that is a similar message to christine lagarde?> indeed when it comes to the timing of the start of the easing cycling. both could start around the same time in the summer. not much of a difference there. the point is how many rate cuts would the ecb and the fed deliver. in our view, the ecb would deliver three to four cuts and the fed two to three. as a result, the persistence of inflation pressure from here. in the case of eurozone, the growth outlook is in most of last year and it is worth highlighting with inflation and 80% is driven by global commodities prices. prices are tight everywhere. the pressure is lower than in the u.s. that means the inflation is also less sticky in the eurozone than the u.s. >> madame lagarde saying they can't change their views on one data point. is the one data point that is soso significant as well to see where inflation would go. how much importance do we put to that wage data? is it part of the sum? >> ultimately, it should be. it is a complex decision. a lot of moving parts. i think i mentione

right here in europe, ecb president christine lagarde signals the bank may cut rates in june. it warns tiempo -- geopolitical risks should not be ignored. i want to quick check on the markets. we've got the geopolitical situation coming up of -- off of president biden in his state of the union address overnight. what that means for futures is a little bit of positivity right here in europe. euro stoxx 50 future desire. ftse 100 higher. let's cross the atlantic where you are not seeing the same optimism. futures in the u.s. unchanged. 51 65 on the contracts. nasdaq 100 futures are down 1/10 of 1%. how much is a global story of not wanting the exposure to the house. how much is cashing out ahead of the long weekend with technicals plumbing at -- limiting at play. chairman powell did speak and testimony. you have the ecb dates you in the after facts. the bond market absolutely matters. they have been fairly sanguine as it looks to preclude how to navigate the story. tenure yield at 407. again, the fact that it stays sustainably above 4%, even a three basis move is crucial. euro-d

it was big news, but now we've got christine lagarde delivering a speech live today. christine lagarde is saying we need to be further along the disinflationary path, the compression of profit margins has allowed wamgs to catch up without further accelerating inflation. the average wage growth for the existing year fell from 4.4% at the time of the january governing council meeting and says we expect that to pick up by fully utilizing productivity growth. we cannot wait until we have all the relevant information. i think that is key. christine lagarde just hitting the podium now and about to speak to those on the ground. let's listen in. >> in front of this respectable audience, a very large number of men in this room, if i may say so. sorry, couldn't help it. but i'm delighted to be back here in front of you for this 24th conference of the ecb and its watches in an environment that i will not bother to describe because you've done that beautifully professor villand. all i will say is we're not less of a threat from a geopolitical view, far from it. if we have settled

christine lagarde will make one of her most important speeches of the air. the biden administration is considering sanctioning huawei's chinese chip network as part of a campaign to protect u.s. securities. we are checking in on european chipmakers. checking on the markets right now. fresh records posted by the s&p yesterday. it was the tech and ai story that propelled gains with nvidia firmly in focus. cap tech names rally in the session. a little bit of a breather ahead of the fed decision -- for decision. now futures lower by about 23 points. does he continue to reiterate? of course, what happens with the projections? when it comes to the ecb, that crucial speech from the head of the ecb. here in the u.k. at the inflation data as well. we will break that story down for you shortly. european futures up by 310 of 8%. japanese markets are closed. 151 on the japanese yen. further weakness as markets readjust to this view and no outline in terms of the hikes coming through for the boj. 15550. the pound in focus on the back. and as we pulled up to the inflation

christine lagarde coming later, and the governor of the boj.j meeting this month might not be boring. lisa: there is a 70% chance people are expecting them to hike rates to zero. it would be the first move of that nature back to 2007. it raises this question of whether that will turbocharge or put a damper on the rally. does this give people more conviction this is a new investment pieces and it is no longer the forgotten decade? jonathan: giving them confidence. we have broken through 150. we are 140 782. -- 147.82. the data has been fantastic yet the message remains the same. if your message stays the same in the world around you changes than the meeting has shifted. the meaning of those comments as more dovish than a month ago. lisa: when i listened to those comments the meaning this is not a fed chair worried about financial conditions easing. this is not a fed chair concerned about the fact we are seeing soft -- strong growth in certain pockets. this is a fed chair that wants to cut rates and is looking for an opening to justify it. jonath

followed by christine lagarde's press conference. stay with us. this is bloomberg. ♪ tom: welcome back to "bloomberg daybreak: europe." the u.s. military says at least three people have been killed in a missile strike on a commercial strip. they are the first killed since militants started attacking commercial shipping and one of the world's busiest sea lanes. u.s. officials condemned the attack. >> they continue to launch reckless attacks with no regard for civilians transiting to the red sea, and now they have unfortunately and tragically killed innocent civilians, and so the divided states will continue to hold the houthis accountable for their attacks. tom: let's get more from dana who stands by with the details. what more do we know about this attack in terms of the details at this point? >> a serious event, we saw three people killed and four others injured. their injuries are critical. at the philippines sent out a statement today saying two of its nationals were killed included in the three and two others were also wounded as a result of a

haidi: christine lagarde also throwing a bone.e have a better idea of what the end trajectory will be? ken: very similar --enda: very similar language from the ecb making the point she is not confident they are fully there yet. s she wants to see data signaling out april. then making the point that may be around summertime, maybe june may the ecb might be in a space to bring down rates. it is important to recognize that interest rates are fairly restrictive in both western europe and the u.s.. even if they start cutting rates, the next part of the debate will become the pace and depth of the cuts before small businesses, households, etc., start to feel real relief on the ground. nonetheless, the message from both authorities today is that inflation is at least heading broadly in the right direction. they just need a few more report cards to take that off. then at the ecb will be cutting sometime in december and perhaps the fed in and around that time as well. haidi: enda curran they're looking at the fed and ecb. let's get analysi

lagarde have been doing, but i think there was a bit of a shift in tone today and in some of his recentlst he said the bank of england was not ready to cut rates yet, he did say there was progress made in inflation and the fact those two voters voted to keep interest rates on hold, even the most hawkish members of the bank of england and acknowledging that there has been some gains in the war against inflation so the bank of england really is just the latest in a line of central banks to say we've got inflation but we are winning the war. it got inflation but we are winning the war. , ., ., war. it is worth underlining that whatever the _ war. it is worth underlining that whatever the bank _ war. it is worth underlining that whatever the bank of _ war. it is worth underlining that whatever the bank of england l war. it is worth underlining that i whatever the bank of england may war. it is worth underlining that - whatever the bank of england may do today, it will take quite a while for us to all feel it in our pockets so they have gone about this calculated gamble, act now based on wha

the head of the european central bank, christine lagarde, said: “ the eurozone economy remains weak aspending and save money. the domestic market is falling and exports are declining. european goods are not being bought. against this negative background, the european central bank lowered its forecast for eurozone gdp growth in the twenty-fourth year by 0.2. the complexity of the eurozone is hitting family companies at the core of the german economy, as bloomberg writes, in germany there is a reduction in the number of such legal entities, they could not withstand the pandemic, lockdowns and the energy crisis against the backdrop of sanctions against belarus and russia, the notorious german punctuality was also under attack, deterioration economy in germany led to massive delays of german trains, in the fall... the worst schedule delays in 8 years were recorded; almost every second train was late. interestingly, despite mass strikes and disruptions in traffic, the top manager of the german railway operator dolci bahn paid themselves the most record bonuses of 5 million euros for their a

lagarde.g up at the times listed on your screen. 9:50 pm if you are in hong kong. that's it from bloomberg markets asia. this is bloomberg. ♪ i think he's having a midlife crisis i'm not. you got us t-mobile home internet lite. after a week of streaming they knocked us down... ...to dial up speeds. like from the 90s. great times. all i can do say is that my life is pre-- i like watching the puddles gather rain. -hey, your mom and i procreated to that song. oh, ew! i think you've said enough. why don't we just switch to xfinity like everyone else? then you would know what year it was. i know what year it is.

don't miss the ecb decision and the conference from the governor christine lagarde at 2:00 p.m.et. i'm arabile gumede. thank you for joining us on "street signs." "worldwide exchange" is up next. do you have a life insurance policy you no longer need? now you can sell your policy - even a term policy - for an immediate cash payment. we thought we had planned carefully for our retirement. but we quickly realized we needed a way to supplement our income. if you have $100,000 or more of life insurance, you may qualify to sell your policy. don't cancel or let your policy lapse without finding out what it's worth. visit coventrydirect.com to find out if your policy qualifies. or call the number on your screen. coventry direct, redefining insurance. hi, i'm ben and i've lost 60 pounds on golo. (guitar music) i've struggled with weight my whole life. i'm sure you're like me and you've tried diet after diet. if you want to stop the insanity, try golo. what is cirkul? cirkul is the fuel you need to take flight. cirkul is the energy that gets you to the next level. cirkul is what you hope

christine lagarde reiterates the central banks decisions will have to remain data-dependent. >> we believeour policy rate is likely at its peak for this tightening cycle. and that if the economy evolves broadly as expected, it will likely be appropriate to begin dialing pack policy restraint at some point this year. the economic outlook is uncertain however and we remain highly attentive to inflation risks. >> this implies that even after the first rate cut, we cannot pray commit to a particular rate path. however tempting that is, however much some of you would like to see it. if we are honest to our methodology, and if we have discipline in adhering to these principles, we cannot. haslinda: let's bring in mark cranfield. there we have it. they are not synchronized anymore. market: traders don't have this up -- same discipline of supreme look -- lagarde. they want to do all the things that they were doing at the beginning of the year when people thought the fed would be cutting rates indefinitely. we had a hiccup between but we are back on track now. the surprise clearly was that going in

dovish tones seemingly being interpreted from jay powell as we see christine lagarde hint to future cuts. the dollar is weaker against most fx payers today. and looking at what's happening in terms of the japanese rally versus the dollar, we have seen the yen up amid signals the boj might move to increase rates, up .8% versus the dollar. a look at what's happening in the world of a brisk asset of choice on this show, bitcoin --a risk asset of choice on this show, bitcoin. it is pushing to the upside. let's dive into some of the individual names. up 3.4% on the benchmark that measures these chipmakers, and a record high for the philadelphia semiconductor index. palantir is where we go towards the second half of the show. of 3% as they have their ai day. lower for apple as we try to decipher -- digest what's happening with e.u. the digital markets act is coming into force today hitting firms with a list of dos and don'ts. the aim to create a more competitive online field imposing changes on these six so-called gatekeepers. apple, amazon, google, meta, microsoft, bytedance. regulators are w

as we focus on central banks, we heard earlier from the ecb president christine lagarde. she outlined what she needs to see to adjust the bank's right path. >> the essential question is what do we need to see? what do they need to see is the question i occasionally see. what do we need to see to become sufficiently confident to start dialing back our restrictive policy stance? put simply, we need to move further along the disinflationary path. ♪ katie: this is bloomberg markets. boeing is forecasting a massive cash drain for the first quarter. the aircraft manufacturing more regulatory scrutiny and slower output of its 737 max following the january incident where a piece of fuselage known as a door plug blew out in midair. joining us with more from princeton, new jersey is a senior aerospace defense and airline analyst for bloomberg intelligence. you take a look at boeing's stock today. it seems like bad news but the stock is up 2.5%. walk us through this reaction relative to what we heard from this morning. >> i think a lot of that reaction is the cfo said the first quar

is that the data that someone like christine lagarde is looking for to say we have to go for this?> i think so. i think madame lagarde and the ecb has been vocal about rate cuts coming. inflation is now sub 2 in the zone. you have low inflation. that has come down. the opportunity in the window for them to start cutting. >> she was. the thing she said was remain elevated this year. incoming data. our decisions are data dependent. responding to new thinformations it comes in. i guess i'm wondering what information she is looking for here. on the inflation side or recession side soreor both? >> both. >> i hear what you are saying. you are clearly right. it is like a rubbish way to do your banking. >> they are the big boy on the playground. >> big girls here. >> people don't tend to follow them. >> i hear you. >> the june meeting before the boe is when we start to get the rate cuts coming through. s>> hang on. is it ecb? >> dynamic. >> the central bank has done what it was to do. it was boring. when it is exciting and you have the massive moves -- >> we went from 5 last year to 3. the

christine lagarde cold june summer, so let's just say pretty much all signs are pointing to this springhatever you like to call it, june cut. jonathan: when this winter and summer start, and spring end? >> stephen stanley of santander right on track. while inflation is headed in the right direction, it may not call to the satisfaction until later in the year. market expectations for the timing and magnitude of that cuts are too aggressive. i expect rates reduced by 50 basis points beginning in the fourth quarter after the election. good morning. do you think the federal reserve dot plot might move your way next week, or is that too soon? >> i think it's a little too soon. you listen carefully to the fed officials and they don't seem to have changed their fundamentally since december. i think they are probably believed that the market has come back in closer alignment with where they are. jonathan: the fed is in a quiet period right now so we can't get the reaction till next week. just tease out what is going to go into pce and whether they can take any comfort whatsoever from what happe

traders are boosting their bets for a june rate cut as president christine lagarde spoke. pres. lagarde: inflation is continuing this downward trend and continuing to decline to our target as labor costs marked -- moderate and supply bottlenecks and the reopening of the economy after the pandemic faded. sonali: now joining us for more is a la sondra. when you look at the pressures and the expectation for a june cut, how much risk is baked in when we hear from the ecb president? >> we heard from lagarde that basically inflation is doing well meaning it is slowing and they think that by june they will have enough information. a little bit of information in april and the main data that we need to ensure that inflation is slowing and wages are going down. it is not just part of the prices going down in june. the market was predicting a lengthy june cut and it is likely to be a june cut. now, how much for how long and the other question is what is the fed going to do. is the ecb going to cut before the fed. that is the other question that looking forward we will be talking about. son

. >> the ecb is likely to cut rates in june according to president christine lagarde.e said they are not able to commit to a future path. speaking in frankfurt this morning, she said our decisions will have to remain data dependent and meeting by meeting , responding to new information as it comes in. samsung shares posted their biggest gain in more than six months after a backing by nvidia. the ceo reportedly said he plans to use samsung as a supplier of high been with memory chips. nvidia unveiled its next generation of ai hardware called blackwell in a conference in california earlier this week. intel is in line to receive nearly $20 billion in grants and loans from the u.s. to build semiconductor plants. this marks the largest award yet ever by the white house to bring chips manufacturing back to america. the word comes amid an ambitious turnaround plan for the company under their ceo. that's your bloomberg brief. jonathan: thank you. intel up by a little more than 3% this morning. up next, decision day for the fed -- >> grates at some boy should -- at some point s

christine lagarde just speaking in the last hour sounding similar to powell in that she's patient and she wants to see more data before considering cutting interests. here's the money line she said moments ago. >> we are making good progress towards our inflation target, ande and we are more confident as a result. but we are not sufficiently confident, and we clearly need more evidence, more data, and we know that this data will come in the next few months. we will know a little more in april, but we will know a lot more in june. >> she emphasized june there as opposed to april potentially in terms of knowing enough to be more sufficiently confident that inflation is coming back down to target. the market got excited because when the ecb came out they lowered their inflation target for this year and the growth target for this year and reduced the growth target for a fourth quarter in a row and now expect the economy in the eurozone to rise 0.6%. that together could indicate that they were moving closer to cuts. market got excited about pricing april, but her hint there was more in lin

christine lagarde widely expected to keep rates on hold. on friday, payrolls friday.ubini, great to stay with us so long. i want your view on the torsten slok call and apollo. the no rate cut call. how realistic do you think that is is. no cuts in 2024? nouriel: no cuts may not be realistic. the possibility the fed will cut rates later in less than three times is a meaningful possibility. growth is well above potential. the atlanta fed forecast for first quarter is 3%. the economy might keep growing. that may imply inflation will remain sticky. that is the biggest potential market surprise. last year when people had to revise their expectation about fed cuts you had a 10% correction. this year, in spite of the fit signaling we will not cut, the market has gone up. suppose inflation remain sticky. then people say it will not be three, it will be zero. on that, in spite of stronger growth, the impact of higher rates for longer will be negative. it will be a correction. lisa: i am trying to wrap my head around and optimistic nouriel roubini. this is as optimistic as i've