with mexico, we hear on, we hear off, i think if if happens it could be first of many dominoes, wall street would cheer. and by the way checking of high noon -- speaking of high noon, a great scene, deputy sheriff said, you clean this town up, you made it fit for women and kids to live in. if we get that trade news early enough, the streets, i tell you, we have to get it early, late in the day, wall street will be like old west, with sage brush and tumbleweed, but if we get news early, i think we could have a strong dow, number is 25800 that is the break -- 25822, that is the break out. majority of americans don't plan their estate, a lots down have wills, we will talk about what aretha franklin and prince had in common, other than legends dying too soon, we'll be right back

janet yellen learned a lesson. if the fed does it for the wrong reasons, to have more arrows in their quiver -- but powell is a classically trained economist and a wall street guy. >> they are looking closely at the inflation data. >> there is not inflation. charles: go ahead, hall. >> they are saying there are signs of inflation and we have to get ahead of it. it's 2.4%. there will and hike in raises to the employees. but that can be offset by productivity. the bond market is pretty smart. and the 10 year is sitting at 285. charles: earlier this year the jab job number came out. the dow was off 666 points because the median wage hike was 2.9%. when main street hears wall street doesn't want them to have a 3% raise, they get crazy. they had a trillion dollars in phantom money printed up. now the fed would like to derail and slow the economy because main street may get a 3% raise? >> it's not about them having a 3% raise. when the markets went down we were telling people to buy buy into that dip. so that was pane ar

economy was strong enough for the fed to assume more than the glacial pace which janet yellen raised interest rates. she was at the helm of the slowest pace of tightening in fed history that put policymakers in a tough day where we don't have interest rates where they would be otherwise, and i think janet yellen and her two predecessors did bow to political pressure too often from the former administration and i'm hoping that this changes and that trump is maybe able to step back from some of this outside commentary. neil: well, you know it technically began in the administration before that with the meltdown and ben bernanke, a student of the depression and fearing another one did something very unusual and unprecedented on the part of the federal reserve to forcibly bring down interest rates ultimately to zero. maybe that's what we're trying to unwind and get enough of a cushion should the economy slow down if we have more hours in our quiver here, what do you make of that? >> i think it's rational that jay powell and he said it publicly, would rather have interest rates a whole pe

what the president should be upset about is the bernanke and yellen fed that didn't start this process014. that's why we're dealing with this now. that's why they're having to raise short-term rates in the face of emerging market complexity now, because they're so behind the 8-ball. it's a tangled web they weave when they first practice to intervene. that's what has happened. neil: all right, guys, thank you all very much. i want to passes that along, because that is a bit of a news development. the president is not a fan of the federal reserve raising interest rates in this environment. few presidents are fans of that, they just don't state it so publicly and so repeatedly. we're on top of that. we're also on top of venezuela. it is literally falling apart. keep in mind, this is a country that has enormous riches. all that oil, all that power, all that attractiveness gone in a flash because of a government that promised everything to everyone and ran out of all of that money. and now, and now it's pandemonium. ♪ you shouldn't be rushed into booking a hotel. with expedia's add-on advan

. >> it's been an interesting 12 months last year at jackson hole, jelen was p janet yellen was preparingpeaech. now what does the fed do do they try to distance themselves from trump? >> i think they do i think jackson hole has a separate agenda. a lot of these subjects are not on the agenda. we'll talk about those but in terms of the structure of the next couple of days, it will have the opening comments, those will be from jay powell this morning, i think he'll be balanced, even-handed, he won't get involved in political debates, for the next six months there's little divergence from the fed. i don't think he wants to send a strong signal about change in direction of policy or make any strong political statement in these speeches over the next couple of days >> it does get political if he weighs into trade. one story around the growth story was around trade if he leans into that too much, that's a negative message against trump,isn't it >> it is trade is not specifically on the agenda one thing we know from jerome powell's past speeches, he's not covering a bag of issues in any speech,

this janet yellen of the fed, the fed is doing political. by keeping interest rates at this level. >> now president trump wants the same easy money policies for himself. the fed did not comment. historically, the presidents do not talk about the fed. it works independently from political influence. powell reaffirmed that issue last month. >> we do our work in a strictly non political way based on detailed analysis which we put on the record transparently. we don't take political considerations into account. >> the fed has carefully raised interest rates to keep the economy from overheating. experts worry it may be overstimulated by government spending and tax cuts. >>> breaking overnight. a nazi labor camp guard has been deported back to germany. he has been living in new york city. immigration and custom enforcement carried out an order of deportation of jakiw palij. he became a u.s. citizen in 1957. he concealed his nazi service in the process. >>> a candidate claims she was visited by aliens has been endorsed by the miami herald. bettina

yellen had a decision to make in december 2015 to raise rates, and she does not.justifies this in terms of global credit conditions. the fret internalized china as part of its decision-making process. three years on we have a president who tweets celebratory about the collapse of the shanghai market as a symptom of his trade war against china. differenttwo political environment. guy: is everything in the same bucket now for trump and the chinese? everything is on a spectrum here, but all in place. adam: that is another thing we see in 2008. not just the financial crisis, but the war in georgia. putin fronted up and stopped nato in its tracks. that is indicative of the way in which geopolitics, which held at bay in the aftermath of the cold war, you can separate the power of politics from economics, and so basically economic growth was on our side and we could relax. that set of assumptions, divisions between geopolitics and economics, all of those are in the melting pot. now, it is explicitly american national strategy to treat tech as it continuing --military as

he was also asked specifically about powell because he picked powell over janet yellen. let's remember that. and he said i will let you know in seven years. these comments come today after over the weekend, just within the last 24 hours, he had a fund-raiser in the hamptons. they raised about $3 million. he specifically told the crowd of politicians and very wealthy people that the fed or mr. powell was not the money man he expected. he's weighed in on monetary policy, where in the past, presidents don't normally do that. john: isn't this going to happen no matter what, whoever became president, whether miss clinton or president trump, had to deal with the rising rate environment and because of that, emerging markets will suffer, exports will suffer and the economy eventually always comes down somewhat with the rising interest rates. reporter: exactly. i think the president right now is facing a little bit harsher compared to what obama went through because you are seeing rates climb five times just ever since trump came into office, twice under jay powell. like you said

trump himself who appointed jeremy powell for the position of fed chairman his predecessor janet yellen wanted to continue to work in this position but did not extend her contract. that we'll have more business news here in a short while now it's back over to late and layla more turmoil in afghanistan and that on a day that was supposed to be very very festive afghan security forces have fought off a major militant assault in the heart of the capital kabul reports say all the attackers were killed in the heavy fighting that followed rocket attacks the so-called islamic state has claimed it carried out the attack and it came as president are shahani delivered his holiday message on the first day of eat a major religious festival for muslims around the world. it was supposed to be a peaceful day of worship in kabul but the come didn't last long. in the morning militants fired a number of rockets towards the presidential palace as president ashraf ghani was delivering a speech to mark the muslim celebrations of aid. could do you figure. if the insurgents think that with rocket attacks this

trump himself who appointed germany powell for the position of fed chairman his predecessor janet yellen wanted to continue to work in this position but did not extend her contract you know it's another unwritten law commenting on the currency as a u.s. president but just how we could dollar does trump actually want. well for the moment and he got what you wanted the dollar went down to a two week a low actually the euro gain strength that is right now at the level of our one fifteen dollars usually when we have to scenario shares here at the docks go down this way but not today analysts don't believe that this is trying to set to continue and even though trample leaves that we dollar is better for the u.s. economy also exports in the united states are warning that this could have a rather negative effect for the economy and the boom that we have seen lately could be stuffed with a very weak dollar well could be over you heard from dana cope in frankfurt thank you. the united states and china are preparing to meet in washington this week to talk trade tariffs dispute is making doing busi

germany island belgium sweden and the netherlands are demanding better pay and working conditions yellen called the strikes regrettable and the unions to return to the negotiating table. a number of people killed in indonesia is rising five days after a powerful earthquake struck the region this video has been widely shared on social media showing a supermarket collapsing after one of the three hundred aftershocks that the rattled in this week if fishel death toll now stands at three hundred twenty one people. a major military operation has begun in northwest nigeria to crack down on criminals have been raiding villages it's estimated that more than two thousand people in the area have been killed by government since two thousand and eleven. where they just reports from northwestern nigeria. digging in for a fight these soldiers are part of a one thousand member force sent to fight gunman who'd laid siege to villages in northwest nigeria for more than seven years they sacked many villages looting killing and raping the criminals are forced up to forty thousand people from their homes yet

you make some fraternity analogies that the frat party is almost over because yellen and bernanke arend the market's going to have to come to grips with this >> yeah. we the the lenient frat house mom with janet yellen and it's replaced by a dude who's reputed to bemore strict sounds like things are going to be different at the fed. quite frankly, liquidity has been draining out for awhile almost no one looks at the money supply numbers anymore i grant you that emphasis is on the size of the fed's balance sheet. but m2 growth for the first time in seven years has slipped below nominal gdp growth the money supply growth was faster than what the real economy could put to work. and that all flowed in, we think in the financial assets. explains a lot of the stock market boom. it's change at the margin. and finally the last couple years, that rate is now below the gdp growth rate. that's one of many monetary measures that we are seeing deteriorate. >> you point out some of the other more speculative areas you can say that's all fine and good and then it could turn around quickly are you sa

but many of them have not had a deeply profound impact because bernanke he, yellen, and powell, veryuch are talking about the committee. the autocrat that the fed is behind us. joe: you mentioned the idea that maybe at some point after a couple more hikes, they would debut is neutral. but is that just a finger in the wind thing like all of this stuff? >> mutual changes over time depending on was going on with the labor market and what is going on with inflation, if you look at the thing in the forecast they call the long-run sustainable rate, and you have to find a reference when, it is a useful proxy to have the conversation around. >> are you suggesting they just make up the rate? >> i'm not saying anything. scarlet: all right. dan, thank you. on what happens later this week p the economy may be strong but truckers paychecks are going in reverse. some great charts to highlight all of this coming your way. this is bloomberg. ♪ >> wages are not necessarily keeping pace and that goes for other industries as well. why is that? let's go to matt, and economy reporter based in washington.

whether we are talking about jay powell now or janet yellen, any of the previous fed chairs, they woulday that the economy is dynamic and we are watching the data. yvonne: thank you. we have putting more to come on "daybreak: asia." this is bloomberg. ♪ yvonne: a quick check of the latest headlines. coal producers fell almost 7% in the first half. income -- net contrasts coal energy which posted a 54% jump in earnings. ramy: commodity trader fights for survival. shareholders voting on an equity plan that will strip them of control. the proposal will hand most power to the shareholders. they have lost a lot of value. up, pledging stability after a tumultuous week. we will be live in sydney next. this is bloomberg. ♪ yvonne: good morning. we cannot break out of this bad weather spell. asia's first major market open. getting the action to jay powell and the renminbi. in markets closed, the s&p 500 at a brand-new record. the seventh weekly rise. anderms of trade tensions what jay powell was saying, helping to support the u.s. among investors. you are watching "daybreak: asia." let's get to

our perspective goes back to when the fed first hike and chair yellen at the time said when the fed hase fed has said it to tighten before inflation, when they are slow and steady, fed tightening has not led to a procession. if we think of all the fed tightening cycles, the only time it has is when it was early, slow and steady. we believe the fed is going to be on that path. once they get to the target rates you referred to they will pause and look around and see what is going on. >> we are getting around the phillips curve here. are getting more wage increases. what is different? why is this not 1974? >> if you look at the wage growth data, we haven't seen as strong of earnings growth. , servicesak it down is where the breakdown has been. it has not been as strong to pick up there. doing about wages what you would expect. we have had a shift away into services. some of those things going on in that sector have been kind of leading to questions about these presentinglly themselves at an interesting time when people are coming in. there is the issue of inequality. that is like this gene

it's interesting, we had a conference for janet yellen was the speaker and she was asked that russian about trump and the fed and in front of our audience she said that the president affirmed that he would allow a fully independent fed and would not interfere. now we see comments from a gop fundraiser. we have seen the president make tweets before. the white house reaffirmed that we have an independent fed. i don't think that this will affect things majorly in the long run. of course, we have to wait and see what happens. opportunitiescap fund, what have you been doing to take advantage of the good conditions here? a few interesting things have taken place. earnings growth, year after year , looked like it would be up to about 12% of 13%. we are showing year-over-year 2017 north of 20%, which is quite extraordinary. and it looks like it could be another double-digit earnings growth year. and because of trade negotiations and things like what's happening today, for us we are looking to take advantage of dislocation. boeing would be an example of a classic come any that we own in the po

. >> transitory that's one of the terms of art used by janet yellen. >> thank you steve. >> sure. >> get to leslie picker for a market flash on tesla. >> i want to draw your attention to shares of tesla falling over greater skepticism of about the prospect of actually taking the company private as well as the potential for the s.e.c. looking into the company and the tweet in terms of securities violations there now you can see that tesla has actually paired back all of the gains that have been made this week after news broke that the saudi sovereign welt fund was taking a stake in tesla shares, down about 3.5% there. become to you. >> interesting thank you leslie >>> let's zero in on what steve was talking about with the fed and tariffs. if policy -- where am i going in right here if policy make remembers looking at tariffs as a factor in economic growth should that change the way investors are looking at the market. are they missing a threat. joining us eric is a strategist at russell investments and with us, kevin coron ob the senior portfolio manager at washington crossing adviser

september he will have hiked rates three times, equals what bernanke did in two years, short of what yellen he is continuing on with his plan and not being distracted by all of the noise around him. he did tell us about his own personality in that speech which i thought was insightful he admitted that he was generally a cautious person and takes in a lot of information and acts very reasonably but he does have a separate mode. if inflation expectations get out of control either direction, he would switch into a more aggressive posture then he cautioned we weren't there now. no signs that the economy was overheating. >> marc, when it comes to this president, the media and the president have a very strange relationship and i think much of that can be seen in how the press writes about what the president says about the fed, but many in the market and that i rub shoulders with think it isn't that big a deal, and jay powell seems very secure in his job, doesn't seem to take it as a threatening stance what's your read >> well, first of all i think we're a long way from when lbj called up bill mar

above trend, we are not getting a lot of inflation pressure, so jay powell can stick to the janet yellenning a high-pressure economy, bending the trend in labor force participation, which we make it more bell on friday, and reaping the and of -- the economic benefits of that policy, as well as the tax policy. and in america, you are behind, get going. carl: you are not behind, you do not need to get going, and so you should keep rates as low as possible as long as you are meeting the mandate, that means maintaining the gradual pace. we heard that from the semiannual testimony of jay powell. and the very subtle characterization phrase i alluded to will allow the fed not to have to make uncomfortable at adjustments, which keeps them on a gradual path. scarlet: tom is looking for a catalyst that might mess with the federal reserve and what it does at the end of the year, whether it is the election or something else. what about the president and his tweets? if he says something again to the effect of, i do not like higher interest rates, it slows down my economy, does that have an actual imp

donald trump criticized janet yellen during the election for keeping rates low. he's president and criticizing his own pick for -- for raising rates. he's completely incoherent and self-serving so it is on both counts, we're being exactly who we are and being exactly consistent. >> the topic of this conference is interesting i don't know if you had an effect on this, but this idea of monopoly power and the effect of the rise of the big firms, the big tech firms and the idea it is not proven yet and marshall you've done work on this, maybe explain the general idea, which is not -- not an out there idea, many mainstream economists thinking that maybe the monopoly firms are keeping a lid on wages. >> that's right. what shawn said about how there has been slow wage growth in the economy has caused a sea change in the economics research that has been done to try to explain what determines wages in the economy and one of the things that people have focused on is exactly this rise of market power on the part of employers so when employers exercise market power over thei

tom: chair yellen had to blink and notice international events. chairman powell. does he blink and look at international even with that chart? it is acknowledged they are looking at it, but nominal gdp has accelerated and inflation is on target. when services inflation is rising, they need to keep hiking. tom: we saw this yesterday with home depot as a perfect proxy. , we were talking about the u.s. economy overheating. are we still there, or is it a different story? >> i don't think it is necessarily overheating. this is targeted inflation. i think the economy is strong and consistent with the fed raising rates. nominal gdp growth has accelerated. we have an underlying fiscal stimulus that is potent at the moment. this is where it is appropriate for the fed to continue to hike. we expect them to hike up for all of the next four quarters, and that creates international problems. it is one of the reasons for the dollar strength. francine: what happens when the tax cut relief runs out? >> then you get slightly lower growth. we had gdp growth above 4

the median was all over the fact that it was going to be some kind of janet yellen clone. not. he is his own thinking person and in october of 2012 when they were voting for the last round, jay powell was on the record in the transcripts as saying that he had his doubts because he was not sure how messy it would be for markets when the time came to exit. now we are seeing emerging markets worldwide clamoring for the fed to stop its tightening and we are seeing jay powell push back just as he said he would do six years ago. >> thank you. russians aree relenting. a russianoft thwarted attack aimed at the midterm elections. this is bloomberg. ♪ this is bloomberg markets. election interference hasn't ended. microsoft says it has detected and seized web domains created by cyber attackers linked to the russian military in an attempt to disrupt the u.s. midterm elections. spoke with bloomberg will what they found. >> we are seeing a pattern that is similar to what we saw in 2016 when certain campaigns and political parties were attacked. it is similar to the pattern that we saw i

francine: i don't know if you remember janet yellen at the end of their tenure -- her tenure on stagetalking about bubbles. how much should jay powell think about market correction and bubbles? >> it will weigh on any central bankers thought process. where we are in the bubble phase of things? it is hard to see that we really see any significant bubbles or any emerging bubbles at this point. the fed will continue to drive home the point of its about financial conditions, and we agree with that as a general stance. financial conditions it still remained relatively easy despite the fed having put a number of hikes into the system. in terms of being at the thefront, no, because reality of it is that we do not see any of that right now. francine: if you are in charge of central-bank policy, where is the biggest risk? is it pboc, rbc, bank of japan, or the fed? tom: risk from one perspective? -- what perspective? francine: a big mistake, not only for their economy but for the world? raising have to be rates when actually we are looking at the start of the downturn, or misinterpreting data

it is not that much in terms of janet yellen and bernanke were using the symposium for, powell will try message the same. the minutes have become more transparent over time, so the is whence this time jackson hole was important, we had a lot of ambiguity. you had to employ people ducis cash to decipher -- to decipher. itell's mission is to make understandable to the guy on the street. we have to ask questions. if the fed is dovish today and powell questions the hike in september, you have record shorts on treasuries, yearly highs and dollar longs. the move we have seen already this week is reflective of that short-term positioning. we are in a dollar doom loop. if the fed because dovish, it is not because of the u.s. it is because of what is happening with the rest of the world and china. if he is dovish, we will see risk on. the structural problem is not happening in the u.s. andave this outperformance your typical fx models would say the growth is better in the u.s., therefore demand is higher, fx get stronger. maybe powell gets some reprieve. if he is dovish, it will be short-lived.

remember how janet yellen took world growth concerns?doing additional rate hikes. we are not there yet. if the situation in turkey worsens, like when the russian ago, melted down 20 years if the currency start moving lower, some of these rate hikes are going to come off the table i think. tom: with the tragedy outside parliament where we've got this announcement of people injured. it was called a terrorist attack. hours, therehree is one headline about lower wage growth in the u k -- u.k. chris: it's quite a mystery. part of the problem is how do you measure it? it seems to be countrywide. countries don't want to give you a raise. maybe you could go to your boss. my bosses watching this. he loves her show. we are up to 42 viewers? chris: i don't know why they are not raising wages. aren't hired 12 months of now, then you've got a story. ofra: are we at more risk gross undershooting than inflation overshooting? chris: i am pushing back on the idea that inflation is going to break out here. i really don't like this inflation. it's part of

i remember when i asked i think it was powell, it could have been yellen.he world blows up are you going to change the balance sheet they said not before we get down to zero on rates so i don't think they're going to change that unless they have a strategy on this i think powell, what he wants to do is be more transparent. i think that transparency could possibly pay a price with a little more volatility. >> you know who's here >> who. >> super brad. a world known tennis coach he's also a big-time investor, so get your pen and paper out because he's going to give you some -- they're probably all four-letter stocks knowing this guy. he's in the house. he's in the house. you were coaching the last american to win a grand slam. >> that was back in the day. >> 13 years ago, wasn't it >> 15. >> 15 years ago. >> i aoslmt had hair. >> remember i was there? i was there the day before tonight i'm going. becaus re, you can choose any car in the aisle, even if it's a better car class than the one you reserved. so no matter what, you're guaranteed to have a perfect dri

>> i was worried for a while and i was one of the people who was worried the yellen fed would hike earlier but even two more hikes this year is more uncertain than what the market -- the market says september is a definite. december is about 60%. i am not sure the probability for december is that high. >> i mean, a lot of these things, when trump does a lot of things, it's like, this guy is nuts, this is abdomen ignorant vice preside viewpoint that he's expressing suddenly, i'm starting to think higher rates are going against what we're trying to do, some members of the fed started to come around with that viewpoint, that maybe you don't need to go all out raising rates. >> because they're seeing inflation pick up. so now they're much more confident about the dual mandate, employment and inflation. >> but we don't want to cut off what -- i mean, the good times are rolling and it's not because of the fed any more. it's not because of easy money it's because of fiscal policies and tax cuts >> the handoff >> what you've wanted for so long is actually a -- >> i gave you that simple image. >> i

. >> yellen had an every other year idea. >> this has got you all excited, i can see that we're goingit do you want to ask some questions of megan. >> i'd love to ask questions of megan. >> do you have that jacket prepared >> what jacket >> that fishing vest >> with lures and stuff. >> one of those hats with the hooks on them and stuff. >> you know, there will be some interesting fashion this year, i believe. >> let's bring in megan green. i'm sorry, megan >> look the part if you're going to go out there. >> thanks for joining us you know, i'm always glad when we only talk about the fed maybe once a week instead of we used to talk about them like once an hour but will anything come out of this, do you think, other than steve getting another paid vacation >> says the man who does how many golf trips a year >> sorry, megan. >> that's okay look, no major announcement has been made at a jackson hole fed conference since 2010 when bernanke made a big statement. and it's not like we haven't been hearing from members and fed regional presidents ad nauseam so i don't think we'll get any major

dagen: with all due respect to janet yellen, i would say she not out there fly fishing and skiing. morning, terry lundgren is here, the former executive chairman and ceo of macy's is here coming up this morning to talk about the retail scene. plus, jason cha fitfits is joing us this morning, along with mark penn who is out with a good op ed in the hill. we'll talk about that this morning with hum. first, this top story, war of words, the president is slamming jeff sessions this morning via twitter. he says this, the department of justice will not be improperly influenced by political considerations, quote, unquote. jeff, this is great. what everyone wants. looking to all of the corruption on the other side including deleted e-mails, come eliy lis and leaks, fisa abuse, christopher steele, the clinton foundation, illegal surveillance of the trump p campaign and so much more. open up the papers and documents without redaction, come on, jeff, you can do it. the country is waiting. joining me right now, a former u.s. attorney general under president george w. bush, alberto gonzales is

>> charles: if you recall janet yellen, she said the reason to answer your question was that fiscal policyn't cooperating with monetary policy. you have more regulations, higher taxes and those kinds of things put efforts on the things that they try achieve. but the strain is $22 trillion of debt that the united states created plus the record consumer debt that's been created plus the high corporate debt that's been created, so this whole bubble that we are seeing is all based on debt. we didn't have the kind of debt today that we had in 2007-08. the debt today is what's sustaining. corporations are buying back stock to make earnings look bad, it's sustaining, that's what is holding this thing. hold on. trump is cutting taxes which is great, where is the money coming from and it's not just domestically from the united states, the world is broke and all the central banks are nervous and currencies are nervous and gold is nervous. look at the spread between 10 year -- hold on. they can raise the short end as much as they want to and think they are doing the right job. 20 basis points, 2007 l