would you take yellen's speech or mario draghi's? subadra: mario draghi. krishna: mario draghi. matt: mario draghi. jonathan: who is at jackson hole next year -- chair yellen or chair cohn. subadra: cohn. krishna: cohn. ee.t: is three for thr cohn. jonathan: guys, it has been great to have you with us on the program. thank you very much. from your, we will see you next friday. to our viewers worldwide coming up and watching "bloomberg real yield." -- to our viewers worldwide, you have been watching "bloomberg real yield." ♪ ♪ track your pack. set a curfew, or two. make dinner-time device free. [ music stops ] [ music plays again ] a smarter way to wifi is awesome. introducing xfinity xfi. amazing speed, coverage and control. change the way you wifi. xfinity. the future of awesome. vonnie: it is called 30 p.m. in new york and 5:30 p.m. in london and 12:30 a.m. in hong kong. i vonnie quinn. -- i am vonnie quinn. welcome to "bloomberg markets." ♪ vonnie: from bloomberg world headquarters in new york, here the top stories on the bloomberg from around the world that we are foll

mario draghi says we are watching inflation, we have to be patient. he is being stopped more, and governor kuroda is not going to move at all because inflation is so far from target. i wonder if the federal reserve continues on this path, if it is different from what everybody else is doing. alan blinderke to from jackson hole, he said he would not want to raise rates until inflation is clearly -- not just ending the decline, but actually starting to rise again. it is an interesting thing to watch. we will look at the september meeting with rob kaplan from the dallas fed, told us as well he is waiting to see if there should be a rate hike in december, he does not rule out an earlier rate hike. there is a possibility it could rise, but i think this is something that has been brewing for a while. mario draghi was surprising. kuroda says inflation is so far from target it is not a surprise. su: thank you so -- betty: thank you so much for that exclusive interview with governor kuroda. more headlines expected to continue to pour in over the next few hours

are they as worried as mario draghi? catherine: there are differences in views it policymakers have been more protectionist. some academics don't seem to think there has been such an increase in protectionism. but there has been. there has been a rise in terms of barriers and a less market opening than in the past. that up to less opportunities for trade to play roles and investors to play roles in promoting productivity growth. rhetoric does matter. it is not just action. rhetoric matters because it creates an environment of uncertainty, businesses are less likely to engage in international trade. if they are not sure what the rules of the game will be at the market sector. mike: that was a major topic. whether it benefits or hurts people. there was an interesting point made that a lot of people took note of. all those things are potential problems that central banks can't really address, but the pressure on central banks to do something about it from a disaffected public could lead to policy mistakes. what did you thin

jonathan: they gather in jackson hole and they hear from mario draghi. 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. >> walking on eggshells. >> everything to gain is so dependent. obviously if the euro zone was to show any signs of rolling over, 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

janetahead, more on yellen and mario draghi. we look at what investors are hoping to hear with bank of america merrill lynch. haidi: plus, we analyze the inest incremental tick up japanese inflation, painfully slow still. this is bloomberg. ♪ ♪ haidi: this is "bloomberg markets: asia." i am haidi lun in sydney. rishaad: i am rishaad salamat in the hong kong. policy makers meeting in jackson hole, most major currency pairs little changed. sees the dollar correcting higher, possibly against the euro. great to see you. what gives you this idea? something i have noticed, a change in sentiment towards dollar strength. what would be the foundation? >> if you think about the terminal fed funds rate, where it will be when it finishes its tightening cycle. that is low, peak pessimism around the u.s. the majority of the people thought it would be around 2.5%, incredibly low compared to the eurozone. that is the foundation. look at quantitative and positioning metrics, it does scream out that dollar positioning is extreme. rishaad: we

♪ 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

ishink mario draghi concerned about two things. number one, the fact that inflation is still below target there. and he's also wondering about what the impact of the strong euro will be on exports, will be on the european economy. think, underscoring what people have said about the divergence in different stages. we'll get q&a at the end of this . we will be watching very closely and i will be back later. we will see what we can glean from mario draghi in jackson hole. julia: a lot of questions being asked about whether or not there is concern. we should make that point. and many ecb meetings, i pondered this myself. it is doing work effectively. when we talked about the possibility deciding to retrace qe at this point. they are kind of doing the work for them here. >> most people we are talking to say that the euro will strengthen this year. isardless of what draghi today. most investors and analysts say the euro is strengthening because of stronger european fundamentals. julia: is it a euro story or a dollar weakness story? >> it

ira: i think what mario draghi wants to do is play with the themes that have been talked about this conference wants to focus on, things like regulation and are there things the central banks can do to stimulate the economy. 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

janet yellen and mario draghi meet in wyoming. we

i want to get your take on what s had to say and mario draghi. mario draghi saying it is useful. gary shilling: let's admit he is not going to say what we did did not work. there are two basic problems. the central banks have been very poor forecasters and forward guidance and evolve forecasting and they have way overestimated inflation and the time we were going to raise rates. and the fed and other central banks as well. thebasis of four with guidance forecast, they have been very poor. secondly, we have researched this. 1993, 1994, the said raised from 3% to 6% in about seven months, double-dip, quite -- double it quite out of the blue. we looked at the volatility of notes and bonds versus what has happened since december 2015 when they had for guidance and only goal of 100 basis points. the volatility was less than it has been now. there are other factors, obviously. forward guidance, i don't think has really dampened volatility and if anything quite the opposite. francine: gary shilling stays with us. later this week, while we are live in jackson hole, we will kaplan.her and

draghi -- for the nuances of language over in jackson hole from mario draghi. the president of the united states tweeting yesterday a rebuke to the grand old party. you are seeing london hang on to some gains. we will wait to see the outcome on the commodity complex of hurricane harvey as it hits land in the united states. tocks are just beginning prevaricate. should we talk about germany? matt: let's do that. less than a month until german voters cast their ballots with angela merkel leading the polls. possiblethe range of ruling coalitions after the september vote is likely to be the broadest yet with merkel's block ahead. joining us now is an exclusive interview. wolfgang fink, the co-ceo for germany at goldman sachs. you are involved in an event today with the chancellor. that is one of the reasons we .anted to bring you on supporting the refugees for which she took so much flack initially, but seems now to be have result -- absorbed relatively well. wolfgang: it is an interesting enterprise we are partnering with that supports learning and education for re

markets, mario draghi will step up to the podium. according to an ecb spokesperson, draghi intends to stick to the theme of the event, fostering a dynamic global economy. joining us now from new york, u.s. economic research at citigroup. did we hear anything from janet yellen that might move the markets in any way either now or further down the line, andrew? andrew: i really do not think so. i think the surprise was very low. expectations coming into this about as low as they had been in memory. we got a speech that focused on monetary matters. what did you make of our comments regarding financial regulation and how many should not be rolled back? how much does her voice counts in this particular debate? andrew: i think her voice counts potentially quite a bit as the chair of the fomc, and there is a potential she continues as a chair of the fomc so they have to take that seriously. we do have a new nominee for the vice chair for bank regulatory matters. we could hear a slightly buterent tone from powell, in general, you will see mor

it wasn't really mario draghi related. this was on the back of pmi numbers, flash numbers for august which with by in large better than expected. except for the services number for the eurozone that came in at 54.9 a touch below expectations when it comes to manufacturing those prints were larger than expected 57.4, and 55.8, also a touch higher than anticipated. i think there was a big surprise coming out of germany. we saw that economy and the eurozone economy at large stalling when it came to the last july pmi numbers. there was a sense of plateauing, but the german pmi numbers, the manufacturing print, that saw quite a bit of a jump that led to this slight rise in the euro/dollar. what do you make of the pmi numbers? we thought there would be slowing, leveling off. are you surprised there is a pickup sooner rather than later? >> i'm not surprised you're right to highlight the point that some softer economic data recently has made people question whether the economy i losing traction, whether the currency is having an e

and the big highlight is a with janet helen and mario draghi. the big highlight is actually monday -- my producer forcing this in the solar eclipse on monday. solar eclipse or jackson hole for you, sir? >> solar eclipse. jonathan: the ecb or what is happening with mario draghi? it was meant to be the main event. we weren't getting the kind of news in terms of tapering. then, we saw the accounts from the ecb's last meeting, but they are concerned about a euro overshoot. it aids the risk a little bit, has the risk diminished for you guys? >> i think it has a little bit. i think the problem is that everyone wants to talk about having a strong currency, but nobody wants their currency to be that strong. i think the rhetoric will be dialed down a little bit, but again, the ecb is clearly the wildcard in world central banks. jonathan: a lot of people say the ecb holds the key to global rates? does mario draghi holds the key to global rates? >> in my opinion, yes. what they are going to be very careful to do is to not rattle the markets. if you see a d

the big story is jackson hole yellen and mario draghi both speaking today what can you expect? joining us is david rosenberg. we had a bit of an argument earlier this morning on whether draghi or yellen was in a tougher position as it relates to facing mandates and issues, and getting out of this super easing policy. which would you say has the bigger challenge >> i would say that probably janet yellen does. i only say that because mario draghi, you know, clearly is facing a situation where at least inflation there is heading towards the target it's taking a long time, but at least that's happening here you have the fed where inflation is heading in the opposite direction yet the fed is trying to convince everybody that they still have another rate hike this year in their arsenal if janet yellen's speech today was about price stability instead of financial stability, she would have to come clean and explain why it is that inflation continues to surprise to the down side and not just because of a couple of idiosyncratic sectors doing it this inflation trend is quite broadly base

alan's point was, looks, why would mario draghi, believe -- all the way to -- why would mario draghi come all the way to jackson hole if he is not going to send some kind of message? kathleen, thank you so much. .oining us now is ed shing first of all, good morning. good morning. francine: this is the inflation chart for the boj. and white ishe boj the one that is struggling the most. if you were to ask question to any central banker in jackson hole, who would it be? ed: mario draghi. i would ask him if he is really concerned about the euro. clearly, it is having an effect. if you look at the asset prices in the eurozone, they are coming off. you are a pound investor, you're very happy. if you --at what point is this going to hurt the economy? therefore, does the work of tightening -- francine: if you are a german exporter, you are ok, i presume, with the euro level, but not if you were a french or spanish exporter. ed: i think we shouldn't exaggerate too much. it depends on the way you are exporting. basis, then year trade is 5%. it is not that dramatic yet. even if you look at euro

or should we expect fireworks from the fed >> i would think mario draghi will be careful. the ecb's meeting in just under two weeks. if they want to make big statements about tapering, i suspect it would be more likely there. though one never knows in terms of monetary policy, again, i think he'll be careful. we've seen a range of mixed data, as we were talking about earlier, strong growth data, but weak inflation data. i don't know if there's anything new for him to say today on that i suspect with mario draghi on the monetary front, it will be relatively calm. yellen could be more interesting. there are a number of key issues floating around. she has used the jackson hole symposium to make major statements before. but i think are a couple restraining issues one is the debt ceiling deadline coming up at the end of september, mid-october that could disrupt markets i don't know if you want to make strong statements going into that so i suspect she's more likely to focus on what the topic of her speech is, which is financial stability and perhaps -- what i'll be interested t

we are going to bring you mario draghi's speech. it is live from germany, where he addresses the sixth meeting on the economic sciences. he is due to start speaking in just a few minutes. ♪ manus: wpp have sent a warning shot to the marketplace. the stock is down 9.41%. bloomberg is speaking to the ceo on the phone. saying it is a very tough business environment. the second quarter was tougher than the first. that stating perhaps a very obvious statement. he does go on to say there was a seminal event in q1 which was forfailed kraft bid unilever. reverberated throughout the industry. that hit advertising spending. if we go back to the context of what wpp have said to the market, they warned that spending coming through on consumer goods companies is where the real pressure has been. it cut its full-year forecast amid lower spending by customers in consumer goods and manufacturing. let's get your business flash. sebastian salek is standing by. sebastian: let's get more on that story. shares have fallen by as much as 12%. that is af

janet yellen spoke at jackson hole and mario draghi will speak later in today. janet saying any changes to financial rules should be modest. secretary, aign leading backer of brexit, acknowledges that britain will have to pay to leave the eu, well he terms continue to get softer and softer? the money behind the mayweather macgregor mega fight, the biggest financial winners from the tomorrow -- by tomorrow. -- fight tomorrow. one of the biggest in recent history. upopean equities, stocks are . what do we need to do to finish higher for a second consecutive week is rise at least 0.07%. we are 0.05% higher. week,do rise for a second the best run since mid-july. janet yellen did not address monetary policy. you have seen the stoxx 600 come off highs of the day and up for the third weekly gain in four. german corporate customer is weakening slightly in august, suggesting mild nervousness along how long europe's biggest economy can hold its growth spurred. spurt.red -- earlier of germany showing gdp is strong and government spending driving gdp, up .6% in the last qua

. >> i will pay more attention to mario draghi. --i don't expect yannick janet yellen to say anything. speechan: why is the drawing so much attention? his last appearance was three years ago where he laid the groundwork for the qe program. now it's kind of the reverse. the story with cb, does that really hold the key? among the growth in the central bank, if you look at the behavior of 10 year bonds, there is a huge degree of skepticism from the markets that these asset purchases will slow down. >> i was going to say the same thing. there is potential tapering and >> werket may selloff in are talking about .1%. is that skepticism wanted at this point? have we been conditioned by the mistakes made it ecb before? >> i don't know if it's a prudent course of action. david: what about this? it looks like they set this up to say this is what we will do until december. what happens in january? justify bonds at this rate? expectations, the careful to give it some wiggle room into the fourth quarter 2017. i think that's completely correct.

what are the questions we're looking for answers to when we get the speech from mario draghi? >> well, what everyone would want to hear from draghi is some clarity about how the e.c.b. will continue in the course of 2018 from its unconventional monetary policy, most notably large asset purchases. but this is most likely not going to happen. the e.c.b. council will meet in september and most likely draghi won't want to up front the discussion governors will have at that time. jonathan: has it stopped him before, he boxed in the governing council before. he did this three years ago at jackson hole, why is the time different and why is the topic so much more sensitive about removing accommodation? alessandro: very simple. that is because of the time identity draghi 2014, felt he probably needed to jolt the council into action in what was a rapidly changing, almost emergency situation where they were slowly sliding towards inflation. right now, the euro economy is doing well and growth has been surprising on the upside. there's not so much inflation but at least there are signs it

people were expecting janet yellen and mario draghi to mention something. they steered clear of policy and both have meetings coming up where janet yellen is likely to announce a balance sheet change. i don't think she wanted to front run those discussions. the debt limit issue, a potential government shutdown on october 1. that they alter the plan. officials saying thatcial could change the calculations for the fed. >> are you talking about rate hikes are the balance sheet unwind? .> it is the balance sheet on the rate hike, they are not there yet. you have seen this divide in the fed, a debate around inflation. even in jackson hole, officials said we have to keep moving and the slowdown is transitory. other official said we can afford to be patient because we are talking about one more rate hike. i think that is put off until december. even though they would like to give the thought she in december, it depends on how everything unfolds, especially with respect to debt limit. , layingly on the speech out whether or not she is going to remain as the fed cha

ecb presidentnd mario draghi meet in wyoming. we begin with a big issue, a day of -- and amazon joins in. >> that is the elephant in the room for us, what are they going to be tomorrow. >> it is concerning, but from a credit perspective you have an opaque business model. you don't have a lot of disclosure to the markets and that makes it tough for us. identity make you see across the market, still after we are well into a fed hiking cycle, the borrowing costs are still near the lowest they have ever been. it remains a good time for corporations to borrow money. >> there is an ongoing demand for yield. the fed has gone through a process of slowing downward shoot adjustment. it's happening at a glacial pace. >> all of the companies have taken advantage of huge demand so they are issuing long bond at tight spreads. so, the corporate market has extended quite a bit. >> central banks around the trillione brought $60 worth of assets. they have to buy something and go somewhere. joining us, let's talk about the 40 year security that ama

will mario draghi talk down the euro? both did not happen. --jackson hole tends to be shery: not all the time. >> that was four years ago. yellen spoke about the deregulation and place. is precious given that bankers have brought like there is no tomorrow. they are telling the banks, don't you dare do something like we have done. it is fair interesting. shery: politically it was interesting. >> possibly i would have done the same. i'm not saying they should not have done quantitative expansion . the second part is mario draghi told us what we heard before. cap psy will raise, perhaps i will not. can show you with my fingers what an taking out of jackson hole. , and major central banks if somebody tells me what is the direction of interest rates, i will tell you flat, flat, or flat. willmeans janet yellen increase and mario draghi said perhaps not. shery: you missed a fourth option? this way. i will throw up a chart right 9433. >> really? shery: take a look. this is what we are talking about. the negative yield is climbing. one of our reporter

yen committeethe ecb president mario draghi speaks at 3:00 p.m. new york time tomorrow, just a few hours after the fed chair janet yellen. euro traders do seem to be gearing up for volatility heading into that speech from oreo draghi tomorrow. abigail, what is it looking like out there? abigail: the markets are wishy-washy. mix trading. we've been watching the averages move between small gains and small losses. it appears there on hold before janet yellen speaks at jackson hole tomorrow. with the exception of fed chair ben bernanke back in 2010 when he alluded to the possibility of qe2, nothing new comes out of the speeches but investors are waiting for clues. at one sectorook under pressure. this is the consumer staple index. we see over the last two months, it is down about 1.7%. taking a dip lower at its lowest level today since july 24. those lower lows could be bearish. it may suggest there is a possibility of more selling ahead. as for what is pressuring consumer staples, lots of packaged food makers. s&p 1500 have the been screwed index dow

. >> mario draghi took this opportunity not to signal what the ecb does or does not do next. he took this more as an occasion to talk about what the big challenges are globally. he is especially concerned about openness. he is concerned about protectionism. makeconcerned about how to multilateral cooperation sustainable, fair, equitable. when it comes to the currency, you can take away that either mario draghi is not concerned about the euro because he did not explicitly single it out, but on the other hand, you could say, mario draghi is going to wait for the next ecb meeting, or mario draghi doesn't want to fire up the european bull. you know how currency markets are. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. loaurewo bank noble -- the weeks's top business headlines. samsung reveals its latest galaxy note smartphone, hoping to a race memories -- erase memories of its last phone. this is bloomberg. ♪ julie: this is "bloomberg best." i am julie hyman. let's continue our global tour of the week's top business

does that take the thunder from mario draghi? mohamed: no, i think if anything it shows they are going to win. and this currency like a hot potato in a global economy, no one wants it. if you end up with it, it is a problem because it undermines competitiveness. it is heavy to growth, and increases inflation when you don't get the inflation you want. at the same time mr. draghi has to respond to other things he is seeing in the economy and politically. so if anything what you saw from the minutes yesterday, very much increasing my interest in what he is saying. reporter: let's talk about what they will ultimately do. we know at some point in the next couple of months and what we understand from the most recent report they want to hold off. they communicate to the market, what that will be. qe at the current pace, what is next? mohamed: i think less qe will be very gradual. you will see central banks remaining cautious. you will see central banks erring on the side of being bullish.at any of -- and i think of this image that centr

be the stands that mario draghi takes. theight try to buy time for ecb waiting for a post-brexit take sure of britain to emerge and the strengthening of the pound and also the fed to get on its front foot, even announcing the withdrawal of funds from the global system. we will most likely see a stronger u.s. dollar, so either of those countries could do the work that the ecb needs done and the currency markets, therefore a neutral stance is an effort to it for those positive developments for the euro. risk we willre a get a more hawkish message out of janet yellen given that she is taking on financial stability? this is for bloomberg subscribers only. check it out at tv . in the past, janet yellen has not use jackson hole, but with her term expiring in january and talk she will be replaced by gary cohn, she may use the opportunity to speak truth to power. they have not refrained on calling on policymakers to pull the fiscal levers given that it is potentially her last meeting. that she impossible will call on policymak

paying more attention to mario draghi.

that mario draghi was setting policy. moreu did get a much change ecb, that could market sentiment towards expectations and i think expectations for the euro. view is-term equilibrium for the euro-dollar is 133. we think every 4-5 years a currency goes back to that. believe that the euro is cheap on a long-term valuation basis, which the current level would suggest, it would probably mean we get back to that 133 level quicker under a hawkish leadership then we would enter a more dovish leader such as mario draghi. guy: we will talk about this later. a lot of expectations at the moment. kind of the project moving for. stephen is going to stick around. the global head of fx strategy. we were going to carry on the conversation on bloomberg radio. stephen will be joining matt and i on bloomberg radio as not :00 a.m. london time. -- 9:00 a.m. london time. we are to be having that conversation very shortly. this is bloomberg. ♪ ♪ matt: i am matt miller in berlin. he on spin off universe plans to increase the dividend by mor

the ecb president mario draghi was a busy man -- this week. before delivering his best before delivering his speech at jackson hole, he addressed the economic sciences before an audience that included 17 nobel prize winners. two of those laureates spoke with bloomberg television about on monetaryments policy. >> obviously they have a problem, in the sense that quantitative easing was an experiment in our modern times. quantitative tightening will also be an experiment in our modern times and, that means that they have to decide what rate and how to reduce the large balance sheet that they currently have. secondly, how that interplay's with increasing rates. i think at the current time the markets tend to be saying in a sense, let us wait and see and watch them evolve, that process of reducing the balance sheet and increasing rates. my view is that the threat of inflation tends to be muted and that gives them more degrees of freedom to experiment, and to see how to reduce the balance sheet size. and not do it precipitously or with the great thr

on the other hand, you could say mario draghi is going to wait for the next ecb meeting or mario draghi doesn't want to maybe fire up the euro bulls by indicating he will slow them down. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. plus, a size up on mario draghi's assessment on qe and two fed president's share their outlook from jackson hole. coming up, more of the week's top business headlines. samsung unveils its latest galaxy note phone, hoping you -- hoping it can erase members ories of the previous model. >> it has a very large screen, large display. it is the biggest phone yet. julie: this is bloomberg. ♪  ♪ julie: this is "bloomberg best," i'm julie hyman. let's continue our global tour of the top business stories with a clash of investment titans. billionaires carl icahn and and bill ackman dowdell on the future of herbalife. david: herbalife, it may be the stock that has the highest ratio of mentions the market cap of any public traded company in the past few years and is back in the news today with an announc

on mario draghi's side, he will talk about the path towards normalization. not put much emphases object currency if the currency came in that would be news. >> the political headlines out of washington, the concern over the prospect of a government shutdown, president trump threatening he will shut the government down if a border wall between mexico and the united states is not paid off what are your thoughts on this shutdown happening and the impact that could have >> i don't wanted to be forecasting plitt kaolitical developments like that but it's not in our forecast that we'll have a disrpuptiondisruption i think if we had a volatile disruption in financial markets, that could slow that down. short of that, don't think we'll see the fed delay on that front. we're not looking for the government to shut down, but certainly the risks are there. >> bruce, we consider the global picture, of course that will be discussed this week at jackson hole the similarities in europe as there are in the u.s growth numbers and unemployment numbers are encouraging, but no i

martin: it is a difficult situation for mario draghi. last time he talked a lot about the exchange rate and the euro being overvalued. of 2014.in the spring then he had some ammunition. that worked. this is why the euro then depreciated over the next nine months. this time around, he had very little ammunition. if he talks about the euro being too strong, what is he supposed to do? can he further weaken monetary policy? probably no. i think that the main reaction on the part of the ecb will be to keep the announcement of tapering, which is probably going to come in september, october, in a combined communication, as dovish as possible. for example, a statement that goes like, we have decided to extend our monetary policy measures beyond the end of 2017, and then say, we might decide to reduce monthly purchases. that would be quite a dovish statement. martin, what is fair value for the euro? you could argue that 1.20 for germany is not that high. martin: this is a one-size-fits-all currency. it is very difficult to handle. for germany, th

very different situation for mario draghi at the ecb. they are about to embark on a tapering process. they will have to explain how they will do that. the economy there is more fragile than the u.s. from a structural perspective. i think that mario draghi comments will have much more information content at this stage then janet yellen. >> take those comments we anticipate and put them together with the accounts we got this week. how much did they take away from what draghi might be saying? they're saying they're nothing evidence of inflation and the strength of the euro. does that takes some of the thunder away from him? >> no, i think if anything, it shows the dye lemma there -- a dilemma they are in. strong currency is like a hot potato in the global economy, no one wants it. if you end up with it, it is a problem. it undermines your competitiveness, it is a headwind to growth and it depresses inflation and a time when you were not getting the inflation you want. at the same time, mario draghi has to respond to other things he is seen

. >> mario draghi took this occasion not to deliver a policy message, not to signal what the ecb does or does not do next, or when. he took this more as an occasion to talk about what the big challenges are globally. he is especially concerned about openness, and is concerned about protectionism. and he is concerned about how to make multilateral cooperation sustainable, fair, equitable. but when it comes to the currency, what you can take away is that either mario draghi is not concerned about the euro because he did not explicitly single it out. by not singling it out, you could say he is not worried. on the other hand, you could say mario draghi doesn't want to maybe fire up the euro bulls by indicating he will slow them down. julie: still ahead as we review the week on "bloomberg best," ireland's prime minister weighs in on brexit. plus, two nobel laureates size up mario draghi's pronouncements on qe and twos fed presidents share their outlook from jackson hole. coming up, more of the week's top is this headlines. samsung unveils its latest galaxy note phone, hoping you can erase

let's talk about mario draghi. he did not talk about the euro or the impending ecb meeting which takes place at the beginning of next month. it leads us nicely to his speech on friday in jackson hole, wyoming. nuggets mightwhat he giveaway on friday about potential ecb moves, or even talk about the euros recent strength? >> i think that what will be discussed at jackson hole, while the title of the symposium suggests important things for the world economy and financial markets to be discussed, i think what will be common terms of the financial market, the outcomes may be a bit flat and not really causing much in the way of volatility. with all due respect to the ballot -- very talented speakers i look forward to, the flyfishing conditions around jackson hole are going to be equally engaging in terms of relative to what will be said at the symposium. becauseat not flyfishing is not only interesting but also it has to do with qe and the theory of qe was that the compression of risk premiums would help the real econom

very different situation from mario draghi at the ecb. they are about to embark on a process -- on a tapering process. they will have to explain how they are going to do that. the economy there is more fragile than the u.s. so, i think that draghi cost comments will have more information content at this stage the new yellen commented david: take those comments and put them together with the accounts this week. how much did they take away from what draghi might be saying. ? are not seeing strong evidence of inflation and focusing on the strength of the euro. does that take a little thunder away from mario draghi? mohammed: no, if anything, it shows you the dynamo they are in -- it shows you the dial-in they are in. dilemma they arte in. inflation at a time when i getting the inflation you want. at the same time, mr. draghi has to respond to other things he a seeing in the economy and politically. if anything, what you saw from the minutes yesterday, radel much increased -- very much increased my interest in what he's saying. jonathan: we k

the big ones to watch ourjanet yellen and mario draghi. both central banks doing a lot with their policy this year. janet yellen of the federal reserve, will they reduce the amount of assets they have lost tonight all the bonds they have been buying in the bonds they have been buying in the last few years, all stuck in a vault somewhere. that's how i like to think of it. it's been ten years since the crisis, starting to reduce that will have an effect on the market, specifically longer term government bonds in the us. they suggested that they would do it so slowly and other such a long period of time, some of the bonds will mature and disappear anyway so we will not even notice. that's a bit ofan will not even notice. that's a bit of an overstatement and i think we will notice in the market. we will see yields and interest rates over the longer ten or 30 year bonds will go the longer ten or 30 year bonds will 9° up the longer ten or 30 year bonds will go up because there is less demand from the big buyer, the federal reserve , from the bi

after see this dip reports that mario draghi it would not talk about policy at the jackson hole and we have stayed lower. what a bank knew was just -- vonnie new was distractions. the president facing growing criticism against his own party with equating neo-nazis with higher desk with counterprotesters. the new chief of staff what general donald kelly sat quietly with his arms crossed. "the new york times" says gary cohn is "disgusted" about the president's comments. joining us is white house reporter for bloomberg news and the most recent sort of condemnation of with the groups we have is a second statement from senate majority leader mitch mcconnell out. apparently related to a planned rally in lexington, kentucky. another gop member breaking from the president and a very important is one when it comes to the legislative agenda. what happens next. -- what happens next? >> exactly right, this issue is not going anywhere. we saw the protests over the weekend for without the first statement from president trump -- and don'tdly tuesday, he reverted back to the ontement on saturday -- an

did you think we would get huge signals from mario draghi and the ecb in jackson hole? >> we thought it was possible. even if we don't, we will have an ecb meeting, at that meeting mario draghi will indicate further tapering the qe program will end a year from now, the first rate increase is a year after that. even as they taper t will ab gradual progress we look at the chart, we had short covering to 1 stnt .12, ad since then buying. >> the prospect of tapering has spooked equity markets quite a bit since that famous speech the ecb tried to play down those expectations of imminent tapering and trying to taper the language that's what they're doing once again today by relaying to tohoe sources that there will not be fireworks at the jackson hole symposium. it seems that the market is not buying the message from the ecb. >> the ecb is treading a fine line if we're too hawkish we get a situation where bonds sell off if they taper four far longer than expected, that will imply weaker growth. at the moment we think equities still look cheap even as the likelihood of taperin

when it we going to hear back from mario draghi? walking on eggshells the last hours coming to policy in his speech last night. take a look at volatility across currency markets. there is a lot of anxiety on where currencies are going to go, where the euro is going to go. we did see a little bit more upside heading into the speech from draghi. the spread between the 1, 2 euro volatility has widened. it is very different from what we are seeing with the yen, the cad, the pound. hang on for the traders. betty: even after his very carefully crafted comments, yvonne, you still saw the euro rise. it really is quite a conundrum for them where they have got the economic conditions in europe rising as well as the euro itself, which has been tightening since the speech in june. the big question is going to be what does he follow up on coming this friday and how does that compare to what janet yellen is going to say? a lot of scuttlebutt in the markets about what we will hear from the central banks. what will come out of that is that nothing