Establishment. Welcome to countdown everybody. I am anna edwards. 6 00 in london. Many people focused on what is happening in wyoming over the weekend. That seems to be the focus of the markets attention, eerie calm as we wait for janet yellen who will be speaking, there. Lettuce for the risk radar on various Asset Classes overnight, the dollar rally the theme, a fourday street. Fairly flat now, how hawkish will janet yellen be . Even if she is dovish about the longterm, how contrasting will centralbank policy seem to be across the atlantic . And will that do to the yen . Questions as we go towards jackson hole. The shanghai composite in there for you because it is one of the few Asset Classes that we are seeing, down by 1 . The broader asian picture is fairly flat, illustrating with the msci asianpacific questions around shanghai, will be government decrease Financial Markets once again. Crude oil in there up by one quarter of a percent, fairly sluggish at 46. 88. Holding your the oneweek low. Stockpilesd u. S. Across the bloomberg, weighing on oil prices. Let us get the bloomberg first word news. Here a shery ahn shery the helicopter money will be japans next big experiment and it could happen next month. The executive chairman of Templeton Emerging Markets says provisional in easing measures have just made people save, rather than spend or borrow. He added that that combined with a stronger yen of force the bank of japan to contemplate a policy, or completely rejected. They will engage in helicopter money with great care and great reluctance, and of course if they do it to carefully they will not have any side effects to the dilemma they are facing. A new report says investors pulled more than 25 billion and hedge funds last month, the biggest redemption since february 2009. Total outflows this year are close to 56 billion, driven by performance. Hedge funds are mounting criticism from climat clients, g to keep pace with stock market benchmarks. And it is almost time to short the crude rally, but according to the new ceo of phibro, there was once a large independent u. S. Refinery. Simon greenfield said traders should short wti crude at 50 dollars a barrel. And he says members of opec will not cut out outlet. Age appeared at a rally with donald trump in jackson, mississippi. Decisionof britains to leave the European Union as a positive example, and urged supporters to get out to vote against the quote establishment. Nigel if you want change in this country, you better get your walking boots on. You better get out there campaigning. And remember, anything is possible if enough decent people are prepared to stand up against the establishment. Thank you very much. Good evening. Facerump the issues we here in america are similar to the issues faced in britain oring their referendum, membership in the European Union. Worldsne of the longest running insurgency is over after columbia returned a deal with farc revels. And the agreement legitimizes the rebel political wing, legitimizing the upcoming weapon. Columbia says the dividend will at a full percentage point to grow. Global news 24 hours a day powered by more than 2600 journalists and analysts in more than 100 20 countries. You can find more stories on the bloomberg at top. I am shery ahn. Anna shery ahn in hong kong. Sally in hong kong, with details on the trading session. And an eerie call seems to be an apt phrase, apart from chinese equity markets perhaps. Juliette that is right, and. The waiting game continues, all week, a load of analysts saying what happens if janet yellen does not provide the impetus that markets are looking for . But there is little bit of calm, flat movement on the nikkei and in hong kong. Shanghai seeing reports that they may actually, or china i should say, may hold meetings to discuss the surging property includinghanghai, restrictions on bank loans for developers. We have seen a bit of weakness coming through following the lunch break, just coming out of that at the moment. 1. 1 . Market down by as i mentioned in hong kong, things ok. Although we have seen some downward pressure and energy pressures, disappointing earnings numbers, listed. And in australia, those are weaker, down by half of 1 . Pretty flat though there on the nikkei and original index as well. Having a look at some of the movers we are watching today in asian trade, galaxy just came through during the lunch break in hong kong with secondquarter earnings which were up 22 from a year earlier. This is a lot more than what analysts were looking for, thanks to the opening of a number of new casinos. Ofng very well in australia, the most in 10 months as it exits the underperforming market business answering to see a bit of a turnaround in food sales in australia. And if you are an olympic gold medalist, you will get free flight for life from air asia. That stock still coming under pressure on the back of yesterdays news, the Energy Players on hong kong following the earnings. Anna juliette, thank you very much. I sure hope we can find a sport weekend win at. Nice price. Juliette saly and hong kong. The jackson hole symposium kicks off in wyoming and investors will be listening for clues about the future of Interest Rates with a Market Pricing in a hike in the end of the year, bloombergs Michael Mckee has this report. Fed as the kansas city been holding the animals impose the him for four years, and 38 of them, the academic key is to not attend. Twice, ben bernanke laid out that policy, and that has wall street wondering what janet yellen will do with her keen it onfriday that keynote friday. She will preserve options. The fed want to see the Economic Data from august and september before has to make a decision at the next meeting on september 21. We have had said vice chair fisher and bill dudley just a september meeting is live, but whether or not janet yellen suggest they are imminently close to Interest Rate increase is something we will find out on friday. Michael mckee, bloomberg, jackson hole, wyoming. For and it to him tomorrow our special coverage of the jackson hole economic symposium, including James Bullard and jerome powell. Friday will be full of plenty of conversation coming out of jackson hole. Let us think about what we are going to hear, build on what mike mckee was reporting. Lets bring in the chief economist, who joins us on the set in london. Great to have you on the program, megan. I have had a few people contrast they will be might hear from janet yellen around the shortterm and the direction of Interest Rates in the u. S. And the more longterm, maybe hawkish about the shortterm, dovish about the longerterm. We will read into that. Megan i think it is important to remember these fed conferences are incredibly academic. We had a few instances where they have actually provided some policy inside. I think it is pretty unlikely will get anything from janet yellen. As michael mentioned, we are from, theslew of data meeting and the most will probably get is data dependent. And they will be watching the data carefully. I think that the market is slightly disappointed that we saw the dollar flat today. I dont think it will get much chance from Janet Yellens speech. Anna we have a great story on the bloomberg day, master of the aiverse, lummox by the fed, lot of expectation in the bottom market particular. I have a chart coming from votto suggesting the, way the bond market has not responded in maybe the way the Foreign Exchange markets have, some of the more hawkish comes we have had coming through from fed officials. And that leaves markets poised for any clues we get from janet yellen to bridge the gap in understanding about where the fed goes. What that could all be for naught. Megan i think we will continue leaves. The tea budget jan has never put yourself in a corner when she did not need to. And i dont think she needs to prime, the market at the moment particularly given how much data we have at the moment. The fed does not know what theyre doing just yet. But she will be doing just that, Say Something for everyone and get some wiggle room. Rightly thisnt out is an academic a dent, designing the monetary framework for the future. It sounds like an absolute symposium. But they do sometimes, as mike was suggesting, throw up comments about policy. How much are we learning about divergent policy across the atlantic, or perhaps more importantly across the pacific, because there are many waiting around the world to feel how divergent u. S. Policy can get from the rest of the world . Megan i think the most important discussion will be the new framework for Monetary PolicyGoing Forward. At a medium to longterm, i think there is a lot of convergence on that in that the fed, ecb, boj all think we need a new framework for Monetary Policy, but another know exactly what it should look like. Anna what does that mean . What is broken at the moment unemployment,ng and a low Interest Rate world, we have to suggest other things. Some suggested we needed target higher inflation. Right now is a great time to increase the target when you cannot hit the lower one. In the shortterm, that is not really a credible option. But now is the time to discuss that. Targeting nominal gdp is another idea. I dont think that is materially different for Central Banks from what they are already targeting, officially or unofficially. Anna while that was seen in the 90s and the 2000s as something that was, you know, almost religiously defended, now not many voices are saying when you have not independent Central Banks, but there are questions about how fiscal policy needs to respond, is coordination a gentle chip away at the kind of independence . Or is coordination ok and that takes us to the dangerous helicopter money . Particular,in independence is really say sacred. And the fact that i think japan will probably engage in helicopter money over the next 12 months, ecb may well follow. If governments are not really ready to provide the fiscal stimulus than Central Banks might have to coopt it and engage in helicopter money which impinges on Central Banks. Anna we will talk about mobius, japan. Sticking with the united states, this all takes place in jackson hole wyoming, taking place in the runup to the u. S. Election in november. Do you think the politics is playing out, certainly talking about independence donald trump has not been quiet about the independence of Central Banks . Megan but that is also concerned, particularly in light of the donald trump victory, because he said he would audit the fe. D. They would like to avoid being seen to potentially influence the election, and the december i think well have a lot of policy of 30 regardless of who wins. And that could include the rate pass as well. Anna a lot of uncertainty with that election looming. Megan green stays with us from asset management. Let us bring you uptodate with what is happening in italy. The death toll from wednesdays powerful earthquake has reached 150 nine. Emergency services worked through the night to find survivors on the magnitude six trevor. The Prime Minister has pledged a responset. Ment thoughtsod to get your this morning. What is the latest situation on the ground in central italy . Kevin the latest is we just had an update on the number of deaths, in fact up now to 247. There are several hundred people who have been injured, and in fact there are thousands when we lost their homes. Delivers 60 aftershocks which really affected the people. And this will go forth for a while now. Anna the death toll continues to ride. Immediate focus on trying to find survivors and bury the dead, but what will be the futures for these mountainous villages. It was only 2009 we saw the big earthquake in this area . Kevin yes, in fact there will be a major rebuilding effort running into the hundreds of million euros. And the people that have been watching closely, this is a rural area. The people there want to make sure they get the same kind of attention that people in bigger cities would. You mentioned the 2009 earthquake, in fact then Prime MinisterSilvio Burroughs was hardly criticized for rebuilding effort. Anna there is already talk about how this will play into the political story in italy. To what extent do we expect Prime Minister renzi be judged on his ability to cope. Berlusconi wasow judge. Kevin he was pretty harshly judge. Renzis 41 years old, very much hours after the earthquake. He went up to see the affected site and he said the government would respond very. Referendum a major in the automatic some people who want to judge him how he response to a leader, before they cast a vote. Anna Kevin Costello our and are joining us from italy. The latest on a devastating earthquake. We will update you through the program. Here are some highlights on the economic front on the day ahead. At 9 00 u. K. Time, we get the iphone survey out of germany. And it is u. S. Initial jobless claims. And the data also do. Is scheduled to give evidence and statements in San Francisco related to the emissions scandal. And dominoes is planning the worlds first commercial drone pizza delivery. But does a slice from above come with competitions . More on that. It can ben japan, more than just pizza falling from the sky. As helicopter money really the answer . And the South African finance minister says he will not obey a police order for questioning. All of that still ahead on bloomberg. Welcome back. This is countdown. Time in london is 6 21. Hong kong is 121. Hang seng fairly flat. Chinese equity markets weaker this morning. Let us get the Bloomberg Business flash. Erie shery ahn. Shery shares in hp tumbled after the quarterly growth forecast fell short of . 37, lower. 34 to than the estimates of . 40, as the printer maker struggles with slumping demand for its products. Chinese regulators are investigating a highspeed trading firm in connection with stock in the future dealings. They have received inquiries, related to futures trading at the chinese affiliates. They have been cracking down in the wake of last years market. Monsanto sent a letter field that it is withdrawing applications for indian approval of its next generation genetically modified cotton seeds. March it was in reevaluating the business in india, after cuts to royalties. The company says it will pull the obligation, because of regulatory uncertainty and ongoing discussion. Pharmaceuticals fell 3 in new york after two of the patterns were invalidated in the u. S. And multiple sclerosis drug that generates 20 of the israeli companys revenue. The patents were jams by rivals who want to make cheaper versions of the drugs, a decision on a third patent should be reached next week. New zealand led the world when the vote. Men now, it is claiming another worlds first, pizza delivery by drone. Dominoes is joining forces with usbased selfproclaimed robot firstor for the worlds commercial pizza delivery. The Fast Food Company says it will Start Testing the service in new zealand later this year, and is also looking at drones in andemium belgium plan, in germany. That is your Bloomberg Business flash. Anna thanks very much. Shery ahn joining us from hong kong. Thailands National Oil Companies of the Energy Market is increasingly oversupplied, with new longterm contracts. The trend as it plans a new shopping spree. The company ceo told bloomberg expects crude prices to head higher. Wefor the rest of this year, think that it will be between 45 and 50. And we will be planning to proceed with the price gradually growing up to 50 or 60 in the next few years. In the longer term, maybe 60 is something we should plan our investment on. Of asset lifeeen management is with us. We have contrasting forecasts about where oil will go. That is coming from ptt, talking about increasing the oil price. Many copies like to see that. On the other side, great on the bloomberg today, oil traders at phibro recommending shorting crude at 50. You can find many opinions on where oil goes, and there are lots in the world. Where do you see oil heading next . Megan yet, so i think oil will continue to be pretty volatile, because it is driven in large part by what is going in Financial Markets these days. But i do think that oil prices are stabilizing and will increase over the next couple of years. So, it is the hardest thing to forecast and the first thing that goes into every Economic Forecasting model, arguably the most important thing to get right. But i do think oil prices have huge implication for inflation globally, and if im right, if oil prices are going up, we will get news that is good. They are higher year on year, so we are used to seeing Central Banks missed the inflation target by huge amounts, and i think that will end actually. Only temporarily, and will not be for structural reasons for physical reasons. Anna is the highlight of the statistics going into the model, this comes from the story we have on phibro, talking about how oil has rallied 60 since simon green shield, who runs the company now, showing that rally in oil prices. U. S. Natural gas in blue, crude in white. That is a significant increase. We are still talking about oil prices being relatively low, compared to recent history. And yes, a 50 rally. Megan that is right. And like i said, that will feed into inflation figures. But once again it will not be sustained. This is all based on a fact, going into next year i dont think we see that pressure. Other influences in the u. S. Our import pri