so which leads us to this current program, the tpi. he mtc, metropolitan transportation system established this program to focus on two things, one was transit ridership and the other transit system productivity. they did, as most know, made explicit in the approval of this program, programs to provide fair relief to low income youth. >> supervisor wiener: i want to clarify one thing. in terms of the history at mtc. mtc rejected the specific lifeline funding for san francisco's free muni program back in the summer, correct? >> that's correct. >> supervisor wiener: and in terms of the tpi money, the free i think everyone agrees for that but i want to be very clear that mta is not required to use the money for that purpose. mta has the discretion in terms of whether to allocate all or portions of the money to free muni program, to maintenance, to new vehicles or other operational needs. >> yeah. that's absolutely correct. the wñ?ñ? mtc considered an earr proposal, late spring/early summer, to make funds available explicitly and only for y

the risks facing transmission. purchases are not restricted. tpi will allow the governing council to more effectively deliver on its price stability mandate. in any event, the flexibility and reinvestments coming in the pandemic emergency purchase program portfolio remains the first line of defense to counter the transmission mechanism related to the pandemic. the details of the tvr described in a separate press release to be published. you will get that later. 50 basis point hike. on the euro, a spike higher by half of 1%. 1.0230. yields still higher in italy by 18 basis points. the 10 year higher by 20 basis points. kailey leinz, your thoughts on the back of this one? it looks like a loose definition of anti-fragmentation talk from the ecb. kailey: i think i got a description but not necessarily an understanding. people will be asking for more clarity from christine lagarde at that press conference starting at 8:45. you are definitely seeing the reaction in the bond market. the spread is narrowing now. the move in the euro is stronger on the back

tom: still looking for a little more clarity on the details of this tpi tool. yields lower both at the front and long end, down by about four basis points. five basis points, the italian tenure at 3.49. madison faller stays with us. we will get more of her calls after the break. coming up, tech stocks get knocked down in extended trading after snap sales disappoint. tech invoke is next. -- tech in focus next. this is bloomberg. ♪ tom: welcome back to the open. happy friday. seeing losses around zero .1% across european equities. futures on the s&p looking lower by 0.2%. nasdaq down by 0.6%. snapshots parent company snap plummeted 27% after disappointing revenue raised concerns about the outlook for online appetite. meta and pinterest fell on the news. it was the second time they had a selloff. joining us is madison faller. what is your assessment of the tech sector? you say there are opportunities in reasonably priced parts of tech. where are we in some of the multiple impressions and how concerned are you about the earnings we are seeing come through? guest: th

alix: in the tpi readout it said it could by private-sector securities. it could consider. is that a good idea or bad idea? peter: i don't know. i would have generalized. central banks, the u.s. central banks intervened in the bond market. the government bond markets in europe. in private bond markets as well. i think central banks are used sometimes, under exceptional circumstances, to intervene. this really should be exceptional. here we talk about problems in certain jurisdictions, in certain countries. that makes it difficult, and there are a number of criteria. i think the ecb is going to come with a general signal that they could also intervene in private on markets, but i don't think that is useful. it does not hurt much, but it is not necessary. alix: it is like a huge net, there are still a lot of holes. peter, thank you very much. always appreciate your commentary. peter praet, thank you very much. mario draghi's government is over. dealing with banks during the italian debt crisis. marina broglie will be joining us next. this is bloomberg. ♪ alix: mario draghi off

maire said the governing counselor said the decision on the tpi is showing unity and the commitment to the euro >>> italy is recovering from last couple days it is holding a snap election in september after mario draghi stepped down he stepped down after allies refused to participate in the confidence vote in the parliament this week it will be a major couple of months for italy let's bring a timeline of what we can expect. september 25th is now the general election this is the first time italy holds a general election in autumn in history. they are held in spring usually. the chamber will meet for the first time to put together the budget law the all-important budget in the legal system and there will be a new electoral law where one-third of the parliamentary seats have been taken out 600 are up for grabs all eyes on the polls. let's see how they have been evolving in the last couple weeks. we still have brothers of italy at the top at 23% of the total share of the vote. brothers of it aaly is the only that hasn't participated in the government they are anti-immigration and euro skep

it was unanimous on the 50 basis points, on the tpi. ristine lagarde also laying out four clear criteria for meeting that framework of the tools set out in the press release as well. she really pounded away every question about italy, whether she was concerned they could apply for this, whether it was applicable to them, going so far as to not say "italy," saying instead "the country to which you are referring to." alix: private securities could be considered. i thought that was pretty interesting. also, the fact that the euro exchange rate factored into their decision to hike 50 basis points. what have we learned about that? >> you have got to wonder that she said it not once, but twice, the fact that the euro was leading to higher inflation, among other factors. it would not be surprising if we get closer to parity to see more verbal intervention. it is clear that this is maybe even something that is pushing the hocks and the doves 50 basis points. it is also clear that they are leaving themselves a lot of discretion, whether it be to

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alix: so it raises the question for me what's changed and i wonder, may be the tpi tool that the ecbas is better than thought. they can handle the spread widening. maybe they can handle the energy crisis in the winter. is there anything to that in terms of why they went so hawkish today. >> i think it's not very complicated. i think inflation fears are not good. the economy has been more resilient on this with some market analysts were thinking, myself also, the unemployment rate is quite low there some wage pressure. i think we should look at the simple analysis that inflation is too strong for the ecb to act. my concern is that the guidance on rate as been quite strong. and the intention you see it's not the intention to further dampen demand in a situation with the project with already to negative figures. this i think is a bridge too far. guy: peter, have inflation expectations and the euro zone become -- now. >> i think they are quite well behaved. and surprisingly given the inflation shock that we had so they are on the upside for us and the ecb basically wants to give a strong

as far as the tpi csgo, the hurricane down there is by far the worst right now. we will continue to watch that storm as it moves up towards cancun. it looks like south florida is going to be okay. not too bad. we will see some clouds and showers moving onshore. and of course down there in the deep south we could use some cooling off. 67 in vegavegas. that's a look atan diego. flag staff, arizona, 54 and some showers. >> i refuse to let anything interrupt my weather. >> we will be right back. earnings do a u-turn and a woman prepares to take the helm at another american business giant. plus for years, you could say he led the dead, but now there is a new top earner from beyond. >>> terrell owens wants to get back to the nfl. you're watching early today. >>> good morning and welcome back to "early today." i'm lynn berry. here are some of your top headline this morning. turkish state media is reporting an 18-year-old student has been pulled alive from the rubble of a collapsed apartment building 61 hours after a 7.2 magnitude quake devastated the region. rescuers ha

dani: at the same time, we have the tpi protection tool. safety net is supposed to be there for italian bonds. does this just show us it is a market that is very ready and willing to test that? >> before yesterday's meeting, markets were actually relatively calm when it came to italy. potentially now, with this very surprisingly strong guidance around rates that unsettled markets somewhat. dani: the ecb does have a different market environment, as does the u.k., where labor is really the question. it is a very difficult labor market. how does andrew bailey's task different when it comes to that? what is the fine needle that he needs to thread? given how extremely challenging this labor market is. >> one of the contrast on the market versus the u.k., i think the key difference is that we saw the pickup in wage growth in the u.k. coming through much earlier than we did in europe. the part of the story is the fact that participation rates were essentially available in the u.k., and it has shrunk more than in the euro zone. it still hasn't recov

just a quick overview of capital funding, a discussion of muni performance, and then speak about the tpirogram, which, as supervisor wiener said, one of the purposes of is to increase ridership. so looking at the big picture of our capital funding, and sorry that that's not showing up right on the screen, we have undertaken a comprehensive' quy capital planning process that starts with a 20 year unconstrained plan that lays out all of the needs for all of the assets that mta has. from that, we develop a five year capital improvement program, which is a fiscally constrained program and a a two year capital budget. the constrained budget is almost 24 billion to bring it into a state of good repair, calls for expansion and enhancement needs of the figure, nearly $6 billion, we would need every five years. when we bring that down to a five year cip program we have about $2 billion identified, outside of the central subway to meet our core needs, which are articulated at a project level detail in the two year capital budget, which the core of which is bringing the system into a state of good

reiskin himself noted during the hearing, and as was noted during the presentation of the tpi fundingat has been allocated for san francisco, it's money that can be used for different things. and the fact that the mta board of directors chooses to use this increase the accessibility of public transportation for low income youth does not mean that the mta cannot, at the same time, turn around and use some of the money for maintenance. that somehow the lack of reliability of the system of an agency that has anpvpx& $800 min budget rests solely on the fact that it's going to make public transit more accessible to low income kids, it's simply not reflective of the reality that has been true of muni for the last few years. muni, to the extent that their issues about maintenance, the reason for that is not because of the funding of these types,%f programs. to the extent thatmine is failing or hasjpn,1 to address those issues, it is not because of somehowqpihb making public transportation more accessible to poor kids in this city. i think it's simply unfair to place that responsibility on

the deflationary funk, since 2011. a 2.3% number in terms of tpisignal we have made the shift to inflation. oil prices are rising as our metal prices. anchor: positive prices coming early. tom: the higher prices, good news for china's factories. offsetting some of the higher wages. wee of the higher costs talked about as well. factories putting up their the environment of stronger demand. it means of course of their earnings will go up which means they can pay down some of that corporate debt. what it means in terms of broader chinese inflation, they expect chinese inflation to hit around 6% in the third quarter of 317. broader picture of the inflation of the global economy at a time when donald fiscals expected to up and infrastructure spending. we could see a broad pickup in inflation. good news for the likes of the ecb and mario draghi. good news for the boj. not so good for the consumer. in terms of where the pb oc stands, analysts could expect them to tighten at a moderate rate. numbers expected in a little under one hour in beijing. yvonne: j

the center is still across the plains, snow, rain, severe weather, at least one torna tain io the tpi tou tt is mo is lt over from hurricane pamela. downpours widespread tonight and tomorrow. the next 36 hours will be wet before it all moves east. >> rob, thank you. >>> we move to the breaking news from overseas. a horrific scene in norway. a deadly bow and arrow attack. five people killed, two injured. james longman joins us from london. you're getting new information about how this attack was carried out. >> reporter: yeah, that's right, whit. tonight, the suspect is under arrest after this horrific attack that took place south of the norwegian capital, oslo. investigators say he walked around firing a bow and arrow at people seemingly randomly. among the victims was an off-duty police officer. authorities intercepted him 20 minutes after learning of the rampage. they called it a confrontation with police officers. investigators say they believe he's acting alone. the prime minister says it was too early to speculate on a motive. whit? >> james longman with the new develo developmen

reiskin himself noted during the hearing, and as was noted during the presentation of the tpi fundinghas been allocated for san francisco, it's money that can be used for different things. and the fact that the mta board of directors chooses to use this increase the accessibility of public transportation for low income youth does not mean that the mta cannot, at the same time, turn around and use some of the money for maintenance. that somehow the lack of reliability of the system of an agency that has anpvpx&

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wednesday we get the tpi that measures consumer inflation. busy week for economic data ahead. >>> that's the show. next week i'll be in sin city. we'll have some surprises for you from las vegas. each week keep it right here where wall street meets main street. have a great week, everybody. i'll see you again next weekend. >>> coastal crisis. new environmental concerns this morning in the gulf as bp starts siphoning spilled oil out of the water. >>> then, the volatile volcano in iceland causes more problems for travelers. the airports idle due to dangerous ash. >>> and, virginia's last-minute victory on the lacrosse field. a tribute to a murdered teammate. >> i have the chills right now thinking about it. >> it's monday, may 17th. >> from abc news, this is "world news now." >> we're just talking about celebrities that we saw. you never know in new york or l.a. who you're going to see. i don't know why we ran that rant. i saw t.i. >> who you thought was? >> t.p. confused about that. >> i saw montel williams. >> wow. i wonder if they saw us and

wednesday we get the tpi that measures consumer inflation. busy week for economic data ahead. >>> that's the show. next week i'll be in sin city. we'll have some surprises for you from las vegas. each week keep it right here where wall street meets main street. have a great week, everybody. i'll see you again next weekend.

. >> the tpi rate is very important. >>> still to come, as u.s. politicians trade barbs over the best way to stimulate growth. people really love snapshot from progressive, but don't just listen to me. listen to these happy progressive customers. i plugged in snapshot, and 30 days later, i was saving big on car insurance. with snapshot, i knew what i could save before i switched to progressive. the better i drive, the more i save. i wish our company had something this cool. you're not filming this, are you? aw! camera shy. snapshot from progressive. test-drive snapshot before you switch. visit progressive.com today. >>> welcome back. let's take a quick look at u.s. futures. didn't see too much movement earlier in the session. now we're seeing the s&p and dow jones moving to the downside. nasdaq is working to add five point but 11 points. two or three for s&p 500. now. >>> to stimulate or not to stimulate, the question dividing many economists and dominating policy discussions around the world. noble prize winner paul krugman has add row indicated f

with regards to the tpi instrument, the ecb has bought a lot of credibility with that.it means performing the next government, our expectation is forming this government wouldn't be as easy as many expected once the election result was announced. it's likely we are in for a few more weeks of volatility there. but i think the key thing investors are focusing on is the budget, and the fiscal position. whatever happens domestically with the political tractor up -- backdrop, our sense is you will not see much deviation from the budget that has been laid out by the previous prime minister, mr. draghi, so i think markets can take assurance that as long as we don't see deviation, we don't see big moves in the btp market. francine: dean turner, chief eurozone and u.k. economist at ubs joining us this morning. eu leaders gather in brussels, on the agenda, sanctions on iran and energy. this is bloomberg. ♪ francine: we'll talk about energy crisis in europe, but yen breaking through 150 per dollar for the first time since 1990. it is a very important psychological level, we did he

anna: on what did you make of the tpi tools, the transmission protection? have seen it described as containing a lot of constructive ambiguity, and how much latitude there was in christine lagarde's own description. i'm sure it makes sense more to others than it does to me, but is it going to be enough, that tool? ella: we are on the people of the 10th anniversary of draghi announcing whatever it takes, july of 2012. this is probably as far away as possible, and i think it was designed to be ambiguous because the council is not keen on having to trigger that. they are being political at this juncture, because if you are trying to fight spreads widening in spain, france, and italy, how do you justify what part of it is political in nature? having said all of that, faced with a lot of pressure, we believe probably the ecb will choose to protect italy. at this juncture, we need to get ahead of the election, which means they are probably vulnerable here. alix: this is interesting he. the absolute level of yields are lower, at length 3:31 for italy, and german 1

with the fate of green energy companies like tpi on the line. >> i will continue to support the rfc and do that as your next united states senator. >> if i could respond. i'm not sure that is what senator said when they went to secret meetings. she said she was philosophically opposed to the renewable fuel standard and in a perfect world it wouldn't exist. my support has been clear and strong. >> it is no secret i support bruce to be to you are next u.s. senator. he is the right guy to put the jobs back in the mid-west. iowians know what is needed in washington. someone who cares about main street businesses and jobs on the factory floor. >> so the wind production tax credit is about jobs, something republicans are against. it's a fact. we're a changing economy and in the middle of the country we're going from petroleum to wind and solar and the jobs are right there where president obama talked about it before he was president. we can change this economy, there are tremendous opportunities out there for america with a great workforce when it comes to a changing economy based on climate

they have reached out to karachi which had 17 seats in the election but they have reached the tpi andates are still angry and they want justice and candidates are still angry and they wantjustice and they want candidates are still angry and they want justice and they want their seat back, which they think they have one. ., ., seat back, which they think they have one. ., ~ ,, , . stay with us here on bbc news. hello again. showers towards the north—west of the uk but it is feeling rather springlike with blue skies, some sunshine and snowdrops in bedfordshire and it is a largely dry day across most of wales although we could see mcleod develop towards the south—west. today is the best day of the week for most in terms of sunshine amounts. from mid week it is set to turn wetter and the lactic system sweeping in from the west with mild there. temperatures marked in blue at the moment close to the seasonal average and then we get the south—westerly is drawing in the very mild air, temperatures are set to rise, particularly on wednesday and thursday. back to today and you can see this feat

that inflation rates, the tpi, that key rate, to remain at or around 4% for a while. high inflation for a considerable time. that is the problem. they thought they might see inflation started to use, -- to ease. now they see 4% inflation. they are acknowledging that it is an issue into the government has the same problem. the new president coming in in may, the new finance minister, they all know that they have to fight inflation. the problem is they want to spend money. that is where they might get tough. but for now, the bank of korea for today is good for a while. it is clear, tighten rates, fight inflation. david: kathleen hays in new york and husband almond and singapore. just a final note in singapore, that big move. you're sending the currency up, not just against the dollar, up against pretty much everything will currency in the world right now. bloomberg really visualizes this move for you. there you go. that's not it. i promise we will take this for you. let's get to your first word headlines with vonnie quinn. vonnie: the u.s. is sending ukraine $800 million

romaine: did you see the interview from the tpi cap ceo? you can't take risks unless you are in the office -- is that the gist of it? sonali: it's an interesting idea. you see people bringing the traders back and many banks, there are essentially war rooms being made for these traders who needed to be there because things are happening so quickly. but the question comes up again as you have folks like j.p. morgan warning of year and funding stresses, the worry about the underlying market makes you want your people close by and on call. romaine: do you plan to go out and stand outside these banks once again and corral these people? sonali: next week, there are two conferences -- there's salt and that digital asset conference wringing in people from all over the world. so while this week is very muted, next week, there will be people running around. romaine: i hope it doesn't rain on them. coming up on this program, we will talk about the european union trying to phase out internal combustion engines by 2035. lamborghini looks to the fed up it

maybe we can get through it therefore they can raise rates now and the instruments they have like the tpi to deal with fragmentation, they have more faith and it now than a few months ago so they can be this hawkish. guy: one was saying the ecb to go deep into restrictive territory if needed. but is a really big shift in the narrative and in terms of the language. the market got its arms around that story yesterday. the question of the day, how bad does it get? let's kick it around. we're hearing from ecb speakers today and they are really reinforcing the message we got from christine lagarde yesterday. the market coming into yesterday was nowhere near that kind of language. how bad could it get for european assets? >> if you look at the italian premium gauges the gauges how much risk we are saying in italy for example, the market is trying to respond perhaps aggressively to be message and they're finally listening to policy members who are saying we are not stepping down, inflation is the biggest goal even if session comes ahead. i don't think we will have to worry as much about session

the tpi is designed to deal with specific problems which are probably not the problems in the ecb currently. what is going to be difficult this summer? the formation of the italian government, higher bond yields. scheme drafted by the ecb is specifically designed not to deal with that sort of problem. there is still a lot of risk left on the table. i would expect the ecb markets to engage in again over the summer. kriti: let us talk about some of the other issues. you have a big commodities problem. russian gas close have already been halted and restarted and it comes to europe. that problem is going to get amplified. 50% cut on the table. walk us through the implications. -- 15% cut jamie: russian gas flows have turned back on but there is uncertainty about whether that will continue. the russian gas business, there is no long-term cost to cutting out the gas supply early. there will be further disruption. the european commission is expecting further disruption. that is why they have encouraged 15% reductions but we have seen resistance. spain, greece do not want to do this cut. they think

hey, the tpi except for hurricane nicole, the storm that won't quit, heading into the shipping lanes of the north atlantic and may impact weather heading up into greenland or iceland. for us, it's milder, warmer, and warmer, and then we do face the chance for some scattered showers or maybe some much needed rainfall by the end of this work week. doug and antoinette, to you. antoinette: all right, a.j., thank you. it is 5:46. a check of the stories we're tracking right now. a restaurant in los angeles. three people were killed. 12 others hurt in that shooting early yesterday. at least two of the survivors are said to be in grave condition. the restaurant was operating out of a converted home. it is still unclear if it was properly licensed. no word on a motive. antoinette: a new space mission out of china. tomorrow the country will send two astronauts to an orbiting space lab in an effort to set up a permanently manned space station by mission leaders say the astronauts will stay there for about a month to conduct experiments. the u.s. has highlighted increasing capabilities of the sp

it's the threat of that inflation possibility plus the actual data that we have been getting like the tpii that has people worrying the fed will be raising rates sooner rather than later. a little bit of trulouble on the inflation front. not a great combination. >> we talked about there too but people look at the figures but the velocity the number of times that's turning over as the record low right now. there's so much cash parked in banks that they are pushing it back to the fed. that's what's been happening this week. they are saying we can't hold on no this cash you have to take it back from us you almost wonder and this something that bryan reynolds put in this week he said it could be really bullish. if people take it out and what do they do with it does that lead to more inflation or not >> listen, it's already some of its gone in the stocks think reddit and all the things we have been covering the last several months you hit a key that i didn't mention. bank reserves changing the money going back and forts between fed and treasury all of this is potentially a keg of dynamite. wha

the main question regarding tpi and the criteria that they set out, they are vague, and christine lagardethey would use discretion and judgment to assess whether that criteria has been met and to activate tpi or not. that means markets are likely to test the result. we think particularly in the context of uncertainty on italy. we think the spreads will widen further from here. tom: you are currently saying 3.36 on italian spreads. this following the lowering of the outlook by s&p on italy. jari stehn, always excellent walking us through the fed. managing director / chief european economist, goldman sachs. thank you. credit suisse places its embattled ceo. a third straight corley loss. do not miss our interview, next. this is >> it is very clear whens are not there, people are asking questions, but i have a clear mandate. my mandate is execute the strategy, risk management, and be here for our clients. we are back to business as usual in here to serve her clients. tom: that was the outgoing credit suisse ceo, thomas gottstein speaking last month and davos, reiterating his confidence in his

then, to make sure to ensure periphery doesn't turn into something of a mini crisis, to ensure the tpiactivated and is credible going forward. that is quite a lot of movement from the ecb. anna: can i pivot to the u.k.? we have seen actual real yield today, and eye-catching forecast from goldman sachs that inflation could get to 22% in the u.k. where do you think inflation gets, how high do rates have to go, how quickly in the u.k.? peter: my models would point to similar numbers from city and goldman. i would ask, last week, there were assumptions going into the estimates. those banks are providing, that city was providing. it was based on estimates, accurate estimates. bearing in mind, it is likely to be extending the cap from 3d and a half thousand pounds above -- three and a half thousand pounds above 7000 pounds in or around march of next year. that leads through into all aspects of the u.k. economy. the thing that worries me the most about the u.k. economy's ability to turn into an inflation spiral is the have such a dramatic trade apposite and negative current account allen's. i