Declined and is running below 2 . The forecast link which hasnt changed. Inflation is expected to remain somewhat below 2 within the near term, but it will, according to the statement, stabilize around the 2 objective over the medium term. He continues to strengthen in the labor markets, but june joby john gains, it has been stronger. Basically, this leaves investors with what they were thinking, a Balance Sheets move in september and a great move, if it occurs, push off until perhaps december. Tom certainly some reaction in the market with the vix showing it bounced down under nine. The essence of the market is great. Chicago, is the quiet of the market tangible and real or is it a deceptive quiet . Think it is deceptive. One of the important things is you saw the capitulation for but september is ideal. They admit they like to see the Balance Sheet move. Said, we got a lot of policy uncertainty that is not being price to markets. It is amazing to me how much market ignore the noise f
About how many Interest Rate increases they are predict and. All three major averages are higher, ounce around a little bit. Withlooked at the s p 500 s p 500 versus oil prices. Oil prices went south and it comingike both of them back. Oil has been in focus with inventory reports showing a fourth weekly decline, though not as big a drop as anticipated. Factory production pulled back by. 4 , double what was estimated. That also seems to have affected the bond market. We have the two and the 10 here and yields going lower and took a turn lower after we got Factory Production date of. Going into the commentary from the fed. And ahead of the fed, it is worth checking on w. A. R. P. Ive change this to look at the swaps market to see what they are protecting. We have a 50 chance of an interest increase not until february of next year. Checking on the u. S. Dollar, weve seen a decline in the dollar going in the same direction as rates. Talked about pound ballot pound volatility because of the
This is bloomberg surveillance live from new york. Im tom keene. Scarlet fu with me in london. Another grim evening we reassess on a friday morning. Scarlet yet another attack. Eight months after those attacks in paris last november. We continue to monitor all of the headlines coming out of nice. Tom as George Packer talked about, the other france. We will talk about that this morning. Right now, to give you our first word news it is the seventh deadly attack in the last 18 months in france. At least 80 people were killed in nice, when a truck loaded for weapons drove for a mile along a boulevard pact with residents. The driver was killed in a shootout with police. President Francois Hollande said his country is at war with terrorism. This attack that has all the elements to be called a terrorist attack is once again of an incredible violence and it is clear we have to do everything in our power to fight this terrorist plague. Hollande has extended a state of emergency for another thre
Other labor market indicators point to what the statement calls some increase in labor market utilization in recent months. Economic activity has been expanding at a moderate pace. Although there is concern about the level of business spending with was a concerned expressed in the june meeting as well. There is no change in their inflation and there they continue to expect it will rise. The statement does note that etbased were back kansas citys pastor george saying she would have preferred to raise rates by a quarter point. Tom what else do you see in the statement . The twoyear yield moving up, 10 year yield clearly moving up. Well show you that a minute. What else did you see . Mark almost nothing different. A fourth, fifth and sixth paragraphs exactly the same as the previous months. The only real change is in the second paragraph where the eddie saenz that nearterm risks for the Economic Outlook have diminished. That was the concern that came up without the bad jobs report in june
Reports of any deaths. And just over the mexican border, much of texas, as we know, is under a flood watch with whats left of patricia, the concern there that it will bring, of course, even more rain to a state that has already been pounded. Our correspondents are on the ground in mexico and texas on storm watch. Want to begin with Nbcs Joe Fryer in ecstapa, south of where Hurricane Patricia made a direct hit. Joe, good morning to you. Reporter good morning, jeff. Hurricane patricia has weakened considerably with many breathing a sigh of relief up and down the coast, but the Mexican Government is warning people to not let their guard down as this historymaking storm moves through the country. With the grace of a sledgehammer, Hurricane Patricia reached land, winds swirling at 165 miles an hour. Images taken by tourists hunkered down in hotels showcase the driving rain, swelling seas damage reports quickly surfaced. Washedout roads, toppled trees and uprooted highway signs. Some of the