The early 1980s when it was not clear the fed could control inflation and the 1990s when the fed controlled inflation. Inflation today is under control, but there are new challenges from trade. Inhave much experience addressing typical macroeconomic developments, but fitting trade policy uncertainty into this framework is a new challenge. Unemployment is near a 50 year low. Inflation is not rising as the old model suggested it would. With Inflation Expectations so w, the neutral of rate neutral rate has fallen. Incorporating a lower right into policymaking does not require a significant change in our approach, but it may demand more fundamental change. How they change will depend on the policy review the fed is conducting this year. He takes no position on where they will end up. Does a promise to act as appropriate meet wall streets test . Vonnie i know we have to let you go in a moment. I want to get reaction from you to this speech. It says a lot for the jackson hole speech. The fed
Todayreasuries are posted closed today because of labor day. If you are americans watching us, happy labor day. This is the picture for eurodollar. 1. 09. Have the german figure a short while ago that was worse than expected. The european stoxx 600 gaining but it is all about the trade war. Up, we speak to the chief economist at 10 00 a. M. London time. Lets get to first word news. It is Sebastian Salek. It forced 185 mileperhour winds and could top 23 feet. It may leave the islands devastated. Uncertain if dorian could hit makeda on my or not landfall at all. Argentina has imposed capital control. Corporations will require centralbank authorization to buy dollars in the fx market fx market. The president is trying to stem the growing economic crisis eight weeks ahead of president ial elections. Thelor Angela Merkel euro skeptic alternative to germany did not make a breakthrough in local elections. The result may save prices in berlin. Saudi arabia is putting its portfolio into two min
European markets, as you can see, have opened, and on the whole pretty flats. And how low can you go . Signals of rock bottom borrowing costs from top central bankers and Global Growth jitters. Its been a busy week in news. Well get the inside track from our friday editor. Today we want to know fortnites worlds cup, 30 million up for grabs, as a 15 year old brit reaches the final, are parents right to tell kids gaming is a waste of time . Let us know just use bbcbizlive. Hello and welcome to business live. We start with Online Retail giant amazon, because it has revealed another set of mind boggling sales figures. Ceo jeff bezos says efforts to make one day delivery the norm for prime customers are paying off, with accelerating sales growth. Shares have fallen, though, as investors were disappointed with how little profit amazon is making on all that business. Lets show you the details. Amazon made revenues ofjust over 63 billion in the three months to the end ofjune. That was up 20 on
Surveillance. I am Francine Lacqua. These are your markets. A lot of these european stocks higher at the opening. Now they are down a touch. Lets call it flat. I am looking at oil. A lot of the picture is contingent surrounding iran so you see a little bit of a lift up for american crude. What is going on with these european markets and you are seeing it reflected in yen. Yen is the one story that is the haven. Any risk attitude is reflected on yen. European stocks, a lot of investors are looking at these amounting into political risks. Ifore getting some figures. The german index, 97. 4. We get up around we get the with hernan a cristerna. Lets get to the bloomberg first word news in new york city. The drumbeat for Federal Reserve rate cut is getting louder. Minneapolis fed president says he called for a reduction at last weeks meeting. These comments reinforcing expectations the central bank is on course to cut rates. Trump says he would be able to demote fed chairman if he wanted to
Uses leftovers to make luxury goods. Would you buy upcycled goods . Do you reinvent things that you dont use any more . Let us know use the hashtag bbcbizlive. Hello and welcome to business live. The euro fell against major currencies on monday as Coalition Talks in germany collapsed, throwing Angela Merkels future into doubt and creating uncertainty in europes largest economy. Eight weeks of negotiations following septembers general election fell apart, with the centrist free democrats, led by christian lindner, pulling out. It leaves Angela Merkel with few options given her stated objections to ruling as a minority government. Later mrs merkel will meet the german president Frank Walter Steinmeier who could call a new election. Jenny hill is in berlin for us. What went wrong with the negotiations . It was always going to be tricky bringing together these three very different political groupings, mrs merkels conservatives, the green party, with their environmental stance, and the free