tv Charlie Rose Bloomberg September 17, 2015 6:00pm-7:01pm EDT
rishaad: you are watching a bloomberg tv special. asia reacts to what has been the most anticipated fed rate decision in years. we are joined throughout this hour by our chief asia economics correspondents. if you're just looking up to the news, janet chose to keep rates unchanged, near zero. that is where they have been stuck since 2008. she and her colors remain worried about downward pressure on inflation. -- she and her colleagues remain worried.
yellen: the committee judged it appropriate to wait for more evidence. s&p raising an earlier advance. where treasuries are concerned, huge rally. the dollar tumbling to a three-week low. slowing economy and stock market volatility were a big factor in the fed's decision. we look ahead to the start of the asia-pacific trading day. yo, america's 7 years of eas money will continue for the time being in what has been the -- is the most important meeting since the financial crisis. the committee kept interest rates unchanged. u.s.ugh conditions in the are robust enough to consider a rate hike, the global picture is more uncertain and more time is needed before liftoff. janet yellen: the recovery from
the great recession has advanced sufficiently far. and domestic spending appears sufficiently robust. for an argument can be made a rise in interest rate at this time. haveabroad appears to become more uncertain of late. and heighten concerns about growth in china and other emerging market economies have led to notable volatility in financial markets. in light of the heightened uncertainties abroad and a slightly softer expected path for inflation, the committee judged it appropriate to wait for more evidence, including some further improvement in the labor market, to bolster its confidence that inflation will rise to 2% in the medium-term. rishaad: the federal reserve the janet yellen news conference in washington. majorwhat are the fed's
concerns as we look ahead? fed: you know, i think the is clearly concerned about the international outlook, as they referenced. they are concerned about the strength of the dollar. they are concerned about the dip in commodity prices. they are really looking at whether inflation will pick up tho the 2% goal. rishaad: there are inherent risks in this? what is the risk in delaying this interest rate increase? one major concern was not lifting rates in september when a lot of people, economists and market participants, both of them had expected it. so the major concern is that people are going to look at this is say, hey, look, the fed responding to uncertainty. if we know policymakers are areerned about a, b, c, we
confident they are not going to raise this month. that is the risk that markets think that the fed is more easy to dupe than it is. it could end up being controlled by marcus later down the road because they are trying so hard not to surprise them. the risk is really just how the markets understand the fed's reaction. rishaad: going into this december was the month it was favor for a rate hike. is that still on the table? of the economists we spoke to said they are shifting to december. we also think -- seeing some people shift back into the first quarter of 2016. it seems december is squarely on the table. pointed out that most of the committee members expect to raise interest rates this year, which means it has to be october or december. but this is sort of causing the balance of risk to shift into
2016 for some people it seems. can you tell us from today's meeting, how has the fed's view on inflation evolved? jeanna: it was really interesting in today's meeting. that janet yellen talked about needing to see some of these international and external risks play out to cf inflation -- to cf inflation is going to reach the fed's target. inflation expectations seem well anchored. but definitely seemed a bit more concerned about inflation and lower inflation then maybe we have seen in the past. rishaad: what about the economist you have been speaking to/ what are they making of it all? jeanna: a lot of the economists say that this was a dovish statement. goingy did they -- into the meeting, a lot of people were expecting no rate hike but a strong signal that
the rate hike would be eminent, or rate hike and then a strong signal that rate hikes were going to be gradual. we did not get either the dovish or the hawkish scenario today. we got a dovish scenario which they did not hike rates or signal that a rate hike is imminent. and so, i think that economists are making of that that this is a purely dove statement, maybe shift the risk for 2016 a bit. overall, we don't -- i think a lot of economists have brought up that we do not really know what the fed is looking for going into this next couple meetings. which i think is going to put more onus on fed speakers between now and october and now and december. rishaad: thank you very much. in washington, d.c. liftoffsion to delay had an emerging -- an immediate reaction on fund markets. looks at has all the
the action on wall street. what do you make of it all? su: big bond reaction. stocks initially rallied. trader, you one saw the real reaction was fed chair janet yellen began to speak. perhaps she is not the best communicated, because that is when you saw the market really start to gyrate. it was expected largely, that the fed would not change rates, but yes, there would be a hint of one coming soon. no one expected that they would come off as wet is being described as ultra -- as what is being described as ultra dovish. that is what cost a lot of the selloff in the stocks. and the dollar dropper. if they do not raise rates, what does that tell you about the economy? as fed chair janet yellen explained that fed's views, particular concerned about the international risk, yet
treasuries rallied. yields falling. the dollar also fell. but at one point there was a bounce. again, her concerns about inflation remaining well below target rate. that improve labor markets may bolster confidence. were perhaps expected. raisedre were questions about how bad do they think the global economy is that they are sounding this damage? vix, by the way, the lowest since late august. we also had trading near 47 a barrel on oil. supply drop.ected goldman sachs saying that commodity prices can remain low for 15 years. where does the market focus now is the question? is onay is on the -- it the problems seen that is causing the correction we had at august are the weakness in china and other emerging markets. and it's notable that you had yellen speaking not just about china but of about all -- but about all emerging markets.
a lot of focus is going to be on this. it will be interesting to see how the friday market -- the second day reaction -- what that does to stocks in the u.s. rishaad: thanks for that. particular focus for the fed this month. for more let's bring in our chief asia correspondent. enda, where are we now? enda: it is probably a little bit of good news in asia, because it least it is -- won't put further downward pressure on their currencies. sure, you can argue japan would complain about a bit more softness in yen. malaysia and indonesia have to be wary of capital outflow. so, the fed not tightening takes pressure off. rishaad: these weakening commodity prices playing their part, too.
enda: what is fascinating about the statement is it is one of the fed meetings were china dictated what the fed did. that is what we have been watching. rishaad: but, people have been getting upset about this, as though it was going to happen. it was not predicted to happen. december was the month. we are looking at 50% implied there. we were looking at 30% for it to happen this month. so is everybody -- why is everybody getting worked up about it? enda: it indicates that do. if you consider the strong view the fed would ignore china. they were going to hide in september. -- hike in september. china does impact the global economy. and the fed has said. rishaad: i agree. at the same time, we have a federal reserve that mandated to look at the domestic economy. you can't, as you say, china has rest ofn, indeed, the
emerging markets has become too big to ignore. enda: u.s. inflation, u.s. consumer, u.s. employment boxes being ticked for a rate hike. this is global to violence -- global development being china where we had currency market turmoil triggered by a change in the yuan exchange rate. and we have slowing chinese economy. and what that means for commodity prices. so, she did not say it in the statement, but to me, it reads the decision was all about china. rishaad: stick around with us. we just heard from su keenan about what is happening in the u.s. let's look at the global market and the reaction to this decision. zeb is tracking the markets. let's start with commodities first. zebq: we begin with gold, because gold getting saved by the federal reserve. we just had prices a tick over from the u.s. session to the asian session. you are looking at a two day
chart. we see a little bit of selling. gold in the u.s. session had held at a two-week high at $1 .131 an ounce. we are waiting for the trade to tick into the asian session. gold futures trading down mostly. we will watch gold nicely -- closely. extending gains to a two-week high. the rate delay leaving markets in limbo. having impact on oil prices. oil holding your $47 a barrel. two day performance here. this is the u.s. session. barrel.ing at $46.89 a oil starting the session lower west texasthe benchmark. brent crude under some pressure. down trading at 49.98, fractionally for what we saw overnight. these, the trading sessions,
rather, tipping over. let's check in on currencies, because the weaker dollar is what we have seen -- boosting the appeal of commodities. let's take a look at what we are seeing in terms of currencies and commodities. we look at the dollar index. i want to give you a sense of how that has been moving because the dollar weaker in the wake of this fed decision. as we take a look at what has been happening with the japanese eyn, this is what you have -- what is happening with the japanese yen. we saw thing of getting move when that fed decision was released. that is strengthening. now the yen is modestly lower in the session. we will watch this closely. that will have an impact on japanese stocks when japan gets underway. also keep your eye on the commodity currencies. prospects dim here in the wake of this federal reserve decision. a dovish fed -- uncertainty. on thatgaining earlier news. we will get you a clear picture
fed should nothe be responding to the ups and downs of the markets and it is not our policy to do so, but when there are significant financial developments, it is incumbent on us to ask ourselves what is causing them? of course, while cannot know for sure, it seems concerns about the global economic outlook were drivers of these financial developments. hair janet yellen.
keeping an eye on the global risks and market turmoil. curran. lwithl with enda we welcome our next guest. he's normally in new york, but he joins us from singapore. great of you to join us. let's start off with your reaction. in dovish was this comparison to the previous language coming out of the fed? >> the language was only a little bit more dovish. i think that the fed was kind of almost -- been on the point of rise, but having back off because of the impact of the global slowdown and the chinese change of policy to export their deflation. essentially, what the fed were saying is that they are worried that further strengthen the dollar could affect u.s. trading in and a adverse way. it is a fair concern to have.
i think that is one of the main reasons why they deferred the raise. i think they have postponed in these months -- a few months. the other point is the fed is still fixated with the idea of a 2% inflation target. that is not going to happen anytime soon in consumer prices because of the glut in commodities, the oversupply of manufactured. so, i think what i would be looking for is the early signs of wage growth in u.s., which we are already seeing. but i think that is the other thing the fed wants to see before they get firmly on a rate rise profile. from bloomberg news in hong kong. how big a factor do think china was in there thinking, and going forward, how important will development in china be to the timing of the rate hike? don't think it was china as such that was really the issue. what i mean by that is the fed does and will continue to set
monetary policy for the u.s. and their mandate is really around the things they really care about, which is the u.s. labor market, the housing market, the general growth in the u.s. market and how that affects the u.s. consumer, the u.s. citizen. they will be intensely focused on that. but what china did by changing their policies and devaluing the was created situation where they are boosting their economy by a lower currency. at the expense of some others, including the united states. the realnk that is fear. and if you look around the world, the policy of china of devaluation is not that different from another -- a number of other emerging markets . from indonesia to malaysia to brazil. i think the fed is concerned that potentially deflationary, potentially slowing for the u.s. economy, particularly if they
allow the dollar to rise. i see it more is about the dollar than about china. but they are very linked. rishaad: it is extraordinaire, but one member of the fomc wanted to have negative interest rates. who that was.know we cannot positively identify the individual, but what does that tell you? jim: it tells you that somebody is extremely dovish, but forcibly that is not the consensus. i personally think they probably should have raised rates this time, just because the domestic economy is actually performing pretty well. economy is no longer in a situation where it needs those extraordinary monetary policies. worse negative interest rates creates distortions long term the allocation of capital in the economy. it is not good for long-term growth to essentially have free money. it means overinvestment where it is not a great idea. interestingk it's
someone thought that, but i do think the evidence points towards a rise in rates before very long. rishaad: jim, thanks for joining us. from principal global investors. we have to take a break. the coming up, australia, the first asia-pacific market to react to that fed statement. we will go to sydney for a preview after this. ♪
what is the likely reaction? what are they going to look at when the discussion kicks off? adam: good morning. we're expecting a degree of caution in the australian market at the open today. we'looking to becoming -- to be coming off on the main index. this is largely due to the following we saw u.s. we saw a big rally after janet yellen speech. the s&p 500 was up by 1.2%. we saw that really fade and the best part of the afternoon and lost 1%. as we will see a red screen we open in australia today and see how it plays out during the day. rishaad: it was interesting that janet yellen did point out, well, things abroad in the global economy rather than just the u.s. one. is that something that people
have been noting with particular interest in australia and the rest of the region? adam: yeah, absolutely. it would be no surprise to our listeners that we are very linked to china and australia. the economy is very tight with china, but the markets are as well. yellen was noting particularly that china and emerging markets are playing a big part in their thinking. that is across all the fed members. and that is quite interesting because their mandate is inflation and the on implement rate, which is largely -- and the unemployment rate. and now they are increasingly talking about what is happening in the rest of the world. overseas markets. china and emerging markets. that is key for the fed. rishaad: stick around. i want to go to tokyo, because now, what about the japanese takeaways? what do japanese investors? what can we expect from the markets in tokyo? >> sure. i think japan just like
australia is going to open up lower. we'll probably see a sea of redin the japanese open as well. what we are looking at is how do stocks have a lot of exposure to emerging markets. for example, suzuki motor, for example. how do they trade early on? i think that will be a good indicator of the direction we will see throughout the rest of the day. one more thing to keep in mind is that japanese markets will be on holiday until thursday of next week. fund manager that has japanese shares, today is your last chance to either sell them, to maybe put on some options are futures or something to keep in mind about japan. it is the last time you can trade for about a week or so. rishaad: all right. how does this decision play into what the bank of japan did early this week or what it didn't do earlier this week if at all?
is actually aat pretty interesting comparison you can make. on tuesday, the bank of japan said hey, where holding rates steady. we will not increase monetary easing, but during the press conference, unlike yellen, the governor said, guys, everything is fine, japan is fine. china is fine. and markets went up a lot. yellen doing the opposite thing might have the opposite reaction. she said she is worried. there could be a cell of here. rishaad: thanks. in tokyo. uncertain outlook. getting more on the reason behind the fed's decisi
a look at our top stories. too soon for tightening. the federal reserve showing reluctance to end near record monetary stemless in a time of market turmoil. china slowdown in global volatility swings the decision in favor of near zero rates. treasuries and gold main beneficiaries of the statement. sending them surging the most since 2009. gold rescued from the doldrums. bolstering the case for safe havens. and stocks falling. the decision fueling the concern that slowing global growth could
have on the american economy. the s&p 500 seeing a 1.5% swing to the downside. asia-pacific futures pointing to declines at the start of the last trading day of the week. this is a bloomberg tv special on the fed's decision to keep rates on hold. i'm her shots lummus - - - rishaad salamat. fomc release the statement, janet yellen faced questions from reporters at a news conference. here is a little of what she had to say. janet yellen: the open market committee reaffirms the current target rangeercent for the federal funds rate. since the committee met in july, the pace of job gains has been solid. the unemployment rate has l labord and overal market continues have continued to improve. inflation, however, has ourinued to run below
longer run objective, reflecting declines in energy and import prices. we still expect that the downward pressure on inflation from these years filwill fade. recent global and economic financial developments are likely to put further downward pressure on inflation in the near term. the outlook abroad appears to have become more uncertain of late. and heightened concerns about growth in china and other torging markets have led notable volatility and front -- in financial markets. developments since our july meeting, including the drop in equity prices to further appreciation of the dollar and spreads,ing in risk have tightened overall financial conditions to some extent. the committee anticipates that inflation will remain quite low in coming months. andhe temporary effects --
importantly as the labor markets improves further, we expect inflation to move gradually back toward our 2% objective. rishaad: let's have a look at the currency markets and their reaction immediately after the decision. our currency reported. just, you know, what does it do? what does it change in terms of the outlook for the dollar now? >> i think for now it seems to have really derailed the dollar's rally. we had seen the dollar very very much in anticipation of the fed rate hike that just has not come. it is now down to its lowest level since it was during august meltdown caused by the chinese devaluation. so, we are really seeing that the dollar is a little bit on the back foot. however, many of the people i spoke to today said that this is
a temporary tumble for the dollar. people are expecting the u.s. economy will continue to perform well, especially relative to many other economies. and so that will actually help to modestly boost the dollar in months ahead. rishaad: salman: can you tell us what you are seeing -- enda: can you tell us we're seeing for emerging-market currencies? >> they have gained a little bit of reaming ruth -- of breathing room. in the past few months, the imf and the world bank have come out and said that the fed it is not a great time to hike. there is a lot of turbulence in the market and a lot of volatility. a potential fed rate hike could make things worse. so emerging markets are breathing a little bit of a sigh of relief today. so we did see currencies like thehungarian forint and mexican peso recover on the back of that news. rishaad: ok, what about the likes of the euro, the yen, sterling, etc. how is that going to play out for them? andn the case of the euro
other areas such as australia were central banks are relying on some easing to devalue their currencies, the central bankers might be a little bit nervous now. we are seeing the u.s. is not on that tightening path as we're led to believe before. that means the country that are relying on their currencies to region,ch as the ecb are going just to go because their currencies are not going to be as weak. that means potentially growth is not going to be as stimulated by this currency devaluation. rishaad: thanks for that. joining us there from new york. from fx to commodities. gold getting a boost from the events in d.c. david stringer is standing by with more. let's get over to houston. dan, who's watching all of this, looking at oil first of all. well, a slight move.
what have it exactly to the oil markets after the fed pronounced its verdict? dan: it took a page out of shakespeare's book. a lot of sound and fury but signifying nothing. dollar after the decision came out but retrace that. it fluctuated a lot. by the end of the day, it ended about where it started, down 25 cents. rishaad: $1.00 -- the dollar fell, which would be normal. bullish signal for crude. but it did not happen today, did it? is there a disconnect between the dollar and oil? is.here absolutely historically, there is a natural connection because oil is priced in dollars. as the dollar becomes more expensive, demand goes down and the price of oil has to get lower. but what we have seen recently is that the bearish
fundamentals, this oversupply of oil, has taken over from the dollar correlation as a main driver of price. is almost no there correlation whatsoever between movements in the dollar in the movements in the price of oil. rishaad: i guess the question has to to be where do crude prices go from here? we have got one investment banker saying that it could actually fall wti to 20 bucks a barrel. dan: absolutely, you are right. goldman sachs main commodities researchers said that it could go down to as low as $20. he expects it to be low for the next 15 years. opec, which controls more than oil production is more bullish. they think that oil could be trading in the $80 range by 2020. there is a large spread. nobody really knows. rishaad: let's get over to melbourne. we have david stringer looking at the commodity side of things. we are talking about oil but
other commodities. we have been waiting for this decision with bated breath. what is the overall response? david: morning. i think as you expect, we saw gold have something of a short-term sugar hit from the decision. that is what we expected. any indication of uncertainty in the u.s. economy sense investors scrambling for gold as a haven asset. we saw gold prices -- a two week high after the decision. been in the doldrums for some time, trading vines have been low. beenrading volumes have low. morning, extending gains from thursday's close. in the short term, this looks like the positive. but, of courese what
investors, say is there is still a downside risk. when the fed, when it does change -- choose to raise rates, that will be a negative for gold because gold does not pay interest like some computing assets. rishaad: what about the impact on producers and the mining companies? the northrnight, american gold miners, we saw them get a lift from this, the likes of goldcore. the largest gold producers were all up. be very interesting as trading opens in asia this morning. be interesting to see if the gold miners and other miners follow suit here in asia. our investorsll, taking this position as positive for commodities or is there still quite an air of caution around? david: i think you are right. i think there is still a cautious approach. that rate rise is still in the
post and the fundamentals with faltering demand in china, that is really still the big picture. china, the biggest commodities consumer. that is really the big driver, the big catalyst for many of the markets and many of the largest producers. rishaad: thanks for that in melbourne. let's bring back enda curran. what do we know today? how are markets looking at this compared to 24 hours ago? enda: rates have not been taken off the table. the risk we were talking about for asia and emerging markets yesterday are still there. there is market volatility may be triggered by a rate hike could happen later this year. janet yellen has not said she is not going to hike. rishaad: does this push it out, though? expectations now into 2016? enda: at the least, it is being read as a dovish statement. sure, it does push it back. it could still be this year. that will hang over asia for
some time. a sign of relief or currencies in the near term, but longer, the threat of capital outflow, the threat of the stronger dollar and more pressure on the our work will remain. rishaad: is that why there was one person in the fomc looking at this and saying that we should have negative rates? enda: that is all part of the consideration. for the first time we have seen inbal markets but events china and asia being a significant factor in their thinking. it is shaping the global outlook. rishaad: that was something we were not talking about going into this? we thought that fed would only look at what was happening i domestic we. even inside the u.s., inflation is not taking up. enda: they have other positive signals on consumption. domestically in america, you can rate hike.a hik we are now seeing what happens
in china impacts the global markets, and that has impacted how the fed -- gets their decision. fedaad: the body of the changes all the time. we could have a different looking fed in january. and that it can add a different complexion on things. enda: shift on, shift off. next year, we could have to recalibrate thinking as well. the clock is ticking. the window is getting tighter and tighter. you can see how some economists think they are going to push it into 26 thing. -- to 2016. rishaad: there was a 30% chance of this happening. but did the fed blank? enda: there is a firm view out there they should've hiked a long time ago. just to start the normalization process. there is a view that what would a 25 bit hike mean? it is priced in. it would not cause turmoil. it would not trigger the taper t antrum. remember the capital flows we
let's go to sydney where we had % thursday.by .1 talking to reporters in sydney, suggesting that we may see a bit of red when things get underway. joining us enda curran and our chief asia market strategist at j.p. morgan market jpmorgan.- did they blink? extent, yes. nothing has changed significantly from the past few months. the job market was getting better. growth was getting better, too. so, for them to suddenly switch away from we ar getting ready toe hike. or pull back. i think that was a surprise. obviously, china has been a factor, but to me, the weak china growth has been with us for quite some time. volatility was
important, but to me, the chinese stock market should not be a major factor. rishaad: when you were looking at the statement, does the whole thing about -- being a surprise. enda: it mentioned involvement abroad. how big a factor was china in the market turmoil triggered by china in issue in their thinking? >> i certainly think that has been an influence in this -- although in the past, that had been much less of importance. for example, when the greek they were flowing up, talking about your. from that perspective, i think china slowdown and the fact that europe seems to be losing momentum, all of that for the global growth picture put that in doubt. therefore, that gives them some ammunition to hold back for maybe another couple of -- rishaad: what needs to happen in china to console the fed? growthess we could see stabilize and industrial production. it is not going to come before
the end of the year. if the fed is really waiting for all the stars to line up, 2015 is running out of runway. see there wasuou one member of the fomc thinking about negative rates? >> it is a signal for those were expecting rates to be at 2% or 3 % next year. they are applying their academic thinking into policies. i think it is a reflection of the personal opinion of where policy should be, not necessarily where it will be. rishaad: the p.c. deflator is what they love looking at. that has been softening and softening. hang on, actually. looking domestically, we are not going to move. >> i think that is obviously one very important -- wage growth is number one. . to some extent, janet yellen -- last night, they mentioned these
measures are tempora. the strong dollar, -- these measures are temporary. so, from that perspective, we are aware these are typically factors. the question is how quickly will they disappear from the picture? ia emerging markets, we are back to where we were yesterday. the sense of anticipation, when does the fed hike? is that threat going to keep hanging over asia? >> unfortunately, yes. there are a lot of people i've spoken to who said let's get this done with. the first hike out of the way. we get that to normal. we did not get it. there may be some immediate relief, because no interest rate hikes means emerging markets can experience less of an outflow. if rate hikes don't come before the end of the year or 2016, this conversation will return. so i don't leslie think -- necessarily think we have cleared anything. rishaad: if we have sustained yuan devaluation, another 7%,
does that change the game? tai: it does to some extent. but i do not think it will be a complete game changer. ultimately, first of all, i think the yuan is going to devalue over short time. secondly, i think the disinflation or impact from china has always been there. it is never about the currency value. it is about how cheap chinese -- was for 10 or 20 years. devaluing moren over the next six or 12 months, i think that will be a game changer from the fed's perspective. enda: the window is getting tight to hike in 2015. september has come and gone. are we still looking at 2015 or pushing it back? >> i think that 2015 is looking more questionable, especially we are putting more emphasis on inflation as well as the global environment. we have got three months. or even less in terms of data points to justify the fed to
move before the end of the year. but as janet yellen said last night, we could still be looking at october's live meeting. we should see one more hike before the end of the year. we will keep that in mind. perspective,tional they've not delivered. enda: no hike at christmas? rishaad: december. do they want to be screwed? -- scrooge. enda: there is liquidity in the market. tai: the financial markets is not on her mind right now. rishaad: october -- i think that -- there is no news conference afterwards. one could be arranged. s you get a sharp spike in inflation. you have one month's worth of data. if you did not do it last night, i think it will be difficult to do it in october. rishaad: thank you. jp morgan asset management.
rishaad: you are back with a special bloomberg news program on the federal reserve. no change coming up here. #no change. #janet yellen. let's have a look at social media reaction to >> a lot of hashtags trending that the reaction has been muted from key policymakers around the world but we did get comments from economist, from people in the finance industry following this decision. financial services firm raymond james tweeting out, its chief economist scott brown saying, the key issue is not the precise timing of the initial rate hike,
but the pace of timing beyond that first move. we also have the head of u.s. macro economics -- greg -- saying #federal reserve will likely raise in december. but this will require a much, much better communication on hike and path. another person commenting on the timing of the next fed decision is an economics professor at the university of michigan, saying, yellen's claim that october is a live meeting sounds hollow. she has to say it is live. but what difference could a month make? october is not taking seriously because there is no press conference scheduled along with the rate decision that would be on october 28. we have another professor at the university of michigan saying the fed clearly made the right decision. the economy is still strengthening and global challenges present a bigger risk than future inflation.
so those are the comments coming through on social media about the fed's rate decision. rishaad: we are back with our chief asia correspondent enda curran. a final word of what has happened since what, four hours ago. enda: i think we're back to where we started. from the point of view of asia and emerging markets. when will the fed rate hike come? and what will it mean for the reasons currencies and for borrowing costs? what will it mean for capital outflow, which is so important for the reserve story in asia? we are not talking about a repeat of an asian surprise but there is a feeling that there will be pressure on asian governments. rishaad: the other take away your hat is china figures -- the other takeaway you had is china figured in. enda: it does mean that going for it for the rest of this year, we will all be watching china vis-à-vis what it means
for the fed. if china starts construction, if the market settle down and it policymakers do think things are back on track, that might be the fed -- rishaad: does that mean the decisions are pushed further o ut? has not ruleden out a fed rate hike this year. when you consider how tight the window is this year and the liquidity issue in december, you can see how some economists are thinking it is going to next year. rishaad: thanks for your thoughts over the course of the last 60 minutes. looking ahead to "first up" with angie lau. talking about the applications on markets as we look ahead to the start of the trading day in the asia-pacific. ♪
♪ >> in light of heightened uncertainties overwrote and the pat for inflation, the committee judged it appropriate to wait for more evidence. angie: holding fire. the fed decides not to move on interest rates over concerns about the global economy. market movements. treasuries rarely the most since 2009 -- rally