Problem. Negotiations remains in deadlock with no deals. Was thewe saw yesterday there maybe willingness to talk. Round of Earnings Report sends signals about the Global Economy. Certainly in europe is that softening. re seeing Federal Reserve chairman jay getsl speaks and bloomberg the insight. Were at a sort of now. Ibrium we have to be careful not to when we dont have significant problems. Stimulateates will our economy somewhat. A i dont see this as beginning of the rate cut cycle. Ahead on all bloomberg best. Hello and welcome, this is bloomberg best. Weekly review of the most important Business News, analysis and interviews from themberg television around world. It starts with a day by day look headline. On monday the market respond positively that seem to imply an easying of u. S. China trade tension. The Commerce Department announcing that the u. S. Will for 90he huawei waiver days so companies can continue to do business with huawei. They got another 90 days. 90day reprieve that applied to existing u. S. Huawei,s of particularly those who run World Networks that depend on huawei equipment. Playe suppliers to huawei. Updatingws google to huawei phones with new security patches. Move. S a limited need to be careful about overinterpretting this. Very much al huawei. N happening in the department of commerce added subsidiaries to huawei. At least temporary reprieve for u. S. Customers. Extramany could spend an 50 billion euros in an economic crises. Financeccording to the minister who has put a number on the possible fiscal stimulus for first time. Fears looming recession are pushing berlin now to consider suspending its balanced budget policy. Spent ins what germany the last crises. He said we have the fire power to use that money. We have been lowering our debt to below 60 . Bank today from the that a recession is entirely feasible with a contraction in quarter. We hear from people familiar, that the government is looking measures forl stimulus package who will focus economy. Mestic government does have the money. Thats a lot better than the peers. It does decide spending is the cash can be found. Italy, prime minster announced hes going to resign. Attacking deputy premier. Was sitting next to him. Some calling his decision to crises political irresponsible. Is hes going to resign in couple of hours. His going to hand resignation to the president. Then he has to accept the and tomorrow morning, he will start with the party. He would have to see if theres anhance to perform alternative majority in the new government. Chances,snt see the he will see another election. He wille any stability, name a new prime minster and ask a government. The fivestar movement in the holdingic party realize talk over possible coalition. Whats the possibility they Work Together . Have some common ground. The idea thats being floated is asking a limited program focusing on areas where they are interests do meet. Areas like ecology, civil rights. Possibility that common ground. Its just a open question whether they can bridge over differences. Ahead of the annual gathering in jackson home. Meeting. Rom the july should policymakers view the 45 cuts. Argue whether to lower rates. That really sent some ripples through the bond market. What did you take away . To ratify what they did. If they want to do it again in september, the conditions they the talking about, uncertainty over trade issues, that sort of thing, still remains. Caution about spending. What we dont know is theyre see the react if we consumer side of the ledger coming in strong. So hasve been strong and retail spending. If that continues and if dolation ticks up a bit, they want to pause in september and wait and see something more needed. Thats still a possibility. Of after a better idea jay powell speaks on friday. U. S. Ina hits back at the with tariffs on 75 billion of imports. Will take effect in two stages. December 15th. St one echoing tariffs see on chinese goods. D are the tariffs spinning out of control or is this a measured response from china . A measured response from china. Areit is a sign how things escalating. As weve seen today, both sides tariffs onslapping each other and the heat is rising. We are counting down to those the federalom reserve chair jackson hole. Head chair powell about to give speech. Michael mckee has a copy of remarks. Go beyondir does not his promise to act as appropriate to sustain the expansion. Even though he says that trade forcy is a worry something the u. S. Economy. Because the most important Monetary Policy are felt with uncertain lags of a year or more, committee must attempt to look through what maybe passing developments and tous on things that seem affect the outlook overtime. As appropriate to sustain the expansion. Act asomise to appropriate meet wall streets of being devilish enough. Two major stories. Jackson holes and trade. Trade. O President Trump tweeting he will respond this afternoon to china slapping another 75 million of tariffs on u. S. Goods. The stabilitying of financial markets. The past 100 years only incumbent president didnt reelected you have Consumer Confidence down. Things are weakening here. He needs to do whatever he can the economy. The president tweeting out earlier, my only question is, the bigger enemy, jay xi. Ll or chairman the president made a calculation hes going to double down on his bank. S on the central i think the Market Reaction to the various back and forth been really instructive. Thesaw stocks fall after headlines that china was going to retaliate and raise tariffs imports. Then after that, jay powells act aspledging to appropriate and hinting at more easing was enough to push stocks up. Of course, President Trump came traded gave more developments to digest. Now stocks are back down. Trump said he will respond and he has on twitter. We got a series four tweets. He said many china has been taking advantage of u. S. On much more. Our country has been losing of dollars billions a year to china. Past administrations allowed china to get so far ahead its become a great burden to the american taxpayer. As president i can longer allow this to happen. This unfairnce trading relationship. China should not have put new on 75 billion of u. S. Product. Politically motivated, starting on october 1st the 250 billion of goods and currentlyrom china taxed 25 will be taxed 30 . Remaining 300 billion good taxed at10 will be 15 . Still ahead on bloomberg best, much more from a busy week of fed speak. And women who make Monetary Policy talk frankly about the path ahead. Next, Earnings Report also made headlines this week closenvestors paying attention to the forward up. Very flexible way in which use our cash. Were ready for whatever the world might throw at us. This is bloomberg best. Even earning season winds down. Investors plenty for to ponder. Players. In with a key Company Fights to maintain position in a shrinking smartphone market. The myths. Blame this on the trade war. Hes facing head winds on a of mac cro economic fronts. Which we have seen pressure, smartphone sale. Revenue. Et most of its but it trying to expand into higher margin area which Internet Services like selling ads, like becames and and sell other devices. We assistant seen sales to take off. Most of the revenue areas have slown down a lot. Investors havent seen a lot of promise to produce growth. 44 . Right spot did grow china biggest Search Engine analyst revenue estimate. Thats facing new challenges. Good set of numbers from bidu. The bright spots . Baidu offered investors some reassurance. At least for now. Able to grow advertising, face of business in the macroeconomics slow down. Incumbents. Isting the World Biggest minor warn china and trade tensions are the key risks to prices. Material despite this, they boost final on higherto a record annual earnings. Sheeth our strong balance with a flexible way in which to use our cash. Were ready for whatever the throw at us. We can profit from a downturn. But we can throw off a lot more potentially in an upturn. Dividend sustainable . This is sustainable for a period of time . We dont have progressive dividend. We change it to a flexible dividend. Based on a ratio of 50 underlying earnings. It will go up and down depending on how much is performed. The many tools we have to see through what might in theping in the water future. Thats why were comfortable in that record dividend today. New risk mining is australias biggest goal. Reported fouryear earnings, up 22 to 561 million. Output. To get therities is best year hole on returns. Focus on strength. We look at investing in existing operations, looking at projects. New they believe also keeping them shareholdering funds. 19 . Creased dividends by our methodology for investment has stood up well over the last years. We intended to continue the had. That we the company came out with giving the green light to 700 million expansion of its still mill. Thats in ohio. Posted underlying 966 million. Which is higher than the highest estimate out there from analyst. Concern aboutwing potential global recession. Im wondering what are the still telling you about the health of the Global Economy . Mixed story. S a were seeing some softening in the u. S. Still okay. Is we sellly to building customers and automobile construction remains strong. Weve seen some price softening asia. Theast chinas economy is still very strong. Here in australia, a slight softening in residential activity. From that point of view, just a moderate softening from high levels. The regions we operate in, asia, australia and north america, the markets are okay. Tj max reporting earnings. More retail woes ahead. Tj max. Art well inventory is building up and theyre not selling as much merchandise. Trouble spot in the quarter with home good change, there. As flat sales they had not great merchandise selection in that chain. Tjx becauses is, the way their inventory model works they turn it quickly. When they land on the wrong product, theyre able to work quickly. Hat kohls that top line number was grizzly. 2. 9 decline in comparable sales. We see early promise from this has. Nitiative it where its accepting returns of storers. Rchases in its leader there. N a shares of target at record strong earnings gain more than 3 . They got that old feeling back. Quarter where theyve done compensationally well. Higher. K is comps up 3. 4 . Traffic higher. Brain cornell turn around beginning to help. Broughtors, they have private labeled brands you can only get across different sections kids, food, apparel and furniture. They redesign store. Their delivery strategy really bring down margins but drive more traffic to the store. This turn around really showing the numbers. Have a like at quantus. Earnings are out. Isiness side of the business flat. Reported lower. You say that you seen demand for flights to hong kong drop about 10 . Does that continue, do you weakness see further in demand in flights to hong kong . Were taking that for the next few months. Have the flexibility of moving to slightly smaller aircraft. 300 at the moment. Sametially same aircraft, product but less seats. Well do that over the next few months to take 7 of capacity out. Welcome back to bloomberg best. Federal reserve was focus attention this week. On monday President Donald Trump urged the central bank to cut basesst rate by 100 points. It will aid the Global Economy u. S. Ll as the boston fed president was one of two members who voted against a bases point cut in july. He explained his dissent in an interview with bloomberg. Economic conditions are pretty good. A7 3. 7 unemployment is low rate. If you take out some of the outliers, its closer to 2 . Thats exactly 2 . My own view was that we have to be careful not to ease too much dont have significant problems. The focus is not to do something the Exchange Rate or something that necessarily takes care of the world economy. Supposed to focus on unemployment inflation in the united states. Were in a pretty good spot now. There are cost to easing at ease. You dont need to whats the cost . One of the ways that Monetary Policy works, it cause people to earlier thand cars they otherwise would. You choose to make an investment because Interest Rates you think will be temporarily low. You mightxpenditures not otherwise make. When we lower Interest Rates we lower. E cost of that that means in both house holds more likely to be leveraged. Theyre in much more worse shape. We have to think about the Financial Stability curve. Its thinking how much we want firms beingand leveraged. As you look ahead to the september meeting, youre a voting member. The question of cutting rates again. The question will be on the table. You watching the consumer very closely its something that not towardsu waiting to see but saying no, i agree. Im on board. To cut rates again. Im watching a number of things. Im looking at what the consumer doing. Consumer confidence was weaker. Thats something im paying attention to. Sales numbers was quite strong. That would indicate that if that well have enough consumption in the 3rd quarter gdp. Hat will bolster i will Pay Attention to geopolitical concerns. Brexit is coming up in october. Of things to be worried about. We cant really be determining too far inlicy advance. Wellsters still expect get reasonable growth. But i thinkre low its reflective of global conditions. Want to see evidence that were going into something thats more of slow down if im at 2 , im not as worried about that. Up on bloomberg best, more conversations with officials. Jackson hole was buzzing as pressure builds to deliver deeper rate cuts. Members share their perspective on policy debate. We had to be uber data now. I think the best companies succeed as a team, and our shirts from custom ink help bring us together. We just upload our logo, and if we have any questions, Customer Service is there to help. [male] custom ink has hundreds of products to help you look and feel like a team. Get started today at customink. Com. Rosalind youre watching bloomberg best. Reservek, the federal bank of kansas city hosted its symposiumnomic policy in phoenix jackson hole. It was challenges for monetary there and bloomberg was to discuss those very challenges with several of the fed Regional Bank president s. As i look at where the time. Y is, its not yet im not ready to begin to provide more accommodation to seeing any without outlook that suggest the economy is getting weaker here. You were an advocate of raising rates to get ahead of inflation. If youre not ready to cut rates where ratesy with are given that inflation is wouldthan anticipated and you be happy to leave them at this level for quite some time . Think thats a process of judging how the economy unfolds. Rates are now relative to the unemployment and inflation, were at a equilibrium now. Id be happy to leave rates absent seeing only weakness oar strength or strengthening. Where would you put neutral now relative to where you are . Are you tight . You loose . How do you see it . I would judge policy to be at neutral or even accommodative with the last rate cut. About where real Interest Rates are relative to the rate of inflation, were operating close to zero with real rates. I cant believe that is tight any any sense for the economy now. How much accommodation does the economy need . I like to think about the mid90s. The 95 example and 98 example. The viewersof werent around paying attention at that time. At that fed adjust was worried about the asian currency crises. To today. Ar lower the policy rate by 75 points. U. S. Economy powered through episode. E the committee took those insurance cuts away. Baselinehats a great idea about what were looking at now with a global trade war, manufacturing and contraction and possible spillovers to the u. S. Ensure that economy against that and stay out of trouble. Bases think maybe 75 points where you would see us stopping at this point . Im saying thats what they the 1990s. I dont know where well end up. The think that you got field curve thats massively inverted here. You got the funds rate as the highest point on hole, yield curve. Theresto react that been a downdraft in global yields. Insurings it youre against . There doesnt seem to be a demand problem in the u. S. , it seem to be a constant credit problem. This is a global slow down goingeres a trade war on. I dont think resolution likely any time soon. This trade war is triggering world,ctions around the other countries reevaluating their own trade relationships. Get out ofeasily control and easily feed back to the u. S. Case but ity base is something that could happen. I think we should protect against. How does Monetary Policy do that . Stimulateates will economy somewhat, that would help us power through the waters the trade war. Fed iagreement within the think is about much more about how to manage the risks. Economy, see the u. S. The u. S. Consumer is strong. U. S. Consumer stays strong, were not going to have a downturn. Is, manufacturing is weak. Decelerating. Is if those intensify, that will seep into the rest of the economy. The lastmer will be thing to go. What im concerned about is if those negatives intensify, you reports a negative jobs in the number of x number of months. Then youll see weakness in the consumer. If we wait to see that, we would wait too long. Minded that we may need to make a policy adjustment here in the next x number of months and im keeping an open mind and i havent made a decision yet. I will decide before the meeting. How big policy adjustment do you think we need . Was jay powell in his july 31se saying mid course correction, cycle. Reet is in the cut ive been open about saying, unless i see meaningful weakness, i view the adjustments tactical. This as end of rate cutting cycle. I think its very important the data. Tch we have to be uber data dependent now and reacting to whats happening in the economy. Sentiment. Anges in uncertainty causes people to be sort of like, im little bit whats goingut forward. Are they making decisions on uncertainty. We might have