FED, Bloomberg, United States discussed on Bloomberg Daybreak: Asia
Male pipebombs in the US up to ten names added to the list today. Former vice president Joe Biden, he got to an actor Robert deniro authority. Say the public is safe for now, but should remain vigilant. White House response to those who say the president's hate speech causes the problem saying it's the media that is so negative. Japan's Prime Minister Shinzo ABI in Beijing saying wants to lift relations with China to new levels, both China, and Mr. Trump or saying New York Times report that China is listening to his conversations is on an old iphone is fake news, both using that term. And the White House is now saying that Mr. Trump's phone is rotated regularly for security only uses one official government iphone and follows best practices. Super typhoon. Youtube is lashing the Northern Mariana Islands as residents brace now for months without electricity or running water one person has died also in its path as it moves back to water or the Philippines and Taiwan. If you look at the map there several of them up on the Bloomberg terminal. It is looks like the drawing any way like a massive massive storm and Donald Trump says he's going to love. The global playing field when purchasing drugs for Medicare the drug lobby response. A plan will deny access to patients and discourage innovation. Global news. Twenty four hours a day on air tick talk on Twitter power by more than twenty seven hundred journalists and analysts more than one hundred twenty countries in San Francisco, I'm Ed Baxter. This is Bloomberg Mr. angle it's back to you on the flight deck. Right. Thanks a lot. I think we need the Batten down the hatches here again. In Hong Kong one projection has U2. hitting Hong Kong next Friday. So we got a week to soar up the source. All right. Let's get back to our conversation. Now with Robin Brooke's, managing director chief economist at the institute of international finance, Robin before the clock unforgivingly cut us off in the last block. We were talking about the fed. And I might just add that Bloomberg's Mike Mckee. We'll be interviewing Dallas fed President Robert Kaplan at eight AM Friday in the US that's eight pm tonight in Hong Kong, but you were mentioning despite all the headwinds on the US economy. The trade war at cetera et cetera. You don't think the fed is being too hawkish? No, I think that first of all I think there's been kind of a communication mistake and certainly misperception markets, as you know, the fed the emphasized are star that was interpreted as hawkish in my opinion falsely. And then of course, the chair the fed said that we're still wait for Mitchell. And I think that was purely a factual comment comparing two point one the current set funds target versus three which is neutral level. So there was no message there one way or the other. Well, he did say that they were possibly willing to go beyond neutral, and that got some attention. Yes. And I think that's been a message that the fed has communicated for some time if you look at the dot, which of course, we all take with a grain of salt, right because their projections and the media and the median of many many different forecasts the dot said going to a terminal rate of three point four percent and twenty twenty and twenty twenty one. So the idea is going beyond neutral, which is three I think has been communicated for some time. It's been more recently that markets in the context of relatively strong did and the United States have all of a sudden we rated, and I think that's been a mistake. So that positive for equities, Robin. We just want break in from moment and mentioned that the Time Warner center in New York City is being evacuated right now because of potential explosive devices some suspicious packages have been located so we'll come back to that. When we get further details I wanted to mention as well that Amazon talked about. A little less from international sales. And you also had Intel talking about the difficulty of trying to unravel the supply chains. This is something that we haven't heard too much from the fed is that likely to creep into the discussion, the international picture soon. Yep. Thirty sorry. Let me make two points. So first of all what we have seen increasingly and also in our own data is that global economies becoming unbound. United States continues to grow pretty strongly we're going to get to three advanced. Tomorrow, and they're going to be pretty solid, but the rest of the world isn't doing so, well, I'm so increasingly unbalanced global growth that said based on the history of the said, there's really only one emerging markets affect cares about China. And so on China activity picture as you know, Keith requires was six and a half percent. So there's no reason for them to strip just yet. Well, when the tariffs hit into overdrive as of January first going from what ten to twenty five fifteen to twenty five percent, whatever that might be does that start hitting China more or the US? Clearly be very material mega shock to China. The discussion here, and what the White House has telegraph is the tariffs generally one. We'll go on the additional two hundred billion from ten percents twenty five percent. So just to put that in perspective. What that would mean in terms of the MVP, which is a very simple metrics dollars. Dan, why if that happened would have to move another six percent higher? Values picks Chris time against the US. To increase in tariffs. That would definitely go above the red line of seven to the dollar that we hear about so much. Thanks so much Robin Brooke's we're gonna take a quick break. This is Bloomberg. This is the Bloomberg green.