. >> a big story, janet yellin making comments in washington. most of those were on monetary policy. however, she surprised many in the markets by commenting on stocks. we have to get to sue herera with a news alert. one minute into the show and i have blown it. >> no you have not. absolutely not. we want to be reviewed by the "wall street journal." they filed preliminary criminal charges of a unit of jpmorgan chase and company for alleged complicity in tax fraud according to document that is the "wall street journal" reviewed. the fact that preliminary charges have been filed indicates in france that prosecutors suspect the bank of serious wrong-doing and they believe they have gathered enough evidence to launch a formal probe. now, what are they alleging? they are alleging that jpmorgan and a banking unit went into a series of transactions entered into by 14 executives of the french investment firm wendell investments in 2007. they believe jpmorgan funded transactions that allowed executives to pocket 320 million euros. 360 million u.s. dollar

coming up at the top of the hour, janet yellin speaking from up in providence.eech. potentially market moving one. three hours left in the trading day. we will set you up in the second half. er getting married. never. psssssh. guaranteed. you picked a beautiful ring. thank you. we're never having kids. mmm-mmm. breathe. i love it here. we are never moving to the suburbs. we are never getting one of those (minivan). we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life, state farm is there. hand apparently, they also lovee stickers. g. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this. [ male announcer ] tora bora fallujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir

fed chair janet yellin. >> equity rates are generally quite high. they are not so high when you compare returns on equities to the returns on safe assets like bonds, which are also very low, but there are potential dangers. mark: let's discuss these numbers. our reporter is in hong kong with how asian markets are moving. not pretty in china. i want to start with the europe open. manus: nine months ago when janet yellin spoke it caused a market reaction. she was talking about concern in equity and other markets. the 2 trillion you referred to is global equity markets along with bond markets. european equity markets are lower. we wait to see what the reaction is in the dollar. the dollar is virtually unchanged at the moment. going straight to the bond markets. that in some ways is the heart of what we have got. in germany bond yields are rising. the entire rally of 2015 has been wiped out. the average is around 1.78%. there is a wipeout in government bonds. are we at fair value now? you see people by 1.9%. that is one of the lead stories today. they a

janet yellin once the valuation to hike.osition heads to the biggest three-day loss since june, 20 13. analysts sound the alarm on chinese equity. the ecb is said to consider tightening greases access to cash next week. only after euro zone finance ministers meet to discuss refinancing. the u.k. goes to the ballot box to vote in the general election. i am looking at futures markets. ftse 100 futures down by 27 points. back futures up by 54 points. i am looking at the bond market. bond yields higher. i will bring you the numbers. over the last 44 hours it has been one voice dominated. fed chair janet yellin. >> equity rates are generally quite high. they are not so high when you compare returns on equities to the returns on safe assets like bonds, which are also very

janet yellin about to deliver remarks and steve liesman has it now. >> thanks very much scott. janet yellin speaking in providence rhode island and believes rate hikes will be appropriate this year at some point if the economy improves as she expects. the pace of hikes when the federal reserve begins should be gradual. it will take several years she said for the fed funds rate to trourn normal or long run level. on the current economy, yellin said the first quarter slow down is largely transitoryy and expects the economic data to strengthen. that's important because it said the preconditions will be laid for that rate hike. she sees moderate growth this year and beyond. the economic head winds out there that include housing and budget spending have been waning. on the labor markets, it's approaching full strength. first time i believe they said that with the unemployment rate to fall by year end. it is close to the long run level although she does point out that it will be not fully healed along with a slack such as people working part-time. she said inflation will rise as the

because janet yellin is looking at it. and inflation are looking up. all in all things are looking up for a september rate raise. >> the core has risen by 2.6% for the past three months which is a very, very strong figure. it's a four-year high. on top of which of course, you do have some tighting of the labor markets. because the terrible educational system continues heading south. and so i'm of the view that the third point would be that the line defects of the policy in the u.s. are going to start hitting and that's what dr. yell in pointed out that there are many lag policies. just because you change the policy doesn't mean that it changes. >> policy being in affect of education. no doubt there are a lot of challenges when it comes to public education in the united states. believe me, i've reported from some of those inner city schools. >> and i'm a product of it. >> but at the end of the day it's when companies let's do more with less because of the global financial crisis and extending the workforce that they have but giving them much more to do.

you had yellin saying to get ready for higher rates. 12 year low. will it get to 132. >> you enjoy the weekend. spanish inflation month on month. the preliminary reading comes in at 0.5%. -.2%. the inflation numbers better than expectations. we get the final reading followed by inflation of italy. bit later growth data out of his ill. we had a flood of data out of japan today. all eyes focused on the key inflation figure. meanwhile, a huge week. let's get some insight on china and japan. great to have you with us. any sign it will start to pick up? no sign right now. >> it will grow at 0.2%. the bank of japan says the falling oil prices are going to boost spending, and that is going to push up inflation. households actually cut spending for the 13th month in a row. no influence the rest of the economy is going to start working to create inflation as needed. not a good sign. >> you and i have gone back-and-forth. the economic data is showing a completely different story. does the government have to think about doing something themselves? >> to boost

that followed a speech by janet yellin recommending the central bank remain on track to raise interest rates this year. yellin added they'll raise rates gradual gradually. >>> microsoft was willing to offer about $55 billion for sales force, the biggest maker of online sales software. but the offer wasn't big enough. word of the failed deal raised sales for the stock today by about 3%. >>> bigger is better. rumors swirl that apple may come out with a 12-inch ipad. they are working on other upgrades like having two apps viewed at the same time and multiple logins. they could arrive later this year. right now the ipad air has a 9-inch screen. >> always coming out with new gadgets. >> jeff has one of the big iphones. >> i just got it. so careful not to drop it. >> i'm about to tweet a really cool photo of san francisco. >> take us outside. >> we'll check on this foggy view. the picture i'm going to tweet is from outside the fog from treasure island. we'll talk about how long this cloud cover will linger and how hot it's going to get this weekend. >>> a nervous night for millions of people

. >>> some investors are reacting nervously to comments by janet yellin who said she thinks stock valuations are high. tokyo shares dropped down 1.23%. the stronger yen also weighed on exporters. they say they're caution ahead of the u.s. jobs data due out on friday. in shanghai they ended at the lowest point in weeks. the index tumbled nearly 2.8% to 4112. they are worried that they will reign in high levels of margin financing financing. the index in hong kong dipped 1.27%. sidney fell to a fresh three-month low, and it was a one month low. indonesia down .7%. >>> drones are in the sights of u.s. egg layregulators. they will begin testing long-range drones. >> the federal aviation administration announced it at a trade show. saying they conduct test flights that will take drones beyond the range of operators. they fly over vast areas to conduct such tasks as crop inspection. tv networks are key to use them in urban areas to shoot foot amg for their news reports. in their draft regulations in february, the faa says they must fly in a range where they can be seen by their operators. and they

yellin's comments come weeks before the next meeting and despite the concerns the economy might be slowing. steve leishman has the details. >> janet yellen saying today she believes the rate hike will be appropriate this year if the economy improves as she expects. >> i think it will be appropriate at some point this year to take the initial step to raise the federal funds rate target and begin the process of normalizing monetary policy. to support taking this step though i will need to see continued improvement in labor market conditions and i will need to be reasonably confident that inflation will move back to 2% over the medium term. >> yellen was clear expectation is for growth to improve, seeing much of the weakness as temporary. >> this apparent slowdown was largely the result of a variety of transitory factors that occurred at the same time. including the unusually cold and snowy winter and the labor disputes a ports on the west coast, both of which likely disrupted some econo activity. >> and the fed chair seemed reasonably confident to rise back towards the 2% target as the econo

fed chair janet yellin say stock values could be too high. that sent market lower yesterday. dow jones fell 86-point, nasdaq dropped 19. customers will be paying higher service customers for checking and savings accounts account. bank is increasing fees from $4 to $5 in 16 states including new york and new jersey. here the the five safees cars on the roads according to the insurance institute for highway safety. 2016 audi a6, gets the top safety pick plus, and that is because it has technology that will hit the brakes if it senses a imminent crash. gm chevy track buick encore, and kia and nissan central got high marks. mcdonald's's hamberg hans lar is all grown up. they are bringing back burglar thief after 13 years to pre moteirloin third pound burgers this time around he looks like a hip store dad with skinny jeans and high tops. people on social media have been split some think he is creepy, others say he is hot. ukee and erika. >> you know what i will go with the younger dude. i have some issue with hamburglar. >> i got some issues with that cat. >> you know, you are ques

this year if the job market improves and the prices begin to stabilize and that's according to janet yellinaking in rhode island today. the former uc berkeley professor cautioned, however that any rate hikes would come in small slow increments. >>> cal trans is closing the san mateo bridge again this weekend, but hopes the memorial day weekend will mean fewer people on the road. the traffic on the san mateo is moving very slowly. it is set to reopen at 5:00 a.m. on monday. it will let the crews resurfacing parts of the bridge. >> we don't see it look like that. >> never. let's talk about the holiday weekend forecast. >> meteorologist sandhya patel is outside. >> dan and cheryl, you know the drizzle we've been seeing in one more morning of that tomorrow and then it will take a break in time for the holiday and right now, just a gentle breeze seeing a mix of sun and clouds and let's check out live doppler 7 hd and we'll talk about the weekend in just a moment here. clouds are lingering along the coast and parts of the bay and we're seeing thunderstorms north of the tahoe area and north of the

chair yellin and the fed happened next was at in that they will look at the data before they start toe been explicit. doug: you don't want to overreact to any one month's data. if you decide i will run it on the most recent month, you will have a big problem. and seeit cumulatively what is out there. on the inflation front, services inflation is above 2%. -- if worldn low is conditions pick up, we will start to see the inflation targets the fed wants. we have seen the household sector maintained pc spending up 2.2%. inflation is still below the fed's target of 2%. unemployment is getting near , 5.5% or fed had said so. is that enough to move the fed office mark -- off its mark? doug: absolutely. it would really crossed the markets if they did not move around 2015. most of the chatter is about when. where do you come down on the dual mandate? no other central bank has a dual mandate? they stay focused on inflation and that the policymakers worry about the job side of it. doug: there is a lot to be said for an inflation mandate. same thing.ing the looking at inflation below their target

we were yellin'. what happened? >> we tried. we were there. we protected warriors.make the shots. >> only the third game the warriors have lost all season at home. the series returns to the arena for game five on wednesday. you can see the warriors game three live from memphis right here at 5:00 p.m. on saturday. if the warriors win the title, where would the parade be? oakland, where team has been for 44 years? or in san francisco, where the team is building a new arena? oakland maybe schaaf is talking with san francisco mayor lee about a parade that spans both sides. we will keep you posted. >> other news more remembers for the new eastern span of the bay bridge. salt water could be seeping into the foundation. officials have known since last year many of the new bridge's 420 rods were filled with rain water. workers drained that out. last month the contractor told officials water was reappearing in the rod sleeves although there was no source. preliminary tests found chloride levels were higher than found in rain water. two independent experts say it is likely ba

janet yellin falls two spots to number four and general motors ceo mary barra is fifth. >>> merriam-webster'sdictionary is out with the new words and phrases. among the highlights net neutrality, dark money emoji and meme. msfw and meaning not safe for work and online discussions to warm people about the contents of a particular link. >> all right. let's go back and talk about the warriors more. the dubs not a secret weapon and the loyal fans in the game and you're about to meet one of them as abc news reporter katie udas explains she's been a fan for a long, long time. >> it's a long story and you don't want to hear it, but i'll tell it anyway. >> the dub nation has a matriarch. >> i love to get in there and fight with them. >> her name is sweetie. >> lord have mercy. >> reporter: she's 105 years old and can't say just how long she's been a warriors fan. >> it's been a long time. me and my husband used to watch it and we used to go to the games. >> reporter: now she watches at home. >> take it while you can. >> reporter: where she lives independently. >> we can't believe it. >> reporter: her

. >> miss yellin? >> yes. >> mr. gallagher?ssumption that we're going to have a decision made by november 4th. >> wow. unanimous. >> a unanimous vote. >> unanimous. >> i'll take six months. >> what it continues to look like is that brian gets whatever brian wants and everybody else is just picking up scraps. you used to sleep like a champ. then boom... what happened? stress, fun, bad habits kids, now what? let's build a new, smarter bed using the dualair chambers to sense your movement, heartbeat, breathing. introducing the sleep number bed with sleepiqtm technology. it tracks your sleep and tells you how to adjust for a good, better and an awesome night. the difference? try adjusting up or down. you'll know cuz sleep iq™ tells you. only at a sleep number store where you'll find the best buy rated mattress with sleepiq technology. know better sleep with sleep number. female announcer: the matat sleep train!s are on we challenged the manufacturers to offer even lower prices. now it's posturepedic vs. beautyrest with big savings

speaking of the fed, janet yellin could bring a little excitement. 1:00 p.m. eastern time. listing for changes in the way she might characterize the economy, the labor market or inflation and that could providary little more clarity, maybe, on the timing of the fed's first rate hike or cause more confusion. >>> also worth watching. that gets released at 1:00 eastern time as well. the weekly consensus of the number of drilling rigs actively exploring for oil or developing oil or natural gas in the u.s. or canada. >>> let's get a check on the markets this morning. watching the u.s. equity futures and hasn't been much movement. not very different through what we are seeing through most of the trading week. looks like the dow futures are up by 14 points and the nasdaq up by about five points. >>> memorial day is of course the unofficial start to summer bringing to mind that old adage, sell in may and go away. is it time to send your stocks on a summer retreat or will it be different this time around? don chula is here on set with us. great to see you. >>

as i mentioned janet yellin is speaking now at the imf conference.also be joined by christine lagarde and we will bring you any headlines. betty: let's get back to bringing you the most important stories before the bell. alex sherman and olivia sterns are joining me. at number three is salesforce up for grabs. the management company is on the chopping block. they have some big names interested like oracle and microsoft. microsoft will have to weigh the benefits of a big expansion into cloud computing against the drawback of a high price in a costly time-consuming integration. microsoft does not have the best track record to come to integrate in companies. they want to move big into the cloud. olivia: the new ceo says he is all about mobile and the cloud. there is the cost of integration and the fact that salesforce is not making any money. alex: it's got a huge multiple and it would be an enormous acquisition, the largest fewer tech acquisition of all time if microsoft went through with it. we should point out that salesforce is not for sale as much

yell lynn pulled the starter gun -- yes lynn pulled the starter -- yellin pulled the trigger on tissue starter gun on changing that. expect a contraction of around .9% fpble what might that do to the dollar story? as you can see, we're trading virtually flat at the moment. the rally is just drawing to a slight pause. what happens next with dollar-yen? that's what we have at the moment. down an eighth on the dollar, yen rising slightly. no inflation it's flat. dead. zero percent flat. where do we go next? ary partners are the most accurate forecasters on dollar-yen. they say you've seen nothing yet. get ready for 132 by the end of the year. the bank of japan is nowhere near tone. other side of the coin, bank of tokyo and mitsubishi say 125 your lot. have about 1.2 left of the run. city fwrupe say 126. will the bnk of japan go into ult tra -- ultra additional easing mode? some say they're close to a deal. some say thear not lose to a deal. christie lagard has to have clarification on the nuances of the language she used overnight. greece is the word, excuse the pun. options will drive dr

janet yellin said are we strong enough? maybe. unemployment rate and inflation rate a little bit. greece now if they do something to disrupt the activity. >> what are you doing? >> you stay where you are. the stuff that doesn't have a lot of beta exposure is working well. dig names like disney and comcast is doing quite well. starbucks is doing fine. mcdonald's rebounded of late. both of those have worked reasonably well. i don't think it's panic time. i would start watching the transports more closely now that they are breaking down further to see whether or not that's the type of theory that one needs to worry about. maybe there were others. you are starting to see see that. you have to pay attention here. they have to watch this and more volatile that we can enjoy. >> as we have clearly seen, stocks are colliding with the loss of the dow. the fed is on track to rate interest and he is chief investment strategist russell investments. great of you to join us. do you feel that what we are seeing today whatever you want to classify

we are going to crown the next bernanke and yellin and the next economic professor. they will humble and astonish you when you come back and hear some of these amazingly smart kid at how much they know with economics. back to you. >> we are looking forward to that and it will be a great event. steve, sit tight. i know you have a lot of smart people there. apple shares are up 18% and more than 260% in the past five years. investor who made a ton of money betting on apple is carl icon. that stock is dramatically undervalued by his analysis. josh i guess uncle karl decided it was time to cent him another letter. >> that's right. in his open letter to apple, ceo tim cook said apple shares are worth $240. that is 85% more than they are trading at today. at $240 a share, apple's market cap would be $1.4 trillion. right now the company's market cap stands at about $750 billion. in his letter icon told apple to boost the buy back problem. apple announced they are expanding the return program to $200 billion through march of 2017. the billionaire investor sees big catalysts a

when janet yellin was talking about stocks and a lot of conversation going on. everything is okay.nk larry brings up a lot of great points much the bang for the buck. we need jobs jobs jobs. >> all right. jeff thanks to you as well. thanks to larry mcdonald. >> oil bouncing off of the lows of the day. the rig count he said. u.s. oil counts fell by 11 from last week. production still very high about 9.3 million barrels a day. oil is soring over the last month up 16%. a bunch of oil-related stocks. the smaller names, let's go big to go home. here are the big cap oil and gas-related stocks. and these all have market caps above $10 billion. range resources up 15%. and energy up 7%. just a reminder the oil market closes in about 20 minutes. we will take you live for the crude close coming up. >> president obama is in oregon giving a speech at nike headquarters and talking with nike ceo about competition of another kind. hey, sarah. >> hi melissa and brian. we were here to talk about the impact on nike a positive boost that the transpacific partnership would have, but of course in talkin

. >> and he comes in and he starts yellin' at her. and he's callin' her a whore. it over our heads, and was pretty violent with all of this. and then left, and you can hear the tires squeal. >> what was that all about? >> and she explained it's somebody that's she's been tryin' to cut it off with. >> reporter: lynne told richard that the guy's name was "doug." and they had dated for a few months but just the day before richard came to call, she broke it off. apparently doug didn't take it so well. >> that particular night, do you remember her reaction then? >> obviously, she was scared. >> was it scary to you, too? >> i was concerned. i was concerned for lynne. >> reporter: in the days that followed, the incident seemed to be forgotten, at least as far as lynne was concerned. >> she had this calming way of -- of taking big things and makin' small things out of 'em. she was in control, later on, she explained that, you know, she calmed him down on the phone a couple of times and then -- >> after that incident? >> yeah. she thought it was kind of taken care of. >> r

. >> i think what the fed is actually very connectrrect and janet yellin talks about this all the time headed in that direction, i wouldn't raise until we really start to see some wage growth which has been a missing ingredient thus far. >> why wouldn't you allow europe to do the same thing? they needed to do qe. that's why the dollar strengthened? >> you're confusing uk and europe. the uk economy is doing better than the eu. >> i'm talking the reason the euro has gone down so much is because they figured their currency with qe. >> that is absolutely correct. >> that's what we did. >> correct. that is one of the ways in which you strengthen your economy's growth. you lower your interest rates. that lowers the relative value of your currency and helps your net exports. that's not currency manipulation. something very different where you go into foreign markets and use your trade surplus to buy massive amounts of exchange currency. ask yourself why china holds $4 trillion of currency reserves. >> that is the problem. we're afraid to brand anyone else a currency because we're worried they

. >> that's why everybody what janet yellin says in her q and as.here the fed is far more open with communication and it's a good thing, but it also has consequences of raising volatility around any nuance message of the fed. >> maybe your st. looks a whole lot better too. we don't need the dollar any stronger. if your rebound is better and then we won't worry so much about what that does to our trade situation. >> well europe certainly going along with the growing global economy at this point. last year europe was really feeling in tough shape just about 12 months ago. you're starting to see it. better retail sales out of europe and bank lending growing and every low levels but, still, fundamental change at the margin tells us that europe should be doing a bit better which only contributes to the case that u.s. growth should be picking up in the second and third quarters of this year. >> it's a watch, wait and worry time. it's a reason to have a little bit more cash and little bit more defensive in your portfolios. >> watching them wait for a long