We are seeing green on the screen in terms of equities and u. S. Futures. We finished unchanged on the s p 500, so the markets are a little bit risk on. We are seeing that reflected in the bond market. The 10 year has backed up. We have a number of regional president s pushing back against further rate cuts. The dollar is on the front foot as well. Coming up, we are live from jackson hole as investors take positions on how fast and how far the fed will ease. We have a host of stellar interviews first up, James Bullard. And then watch out for robert m Robert Kaplan and patrick harker. , that iser it takes what new Zealands Central Bank governors says he will do to support the economy. Thef says he will evaluate impacts of this month on expensively large rate cuts before considering further easing. Forward, we were saying everyone is telling us we needed to be lower. Everyone is telling us Global Growth is slowing, so lets get ahead of this. Lets move and reduce the probability of having to do a lot more later. So we are pleased with where we are. Japans Prime Minister accused to south korean counterpart of damaging the relationship between the two uluntries after soul seo pulled out of an intelligencesharing pact. Said he wills now work with the u. S. To maintain security. There is no doubt that the shared interests are important to the let states of america. We hope to the United States of america. We hope they can put the relationship back. Emmanuel macron is calling on g7 to discuss what he describes as an emergency. In the last few days, brazils policy towards the rain forest is under scrutiny. 84 year on year increase in forest fires but Jair Bolsonaro criticized the decision to discuss the issue, showing a quote colonial mentality. The battle to host the worlds biggest Public Offering is heating up. Global exchanges are stepping up their courting of saudi aramco. We are told senior officials have been actively pitching the saudi oil giant. Global news, 24 hours a day on air, on tictoc, and on twitter, powered by more than 2700 journalists and analysts in more than 120 countries. This is bloomberg. Nejra . Nejra thank you. Investors waiting for jay powells speech today. It will be closely watched for clues on if the central bank chief sees july as a midcycle adjustment the start of something bigger. The chief Economic Advisor at allianz says the cycle may not be what the economy needs right now. For markets, it is really important. They are looking for a cycle that goes 75 basis points. Some argue even further. But the reality is it wont do anything for the economy. The reality is it may boost asset prices in the short term but increases the risk of instability down the road. Nejra investors have priced in a 25 basis point cut next month and three policymakers have voiced resistance with a fourth saying he wanted to avoid further action. One dissenter is Kansas City Fed president Esther George. As i look at where the economy is, it is not yet time, im not yet ready to provide more accommodation to the without seeing an outlook that suggests it is getting weaker. Hiring has slowed but is still healthy. Are they working or limiting hiring . The reports we get our that businesses are still having a hard time finding people. Still wrestling with wages and thinking about how to compensate a workforce they need to be productive. That is still one of the largest concerns, keeping the workforce and figuring out how to compensate them. My next question, where is that wage pressure you have been looking for . I think we are seeing higher wages. Its true that we were not seeing a pickup in wages for a couple of years. Over the last couple of years, you have seen that pickup. I think that as productivity has gotten stronger, the recent releases around that suggest inflation is not going to pop up in a way that will undermine the workers ability to realize some gains. Let me ask you how you look at Monetary Policy. You were an advocate of raising rates to get ahead of inflation. If you are not ready to cut, are you happy with where rates are , given that inflation is lower than anticipated and would you be happy to leave them at this level . So i think that is a process of judging how the economy unfolds. Where rates are right now relative to unemployment, it suggests we are at an equilibrium. I would be happy to leave rates here, absent some weakness or some upside risk. That was Kansas City Fed president Esther George speaking to bloomberg that the jackson hole symposium. Lets focus on the fed and jackson hole. Joining us is the cio for International Wealth management in the global head of economics and research at Credit Suisse. Great to have you. How much of a turning point for the Jerome Powells speech be . Anette really, all eyes are on the guidance that will be offered by Jerome Powell. In the most recent days, there has been an interpretation that he has perhaps been on the hawkish side with some members of the Federal Reserve not seeing the need immediately to cut further rates but there is this a normals influence that fed and Monetary Policy has on markets and a lot of expectations built in. So i believe the markets will and ivery sensitively believe there will be a loss of focus on jackson hole overall. Will powell pushback on Market Pricing . Nannette it is a very thin line he will be walking here. To be honest, the Manufacturing Sector worldwide, including in the United States, is undergoing a period of weakness. The more protracted and the uncertainty is, the deeper it will affect sentiment in the sector. And when this starts to have an ,ncident from the labor markets then the Federal Reserve has a good ground to consider Monetary Policy further easing. Nejra so what is your strategy around fixed income . , i think that, at the moment, Interest Rates are bound sustained low. To stay low. I am coming from a country were government bonds are close to 1 . Everybody in the Institutional Investor world will have to think about a long time of low Interest Rates. But then again, when you think about total returns and upside risk, trade talks could very well end with more than just a truce. In fact, some sort of agreement, and then yields could quickly move up from where they are, destroying returns. To cut it short, on government bonds, we think there are better ways to get kerry and income in a portfolio. We have underway to those in a multiasset strategy to the benefit of credits that are getting a little bit of spread. Nejra makes sense. If you are under waiting bonds in favor of credits, does that mean you are adding to equities . Nannette we have been quite happy to have Strategic Asset allocation, which is already quite high. Yes, when we that, have Monetary Policy and increasingly fiscal policy economy, thenthe it is positive for risk assets and equities absolutely are comparing more favorably than Investment Grade and highquality bonds. So we do have a preference for that in multiasset strategy but we are not overweight the asset class. We are happy with our generous, Strategic Asset allocation. Nejra and within equities regionally, you have a preference for the u. S. Does that mean you prefer the dollar over other currencies . An area the dollar is where you have had to think very hard about what it means when the Federal Reserve is cutting Interest Rates. Cut,er it is just a small as it was framed, or the start of a series of Interest Rate cuts. It is apparent from previous easing cycles that the dollar can actually stay quite resilient in the next 36 months that follow such an adjustment. , often times,that capital flows are much more influential in terms of the currency movement. At the moment, capital flows are flowing in to the United States. This is creating demand for the u. S. Dollar, so we have to change a little bit our views around the dollar. We now think it is going to stay resilient for quite a while. 1. 08,asts are 108 1. 1 in 12 months. Nejra our guest from Credit Suisse stays with us for the hour. And plenty coming up, a gloomy to do list for the the leaders of the worlds biggest economies as they head to the g7 summit. Plus, is germany headed towards recession . We discuss that later in the show. This is bloomberg. Nejra economics, finance, politics, this is bloomberg surveillance. Lets get the Bloomberg Business flash. Bank is paying over 16 billion to the u. S. Sec to settle allegations it hired relatives of over seas government officials to boost business. The suit focuses on the asiapacific region and russia. The frankfurtbased lender agreed to settle the case without admitting or denying wrongdoing. Goldman sachs is getting the Cold Shoulder in upper darby. Last year, adnoc hired the lender, but has not invited back for the second round. We have learned that is due to the 1mdb scandal. Goldman has struggled to win business in abu dhabi since earlier this year when the emirates wealth fund suspended activities. Hasbro is setting its sights on becoming a media giant. The toymaker is spending 4 billion to buy Entertainment One, a studio that makes tv shows and animation. They are getting big children brands including peppa pig, which will help to expand into international markets. Their stocks surged on the news. That is your business flash. Nejra thank you so much. World leaders gather in Southwestern France this weekend for the g7 son of summit. It will provide a chance to address some of the days major worries, including tensions between the u. S. And iran. Joining us now is bloombergs maria tadeo. Great to have you with us. It looks like a contentious g7. What is on the agenda . Good morning. It could be contentious, it could be unpredictable. What we hear from officials is that the bar is very low when comes to any kind of agreement to the extent we will probably not get any communique by the end of the event. And they worry a lot about trade, about the state of the Global Economy and a recession in germany. Of course, there are the politics which look shaky and unstable ready much everywhere. The europeans are waiting for President Trump to tweet. He likes to do this before big events, he likes to set the agenda. And of course, the risk of a no deal brexit is unclear. In the meantime, there is a lot happening here but it is unclear whether we will get any kind of agreement by the end of the session. Nejra thank you so much for joining us. Still with us, and that nan nette from Credit Suisse. What are you going to be looking out for most . Nannette i think that one of the important topics of today in this world of multilateralism coming to a change, perhaps not to an end, but also recession risks in some countries, particularly in europe, is going to really put the limelight back on Economic Policy by and large. Policy, monetary because when Central Banks have arrived at the socalled zero bound and considering quantitative easing that has favored asset inflation over real goods or service inflation, leaders around the world have to think about fiscal policy again. , alreadyhere will be now in the making, but perhaps after g7, more openness to use a fiscal policy as a very important instrument at this time. In countries like germany, there is obviously a slump in the industrial production. Economy and the eurozone as a region has given much more weight to industry as opposed to technology. So i have been very interested to see that at the European Union level there has been talks of creating a Sovereign Wealth Fund that could aim to Fund Technology or leaders and national champions. That is a topic that we at Credit Suisse have been engaging in with quite a while. For quite a while. We think there are strategic areas in a number of countries and there is a focus on supporting that with private and public cap. Capital. Nejra with the precipitous drop we have seen in yields, is it a sign that investors actually want this as well . But they are saying there are limits to what Monetary Policy can do . Nannette the bond market is really mirroring something or reflecting Something Different then perhaps the rest of the Financial Markets. Time,uld argue that, over bond markets have been having a more pessimistic read, generally speaking, then equity markets on the same situation. So i do believe recessionary risks are reflected in bond yields. Andstory that bond yields curves are telling at the moment. Leaders around the world, including both political and economic leaders, are paying great attention to that. Certainly, when i to markets have helped Financial Markets have helped decisionmakers to come to the right decisions. Very briefly, have we got to a point where it is actually too late and fiscal action wont save us from recession . Nannette i dont think so. For example, Infrastructure Investments are so necessary whether this is in the area of transportation, whether urban or cross region, just the fact that there is no rail that goes from north to south come from sweden , from swedensouth to sicily. Generation,y power it does imply water. It does imply Affordable Housing. All topics, by the way, which are so important to citizens. When you see how much dissatisfaction is prevailing at the moment, i do believe there is absolutely an impact to be one,with fiscal policy for and secondly, infrastructure. Nejra much more to discuss. Nannette hechlerfaydherbe from Credit Suisse stays with us. And stay with us, we will bring you live updates from g7 and todays most pressing issues. This is bloomberg. Nejra this is bloomberg surveillance. Cuts are inflating a dangerous bubble in bond prices, the view of scott minor. But he says that like all bubbles, the end is not easily discerned. Still with us is nannette hechlerfaydherbe from Credit Suisse. Are we in a bond bubble . Nannette i dont think so. Clearly, yields are not attractive, but they are reflecting a reality. When we try to estimate yields we can explain with the current set up, then we end up not far away from the current level. So there is no indication of factrance, but it is a that there is also a lack of alternatives, frankly. Investors, if today they are worried about the Economic Outlook or perhaps risks that are broadly around, they do not have much more alternatives than piling in two toeady unattractive in already unattractive government bonds. Nejra nannette hechlerfaydherbe, great to have your thoughts. Up next, we bring you stocks on the move. The owner of pepe, shares are starting peppa pig, shares are soaring. This is bloomberg. From the couldnt be prouders to the wait did we just winners. Everyone uses their phone differently. Thats why Xfinity Mobile lets you design your own data. Now you can share it between lines. Mix with unlimited, and switch it up at anytime so you only pay for what you need. Its a different kind of Wireless Network designed to save you money. Save up to 400 a year on your wireless bill. Plus get 250 back when you buy a new samsung note. Click, call or visit a store today. Nejra jay powell needs to find a balance at jackson hole today. G7 leaders gather, and the issues of brexit and a new Italian Coalition loom large. Indecision in berlin. Germanys this bank says it is not time for stimulus, even if sentiment sours on its Manufacturing Sector. I am there which a pitch in london. Lets check in on the biggest stock movers now. We do that with amory hoarder boosting the shares of pepa pig nearly 30 , boosting 4 billion. It comes on news of potential merger. The still unit is in concrete germancreating an steel giant. Secondquarter revenue came in 1. 9 percent above estimates. Balancing European Software companies after sales forces, a pretty big beat yesterday. Nejra now lets get to first word news with viviana hurtado. Three fred three president s will only take action if we have to. That only puts them at odds with the market if fully pressing at a quarter production in september. Today chairman Jerome Powell could provide more guidance when he speaks at jackson hole. If i look at where the economy is, it is not