Pattern meeting globally at the jackson hole symposium shares in wpp jump as the worlds biggest advertising slump. Tiktoks ceo quits quiting a changing political environment after actions to ban the video app. We are tracking the hurricane laura after the storm made land fall in louisiana with a 20foot storm surge. Crude was cut ahead of the storm. Just incredible when you talk about 20 feet and the language thats been mentioned. That most of the parish could be under water and the word unsurvivable has been used some of the houses are built on stilts particularly on the texas coastline. The oil industry has been interesting. 90 shut down similar to katrina. Mostly brent that is picking up the action matched against these concerns has been the covid19 impact that has tracked the reaction in the range so you wont see the impact close to 46 on brent prices and just above 43 this morning. Not getting any traction in the read Nbcs Jay Gray from the gulf coast. The most powerful storm on the shoreline of the louisiana border from a major category 4 hurricane with sustained winds of 150 miles an hour with gusts even stronger. Up to a foot of rain in some areas. Called an unsurvival storm surge. At just 3 feet the storm can be threatening. 6 feet can smash through windows and doors. Lauras storm surge could crest at 20 feet to think there could be a wall of water over two stories high coming on shore is difficult to conceive. Laura could continue to prove havoc. We could have up to 90 mile an hour winds in little rock and then we could deal with flooding in kentucky and tennessee. Reporting for nbc news, lake charles, louisiana looking at the action this morning. Ahead of the jackson hole symposium. The fed has been embarking on the review and how to taergt the inflation and employment we may see the fundamental schang risk on assets in the area of the market where we are watching closely investors are turning shy to assets where we are seeing the u. S. Targeted black listed a number of big themes as we talk about oil. Trading lower by a third a percent trading back to yesterdays gains. Showing you how some of these core markets are fairing plus on the ftse it was a slightly positive trade on the session it has flipped over and the French Market down. 4. Chinas lockdown recovery starts to Gain Momentum industrial profits for the year are still more than 8 lower due to the pandemic. Here is a look at the mining stocks that are also weaker. Investors continue to lean into that growth. The tech talks and some what mixed areas of the market asti and a little bit of profit taking elsewhere along with what we are taking to the rest of the market to the Foreign Exchange and the meeting taken place could have some dollar interventions. Safe haven trades. U. S. Dollar on the back versus the japanese yen versus the found and making the euro dollar i want to start on that. This is incredible trade as we move strongly about the 112113 handle George Saravelos has some ideas around the trade significant day around the markets today. What do you make we are on the euro at this stage caller we have been positive around the euro the past five months it has moved from 110 to120. It is also pricing these in and adding real yields in top at a record low the market has done a lot of work as far as pricing. When we are going higher trying to convince them to go lower was a much difficult job on the virus front, cases are picking up in europe again you went through the krooemly popular data in the u. S. We think the market is a lot more valued here we are not dollar bulls or arguing for a large correction lower. But it will be further head gains above 120 in the next few months set the stage around the dollar change and targeting the signal to shift away from the solid 2 handle. Turning higher or lower around some level of the mix. What implications does that have for the dollar it is an implication the jackson hole has im not sure that would be as impactful as it was made out to be the fed is giving a lot of publicity that will happen with a lot of fanfare theyve spent time ruling these out. They are saying yields are already what they need to be there is a bit of a communication inconsistency here when you look at the action, theyve ruled a lot of things out and essentially, only qe is left on the table if it doesnt provide more clarity and just announces the shift to the average inflation targeting, i dont think the Market Reaction would be tall and is already anticipating the shift remember, in the last few meetings, they said they feel comfortable for the accommodation providers. George, you talk about how the fed has ruled out so many measures does that mean they are totally off the table in your view in the next several months or could we see a shift how unlikely is it we could see a shift down the road . I think the move of the policy towards the yield curve at least for the next couple of months is incredibly high. They are seeing that as a negative rate and the bar even higher the fed is right to never rule things out and never say never if we do get one or two years changed conditions but for the foreseeable future these are extremely unlikely events we go back to the contradiction. Theyll go back to how to change the strategy and you look at the out come of that review and will have more of the same. I do worry well end up with a damp event, so to speak. When you look at the options market, george, what are investors thinking about the upcoming election in the u. S. And how are they positioning around the dollar in that event . Caller s that an important point you raise. It is giving a far bigger event weight to the election than the fed meeting coming up. The u. S. Election is going to be extremely consequential for the economic and Foreign Policy over the years that will have an implication over the dollar. For the biden victory, the geopolitical approach will change it will be more favorable to the agreement, engagement. If you think about the key driver back in 2018 with the trump trade war, the big driver was the weakness on the risk of tariffs using other tools and sanctions as geopolitical as tools that weakens Global Growth it could be more positive for emerging markets and Global Growth that could be more negative to the dollar really the u. S. Election is an extremely important event to watch. I want to focus more focus to the pound. Weve not been in this territory since february you mentioned we might have run into a little fatigue on the dollar rate. Are you also seeing fatigue on the pound trade . Thats a very valid observation. If you look at sterling, it is very, very correlated to the euro it is very natural to then see sterling appreciate. In relative terms, sterling has been an underperformer the best performing have been the euro you have the sterling and euro as we look towards the end of the year, i do worry about more sterling weakness. The economy is underperforming you have the huge brexit head winds. All hitting the twin deficit i wouldnt be getting too excited for sterling trent weve been recommending trading other currencies against the euro thank you for taking the time to join us this morning. Lets get in now to the latest around covid19 and the various responses. Germany is set to extend its ban on major Public Events until 2021 the ban is part of a series of new antivirus measures. Others include limiting restaurant capacities to 50 people and imposing fines where face masks are mandatory the number of deaths in the United States has reported to surpass 180,000. California, texas have reported a spike in cases italy has reached over 1,300 new cases pushing the total over 260,000. Spain and coatia also reported fears of a second wave the fda has given emergency approval to the abbott ts rapid antigen test and plans to deliver tens of millions of kits with the aim to produce 50 million kits per month early trial data shows moderna shares an immune response in elderly people and could issue a response in the highrisk. Well continue to track hurricane laura after the storm made land fall in cameron, louisiana. 20foot storm surges have hit the coast. Evacuations have been order and hasty attempts to organize temporary housing and differences now because of the covid19 well look at some of the developments on the ground when we return. Hey, kids welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. Significant story in the tech space facebook admits upcoming inphone update could hit advertising revenue. It could limit how the audience. If you are searching something, say, yoga, suddenly, you go to an instagram or Facebook Page and you see the yoga gear. That stops apparently. They insist they will comply with the latest advertising requirements despite the announcement, they closed higher. Salesforce spokesperson told cnbc that the cuts will allow relocating forces. Shares spiked over 26 tiktok ceo has quit the company. The resignation comes as the videosharing app is being forced by the Trump Administration to sell its oous operations the app is being forced to sell the u. S. Operation by september 15 the worry that tiktok users data could wind up in the hands of the chinese government. Something repeatedly denied. Giving the company the deadline to be sold or face a band. Now we have microsoft or oracle in the running to buy the company from Bytedance Tiktok has emerged in the latest flash point. In a letter, he said in recent weeks, as the political environment has sharply changed, i have done significant reflections on what the corporate structural changes will require and what it means for the global role i signed up for. It is with a heavy heart to tell you i have decided to leave the company. Tiktok sued the government and that could delay the ban and give tiktok more time to get a better deal. The Spokesman Says we proesh the dynamics over the last few months have significantly changed in the role Going Forward and fully expect the decision for now, the general manager will be the interim global head of the company in siz anydney, back to you a bit of deal news for you delivery hero is taking over the Online Grocery service from instashop. Giving it a foot hold in the middle east and north after can markets. Confirming the earnings where it saw revenues almost double where customers opted to dine in during the covid lockdown. French group bouygue beats high expectations. Better than the 336 million drop they have not giving targets for 2020 but has said it expects to return to, quote, significant profitability in the second happen wpp posted a 15 drop in sales and still beat a forecast. The largest add tidesing firm to hit a charge roles recognize to raise 2 billion pounds after the manufacturer suffered a loss as the companys cfo resigned to take up a role at the Online Retail company eu trade commissioner resigns. He adds that he didnt break any law but that he should have been more rigorous. We are seeing he had a covid test and tested negative, so he didnt think he had to quarantine the reality is that the pair for him to resign had been growing over the last week or so as a member of the european commission, he does not answer to the irish government. The reality is that he should reconsider the commission because at the end of the day, he does represent the country in brussels we are expected to hear from the head of the commission in about 45 minutes and is expected to make a statement about his resignation. To give you more contempt for how important this is for the team phil hogan served as commissioner prior to the cabinet. He was a commissioner in the yonker commission. During that time, he had an Important Role when it came to the fact that the eu japan trade agreement and soybeans deal the eu achieved back then with the Trump Administration he managed to achieve further progress with ongoing negotiations with the United States that was a big consequence is what sort of progress will the u. S. Achieve ahead of the president ial election in the United States now that phil hogan is leaving this position one final remark to watch out is whether or not hell actually give the trade portfolio to the upcoming trade representative or that shell decide to give this important subject to someone else in her cabinet. Thank you well squeeze in a quick break. Fed chair powell will speak at jackson hole today and how the fed will handle the look at inflation. Well get into that after the break. Welcome back to street signs. Im Julianna Tatelbaum with karen tso. Hurricane laura makes land fall in louisiana as a category 4 storm. This has been categorized as an unsurvivable storm surge where it will be hitting that surge could continue inland for about 30 miles european markets in a bit of a Holding Pattern with the fed signaling a major policy shift on inflation as they meet virtually at the jackson hole symposium. Stay tuned for more on all the top names. Wpp agrees to pay dividend despite slumping revenue racial tensions peaking with tensions in wisconsin, Vice President donald trump you wont be safe in joe bidens america. Under President Trump, we will always with those who stand on the thin blue line we are not going to defund the police, not now, not ever. Lets get a check on the european markets and how we are trading about an hour and a half ahead of the session a little bit of a holding power. We have the Index Trading lower. That sector down just over 1 . So dragging lower on autos overall, the move is fairly contained. A similar story in the fx markets. Trading just a touch further on the dollar in focus ahead of the speech targeting a big focus later today more red on the futures. The fresh record highs across the globe in a remark in particular. Unrest in wisconsin ahead of hurricane laura. Vice president claims President Trump would restore law and order and claiming the u. S. Would not be safe under joe biden. He promised a swift reopening and vowed to stop the pandemic we are on track to have the worlds first, safe, effective Coronavirus Vaccine by the apd of this year in the days ahead as we open america again, i promise you, well continue to put the health of America First we work to bring this economy back, we have a role to play we all have to choice to make. On november 3, you need to ask yourself, who do you trust to rebuild this economy the Republic National convention is set to be addressed by President Trump, his daughter, former new york mayor and mitch mcconnell. Several officials take to the screen this week at the feds virtual jackson hole symposium delivering his remarks today all eyes on the fed chair as many believe his speech will unavailable the inflation policy speaking to top participants include ug the dallas fed president and president of the cleveland fed. We have more on what to expect from the highly anticipated address. Fed chair Jerome Powell to set off with a speech to signal a big change theyll try and address years of undershooting the target moving to a regime called average inflation targeting when the central bank allows inflation to run above target for a time to make up to average in this case to 2 . The fed official calls the move, quote, profoundly consequential and risk friendly. Why . In the current context, that means the committee will adopt policies they expect will generate inflation above 2 . Kansas city fed president expressed some willingness to do more 0 policy if the economy needs it i think even at the point that we resolve the health issue affecting the economy today, what we cant yet know until the dust settles. The change in policy to be discussed around september and could also come with a new fed easing package pleased to say david miles joins us professor at Imperial Business School thank you for being with us. Today, ahead of the speech, there is a lot of focus in the market and how the fed will think about and target inflation in the future. What do you think about the average and the way theyll be conducting policy in the future should they go down this path . In some ways, its a form of commitment in such markets, b you have a paerd, lower than you otherwise would for longer it is a form of what you might call forward commitment. I think one of the problems with any kind of forward commitment is that it is a constraint on the future behavior of the policymakers in some circumstances, that is helpful. Then again, things in the future come along that you havent expected any kind of commitment like this can turn into a strength it is a form of Forward Guidance the central bank has not been very successful. On the topic of successes, if you look back at banks around the world, how effective do you think the Central Bank Action has been do you think theyve done a good job in handling the crisis so far . They havent done any harm. It is realistic not to expect the policy to be the most effective way of dealing with ultimately a medical devices at the side the main response has been understandably fiscal policy and the loss of fiscal policies along those lines strongly in europe it is never obvious that those are the most appropriate response and to what is a huge disruption theyve cut Interest Rates close to zero levels in the u. S. And the uk they decided in the u. S. And uk not to go into negative territory. The ecb has been there for a while. I dont think the evidence is at all clear that the ecb has done anything useful. I want to go further and discuss average targeting. It feels like significant change in framework what we are hearing is a change in tone that if it is flushed out, we could allow inflation to run a little lower than normal many turn scared every time they heard about that notion. How we look at it this time is a crisis era tool and we should look at it with a finite period . If indeed it is the case that the fed comes out of their review with the view that they should not follow average inflation targeting, im sure that they should not do so as a response to the pandemic and a temporary measure. If they argue for it, it should be a sensible, longer way of running towards policy im kept calf whether that is necessarily right. You could think of examples, could think of the target. Let me give you one. In the u. S. And europe, they have a target for 2 inflation spo suppose for two or three years running, that is not actually a problem in the sense that unemployment is low, the economy is going well. Noobvious reason why that is a problem. If you have average inflation targeting after one year or two, you need the inflation over say five or six. Why would you want to have 6 inflation to make up for four years and the shooting of 2 target by one. When you get to the end of this period running a little below the target, would you really want to generate the short burst on average to give you a high level of inflation in that period it is not at all clear that this is a really sensible way to run the deposit . It would be a change and constrain the behavior of the fed in ways that it has not been constrained in the past. It brings us to the market messaging because the fed is not just in the business of designing good policy, it has to communicate it weve seen mistakes in the past that youve witnessed under jay powell directly. I think ultimately, he gets it right but not necessarily on the first communication. Some have said he needs to bundle it up with new measures like a new bond program or unemployment goals do you think that is necessary today . I think Central Bank Communications are a tricky thing to put it mildly it has not been done terribly well by Central Banks over the crisis im weary of Central Banks giving guidance of what they are going to be doing. You dont know what is coming up around the corner. It is central to say the overall framework will keep close to the same level, two. We cant tell you well follow this particular rule im skeptical of the clear guidance when that is uncertain that is tricky ahead. Weve seen the central banker and trump constantly taking pot shots. Seeing the various issues being too dovish stepping in to the political sphere again this year it is very difficult when politicians publicly say what they think a socalled independent bank with central bankers insist they should they run the risk of being seen to kowtow to politicians and on policy. If at the same time, they counter and say we are not listening to these political voices and we are going to do what they need to dough do to the inflation target, they risk being overridden once you get into a situation, what they think the central bank would be doing clearly that is the situation at that time. Great to have you on the show at Imperial CollegeBusiness School and member at the bank of england. We are still tracking developments state side with hurricane laura after the storm made land fall with 20foot storm surges to batter the coast. More after this. My name is joe researcher at amazon. M a se Climate Change is the fight of our generation. The biggest obstacle right now is that were running out of time. Amazon now has a goal to be net zero carbon by 2040. We dont really know exactly how we are going to get there. Its going to be pretty hard. But one way or another were going to reduce our Carbon Footprint to net zero. I want my son to know that i tried my hardest to make things better for his generation. You say that customersknow make thelets talk data. Est only Xfinity Mobile lets you switch up your wireless data whenever. I accept 5g, everybodys talking about it. How do i get it . Everyone gets 5g with our new data options at no extra cost. Thats good. Next item corner offices for everyone. Just have to make more corners in this building. Chad. Your wireless. Your rules. Only with Xfinity Mobile. Now thats simple, easy, awesome. Switch and save up to 400 a year on your wireless bill. Plus, get 400 off when you buy the new Samsung Galaxy note20 ultra 5g. We are still following developments on hurricane laura. The storm expected to wreak havoc along the shore lines. 20 foot surges anticipated called an unsurvivable storm for some evacuations have been taking place. 625,000 people under Evacuation Order in louisiana and Texas Oil Production being impact. The demand story being called into question at this time lets get into the Market Reaction we have a comparison to the katrina story. What are the ramifications and is it purely around the demand story . It is highlighting the balance between supply and demand that we see if you look at what has happened around this storm, we have 1. 5 million a day of production shut down. Thats over 80 thats significant in the global context, it is absorbable youve got to look at this as where we are we are 9 over the average and 2 million above what we would normally see in tanks in the u. S. 12. 5 Million Barrels in storage. Thats 15 there is a lot of crude out there despite coming into the Hurricane Season with a bad one to start off that will ramp up into september when we see the peak the report of heavy flooding and storm surges at historic levels how long could it take for u. S. Production to get back on its feet once the storm has passed what the u. S. Oil industry is great at is overcoming adversary. If you look back over previous hurricanes that have hilt the region, excludeing katrina, the industry is resilient. It is designed and built to absorb these events, year to date, there has been 67,000 barrels lost in the region as a consequence of the hurricanes. We are still at the beginning of this i bring it back again and how much does this impact the huge overhang in global stocks. We take your point about resilience the question then is will laura cause lasting damage to pipelines . If we do see permanent stoppage, would we then see a shift in oil price . It is hard tosee that it could impact weve had 2. 23 million a day in capacity in the texas and louisiana refineries shift in as a consequence of this. There is probably going to be more this is not a good time for the industry the industry is coming out of a tough six months at real rock bottom and demand does that mean they delay the referb work and reschedule the speed which they bring these plants back on screen. You are only going to bring those back we had a rebound the u. S. And Global Industry has a long way to go we have to look towards end of 2021, 22 before we see demand growth come back thank you for that. Julianna, you are looking at some breaking news thats right we have some news out of france. The french Prime Minister has weighed in saying the covid r rate is 1. 4 in france. That is the infection rate, so the pace as which the infection is spreads currently speaking in france and he made the comment that covid is circulating greatly 340among young people progressing especially in paris and in the ilse de france region anything over one, weve been told is concerning thank you very much lets look at the action early on at the start of the session front and center for investors and on the back foot is how we approach early on. Coming state side on worldwide exchange. Hey, kids welcome to camp tonsafun on xfinity its summer camp, but in your living room. Learn how to draw with a minions expert. How to build an indoor Obstacle Course plus. Whatever shes doing. And me, jade cattapreta. The host of es the soup camp tonsafun. Its like summer camp, but minus the poison ivy. Unless you own poison ivy. In which case, why . Just say summer camp into your xfinity voice remote to join. It is 5 00 on cnbc your top five 5, a live report from outside the eye of the storm. Another fast moving storeer story, the ceo of tiktok stepping down just months after being appointed to that role we speak to the reporter that broke that news coming up. On wal