impacted by hurricane he and. -- ian. it made landfall yesterday and it is still moving across the state today. this could be the deadliest hurricane in florida's history. the numbers are still unclear but we are hearing early reports of what may be substantial loss of life. i've spoken with governors and the mayors and commissioners, i've been on the phone with governors this morning, i spoke with commissioners and mayors and they are worried but everyone of them are telling me what an incredible job is being done to save their cities or towns or counties or reports or bridges, etc. in the face of serious danger, search and rescue operations got in the way for don this morning where people stranded in and who

are in desperate shape. water rescue is critical. coast guard deployed 16 rescue helicopters, six aircraft, and 18 rescue boats and crews. that is just one element of the teams that the governor talked about on what the coast guard was doing this money. these are dangerous missions and i'm grateful for the brave women and men, federal, state, local governments working as one team, risking their lives to save others and we will learn a lot more in the coming hours. we know many families are hurting, many, hurting today. our entire country hurts with you. it has been all the country since so many places. in florida today, it is the epicenter. we are continuing to see deadly rainfall, catastrophic storm surges, roads and homes flooded, millions without power and

thousands hunkered down in schools and community centers wondering what will be left, what will be left when we get to go home, quote unquote home, even if they have a home to go to. some of the folks who've been through this before but that does not make it any easier. that makes and tidy -- makes anxiety lowered my view. america comes together. we will pull together as one team, as one america. first thing this morning, i talked to governor desantis and offered the full federal support. earlier this week i approved the request for the relay far emergency declaration of the direct federal assistance in the state for emergency protective measures to save lives including search-and-rescue and shelter and food. earlier this morning, i approve the governor's most recent request for a major disaster declaration. that means the federal government will cover 100% of

the cost to clear debris and for all the costs the state has to engage in and expand to save lives. the federal government will also cover the dority cost of rebuilding public buildings like schools and fire stations. the folks in florida who have destroyed or damaged homes, if you don't have enough insurance, it means the federal government will provide individual assistance on $37,900 for home repairs and another $37,900 for lost property from automobile to a lost wedding ring. that is what we mean by lost property. i've also spoken with mayors across the staple to republican and democrat and not -- and i have told them the same thing, we are here, whatever you need i indicate them to call me directly at the white house. they know how to do that. we will do everything we can to

provide everything they need. we have dispatched over 1000 personnel and repositioned major federal capacities and capabilities and supplies. that includes millions of liters of water, millions of meals, hundreds of generators. and deployed it dozens of search and rescue teams along with high water vehicles and rescue helicopters to help get survivors to safety. thousands of national guard members have been activated and in my direction, the department of defense is providing search capacity on mobile fronts to supporters of those efforts. i also want to say again to everyone, the danger is real, to state the obvious, please obey all warnings and directions from emergency officials, and while the water is receding, do not go outside unless you absolutely have to. it is risky for you. it keeps first responders from doing their job.

i also want to say to the oil and gas executives, do not use this storm as an excuse to raise gasoline prices and gouge the american public. the price of oil has dropped recently. the price of gas should be going down as rapidly. it is not. by experts in forming the production of only about 160,000 miles per day have been impacted by the storm. that is less than 2% of our countries daily production. it is small and temporary and provides no excuse for price -- price increases at the pump, period. for gas station companies, try to use this storm to raise prices, i will ask officials to look into whether or not price gouging is going on. america is watching. you should do the right thing, i expect you to do the right thing.

while we see the devastating images of florida, i want to be clear, to the people of puerto rico, i'm committed to you and the recovery of the island. we will stand by you forever long it takes you to get it done. i know they are working nonstop round-the-clock. that is why finally i want to thank first responders and the national guard and coast guard and service members and the search and rescue personnel for working to get people to safety and restore power, water, and phone lines. and i want to thank everyone at fema and other federal personnel. i've seen you in action across the country, from the west coast of the northwest and to the northeast, down in louisiana, across this country. just in the last two weeks you have been working 24/7, no matter what and when emergencies

happen, fema is there. you deserve the nations gratitude and full support. right now, between the national guard you get caught up, you can keep your guard. if you are in a fino -- fema reserve, that is not the case. that is why earlier this morning i signed into law the bipartisan cu act, championed in the senate by gary peterson and rob portman , a house weidmann titus and john katko. & did. that law will ensure families have job production just like military service just like military service. so when you're called up to help with a disaster, you can focus on that mission without worrying you might lose your job, your day job or some other penalty in part because of the national service. that is what the cu act guarantees. it will help people become more -- gain more civilian reserves out there and it will make fema

stronger, it will make america stronger. that is who we are. every time disaster strikes, emergency crews from all over the country, from across the federal government, show up to help like they are doing right now in florida. that is america. a country of women and men willing to serve, willing to lead in their own families and help a stranger's family. everyone hard at work in florida now deserves our thanks. when conditions allow it, i will be going to florida to thank them personally so we do not get in the way. we will do our best to build florida back as quickly as possible but we will not be leaving. we will build a pact with state and local government. however long it takes we will be here. that is my commitment to you. i want to now turn it over to secretary mayorkas. >> puerto rico as well?

pres. biden: that is my intention. >> that was president biden speaking on the aftermath of hurricane ian and we will continue to keep you updated as we continue to see a q&a session underway their. just to recap quickly, the president saying hurricane ian could be the deadliest hurricane in florida history. he is hearing reports of what be -- what may be a substantial loss of life and biden continues to see daily rainfall and catastrophic storm surge's. as we continue to track hurricane ian, tropical storm ian, then they continued follow from that. while we are doing that, we want to take a quick check of the equity markets as well because this is an equity market that is firmly under pressure. s&p 500 off about 2.4%, this erasing all of yesterday's gains that we have seen with this huge volatility in the equity market swings up this week, tons of volatility in the bond market and two year yield upon just 20

basis points yesterday and rises back again today about six basis points on the day. you really see that reflected in the move index and fixed index as well as we think about the cross asset ramifications and volatility signals underway. earlier today interestingly enough, we heard from principal globals and her take on the market volatility. >> july at half of argus, you have this almost really ridiculous -- feeding into the market and the hope the fed and central banks will capitulate to weak growth. then that realization that there is just one focus and that is inflation that has taken all of the expectations back to higher rates, low growth, and of course lower earnings. and it is not over yet. taylor: joining me now is our very own tatyana soiree. as we think about the cross asset volatility, which you want

to start within the rates market, an acute story we were getting amid the biden press conference and other breaking news about barclays shelving a $1.9 billion bond sale for the bright speed lbo and an ado syncretic story or broader story of some of the credit risk and lack of liquidity starting to be in the markets. >> definitely, recorded he -- liquidity remains low and this certainly does not send a good signal for the markets or the other deals waiting in the pipeline and there are tens of billions still waiting. for bankers, this is problematic. now they're hoping to find the new deals and there may be others as well. what is curious about the deal, the price is in the range of 10% so investors are not interested in 10% higher yields or level but they are looking for something figure than that, which means more weakness coming into the market.

for us to start worrying about the markets, we need to keep the defaults rates starting to pick up. i think this is sign that froth is coming out but the real problem is when defaults spike and i think we are getting closer to that. taylor: is that a signal we are looking for? i have always looked at treasuries and spreads have not blown out the way we have gone to 2020 or 2008. everyone kept saying look at maybe the lbo market, other cracks in credit. why aren't we seeing this spread , the classic indicator signaling distress in the markets? >> default rates have remained low. they are hovering around the 1% rate. that is historically very low. i think the expectation is they will spike to 3%. that is an estimate from rating agencies and could be even a conservative one so they're putting it around a five to -- 5% to 6%. if we go to that level, credit spreads will spike from these levels because at current levels we are even below the

non-recessionary slowdowns from 2016, 2011, so recession risk is not sufficiently priced in but we will see into the markets that credit risk is going higher so spreads taylor: will have to follow. taylor:and you are keeping us up-to-date on all -- on all of this, thank you for the great report. joining us for more, i am pleased to say nick bennenbroek , international economist from wells fargo. sometimes this comes down to the dollar strengthened the ripple effect it is creating. how much are you now may be worried about dollar strength and the implications of what that means for overseas markets as well? nick: i think certainly dollar strength is not helping some of the foreign central banks like the bank of england and european central bank because they are already worried about high inflation. so that will make their job that much tougher. it is not a helpful idea and at the end of the day, certainly energy ply -- energy supply

disruptions, boosting inflation, that is inflation above everything else. this is not helping but is not the fs far some of these economies are concerned. taylor: what are the signals you're looking for that even globally peak inflation is behind us. nick: i think it would come down to what happens once the enter -- what is the energy price dynamic. we have seen decline in oil prices but not in terms of actual gas prices so i think it will probably take a little while, maybe another few months, before we see peak inflation. arguably, and i know there's a lot going on, but arguably the plans and the united kingdom to cap energy prices could be helpful but i think this year, we continue to see higher inflation and continue to see monetary policy rate increases over that period as well. taylor: you talked about the u.k.. what conundrum does the boe find itself in in the midst of those reported tax cuts as well coming

from the fiscal side of things? nick: very difficult situation for the bank of england. at the end of the day, they have 10% inflation and that is a real issue. when you look at some fiscal images pursued in the u.k., i think the energy price plan is probably relatively helpful, going to cap inflation and maybe aimed at lower income people, it will cause growth. i think it will have the same growth impact. they could see the budget deficit in the u.k. get as wide as a percent and 9% of total gdp and i think that will be the issue. and could see the pound further while yet. taylor: in a couple hours, we hear from companies like micron, nike, as they come out with their latest quarterly reports and the big focus has been the slowdown in china. his china somewhere you are looking that is still continuing to export slower growth to the rest of the world?

nick: i think so. certainly the authorities in china have been intolerant of the spread of covid and had restrictions in place for quite a long time and that is particularly impacted the service and retail sector in the manufacturing sector. to ask you a question not only for china but more broadly, there are very few shall we say encouraging more positive places in the world but china is expecting 3% positive growth which is positive, just not as great as it usually is. then of course in the eurozone and united kingdom, looking at recessions in 2023. so i think china is exporting slow growth to the rest of the world but certainly europe and these other countries are exporting slow growth to the rest of the world also. taylor: i want to talk about this global coordination of central banks. i think it was interesting in 2008 you had a lot of central banks cutting but we sort of missed the global coordination

involving central banks. are you seeing that now in this new rate hiking cycle, the big inflationary concerns, yet slowing growth because of that? is there more global coordination that you would like to see? nick: i don't think there is global coordination and at the end of the day, i think arguably each of the central banks should respond to the effects on the ground as they see them. they should not be focused on what is happening in their local economies perhaps more than anywhere else. they're obviously always talking to each other so that is relevant. i think what is interesting and something we have not had in quite a while is so many central banks raising interest rates so quickly and frequently. it from their perspective, although it is not coordinated, it is happening at the same time and that does probably raise the risk of maybe a little more volatility then we might otherwise expect during a cycle happening everywhere at once. taylor: finally as we bring a back to the u.s., we hear from

loretta mester earlier, and nation still are too high in the u.s. area than of course to come out that, you are thinking about maybe higher terminal rates, higher restrictive territory, longer time of staying in that territory, what do you see as a terminal rate for the cycle? nick: we are pre-much in that camp as well. inflation is persistent. although not great, perhaps the economy is resilient terms of employment growth and in terms of some of the surveys. we are doing better than other parts of the world. we think those rate increases will continue. we see the one speaking around 4.75% to 5%. with the economy doing better and interest rates in the u.s. likely to go further, we probably will see the dollar stronger for another three to six months, maybe 5% gain from where we are currently as far as the dollar is concerned. taylor: really pushing your perspective. nick bennenbroek of wells fargo,

really appreciate it. getting back to some big news of course we were hearing from president biden speaking at the fema headquarters while hurricane ian delivers massive damage to florida. how very own bill joins us on the phone from fort charlotte florida. what is you make of the big federal effort as well underway to help rebuild and also preserve some of the loss of life that the president spoke of in florida? >> it's going to take a big effort. there is a lot of destruction down here. i have been driving around port charlotte which is a little bit north of where ian made landfall yesterday and there's a lot of destruction. i'm seeing a lot of trees blowing down, signs all over the place, there is no our, don't know how long it'll take for the power to get back up. i know the governor says this county and the next over were basically off of the grid for who knows how long. taylor: talk to us about that

grid. millions of people we still here out of power. what does the next few days and next week look like as well? >> usually what happens is the utilities put out a call and they get lineman from literally all across the country. i've heard they are coming from as far away as i think montana to pitch in. that is what utilities do and there is a big -- when there is a big disaster. lines could be down. i have not heard how much lines could be down. usually trees get knocked over and they blow the power lines down all over the place. so it will be a while before this area gets power again. taylor: what do we know about the flooding as well as the storm surge? something the president mentioned in that conference. >> the storm surge was supposed to be a size 18 feet in some areas and i now he and just left a path of destruction, all the way across the stay, right at the middle through the orange

groves, over disneyland, went to the atlantic and it is coming back ashore in the carolinas i hear. there is a lot of water. i've seen flooded streets, when i was coming down the interstate, the ditches on the side of the road were full of water up to the edge of the road line. there were a couple cars stuck in it up to the doors and hoods. taylor: it is interesting. we are taking a look at the function on the terminal which does indeed show as you are mentioning, it goes into the water, maybe regains its strength and comes back to some of the carolinas as well. in the meantime, if we think about not only the path of the storm but what is left in the wake, what do you hear about the economic damages, the longer this goes on the more economic damage there is? >> i know couple days ago the estimate was $45 billion of damage but i think yesterday they raised it to 60 something, maybe $68 million, $69 million.

i know 90% of the orange crop was threatened and the storm went right through the big orange producing area like polk county. that will be a huge hit to florida's economy and i can't imagine orange juice at the grocery store will do anything but get even more expensive. taylor: yeah, we have watched those futures rise in the last few days. will wade, we appreciated. as will was speaking, the florida light and power company sang rebuilding parts of the great take days, so continuing to watch the humanitarian economics fallout as well. stick with us. or coming up next. this is bloomberg. ♪

taylor: this is bloomberg markets, taylor riggs. now to something that caught my eye, welcoming you all to the second to last trading day of the quarter, as we are wrapping

up the trading session tomorrow, what has been a volatile september and volatile year. take a look at this chart. we have gone back to the beginning of the year, it is interesting, bonds are the best performers and are still lost 20%. in the classic bear market, if you want to think about the wild year it has been, the russell 2000 getting a boost from the dollar strength so it is only off 25%. the ms ci ex u.s., when you think about everyone relative to the world, it is definitely a big underperformer, off about 20%. across si, it has been an ugly year in september. earlier, bloomberg spoke with the treasury secretary larry summers about what is going on. when you think about managing the economy and the u.k.. take a listen. larry: we are in complex and uncharted territory with what is happening in the u.k. and it would not amaze me if we had situations like that in more

places. look, the u.k. has fundamentals that are out of whack in which the market does not believe that they have a sustainable path of macroeconomic policy that, over time, no matter what interventions you do, spells very difficult times for their long-term bonds or currency or rate of inflation and ultimately for their economy. taylor: larry summers there of course, former u.s. treasury secretary talking about cross asset volatility but the cross global volatilities we see as well. of course you can watch more of larry summers tomorrow, wall street week, happening at six clock p.m. eastern time. up next, rate hikes are coming back and serious.

we dive into how market prices are rapidly trying to revalue assets, that reevaluation underway today, two year yields climbing six basis points on the day. this is bloomberg. ♪

>> welcome, i am mark crumpton with first word news. ian is set to regain hurricane strength over the limit after a 150 mile path of discretion across central florida. leaving road homes, shattered power grids, and unprecedented floods. it remains unclear how may people were killed by the storm, ian done -- dumped as much as a foot of rain in some areas of the state is poised to set landfall again in south carolina. north carolina -- korea is ratcheting up attentions even higher.

south korea says pyongyang fired another especially missile -- suspected missile, the third one this week after hours -- hours after vice president harris visited the demilitarized zone. the biggest donors to his campaign ahead of sunday's election are mainly from the country's wealthy community. the main backer owns farms as big as austin texas, the money may not make a difference, his opponent holds a commanding lead in polls. voters head to the polls on sunday. supreme court justice is getting high profile support as she prepares to take the bench. president biden, vice president harris and their spouses, will attend the ceremony for jess's

content you brown jackson -- for justice ketanji brown jackson, the new -- begins monday. global news, 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in more than 120 countries. i am mark crumpton. this is bloomberg. >> welcome to bloomberg markets. taylor: i am taylor riggs in for kriti gupta. take a look at the dizziness going on within the equity markets as well the s&p 500 recruit 3700 -- recouped 3700 yesterday, all that drop today. it is madness within the bond

market. we migrate more towards backup basis points and yields. >> a deeper dive into the world of equities within the sb 500, the 11 sub groups all in the red. not a lot of interest in technology stocks, their interest rate sensitive, apple, the a rare -- a rare bank of america downgrade today after the big scoop of their projections going down. we just got his group on the reality checks for the inking investment team for royal banks, the u.s. embankment -- investment banking team has shed 1% of their workforce. the company confirming that the bloomberg. we will continue to watch what they say about the earning pictures, write a this lad -- right to aid it is a slam today

25%, carmax almost a similar amount after a shortfall on performance. taylor: we asked her if she would expect more the broad equity pain to come. >> a lot of what we look at in terms of cross asset tricks would tell you that equity volatility has room to catch up. that has been true all year. we have seen the lead lag, and the reality is the rate falls that are driving the economy right now. when you see the lag equity volatility we think possibly there is room even with the nosebleed level of high volatility. >> let's get a little bit more on how to navigate that volatility, christina joining us now chief market strategist with invesco, i was looking at the bloomberg team crunching the numbers, this ends up being a

money-losing quarter for the s&p 500, is something we have not seen since 2008 in 2009. that was a six quarter selloff come investors thinking about the session or risk right now. what are you thinking about? >> i am thinking about the fed, so much of this will be dictated by what the fed does going forward. clearly they had to frontload rate hikes given that they delayed the start of tightening. they spent too long thinking inflationary -- inflation was transitory. here we are today. we should hopefully see the fed make a subtle pivot. that is not what we hear from fed officials. hopefully we will see them move towards that. if we continue to go at a 75 basis point clip, if we see that the next fomc meeting, the problematic. that will increase the odds of recession just given that we have not given time to see the

impact that all these rate hikes have had on the economy thus far. taylor: the impact on the equity markets struggling to find a bottom in the selloff of volatility. the bond market volatility as well. what are you looking for to signal the bottom here? guest: the yield hitting 4% was a signal. that certainly encouraged some buyers of longer duration treasuries, but where we are today is still problematic. we could see treasury sell out, we could see yields go up from here. keep in mind there are other factors at work. it is not just the fed. it has in recent days about -- been about the u.k. as well. there was resolved yesterday, but we are back to focusing on the fed and at some point yields

might be a problem again. jon: christina, i want to get into global context year. you alluded to whether or not the u.s. federal reserve starts to cool the pace of rate hikes. we just got a fresh read of what is happening with the canadian economy today, we see signs of cooling as the rates rise. the bank of canada has interest rate decisions next month, most of the investment committee thinks will see a 50 basis point hike on top of what we have seen. you find yourself in a different camp given what we have seen on the inflation front. guest: i would like to think that central banks will take into consideration the fact that we have moved so quickly, there has been this general environment of almost synchronized tightening. recognize that there could be significant impacts on the economy and tread more lightly from here. the world bank two weeks ago

came out with a warning. i think it was a stark warning. about how what we are seeing this year with central bank tightening is something we have not seen in five decades. it creates much greater risks. i liken it to getting in the shower in the morning, the water is too cold so you take the dial internet all the way in the other direct -- in the other direction and you run the risk of getting scalded. that is what you run the risk of right now. taylor: kristin, invesco chief global market strategist, we heard that banks are shelving a $2 billion bond sale, 10% yields were not enough to get it done. indeed we are hearing the second part of the bond sale being shelved. they think about credit stress, liquidity, some big deals cannot get done. what that means for the equity

and bond markets as well. coming up we will keep our eyes on the u.k.'s new trade minister in new york. we will be speaking to her about the importance of u.s. investment for trade, coming up next. this is bloomberg. ♪

>> it is a difficult time. we are facing a global economic crisis brought about by putin's war in ukraine. what is right is that britain took decisive action to help people what -- get through what will be a difficult winter. taylor: this is "bloomberg markets," i am taylor riggs. we have uk prime minister liz

truss speaking earlier today holding steady on her economic policies even as they cause market discretions -- disruptions. they say is a self-inflicted financial crisis years in the making, we bring in david from london. -- stephen from london, how many years in the making was this? >> this started probably back in 2014, 2015, we had the referendum that went through to back -- brexit. there has been a long-term erosion of trust in the u.k. that lost its trust in markets. that is what came to head out to the fast -- fiscal plan on friday and into this week. jon: at the end of the day, david, the question of being able to restore credit ability with investors, what is the

general sense you're getting right now? >> obviously that is huge, for a new government, the u.k. government has been in power for less than a month and we have this kind of market crisis. they are taking steps to restore credibility is important. a piece of the selloff on monday, they indicated there would be a longer-term fiscal plan coming in november. accompanied by an official forecast on what will happen things like borrowing. that feels like quite a long time away now in the u.k., november 23. with market swings like they are now you have to feel like there is -- there has to be a statement earlier to assure investors what the plan is. they have a conference coming up next week with new prime minister liz truss addressing the party. we will see if there's any efforts to restore credibility.

jon: we appreciate your reporting, david goodman of the bloomberg news team. we want to keep this conversation going, joining us now the u.k. secretary of state for international trade who is making her first overseas trip since she took on this role. thank you for -- we appreciate it. can you talk about restoring faith in the plan? the markets are in turmoil globally right now. what happens in u.k. as part of that story. what are you looking to accomplish on this strip -- trip ? do you feel like you've accomplished something so far? kemi: it has been a great trip, i have met a lot of u.s. businesses investing in the u.k.. the atmosphere is actually very positive. many companies including business trade associations are saying the policies announced last week were among the things

they had been asking for. they still have faith in the u.k., market turmoil happens fairly frequently. this is a global phenomenon, the you're right there is instability u.k. right now the bank of england is also made lots of statements that has provided a lot of reassurance to business. i think we are actually in a really good place. many businesses agree with me now is time to invest in the u.k.. taylor: despite even some of the economic concerns as well, taking out the market volatility concerns? kemi: that is something we are addressing with our growth plan. i think it is interesting with your journalist talking about going back to 2014 with a scottish referendum, the brexit referendum. that is democratic referendums with people telling us what they wanted. the message that we got in 2016 is that the growth had not been shared equally.

in order for us to spread the wealth we need to create it. that is what the prime minister and chancellor's growth plan on friday is all about. we have seen marcus be volatile before. i remember -- markets be volatile before, i remember when there was a run on fuel. people panic unnecessarily when there is something strange or unexpected. i've been pleased to find there is much to calm down. as a government we also have a job to do in terms of communicating, why, and how it will benefit people in the kingdom. jon: you referenced the bank of england and is action, i'm sure you heard from mark today accusing of your government of undercutting the nation's economic institution. i wonder if you could give a reaction to that. kemi: this is the first i've

heard, but i do disagree if they are as you say they are. i know the chancellor is working well with the bank of england, is also committed to maintaining its independence. this goes back to the fundamentals of why the u.k. does well. it is beyond today's news or tomorrow's news. it is about our romaine: --regulatory environment, it is about the rule of law, is because we are the best gdp ratio in the g7. sometimes we may disagree on an particular approach come but we do work well together. taylor: can we bring you to the u.s. as well, we think about trade relations, what are some of the goals when think about the special relationship between the u.s. and u.k. as well and getting to better trade deals? kemi: things are pretty good between the u.s. and u.k. in terms of trading relationships. what i'm doing here is working

to maintain that. you cannot be complacent. you cannot assume that because things are great today they will continue. yet to keep working and nurturing the relationship. that is what i am doing in new york. that is what i'm doing with our investors and businesses that a been here, with british businesses and the u.s. rep presented as -- representatives. one of the things i'm trying to do as trade secretary is pull the discussion beyond trade deals. they are fantastic, but they are not the only thing that exists in the toolbox of trading relationships. i had a fantastic conversation with the ambassador today, there is so much we have in common that we will work together on. i hope i can spread and share that must. -- message. jon: that is helpful context, want to clarify that this is your first overseas trip, there

are 70 headwinds in the u.s. u.k. trade deal in the near-term -- there are so many headwinds and the u.s. u.k. trade deal in the long term, i looking to make progress in the short-term? kemi: i think the prime minister was clear and the likelihood of a u.s. u.k. trade deal. i will not contradict that. then does not mean -- that does not mean that cannot be won in the future, if it happens in the future i need to nurture the relationships now so will be easier. jon: we do appreciate your time. thank you very much, kemi badenoch u.k. secretary of's date for international trade -- state for international trade. we'll talk about the picture and canada, there are signs of a cooling economy as interest rates rise. stay with us. this is bloomberg. ♪

>> this is bloomberg markets, i am alongside taylor riggs come up time now for what it's worth, the data point a 10th of a percent, that is how much canada's economy grew in july. the early reaper august showing the -- read for august shows the economy stalling out. they have raised their rates by three percentage points since march and they are expected to hike another 50 basis point. he joins us now with a little bit more on the economic picture here in canada. obviously everyone is trying to figure out what the recessionary risk like. what was your take away today? guest: clearly the canadian economy is slowing in the face of higher interest rates. economists will also say they will take whatever growth they can get.

the economy is still going, very weak growth, no sign of recession just yet. for many canadian economist that is a bit of a relief. the expectation is, it will eventually be dragged into some type of global recession. the question is how much you'll be able to whether a global slowdown. in canada there are a few tailwinds that will help including the commodities boom this year. it is fading, has driven a lot of revenue into the economy. as well, canada has strong population growth, much faster than what is happened in the u.s.. is stoking some confidence that canada can grow more than the u.s. without generating as much inflation. there are some reasons to believe canada, even though there is a slowdown, will be able to do other countries in

the g7. jon: in the face of market turmoil that we have been seeing, it is interesting that we started this half-hour with christina of invesco. shearling of the picture in canada and wondering if there more signs of weakening as well as signs of inflation easing, maybe the bank of canada does not go ahead with 50 basis point next month. guest: it is definitely the consensus, the bank of canada is clear it is focused on inflation and will continue to raise interest rates. the difference is canada is not expected to go as high as the fed is. the fed is seen as going to 4.6% as the terminal rate. it is a rare thing, canada's monetary policy does not typically diverge from the u.s. as much as markets are anticipating over the next three years. that may reflect slightly better economic fundamentals and what you see elsewhere. taylor: we appreciate him

joining us there. we refocus not only on the global world of economics, but the u.s. market as well. all the global markets are open at this time. it is looking back down to the lows of the session, the dow is off 600 points. we will put that into percent for you, to percent come this be 500 falls -- the s&p 500 falls. yield climbed higher earlier come on this risk off sentiment, yields are only up three basis points or so on the 10 year yield. jon: we are on pace given what we are seeing, you think of the six-day selloff, we had momentary eyes there yesterday, it will be a third straight quarter of weakness for the s&p 500. you have to go back to 2008, 2009 the last time we saw that. we will continue to watch the

markets in the next hour. it was great to have you with us this half-hour. for taylor riggs, i am john, this is bloomberg. ♪

>> this is "bloomberg markets: the close," with caroline hyde, romaine bostick in taylor riggs. >> we are kick you up to the close and close to two hours we are back to two-year lows. >> the 3670 level where we stand right now, that is not just the lowest we have seen all year long can we go back to the correction in between 20 as last time we have been here -- in 2020 as a last time we were here. >>