global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalistsnd analysts in more than 120 countries. rb star r. i am vonnie quinn. this is bloomberg. haidi: chinese president xi jinping arrives in hong kong on thursday, his first visit in five years in the first time he has left the mainland in nearly 900 days, amid the strict covid zero policy. chief north asia correspondent stephen engle is covering the visit. so what will stand out, halfway through china's commitment to one country, two systems? stephen: i will be wondering what his tone will be. we heard vonnie talk about his comments in wuhan, where he essentially said the economy could be the victim of a prolonged covid zero strategy, and will that apply to hong kong? will hong kong continue to be shackled to the covid zero policies of china, or will hong kong be allowed to chart its own course as an international financial center, as places like singapore, dubai, new york, london, chief competitors of the international stage for financial services which are completely opened up. in hong k

global news 24 hours a day on air and on bloomberg quicktake powered by more than 27 hundred journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: still ahead, the fed remains on course to deliver more hikes in its ongoing fight against inflation. up next, investors are divided over asian equities as they way up inflation risks and china is gradually easing covert restrictions. this is bloomberg -- china is gradually easing covid restrictions. this is bloomberg. ♪ >> attitudes are more balanced today. when there's euphoria, when there's optimism, when there's greed, when there's risk tolerance and so with, that's a very difficult climate for the value investor to find bargains, and now the prospective returns on many asset classes are higher than they were just a little while ago and again, a much bigger climate for the bargain hunter. shery: howard marks speaking exclusively on "bloomberg surveillance." we are seeing negative downside pressure when it comes to markets. the s&p 500 lost ground in today's session. the nasdaq 500 also underperforming

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalistsnd analysts in over 120 countries. i am ritika gupta. this is bloomberg. ♪ >> the key metric right now that tells you households aren't really that worried about recession? saving rate is low. if people were worried about their income prospect, they wouldn't be spending so much out of their income. jonathan: chief economist dreyfus and mello. tom: acceleration, it is not the number, it is how rapidly we are getting there. we talked target. we know that he teaches at columbia as well. the chloe ankle strap sandal is usually's $17. you can go in for a kid and buy it at $13 59 san. if they lowered that puppy to $11.99, will they sustain the traffic that you say is required? >> tom, what we have here is the consumer reposition very quickly. these markdowns taking place are critical. target is doing that now. the consumer shift is faster than they expected in terms of the consumer going up, buying suitcases instead of swimsuits. that has been under pressure, too. markdowns will occur in the

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: still ahead, we will hereby asset management says the stimulus will likely delay any risk of a global slowdown until 2024. jp morgan is among the market watchers predicting a 75 basis point fed hike on wednesday. joyce chang joins us now. -- joins us next. this is bloomberg. ♪ ] >> we are unlikely at this stage to go deep into a recession. it is possible, i would put 5050 odds. that is ok. haidi: morgan stanley ceo james gorman. our next test says re -- our next guest says recession -- always great to have you with us. where do you see the trajectory of risk particularly as we talk about the possibility of 100 basis points from the fed? joyce: the focus will be on the central bank meetings. we do see 75 basis but we also see two more 50 basis point hikes in july and december before a 25 point pace. we are seeing this across the board in central banks. the ecb has revised its inflation projections and

organic energy -- global news 24 hours a day on air and on bloomberg quicktake, powered by more than 00 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> there is nothing inevitable about recession. tom: president of the united states. a lot of vetting out there, do you think it is tangible that larry summers could find a warm spot in the biden administration? lisa: that would be controversial. someone saying that -- is highly necessary? try selling that to people. tom: public announcements -- a public announcement, it is the kailey leinz lines of contribution, we will be taking contributions as kailey leinz moved to brooklyn. right now, joe mathieu's does not know -- joe mathieu does not know where brooklyn is. he joins us now. lawrence summers has done a lot of public service, they love him and hit him. is that the name bandied about to reinvigorate the president's administration? joe: that would be something. i don't know if larry summers is looking for a job like that. we have to look closely at what the president said. if we kept play

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalistss in over 120 countries. i am ritika gupta. this is bloomberg. ♪ >> there is no real reason to be worried about a recession. the other thing is part of the reason we are getting slowing is high inflation. the combination of high inflation and tight labor markets is starting to change the inflation process which overtime is not good for the sustainability of the expansion. jonathan: bruce katzman there with j.p. morgan. .8% the s&p 500, nasdaq is down --. are we in for a slowdown? the outlook for the second time in three weeks, that stock is down 9%. if you ask an airline right now, they will give you a different answer. tom: lax just starting to creep down a little bit. i am watching that everyday. it is out there and cabana said in his note, every shot has a different view on this coming slowdown. we will have to see. the watching target -- watching target with some good perspective. right now, this is a joy. -- achieve a common -- chief economist about the monahan. i want to talk abo

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalistsnd analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery. shery: still ahead, apple workers have voted to join a union, as workers across the tax base come together to demand fair pay and labor rates. a discussion on that later. but first, hear why then and there maitre from bny mellon has been turning more defensive, end where he sees opportunities in china. this is bloomberg. >> inflation is happening everywhere now. moreover inflation is from demand, and we have tools to deal with demand. our tools are blunt, but they are the right tools to deal with broad, good demand. our intent is to bring inflation down to 2%. inflation back down to 2%. it is unconditional, our commitment is. that path has gotten more and more challenging thanks to the effects on oil prices and food prices. people do expect inflation to come down to levels that are consistent with our price stability mandate. without that, we will not have a sustained period of maximum employment. paul

global news 24 hours a day on air and on bloomberg quicktake. d by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. anna: thanks very much for that. this is a special edition of "bloomberg markets," a public holiday over in the united states. we got european equity markets in action, tepid risk appetite this morning. natural gas prices still very elevated, linked to what we've been hearing from laura, the flow of gas from russia still only 40% of what it would normally be this time of year and that is having a positive impact on natural gas prices, although raising big concerns about what happens into the winter. other prices weighed down by concerns about growth in china. bitcoin around that 20,000 mark. bitcoin has struggled to hold above that $20,000 level. michael sailor spoke to bloomberg's emily chang on friday about his view of bitcoin. >> the bottom line is the bitcoin strategy is 10x better than any alternative so no, i don't regret it. we've got $2.8 billion worth of bitcoin on the balance sheet rig

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: still ahead, an exclusive interview with australia's chief scientist. we will talk about the future of quantum computing and other waves of emerging technology. up next, more on the economic outlook for east asia and the pacific. this is bloomberg. ♪ >> many countries will have a hard time or avoiding a recession. it's not a global recession yet. the downside risk is it could be a global recession. one of the key variables is whether supplies come back online to add growth and slowdown the inflation rate. but this is the sharpest slowdown in 80 years. haidi: the world bank president there. let's get more of those forecasts and bring in our global economics and policy editor kathleen hays with our next guest. kathleen: standing by with this is ayhan kose, the lead author on a world economic outlook report that did have these rather substantial revisions. great to have you here. as we look at stagflation, high

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists andsts in over 120 countries. i'm vonnie quinn. this is bloomberg. haidi: coming up next, g7 nations are set to announce new measures against russian energy. also ditching a pledge to end fossil fuel financing. we discuss that next this is bloomberg. ♪ kathleen: the were in ukraine dominated the g7 summit again as leaders meant for a second day of talks. president zelenskyy spoke by video link and said he wants the were to be over by the end of the year. with us now is sara meger, international relations lecture at the university of melbourne. glad we can join us, expressing unity in support of ukraine as it faces off with russia, this has so many aspects to it. how strong do you sense is the cohesion and commitment to doing whatever it takes, including more and bigger weapons to get this war over and to make sure that russia leaves ukraine intact? >> as you say, i think unity is a key issue on the agenda for this g7 meeting and leading into the nato summit later this week. i think all th

global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. kathleen: we speak with carmen to get her thoughts on a possible recession as she prepares to leave her influential role as the or senior vice president and chief economist. -- as the senior vice president and chief economist. investors battle volatility. this is bloomberg. ♪ >> this is the moment that feels it has been 12 years in the making. >> look at technology companies, the large majority will survive it. the question is do they have the strategy to thrive afterwords? >> it is clear right now the market is going to award real companies to build real things and make real earnings. >> we are going to have to be more discerning. >> the place of opportunity today that we are quite focused on continues to be cybersecurity. >> technology sectors are essential businesses. essential markets. government, perhaps travel. >> the future of work continues to be a place of great opportunity. >> a lot of companies will be absorbed and will disappear. at the

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journaliststs in more than 120 countries. i vonnie quinn. this is bloomberg. -- i am vonnie quinn. this is bloomberg. shery: china's defense minister said china's behavior needs to be re-examined, calling its aggression worrying. fighter jets enforcing sanctions on north korea. anita spoke with us at the shangri-la dialogue in singapore. >> we have to step back and examine china's behavior writ large concerning behavior in diplomatic relations, concerning behavior in terms of intellectual property, in cyberspace as well as in actual airspace, in terms of coming close to our planes that are monitoring you intentions regarding north korea. these are all very worrisome and concerning behaviors. >> president biden said that the u.s. will help to defend taiwan should china attack taiwan. would canada come to taiwan's defense? >> canada has a very strong relationship with taiwan in terms of trade, in terms of a large chinese diaspora in canada itself to canada will continue to build those relationships

global news 24 hours a day, on air and on "bloomberg quicktake." an 2,700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> i think you've got to be moderate about what we know about this inflation process. i fear that it is going to get worse. we may get to 9% at this rate. tom: 9% inflation. are you ready for that in the united states of america? maybe we will see chat on that in euro this week. we welcome all of you on radio and television. lisa, it coin cannot find a bid. down to lowe's at under 24,000. lisa: we didn't get to a good quote this morning. tom: i am asking for a friend, lisa. [laughter] lisa: i think it is fascinating to see the froth taken out of the market, that warren buffett quote, when the tide rolls back. tom: they came to me and said, do you want to do the crypto show? my people told him, that would probably not be a good idea. kailey leinz doing a crypto show, how big are the wakes this week? kailey: tuesday, 1:00 p.m. matt miller have been joking -- and i have been joking for we

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. shery: coming up, j.p. morgan says the risks of a u.s. recession are increasing. we will discuss that and the rba upcoming decision with a global market strategist. plus, we are live at a sustainability event. haslinda is on the ground. >> business leaders are gathered to discuss how to accelerate action to achieve net zero. we will be speaking with the energy futures initiative and [indiscernible] be sure to catch those conversations here. this is bloomberg. ♪ >> in 2020, we were carrying 3.5 million people. by april, 11,000 people. huge drop. it was really challenging. the first thing is cash. we were burning cash. >> with global central banks stepping up the pace, that is a reflection of the increased global inflation pressures trickling to australia. haidi: let's take a look across how aussie assets are trading. steady as she goes. markets are pretty evenly split. we heard from ubs saying it's a phenomenal

global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> gets hurricane. it's kind of sunny and things are doing fine and everyone thinks we can handle this and that hurricane is right out there down the road coming our way, we just don't know if it's superstorm sandy. jonathan: jamie dimon making some headlines. what did you make of that yesterday? tom: magnitude is the issue and economics is a great divide when they start talking magnitude stop he gives you the magnitude of the hurt and but one of the issues for chairman powell is you don't have a hurricane and what you get is a longer-term inflation stop if you don't get the cathartic recession, we get inflation which crushes the middle class. jonathan: why don't we say there are storm clouds brewing? tom: i give great credit to lisa for interviewing brian moynihan to talk about the banking business. the ceos want to go macro. jonathan: i think that was a subtle dig. jamie dimon concluded about what he's doing at the bank and the challe

global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analystsn more than 120 countries. this is bloomberg. ♪ >> in life, the progress remade together, we have agreed to support finland and sweden joining nato. what we get is the opposite of what he demanded that was for nato to close its doors. jonathan: the nato secretary of general, good morning, equity futures are down by about 2/10 of 1%, no big action here. crude is at $112. let's go back to the announcement from the president of the united states with a range of initiatives to military presence across europe. tom: i think big barely describes it. they supported the allied commander of nato. i take issue come i think the tape is showing us a lot particularly off tomorrow's economic data. we have a weaker yen in the last 24 hours. jonathan: we will hear from jerome powell later this morning. then data friday, the ism manufacturing. that will set the tone for a long weekend. jonathan: stoltenberg with extraordinary comments over the weekend. maria todeo and anne-marie hordern join us now. in

global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. >> russia is solely responsible for the food crisis despite the kremlin habit of lying and disinformation. we will do everything we can to help solve these challenge. jonathan: that's the president of the european council. from new york city this morning, good morning. equity futures are negative 6/10 of 1% on the s&p 500. a little bit lighter lower negative. tom: brent comes back but i'm looking at a week yen which is extraordinary on japanese yen. we go to 10 downing street right now on a view of the future for the prime minister of the united kingdom. i want to cut to the chase which of the former leader of the conservative party hugely respected, william hague, writing in the times of london that this is an honorable thing to do

global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. i'm su keenan. this is bloomberg. shery: still ahead, why the opec outlook -- output hike is a victory. coming up next, our next guest says the u.s. has no control over china and russia and investors should only revisit the data after the summer. that's just ahead. this is bloomberg. ♪ >> this is among if not the most complex dynamic environment i have ever seen in my career. we have been through lots of cycles. the confluence of the number of shocks to the system to me is unprecedented. now there's is greater recognition that inflation is not transitory. it is probably with us for a number of years. it is a type of inflation that we don't believe the federal reserve has the policy or tools to do much with it right now and i am not blaming the federal reserve for where we are right now. i believe most of the problems we are living with today are policy generated and supply generated. haidi: some influential voice

global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> when you think about it from a trading perspective, what has been missing the entire last several months is what i would call a cathartic flush out where you get the vix above 40 which is one of the things you need for a trading bottom. this week is fraught with peril. tom: the interview of the day yesterday day. they make it clear that ed hyman is looking for a settling of inflation at a 4% level which is a different statistic and adamant they don't see a recession out there. before we get to our correspondent in washington, the vix revisiting 21 and sterling is that $1.21. lisa: it's breaking down to the lowest level since the heart of the pan them in. i was watching futures bouncing around and trying to get a bid and trying to regain and it's not that active today. there is a lack of conviction where people are trying to retrace some of their moves but it's not a wholesale buy signal. tom: brent crude is up. in washington, and mar

global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalistsnalysts in more than 120 countries. this is bloomberg. manus: thank you. we are going to jump in a little more detail. we break it down on the wealth management side. we see ongoing deleveraging. that is key to the story. dani: it is notable they are talking about asia-pacific as well. we were just discussing china about what would make you drop back in. credit suisse customers are not will when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom.

global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> i think i was wrong about the path inflation would take. there were unanticipated and large shocks to the economy that boosted energy and food prices. jonathan: credit to janet yellen, the one person in the administration with the me a call but on inflation. good morning, futures look like this. someone is saying i was wrong. tom: there is a not enough of this and she is a first-rate academic in economics and rule number one in academics is when you get a wrong, study why. i'm sure she and others around her are really thinking of how they got transitory wrong. i'm going to cut them some major slack stop there was a small matter of a pandemic. jonathan: some people got it right and they were ignored by this administration. tom: yes. i think there were people including mr. dudley who will join us later that did that are at this guesstimate. we will touch on this in a moment but right now, we need to go to anne-marie or dern -- porter a

global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. ♪ >> we've already had i and you have no idea how bad the announcement was friday. there might be an initial selloff on a 100 paces points, i think there would be a subsequent rally because the fed is finally getting aggressive. tom: the pundits are out in force on the mathematics we will look at tomorrow afternoon at the federal reserve. we will ignore a lot of that punditry and guesstimates. what matters is what the vice chairman and governors and president assad around that table. there are other tables in washington with lots going on with the resident in washington and anne-marie joins us now. it's really clear, things that have changed, this malaise at the white house. to find what you see from that evoke camera perch you have near lafayette park. anne-marie: we saw the administration wanted to make a concerted effort to talk more at least on policy communication about the economy. they are getting hit hard in the polls about the ec

global news, 24 hours a day, on air, and on bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn, this is bloomberg. yvonne: still ahead on bloomberg markets: asia, we take a look at how china's demand for ev batteries is dealing with men -- fueling lithium markets. rishaad: cmc things another 75 basis point interest rate hike may not happen. calvin long -- kelvin long joining us to discuss that strategy. this is bloomberg. ♪ yvonne: you continue to see equities altering when it comes to this stock rally. we are getting into the quarter end, the dollar is softer and yields are mixed, but picking up which led to the selloff which led to this rally taking a pause. i can't talk today. rishaad: it happens. [laughter] let's bring in kelvin wong, thank you for joining us, you are at reckoning on not a 75 basis point hike coming out of it then in july. -- out of the fed in july. saying this is down to the bullwhip effect, and that would mean essentially that a lot of consumers will not be able

global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> it's going to be very important to make sure that if we are going to go through a period of pain, we do slay the inflation dragon. jonathan: from new york city this morning, good morning. big week of gains behind us. we add to them this morning. tom: it's as if the weekend didn't exist. there was a quiet as people reset for the end of the corridor. let's get right to it. the g-7 meeting with maria tadeo. and annmarie hordern. i think it's so important there's a war in ukraine to me this is a g-7 overwhelmed by domestic realities. macron, biden and the rest absolutely overwhelmed by the politics of each nation. >> i'm going to push back on that a little because when you go to a gathering like the g-7, there's always this unspoken rule that your domestic issues, you leave them aside. there's a lot of issues for everyone here. macron had about election two weeks ago. boris goes from scandal to scandal and we know t

global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2,700 journalistsnd analysts in more than 120 countries. i kriti gupta. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >> the type of inflation that i do not believe the federal reserve has the policy and tools to do much with it right now. i'm not blaming the federal reserve for where we are but i believe most of the problems we live with our policy generated more than supply generated. jonathan: a fascinating conversation. futures this morning, negative six or seven tencer 1%. nasdaq down. we are down by around three or 4%. tom: some of said, that is a story that has been pushed aside. i

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. haidi: still ahead, why are be see capital markets thinks a rate hike on tuesday is a done deal. the only question is how far the central bank will move. but next, julie biel gives a look ahead when it comes to friday's u.s. cpi print and whether these price pressures have yet to peak. this is bloomberg. ♪ shery: u.s. futures not doing much at the open right now. this of course after a choppy session. s&p 500 pricing only .3%. let's discuss the latest with our next guest who says we could see a meaningful destruction of margins for retailers. with us now is julie biel, senior research analyst at kayne anderson rudnick. it is always good to have you with us. tell us a little about why do you see this demand destruction. is it supply, the excess inventories we could see in the next few months, or just because inflationary pressures are now continuing to really pressure these companies? julie: what i worry is it is ac

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm su keenan. this is bloomberg. shery: coming up, or exclusive interview with the ceo of morgan stanley australia as the bank holds its summit in sydney. we will discuss the new direction under the government and why aussie equities are becoming the furred destination for wall street strategist. just ahead, bond yields sore as rates are raised by 50%. this is bloomberg. ♪ haidi: more than 50 central banks around the world, including the fed, taking aggressive action to combat inflation. you can see half of those 50 have moved by half a point. australia is just the latest to join this 50 basis point rate hike club falling after the most aggressive moves by the central bank in about 10 years. let's get some look at what we see from the rba. i'm joined by the head of australian strategy and economics. what a timely day to be talking about this. the issue is where do we go from here? you look at the market reaction and there seems to be a lack of con

global news 24 hours a day on air and on bloomberg quicktake powered by more than 2700 journalists and analysts in over 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> we are seeing price increases beyond energy unfolding elsewhere in the economy. we discussed how to mitigate the economic and social facts especially on the most vulnerable of our societies. this starts with being adequately prepared to deal with potential for the disruptions in deliveries of russian gas to europe. jonathan: these leaders have a big problem. that was ursula von der leyen and good morning. the equity really that continues building. -- rally that continues building. we are positive just .2% and we are backed right away from the highs of the year so far. tom: interesting to see, i must admit the isn which i never paid attention to. it's going to be fascinating. jonathan: pmi's were not impressive last week. tom: it's going to be interesting to see. here's what we are going to do over a weekend of emotion for americans. it's difficult to calibrate the importance of the decisions plural of the suprem

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm vonnie quinn. this is bloomberg. paul? paul: still to come, our guest joins us as we assess the fallout between the tussle between china and the u.s.. investors brace for more pain after the shock u.s. inflation number. this is bloomberg. ♪ >> we see inflation continuing to rake havoc. >> certainly the drivers of inflation. >> broadening and deepening out. >> everyone knows inflation is going sticky. >> inflation will be stickier at a much higher level. >> more clarity from the fed is what is needed for the equity markets. >> there is more work to do. >> more work to do in the coming weeks and months. >> rates will go significantly higher. >> above 3.5%. >> between 50 and 75 basis points. >> can the fed pause in september? we know the answer is no. >> i don't think anybody thinks we are going to get out of this without interest rates being significantly higher than they are right now. paul: some of our guests reacting to the blowout u.s. inf

global news 24 hours a day and on bloomberg quicktake powered by 100 journalists and analysts. bloomberg. tom? tim: juliette saly in singapore. thank you. come up, european nations confronting the possibility of keeping their economies running without gas. we discuss this story next. this is bloomberg. ♪ >> ukraine belongs to the european family, a milestone on its preconditioned-rich past is a company. the e.u. candidates will be discussing this next days. we know it needs unanimity. at the european council i will push for a unit find council. germany is in favor of ukraine. >> i will push for a message of our visit that italy wants ukraine in the european union. i wants ukraine to have candidate status and it will back this position in the next european council meeting. >> we will stand by you describe support it in the european perspective as we agreed at the precise summit this is what we reiterated to president officer lens cut dain: hearing from the leaders who are backing ukraine's candidacy to become a member of the european union. they pledged their support after travel

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. >> still ahead, why global advisors think central banks need to pay more attention to the risks facilitated with the global tightening tsunami. . first, vincent reinhart tells us why the u.s. central bank guidance is less reliable after hiking 75 basis points instead of 50. he joins us next. this is bloomberg. ♪ >> we are committed to returning inflation to our 2% active. inflation has surprised to the upside. some indicators have risen and projections for inflation have been rising notably. in response to these developments, the committee decided a larger increase in the target range was warranted. today's 75 basis point increase is an unusually large one and i do not expect moves of the size to be common. either a 50 or 75 basis point increase seems likely at our next meeting. >> jerome powell speaking after the fomc decision. let's begin our global economics and policy editor with our next guest. kathleen: 20 us now is vin

global news 24 hours a day on air and on bloomberg quicktake. erg. ♪ >> inflation is being driven by energy. these oil prices are going to be at $120 a barrel or higher. tom: good morning. the national economist at wells fargo barely describes the brilliance of the conversation yesterday. he was absolutely dead on. matthew miller in for jon ferro today on this most important inflation day. less than two hours away from can i say the most important report we have seen in ages? lisa: this is key to see the deceleration everyone is expecting and the underlying nonenergy and nonfood components. are they really decelerating in terms of how much prices are rising or are we starting to see ongoing strength at the prospect of stickier inflation? tom: i cannot say enough about her book, it is a window into the layers of the family. the heritage of the family. most important, the new family. i guess mr. biden will visit riyadh. it is not formally announced yet, but there it is. when he visits, can there be a belief that saudi arabia can adjust the price of

so they are open to -- global news 24 hours a day on air and on bloomberg quicktake. is is bloomberg. ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. >> i don't want to hear anymore of these lies about reckless spending. we are changing people's lives. and because of the fact this year, we are delivering the biggest drop in deficit in the history of the united states of america. jonathan: president biden speaking with firm words. tip for you, if you spend 10 times as much last year and then spend just five times as much the year before this year, a drop in the deficit, and then you can say your saving money. lisa: are you trying to give some advice to the white house? i'm going to present a financial statement of the family tonight. jonathan: just a slightly narrower, smaller when the next year. you can see biggest drop in the deficit ever. pretty angry president biden the last couple of days. u

global news 24 hours a day on air and on bloomberg quicktake.owered by more than 2700 journalists and analysts in more than 120 countries. >> one of the big reasons why the price of gas is so high in the united states is that were winery margins have hit historic levels. we need industry and the government to work together here to try to get more's bike to the market. tom: the director of the national economic council talking about a gallon of gas, front and center. we are doing more data checks, idly over the last 45 minutes. futures, -85, a little better. weaker currencies against the stronger dollar. as brian yates was talking about, a gallon of gas is an entire other story. i have been remiss on this, which is natural gas. no one talks about the price of a gallon of natural gas, do they? >> outside of the u.s. i'm sure people have concerns about high price of natural gas. u.s. national gas has gone up multiple times. the strong demand coupled with the production growth has gone up with the u.s. price as well. >> you're so good at fundamental

global news 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2700 journalists analysts in more than 120 countries. this is bloomberg. dani: thanks so much. coming up, u.s. senate has passed its biggest uncontrolled bill in three decades. just as the supreme court strikes down the need for a special reason to carry a gun outdoors in new york. this is bloomberg. ♪ dani: welcome back. to the u.s., where the senate passed its most broad-based gun reform in three decades last month -- last night. it will help secure schools. it passed by wide margin in the upper house. as to pass the house of representatives before the present signs into law. becomes comes in date the supreme court struck down a new york law this is people need a special need to carry a gun public. a lot of confusion when it comes to where the u.s. stands on guns and safety. where are we at this point? >> it was a definite mixed bag for advocates of gun safety in the u.s.. the senate did pass the legislation on a bipartisan basis. this is the first significant gun legislation in decades in the u.s..

global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. today's challenges require real insights, to get to tomorrow's opportunities. ( ♪♪ ) what can we expect in the coming year? this has been a record- shattering year for m&a. five trillion dollars in deal value. and we're still very bullish on the deal market for 2022. in this kind of climate, what are you advising clients to focus on? we really think companies need to elevate their risk management processes and also scenario planning. what's your outlook, kim, for the 2022 labor market? organizations really do need to take a pivot on their lens of their people and talent from a cost center to make that a value creation center. for key insights into what matters today and what lies ahead for business, this is real time business with ey. >> at these levels you really start to see the pain threshold. i think that is the target you are looking at, 125, 130 is when you see demand destruction start to kick in. jonathan

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists d analysts in more than 120 countries. this is bloomberg. ♪ how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world. >> inflation is undesirably high and is projected to stay that way for some time to come. in july, we intend to raise our rates for the first time in 11 years. jonathan: the first thing i read this morning. that was president lagarde, calling challenges for monetary policy in a rapidly changing world. this is bloomberg surveillance with tom keene, lisa abramowicz, and jonathan ferro. muted price action on euro-dollar. the bond market yield is a

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists d analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ >> what is true in the united states is true in every country. trickle down economics does not work. our close friends who share our values, we can make sure we are not left vulnerable with unexpected shops while generating economic opportunity for people in our region. jonathan: president biden at the summit of the americas in new york city this morning. equity futures look like this going into the ecb and onto u.s. cpi tomorrow. futures positive, yields going nowhere at 0.2% and euro-dollar unchanged, going nowhere into this decision later. 1.0 719. tom: you can call it resilience is welcome at the pulling back, watching foreign-exchange genetics off a press conference we will see this morning -- afternoon. from amsterdam, jeff fitzpatrick joins is in washington. to those of you in america, it is still light -- it is lite. joining us as the ecb discovers heritage, maria, this is not t heir ecb. this is chri

global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi: hong kong's outgoing chief executive carrie lam says hotel and teens have heard the city's status as a financial habit, and she says the government could have prevented elderly covid deaths with a stronger vaccination drive. however, she refused to apologize. >> if you look at the past two years, before the fifth wave hit us, for a period, hong kong was ranked the world's number one in terms of normalcy. that is when other countries and places were imposing the stay-at-home permits and lockdowns and closed their airports and so on. we were, by and large normally. but since the fifth wave hit us, and it hit us very hard, particularly in terms of the number of deaths -- >> we went from 300 to 9300 deaths. >> we had to be extremely cautious. at the same time, because of the trust visibility of omicron and the mildness of this virus while other places were opening up. by comparison -- i am a person who b

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global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. haidi: still ahead, why the risk of recession is real but not high as the fed [indiscernible] first, jay powell signals a big interest rate move next month. this is bloomberg. ♪ >> we are committed to returning inflation to our 2% objective. inflation has surprised to the upside. some indicators have risen and projections for inflation have been rising notably. in response, a committee decided a larger increase was wanted at today's -- warranted at today's meeting. today's increase is an unusually large one and i do not expect moves of this size to be common. from the perspective of today, a 50 or 75 basis point increase seems most likely at our next meeting. >> jerome powell speaking after the fomc decision. let's bring out our editor who is standing by with our next guest. kathleen: 20 us now, jeff lacker, former president of the federal reserve bank of richmond. it looks like a historic fed day. looks more aggressive. is t

global news, 24 hours a day and on bloomberg quicktake, powered by more than 2700 journalists and analystsn more than 120 countries. this is bloomberg. ♪ >> there are dislocations in the market. the banking sector will accept that stuff they are trying to get higher inflation. they don't want to pull the plug early. any reversal on this, it's anyone's guess. kriti: this is bloomberg markets and we welcome our world war -- our worldwide audience. let's dive into the yen story. it's becoming a fight between hedge funds, shorting the bank of japan has some worrying dislocations. this is a scary situation the concept of shorting jcb's is that the market will ultimately break. >> especially after last week, the doj doubled down on their new policy. were going to make a u-turn and they didn't so now we have the japanese yen at $19.90 low against the u.s. dollar. it's interesting to see because we have a generally more risk on sentiment today in the market but the fundamentals right now are against the yen. the boj is keeping rates pins to the floor and other global central banks are fighting rat

global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalistsin more than 120 countries. i'm ritika gupta. this is bloomberg. this... is the planning effect. this is how it feels to have a dedicated fidelity advisor looking at your full financial picture. this is what it's like to have a comprehensive wealth plan with tax-smart investing strategies designed to help you keep more of what you earn. and set aside more for things like healthcare, or whatever comes down the road. this is "the planning effect" from fidelity. >> the economy is already slowing. 50 basis points may not be doable if we move into the fourth quarter or later into the third quarter. they can resort to balance sheet reduction at a faster pace which will provide upward pressure to the longer and, or at least provide a floor to longer rates. jonathan: this is bloomberg surveillance. tom kene, jonathan ferro, lisa abramowicz. futures positive on the 2/10. 2.87.85. bill dudley on with this this morning. the fed is mild inflation forecast and need explaining. tom: it is a brillian

global news 24 hours a day on air and on "bloomberg quicktake." wered by more than 2700 journalists and analysts in over 120 countries. i am ritika gupta. this is bloomberg. ♪ >> if you are going to do 75, do it sooner rather than later when policy is at a low interest rate. but it also goes to tech. it lost control of the dialogue over this. they need a monetary policy approach. tom: chief economist and investment strategist, wonderful at linking earnings and profits into the greater picture. we digress. futures up a fragile 12 after yesterday's festivities. vix 33.68. 3.33% on the two-year, 3.3 4%. [laughter] lisa: they are all the same. they are flat. tom: the yield curve is flat. lisa: you did great. when you look at the 310s or 530s -- tom: james camp joins as at eagle asset management who has been dead on about higher yields. do you just assume the verbiage of a terminal rate moves higher in that flat yield curve we described goes 3.32%, 3.34%, 3.34% and that migrates up to 4%? james: i think interest rates are going to find footing around th

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. haidi? haidi: still ahead, a straw you is facing its biggest power crash in decades. for the public to conserve gas and electricity supplies. more a little bit later. but first, a chief economist says a perfect storm is making a big pull for policymakers to calibrate plans. we will look at that next. this is bloomberg. ♪ >> the committee decided that a larger increase at the target range was wanted at today's meeting. >> we always felt it was necessary to increase, looking at our inflation forecast, it clearly shows that inflation is now higher. >> if we do see greater evidence that higher inflation is becoming embedded, then, you know, that will be the trigger. >> the calibration of this rate increase will depend on the updated medium-term inflation outlook. >> if we raise the yield ceiling, we would expect to see larger yield drive above 2.5%, and that when weaken the effect of monetary easing, so we are not

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am vonnie quinn. this is bloomberg. shery: russia has defaulted on or in that for the first time since 1918. su keenan has the latest. i know this is largely symbolic, but it is still the first time since the repudiation, more than a century ago. su : it's a big deal historically and legally. russia is saying it has enough money but because of the increasingly harsh sanctions imposed, it's unable to actually do so. that's why we have the russian finance minister saying whatever label you want to put on it you can put on it, but he said anyone who understands the situation knows this is in no way a default. that is a quote from the finance minister. however you view the situation, it is a grim milestone in the country's transformation into an economic, financial and political outcast. bonds have traded at distressed levels since the start of march, the bank foreign reserves remain frozen, it's been cut off from the global financial system. it's

global news 24 hours a day, on-air, and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. >> this is a of voelker-esque type of fat where they are focused on getting inflation down and they are not going to throw away 40 years of credibility. they will not throw that away just because the markets are telling them. jonathan: he is not constructed on this equity market. we will hear from jay powell in about 40 minutes time. futures up a third of a percent on the s&p. downside surprise on german cpi relative to what we expected yesterday. once we got the regional breakdown, it was longer than expected. 3.14 the 10-year. i was reading through those remarks from loretta mester, really interesting stuff. this is a massive change at the fed and they are working through it in real time. the current challenging situation have contributed to inflation being at 40 year highs calls into question the conventional view that monetary policy should always work through shocks. in some cases, it would require poli

global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists d analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> is there a risk we would go too far? certainly there is a risk. but i would not agree it is the biggest risk to the economy. the biggest mistake to make, let us put it that way, would be to fail to have price stability. jonathan: if you think we are in the clear, you have not been listening. that was chair powell of the federal reserve. new york city, but morning. tutors positive 1.3%, nasdaq 100 down across the board. three point 0537% -- 3.0537%. russia confirmed it would -- in the black sea, the decision would facilitate grain exports from ukraine. that sounds like good news but we want follow-through and positive outcomes. tom: from julie yesterday, this is out of odessa in the west toward romania. on through the mediterranean and maybe tunisia and egypt as an example. i know eric martin is focused on egypt. we are focused on the president of the united states. he will speak in madrid, maria tadeo in

global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta, this is bloomberg. ♪ >> we expect to raise the key interest rates in september and in the medium-term inflation outlook persists and deteriorates, larger increment will be appropriate at the september meeting. if the inflation outlook does not improve we will have sufficient information to move faster. jonathan: that was the ecb president, really important point in that speech earlier this morning. you will hear from her again tomorrow with governor bailey and chairman powell. francine lacqua will guide us through the coverage. like the ecb's version of jackson hole. over the last few years, the ramped that up. >> but not paper driven. it's a lot more about the debate of the moment where jackson hole, there's a difference there. jonathan: i think our audience will want to hear some of these headlines pray allies send weapons to ukraine so they can defend, not attack. it does not favor listing russia as a state sponsor of terror. o

global news 24 hours a day, on air and on "bloomberg quicktake." wered by more than 2,700 journalists and analysts in more than 120 countries. i am ritika gupta. this is bloomberg. ♪ >> what worries me, you are not going to like this, the month print will be worse. i think those who boldly said inflation is coming down may have to change their mind. tom: mohamed l area and -- el-erian, talking about the past forward on an inflation report. joe mathieu returns after a discussion in the last hour of the january 6 hearings we saw last night. joe, i want to take the chairman of the hearings, thompson of mississippi, and take it to the inflation report. we are hugely skewed, the three zip codes in new york, two zip codes in washington. mr. thompson of bolton, mississippi, west of jackson, mississippi, is looking at rents will up and up, $600 a month, outrageous. explain for our fancy audience, the outrage of your washington over inflation moving from what appears to be a very low price, and up substantially. >> imagine coming from a town of roughly 500 p