janet yellen: absolutely. point for why we are doing a better job is -- we are focused on systemic risk. we are focused on financial stability. spot emerging conditions that could potentially results in another financial crisis. i think we have a better understanding of how to look for those conditions, and we are putting a lot of resources and intellectual effort into doing just that. we now have an entire division of financial stability at the fed. with respect to our supervision of the banking system, really the most important thing is that we are bringing in new mindset to how we supervise the largest and most systemic firms. instead of taking a trees approach in this institution or looks safe and sound, we're taking -- thinking about the interconnection among this firm and their connections with other parts of the financial system. this is sometimes called a macro prudential approach, might of the micro-prudential approach. beyond that, in terms of regulating the financial sector and making the banking sy

lauren: fed chair janet yellen may actually move some markets. trading volume should be light as investors head out of town early. 45 minutes before the bond market will close, for three days, yellen is due to speak at an event in massachusetts. any clues of interest rates, when they will go up. former fed chair told niel cavuto that some economic fundamentals must be fixed. >> entitlements are crowding out savings and hence capital investment, capital investment is a critical issue in productivity growth and productivity growth in turn is the crucial issue in economic growth. so we are running at the end of this story to the state of disaster unless we turn it around. lauren: what the fed does at this particular sage is less important than what the markets are doing. nicole: this morning before the market opens we get the second estimate of the first quartered gdp. the number has been revised upward in each of the previous three quarters. the first quarter the gdp number was one half of 1%. that's expected to be revised up to nine tenths of 1%.

janet yellen says the ongoing improvement in the u.s. economy could foreign to a nether interest rate increase in the coming months, but stopped short of saying exactly when. we will follow reaction in the stock and treasury markets. get ready to wait. airports are expected to spend millions to help customers avoid long security lines, but will it be enough? and what this means for your travel plans this season. shery: protein is hot and chocolate is not so her she is diversifying -- hershey is diversifying. beef turkey? we will explain. we are one hour closer to the close of trading. julie hyman, how are stocks holding up? julie: relatively well. janet yellen is not derailing the rally, small though it was. we have pretty much made a round trip to where we were before she made her comments about interest rates potentially going up at some point this year. there had been some expectation going into her comments that she might be more dovish. basically, with that more dovish commentary, that created a market reaction. if you look at volum

jonathan: and janet yellen coming up as well. it might not be the big one, because she might not comment on monetary policy. vonnie: she's accepting an award , but we may have to wait until the next week or two. there are some notes that i'm getting because we have a long weekend of no trading this holiday. jonathan: let's go around the world and check in with our bloomberg world news. mike mckee is in new york. then, a wrap of the g7 meeting. and then another warning about the cost of a brexit. time, thetes government updates data on growth. we are joined by mike mckee who says the fed is likely to focus on bad news in the numbers. mike: half a percent growth in the first reading of the first quarter. that is likely to be revised up according to forecasts, but others on wall street will be focused on two numbers in the report. one is business spending and the other is our first look at corporate profit for the quarter. in the april minutes, there was a lot of talk about why business spending has contracted. as theyall companies

anna: janet yellen, what do we watch for? europe, 6:15.y in i think she will be saying very little actually. anna: some banks saying she won't talk about monetary policy. thank you very much for joining us. the future suggesting we will be weaker at the start of the european trading day. it looks as if the euro stocks could be down. no great margin. may be stronger on the ftse 100. janet yellen speaks later on today. 6:15 later today. course, full coverage here. ♪ welcome to "on the move." we are counting down for the european open. i'm guy johnson. this is what we are watching today. delaying trading -- trade weekend by giving what could be a crucial speech. she could be dovish. seven ends with a whimper.

toie: people are waiting hear from janet yellen. even though she is scheduled to talk about herself, essentially -- her achievements in her career at harvard today, some investors think she will talk about monetary policy as well. jeff gundlach -- think she will put the brakes on some of the more hawkish fromments we have heard members of the fed. you see a little lift in stocks today. revisions,latest gdp showing growth of a 10th of 1%. and in the past few moments, we got the final numbers from the university of michigan consumer sentiment at 94.7% pay the prior read was 94 .4%. this is the final revision of that number. that's look at what sectors are in the move in the s&p 500. today,is the laggard donald oil prices, but otherwise, consumer discretionary financials coming back after losses yesterday. health care and technology trading higher in today's session. on the downside, we have energy and oil prices pulling back the second day. down below $49 a barrel as investors look at the recent lift in oil after it got about got abov

janet yellen says a rate hike may be coming. yellen: it is appropriate, and i have said this in the past, to gradually and cautiously increase our interest rate over time. and probably in the coming such a move would be appropriate. climbing ine still light trading. seeties are on pace to their best games since march. airline stocks have been grounded this year. will the troubles with long security lines lead to even more headaches with the airlines? in two hours. they went lower on yellen's comments. let's check in with julie hyman. what does it look like right now? julie: although a lot of investors did not expect janet yellen to make any comments, there were some with a more dovish tone. some were expecting a more dovish tone, and she did not deliver that dovish tone. she has been saying more of what we've been hearing from federal reserve officials, that june is on the table, that may be the market is not pricing and effectively the number of expected interest rates. stocks across the board are still higher, but not as high

blake, janet yellen is on board, huh? >> reporter: yes, so she is in boston, massachusetts, harvard university and a question-and-answer session, and didn't necessarily take june or july off the table in terms of a rate hike, saying it would be coming she feels appropriate in the coming months. she's in the discussion with greg mancue, harvard professor, and he joked with her, do you want to move markets? everybody has the three day vacation lined up. anything you want to say about the markets? and she said, and not necessarily quoting here, she said i think it's appropriate to increase in the coming time, and i think such a move would be appropriate, mentioning that if there continues to be gains in the labor market and so forth. she didn't necessarily, she never said, i should mention, the words june or july, but she did mention she feels if the economy keeps on moving at the pace which she sees fit, that an increase in the coming months would be appropriate. yellen was also asked, i should mention, whether or not she t

janet yellen will speak on june 6 after the monthly u.s. payroll reports on friday, and she may or may not give away more than about possible june rate hike. that's what everyone wants to know. if the rates are increased, it will only be the second time in seven years. look at let's have a the state of the market. global market strategist at j.p. morgan joins us from melbourne. great to see you. janet ellen, they were hanging on every word from her. what was your take on it all? case of an ongoing stream of data from the u.s. that is improving. we've heard a lot from fed officials on the need to raise rates. janet yellen did cement and did not do anything to resend the idea that rates would go up. next month, july, or later in the year, it's all down to how the data performs. we get nonfarm payrolls in the labor report this week. anything over 160 would be enough to say the economy is improving. the fed would rather see better data come through before they do hike rates. maybe they don't do it in june. that is because they don't want to be

comments from janet yellen on friday. we are seeing a stronger euro, a bit of expected data out of the euro zone we had today. sterling pretty much unchanged as we have got a weaker yen. at .16.en we saw the u.s. treasury 10 year rise two basis points on friday after janet yellen spoke. in europe, we are seeing yields move higher both in the core and periphery. in commodity markets, gold is been moving lower on the prospect of more rate hikes from the fed and down for the night they, the longest losing streak in a year. crude and brent up. up next, it is bloomberg businessweek. carol: we are inside the magazine headquarters in new york city. david: still ahead in this week's issue, available online and on newsstands now, a new era for insider trading. carol: coal is the new hot coffee. it is all ahead on "bloomberg businessweek." carol: we are here with editor ellen pollack. and there are so many must-reads, ellen, in the magazine. you talk about south africa, growth slowing down in the country. there is some momentum for

that is what janet yellen highlighted. risks,look at the nothing fundamentally has changed from when we had that awful turmoil linked to chinese stocks in january, apart from the fact that the pboc put more stimulus out there. james: i would emphasize the global slump is not a u.s. slump, it is a slump in the u.s. energy sector, mining sector, and railroad sector. they are not big enough to cause a big employment problem in the united states. theu.s. conditions are -- u.s. conditions do make a hike appropriate, and why july not june? brexit is a week after june, so why not wait a month? what if briggs it happens? francine: how do you view brexit? i have half saying it is a concern, and the other half saying why do we even talk about it. james: professor ted locke's super forecast says there is a one in four chance of brexit. one in four does not mean it will not happen. it means if you flip heads twice in a row, it happens. if you are the fed, the way you hedge that is by waiting a few weeks. tom: we will get to the fed in

that's janet yellen's message, everyone, to wall street. and you can see how wall street reacted there, trading off pretty significantly although still managing to hold positive territory even after those comments. and right now the market's up 19. and this is all, of course, again, despite this anemic report we got on growth for the first quarter under president obama. i mean, take a look at this u.s. gdp number. 0.8%. that's lousy. i mean, that's really -- i sound like trump now. [laughter] really lousy. here to weigh in on it all and what to, you know, higher rates would mean in this kind of environment, economist douglas holtz-eakin. good to see you, doug. we were at 1.4% last time around. we're in an economy i would say is just barely treading water. i'd be more worried about recession at this point. given this anemic growth. >> this is the problem. we have had no pro-growth policies whatsoever. during the entire recovery, we've averaged 2.1% per year. and as you well know, any investor knows, bad things happen. you get tsunamis, event

. >> right and we'll be looking at janet yellen's speech. let's look at also at global market this is morning. japan's core consumer prices fell for the second straight month in april as weak consumption discouraged companies from hiking prices. in general slightly positive. the nikkei up .4. hong kong having a good session ending a decent week in asia. europe more mixed today but coming to the end of a very very strong week in europe. so taking some profit. not too much of a surprise. particularly that we are awaiting that speech from janet yellen. over the week the stoxx europe 50 is up 3.6%. so those declines of about a quarter percent in perspective this morning. >> the broader markets we just mentioned the dollar. strength in the dollars part of the reason for the slight pullback in the oil markets. we are seeing dollar's strength against the euro as well as the against the yen. against the euro 111. against the yen 109. against the pound 146. >> treasuries look at interest rates this morning. the 10 year seeing a yield of 1.82%. of cou

to steve liesman now for breaking news. >> fed chair janet yellen -- if we can go right to janet yellen. she's been asked about rates here. let's see if we can pick that up. >> so the kple is continuing to improve. economy is continuing to improve. we saw weak growth in the first quarter of the year and relatively weak growth at the end of last year. growth looks to be picking up from the various data that we monitor. and if that continues and if the labor market continues to improve, and i expect -- i kmekt those things will occur, we'll continue to monitor incoming data and also we'll assess risks to the outlook. but it's appropriate for the fed to gradually and cautiously ingreece the interest rate over time and probably in the coming months such a move would be appropriate. >> okay. >> one of the interesting challenges they face is zero interest balance. they went to rock bottom and stayed there and some sthauugge that negative rates and people are worried that we could have another recessionary shock in the future. the fed won't have many tools left. how much does that worry you? w

and the market moves as janet yellen said another hike is likely appropriate in the coming months, but when? >> and the rise of protectionism in the u.s. and europe, our guess is it could be a less competitive world. ♪ alix: we begin with our market minute, the s&p 500 and nasdaq closing of the best levels of the session, this is the fourth straight week of gains for the major indexes. and within the groups -- financials and telecom leading the advance on a better than expected, or improved reading, a little bit lighter than what the economists had been looking for. >> it was not a big miss today. alix: we have to talk about volume. ughing] >> it was ridiculous. it was down 20%. the s&p 500 down 15% pay it is part of a long -- 50%. it was a killer rally this week. >> absolutely. it was led by some things in particular, a really big move into sectors, which is a big deal. it has not happened yet this year, where in a week, the two biggest sectors were the biggest winners, so we are talking about technology and financials, those were driving about 40% of the s&p 500 and they were both

markets only believe janet yellen. keyast week was quite a week in terms of -- the market woke up to a couple of regional governors talking hawkishly. yet, when you look at the interest rate market, the euro -dollar curve, it is not quite there. they are looking at yellen. we need your guidance and janet yellen saying i need your guidance. it is a difficult situation to try to get round. if it is not june, it has to be july. if she does not deliver in july, maybe there is a hiccup in the markets, then she -- francine: do we care if it's june or july? june is pudgy because of brexit. -- punchy because of brexit. >> that would be the one reason for them not to go, for the sake of seven or eight days, why bother? give it another month. they have a meeting in july. the indication that we are going to move in july. the trouble is she has wandered a the garden path couple times. either we except that i think the fed is moving toward the next rate rise or she is just not in control. the fomc is divided. we don't know. we woul

would janet yellen risk a market downturn before the election? here is kevin kelly, recon cap pal partners. jonathan hoenig of capitalist pig hedge fund. he is fox news contributor. jonathan, if rates go up, markets go down, we've seen it happen before, trumps chances are the abouting better and janet's chances of getting fired are better. janet will not do something that might lead to her getting fired, is she? >> david, when you talk about the federal reserve you talk about intervention in the economy. it is always subjective. always anyone's guess. what thing for sure chances of interest rate hike as you pointed out are much higher now than they were this morning and reasons for it are -- david: jonathan, not get into the weeds. bottom line here, we know janet yellen does not want donald trump to get elected because donald trump has said, if he is elected he would fire her. therefore, she is not going to do anything to jeopardize the chance of hillary clinton getting elected, is she? >> i don't know that to be true, david, that janet yellen do

investors look to janet yellen and her interview later today. even if she might not talk about monetary policy, there is hopes that she will do so. taking a look at some of the movers today, we're watching google and oracle. a big jury verdict. oracle had claimed that google used some of its software as the origin of its android phone. a jury threw that out. oracle has said it will appeal this. legal experts say does not have much of a chance here. alphabet up by 1.7%. we are looking at some big earnings related gains for individual companies. we talked about the cosmetics retailer earlier, up 10% after it saw a boost in traffic. it sought increased sales. is a cloud-based software company, it is coming out with earnings that beat estimates. heelsts, falling on the of other retailers, beating estimates. thanrt is doing better department stores. they have had to overcome weakness in oil today. julie: it seems the correlation between oil and stocks has not been in effect recently. we are seeing oil prices lower as stocks are higher. the run on oil

some wonder whether we'll get that from janet yellen later today. others a non event. >> do you believe in a rally? just go with it. you don't have to believe some say. but there are two big events in focus for u.s. investors as said. the fed chief janet yellen will be speaking at an event hosted by harvard university. she also receives the radcliffe medal. that is presented annually to an individual with a transformative impact on society. and a second reading of the u.s. gdp data. reuters is forecasting a slightly higher number than the flash figure of a half percent we got a month ago. >>> and president obama is making an historic visit to hiroshima. akiko fujita is following the story in japan. the first sitting president to go to hiroshima there. we've just seen president obama arrive. what can we expect today? >> that's right nancy. i know you are going to be following the images. watching here as well, the presidential motorcade has arrived at the peace memorial park weemplt expecting president obama to lay a wreath in that arch. right near t

backdrop as well, fed chair janet yellen says the economy in the u.s. continues to improve and seems as if rates could go higher. >> i think for the fed to gradually and cautiously increase our overnight interest rates over time, and probably in the coming months, such a move would be appropriate. deirdre: heritage economist steve moore with me now. steve, welcome, glad to see you. so yellen's comments about potentially higher rates in the u.s. come at a time when japan's are at a record low. what does this mean for our economy? >> well, talk about spoiling a three-day weekend. [laughter] >> take away the champagne bottle when the party is supposed to get started. i disagree with janet yellen, show me the signs, deirdre, that the economy is getting better. i don't see the signs she's looking at. i look at gdp report that came out today. 0.8% growth. looking at business investment. it's lousy. business profits are as low as they've been in a long time. i just don't see the evidence that this economy is getting better as she does, and that would mean i do

a day of dollar strength after janet yellen's comments. euro strength after better-than-expected data from the eurozone, sterling flat and eight we getting yen on reports of the sales tax hike delayed in japan. if a look at what's happening in bond markets, we are seeing deals with higher after treasury yields rose following janet yellen's comments. treasury markets closed today and in the commodity markets, gold down for the night day. the longest losing streak this year -- or in a year i should say. branch rebounding. we'll bring you the highlights from bloomberg best. ♪ week in business around the world. >> i have rarely seen a rejection for the target company. david: does deutsche bank deserve more credit for its comeback efforts? >> it's offering results have been in decline the past couple of quarters. david: has greece turned the corner in its debt debacle? >> we still have to work that out. david: high-profile leaders share high-level insights in the week's best interviews. >> i have confidence that the regulators want this to be

matt, we are waiting for the one thing, and that is janet yellen. let's get details on what is happening behind this big topline market numbers. nejra: this is the stoxx 600 and how the industry groups are trading within it and looking at the imap on the bloomberg. we are seeing more red here than green. asia, it was a pretty broad-based rally. health-care stocks and material are only in the green. how care up 4%. it is energy stocks -- health care up .4%. it is energy stocks and financials. we are seeing lower oil prices back down below $50. i want to get to individual stocks. take a look at the u.k. 10 year yield. we're looking pretty flat at the moment. 1.40% on the 10 year. there we go down one basis points on the u.k. 10 year yield. let's take a look at some of the top stocks that we are watching. i am starting with philips. the ticker for the lighting is this that has spun off in an ipo today is light. i am taking a look at the original philips, raised 750 million euros is what we heard yesterday and that ipo. lighting starts trading at 21 eur

janet yellen: i went to gail, when i chose you as a place to get my phd, because i was so impressed by tobin. i took his course in monetary economics, i served as a teaching assistant in the core graduate macro class, he was certainly an important mentor to me and a friend. then later on, but it went to serve the federal reserve and council of economic -- he would visit me and economic -- in washington and give me the benefit of his policy advice. tobin, to me, was more than just a teacher. he was really an inspiration. tobinat inspired me about was that he had a passion for social justice. compass that pointed straight north. economist, sometimes are accused of working on highly

scott, did the market come back because they done believe janet yellen? or because maybe they priced it in already? >> good afternoon to you david, i am in central time zone. but, you know, here is the situation, on this. janet yellen, you know she is very much of a dove, the fed is probably not going to do much here, our bet has been that highest probability, is in december. that is still what our fixed income team thinks. but probability is not zero in june or july. really for me, where the market close today, the market is saying to me, we'll give of fed one here. but when they do that, if they say we'll hike a couple times more, that is a problem. david: all right. >> our call is one hike this year. certainly could happen over course of jub june meeting. david: we should mention, yellen did not say there was going to be one in summer she said in months, particular be two months or 12 months. >> i don't think that market, cares about one incremental rate hike so long -- 92 the -- >> they did about the last one. >> that got the ball rolling, so long as

investors waiting clearly for janet yellen. it's worth mentioning of course we had two good days on the market this week and that's perhaps the broader context from low volume tight ranges at the beginning of it. global marketist strategist at j.p. morgan asset management and scott ren with us, senior equity strategist at wells fargo institute. david, just to pick up this yellen point because for most people this is front and center for them. you no, we've had ten days now of minutes and fed speak what the short-term timing is actually going to be because the market hasn't fully shifted on those interest rate rises what's really dependent on what yellen said today. does the data change the context? >> so i think the data does change the context a little bit. this is federal reserve which has said for years at this point that their decisions are going to be data-dependent. and i would agree with steve that i'm not sure this afternoon is really the right venue for yellen to paint with broad brush strokes when it comes to monetary

jonathan: and janet yellen coming up as well. it might not be the big one, because she might not comment on monetary policy. vonnie: she's accepting an award , but we may have to wait until the next week or two. the

we have janet yellen speaking a week from today again. data. it will be a very busy and -- fxant week for fedex expectations. i think june is too soon. july is looking more real. it all depends on the data. we have a lot between now and the meeting at the end of july. caroline: you speak about a lot of data. matt, you have the breaking german unemployed -- employment data. matt: falling to 6.1%. falling by a 11,000 in may. we were looking for a drop by 5002 6.2%. german may unemployment falling to a record low 6.1%. not a bad number. richard, what do you make of all of this data coming in from the eu? it is pretty good for mario draghi. data willhe german give him some comfort that their policies are starting to take cold. a look at the german retail sales numbers and they were not rate. it is still early days. unemployment data must be the best since post-reunification. if you look at other parts of europe, the numbers are still lagging. it highlights the challenge that mario draghi has. we will be keeping a close eye on the german data and th

janet yellen is not naming a date. follow me on twitter. my handle is @rishaad. let's tell you about what is going on. it has been a mixed bag. despite the rally we saw on wall let's have a look at the board. juliette: we are seeing some good gains from japan, and hong kong has turned positive by .1$. -- .1%. we are seeing weakness on the regional index due to the a-share market in shanghai. we saw transit companies under pressure on friday. we are seeing export company sold off today as well. .2%. down doing better than the morning session, but it is a solid session in japan, up .8% as we see the yen weaken against the dollar on reports that shinzo may beales tax raise delayed. australia, pretty flat with a mixed bag in terms of commodities. the philippines up .6%. we have been watching these up .7%n the telco space, on the open. having a look at the offshore renminbi in terms of currency, the pboc has weakened the yuan fixation to its lowest level since february 2011. we can see a little weakness in the offshore renminbi, down by .2%. the weakness coming throug

how will history judge fed chair janet yellen? trouble in paradise, and a company that might be sitting of the biggest oilfield in america. all that and more ahead on "bloomberg businessweek." ♪ carol: i'm carol massar and i'm here with ellen pollack. you guys run a section about how banks are cutting off charity. ellen: they are not cutting off charities because they don't believe in charities, but because they are worried that money passing to the banks will end up in the pockets of terrorists or countries where sanctions prevent any kind of financial activity. carol: some banks have gotten in trouble because money past through them and it ended up in the hand of terrorists. and that's the big worry? ellen: that is a big worry. they are cutting off these charities. these charities are trying to feed people in syria, the people in war zones. they are trying to do the best they can to ensure this money does not in any way to the terrorists. they are sorted at a standoff at the banks because the banks don't want to get in trouble

that would mean that janet yellen could stick around and also if there's no litigation that janet yellen would pursue in being fired donald trump would then rely on the senate to confirm the replacement and they'd have a position to say we don't like that tradition. but a tradition it would be and not a legal protection and i think that's important. would president trump do that? it's very few of my prognostics have come about so i will not say anything in particular about what donald trump will or will not do only to highlight just how much tradition is behind what we can see. so let me conclude with addressing the question head on. has the fed gone too far? much of my discussion hasn't been about history but structure and governance and i'm writing a new and larger competition history of the fed to be published in about four years and i have pondered this very question, how the fed today relates to the fed as it was founded and changed over it's century in great detail. and if we're to change the question has the fed gone far? the answer would be a resounding yes. let me give you one q

how much importance is the jobs when you look at janet yellen's thinking? we look at risk, china still a risk, brexit is a risk, so are they really live for the june meeting? stewart: in terms of importance, still an important number, but probably less than it was 6, 12, 18 months ago. they've pretty much meant their target. to all intents and purposes, they have met their target quite some time ago. i think what is increasing in importance now is the inflation data coming through. with what has happened with oil in the last two or three months, i think everyone expects inflation data to pick up the -- pickup. francine: does it make june a live meeting or do you think june is off the table? stewart: i don't think they will go in june. i think what regional fed presidents are talking about is keeping the narrative. aey have to talk about positive narrative and build that narrative. with yellen, cheese on the dovish side. i think she wants to see more data across the global spectrum. the global risks, although they downgraded last time, they are still in her

larry summers and janet yellen kind of duking it out. ellen: it is more larry summers trying to put forth his theory of secular stagnation. and it's sort of an argument against the way most central bankers, including janet yellen, approach fixing the economy. carol: david gura and i spoke with the reporter on this story. >> do you believe the economy is likely in a state of secular set stagnation? >> it goes back to the 1930's, alvin hansen when we really were in the great depression. he worried the secular parties -- part means long-lasting, not purely cyclical. the secular stagnation argument seemed to lose force after we had the strong growth caused by the war spending and then crucially, the growth continued after the war ended. when the stimulus was gone. so secular stagnation kind of fell out as a term. for summers to revive it, which he did in november 2013, right after he was not picked to lead the fed, every year that is gone by that remains weak he's -- that growth remains weak he's looking more and more correct. ellen: he's lo

so, that would mean that janet yellen could stick around. it also means that even if there is no lit goings that janet yellen would pursue being fired, donald trump would then rely on the senate to confirm the replacement and there i think the senate would have a very appropriate position to say, we don't like that tradition, but a tradition it would be, not a legal protection. i think that's important. so, the, that is open question then, would president trump take that risk? i don't think any president making careful political decisions would, why is not the why we've seen the thing with president truman and mariner eckels. very few of my prognostications republican primary have come about. i will not say anything in particular what donald trump will or will not do, only highlight hough interestdation is behind what we conceive as fed independence as opposed to law. let me conclude with saying, that addressing, kevin's question head-on. has the fed gone too far? much my discussion today hasn't been about history but about structure and gov

at the bond look markets because we saw treasury yields rise after janet yellen spoke. the 10 year rose two basis points per you can see the yields move higher in europe as well. finally, looking at commodity markets -- gold really has taken the brunt from the prospects of further rate hikes from the fed. gold is down for a nice day, its longest losing streak in a year. tt i -- wti and brent are below $53 -- wti and brent are below $50 a barrel. stay with bloomberg rate coming up next, it is bloomberg "studio 1.0." ♪ emily: he got his start as a journalist with a front row seat to steve jobs' inner circle. and wrote the seminal book on the early years at apple. then, michael moritz decided to try his luck in venture capital. he went on to become one of the most heralded investors in silicon valley history, joining the boards of google and yahoo!, then, a few years ago, took a step back for a rare health condition he has never revealed. joining me today on "studio 1.0," sir michael moritz, chairman of sequoia capital and co-author of the new book "leading." sir michael

janet yellen drives market as the dollar closes on its best month since september 2014. not the end of the road. vw reports a profit beat more than the 2016 sales declined as stock falls. the short on china. as the bearish specs yuan slumps. a money meant -- a one minute slump increases for the volatility. volatility. further ♪ polls --come to the welcome to "the pulse." i am mark barton. a quick check on the mark -- on the market. monday here in the u k, the .25%, still down by on track for a weekly gain. the third monthly gain as well. that is the most since march 2015. index isberg spot marginally higher today. this month it has risen the most since september the 14, up by up by- september 2014, 3.6%. gold losing streak coming to an end. .t is a nine day losing streak longest streak in 14 months. still the biggest drop since november. the yield on the german tenure is up by a basis point today. we are awaiting the big cpi unemployment data out of the eurozone. in -- eurozone and hopefully 59 minutes. -- in hopefully 59 minutes. nejra: germany -- german unemployment

janet yellen be replaced by ai anytime soon? to sayink it is safe that janet yellen's job is pretty secure at the moment. that reasonable to say within five years come artificial intelligence will be making a meaningful contribution to the decisions that monetary policymakers make. david: are the eager for this to happen? chris: i found different reactions to that. some of them are indeed very keen on the technology. is perhaps england the most enthusiastic about exploring the possibilities. they have a unit that is dedicated to using technology in new ways. saidis time, they have they are experimenting with artificial intelligence. they are getting there. this: explain to us how focus of ai works, machine learning, essentially. chris: central banks do a lot of things, essential to that is having a benchmark interest rate to try to guide their economy in just the right way. because monetary policy works with a lag, crucial to setting just the right interest rate is economic forecasting. artificial intelligence can be used to per

what you laid out before was exactly janet yellen es point. janet yellen said eventually people have to put money it stocks or riskier assets that helps economy. but it hasn't happened. as charlie said at beginning, people are save money in cash. people are stuffing their mattresses. >> you just made the argument for muni bonds. i'm not saying puerto rican muni bonds. i'm just saying, i go, if i have a few bucks i go and buy a new york state municipal bond. i don't think the state's going bankrupt just yet. >> well if they bail out puerto rico maybe illinois is next. so muni bonds could go bad. >> new york state, but i'm just saying, you get income, it is tax-free. deirdre: you're accountant is happy. >> you don't have this theological conversation about equities, right? >> we'll bring it back down to earth. charlie gasparino, david asman, staying with me. we have a quick break to take. what you need to know, stocks sold off across the board as did oil. we're back in two minutes. ♪ in operating costs! i'll save the day! for plumbers and bake

that would mean the janet yellen could stick around. it also means that even if there is no litigation janet yellen would pursue in being fired, donald trump would then rely on refer -- conferred the replacement, and the senate would then have the appropriate decision to say we don't like that tradition, but a tradition it would be, not a legal protection. i think that is important. trump take that risk? i don't think any president making careful political decisions would, which is why have not seen much of what we have saw -- saw with truman. asill not go on record saying anything in particular about what donald trump will or will not do, only to highlight just how much tradition is what we conceive of as fed independence as opposed to law. let me conclude with addressing kevin's question head on. has the fed gone too far? much of my discussion is not been about history, but about structure and governance. -- first third about my book of my book is about history, and tom writing a larger volume be potion about four years. i ponder a la

al so to speak, for janet yellen speech later today. thael be watching out for the revised gdp data. let's have a look at how the nikkei and topix are kicking off. it did close well off the highs. the focus here today will be dominated by president obama's historic visit to hiroshima later today. many are keeping watch on prime minister abe's point about fiscal spending plans which he made some points during the g7 summit meeting. retreat if the dollar may weigh on sentiment. >> get us up to date on currencies. what's happening with the dollar in. >> the fed is really watching out for a lot of data points, durable goods a little bit weaker. yen 109.67. it's slipping against weaker currencies. fed policy makers have made it clear they'll be looking at data points and judge the timing of a rate hike based on what's appropriate. it includes the second reading of gdp later today. before bond and stock markets wrap up for a long week and janet yellen will give her speech later today. some analysts say she may not want to say anything too con

janet yellen says that rates are going up soon. so what? "varney & company" is about to beg begin. ♪ >> and he fires, yes! . stuart: yes, indeed. that's the golden state warriors coming back from a 3-1 deficit to advance to the nba finals. steph curry, that man, scored 36 points, seven three-pointers. the warriors will face the cavs for the second straight year, game one thursday. you'll be watching, won't you? >> oh, yeah. stuart: and who was at the game? bernie sanders, he attended with danny glover. glover happens to be a huge supporter of venezuelan socialism. and sanders, looking at the presidential campaign in california. hillary clinton reportedly cancels an event in new jersey for california. she's trying to stop the bernie surge. the trump attacks and bernie surge. tammy bruce is here. am i right saying it's desperate times for hillary clinton? >> bill is staying in new jersey and she's going to be going to california, defending california, which is shocking thursday through monday. a week from today when both states have the pri

we have janet yellen speaking tomorrow. ,hey will make strong positions but i don't know what she will say about june. scarlet: if they are here. reporter: card you know what will win out. you have memorial day. alix: so what are you watching? reporter: we have a little bit of a reversal on what we are working in the mention of a rally in the past week or so. we look at financials, not to get the same point over and over, but we have a reversal with that trade. financials have been doing well, today is the opposite. perhaps a little bit of language from speakers that june is not 100%. and he wasn't had an interesting move in the nasdaq, stocks read driving higher, in particular dollar names, dollar general, dollar t -- dollar tree. the nasdaq was up a little better than the rest of the market, which reduction in closing 0.1% up. iffy on stocks. money was limited to bonds, especially two-year. the but that yield, down 5%. mind moving in. what really caught my eye was kotter selling $9 billion of eurobonds areas that is the b

let's talk about janet yellen. we have other saying we will ,ave two possibly three moves what do you think? >> i know vanguard is an index manager, but we are active. since we are bookmarked neutral, we don't focus on it a lot. the importance is the underlying data driving these, which seemed stillicate growth is something robust. but is not something we were sure of a few months ago. haidi: but it is toss. murky.is down and profit is still fairly low. where'd you find returns in this environment? john: what we try to do is spread across all of the sectors , industry neutral, to find firms in the environment better than competitors. for us, where you start, not worrying about the aggregate environment, but can we find firms in that environment doing well? even here, there are still some managing to grow rates, gross sales and keep things going. haidi: sector wise, what are you looking at? what are you liking? john: because we are neutral, we try to balance out this exposure. we want to be careful not to get too mu

carol: plus, could janet yellen be replaced by an algorithm? what central bankers are saying about ai. >> the future of tv. >> all of that ahead on bloomberg businessweek. carol: welcome back to bloomberg businessweek. david: you can find is on the radio on sirius xm channel 119. carol: and him boston 300 -- 1200, and bay area 960. at the free publicity donald trump has gone from the news media and social media. tvt's what that means for executives planning on campaigning advertising dollars that have not materialized. >> you have millions of followers, and he tweets something out and it is free advertising essentially, to millions of people. often times, he says something so incendiary a gets picked up on local news or cable network tv and a goes viral and we're all talking about it in ways that paid advertising doesn't really breakthrough. he has a strategy with working with the media and it is -- he is a master at pulling the strings to generate coverage. one estimate is that he is received almost $3 billion worth of free media or earned med

janet yellen and the fed have been helping wall street at the expense of main street. main street receivsavers are ge killed by these interest rates. >> the growth of credit has been anemic while corporate bonds and corporate government bonds have been booming. the big guys have done well. the small have been hurt. as we know, small businesses are the job creators. >> right. and small businesses, rich, can't get a loan these days because banks can't give out loans if they get nothing in return on interest. >> yeah, that's the problem. look, we have a tragic situation right now that we don't have -- we've disince iincen iidisincen investment. the tech unicorns today. >> should janet yellen be fired? >> i don't know if she should be fired. she's worthy of criticism here. there's $9 trillion of negative yielding bonds worldwide. the average rate on two-thirds of the bonds around the world are about 1%. so she's keeping rates artificially low for too long. wall street is now in this sort of keep hope alive thing with wildly over-raleigh-durhvalued mike has said. >> if they

david: what will janet yellen and the fed be looking at in june? is it consumer spending? carl: three indicators. jobs, jobs, and jobs. david: still ahead on "bloomberg best," investors involved in turkey, puerto rico, and saudi arabia. up next, some of their weeks most important company stories, including a report of a new suitor for yahoo! ♪ ♪ david: this is "bloomberg best," i am david gura. let's continue our global tour of the week's top is news stories. deutsche bank has been ensuring investors it is in the midst of a turnaround. tuesday, that journey took an unexpected turn. david: moody's downgraded deutsche bank, and it has ceo john cryan speaking his mind this morning. mr. cryan came out fairly radically after this downgrade, matt. emphatically after this downgrade, matt. matt: john cryan saying he thought it was ridiculous for moody's to downgrade their debt just two steps above junk because, in his words, they have enough capital to pay their debt four times over. >> does mr. cryan have a point? the bank has never had as much capital. they could easily repa