Them more gradually. But the longer we wait, the more i see us as having to raise rates quickly in response to a stronger economy and perhaps more inflation. Chuck hagel is saying the pentagon may be forced to review its budget to fight isis. On the move, russia is saying an aid convoy is making its way to the ukrainian city as Angela Merkel is preparing to meet with ukrainian president poroshenko. Good morning, everybody. Good morning. Welcome. Its friday. Were almost done with the week, arent we . But a lot still going on. Very glad youre with us. We have two hours together and its all about janet yellen today. We have no large Economic Data thats due to hit our wires. Were very much in wait and see mode as janet yellen is prepared to address delegates at jackson hole today. The debate going on on the sidelines is that the market and the economy are both Strong Enough to warrant a rate hike. Philadelphia fed president Charles Plosser thinks its time to move. I would prefer us raising rates sooner and raising them more gradually. But the longer we wait, the more i see it as us having to raise them more quickly in response to a stoppinger economy and perhaps inflation. So we need to talk more about fed policy, we need to talk about the markets, we need to put it altogether and talk about it. Les keiken is with us here for the top of the show. Hi, les. Good morning. How are you . Pretty good. What are your anticipations with regard to fed policy and what we hear from the fed today . I think our economists generally dont expect something too exciting out of the meeting. Out of the symposium, we should say. Out of the symposium. This time around, we have janet yellen presenting. She is at the dovish end of the spectrum in the fed. I think thats the tone we will get out of it. A slightly dovish message out of that from the yellen speech. What do you think the main issues are, though, that theyre looking at . Are they looking at the risk of inflation deflation . Are they looking at the risk of a stronger weaker labor force . Are they looking at how the general Global Environment is faring . Whats the main thing thats really moving them at the moment . Well, the topic is very much the labor market. Theyll be talking about the slack in the u. S. Labor market as there are conflicting messages you can get from different data sets that janet yellen will look at. Today, we wouldnt expect much. A viewer just mentioned that theres a slightly dovish tone, but neglect overexciting. You wouldnt expect a large qualitative reaction. At the risk of anything, probably a little bit more than something negative. So if she were to talk more aggressively, thats probably where we would get a larger reaction. But its not something we necessarily expect approximately later on the me year, i think thats a larger danger. And youre a Global Equity strategist, as said. The markets right now, they seem so resilient to the faster data thats out. Weve completely forgotten how to react to soft data by the looks of things. How do you trade at the moment . Whats your advice to people weve talked to . I think at the moment, and certainly for the mid cycle development, that does favor risky assets. That doesnt mean that you dont get setbacks. You get a 5 to 10 reaction on afghanistan two times per year. That could be triggered by the fed, at some point changing the messaging. Weve seen in the uk, mark carney mentioned the speech, were focusing attention towards the first rate hike and thats something ultimately that will have to happen with the u. S. In the fed, as well. When that happens, i think ek markets will be set back. If you look historically, equities have ahead of the first rate hike. Thats something well be looking for at some point in the second half. Is there a market now that you look at i wouldnt say using the favorite markets to buy . Eurozone is under performing a business. I can thats something to look at from an equity perspective. Thank you very much. Global equity analyst. Coming up, we will be speaking first to cnbc to st. Louis fed president James Bullard taking place at 1400 cet. At mid time, 1800 cet, well be hearing from atlanta fed president dennis lockhart. Weve got figures from the fed, the ecb, the bank of england, the boj, all speaking today from the jackson hole symposium. We need 20 check in on the european markets. Were flat as a danish pancake. I call this a flat start to the session, as anticipated. As i said, we have no Economic Data out. Were digesting the data we saw in here yesterday, the weaker pmis, the weaker retail data, the chinese manufacturing data this week. What goes up must come down, as well. I would call these markets flattish. Looking at the debt markets, whats going on in bonds, buying across the board, pushing yields a little bit south. Things are below 1 now again in the tenyear bund. That might be something you want to take note of once again. Currency markets with the euro dollar, 1. 3287. So pretty much the same story as what we were looking at. Yesterday. What happened in asia and whats happening now . Sri jegarajah is in singapore rapping everything up for us. Hi, skree. Hi, louisa. We are wrapping up the trading day and the trading week here in this region. We did get some support from wall street, the s p 500 and another record high as a close. Also, some upbeat data that when you were talking about. Thats backstopping a lot of these markets. Theyre in a consolidation or a wait and see mode. Other side of the flat line, we havent seen much moment above and beyond the 0. 5 . I want to talk about one market. Thats the jakarta composite. Were following the politics because weve got the green light for the president elect. This wasnt without some uncertainty, though. Earlier today, the Constitutional Court as expected, they unanimously upheld last month president ial election results. And now rododo will start his new fiveyear term on october 30th. Its not going to be without challenges, though. Indonesia is still a deficit country. Reform the subsidy profile in indonesia. That involves fuel price hikes. He has said that he hopes the fuel price rises and that is some sign that he is fighting the bullet here. Elsewhere, the Greater China markets recovered after a shaky day yesterday. We saw sizable declines in the shanghai composite. We was talking about that likelihood in Research Report earlier on today. So the markets are trying to front run that. As well, we are standing, louisa, just ahead of jackson hole. No one really wants to commit to any big positions just ahead of what janet yellen has to say. Back to you now. Which might be understandable, sri. Before we go, do you know jello . Do you eat jello . How do you describe it . They call it jelloo in america. When i grew up in the uk, it was jelly. Exactly. My mother used to make it, too. But apparently people arent buying it any more, sri. Thank you for that. Later on today, jello shaeres are wiggling and wobbling. Find out what americans are turning to. It is primarily found in the u. S. , i would agree with that. It is back to school season. If youre in ecommerce, should you already been talking about targeting customers for christmas . Also, it may have been a record august at the u. S. Box office. We take a look at the seasons flops and hits, as well. Coming up, emily tan, shes been finding out some home truths about the Congress LongProperty Market. Well be checking in on that, too. Well see you in a second. These were recently put on the market. The Property Market is asking for 100 million u. S. This would be the worlds most expensive home per square foot. Most of us are not made of that type of money. When we come back, we take a look at what the u. S. Dollar can buy you in this town. Welcome back, everybody. Im louisa bojesen. Good morning. United airlines is trying to win the hearts of business travelers through their stomachs. The airline is upgrading first class options and replacing small snacks can full meals. Passengers will be getting meals like chicken and mozzarella on a sizer roll. The upgrade is expected to begin in february. Shares yesterday closing off by a bit. We want to hear from you. Does better food make you go to a specific airline join the conversation hiesh on worldwide exchange. Worldwide cnbc. Com. Find us on twitter, cnbcwex. Or directly to me, louisabojesen. 12 peaks in hong kong being billed as the most expensive apartments in the world. This as prices in the city lead to record highs. Investments back in 1997 for 346,000. After generating decent rental income over the years, he thought the time was right to cash in. I think the market is really high. In case the markets need to be and then i will do it again the. She made a profit of 170,000 on her 17year investment, but it wasnt always a winning bet. In 2003, she was in negative equity. And 11 years on, she believes the market has now topped. Were in the hong kong territory, a three bedroom, one bathroom apartment measuring 395 square feet. So for 517,000 u. S. Small and medium sized apartments saw the biggest rise in prices over the past six months. According to the government, wading in valuation apartments. A survey has found the average hong kong household is currently unable to afford even if most modest of homes. What can u. S. Dollars buy you . It can buy you a transportation to city or buy the cost area. Developers in this town seem to be ignoring the governments attempt to wane new property prices. These homes were recently put on the market with an asking price of more than 100 million, if sold, will become the worlds most expensive homes in terms of price per square foot. A lot of analysts were expecting the market to be down 10 , 25 to 30 even. Were all revising up right now. Some in the market are calling for further upside by around 10 is by the end of the year. Cnbc, hong kong. Emily tan joins us live from hong kong. As usual, it depends on how much you have to spend, what you want to buy, things like that. Thats right, louisa. If you want to know what you can get for 100 million, its a 4,600 square feet, a private pool, as well as a terrace. So it remain toes be seen whether or not it will be sold. Data is showing hong kong property prices are at record highs. The latest figure puts it at a record high. The official price index has gone up for three consecutive months. Were seeing the market continuing to heat up because of pent up demand as well as basically we got a number of issues affecting the Hong Kong Market. Like low interest rates. Current stability as well as government regulations on development and a limited land supply. We have the financial secretary here in hong kong worry background the perfect storm. Weve got, of course, Price Inflation and potentially stagflation. So lets talk more about the Hong Kong Market here. Were joined by david gi with night frank. David, thank you so much for joining us today. Dwl thank you. I want to start by asking you about 12 peaks and that property. More than 100 million. Is there a buyer out there that will spend that kind of money . There was a transaction recently on the most expensive one. So theres a neighboring house had been sold. So there is buyout coming out to looking out, you know, to the property the. So were seeing hong kong property prices continue to sit at record levels. Yes. How long is this trend going to last . Well, the fundamental problem is apply with demand. The government has come down very hard with several looking for a slap on the transactions. But that measure is only able to contain, making transactions fairley noble. The price is going to be high for a certain amount of time. Then supply problems can be solved. Now, you know, the government cramping measures has been in place for about two years now. And the property buyers. So are these measures even working . Well, it will only work in the long run coupled with the supply so that, you know, measurements. But now we can see the Government Intervention in the market, its not necessarily efficient. This has improved across markets. What is the biggest risk to the market now . Well, at the moment, people have money. The morning would be a problem. So were going to be watching, of course, yellen and her meeting at jackson hole later today to see if she gives any indication. Thank you so much, david. Were going to have to leave it there. David gi from night frank, louis louisa, back to you. Thank you very much forever that. Now, the u. S. Dollar remains slightly lower ahead of Janet Yellens speech today. Many are protecting her to stick to her dovish sense. And rate strategy at citi. So first of all with the dollar, were seeing the recent dollar value losing steam ahead of the feds speech. What do you anticipate coming out of jackson hole and use we see reaction in the dollar . The main theme in jackson hole is the labor market, a theme extremely dear. Shes been extremely consistent in giving her view on job markets. Why . I dont think shes going to change now. Its not going to be a for a massive shift of sa expense on the level were seeing. So i think shes going to be consistent with the reviews. On the front of the u. S. Curve and the dollar after the minutes, showing that the level might be a little bit higher than what we expected. Over the past three to four weeks, we had a nice surge in the dollar. So its broad. Its not only a euro dollar move. Emerging markets, especially in the effects by that probably suggests that em currencies will continue to trade on the weaker side, not expecting a message with but we are probably heading towards a longer environment here of stronger dollar. Are there any currencies that stand out, though . Whatever emerging market currencies . Yeah. Its looking into different ends. We believe that, of course, we could all go back to the same environment as 2013 when we were looking into the fragile five, the vulnerable, the financing gap economies. But i do believe that this time around, as we come closer to the normalization, the big move might not be in the long end of u. S. Curb, might be in the front end of u. S. Curve and that hit right in the head of the low yielding currencies. They are somehow very correlated to the euro. Are they correlated to whats taking place in the home market on politics or have we disengaged a bit from politics . Absolutely not. Its complexity here. And sometimes you can make the trading currency on that currency a lot more toxic. But one of the moves we have in turkey now, we believe that politics and probably agree with me now at this point, that the trading and assets, given the potential for some deterioration in political governments. One thing could lead to a lot more stability. I think its well received. Not a shocking appointment, at all. Political migration is the cabinet. And in terms of central bank leadership, thats what we should be focusing on now. I give you my pocket money for this week. Where would you invest it . Im buying dollars, hungarian dollars despite the high negative carry and the ruble is straightforward yet despite the mean stocks will take place next week. Thank you for being here. Still to come here on the show, fears that the fed could turn hawkish on rates sends investors flying out of gold. More on where the precious metal could be headed. More strategy and analysis. Find us on twitter and join the conversation louisabojesen. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com welcome back, everybody, investors sitting on the sidelines ahead of Janet Yellens speech at jackson hole. Plus, Philadelphia Fed president Charles Plosser telling cnbc that the central bank needs to move soon as easy money is increasing risks. I would prefer us to begin raising rates sooner and raising them more gradually. But the longer we wait, the more risk i see it as us having to raise rates quickly in response to a stronger economy, perhaps more inflation. Chuck hagel is saying that the pentagon may be forced to review its budget to fund the fight against isis, warning that the Islamic State could be more dress than al qaeda. And on the move, russia is saying an aid convoy is making its way towards a ukrainian city as Angela Merkel is preparing to meet with Victor Poroshenko in a clear sign of support for kiev. Welcome back, everybody. If youre just joining us, glad that youre with us. Its friday, the end of the week. We have a lot going on in the sense of jackson hole. Janet yellen speaking. Other than that, not really a whole lot. The data out earlier this week, looking at the markets, were called pretty flat and were pretty flat right now. More negative here within the last half an hour. The govp ya the german tenyear is now sitting down 0. 98 . So the other thing thats happening is investors have been moving out of gold as theyre awaiting guidance from the fed chair at the jackson hole symposium. The pressure metal closing down for the fifth day in a row, making it the lowest price in two months yesterday. This as the debate continues on whether the market and the economy both are Strong Enough to warrant a rate hike. San francisco fed president John Williams is saying that he thinks the current consensus in a move in july of 2015 is about right. I think theyre thinking around summer of 2015 for the first rate hike is a reasonable guess, given where we think the economy is going. And, you know, how much progress were making towards our goals. But, again, it rm depends on the data. If the data gets stronger, then it could be earlier. If the data disappoints, it could be late. John is joining us. Welcome. Morning. We need to talk about gold. I look at the dollar and i look at the dollar heading north and i listen to people telling me that the dollar will tb to heads north. And i think, oh, that means the gold has to head south. Its really interesting. And yes, gold is heading south for now. Theyve had a good year, to be honest. Net purchases, indian investors