Commodities, and currencies, this is a poll but from the last three days of celebration haired futures are down one point. We look at this turning. The fix is 11. Yearerman tenure is can tenure. This will be part of a we do today. Is back 15 data years. This is the nirvana that we remember. I bought at the bottom. Right there. Is where i bought. Down we go. There is the ab from a year ago. This is what we are seeing from data that is two or three months older. The chief economists were view oning this 2015 housing. We will see that through the morning. Look at bloomer television for more housing economics through the morning. What an interesting set of newspapers and websites. We need to go overseas first for a first front forced page story. This could pave the way for u. S. Airstrikes against a Islamic State forces in syria. The white house makes clear that obama has not up route military action inside syria. He is resisted taking action and getting bogged down there. He is not asking permission from assad. That is very important. Does anybody have an idea in syria where the intelligences . That is classified. Is it in the middle of nowhere 18 miles in from iraq . Is it in the damascus suburbs . About the where of syria. Are doing we intelligence therefore long time. We dont know what to do. That is the bottom line. This is a Double Barrel in the story. Egypt and the United Arab Emirates attacked them in tripoli. The rebels a been fighting for control of tripoli. When you fly to dubai for the first time, it is almost to india. They are the ones with oil. Dubai has no oil. Has the oil. Dhabi it is way far east. It they wereot do supposed to do. The pentagon was displeased that no one asked permission. I think it is interesting that you have some states in the middle east that are taking real ownership over what happens in their region. It is not just americas problem. We will go to peter cook in washington about this. Were they using u. S. Jets . Egypt was using what ever we funded. It was reverse engineered. Our second story is Warren Buffett. Theas a starring role in burger king story. Finance the takeover of tim hortons. Investre hathaway would 3 million. You know the history with them. Heinz lastred to buy year. This is a brazilian private equity firm. The question would be if they have improved product enough or doing financials. Be primechatzker may minister of canada. He make a run for it after his comments in defense of tim hortons. The guy from hockey night in america called them up and told them good job. Game on for amazon. They are buying the video maker twitch. Google had been dying it as well. Amazon is getting and to produce prevent google. They have 55 million active users that can play games. It gives amazon and engaged audience. M a, agame theory of portion of this is action in defense of other people. This is one more point of bubble. That this is a if youre just doing it defensively and there is no business case, that is a problem. They can sell advertising and steer players to shop online. This makes me feel old. I am two years too old to have ever gotten into video games. Watching some the else play a videogame mystifies me. Amazon has content because of the fire smartphone. I got an amazon box at home yesterday with what senate the tape around the box was selling fire. Is all part of the multimedia strategy. It is very smart. This is a good front page. Guest height is from the is from a height of economics. He joins us this morning as we look to the linkage of record equity rices to the Central Bank Policy. Is this a janet yellen stock market . Not entirely. If the Central Banks were not supportive, you would not be getting these outcomes. In a structural change environment that we have been experiencing for the last decade, business is the best adjuster. Gdp as a 50 year high. Share of labor as it very low levels. That is good for the capital side of the economy. What is the burning question now linking economics into investment . When will the volatility that is implicit in a change in Central Bank Policy manifest itself . When we see it right now . Part of the answer is the Central Banks are so reluctant to act in a vigorous way. I think the reasons are obvious. It is hard to believe in the credibility of their assertion that in a years time we are going to tighten. If i understood correctly, the european economy is not bad enough to fix or good enough to get better. The circumstance is related to something janet yellen brought up at jackson hole last week. Had he distinguished between cyclical developments and structural developments . If you think some kind of structural changes happened to the Global Economy and important pieces of it in the last 10 years, things are going to be different cyclically as well. You have banks collapsing all over europe. The same problems. How do you do stimulus . Are you confident that they can get this done . I think by and large all the governments are allergic to using their budgets. That its an excess of rusher on the central bank. We go to the meetings in october. You wonder how they are going to adjust the global gdp view. It isnt very pretty right now. As he look at the Business Cycle overall, the u. S. Companies and their profits and Balance Sheets look so healthy compared to the rest of the world. What Business Cycle are we in . Is the Federal Reserve keeping us in the third inning . We are in the sixth year. That is unusual itself. The fed will finally start to a knowledge that in some sense by tightening policy. A year from now would be the seventh year. That is without resident and modern time. We are going to talk about refinancing. Ago as ween years begin the eighth year of the financial crisis. Can the United States protect itself from a more challenged european economy . You can pay us in euros or dollars as you choose. This is our twitter question of the day. Its get the company news with scarlet. They are cutting 15 of the workforce. Theyre closing asian plants as they shift manufacturing. This is one of the Oldest Companies with 9000 employees. 100 applications have been filed with General Motors for compensation over deaths with faulty ignition switches. The Settlement Fund has received 184 injury claims. Ae problems lingered for decade before gm ordered a recall back in february. Time warner will offer buyouts in the turner broadcasting division. 600 workers will receive offers this week. This is a large restructuring plan. Those are the company news stories. They meet in belarus. This is not a summit but they will be in the same room together. Maybe they will shake hands. Maybe they will bump each other. S they walked last past we are a streaming on your tablet and bloomberg. Com. Good morning good bloomberg surveillance. Zurich will be here. He will talk about the challenges of europe and how it relates to america. Look for that on in the loop. Good morning. Morning. Sday i am tom keene. Joining me a scarlet fu. Mr. Johnson is off. You shouldve told me my bow tie wasnt straightened out. Do i look like the kind of person who knows how to tie a tie . Johnson wouldve told me that. Thats better. That looks better. There is not a total bow tie in minsk. Russian forces are crossing into ukraine. These allegations come hours before Vladimir Putin and Petro Poroshenko will meet for peace talks. Hans nichols is standing by in minsk. Will arrivein minutes from now. Are they actually going to meet and talk to one another . Are they just going to be in the same room . They will have a class photo together. It will be a working lunch. He dont know the answer to that question and we dont know if there will be any progress out of the summit. We know there will be clarity. If they cannot find the time to peacethen all of these talks and ceasefires are just not worth anything. Were back at square one it which is escalating record rhetoric and fighting on the ground. That is bad news for the german and european economies. Our newspapers full of syria and abu dhabi. Our american viewers that dynamic in the ukraine right now. What is the escalation that we need to focus on . The most important escalation happened just a couple of hours ago. Russia acknowledged that their were inside ukraine. Russia added a caveat. This is a semiofficial news agency. Toit amounts acknowledgment. Russia says they are there by accident. That is laughable. The line has been that russia has been supplying and supporting and sending convoys of aid and weapons and arms and intelligence. That is why the fighting continues to go on. That is why the Ukrainian Forces have not been able to route the rebels and a couple of holdout cities in Eastern Ukraine. Is there any agreement shy of piece that we can hope for . And europeoming needs gas. Is there any way they could reach an agreement on Gas Transmission rights . Let me take that into parts. Agreement, this is something ukrainians dont want. They dont want a ceasefire if the other side arms the rebels. They would have a ceasefire without any preconditions. The eu energyks, minister is here. There is some hope that there would be a solution for payment. It there is nothing right now. The weather has turned here a little bit. It is basically still summer. The gas talks will become more important in three or four months when western europe starts to get cold. There is a scathing piece in Foreign Affairs magazine. It is highly critical of washington and berlin. What is the russian view as they travel to belarus . The russian view is that they have an obligation to protect not just russian speaking citizens but citizens in Eastern Ukraine that they feel are being attacked by forces that they call fascist. The images coming out of ukraine are remarkable. Prorebel strongholds of captured ukrainian troops and they are parading them about. This is in violation of geneva conventions. It is remarkable the anger and the animosity that you have in Eastern Ukraine toward the Central Government in kiev. Haunts brings it right over to the economics. You have written about how this meeting is the best opportunity for some sort of revolution resolution to this conflict. Is that still the case . This is the best opportunity. This is not good for western europes economic prospects. We are getting all of the other issues. This is not good for them. It would be very convenient if things settle down. You are in europe. Calculated how much this will make the european economy decline . I dont think you can. We want to thank hans nichols who is on the ground in belarus. He is waiting for Vladimir Putin to arrive on the scene. We will be joined by a guest host. We will discuss Global Economics and the rally in european bonds. That brings us to the twitter question. Can the United States protect itself from the european economy . You can tweet us. We want to hear from you. Good morning. I am tom keene. With me is Brendan Greeley and a scarlet fu. We are showing the moment for finance here in august. Lets get to the top headlines. Stopping the ebola crisis could cost half 1 billion. That is the forecast today from the well world health organization. The death toll may exceed those of all previous Ebola Outbreaks combined. It a pair of gaza highrises were damaged after an israeli airstrike today. Two dozen people were hurt. Or destroyeded five towers and shopping complexes in the last four days. The eye director is hospitalized with injuries after a one car crash. The driven by luis free hit a tree. Topf the toplines headlines this morning. This is the morning mustread. Rendon greeley gets us started. Business week. I think this is the smartest thing written about ferguson. A lot of things are been written about ferguson. He points out that st. Louis county is not exactly a cosmic microcosm of america. The map of the county looks like a shattered pot look broken into 90 municipalities. Ferguson is a problem of city planning. You have tiny municipalities as small as 12 people that try to steal tracks tax revenue from each other. Isnt a divided 19thcentury st. Louis with north and south around the civil war . It is an artifact of the city itself. Try tonty itself incorporate on its own. It left it up to smaller municipalities to take up on their own. Fromave tax revenue taken each other. That is the problem. If were looking about improving relationships between gleason residents, we are missing the problem. We are dealing with wealth inequality. Can we actually help change that . It has been developing for quite some time. It is developing significantly because the economy generated it. It doesnt mean we have to accept it as an attractive way to organize a society. If the policies in place that offset that. Tax policies . Tax policies. Some kind of spending policies as well. You can make sure the kids get the kind of education that opens those opportunities for them down the road. That is an important article. It is great. Global bankers led by janet yellen say labor markets still need to heal. We will discuss coming up. Some of the good things off bloomberg. Com. Good morning, everyone. Markets are turning. But get to the data check. Theres not much to talk about grade 132 on the euro. That is a weaker euro over the last number of days. It is so late. We go into the, eighth year this year. I first heard the phrase. Toone point we wanted refence the bank disaster. Now we just want to refence europe. Now whyo state right should americans be so attuned and afraid of this continued european debacle . It is a very large chunk of the world economy. It is very large. It developed early and is rich. That is significant. We have a lot of businesses in the u. S. Ashave tax aversion issues the centerpiece of this moment. We have a lot of Multinational Companies and they have a very big stake in europe. There cap here is part of their vision of a global environment. Talked about refence, we were talking about this every two hours. Bill gross is concerned about a set of events that could lead to a liquidity event. You see that with negative Interest Rates in germany and slowdowns in gdp and the fall of the french government yesterday and its reorganization. Is there a trust factor within the Banking System . What is the imf going to do with though their global forecasts . There is a g 20 summit coming up in the autumn. Go up byis to have gdp 5 more than it otherwise would over the next five years. They are not near that. The one thing you cannot have is the next recession prematurely. Prevent the how to cyclical downturn that some people are beginning to fear in the feelingyou have there is a structural issue you want to boost to begin with. How much would a weaker euro assault . It wouldnt hurt. It seems like everybody wants a weaker currency. Everybody wants the Federal Reserve to tighten policies of the dollar goes up. The germans dont want a weaker currency. They were taking a Household Survey last month and germans are huge outliers in terms of home ownership. They are not tolerant of inflation not because of history but because of where they have their assets. Is there any hope that this become weaker through action by the ecb . I think draghi has given a certain set of signals. What would be the catalyst to begin fullblown qualitative easing . The hard part is what does it do to give Government Bond yields than they are . Italian bonds are at record lows now. What you want is to get the private sector credit more liberal than it otherwise would be. That is hard to do in europe because they dont have as well a developed securities market. They have to get that going. Is paul krugman correct . He is associated with banks arriving down to the zero Interest Rate level and that only gets you so far. Has he been right for seven years . The one bit of evidence i need some hate mail to come in. In europe, you cant talk about the great recession. You have to make that world. , is it comingty over here . You look at the evidence about the infrastructure in this country, it is clear that we could use a fair amount of government spending. You asked about any quality. Government spending programs would help in that regard and our infrastructure oriented. I have interviewed the resident of estonia. He is from new jersey. He went to columbia. Nice shameless plug. Dork trivia. Ont of i have interviewed him as well. I have not. Draghi seemed desperate in jackson hole. He seemed to want people to do anything to have any confidence in any country to fix their own problems. The concern is everybody is allergic to physical effort. Dash, the biggest thing they have done is raise taxes on consumers. Everyone is a bit allergic. You have to have a certain sympathy for that because in the next couple of decades, the budgets are going to be strained because of demographics. There are a lot of old people coming. They dont have private resources and they will have to be supported by the government. That lookinancials greek or japanese or fix the budget now. That is one set of arguments. The other set which is more in the krugman line of thinking is if you use physical effort now, you will have a bigger gdp and it will be easier to carry those burdens later. The evidence is that the body politics everywhere has chosen a degree of austerity. I just wrote down my message for the morning. Is fix the have budget now so we can trash it later. I wanted to bring in my morning mustread. A couple of the takeaways from the trading activity is the markets move nicely together and were boosted by faith in the Central Banks. At other times equities decoupled. This marcheve in higher inequities . I think the issue is that if