Bernanke's Stimulus Plan: Bottom Line (07/17)

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July 17 (Bloomberg) -- On today's "Bottom Line," Mark Crumpton provides insight at the trading day's critical hour, with careful analysis of big events for investors. (Source: Bloomberg)

I am mark crumpton, this is "bottom line." tonight, ben bernanke says the fed stimulus plan are not on a timetable.

Then, intel faces more sales pressure as consumers move away from pcs.

We will show you the cutting edge technology that keeps your mobile devices charged up cord free.

To our viewers here in the united states and those joining us from around the world, welcome.

We have full coverage of the stocks and stories making headlines tonight.

Su keenan tracks after the bell earnings.

Olivia stearns has details on a finance officer in china.

Phil mattingly has the latest on edward snowden's asylum request.

First, ben bernanke says central banks bond buying program is not on a preset course and will be determined by the economy.

His latest testimony may lower expectations.

The fed is about to start scaling back monthly purchases.

Peter cook reports.

In what could have been his final semiannual testimony, ben bernanke struck a more dovish tone, sending a message the fed has not yet decided.

He reiterated the fed is still prepared to start tapering a bond buying program by the end of the year only if the economic forecast holds up.

We will respond to the data.

If the data are stronger than we expect, we will move more quickly.

At the same time, maintaining the accommodation through rate policy.

If the data are less strong, if they do not meet the kinds of expectations we have about where the economy is going, we would delay that process or increased purchases for a time.

He also stressed tapering does not mean the fed is starting to type monetary policy.

He was pushed by republicans to defend the fed's easy money policies.

They said the actions have bolstered the economy.

The key is making sure the markets understand our plan, and that we have done enough that the economy has grown on its own.

Then, the markets will be fine.

The fed painted a rosier picture of the u.s. economy.

Economic activity continued to increase at a moderate pace area most districts noted overall consumer spending increased and residential and real estate construction increased at a strong pace.

A busy day for the federal reserve.

They get to do it all over again thursday in front of the central bank committee.

Back to you.

Coming up, the chief financial economist at tokyo mitsubishi will discuss chairman yankees congressional testimony during an extended interview coming up in 10 minutes.

Stay with bloomberg tomorrow.

Jack lew will sit down for an exclusive interview with peter cook and we will have the interview at 4:00 p.m. eastern time.

You will see the entire interview this sunday in washington and right here on bloomberg television.

We are closing in on one month since edward snowden arrived in a moscow airport and a diplomatic dispute in russia over his status continues.

He told reporters his country will not behave like many other countries are behaving and he reiterated russia's independence in foreign policy.

Phil joins us from washington.

Good evening.

Good evening.

U.s. officials continue to look for avenues to clear a path.

This is something that would lead to his return in the u.s.. to 30 years in prison.

This comes at a particularly difficult time, two months before vladimir putin and brock obama are scheduled to hold summit in moscow.

It has drifted into the world's four.

Lindsey graham said multiple times the u.s. should consider a boycott of the 2015 olympics in russia if snowden is not returned to the united states.

The fallout has led to more problems.

Lawmakers are starting to join together to question the scope.

What are their concerns?

That is right.

Today, we have the latest on a series disclosed by snowden.

Known as section 215 for its place in the u.s. patriot act, the collection of procedures might be in danger of being taken away from the nsa if they are not scaled back.

That is according to james, a senior republican on the house judiciary committee.

As one who has fought patriot act fights, section 215 expires at the end of 2015. unless you realize you have got it problem, that is not going to be renewed.

Jim was one of the authors of the patriot act so his words carry a lot of weight.

Among law enforcement officials i have been talking to, they tell me they are becoming increasingly wary and concerned.

Phil mattingly joining us from washington.

Thank you very much.

China is stepping up to fight against corruption in the healthcare industry.

Food and drug regulators are promising to crack down on illegal activities after a scandal made national headlines.

Olivia sterns joins us with more.

What are chinese police saying happened?

This has become a huge story.

Essentially, chinese police allege they have been funneling money in order to boost sales.

Economic crimes worth nearly half of billion dollars.

They propose a travel ban.

Police say these travel agencies receive rides and some executives receive sexual flight -- favors.

In total, they say 700 companies are involved.

One executive gave a statement on national television where he eggs wayne the process of falsifying these.

These kickbacks seem to have them -- been quite panic -- a successful strategy.

It is about four times faster than the average emerging market.

That's what has and the response from the government?

What are they planning to do at this point?

The fda in china has said it will conduct a six-month probe and they are targeting -- targeting fake drugs and forged receipts, which are at the center of the case.

The goal is to rein in production, driving up the price of drugs.

Take a listen to a spokes person reacting to the scandal?

China stands firmly against commercial prizes.

Enterprises shall be punished by chinese laws if they violate them.

This is not just about gs k. at least four other multinational drugmakers are under investigation in china.

We know that according to a lawyer, approached by some of these companies, specializing in this.

How do investors seem to be taking this?

Pretty surprising to see investors are basically shrugging it off and the stock is up today.

They basically held steady despite the headlines.

They are cooperating with chinese authorities and reviewing transactions with third party agencies.

It said it was deeply concerned and disappointed by the allegations.

One reason analyst tell me shares have held steadily is because it is likely to be in the order of tens of millions of dollars.

That would really be just a drop in the bucket for them.

Thanks.

Coming up, more on our top story, ben bernanke goes to capitol hill and discusses the fed's timetable for bonds purchases.

We will get reaction from the bank of tokyo mitsubishi, when we continue in a moment.

? welcome back.

Su keenan has the details.

Two powerful drivers for the stock today, the fed and earnings combined with the big companies and stocks moved higher.

Yahoo rose 10% on the heels of yesterday's earnings.

Ibm intel and ebay were among the big names making big moves.

Let's break it down for you.

It also forecast its full-year outlook after buying back shares.

The online options site sales outlook for the quarter missed.

Intel was down one percent ahead of reports and down another dollar after.

It said sales may miss estimates due to the pc slump.

A lot of customers can.

Posting record profits.

The stock took a hit earlier can -- on concern about a proposal that might take a cut.

Company shares might tumble.

What is happening?

They operate cell phone antennas.

The company was rated a strong sell.

It closed down one percent.

Saying the company is engaged in a value destroying investment range that will not shares down 40%. we have gone in the field and rolled up our sleeves and figured out what is going on in these emerging markets.

The reality is different from what the company tells you.

Saying the company overvalued acquisitions there he warned of potential fraud.

No comment from american tower.

A lot of focus here.

Su keenan joining us tonight.

Thank you.

Ben bernanke today came the first two days.

Central bank's asset purchases are by no means on a preset course.

Let's get analysis i am joined in studio by the managing director and chief financial advisor.

Glad to be here.

Which ben bernanke showed up today?

The preset course was interesting.

Last time before congress in in may, he said maybe in the next few meetings, tapering might begin.

The next few meetings from a would-be september.

We all thought maybe september would be the first.

That was not in the testimony today.

The chairman outlined the possible timeline for reduction in them -- and the monthly pace of bond purchases.

He told lawmakers markets are beginning to understand our message.

Does that imply the volatility was not because he made the comments but because the markets were confused by them?

The proof will be in the pudding.

They are 2.49 right now.

I do not know if we miss understood or not.

Sometimes, they like to think they let air out of the bubble by letting yields come out now.

If they show their hand , there would be a more violent reaction or it i do not know.

They seem to have it both ways.

Maybe that is part of the reason they are more dovish.

Maybe it was a break on the recovery.

Has the fed done enough to ensure investors rates will stay low after the bond buying and?

I took a look at his comments and he really emphasized how is .5% is a threshold.

I want him to do it the minute he hits.

It sounds like, he will not raise rates if he has his way unless inflation goes up to 2.5%. it is not on the horizon.

It is a long way away.

It is possible a couple years from now, growth except and there will be greater demand for commodities.

At the moment, it is pretty low.

As he talked about the dangers posed by the inflation rate.

What are the risks and what harm does it pose to the overall economy?

There are four or five talks.

He is concerned inflation is too low.

Good grief.

They will never raise rates again or start the tapering process.

I think it is not a good thing to warn people inflation is too low, frankly.

All right.

A quick break.

Stay with us.

? let's consider our cap -- continue our conversation.

Mr.

bernanke also discussed the job market today and we were talking about the unemployment target the fed is looking for.

They wanted to get there but the chairman said the jobless rate is not the only measure of labor market health.

It's .5% , is that set in stone?

It does not sound like it.

He had come out there before , saying it is not 6.5%, but is under employment and people who want full-time work due to obamacare.

They are not being hired permanently, who knows?

There are a number of people out of work for six months.

That is terrible.

, i think -- i think there is a lot of, we are giving people emergency on in women that it.

We have never done that.

Would they say that he could delivery job?

I find that hard right now.

I think the unemployment rate could be overstated.

It does not feel like there is that much economic stress in the economy.

Number one is always right.

The fed chairman is always right.

He is leading people down the path to achieving the rate lower and longer.

In a way, i have seen their estimates about how closely the fed fund rate could go up.

It could be one percent in early 2017. that is basically zero rates for nine rates.

They showed modest to moderate pace of growth in weeks -- recent weeks.

It was led by industries ranging from house to manufacturing.

What did you take away from the report?

That is the other fly in the ornament -- ointment.

When they started raising rates, they had three percent gdp.

Now this quarter, the camcorder.

I am keeping my fingers crossed and there is a chance it would go in the second quarter.

It will not be one and one half percent.

Is not fast enough.

If it were growing faster, unemployment would bein down quicker.

It was positive overall.

Growth was still leak.

What does that mean for the second half of the year?

We will take a look.

Some elements are good out there.

Housing is better.

Home prices are up tremendously around the country and car sales went through the roof.

It does not feel like the economy is 1.5%. it feels normal.

There is an idea potential growth cannot grow going forward.

Do not forget the baby boom generation the hiring -- retiring.

Thank you for coming on.

Chairman been a key drawing a distinction between china and japan erie he's as it is in america's interest see it strengthen.

The top stories in asia when "bottom line" continues in a moment.

Welcome back.

Thank you for staying with us.

Let's check where the markets finished today's session as we hit the bottom of the hour this wednesday.

The markets finished higher today.

The s&p 500 was up a quarter of one percent.

The dow jones industrial average finishing up 15,470. the nasdaq composite index was up over one third of one percent.

Let's get a check on the top stories we are following for you.

The central bank stimulus measures are not on a preset course.

Bond buying could be reduced or expanded depending on economic positions.

The fed is keeping a close watch on inflation and unemployment.

Inside, lawmakers approve the major job cuts and other austerity measures.

The vote was seen as the first major test.

Nelson mandela is making trump -- dramatic progress and may be going home from the hospital.

That is coming from his daughter on the eve of his 95th birthday.

Mandela was watching tv with headphones and gave the family a huge smile.

That is a look at the top stories in the news at this hour.

Thank you.

Join us tomorrow night as we mark nelson mandela's 95th birthday.

I will be speaking with the california democratic congresswoman maxine tomorrow, right here.

It is time now for the commodities report.

Good evening.

Good evening.

Gold and copper falling the most in more than a week after the dollar gained.

Huge gyrations in oil.

Let's start with the recent rebounding gold, after falling to a 34 month in june is a collective rally.

Negative investor sentiment means medium term gold remains on a their attack.

Platinum.

The increase jim and -- demand in china and dueling demand is robust.

Down three percent, making it the biggest decline or of the day.

The biggest gainer was lumber, up three percent.

Oil, the third weekly decline, the drop of 7 million barrels.

That brings the total three-week dropped to 27 million barrels.

The biggest drop we have seen for this timeframe since the 80's. we have got one of the hottest weather times on records this week.

What is that doing for futures?

It reacts so much to situations like that.

It will be in the spotlight tomorrow, for a couple reasons.

One of which is the heat wave.

The forecast for a break from these temperatures in the coming days, hopefully by the weekend, is what is making a difference.

It was key for the futures in that there have not been many days over 100 degrees, even though it feels that way.

It takes extreme temperatures to go down on supplies.

A three-day rally today.

The latest supply data is due out tomorrow morning and is supposed to show an expansion rather than decline.

Probably 65 billion cubic feet last week.

That could put more pressure on prices.

Thank you.

Let's take a look now at the top stories in asia in a new report.

The international monetary fund says the risks are increasing that china's economic growth this year will fall short of the forecast.

David inglis joins us now from hong kong with the details.

Good evening.

That is right.

The latest report from the imf essentially outlining the risks chinese growth could actually come in short of the imf forecast of 7.8%. the risk has increased since early june.

Two-putt context into this, we are coming off a few weeks of weak data.

The growing concern from the business community in china about what beijing will do.

It is hard to see from a policy perspective what china's leaders can do.

We know how they are trying to minimize the role of states in gdp terms, investment from the government.

They are trying to rein in excess debt and lending, which have boosted growth in the past four years.

The prime minister ruling out any sort of large, fiscal stimulus so far this year.

What is being said in china, if you take a look at what businessmen are saying, the same tone.

The richest man in china, not your everyday businessman, made a very good point.

Businesses are not willing to take on a lot of loans.

It is harder to turn a profit.

He expects growth to continue to slow.

He talked about growth reform.

It will take time to bear fruit.

It really echoes what the chinese premier said.

China must stick with the reform plan, and not react to short- term fluctuations in data, regardless how tempting it might be.

At wednesday's hearing, ben bernanke said it is in america's interest to see japan strengthen.

How are japanese markets reacting?

I think we lost david ingles from hong kong.

Thank you.

We will try to get back in touch with you tomorrow.

Coming up, is the housing market still hurting?

The latest report.

We will have those details.

? welcome back.

A possible break in the student loan debate.

The associated press is reporting there is a potential senate deal on student loans and the agreement would offer lower rates through the 2015 school year.

After 2015, the rates would soar.

Graduate student rates could go to 9.5%. the commerce department reports housing starts in the united states unexpectedly fell in june to the lowest level in almost a year.

Realtor.com's national housing trend report shows a healthy pace of recovery.

I am joined now from san francisco.

Welcome to bottom line.

Thank you for coming on tonight.

Great to be here.

Why the divergence between your report and the one from the commerce department?

Are we seeing a pause in the industry's progress?

We really are seeing an increase in what has come on in the last couple of months, in the entire 2013 years.

The market is continuing to increase.

Based on what we saw last year at this time.

We are down by over seven percent.

We are seeing improvement this spring especially.

Our market has continued beyond.

I wanted to ask you something about commerce because their report says the decline in starts was led by a slump in multifamily projects.

What is going on there?

Because of what was going on in the economy.

We were not seeing a lot of multiunit properties being built.

Investors were holding off in the marketplace.

Now, they are jumping back in the market and buying up the land available to build large developments again.

Job opportunities are improving.

Are you seeing this reflected in the number of potential buyers?

We are.

We are seeing a lot of consumer confidence out there.

I know you came out with a report through bloomberg yesterday showing that interest rates have gone up and we have seen then go up in the past month one percent.

That is a big increase month over month.

With that said, we are seeing a lot of consumer confidence and employment rates going up.

That will affect the amount of buyers out in the marketplace.

A report uses california as a key gauge of the housing market.

Talk to us about the key markets in the state.

How are they doing?

We have seen a lot of improvement.

We have seen sales volume increased and we have seen a decrease in the inventory.

Part of los angeles, especially , have really seen a decrease in their inventory.

There are more people jumping back in the market.

Speaking of people jumping back and, in the past, a lot of that fueled by young folks in silicon valley.

Are you seeing that, as well?

Is that still jumping back in the market.

Speaking of people jumping back and, in the past, a lot of that fueled by young folks in silicon valley.

Are you seeing that, as well?

Is that still the case?

We are seeing multiple offers, absolutely, throughout the a area.

That is going to the east bay and down the peninsula and a lot of that is fueled by the technology industry, as well as social media, and even the energy sector.

Where did realtor.com see the most median price increases?

It happened really, in reno , nevada.

They are seeing a lot of increased in their inventory price.

That is the top of the list.

What about decreases?

Any areas still seeing problems?

There are smaller communities that have seen decreases.

We are not seeing huge decreases that we have reported much on it.

Overall, we are seeing improvement all around.

It is not only in the state of california, but it is starting to progress into parts of utah, chicago, and there is a lot of activity going on surrounding the realtor market.

We are past the traditional homebuying season.

Sellers continue to list homes.

What does that tell you about the pace of recovery in the housing market.

That is a true indicator there is consumer confidence out there.

Sellers really believe the home is at a value they are willing to sell it for.

Typically, the psychic will -- cycle we see ends around the mid june time frame.

We are still going strong into the month of july.

It is great news for the realty industry.

Ben bernanke was talking about real estate today.

How does the fed action, what policy makers are doing or might do forward, you hear all this conversation about what interest rates might have an mortgage rates, how does that factor in?

We are seeing, now that rates have started to go down, there is observation going on saying they went up.

We are seeing they went down again.

There is a moving factor with employment rates going up.

Will we see in -- as much money available?

Down again.

There is a moving factor with employment rates going up.

Will we see in -- as much money available?

On the real estate -- real estate side, we are confident about the buyers out there and the exchange to real estate on the buying and selling side.

Joining us from san francisco tonight, thank you for your time.

A pleasure to have you on.

Absolutely.

My pleasure.

When we come back, we have all been there before.

You are out and about and your cell phone dies.

There is not a charger insight.

What if you could recharge your phone at a station just like you fill up your car with gas?

We will take you to madison square garden to check out just how a company powers up.

? ? no more wires, chargers , or that pesky issue of a dead phone.

My cell phone died.

That is the fantasy powermad is trying to make a reality with a little help.

How does it work?

When a device is placed on a power mac, it takes electricity and converts it into a magnetic field.

The phone takes a magnetic field and converts it back to electricity, powering the phone.

It is the same kind of technology use when you power an electric toothbrush.

The goal is to create an entirely new paradigm when it comes to how consumers choose up.

Years ago, you would expect to connect the cable to download the image.

Today, consumers expect to buy with wi-fi.

They should expect to get power.

At a sporting event, or starbucks, a powermad partner along with mcdonald's. giving them a present in europe , it sounds like a dream come true, except that powermad charging stations are still few and far between.

Can it ever be as ubiquitous as a guest station?

The biggest thing for the industry is awareness.

Wirelessly charged to vices are estimated to grow to 100 million by 2015. devices they are hoping to add to the glowing -- growing list of customers.

Speaking of phones, you can now watch bloomberg tv live on any windows phone.

You can download the latest version of the free bloomberg app at the windows store.

Still ahead, if you are scared of heights, perhaps the latest attraction in austria is not for you.

The sky is the limit.

"hotshot" is next.

? the s&p, dow, and nasdaq all down.

Bloomberg gives you a market check at 26 and 56 after each hour of the trading day.

Welcome back.

This is "bottom-line" on bloomberg television and streaming on your tablet, phone, and bloomberg.com.

Let's get you the bottom line line on what is happening on thursday.

We have a live-in's -- olivia sterns and su keenan.

Let's start in day -- india see.

President obama is going on the defensive over the affordable care act.

According to jay carney, the president will speak about how the new law is holding insurance companies accountable and making health insurance more affordable for consumers.

Over on capitol hill, we will hear once again from ben bernanke.

Tomorrow, he is delivering his semiannual report to congress and that will begin at 10:30 a.m. on the data front, leading indicators for june eared and at 10:00 a.m. and weekly mortgage rates at 10:00 a.m. finally, the south african embassy is honoring nelson mandela tomorrow.

It will be his 95th birthday.

A former south african president remains in the hospital.

His daughter said he is doing remarkably better.

With the -- big questions over who will buy the pc maker could be clear by tomorrow.

Will shareholders vote on the 24 point $4 billion buyout?

Or will it be delayed?

That is the big question.

Still vocal about wanting to replace the ceo.

The company's pr chief has resigned.

Stay tuned.

This text has been automatically generated. It may not be 100% accurate.

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