the boe balance fades, but global bond rally continues as stocks fade. fiscal futures and treasuries declining. the u.k. government steps up efforts to build confidence after its mini-budget, the pound rebounds. porsche defies market gloom as it revs up for the biggest european market ipo in a decade. we had some hot regional german inflation, that made us concentrate on the higher inflation and lower risk story. futures are down .3% for the dax. markets are just opening, some of those reversals from yesterday starting to fade. a lot of it was stop-losses to the bearish side. that allowed things like commodities to do better yesterday. today we don't have that catalyst of the boe stepping in and buying long end bonds. u.k. markets down .6%. to that point, we are getting breaking figures on prelim cpi for spain, it is 9.3%, the estimate had been 10%. hotter in germany but not as hot in spain. but the direction is risk off yet again. france opening up down .4%. it is the dollar strength story that is coming back. we had dollar weakness yesterday and that a

treasury has been holding weekly meetings with the boe.h those meetings, we had a hike from the boe yesterday of just 50. are we perhaps overestimating the stomach for the central bank and the rest of the nbc2 get aggressive? vasileios: that is definitely a risk. we have to understand the peculiarities of the u.k. markets. the housing market is a large part of the economy. unlike the u.s. and many other european countries, the market is dominated either by variable rates for by 2-5-year fixed rate mortgages. every time you have a large part of the population buying at a higher rate. imagine what this means if you go from a 2.5% fixed rate mortgage of right to a five or 7% mortgage which is the terminal rate. we may have to do that because of inflationary pressure. again, i think we should take into account that this is going to be a very fragile economy. dani: if the u.k. government's aim is growth, that mortgage headache seems counterproductive to this aim of growth with debt servicing costs moving to the highest on record. it is somethin

themos: it's clear the boe needs to step in. the main problem for the pound is expectations have now risen a lot. the risk is they may not deliver as much as is priced and that would put extra weight on the pound until the bank of england delivers what it needs to basically. francine: themos, what kind of extra pressure on the pound, what's the lowest sterling could go to before boe needs to act? themos: i think they need to act, or they have already come under the spotlight where they need to act. how much more could the pound move? if you generally expect the pound itself to adjust, the current account or balance of payments by itself, academic literature tells you exchange rate moves need to be very large. you need a very large moves to trigger the adjustments required. if the bank of england doesn't deliver the rate tightening to control the economy, the current account deficit, then obviously the pound will have pretty chunky moves. tom: these u.k. 10 year currently above 4% for the first time since 2010, are we seeing the

let's give the boe some credit. they stepped in to alleviate huge swings we were seeing in gilts, but beyond that they were saving pension funds with exposures that were starting to look very fragile indeed. they were saving the savers as well, which they were there to prop up the entire financial system. how close we came to something that could have been much more damaging and systemic. we don't know yet but it looks like it was time for people to get particularly worried. with that kind of revelation, you can only see that volatility will remain for the time being. dani: at the end of the day, the boe are the lender of last resort, it doesn't seem fair that a consequence of finding fair value should be allowing pensions to blow up. the biden administration is alarmed over market turmoil triggered by the u.k. government's economic plan. they are seeking to encourage liz truss's team to dial back tax cuts. joining us now is bloomberg starfield reynolds -- bloomberg's garfield reynolds. janet yellen kind of saying w

for more, we are joined by lizzy burden outside the boe for us today. 50 or 75, what is the boe going to be doing today? lizzy: i have to say, economists are not as hawkish as mark. they see only a half-point, i say only, it would be the biggest back-to-back increase since black wednesday. the reason they see only a half-point is because of all the week data -- weak data, may have had time to digest that because the meeting was delayed because of the sad news of the queens passing. but they also reckon liz truss' energy bailout will soften the long-term low if inflation. you might see that in the inflation forecast. officials will hit they see inflation weakening lower than the 13% they have seen in october. the flip side with the budget we are expecting tomorrow is they can necessitate so much borrowing, that the bank of england today puts the brakes on active quantitative tightening because officials have previously said they are not going to sell gilts in a time of market turmoil. we are watching the exchange of letters between the chancellor kwasi kwarteng and andrew bailey as to

dani: coming up, it is boe day.ll preview the central banks rate decision as the pressure mounts after a hawkish fed and an ever weaker sterling. more on that next. this is bloomberg. ♪ dani: welcome back to bloomberg daybreak: europe. i'm dani burger in london. the bank of england is set to raise interest rates today and start selling assets that it will double during the decade-long stimulus program. it is a historic tightening of monetary policy designed to clamp down on soaring u.k. inflation. let's get to lizzy burden monitoring the boe rate decision for us. what is it going to be today? >> markets reckon it is going to be 75 basis points. economists only see 50. even if it were 50, that would be the biggest back hike since black wednesday. economists reckon liz trusts energy bailout will soften the blow of inflation in the short term. but you could also see if bank of england officials agree with that, you could see it reflected in a new inflation forecast. they have seen inflation peaking at 13%. the flipside

i don't think the boe needs to hike that high.hink the inflationary impact of this plan is unlikely to be that much. i think what is happening is markets are demanding an extremely high risk premium and pricing that in because the credibility of the happening in, the government, the bank of england right now is in question. the boe had an opportunity before the budget was announced to preempt this move and hike more aggressively. they didn't do that, they are postponing their assessment until november. that is getting the markets nervous. they need to come out in november with an aggressive hike. if they do that i think they can reduce the curve and reduce the overall market pricing. i think the option the bank of england at this point has is the least painful. dani: ok, if they cannot hike as much, they try to reduce the risk premium, is there an element that yields need to be high to attract foreign buyers? it feels like they break that chain of trying to find clear value in the bond market. sonali: i agree, this is not the only

you see the calming effects of really the boe -- the boe surprising unlimited bond buying.ly restoring some semblance of debility. the question is how long that stability can be sustained for. we are seeing that broader equity rally hereafter the stronger day for u.s. equities since early august, and we see a lot of those gains particularly when it comes the of the australian session by the rebound in energy and materials. let's get you a closer look at what we are watching in the markets. it is nice to be able to talk about a rising market after all this time. >> that's right, definitely. still lower. i don't want to pour cold water but i'm looking at the reaction we are seeing in currency market. we are starting to see the pound pulling back a little bit this morning. traders think the underlying fundamentals, unfortunately had a really change, so we do see more downside pressure for that country moving forward. in terms of other regions watching all areas, intervention from central-bank and authorities, really the order of the day across asia. taking a look at what's hap

and it was exactly what boeing wanted. >> a recreational cleanup, which is what boeing is pushing, iss. they live in residential areas. >> all through the 2000s, there was an effort to require full cleanup. then, state senator sheila, who represented the area, introduced a bill after bill. >> workers, the neighbors, have become sick, and too many have died. it's time to require full and complete cleanup. i ask for your high vote on s b 9.90. >> in 2007, she finally got her legislation through. >> i believe it or not, under arnold schwarzenegger, there was an actual serious effort to clean up that site. but after the governor came to office, things shifted very dramatically. >> boeing however went to court over turning the law, and so exceedingly troubling action by the administration that the lawsuit was lost. within five weeks of jerry brown being sworn in in 2011, the secret stipulation was interlinked between the state and boeing in that lawsuit. >> the state of california actually stipulated that they would not contest any material fact that boeing would put forward in the suit. a

(sophie fouron) terje boe. direct descendant of the vikings that settled in the lofoten islands hundreds of years ago. passionate about his ancestors, culture and history, he's one of the few captains still able to sell an authentic viking ship, and these are his islands. (terje boe) in december, it's darker. you cannot see the sun, so when january is coming and the sun returns, everybody is very glad. the midnight sun starts on the 23rd of may and it goes to the 23rd of july. some people believe that it's another sun. it's the same sun. it is the same sun, but it's not going down in the sea. in lofoten now, we have three pillars: we have fisheries, we have farming and we have tourism. all this time, fishing has been the most important. before you can go out on the sea, you have to be educated. you have to go to school to learn how to be a fisherman. then, you are around 16 years old, you are finished with normal school, which is 10 years. then, you can go to high school. here, there are two of them. there's hi

thursday, the boe. we will focus on the u.k. friday. but is -- it is putin with a rare public address pushing to the front of the agenda leading to further risk off moves. bonds bid, equities lower, the spanish ibex down, in france losses of 50 points. in the u.k., the ftse 100 to down as the prime minister says she is prepared to be unpopular as we look ahead to tax cut measures potentially friday. let's see how things are playing out cross-asset. the fed in focus, down .3% on s&p futures. euro back well below parity at .98, the currency down .7%. putin has a role to play in that. u.s. two years, 3.94, coming off the level yesterday, bonds bid across the curve this morning in the risk off move. i want to highlight gold, getting a bid amid geopolitical risks, up .4%. dani: hard-pressed right now to find any sector in the green. negativity, down .5% on the stoxx 600. you are finding a few in safe haven sectors, telcos solidly in the green. staples, this is a sector that if you are concerned, you want to flee to. but overall, it is down.

you are talking about the boe as well.oe under pressure to go higher as well despite concerns about plunging the economy into a deep recession. kristine: it is an interesting time for the boe and that meeting was declined because -- delayed because of the queen's funeral, but even now at this point in time, it is even more interesting because we have seen the ecb deliver that jumbo rate hike. the fed potentially delivering that jumbo rate hike before the boe will meet, so they will be under pressure to follow suit. the markets expecting multiples of a rate hike from them by the end of this year and you can see the pressure. and the other side of the story is that they are having to manage and economy going through a cost-of-living crisis, an energy crisis playing into the wintertime. it is a tough job to be managing the inflation side of it while also looking at dismal growth numbers. tom: 75 from the ecb as well given the moves we saw a couple of weeks ago? kristine: the big question is whether policymakers will allude to

wei: it is difficult compared to the u.k., boe, with the situation in the u.s.nd ecb because of the politics going on in the u.k. a lot of the central-bank narratives has been somewhat poisoned by the political developments, it is a bit of a noise. everything else being equal, being blunt about the trade-off between growth and inflation. and being clear that in order to fight inflation, we are looking at deep recession, that would be helpful in managing market expectation. and on the business side, it is hard to compare the boe and ecb because of the politics. tom: does the ecb narcos only five? -- now go 75? wei: that is our expectation, at some point, it will be clear the cost of hiking rates on the labor market and also on the economy. our base case in the euro area is recession this year and recession in the u.s. next year? francine: not a rosy picture. wei li, global asset strategist at blackrock joining us with some calls. we have more on europe's energy crisis, and the eu ways special measures to rein in energy costs. this is bloomberg. ♪ >> nobody should

i wondered why, because if a boeing crashes on earth?even if he flew almost vertically into the ground from a height of 2-3 and 5.000 m , then people couldn’t just evaporate when they hit the ground. it looks like no hollywood rising with voting on board. in fact, there were not too many and indicates that the passenger airliner was shot down by a us military aircraft to prevent an attack on the most holy white house or the congress building. but these details will come up much later, and then on the evening of september 11, george bush finally addresses the nation. today our citizens our way of life our very freedom has been attacked in a series of deliberate and deadly terrorist attacks victims were on planes or in their offices secretaries, businessmen and women military federal employees mom and dad friends and neighbors thousands of lives were suddenly cut short by vicious dastardly acts picture planes flying into the building of burning fires, collapsed huge buildings filled us with disbelief, terrible sadness and with quiet, unwav

. >> do you see more big magnitude moves for the boe? >> boe is in a tricky situation.t has to deal with the currency, so the reaction on currency overnight we are heading to levels we have not seen in a while. also in the u.k., we need to get a bit more color in terms of what the government is going to do from a fiscal perspective. are they looking to be very generous, we need to see how generous and how that's going to play out. boe, likely to see more out of the bank of england. we'll have to see and they will adapt also to the new government. this is only just coming. >> a little bit of delay over the past few weeks. great to have you here. you can get a roundup of the stories you need to know to get your day going on daybreak. subscribers can get it on the terminal. this is bloomberg. ♪ >> ceos of the largest u.s. banks have wrapped up a second day of testimony in congress. talking about overdraft fees and network scams moving toward reduced emissions. what jumped out at you and -- and what was a myriad of issues covered? >> one certainty that was going to come of

david: yeah, the boe is interesting. if they did not hike a 75 basis points, they did 50, and you saw sterling selloff quickly afterwards. it recovered because of dollar weakness, but it is under pressure, 113, and the risks are not looking good, consumer confidence data came out in the u.k. today, another record low, not good. there are the twin deficits, the budget deficit, the current account deficit, and fears of inflation, even with the new energy bill, boe says inflation needs to be 11%, which is still negative real yield terms for sterling so not good all around at the moment. our bias towards it is in the midterm against the dollar. david: thank you. still related to that. mark cranfield joining us from our team. mark: that is the question of the day. evolutionary inheritance. be on the lookout for danger and fear. we can help it. 4% to how quickly do we get there? the answer is coming so far and suggested by the end of the year, and based speaking on the program and he thought up at the end weeks, so obviously a

markets will have to wait six weeks until that boe decision. it is a move into gilt following what we saw from u.s. treasuries , after the route that we saw yesterday. we have a move of 16 basis points lower for the two year. some money is moving back into u.k. debt this morning. francine: for more, we are joined by jane foley, head of fx strategy at rabobank, as well as bloomberg's kristine aquino. the panic that we saw, are we looking forward to the coming days? kristine: there is the feeling for today but the question is how well the stability can last. as we were seeing earlier, it is far from calm and markets at the moment encompass the likes of the bank of england does not reassure the investors over the future of the pound and the u.k. gilt market. that sort of nervousness is flowing across the rest of the risk complex. interesting comments as well from larry sommer on twitter last night, pointing out that the pound is a reserve currency of sorts, so the likes of the moves that we saw yesterday should be worrying institutions like the im

boeing is paying $200 million to settle sec allegations with the 777 max. it involves whether they withheld information about a software system linked to two crashes. fedex is cutting flights, differing projects and closing offices. the carrier is seeking savings to tackle slowing demand and a titer labor market. it is planning to raise shipping rates after lower-than-expected preliminary results. a chinese battery maker, catl, is considering a third european plant. it will start production in germany later this year, and recently announced plans for a plant in hungary. the ceo says a third plant depends on the economic crisis. tom: wall street bosses prepared to bring down bonuses, marking the end of boom times. this is bloomberg. ♪ tom: welcome back to the open. we are 21 minutes into the european trading day. losses of .4% across the benchmark, futures stateside also pointing lower. it is action in the currency markets this morning that is again the focus of our attention. the bloomberg dollar index at a 20 year high and the euro at a 20 year low. curren

should the boe have gone 75? martin: it's up to the members of the committee to come to their own choice. had i been a member i would've voted for 75 rather than 50. of course of 53 split suggests a rather awkward position. in which case the governor would've had to provide the casting vote. guy: you do wonder whether there front running going to that 75 basis point decision next time around. we've a fiscal event which was talked about moments ago. do think the bank is waiting to see all of the details and get a full understanding of what exactly the fiscal side of the equation will look like before it makes the decision for 75. alix: unless the bank of it -- martin: unless the bank of england knows that no interest rate decrease would be needed in november than if they'd gone 75 now they could've always had the lower in november to upset -- reset that. i assume they'll will -- they will of been briefed by the treasury. they will be providing a full forecast in the policy report. perhaps some members did see that

more active sales coming from the boe.ally, euro versus suisse is pretty steady after the biggest fall since 2015 despite s&p finally hiking despite negative rates. it is only erased two or three weeks of losses. a lot of skepticism of how long it can hold. not too much action this morning. japan is off-line. the other big development, italy is going to the polls. the energy crunch and a possible recession. let's get out to francine lacqua in rome. how are we set up going into the selection? -- this election? francine: the markets are expecting a right wing coalition. we could take a few days going into the polls. it looks like there could be a leader of the next government. a little bit and a lot. we know that she was extreme right wing in her youth. we know she is becoming a moderate politician. many see it as two faces, she will state the right things to some of the investors, to brussels. she wants to renegotiate. she wants to keep debt under control but the concern is that when she speaks to her public, the italians t

alix: we will talk more about the boe at the moment, but how does the boe look at this? they will say we are independent, i get that, but there is so much from the government that affects how they will manage when it hit of tightening and rate hikes. --manage quantitative tightening and rate hikes. rosalind: that will be a very interesting conversation, to say the least. the boe will say they are independent. there was some talk in the leadership campaign for the tory party that liz truss might be willing to re-examine the boe's mandate, because she think they are to it fixated on inflation. --two fixated on inflation. those comments from her will be parsed when they meet this week. the boe will operate on what it thinks is best for the economy. they think this will push growth faster than they thought, maybe 75 basis points on the table. guy: ros, when does the truss government pivot to try to please the tory faithful to trying to please the country? rosalind, well, that is going to be the balancing act for her. she will have a little bit of goodwill, she will have a li

especially given the wingspan of the boeing and the full tanks of fuel, if we look at the footage that showed the public, and media footage well, what do we see, but i can't imagine how a former fireman rescuer can imagine that a boeing of this size with a wingspan flew into the pentagon and left such a small inlet , in a direct collision everything is solid. and where the engine on the sides should have been demolished and try to go to echelon to crash into the building there.

the boe helping calm the markets. even despite the fact we have hawkish rhetoric. the 10 year yield is falling below the 4% level, falling from the 2010 high. the two-year yield is easing. the bloomberg dollar index is easing a little bit. this as we had more support earlier in the session coming from a white house official talking about countries not going to an agreement in order to counter the greenback strength. that led to a little bit of strength and the bloomberg dollar index is falling for the first time in days. haidi: let's get back to the bank of england staging a dramatic intervention to stave off an imminent crash by pledging unlimited purchases. for more, let's bring in a columnist. you have a crisis in the bond markets. a much bigger worry to you than a crisis in the currency market. does this fix the issue? what does it say about credibility? reporter: it fixes a specific and vital issue which could have brought the entire world markets into prices, large numbers of u.k. pension funds were required by legislation to do liability matching, buying lot

where is the boe? what should they be doing? charles: it has a very difficult problems. one of the difficulties is if the bank should raise interest rates quite sharply in order to strengthen the pound it would not resolve the underlying problems we have in this country , which is fiscal policy is going in one direction, expansionary, and monetary policies going in another direction, restrictive. having to make two policies coexist in completely opposite directions is a recipe for an absolute crash. there are only two alternatives. one is you forget the trade rate and show it goes lower to provide more opportunities, and the bank of england one way or the other not to raise interest rates. and you go to growth and it is a huge gamble. the other alternative is to recognize that your expansionary fiscal policy is the wrong policy at the wrong time. i do not see liz truss and kwasi kwarteng doing that. essentially we make it a short-term rise in interest rates, but consider what happens if interest rates go up even more. that is bound to lead to a degree to recession, tax r

the boeing ceo have not admitted or denied the findings.8 billion to a southern china airlines unit. they will purchase jets for delivery between 2024 and 2027. the agreement is a blow to boeing and comes after airbus faced a 7 billion deal for the same jets from four chinese airlines in july. meta platforms has been sued for skirting apple privacy rules. in the proposed class action lawsuit filed in san francisco federal court, two facebook users claim the company had a secret workaround to apple's 2021 by -- 2021 privacy rules, violating rules on collection of personal data. >> take a look at how equity markets are trading on this friday, on this final friday session. you can really sympathize with traders feeling a little bit short of energy after what's been a massive week of central-bank decisions as well as huge implications for currency markets and bond markets as well. the kospi, down 1%. coming under similar pressure we saw of course with trading in the u.s. overnight. the nasdaq 100, now trading 35% cheaper compared to where it wa

here we are now with the boe in korea and others easing financial conditions.s a pretty complicated time. it's a moving piece and it's a muddled picture to look at. the bottom line is saying, we have no holiday -- option. rishaad: this is quite confusing. it must be difficult to be a central banker in this span. they were meant to start qt next week and it's quite the opposite now. >> it is a confusing time for policymakers. if you look at what's going on in the u.k. for example, we have the government using fiscal policy. the central bank tightening. within that mix, and -- the central bank intervening in the bond market like we are seeing in korea. some banks are having traction. the pboc has calmed down this morning. bank of japan had some success stabilizing leanne last week. with fundamentals where they are, this intervention can only last so long. david: we talked about the bond market. there's also talk about the stabilization plan. can you help us understand what that's about and how much of that goes into the equity market , and also what they've been

calls mount for a hawkish response by the boe. stocks and futures sink and yields -- as pessimism steepened. italy is most right-wing government since world war ii. it is monday and we are on flash crash watch. sterling tumbling following more than 4% in the span of just 20 minutes. talking on the sunday shows about more tax cuts to come. that is combining with the thin liquidity hours of asia trading. we just cut to a black screen but perhaps that is effective of the sentiment on sterling. this move right here in the early hours of trading, low liquidity, we move 4.5% to a record low. sterling has bounced back ever so slightly to 1.054, but this is the lowest since 1985, dangerously close to record low levels yet again. it is all about the twin deficits and concern over the government. this is not just a dollar strength story. it is a sterling that has fallen virtually against every currency so far this morning. euro versus pound is higher by 2.3%. will we get euro sterling parity? that would be a change even versus the lira the

she says the treasury and the boe are part of it. her name for the economic orthodoxy.lames the boe for the inflation crisis and said -- all in all, it's a lot of policies that are not individually called but put them together and you can see markets already. dani: do we have any idea of what that would look like? lizzy: she co-authored a book with him in 2012, promoting deregulation and free markets. it would be the first time there is such alignment on that since david cameron and george osborne's partnership. it might be outside pressures. you can see jacob, the brexit opportunities minister in the treasury and john redwood, head of the downing street policy unit. the big question really is what will rishi sunak do? will he join the cabinet or will they even have him back? dani: thank you so much. you have a busy weekend and started the week next week. lizzy burden giving us the latest on the u.k. leadership race. let's get to the first word news. she is here this time. juliette saly in singapore. juliette: i am here. a team of u.n. inspectors will remain there until

i don't think the boe has panic yet.riti: looking at the bloomberg dollar index, just getting higher and higher, and there is a functional terminal here where you can do what specifically is driving the dollar. you would think with the pound weakness today, it will be the pound, but it is actually the euro. at what point does that dollar trade reverse? >> it's going to be a long time, in my view. you think about how this is likely to evolve over the next six months to nine months, given the energy crisis in the u.k. and europe, given the relative strength of the u.s. consumer. even if the u.s. falls into a recession, i would say the u.k. and europe are going to fall into a deeper recession. u.s. stability continues to really drive the dollar higher in our view. it is really probably going to take either a substantial fed pivot or coordinated intervention across the g7. to me, that is a prospect that is very far off at this point, given the fed, as guy alluded to a few and it's ago, is still on the side of wanting a stron

the real story behind the anti semitism crisis and gulf britain's navy path airline manufacturer, boeing will pay $200000000.00 to settle charges from the securities and exchange commission. yes, authorities say the company misled investors about the 737 max plane. boeing didn't admit any wrongdoing as part of the settlement. the fleet was grounded for 20 months after 2 fatal crashes that killed $346.00 p. ah. so this is our desert, these are the top stories and hundreds of protesters have been detained across russia after president vladimir putin. and as a partial military mobilization on wednesday, one way tickets out of the country of sold out and traffic has surged at the finish in georgia in border crossings. the secretary of state is urge the un security council to send a clear message to russia over its invasion of ukraine and its threats to use nuclear weapons and in a blink and describe moscow's language as a reckless saying, it must stop. it must be asked, how has this aggression against view crane by president putin improve the lives or prospects of a single russian citizen? o

. >>> boeing must pay $200 million to settle a safety investigation, and so far so good when it comestened workweek in the uk. dan lieberman has those stories and more in the cbs "money watch" report. >> reporter: as investors remain on edge following this week's latest fed rate hike, stocks spent thursday in the red, and that's where they closed. the dow was down 107. the nasdaq lost 153. the s&p 500 dropped 31 points. >>> airline maker boeing will pay $200 million to settle charges it misled investors and the public about the safety of its 737 max jets that crashed twice, killing 346 people. the securities and exchange commission says boeing and the former ceo knew that an automated flight system posed a safety issue but still promised the public it was safe. >>> is former president trump coming back to facebook? the social media platform suspended him after the january 6th insurrection, but meta, the parent company, says it may lift the ban this january but will consult experts and weigh risks for public harm before making a final decision. >>> and in the uk, more than 70 companies

how is the business of the boe different this week from last week? what does it mean for them to have been delayed and after this period of mourning? lizzy: now the bank of england can take full account of all of the economic data that came out last week. we saw inflation slightly drop but the labor market is still tight. growth was underwhelming. the inflationary impact weighing on retail sales so they can have all of that in mind as well as the emergency energy bailout being announced. i would also add the importance of the nhs announcement because you've got these long waiting lists and they could be partly contributing to why so many people are missing from the workforce, which is part of the reason why the labor market is so tight. it's not just a health announcement, it is also an economic one. a big week for the truss government to get on the front foot because they've been in suspended animation because of this shocking surprise of the queen's death. dani: it's been likened to a storm that liz truss will return to after the period of mourning

boeing reaching a settlement with the 737 max phil lebeau is joining us. this is one more fine against the company. >> one more fine it is one more case where boeing is almost done with all of the litigation involving the 737 max. this is the settlement with the s.e.c. for boeing and former ceo. here is what was agreed to and announced late yesterday by the s.e.c. boeing and the muilenburg neither deny or admit about the safety and certification process. boeing will pay $200 million muilenburg will pay $1 million the chair of the s.e.c., gary gensler said they misled investors about the safety of the max despite knowing about serious safety concerns. 346 people died in two 737 max crashes in 2018 and 2019 boeing paid $2.5 billion already to settle the doj criminal investigation into the 737 max look at the shares of boeing you have to remember we are going all the way back to 2018 with this chart to show you the impact that the max crashes and investigation and everything that happened. it was grounded for 20 months, guys it wasn't until 2020, late in 2020

his manifestation of that was 100 basis points worth of hikes from the boe.ou think that is realistic? samuel: i think 50 basis points the going rate for the next couple of meetings. i do not see the need to escalate that. the high inflation outlook is entirely due to the shock we are seeing from higher energy prices , and if the government is able to hold the energy prices steady i think we could see a 2% rate of inflation by the end of 2023 comeback at their clear disinflation pressures now. markets are shipping costs down. oil included. at that point there is a favorable underlined abutment for inflation as we go through 2023. if the government intervene successfully, then we could really put pressure on the boe to go with the rapid pace of tightening. joe: -- dani: you write in your notes that you see in early 2023 recession as your base case. perhaps this is a distinction without a difference, but what you make of an andrew bailey pointing to one at the end of this year? samuel: andrew bailey will make his forecast on the basis of current government poli

in 201820198 securities and exchange commission says boeing, new of ongoing safety issues after the 1st crash in indonesia, but kept them from investors insisting the 737 max jets was safe to fly. now a miserable friday has talked a tough week on us markets a week that saw the fed high interest rates by 75 basis points. let's cross over to our financial correspondent to new york young's quarter and get a bit more on this. and the s and p $500.00 is as low as point for a year. during the course of friday. i mean, what's eating investors in the moment? and the da jones industrial leverage dropped through the crucial 30000 point mark enough to accomplish it to last more than 5 percent of the value in the course of the week. i mean, clearly it's all about inflation, how the federal reserve and other central banks around the globe fight it so that this might eventually lead to a global recession. so that's pretty much the mixture that we're seeing at the moment. and it's not just stocks that have been down here on a friday. and during the week, oil prices, for example, in new york had droppe

they will tell us themselves united states new york on september 11, 2001 at exactly 8:46 am, a boeinged the north tower of the world trade center. usa george w. bush is in florida today in his schedule visit to a local school. i remember that we had to get up very early to come to school and i remember that i went out and everything looked. like in a movie, as bely's press secretary will tell later at home oriflation, that morning you will, as always, go for a morning run, then get acquainted with the documents prepared for him and at exactly 8:30 his cortege left for the planned school visit. yes, the disaster remained 16 minutes a few minutes later, when the cortege drove up to the school. i received a message from brian. bravo from the white house, in which he warned me that the plane crashed into the twin towers. bush enters the school building and talks to the head teacher. at this moment, the assistant tells him in new york something terrible happened. he was told, and i was standing right behind him, that a small twin-engine turboprop aircraft. it seems to have crashed into one

in 20182019 e securities and exchange commission says boeing, new of ongoing safety issues after the 1st crash in indonesia, but kept them from investors insisting the 737 max jets was safe to fly. now a miserable friday has talked a tough week on u. s. market so week that saw the fed high interest rates by 75 basis points. let's cross over to our financial corresponding to new york. he ends quarter and get a bit more on this ends. the s and p $500.00 is as low as point for a year. during the course of friday. i mean, what's eating investors in the moment and the johns industrial leverage dropped through the crucial 30000 point mark the nasty composite to last more than 5 percent of the value in the course of the week. i mean, clearly it's all about inflation. how the federal reserve and other central banks around the globe fight it so that this might eventually lead to a global recession. so that's pretty much the mixture that we're seeing at the moment. and it's not just stocks that have been down here on a friday. and during the week, oil prices, for example, in new york had dropp

phil, big deal for boeing? is the market starting to pick up how do you read there?'s definitely the way to read it, sara. the market for widebody planes has been subdued international travel remains the one part of the airline business that is most depressed relative to 2019 levels china, you can't get in there from a lot of places around the world. europe is a bit better transatlantic travel is improving. transpacific is dicey at best. once you see the markets improve, eel seeing them make orders they want to start replenishing their supply of widebody aircraft >>> it's down 33%, one of the bottom performers, along with cisco. so how does the stock look here? >> on a three-year base, it's that much worse. look, it's at the bottom end of this range, nothing would keep it from going back above 15, i think there's a theme emerging, because the defend stocks have done so well, it does in and out account for a pretty good share of the overall company valuations there's a bit of a curb there. with all the debt the company was forced to take on, it doesn't necessarily loo

get in and out with dia. ♪ >>> like most of the market, shares of boeing taking a hit this week.to move brand-new planes that have been sitting idle which could help boost cash flow give us a little good news here. >> brian, this involves 737 maxes that has been parked for a couple of years. they continue production even though the plane was grounded by the faa and about 100 of those are scheduled to be delivered to chinese airlines we know the state of relations between the u.s. and china when it comes to trade. they're not going anywhere any time soon. yesterday the company's cfo said we have deferred decisions on those planes for a long time we can't defer that decision forever. so we will begin to remarket some of those planes, remarket meaning selling those planes, that were otherwise earmarked for our chinese customers. keep in mind that boeing is producing the 737 max at about 31 per month they're seeing strong demand dave calhoun did say they're experiencing supply chain challenges as you take a look at shares of boeing, keep in mind, they have not delivered a max to chin

i applaud the boe.ecause it seems to me they knew they were in a precarious position with the housing market, with business. by the way, retirees, pensioners, at what level do you think our bond yields would have to go before maybe the fed would consider blinking? >> yeah. i calculated that our s&p 500 would decline roughly five percentage points for every quarter-point move to the upside in the 10-year treasury yield and so it wouldn't take much. i think another ten percentage points to the downside, call it 4.25, something like that a little higher than that i think it starts to get concerning for the fed. charles: so in the meantime i'm calling our federal reserve the house of dragon every time they open their mouth, nothing but fire comes out. it is all scorched earth. it is doing a great job for them. it is doing the work they want to do but by the same token we could be losing faith in them. there is not a lot of credibility with the whole debacle of transitory. could they go too far, with again,

the boe is behind the curve. the benefits not brexit itself, it's not optimal.ncoming trust government has fiscal policy conflicting with the objective trying to get inflation down. the bank of england will have to look at jumbo rate rises. the bank of england is behind the curve. the currency is a symptom of >> going on. it has been complicated. fiscal policy is trying to pull the economy and an opposite direction. they had to the deficit, and to the borrowing. shery: bloomberg are calling it a crisis of confidence. we're seeing liquidity thinning in the u.s. government space. guest: liquidity issues can exasperate would otherwise be perhaps the moves would not be no doubt here, policy mismanagement. liquidity is the icing on the cake. brexit is being mismanaged. the boe is having trouble containing inflation when it's had problems articulating and liquidity has not helped. let's get away, this is been a mismanaged policy to the mismanaged response. it doesn't seem that convincing. market uncertainty and fundamental policy mismanagement. shery: does that mean a

the foundation said yesterday this could be the -- the boe thinks a recession is on the way , seeing two years of no economic growth. anna: a lot of economic challenges facing the new prime minister. if liz trust is -- >> she prefers tax cuts over what she calls handouts. she does acknowledge the need for some direct support. when rishi sunak was chancellor, the imf claimed is premature physical consolidation for some of the risks and the u.k.. she says her tasks cuts would benefit the u.k.. sue nack says all this borrowing -- sunac says it could never -- they could no longer rely on the kindness of strangers to fund its debt. the bank of england saying it could be -- if you look at the pound, they performed worse than 132 of 150 top currencies since johnson's resignation. the other worrying thing for markets is the economic orthodoxy at the treasury and be elite. she blames the boe per inflation and wants to change its mandate so all of the policies not really radical in isolation, but when you put them together, you can see the concern in markets. anna: lizzy burden here market --

there is debate about who is up to task to save the pound, is it the boe? is the u.k. treasury going to have to retract the fiscal plan? in asia where you are seeing the fallout, it continues to be the yen and the renminbi. it raises a question about, are we getting a with of some crisis that is brewing? when you have the renminbi tumbling though it has against the dollar in recent months, these are two pillars in the region. if they fall, what does it mean for emfx? does it mean continued pain? and central banks -- can central banks stall? david: nobody would blame you, if you look at the levels of some of these currencies, the malaysian ringgit is back to the levels of the great financial crisis. it's not covid-related to mean that we are in a financial crisis, but are we at levels where it is getting economically destructive? here is how the dollar story has played out. almost exactly one month ago was jackson hole. lo and behold, every single currency but the russian ruble has declined and weakened against king dollar. rishaad: global head of fx analysis at citi is

it is boeing what are you doing with it >> i'm not sure i like what i'm associated with.ope i'm associated with other things as well but boeing will play out it is just taking a long time. dom, i sold some nvidia, i sold the position in nvidia several weeks ago. i had some cash on the sidelines. boeing has had a lot of good news coming out recently the second quarter earnings report better than expected and 787s are being delivered again, have is very important for free cash flow. it is now back down 156, 157 so i'm adding to a position i believe in, and which is has gone down. if you believe in a position and it goes down, that's a great opportunity to get it on sale. there are some catalysts to look for to coming up the big one, the big one is china recertification. but that may not be the first one to come. what i'm really hoping for is congressional approval to extend the deadline for certification of the 737 max dash ten, the biggest version of that plane and the one the airlines want the most congress really should approve that extension of the deadline there is a l

they motivate action from the boe. i think you're supposed to really set back and first observe equity prices are lower so the entry point is better. we really don't know what is going to happen. but we obviously see there is a lot more in the market. doing nothing, but would reflect. you're supposed to do you risk the equity portfolio and move up in quality, i think you are supposed to take a look at holding powder trains -- pattern trades. this is not about place to be. at the end of the day, financial dysfunction it's bad enough the fed will have to do this. every bank, boe has some rolling stability. tom: there is a choice in my hand. 2008 as we look at all of these dynamics, you did the same thing. you just said this comes over to central bank policy and theory. back then it was 84 standard deviation move. yesterday we had a seven standard deviation move on u.k. guilt. it is not enough to move chairman powell to amend and adjust the dialogue and the policy? dean: i don't think yet. but moving to the back of the yi

it is a continuation of boeing evading accountability and transparency." to see our interview with michael stumo, visit our website democracynow.org. and those are some of the headlines. this is democracy now!, democracynow.org, the war and peace report. i'm amy goodman. a prominent human rights group says some anti-war protesters arrested this week are being ordered to enlist in the russian military. more than 1300 people have been arrested taking part in protests after president vladimir putin announced a partial military mobilization to draft 300,000 new troops to fight in ukraine. according to the group ovd-info, authorities threatened one protester with 10 years in jail if he refused to enlist. meanwhile, thousands of russian men are attempting to flee the country in order to avoid being drafted. many fear russia will actually conduct a full mobilization drafting men who have not ties to the military. we go now to moscow where were joined by anna dobrovolskaya. she worked as the executive director of the memorial human rights center in moscow, which w

this needs to be orderly and the boe has the attempt. in the u.s., investors are having the highest record levels of money on the fed so they are returning to safety and how this will all play out, how that will be put back into the books. it is hard to say at this point because after october, the bank of england looks at the soft data on bonds, but what happens after that? there needs to be more measures before october 14 and until then, it will be an uneasy period of calm. francine: at least there is relative, and others are interested. there is talk about companies going under, especially when you look at the smaller ones on the ftse trading. willem: i would say we are not in the ideal environment. when you look at the rates and so on, especially in the u.s. and asia, they fall as well. we have been sitting in the u.s. and today they said as well that even the u.k. households are sitting on moving down. there is good opposition here and they are much more vulnerable. we will look at trading within the u.k. markets, but i think the glo

the boe is can it be in the market until october 14. will it work until then. rupert: i'll give you two answers which the first one is i don't know. the second one if i had to give an answer my guess is yes it probably does work. pension schemes are able to get funds from anywhere else, from other places and that will help them real lever there schemes which means they won't be needing more sellers of index linked gilts and long dated normal as well. my guess is this will work. >> what would've happened if the bank had not stepped in? >> those players in ldi markets would have been forced to potentially sell more index linked bonds. somewhere along the lines, foreign investors, at some point would've looked at u.k. yields and said they are pretty attractive, a 10 year yields went above 5% on the global basis that's looking rather attractive. so other investors would've stepped in possibly before the bank of england and would've put yields lower. i think it was a well-timed intervention and i suspect it will ultimately work. alix: do we think the model of ldi pe