♪ anna: janet yellen and mario draghi. the central bank's inflation target is that it will be met. >> to low inflation is dangerous. that was probably the think in taking the 2% target. japan's core consumer prices inch higher, lagging behind the gains in economic growth. harvey sentane gasoline surging. -- sends gasoline surging. manus: judgment day. heir prepares to receive his fate. we are live in seoul. ♪ anna: a welcome to "bloomberg daybreak: europe." there is an old saying which is around and around she goes, where she settles, nobody knows. where will be dollar and tonight at 8:00 p.m. in the united states of america? the positioning is so stretched. there is something that has crept into the psyche of the market. rally like this and we are heading for the first monthly gain on the dollar. the question for markets is according to networks. investors are undermining the prospects of federal reserve tightening. anna: we are seeing dollar pools adding to the positioning. not everybody is bullish. there is a survey s

janet yellen will speak on friday. with financial conditions easing and stock prices continue to rise to new records, is that a reason to continue raising interest rates? do you have a concern about the level of asset prices? >> i think the qe undertaken over the last 10 years aimed at boosting asset values. when you see we have made four rate moves since december 2015 and financial conditions have eased, i think that points to the idea that we need to adjust the balance sheets. that is a tool we have not had experience with. i think that is an important that, to be looking at that. michael: let me ask you, are investors to complacent these days? >> i don't know. i think you will have to see where that comes out. as i said, we need set conditions that have had easy monetary policy for a long time, the incentives to reach for yield, the committee signals it will be gradual could feed into that. those asset values carefully, but i'm not sure there's anything you can target specifically when it comes to setting policy. mi

>> janet yellen will behave incredibly professionally. she would do the right thing leading up to that date and leave the fed out of politics. she couldnd that stick on as a board member afterwards. increasinglyg likely that a non-academic will be head of the fed. rishaad: thank you very much indeed. coming up, looking at the fate of the heir apparent of samsung, jay y. lee. ♪ ♪ 9:29 a.m. in hong kong. we are counting you down to the start of the session. is about jackson hole, janet yellen, mario draghi, keynote speeches. we are watching stocks. 2% -- 4.2%ur point caution is the watchword, a tepid session on wall street amid low volumes, japanese inflation slightly higher, in line, but nowhere near that 2% the boj wants. i am rishaad salamat coming to you from bloomberg's asia headquarters. haidi: i am haidi lun in sydney. a seasonal tepidness when it comes to of items, exacerbated by this calendar on the macro front has been like this week. we are looking ahead to jackson hole. we will take a look if there are any hence as to tighte

janet yellen did not mention anything on that. we were also looking forward to what mario draghi had to say about the euro. will he be ok with the strength continuing? he did not talk about that, but mentioned caution ahead. you look at the gm and function, china's industrial profits rising, coming up. the csi 300 at the highest level since december 2015. we push higher the shanghai composite, also breaking that new record on friday. some downside pressure in commodities, not surprising given that we saw iron ore surged to a four-month high, retreating in the session. we are seeing the asx 200 pull back a little bit. the biggestials drag on the asx 200 for the equities market. the biggest lender, commonwealth of australia, facing widening scandal charges. we are seeing brent and crude oil, wti down, but brent gaining. the korean won surging. a mixed picture when it comes to bond markets, but the news flow right now, what is happening in texas and the u.s., also what we heard from janet yellen and mario draghi from jackson hol

this is the boring janet yellen. her speech largely a recitation of the history of the financial crisis and regulatory failures and how things have improved since then. she praises the swift u.s. regulatory response to the great recession, particularly changes in liquidity and capital requirements that have made banks safer, she says. "the evidence shows that reforms since the crisis have made the financial system substantially safer." she says that is reflected in the credit default swap pricing. investors see the same sort of progress that he fancies. -- tha n the fed sees. there is a jamie dimon section because she pushes back on the idea that regulation has put a cap on lending in the u.s.. she she says there is a bit of an effect on less credit with the followers, but research confirms "sizable net benefits to economic growth from higher capital standards." he also pushes back on some complaints from wall street that there are significant liquidity issues in the market while dealers have cut back on inventory, s

janet yellen people want to hurt if you -- her to talk about inflation. mario draghi they wanted tapering. janet yellen did a speech about financial regulation. she's in it has done a good job. josh she said -- she said it has done a good job. making banks stronger, and if there is a crisis, they can get through it, they will be a better stand than before. and also she talked about it limiting credit or growth. and mario draghi stood up and said financial regulation is a dangerous time to ease regulations. he warned against protectionism. in the question and answer after the speech, he was asked about quantitative easing. you think it is a success? he said it was, and right now we are not seeing is often stained -- a self sustained inflation rise in japan, so we have to be very patient, monetary accommodation is still warranted. everyone is waiting to hear this sense he is ready to quickly give an announcement at tapering. he said several times in the last couple of months, he repeated. he is paying attention to inflation like governor kuroda. su: now we

janet yellen speaking today. there are colleagues you make the case with the fed the tightening with seen financial conditions are still getting looser and that justifies a rate increase. robert: so, the thing that i -- and i've spent my life in the markets. i'm not a phd economist. i'm a business person. -- low cap rates for business, what i am looking for is debt buildup associated with those high valuations and that is what i'm watching for. i think a market valuation or real estate valuation will not .reate a systemic risk i think it might be healthy. but i'm looking for debt buildup associated with it. so far, i don't see that, but i am watching for it. one of the reasons i have not seen it, we have very strong measures for banks. debt am more focused on hold up and other excesses than the ua shin. but we should get higher creditons and tighter spreads. it tends to encourage people to reach for liquid assets. are there other asset classes? i am watching for excess debt buildup or people in asset classes that

janet yellen is not there yet. they will start reducing the balance sheet in september, maybe she wants to keep inflation a chance to rise and see what it does by december. we know the majority would like to raise one more time this year. we will see what janet yellen says. if she starts linking financial the fed doeswhat on rates, that would have an impact. manus: that would be the jackson hole bingo. you would get three points, kathleen. you get three points if she mentions potential to move, baubles -- what am i talking about? our story with jackson hole bingo. go get some sleep. thank you for staying up late in jackson hole. let's see what it does for markets. just a couple of lines coming through from samsung. matt, rosalind and myself are talking about what might happen next. go to top life go -- top live go. there is a lawyer for jay y. lee that may appeal the verdict. he has been handed down a sentence of five years. so request was for 12 years, less than 50% of what they thought was going to come through.

and we got that double dose of central bank speak janet yellen and draghi. euro firmer, little movement there. the pound, weaker again for the week it's at 1.2815, this is the fourth week in a row we're seeing pound declines. it's helping the ftse 100 trading near the highs of the week >> the pound at an eight-year low against the euro earlier in the week gold prices, which have not done much this week not doing much today flat at 1292 >>> on today's wall street agenda just one piece of economic date ta to wrap up the week economists are looking for a drop in orders for big ticket items like heavy appliances, aircraft and construction quip sgloo equipment. >>> wall street will be watching janet yellen today delivering her speech at jackson hole fed watchers will be looking for yellen to give clues on winding down the balance sheet which we expect to come this year, potentially as early as the meeting in september also from ecb president mario draghi, we'll have live coverage on cnbc. interviews with cleveland fed president, loretta mester and one of the gove

tomorrow janet yellen and mario draghi >> joining us from london is peter spiegel. good morning to you. thanks for joining us. i suppose we already heard from mario draghi this week what did we learn from that? what can we expect from his keynote tomorrow >> he kept his powder dry thus far. what everyone is watching for is from both yellen and draghi is how will they deal with economic growth and unemployment going down to sort of pre-crisis loads, yet no inflation, no rising wages, no rise in prices, and a market and a corporate sector that has become used to free money how do they balance those two things as we saw when the ecb will their own version of jackson hole in portugal, every utterance that touched on tightening and a move away from qe, markets reacted badly to it. how do janet yellen and draghi communicate the unraveling of qe without spooking the markets also there's conflict within the boards of the fed and the ecb about what these economic numbers mean some have been focusing on the low employment and high growth areas, saying we need to tighten. you

we heard from janet yellen. mike mckee said it was the boring janet yellen. i will point out one comment, she said they have been making progress towards the federal objectives ofic unemployment and price stability. you are looking at general broad-based rally on the s&p, mostly all green previously and telik medications index is leading that, up six tens of 1%, at&t and verizon leading those gains. they are big dividend stocks. we are looking at oil as hurricane harvey touches down later today or early tomorrow morning. -- shutting down already some oil refineries that make up half of the nation's refinery, oil and oil stocks a little bit supply-demand dynamic mismatch with less supply and that pushes up prices on the demand side. homebuilders -- home improvement store stocks higher, home depot, u.s. tractors, going to get supplies to board up the windows. mark: great stuff. said substantial progress had been made on the federal mandate with the dollar going down on the comments. the speech does not offer substantial direction on the economy or changes in ma

. >> janet yellen and mario draghi on what janet yellen is going to talk about she is going to talk about financial stability. we know that but the question is how far she goes there thinking about the possibilities we know she has had concern about dodd frank. advocate to support some dodd frank but more concern about the roll back or deregulation and then the question does she mention this issue of market valuation concerns on mario draghi my understanding is he's unlikely to give the market what it wants which is some cue on when the ecb will reduce quantitative easing it's supposed to happen and is expected to happen next year but probably not going to happen until they have a press conference that could be september and maybe even not until october. mario draghi talks about it. finally additional guests coming up from here that will be a key issue on closing bell happy birthday to the national parks day 1916 signed the order creating the national park system and that's one of the places where we are right now. >> it could be another beautiful day there. >> thank you. >> we await the

that is given the dollar weakness following janet yellen's comments. differed from talking down the euro. we are looking to the opens in japan, australia, and korea. onlyes in korea flat, up six for the asx 200. watch.sie, keeping a gasoline prices, gasoline futures up 6% right now. incking japanese futures chicago, unchanged at the start. dollar-yen, a little strength here. another missile launch from north korea over the weekend, so are a lot of questions about what comes next given that course when it comes to pyongyang. plenty to look ahead to come a let's get the first word news. at least two people have been killed in the strongest storm to hit the united states since 2004. harvey has dropped torrential causingd strong ravens, unprecedented flooding in texas and shut down a quarter of oil and gas reduction, forcing cancellation of thousands of flights. harvey could intensify again. heavy rain continues to lash macau, and the delta. with a 90ndfall kilometers an hour winds. it forced hong kong to issue its highest level warning for the first time

the federal chair janet yellen speaks at jackson hole. ae says any rollback financial reform should be, quote unquote, modest. plus, it's not always easy to outdo your boss. we look at double lines. hurricane harvey strengthens as it heads towards landfall in texas. the price of gasoline rallies as the storm threatens to wreak havoc on the heart of america upon synergy sector. let's get a quick check of the markets first, as janet yellen spoke earlier today and jackson hole and we are waiting for mario draghi. the tao of 54 points, 1/4 of

let's start with janet yellen's speech. kathleen: it depends on how clearly she wants to make a statement about where the fed is in terms of inflation interest rates and how much she wants to sit back. she has been saying for some pullback is probably transitory, although the last couple of months she has a little more room to say maybe this isn't quite what i thought. also, remember she is speaking about financial stability. to speak about financial stability is not like talking about a broken phillips curve. , on how determined she still is to try to lead the fed towards one more interest rate increases your. we knew the fed is going to start its balance sheet reduction in september. they have told us that in more than one way. could leadtability janet yellen to talk about this question of keeping rates too low to long. -- too long. that would lead investors to push up stocks. frenkelrenkel -- jacob was arguing today on bloomberg television that it is time for the fed to start raising rates now. he says there is inflation

janet yellen will speak on friday. with financial conditions easing and stock prices continuing to rise to new records, is that a reason to continue raising interest rates? do you have a concern about the level of asset prices? that washe qe undertaken over the last 10 years aimed at boosting asset value. when you see that we've made four rate moves and financial conditions have eased, that, i think, points to the idea that we need to adjust the balance sheets. that is eight tool we haven't had experience with. that is an important next step to be looking at. mike: are investors to complacent these days? esther: i don't know. you will have to see where that comes out. when you set conditions that have had easing monetary policy for a long time, the incentive to reach for yield, the committee signals that it will be gradual could feed into that. i watch those asset values carefully, but i'm not sure there's anything you can target specifically when it comes to setting policy. mike: the balance sheet taper, wall street i

he is likely to be more dovish than janet yellen, and that is saying something, because janet yellen was one of the most dovish people on the fed for a long time. the regulation side, he seems to have made anti-reagan vision, before, and the federal reserve has 2 mandates. tionnti-regula comics before, and the federal .eserve has 2 mandates tankerpresident trump on regulation come he is not for it. on monetary policy, do we know whether he would be dovish or hawkish? in the past yes made comments critical of the size of the fed balance sheet but it looks like the fed will start the process of reducing the balance sheet before the next fed chair takes office regardless. and other comments of the president have been looser, like you shouldn't raise rates. gary cohn impact was critical of janet yellen a few years ago, saying that until inflation is over 2%, there is no point in raising rates. that shows you that the president is a little bit dovish, and gary cohn certainly has the ability to be dovish as well. david: there is a fair amount of expression of interest on the republican sid

janet yellen will be discussing the summit on friday. this is a moment for which we were getting revved up until we heard mario draghi was not going to drop policy bombs on us. is janet yellen going to tell us something special? >> probably not either. it's quite funny we are focused on jackson hole this week. markets are quite today and will probably quite for the rest of this week. the whole world waits from something from jackson hole, not because we expect something, but we have a history that is surprising. another janet yellen nor mario draghi will announce anything new. the markets might be priced in about the euro. that's where we will see the real price action. manus: cracking piece on the bloomberg this weekend. this is the language he used. volatility. we are a ways away. in talking about the euro? i doubt that very much. financial stability could be a bigger conversation that yellen puts to the marketplace. perhaps we are underpricing that. >> that is a fair point to make. the most recent bed mentioned they were pushing back

draghi takes the stage and earlier we had janet yelling yellen earlier. great to have you on the show. it is more about what she did not say and i wanted to ask about as it price valuations. you think it is time now for the fed to be talking more about the concerns about valuations, do you believe it is time to raise rates in order to offset that irrespective of where inflation is? >> it is good to be with you. it was interesting, janet's speech was, quite routine in many ways. ground,not break new mostly congratulated the fed on there were done but a lot of things left unsaid and there is a great debate going on about the role of financial stability and how it interacts with monetary policy. and whether monetary policy should be constrained by financial stability issues, whether it causes financial instability, and how these things interact. she missed the opportunity to tech more about that and that gets to the question you are raising about what role should the fed have been thinking about as it of various kinds? we've come to expect much from jackson

we have the injury in janet yellen and mario draghi. -- the injury in janet yellen. now janet yellen is a stronger bull story for the dollar. how do you expect fed policy to evolve? if you came from the start of the year and the fed would lead the market, and they did, but the take away the most recent minutes was this was a confused federal reserve. we think they will hold up on rates to the end of the year and maybe longer. should we be paying attention to the most recent comments from mr. dudley? mohamed: i think the fed will hold itself on markets for a while. if there was a hike, it was going to be in december, not september. they will wait and get react.tion and also on the qe side, they will try to make a reduction in the balance sheet as boring as it can be. look at the fed, not to want to make headlines more news, just developments and hold out the possibility of a december hike. numbers,me breaking fortescue models has released its-- metals has released reserve. $2.9 billion, looking for $2.2 billion. the final dividend for the four-year post share was $25

janet yellen fails to give anything away on interest rate plans. this is bloomberg. ♪ >> just hours after china -- said it would take all necessary means against the was trade, the chief has weighed in on the protection of the dates. this book with kathleen hays a jackson hole. think global trade is an opportunity for the united states. a lot of the locations we have seen in the u.s., 10-15-20 years ago might have been because of globalization. today it's much are likely that they are incurring because of does touch technology and disruption and structural factors going on. i think as well as cultural, where many young people to live in urban areas, including having access to health care. bigger drivers and globalization. my own concern is if we commit some of these problems to globalization, will make poor decisions. publicly, and our trade relationship with mexico 70% of u.s. imports over the last number of years based on research are intermediate goods. these are groups that back and forth across the border at a quarter, logistic supply chain

what may box him in is his counterpart, janet yellen. even mildly that the fed is on track, that's a boost for the dollar and if the dollar goes up, inflation in the eurozone is going down and that is a problem for the eurozone and it moves them farther away from their qe. that is a problem for them that they are going to have to discuss the other issue for the withdrawal will be more complicated than the fed because of all the things they bought from so many countries and they may not even have the technical details ready by september so they will have to really do a lot of work for the get to the point where he wants to talk about it. alix: from a market perspective, what are you watching more? has ae know mr. draghi program. on paper he is supposed to be purely targeting inflation. he is well below his target. what is he talking about normalization? it is inflation versus growth. on the u.s. side, we have a central bank and supposed to be looking at jobs, the real economy, and inflation. the ecb is only supposed to be looking at infla

stanley fischer mentioned it, janet yellen. the market cared for 48 hours, and then it decided to rally again. what about the prospects of further tightening? weh the fed hike last time, said it was a free hike. financial conditions were loose, they were not reacting. now we are seeing financial conditions at least tightened slightly. does that have an impact on asset prices talking about these two things? mike: probably not at this point, unless it keeps going. we are seeing a little bit of tightening in reaction to what's been happening with the dollar lately. it has to continue, has to be bigger. the financial conditions index shows we are still quite loose in terms of policy. according to the fed people we thatbeen talking to, justifies another move by the fed sometime this year. it is not imminent, they will go with the balance sheet reduction in september, but it looks by december they could be on track for another rate move. julia: great to talk to you, mike mckee. i want to quickly bring you some breaking news. amazon s

janet yellen offers a broad view of the rules and they look at the height of concerns over the u.s. debt ceiling. we begin with a big issue in jackson hole, little about yellen and maybe more about draghi. >> i'll be paying more attention to mario draghi. >> investors should be paying more attention to draghi, not yellen. >> he was walking on eggshells. >> everything to gain is so dependent. obviously if the euro zone was to show any signs of rolling over, core inflation drifts back down. it may be very difficult for them to announce anything at all but certainly the market is looking for some clarity. >> the central bankers want to be very gradual, very careful in both signaling and implementing the withdrawal of this extraordinary accommodation they put in place the last few years. >> how do you exit in a careful way where you don't signal too much you're exiting and still give time for the economies to do well and still give time for the inflation to come up and i think he will at jack hole go -- at jackson hole go carefully forward. >> the economy there is more fragile than the

getting ready for a speech from janet yellen. joining me, someone who has been here for 33 years in a row. the former governor of the bank of israel. jacob, you are concerned about being too long. -- too low for too long. do you agree or think they should? >> i believe they should raise rates. everyone expected it to happen. fors on the journey normalization. an excessively long delay. while we are keeping rates as low as they are there are issues in the financial markets and other distortions that get accumulated. the normalization is called for. improvingy is significantly. markets have not been as well behaved as they have been recently. the duration of unemployment has declined. even inflation on a medium-term perspective is towards the target. i would not hesitate at all. hike.d put for a not a single move. we are talking about a journey. the journey is response -- restore normalization. this will be several hikes. this journey is going to be slow but consistent. there will be quite a few rate hikes. moderating in 2018. we s

federal reserve chair janet yellen said any rollback will be quote, modest. potentially putting her at odds with the trump administration. still with us, martin haggerty from black rock and matt thomas from voice and i write years he -- ira yersey. martin, why don't we get a bid and we put the emphasis on the bid after the speech from the treasury market? martin: the bar for yellen's speech was really low and very little expected to come out of it and she definitely did not disappoint. where there was potentially some small hope she may bring in the current level of financial conditions and how that may play into monetary policy, but she barely brushed on the topic and talked predominantly about regulation as you referred to, and we had a couple basis point rally and a couple basis points lower and the dollar is weaker. jonathan: let's talk about the financial condition story and the tension between loose retention and elevated market pricing and that between ultimately soft inflation after soft inflation after soft inflation. how is the fed meant to calibrat

janet yellen needs to scare the market. if you look at the fed watch tool, there is no rate hike priced in. we just about 40% as of yesterday. for december the market is not believe it. esther george is calling for a rate hike. the markets don't believe that at this point. i believe janet yellen will try to make them believe. mark: great to see you. with today's features info. vonnie: we will keep an eye on harvey. still ahead, geopolitical uncertainty and a terror attack in spain impact in the outlook for global travel demand. this is bloomberg. ♪ ♪ mark: this is bloomberg markets. samsonite, the global luggage company recorded higher profits for the first step the year. spoke to bloomberg daybreak: asia about the company's goals and how geopolitical uncertainty ways on travel. >> it has not been very satisfying for us. it grew by high single digits. the growth has been consistent across all regions, europe, asia, latin america and north america. that gives us the confidence that travel business is resilient. in spite

that is what janet yellen did. i think she is basically saying if she does not get nominated, she is ok with that, so i have to say that the probability has precipitously, but i think probabilities today have to be lower rather than hire. -- higher. joe: it seems like it is always a game. maybe i should not call it again .let's imagine what the economy is going to do, and then the common imagine what the fed people do and then imagine the policy. now there is a new wrinkle because they have to forecast a theoretical she they do not know. i will point you expect they see the unaffected see where markets start pricing in different federal regime? krishna: i think that is a really good question because while the initial policy initiative under, let's say, a cohn administration and a yellen administration are working to be relatively the same, the risk of inflation are going to be substantially higher in a cohn administration. curve steepening risk is higher if there is a regime change. worrying about that is important

prump hasn't yet decided who he'll pick to head the central bank, so this could be janet yellen's last meeting as fed chair unless she's reappointed. also unclear is whether congress and the president can exceed a fiscal stimulus. and the fed is debating why it continues to miss its inflation target and whether it should hold off raising rates again until it gets chose to its 2% target. >> the issue is about inflation and i think really try iing to factors, which should be creating more inflation y enable disruption that are muting pricing power of businesses. i'm not saying we won't act by the end of the year, i think we have the ability to be pat and and see how these forces unu fold >> mario draghi as markets speculate whether he'll announce reduce stimulus next year. so it' same majestic mo exiting policy new set of rather than launching it and new leadership on the way at the federal reserve. i'm steve liesman in jackson >>> still ahead, amazon is coming out swinging and that means cheaper items at whole foods starting monday. >>> shares of retailers that sell groceries fell after

and friday, durable goods and we'll hear from janet yellen at jackson hole we'll hear from lowes, abercrombie. >>> up next here, a new study lays out who is the most to lose in trade war >>> and the one chinese company setting its sight on chejeep olay eyes new deep hydrating eye gel with hyaluronic acid born to outperform the #1... prestige eye cream for better hydration. and your best look yet. olay eyes collection. ageless. that's why at comcast we're continuing to make4/7. our services more reliable than ever. like technology that can update itself. an advanced fiber-network infrustructure. new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. >>> welcome back futures are pointing lower, but only slightly. down 0 aboutment .2% for the naq dow down only 0.4% energy was the worst, utilities the best we're probabilily taking a lead frets of the world we have a mixed picture from asia with we did see the nikkei down over 1% and it's extending those losses

janet yellen will have a speech at 16:00 cet in what could be her last fed watchers have indicated her comments could outline a course-charting path for a possible successor with a focus on how the central bank plans to unwind its balance sheet ecb watchers are hoping for any sign from president mario draghi that the central bank could begin to taper he will be delivering his comments at 20:00 cet. steve liesman hat full story >> reporter: when the fed gathered a decade ago, they worried about a recession and glooming global crisis circumstances are different and somewhat bet their yebetter thi year but issues are still there. instead of buying assets and cutting interest rates, the fed is hiking and nearing a decision to sell assets perhaps as soon as september >> you saw the minutes of the last meeting markets are expecting any time now looking at september and out. that is always a function of what issues are going on when we meet to make that decision but i think the setup is there describing how that would happen and the approach that the committee would take. >> reporter: but the

one of the factors is that donald trump be fine with janet yellen. congressional republicans, many have made it clear that they would like to see a republican. gary cohn is a democrat and he came from wall street. that should make both sides unhappy because of the financial crisis. how much support is he really going to have on capitol hill? >> the optics of the goldman goldman sachsr -- man becoming fed chair may not make them happy. forommended janet yellen her stance and he seems to want stimulus efforts that would be better off with a lower interest rate policy. he said he likes lower interest rates. who doesn't? that is an easy comment to make. how they carry that policy out, whether or not growth is more important and jobs are more inflation, we don't know how he feels about those things at this point. >> let's talk about the jackson hole monetary conference that is coming up this week. the title of the conference is kind of vague. are the bigy, what things you will be looking to hear? >> ensuring a dynamic economy. janet yellen's speech on fri

the federal chair janet yellen speaks at jackson hole. ae says any rollback financial reform should be, quote unquote, modest. plus, it's not always easy to outdo your boss. we look at double lines. hurricane harvey strengthens as it heads towards landfall in texas. the price of gasoline rallies as the storm threatens to wreak havoc on the heart of america upon synergy sector. let's get a quick check of the markets first, as janet yellen spoke earlier today and jackson hole and we are waiting for mario draghi. the tao of 54 points, 1/4 of 1%. the s&p 500 up 7 points. the nasdaq really unchanged, just down about 2 points. the dollar was where we saw a bit of a move, it went lower by 1/2 ofd 1%. mark crumpton is here with more. >mark: the governor of texas, greg abbott, is urging people directly in the path of harvey to leave all there is still time treaties activated 700 members of the national guard in preparation for the storm which could be the first hurricane to make landfall on the texas coast since 2008. president trump tweeted he sp

would he imagine anything different from janet yellen? anshon: gary cohn is unlikely candidate, but anything is possible. how do you handicap that? have you been able to predict anything this president has done so far? david: i have not. gershon: so did we get someone more hawkish -- who knows. very hard to say. jonathan: have you establish towards market bias is either candidate? what janet yellen and another term would mean versus terry cohen. when larry summers was in the running, he was seen as the hawk and yellen was the dove. market hasthink the gotten comfortable with yellen as the fed chair. it is difficult to say if the market is expecting something different, but i think the unknown unnerves markets a little. credit isunnerve going to be the end in best a reaction. we have shaken off so many things. you can point to so many events, starting with brexit to the trump election to the turmoil today, the question is shouldn't have markets reacted negatively? and they have not. the question is what will spook the end investor. david:

he couldn't immediately jump in take janet yellen's place, right? he would have first to be appointed a governor. do you think he might move out? have you heard possibly moving into the fed for gary? >> well we interviewed the president earlier this month and he put out gary cohn as janet yellen as two of his top candidates. he is looking at some other people but he doesn't want to name them. i think you have to consider yellen and cohn to be the two lead horses right now. david: by the way according to the federal reserve documents that i looked at you have to first be a governor before you can be the chairman. would the president -- >> the president could appoint him as a governor and chairman simultaneously. david: i see, okay. >> could move into the positions at same time. i don't see that being impediment. when alan greenspan became chairman of the fed back in 1987, he was outside the fed, moved straight into the job. codo it. he is one of the lead people. some people argue he might prefer that job because he has more independence in the job as

counterpart janet yellen made no reference to monetary policy. as a result the euro spiked to a three year high against the dollar around 10:00 a.m. eastern to 118 against the greenback in corporate news. amazon due to close its acquisition of whole foods on monday and start slashing prices of several grocery products. in europe take a look at dutch supermarket operator a patient of food lion and stop and shop tesco under pressure number one retailer in the uk. some economic news i want to talk about in france consumer confidence falling for a second consecutive month a tick lower in august to a reading of 103 confidence had jumped to 108 in june following victory of president macron since then it's dropped. households are losing confidence in their financial situation keep in mind macron's popularity has suffered a nose dive down 20 points from may according to a harris poll. french stock market pulling back from its may highs as well but with a month to go before elections in germany, chancellor angela merkel is on track to win a fourth term in

janet yellen and mario draghi meet in wyoming. we begin with the big issue, europe monster debt issuance and amazon joins in. >> that is really the elephant in the room for us. where are they going to be tomorrow? it's a little bit of a leap of faith here. >> it's a little concerning. from a credit perspective, you have kind of an opaque business model here. you don't have a lot of disclosure to the markets. that make it tough for us. youhis is a dynamic really see across the market. even after we are into the fed hiking cycle, the borrowing cost for the u.s. corporate and european corporate are near the lowest that they have ever been. this remains a very good time from a cost perspective for corporate to borrow money. >> this still is demand for yield. the fed is going through this process of slow balance sheet adjustment and policy normalization. they're still image store a demand. -- an extraordinary demand. >> their issuing long bonds a very tight spreads. the very corporate market overall has expended quite a bit -- extended

there is a possible replacement this year of janet yellen. is emerging as a clear front runner for the nomination to succeed yellen. yellen would be secnd term. how do you look at this? first of all, is it too soon to talk about who could replace janet yellen? >> we are only five to six months away. i don't think it is too soon. we are already looking up what 18.d policy might be in 20 like we said before the break, just one rate hike put in. can anybody who comes within gary cohn the more dovish? i'll think it is so much the dovishness or hawkishness. gary cohn, you think of a very dovish. the announcement will come as a surprise. , think from our point of view i think the fed, whoever will be the chair will be driven by data. in that sense, i think we have a big impact on the markets, but we don't know when it is going to be, so it is difficult to assess. reporter: i hate to disagree, isk ise r there. you look at some of the people on that list, look more to and theyn that list, have a more mechanical approach. they might will choose financ

janet yellen took a little bit of a step back though she was pretty pro regulation, she also said hey, there are tweaks that probably can be done, because of the interrelationships of all of these different regulations might actually be hampering growth and maybe we should look into that and i think mario draghi might come from the same type of approach. jonathan: martin, for investors, how have you prepared for the removal of accommodation in europe when central bank

let's talk about who might lead the fed when janet yellen's term expires. what has seen economic advisor gary cohn has emerged as the leading candidate followed by janet yellen. and stanford universities john taylor. joining me to play the fed chair guessing game, peter coy. there's a broad question here. personnel seems to be playing a bigger role as people wonder what shape monetary policy is going to play. how important is it who leads the federal reserve? >> it's not one person. the fed chair is a person who tries to form a consensus. only what that person thinks, but his or her skills in bringing people together and leading. janet yellen for example i would describe as a labor economist who is very sensitive to problems of unemployment and yet we have seen moving towards raising rates even while inflation has remained below target. me she is looking not just at her own proclivities but where is the sentiment on the federal open market committee. to gary cohn.urn what do we know about his attitude towards the federal reserve from what he has said in the

i agree with the first part because i know janet yellen well, also. i worked with her when she was the head of the san francisco fed during the financial crisis and i have deep respect for janet yellen. know,k that we just don't going forward, exactly what will happen. i think the fed has a reasonable about of independence from the white house, so i would hope that the fed could maintain that and whoever might be the fed chair can operate reasonably independently of the administration, as has been the tradition for most of the fed history. vonnie: we saw two sentences dedicated to the view of one person in the leadership of the committee and that person said a rate hike would strike the appropriate balance. does this mean we are definitely getting on this? it sounds like it could be the fed chair or stanley fischer or william dudley. randy: will depend on how the economy evolves -- it will depend on how the economy evolves. the u.s. economy seems to move along at about 2%, the matter what happens -- no matter what happens. we will have to see what hap

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>> it really was, and if you look at what janet yellen said, she talked about peripheral issues, not necessarily policy and balance sheet withdrawal. i think the market's telling you with treasury yields going out on the lowest since june, with gold going out on the highest, going back to probably april and the dollar getting crushed, this becomes more about debt ceiling and the aforementioned tax reform is the key issues to what's going to hit wall street over the next week or so, that is what needs to be resolved before the end of september and the market is unsure. >> how could they be sure of anything in this environment? let's get to phil flynn. the big story is oil, phil. i read the article, not so much to lose oil rigs but refineries along the texas coast, that could have a big impact on gas prices? >> absolutely. we saw that earlier,r bot rose as much as 10% going into the storm. we pulled back as traders try to balance the destruction of the refineries to the destruction of the demand side of the equation. we saw oil pulling back because we're concerned about the loss of ref

everybody is focused on janet yellen, but mario draghi has been known to go off script. he's said some interesting comments in the past that have moved markets what you are looking for today? it could be a quiet friday or a volatile one >> i'm hoping it is a very boring friday. one is always suspicious of that sort of thing. the stock market is a bull market i have found it impossibly overpriced i tend to be skeptical of it nonetheless it has moved from the lower left to the upper right for years upon years upon years. it will continue to do so until it stops as far as the expectations today from mr. draghi, i hope he has, as he has said in the past week, that he has no major announcements to be made we expect to see something from ms. yellen, probably some timetable as far as the reduction of the fed's balance sheet. i'm hoping there's very little i'm hoping for boredom boredom is far better for me as far as i'm concerned >> going back to monetary policy there's been a put underneath the market that has attributed to this. if you mroef the pyou remove thu don't get the

janet yellen and mario draghi will be there. expect them to suggest what their saddlebags could be doing. one of the things that will be on janet yellen's be doing. one of the things that will be onjanet yellen's mind is the weak dollar? that is right, and how it feeds into inflation expectations. we have seen some softening in inflation. the rate has been risen three times in recent months. that hasn't been felt on the us dollar. we talked about nafta at the start of the programme. and clearly, president trump's threats to scrap it entirely. it will be interesting, given what we have also heard this morning, that the chinese great wall motor company are asking for a meeting with fiat chrysler, will trump be happy about this? well, i don't know, is trump happy about anything at the moment? you would have to say not. this is another thing he will want to try to protect, the great us manufacturing economy. it is about the headline. not necessarily the intricacies of the deal. the psychological element? another chinese corporate ra

fed chair janet yellen are set to talk about the global economy and if they are ready and company to start unwinding massive sheet, live report from london in a moment. the market rising slightly this morning. dow is up 11, nasdaq is up 7, the nasdaq higher on the week for the first time in five weeks. you're watching fbn:am. so we need tablets installed... with the menu app ready to roll. in 12 weeks. yeah. ♪ ♪ the world of fast food is being changed by faster networks. ♪ ♪ data, applications, customer experience. ♪ ♪ which is why comcast business delivers consistent network performance and speed across all your locations. fast connections everywhere. that's how you outmaneuver. your insurance on time. tap one little bumper, and up go your rates. what good is having insurance if you get punished for using it? news flash: nobody's perfect. for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch and you could save $782 on home and auto insurance. call for a free quote today. liberty stands with you™ liberty mutual i

janet yellen and mario draghi meet in wyoming. we