As well. We have base metal seeing some strength today. Easternt 9 00 p. M. Time, President Trump addresses the nation laying out plans for afghanistan and he will hold a rally in arizona tomorrow, the first visit to the state since he was elected. Whole foods will hold a meeting takeovere the acquisition by amazon and thursday, the Kansas City Fed hosts the annual jackson hole economic symposium. Janet yellen and mario draghi are on the schedule for friday. The big event. Lateran the big event this week as the president heads back to washington, d. C. , investors are left guessing what the latest shakeup in the white house means for policy. After the news van and was out, the markets bannon was out, markets initially were up, but then they closed down. Is jan us now for more lloyd, jpmorgans head of global Asset Acquisition what was the message in the price section on friday . Is worried about where policy is going. We are used to politics. When policy gets affected, in particular, can this administration and congress get some kind of tax reform fiscal stimulus going through and we are all kind of not sure its really going to happen. Most of us didnt put it into our forecast, but we all thought if things go wrong with the forecast, at least we get some fiscal stimulus. That is what makes friday all the more interesting because we painted this picture of a tugofwar between nationalists. It shouldve been a positive for risk on friday and it was for the best part of five minutes and then it rolled over. I am grappling with why that happened. We wentwent jan into august historically and investors got nervous. Suddenly it comes from washington again. I think it is used to take some profits here and wait for the next signal which will come from the economy. Alix there is another narrative percolating through the market that we saw a cohn rally and not a trump rally. The white bar here is when you wound up having markets that perhaps cohn would leave and you saw s p decline and the vix rally. Left thehere bannon white house. Is this really because we want more evidence that the globalists like mnuchin and cohn have more power in the white house . Jan yes, we like to see the progrowth, coherent Business People are taking control. What we have right now is not a lot of action. Alix what would you need to see to be more confident globalist are taking action . What is going to give you confidence . Jan moore the lack of more the lack of more the lack of trump kind of politics. If he goes a bit more quiet, that will be enough evidence that the globalists are having an impact. Alix less tweeting. David how much of this is policy and how much of it is actually process . Maybe general kelly is getting his arms around this presidency wherever it is headed good jan we can be hopeful on that. We still need evidence on that. Process and policy go together. This administration has not been able to deliver much in terms of policy. On paper, it should have been massively powerful. It is a pro business government, but it cannot get its act together. We are waiting for some evidence that it is making progress. Eys will belo staying with us. Joining us now is brad blakeman. When you were on bloomberg tv on friday, the markets were rallying on the news steve bannon had left. You came on and said what they need to do is get their act together. Get somebody in the white house calling the shots and the markets trailed off. Brad right now there is a void in the senior staff. We have many key people that left, but those positions need to be field filled. General kelly has to become limited by a good political person, communications person, and policy person, they need to act as a team. As your guest before me suggested, that got to have an agenda, a policy for the fall, something that is concrete and something that will get done. Promises made must be promises kept and especially getting the economy moving talking about jobs and infrastructure and taxes. Things have to get done, we know the debt ceiling has to be raised and the budget has to be done. The legislative component is really key for the fall. David you worked in the white house and you know how it works. The chief of staff typically is key to that process, not so much in setting the policy as making sure there are affected they are affected traffic cops. Brad no question about it. Thats why the chief of staff has to take control of the president s schedule. There is only a finite period of time the president has to work with other peoples schedule like congress. Access, schedule, message, and direction is what this white house needs in order to be effective. Alix part of the rhetoric over the weekend was the globalists takeover and the economic nationalist take a backseat, but then we heard the white house we heard the white house launched an investigation in china. Is it easy to dismiss the nationalistic feel in the white house . Brad i think we need to get back to basis that got trump to the presidency and that is, we are going to put america first. Were going to make sure regulation is not stifling jobs and were going to hold peoples feet to the fire in trade deals we have made and i think that is what is missing here, the enforcement and the legislation to back that up to get the markets moving and to create jobs and certainty in the marketplace. Jonathan it was a populist platform. The first thing the president attempted to do along with congress was do something about health care and effectively take things away from people. Do not takedidates things away from people, they give them more. That tension shortly still exists. Brad it does. I am atem is broken bit victim of obamacare and in october i will get my letter. Egarding rates and coverage my Health Care Provider pulled out of virginia, so i do not have United Health care anymore. Unless they fix health care, i am talking about Health Care Fix that israel and certain and predictable, then they are going to have real problems. The people will hold their feet to the fire with midterm elections. David i want to bring up something on the bloomberg terminal. Its a question of how small cap stocks are doing relative to largecap stocks as a. As opposed to the president s approval rating. The blue here is the ratio at the white is president ial approval. What this says is when the president came in there was hope and optimism for Smaller Companies. They were going to really do well. It has gone down with the president ial approval rating. How much of a political problem is this for the resident of the United States . Nathan its a big prop brad its a big problem because it is the Small Businesses that chin up our economy and they need help. They need tax relief and regulatory relief and its not the talking of regulation or legislation, its the ability to an act it and that is enact it and that is what is going to happen in 2017. That has to be the year of action. If they do not have significant legislation passed by december 15, 2018 will be a rough year for everyone. Jonathan brad blakeman, we appreciate your time. Coming up is dan akerson. From new york city, counting you down to the market opened with futures stable, you are watching bloomberg tv. Jonathan investors are turning attention to jackson hole, wyoming, as janet yellen apparent that prepares to address tempered inflation. It is feasible that they could even start hiking before they fully taper. Think about it country like germany. What is tapering going to do for germany . Not much. They could use a rate hike. Investors should more attention to draghi then yellen next week. I will more attention to mario draghi. I dont think the fed is going to want to shake the process, so i do not expect janet yellen as chair of the fed to be saying anything. Jonathan with draghi taking center stage, here to discuss is eys and Michael Mckee. What can we expect because there were doubts last week as to whether this would be the market moving speech ahead of potential tapering in a couple of might months . Has becomeon hole this foreign that global wall street expects central bankers to make announcements because ben bernanke did it twice it most of the time the speeches we get are rather bland and academic and i would suspect those concerns are correct because you go back to the last ecb meeting and draghi set at the time the governing Council Agreed to wait until the autumn to discuss the mechanics of qe and the timing of qe. To this is not autumn yet and he is also a long way from home and remarks like that are probably better given if you are going to get specific hints or clues at an ecb meeting or a forum in europe rather than here in the United States. Jonathan we also learned of the last meeting that they are essentially worried about getting boxed in. Do know that the speech is going to be in line with the conference,e of the but that will hardly restrict him from what he wants to say. Michael you could say anything in that. What may box him in is his counterpart, janet yellen. Even mildly that the fed is on track, thats a boost for the dollar and if the dollar goes up, inflation in the eurozone is going down and that is a problem for the eurozone and it moves them farther away from their qe. That is a problem for them that they are going to have to discuss the other issue for the withdrawal will be more complicated than the fed because of all the things they bought from so many countries and they may not even have the Technical Details ready by september so they will have to really do a lot of work for the get to the point where he wants to talk about it. Alix from a market perspective, what are you watching more . Has ae know mr. Draghi program. On paper he is supposed to be purely targeting inflation. He is well below his target. What is he talking about normalization . It is inflation versus growth. On the u. S. Side, we have a central bank and supposed to be looking at jobs, the real economy, and inflation. The ecb is only supposed to be looking at inflation, but we all thinks in terms of you have a stronger economy, wire you easing . Europe is saying, he dont we dont need this anymore. Alix the other issue is financial conditions they have been tightening over in europe as the euro has been moving and the question is, does he try to drive the euro lower in the speech question mark will that be the appropriate forum for him to do that . . Michael he did kind of lay the groundwork for european qe. It would not be a surprise if he said something that does move the markets, but its probably not his goal at this time. His remarks may be more focused on the generalities of how Central Banks add to more stable growing economy. Bitd lay that out a little good thousand 14 he laid out a theoretical framework for qe and qe followed it is not likely to do mechanics right now. What if he did lay out the theoretical framework, would the markets move on that and how . Michael yes, because they priced it in. They kind of expect draghi to talk about it. Its kind of this overall theme that you go to jackson hole and you get something from central seems to be aaghi set up. The question is will he disappoints them and not really give them enough to move on . Jonathan to some extent we have the framework in the ecb forum in portugal. If the economy improves, you have to remove accommodations to keep it consistent. Isnt that what he is going to a dozen that cancel what you said earlier . Jan the framework says a stronger economy should give you policy number was a normalization. Jonathan they are talking about taking the current rate of purchases down a notch. Jan it remains massively low his below his inflation target. Basist basis, hes got no getting out of quantitative easing so he has a problem Northern Europe is pushing him to get out because they dont really believe in this inflation target. Its a political issue rather than mechanical or policy. It could be that what he could do is expand on that idea and the markets would want to read into it, but lay out again what the ecbs framework is that they are looking at inflation. If you look at the chart i brought, its social it social it shows Central Banks way below target. Its hard on a political basis to make the case that you want to withdraw accommodation. He could talk about that. David as jonathan says, its sintra and he laid out the framework and he actually had to come out and says dont go too fast and dont over interpret what mario draghi said. How can he introduced this framework without driving the euro . Michael if you repeats, basically. What he said at sintra was that deflation was no longer a concern and that Central Banks were focused on inflation and that changed the whole dynamic of the conversation. He already said that, so if he repeats what yard he said, you might get Market Reaction that day, but it would be easier to walk back. Loeys will be staying with us. Esther george, Kansas City Fed president robert kaplan, and the cleveland fed president. Live from new york, this is bloomberg. Taylor this is bloomberg daybreak i am taylor riggs. The battle foron oncor electric. Theyve agreed to by the Texas Utility for almost 9. 5 billion. It is another sign that m a activity in the Energy Sector is picking up after a long downturn. Total agreed to buy marist order oil and gas. Assume 2. 5lso billion in debt. They say they are ready to make acquisitions to growth production. Interested in buying fiat chryslers jeep division. They didnt say whether the companies have begin negotiation. Inysler already makes jeeps china with a local partner. In, chair yellen out. The last poll shows two thirds said chair yellen would not be renominated as the head of the fed and 49 of those economist told gary cohn as the front runner to lead. Also in contention loeyswith us is jan and Michael Mckee. Some of the rhetoric is gary cohn didnt leave the white house despite pressure because he really wanted the fed job. Is that some thing that is true . Michael we are all just speculating. None of the people that enter that survey knows. Donald trumpwhy thinks the way he thinks. This is a wild card. He could easily come out and say he is renominated janet yellen. He has done conventional things when he has talked unconventionally. He has not attacked north korea. A lot of what his rhetoric is doesnt match the reality and if he wants low Interest Rates and the economy to keep going at a time that it has been going reasonably well, theres no reason he couldnt renominated her except for the rhetoric around it. One of the problems they are going to have is republicans on capitol hill know she has basically been a democrat and was appointed by a democrat and they would like their own person. There is a strong chance she is replaced, not necessarily by gary cohn, a democrat from wall street. And hes part of the selection process, too. Michael we have seen that happen before. You look at the markets in what happened when there were rumors he might be leaving. What happens if you dont name him fed chair and he walks out of the white house . Where are you . Is wall street feeling it has somebody on the inside that can control the president s impulses. That is an open question. David how do you take this into account or can you take it into account because we dont even really know what gary cohn would do in terms of Monetary Policy if he were chair of the fed. Jan i think what we are looking at is do we have somebody that can lead a central bank and who can make common sense decisions that are right for the dollar and markets. We are wary about this president may be putting in somebody in there that is not what we call conventional. Gary cohn will be almost not exactly a conventional economists. At the same time, you need some of the that can run the organization and look at all the input. They have enough economists over there. We dont necessarily need another one. As long as they can make appropriate decisions, lets do this, the market is going to be happy. Jonathan the existing fed chair has a speech to make on Financial Stability and she can echo the Stanley Fischer oped last week or she can set something up that relates to wanted Monetary Policy. Any idea where she is going . Michael no real handle except she is going to talk about Financial Stability. She talked about it in the past relating the Monetary Policy to asset prices. Qe trying tonto drive up asset prices and they have done that. The question is, have they gone too far . In the past she said no, but if you look at the bill dudley argument from last week that we are seeing financial conditions loosen and markets continue to set new records, that is something to be concerned about. She could endorse that and that would be a concern for the markets and they would start to see that fourth rate increase is priced in. Alix much more on what we will hear from janet yellen on friday. The head of Global Economics will be joining us. Yellen, draghi, which is more important . This is bloomberg. Jonathan from new york, this is bloomberg daybreak. I am Jonathan Ferro two hours away from the cash open. Futures are stable in the United States. We go nowhere on the dow and pretty much nowhere on the s p 500 after two street weeks of losses on the s p for the First Time Since the middle of may. We find a bit of stability in todays session. In the fx market, very muted. Eurodollar going nowhere at 2. 1764. Bank of America Merrill lynch survey pointing out this one, catching the story as the most crowded trade in the fx market, its the short dollar story that is changing throughout 2017. On the other side has been than 1. 1 764. Story of treasuries have a firmer footing, yields lower by two basis points. 2. 18 is your yield on a u. S. 10year. Here is taylor riggs. Taylor in marseille, at least one woman was killed after a car ran into two bus stops. Another p