traders fully price and a peak boe rate of 6%. china's you want tumbled past the dollar level -- china's yuan tumbled past the dollar level. jerome powell semiannual report to congress. plus, the eu announces a security plan to avoid overreliance on china, potentially leading to some curbs on trade with beijing. francine: let's look at the futures, stocks are struggling a little bit. we have jay powell speaking later on. dax usurers are unchanged. the ftse 100 is about the inflation print, higher than inspected. we see a repricing on what the boe is expected to do tomorrow. tom: fourth straight month with inflation higher than expected, core inflation above 7.1%. the challenge being laid down for the bank of england amid the concerns about the mortgage market. we look at house builders before we check on gilt and the move on the front end could be pronounced. the ftse 100 down 0.4%. the outstanding index, the most pronounced. down 0.5%. the cac quarante off by 0.3%. there was a pop for the pound, closing in on 1.28 on expectations

he is seeking damages from boeing for use of its trade secrets.tral bank is expected to downgrade its decision. inflation has started to slide which might give authority some room to move. india's central bank started its three day meeting to deliver on monetary policy on tuesdays expected to make its announcement on thursday. experts are anticipating the rbi is likely to keep it at five points 6% and the main reason is inflation has been showing sides of cooling down. this has been a concern for a long time. inflation figures have been on the high side for a while. since may last year, lending rates have been hiked to keep inflation in check but that has now slowly cool down and in fact in the month of march, inflation figures were around five and 7% and at the moment inflation figures around 4.6 - 516%. it has moment inflation figures around 4.6 — 516%. it has always been a tight work to ensure growth does not suffer. —— 5—.1%. in a projected feed to be around 7% so it is on the high outside. --it so it is on the high outside. ——it was projected

a small colorado company is accusing boeing of a cover—up to generate company profit.is rife with an accuracy and they will vigorously defend against in court. is this case about? wilson aerospace said it was hired by boeing between 2014 and 16 to attack engines to an asset to return humans to the moon. but according to the complaint was filed in seattle, boeing terminated the contract and produced versions of its intellectual property that were not only flawed, but created safety risks but with the lives of astronauts at risks. david wilson, president and founder of wilson aerospace, describe those as beyond despicable. they are seeking damages from boeing for use of its trade secrets. �* ., , , , secrets. bashir fleury. fires in canada — secrets. bashir fleury. fires in canada have _ secrets. bashir fleury. fires in canada have caused - secrets. bashir fleury. fires| in canada have caused flights to be delayed after resulting in reduced ability new york and philadelphia. triggering health alarms and sending residents indoors. staying on aviation, the director general

sheila: we are very bullish on boeing. we think a story investors miss is the guidance is $10 million in 2025, 2026. we think that could go up to $12 billion or $15 billion by 2026 because of pricing on the 737 and 787. boeing is shipping aircraft from a parking lot from three years ago. those aircraft have half the pre-cash flow versus what they will ship in 2026. that is why you are seeing the airlines put in mega orders. they knew if do not get the slot in 2026, 2027 they will get at least 5% higher per year. boeing is getting tighter. that is the story than investors do not have yet. they view $10 billion as management target and we are above that. matt: thank you so much for your time. sheila: thank you. matt: sheila from jeffries talking to us about boeing, airbus, general electric and the paris air show. coming up, news of an all electric escalate from gm's general meeting as it chases tesla's market share. this is bloomberg. ♪ behind all the regret, disappointment, and years of battling opioid use disorder is the s

boeing, but a manufacturers. in the geopolitical situation, although it is hard to predict where that will go over time. in a couple of decades, it would be safe to say that they should have more of a footprint globally. in the near term, not so much. but maybe some smaller airlines in regions like africa that will have trouble getting airbus and boeing production slots, that we will see smaller deals in those regions. the paris airshow _ deals in those regions. the paris airshow comes - deals in those regions. the paris airshow comes as top figures in the world of artificial intelligence have recently warned that, if not properly managed, the technology could impact mankind. our reporter met up with one of the world's largest defence contractors and asked if those concerns are justified. i if those concerns are justified.— if those concerns are 'ustified. ~ . ., . justified. i think the concern isjustified, _ justified. i think the concern isjustified, but _ justified. i think the concern isjustified, but i _ ju

you went from the boe needs to cut to the boe needs a cap at 5% . marcus: i think they need to stop hiking so much. they have gotten themselves in a pickle. i hope they do steer away from what is essentially interest rate hedging from traders who have gotten themselves in a situation where they not had to head risk. i think 6% rates are visible. i don't think anyone believes they will get up there. people have to hedge the books. i think they will push back against these ridiculous front and pressing -- front end pricing. dani: just how bad does it get if they were to do 6%? probably won't, but how bad would it get? philip: bloomberg says you get to present session in the u.k. we were supposed to be in some deep recession, everybody got rid of those just in time for the risk of a big recession. the unemployment that will come with that, these huge mortgage rates, the new cost of giving -- cost-of-living crisis, those things are going to be headwinds for the bank of england to go forward with this, not to mention the political pressure. alix: let me

jack: let's switch to aerospace for boeing.seems to go on and on the dreamliner is a nightmare. >> another one of the series and manufacturing problems for boeing investors don't care that much. this is happened before for boeing to stop it's been strong and it hit a near high for the year in the reason the investors are looking out to 2025 and 2026. they figured manufacturing problems are good to be fixed this is boeing and airbus to nobodies going to challenge for another decade or two so basically they feel the profitability will return to boeing. jack: i hate to say it but it looks like airbus is well ahead. >> this is what they consider airbus lesser of a european consortium and a better balance sheet and narrowbody play and maybe a better value than boei boeing. >> let's switch over to the big clients for the company's. airline is doing very well i've been on a plane with an empty seat for a long time. >> planes are close to being full and delta can be a big beneficiary it's one of the best managed of the big airlines the

boeing denied any involvement in the design or build of the "titan."hey have also repeatedly -- this company also repeatedly cite the university of washington as being involved in this somehow, though they were sort of vague, but they used those names a lot. the university of washington has come forward and said we had nothing to do with the design or the testing of this. i think they rented out a pool from the university of washington, but the university of washington said none of their personnel were involved in that operation. do you think rush was overstating the company's ties to his company? >> i think so. i think he was exaggerating, from what you have read. there were connections, you know, with all these companies, but this was something that gave credibility "anand more or lesst concerns at arm's length. it made me feel certainly him saying those names did make me feel more confident that i could do the dive. >> reporter: the mission, the dive that you were on, did you actually end up going down and weren't able to reach the "titanic" or was

it's a slow long road to push your way into airbus and boeing have had for many years.ases we will probably see orders from the cherries two chinese barriers. —— western manufacturers. but obviously a little bit more difficult given the geopolitical up is hard to predict exactly where that will go. in a couple of decades i think it would be safe to say that they should have more of a footprint globally in the near term, not so much but may be some smaller airlines in regions like africa who will have trouble getting into the airbus and boeing production lines to get slots that you're more likely to see smaller deals in those regions. how smaller deals in those regions. are these global ch going how are these global changes going to impact its productivity moving forward? 50 productivity moving forward? so far productivity moving forward? sr far we haven't seen any impact on that. they do use a lot of western suppliers, they have the same engines as a seven max and hb 20 or similar engines, the same engine for the so far there hasn't been issues with that i think the com

it's a slow long road to push her way into airbus and boeing have had for many years.robably see orders from the cherries two chinese barriers. —— western manufacturers. but obviously a little bit more difficult given the geopolitical up is hard to predict exactly where that will go. in a couple of decades i think it would be safe to say that they should have more of a footprint globally in the near term, not so much but may be some smaller airlines in regions like africa who will have trouble getting into the airbus and boeing production lines to get slots you're more likely to see smaller deals in those regions.— those regions. the paris airshow— those regions. the paris airshow comes - those regions. the paris airshow comes as - those regions. the paris airshow comes as top i those regions. the paris - airshow comes as top figures in the world of artificial intelligence have recently warned that if not properly managed the technology could impact mankind. our reporter theo leggett met up with one of the worlds largest events contractors and asked if those concerns a

some seeing a peak of 6% rates from the boe.conomists reckon that would trigger a recession in the u.k.. they see a hike tomorrow, another in august, and a peak rate of 5%. our bloomberg opinion columnist says there should be a ceiling of 5% from the bank of england. you can talk about that at the water cooler. really it matters politically because rishi sunak's number one priority of course is halving inflation by the end of the year and the closer we get to general elections, arming costs matter more. dani: marcus got mad at me because i said if they put a ceiling on at the bond market is going to push back. he said how could you say something like that? >> marcus getting mad? dani: how rare. even if the bank of england is not as aggressive with rate hikes, where are you facing 6% mortgages in the u.k.? is the government going to do something? >> eye watering numbers and you have the labor party trying to pin it on the government. jeremy hunt has said he's going to meet banks to talk about what they can do to prevent repossess

you got some feedback, how are you pricing the boe now? charles: my view remains unchanged and that inflation is public enemy number one. inflation is a widely, and a strong, and a difficult enemy that we need to deal with. my concern is that we are behind the curve. tom: does that mean they go 50 today? they should and they could? charles: they should. tom: willow bay? -- willow bay? -- will they? tom: no they will not. --charles: no they will not. we are looking at 5%. we are seeing mortgage rates at around 6%. when we read office financials to statistics and we look at the inflation print yesterday, really disappointing. i find it very difficult to see any positive indicators there. cars are marginal for me. who declined -- food decline driven by cheese and eggs going down to 25%. that is the cost of living crisis. tom: worked is that leave you -- where does that leave you? is that what is needed to further break the back of the u.k.? charles: we need to dominate inflation. i think terminal rate is 6%. if you cast your mind back to the

please stay put, gentlemen we have breaking news on boeing's dream liner.e go to phil lebeau. >> look at shares of boeing which are moving after the company announced it will add inspections for 787 dream liners that are built but not yet delivered. those dream liners in inventory essentially. there may be an issue for the fitting for the horizontal stabilizer that is not in conformance with all safety regulations so they'll be doing additional inspections, boeing out a few minutes ago saying the company will be doing the inspections of 787 dream liners in part because they want to make sure before the aircraft are delivered they're in compliance with all safety regulations and if they are not in compliance, it may take a couple weeks per plane once they do those inspections to make the correction on the fitting. then they can ticket those aircraft and deliver those aircraft so for boeing, this is yet another case where it's not a flight safety issue. this is not a case they are grounding aircraft or completely halting deliveries, they're not even pausing d

time and still the question of expanding such defense industrial cooperation with such a giant as boeing, taking into account the fact that one way or another in the aviation segment we are just coming to those samples that we mentioned earlier , i will add to your information for the audience that 16 is today's lock and martin, the former source denis, and indeed f15 and yes f18 are airplanes now corporations were well, actually i will tell you, as they say, without pathos, that i was forced to leave dp antonov. precisely because, as it is now stated in some documents, as an american spy, i contributed to the opening of assembly production of aircraft in ukraine at first because it was such a seven. it was a training combat aircraft or a light fighter well, actually, it did not happen in the subsequent f15 plane, but i will remind you that both the state department of the united states of america and the boeing corporation actually responded back in 2019 to our request and that i personally took care of it, they responded literally for half a year and boeing received an initial export l

is that an option the boe should consider? guy: the boe has been pretty aggressive.n one of the charts i think you were showing earlier, the central bank had hiked rates the second-most in the cycle and i think they will continue to need to be aggressive. the question for me is more, as you say, with emerging markets, what typically dictates is the need to defend the currency. are we at that stage in the u.k.? could be potentially? maybe. i think it's the kind of dynamic between interest rates and the currency that will drive the central-bank decisions. and i think it will be tough. i think we will continue to see the bank of england being very tough. dani: guy, thank you so much. i want to quickly bring you some lines from the ecb, speaking to reuters, saying he sees rate hikes past july but then cuts when inflation under shoots the 2% target. obviously there are -- they are a ways away from that. the forecast doesn't show we will be getting to 2% anytime soon. don't miss our interview from the banking forum at 8:30 a.m. u.k. time. coming up, credit suisse has been

arises whether now is the time to expand such defense-industrial cooperation with such a giant as boeingsidering that one way or another in the aviation segment we are just coming to those samples that we mentioned earlier i will add to your information for the audience that 16 is today's bow and martin is the former genor denis and indeed f15 and yes f18 is airplanes are now corporations. well, actually, i will say that it is already without pathos, as they say, that i was forced to leave dp antonov precisely because, as it is now noted in some documents, an american spy contributed to the opening of assembly production of airplanes in ukraine first, because he and seven it was a training combat aircraft or a light fighter. well, in fact , it did not happen in the subsequent f15 aircraft, but i will remind you that the state department of the united states of america and the boeing corporation responded back in 2019 to our request and which i personally took care of it, they turned away literally in six months, boeing received an initial export license in order to supply the same kits t

what, are you the ceo of boeing? >> josh, calm man. i'm zen on boeing. elevators to lights. what if we use ai-driven insights to pinpoint inefficiency? yep. and act on it. saving energy, money... ... and emissions. yup. that's a big one. now you've built something better for everyone. that's the sustainability solution ibm and a global real estate company created. what will you create? ibm. let's create. at pnc bank, you can find us in big cities and small towns across the us, where our focus is to always support the people who live and work there. because you call these communities home, and we do too. pnc bank. power e*trade's award-winning trading app makes trading easier. with its customizable options chain, easy-to-use tools and paper trading to help sharpen your skills, you can stay on top of the market from wherever you are. e*trade from morgan stanley. power e*trade's easy-to-use tools make complex trading less complicated. custom scans help you find new trading opportunities, while an earnings tool helps you plan your trades and stay on top of t

it will be airbus and boeing. be order after order after order because of the strong demand. you also have to add into that the fact that many airlines are going to need new aircraft to meet their sustainability goals as well. basically they need airplanes, everybody needs them at the same time and everybody wants to get their place in line. can they secure the aircraft and deliver the sauce? it is the key question that will come out of paris. will they be able to get the airplanes? >> request sometime, there was a certain rigidity in aviation supply chains. our boeing and airbus going to be able to deliver on the demand you just described? >> probably not to be honest. this is still a heavily supply constrained history. boeing and airbus are really struggling with getting the people they need. there really struggling with the paths they need. -- parts they need. i am talking engines to overhead bins to seats to toilets on the aircraft. they are struggling to get just about everything. the question is how quickly

>> boe is in a difficult position.s a firm we are calling for 20 five basis point hike. 50 will not surprise anybody. the future path is unknown so the economic team looking at the run rate of core inflation for the u.k. early next year, we think it is 4%, which is high but it could be 4.5% and the risk is to the upside so really difficult challenge for the boe. the inflation problem is not under control. in addition to the other factors, there is brexit. 25 this week but probably more on the way. shery: what does this mean for emerging markets? >> typically negative. you can imagine why. rates going up and people say all right, it probably means the u.s. dollar and g10 currencies are doing well, we will send more capital that way but the interesting thing about this cycle is in terms of hiking policy, not so much last year but the year prior if you go back to 2020 one there was a lot of hiking but not much in developed markets but in the next year develop market central banks caught up so there has been a seesaw battl

the dow be a lot higher if it weren't for boeing. boeing is the biggest drag on the dow right now down about 2.5 %. you'll see we've paired it here with the stock of its major supplier spirit aerosystems which is tanking 9% now. spirit makes the fuselages for boeing's top selling jet the 737-max. so we now have that production at the spirit aerosystems plant suspended in wichita. that factory production area, not churning out any of the parts after employees voted this morning to strike. the union has rejected spirit's new four-year deal offer. the nasdaq though looks pretty healthy here. amazon is powering it, charging higher by 3.8% on the news that amazon web services will invest $100 million in generative a.i. innovation center where experts are going to help companies build bespoke a.i. solution customized a.i. programs for their own customers so we've thrown in apple which is up one and one-third percent to $186.48 very close to its record high of $186.99 so we're keeping an eye on amazon at the moment. regional banks getting h

but as boeing�*s chief strategy officer explained, challenges still remain.as been a _ challenges still remain. yes, it has been a great _ challenges still remain. yes, it has been a great year- challenges still remain. yes, it has been a great year andl challenges still remain. yes, i it has been a great year and we have done about 1,000 orders since the last year�*s show which shows our momentum. now it is about delivering those aeroplanes one at a time. so execution is the big focus. we are doing it at a moment in time when the industry is having to really recreate itself on the back side of that covid moment. where demand for air travel plummeted, down buying 92% at the worst moment. factories came to a standstill. and a lot of employees and factory workers were rolled over, turned over into different roles and positions. so now it is all coming back online, it�*s starting to come together. online, it's starting to come together-— online, it's starting to come together. but it is one thing for airlines _ together. but it is one thing for airlines to _ tog

request and which i personally took care of in this , they responded literally in six months and boeingved an initial export license in order to deliver the same kits to the assembly plant to ukraine, so i believe that it was extremely appropriate for the current political establishment to continue the already tormented thoughts of colleagues from the corporation to god regarding the planes 18 and 15, of course, to talk and plan the assembly of a light fighter of the seven or whatever it will be called already in usrfoss and it is also necessary to cooperate with the walking morting northernman corporation and other leading companies, well directly. now we are talking about the united states of america. i hmm with joy look at the fact that the cooperation with bayasystems is already starting - this is a british american corporation, well extraterrestrials ryan maple armored vehicles, but i still congratulate you . i would like to remind you that the creation of joint enterprises should take place. of the ukrainian defense-industrial complex and leading western corporations, so that it w

haidi: the boe will find itself higher this summer. not much choice when you see inflation at the rates that are four times as high but more than twice what we see in the u.s. at the moment. >> central bankers obviously make the argument that to do nothing would be worse. to allow prices to stay at very high levels would have a bigger corrosive effect on wages and living standards. the u.k. pain would be acute given the percentage of floating rate mortgages. but the bank of england seems to be behind the curve so they had to go with a jumbo rate hike and indication is they have more work to do. we cannot yet count out central bank rate hiking story as being over. shery: enda curran joining us from washington with the latest. also in washington, it the indian prime minister addressed a joint session of u.s. congress after stealing some defense and commercial deals. jodi schneider joins me here in new york. already addressing the u.s. congress. a big diplomatic deal. we also saw press conferences and prime minister modi taking questions.

now though, optimism is returning for the airline borders are back on track for them as boeings chiefd to the bbc, challenges still remain. it the bbc, challenges still remain. . , , . the bbc, challenges still remain. , ., ., remain. it has been a great ear remain. it has been a great year and — remain. it has been a great year and we _ remain. it has been a great year and we have _ remain. it has been a great year and we have done - remain. it has been a great i year and we have done about remain. it has been a great - year and we have done about a thousand orders since last years show. it shows that momentum. now it's about delivering those aeroplanes wanted a time. execution is the big focus. we're doing it at a moment in time with the whole industry is having to really recreate it self on the backside of that covid moment, where demand for air travel plummeted. down by 92% at our worst moment for the factories came to a standstill for the a lot of employees and factory workers were rolled over, turned over into different roles and positions. it's all coming back online it's got t

we like to see our friends at boeing be able to resume shipments in china if the blinken visit is theeginning of the transition, we would be fully supportive. >> reporter: if there was a thawing of relations and if you started to he is deliveries resume between boeing and china, that would further accelerate the market a red hot market already, guys, that will continue at least for the next several months well into 2024. >> phil, it is amazing to see how many markets are hot right now in the aviation space o i want to go back to the indigo deal the biggest order for jets in history. what does this isay about the market in india? how big of a market is this poised to be >> reporter: huge. i'm not sure it will capture the same size of traffic you will see in china, but it will be substantial compared to where it is right now this is an order that people will say 500 aircraft. will they put this in use? they will put them in use, but how quickly will they get them these deliveries will be spread out every years. if -- out over years if they pull back, they may change the delivery schedul

. >>> and crude's latest fortune the options action on that a major buzz kill for one of boeing's big-time suppliers, and why the slice sector is struggling why so many restaurant stocks are red hod. i'm courtney reagan in for melissa lee. this is "fast money," live from the nasdaq market site on the desk tonight, karen finer man, dan nathan, guy adami and our special guest tonight. we're going to start with an attempted rebound on wall street, at least after three straight days of losses. big tech and a.i. stocks helping the nasdaq rise nearly a percent today. first gain in a week the s&p managing to end in the green with amazon and fedex leading the way. the dow was the only index that was down today, just barely, though, still marked its fourth day of losses in a row let's look at the banks. lagging the broader market in a big way today. both the major bank index and the kre regional etf down around 3% lori, you've been on the road a lot talking to investors about regional banks what are they saying >> so, it's interesting. when i talked to small cap managers, value pms, people who know

we have the fed, the boe, another 50. it is not a good signifier for the markets. mark: it feels like there is new momentum in wanting to it address the inflation problem your has been a couple of big central bank hikes this week. we have seen the u.k. inflation data above forecast, even japan's data was above forecasts. eventually they will have to address it. most of the g10 is on the same page. there is more work to be done. that is the message they are signaling. markets are taking note of it. we are coming towards the end of june, the equity space it has been a good period. it's no wonder people want to be a little bit defensive. it will probably be more pain from short-term interest rates. rishaad: mark, with the yen, the 143 handle, this verbiage is not going anywhere. what is the thinking inside the boj? mark: in terms of the verbal intervention, it has not started aggressively. if you think back to next -- to last year, they had been more explicit. they started to up the ante, the rhetoric they were using was clear to traders that it was getting close to t

tune in. >> all right meantime, a buzz kill on boeing.efect on its 787 dreamliner the problem will delay the delivery of the planes the stock ended the day down around a buck and a half mike, it seems like one after the other in terms of reasons to delay. >> it is just a constant source of bad news, it seems, coming out of them. seems like every single time we kind of get something put into the background, something else emerges. obviously, the 787 dreamliner has had a slew of problems for a couple of years now, and then, of course, we had the big mess with the 737 max you know, it's -- right now, it's probably as carter likes to say, a pair of twos. i don't think there is a whole lot of good news built into this thing, because, i mean, we've sort of come to expect this at this stage >> yeah. tim? >> well, the free cash flow, the 787 has been one of the most free cash flow generative planes they make. the wide bodies a lot more so than the max this is a hit. but i -- i still think -- i'm just looking at the numbers here, the free cash flo

how do you think the boe is going to deal with this? it sure seems it is hard to get this right.onja: yes, i think valerie said earlier. is difficult situation because while the boe might want to talk down terminal rate expectations of almost 6%, there is risk here of suggesting to the markets that the boe is dropping the ball and that would result in higher yield surge. it is a tricky situation for the bank of england. if we are looking at what the market is expecting, the almost 6% terminal rate, one has to wonder about the economic damage that would do. i think hawkish speech yes. signaling, we are still there. i think going back to mega moves of 50 basis points as may be a bit of a tricky business at this stage in the cycle. i'm looking at 25 basis points but would i be surprised if one of the other members voted for 50? not really. yousef: the other central bank that is in focus is the pboc. we have news out from that domain. the banks have not lived up to expectations of the market in terms of the rate cut. how does the pboc manage the peer pressure from the rest of the wor

nondomestic's, boe, and non-cuts. with pension funds and nondomestic's, i think pension funds are neutral right now. we need to focus on whether we can per be provided some guidance. with respect to the market, in inflation, as it stabilizes or increases, if not decreases, if that is the case, i think the market, we would see investors coming in in the u.k.. even if we are expecting the fed to actually pause or get done into hikes, is hard to see it get cycle. if you look back into march, where we have the entire s&p crisis, the markets remove their pricing and they also do it for the boe. i think there is some form of correlation as to how you get rid of rates, and i think next week, if you look at the stabilization when it comes to inflation, as well as some guidance from mpc members, that is a good vibe. >> great stuff. thank you very much. it's going to be a big week for the u.k.. i've seen when andrew bailey has for lunch. maybe he will be having some dinner. front of the ecb. >> how do you know this? >> because

the boe surprised most economists i cutting a short-term policy interest rate. joining us now is marcus morris-eyton from allianz global investors. let's start with the news out of china. as well as a rate cut from our team reporting in beijing, sources they are speaking to say policymakers are considering broad measures to support real estate in important they, i think to support mastech demand. how do you think about that in terms of how you position around chinese equities or for you the linkages to european stocks? marcus: it is welcome news and the market is rallying off the back of that news. it is not totally unexpected because a lot of data we have been receiving from china in recent weeks and months has been weaker than investors had hoped. when china opens, you start recovery in domestic consumption around luxury goods etc. but it was less broad-based than we saw when the western economies opened up post-covid. from speaking to companies, what you have seen with many companies is them having to rethink their chinese supply chains. a lot of companies ar

haslinda: and the boe, ecb have been hawkish. 50 and expected from the boe. what are your expectations? >> they already did 50 which was a surprise to the market so from here the hurdle is higher. it is possible they do another 25 or 50 but the market has priced in more than 150 basis points over the next couple of months so that is very hawkish and i think they might have overdone expectations a little bit. for most of the central banks they are probably not quite ready to call it quits but we are near the end of the hike cycle. haslinda: it shows how difficult it is to end to the tightening cycle. selena, stick around. still ahead, investors turning bullish on credit markets as concerns about payment risks ease. we will take a closer look with deutsche bank. rishaad: japan's finance ministers saying that government will intervene if the yen touches 145 per dollar since november. details. this is bloomberg. ♪ ♪ (upbeat music) ♪ ( ♪♪ ) woah. ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel,

we need to do more to get inflation under control which was what the boe said. although the central banks have been warming up the water for a long time, they need to ratchet things up further to create the slow down that will bring inflation back under control. host: you started out saying this, it is developed markets. emerging markets are different. mexico and brazil remained unchanged yesterday. is this global the synchronization -- desy nchronization? >>'s similar scenario for a lot of the southeast should -- a similar scenario for a lot of south asian countries. if you had a yen funded carry trade, you i've done phenomenally particularly if you invested in latin american currencies. interest rates are high. the currencies have had appreciation. they are at a point where things are starting to turn. the strategists are looking at emerging market local currency bonds. if the economies have inflation under control and can continue to grow along with what we are seeing so far in the rest of the world, those are opportunities that people are exploring and getti

the first is that you have seen, you know, a very strong embrace by the boeing company and by industrymanufacturing process. and so every non—conformance we're talking about, we're talking about with our suppliers who are in the middle of them, we're talking about with customers who are affected by deliveries, we're talking about with the regulator, as we all are striving for that very first principle — safety first. that embrace of transparencyjust means we're having this conversation more out in public as opposed to inside the walls of industry. but let's look to the future a little bit. you and airbus, you're now talking about a next generation of planes. in your case, it's a plane with a super—long wing that has to have special bracing. what's the end game with that? what are you trying to achieve with that? you know, so in our strategic conversation at the company is really around a capability mindset. and so there are a number of capabilities that will be necessary to deliver the next airplane. and so whether that capability is a material system, whether that capability is around

it was either boeing or washington, university of washington. i know for the tightend they rented a pool at the university of washington. it does seem like this company was betraying it is a boeing and the university of washington were involved in the tightend itself. >> unfortunately i wasn't around then. i am not sure exactly how it was worded or what happened. i do know as you said right as i left we were co-located at one of the university of washington offices. some of their folks were actually in that area working with us. i don't know exactly what they were working on. i was not a part of the company at that point. >> the university of washington said essentially none of the personnel were working on the vehicles. they rented full space for testing, but none of the personnel were involved. i spoke to james cameron yesterday, obviously who has made 33 died. i want to play something that he told me and have you respond if you can. >> i think there is a great, almost a real irony here which is titanic sank because the captain took a full ste

shery: we are talking about the boe, about turkey.e the colombian peso is now the best-performing one this year. i spoke exclusively with finance minister ricardo bonilla and asked him about the risks ahead. >> we are also facing challenges here. we are being impacted by reduced imports, particularly of intermediate goods and durable consumer goods. that is what we are struggling with. >> the colombian peso has been very strong this year. how is this affecting your monetary policy path? >> we have reached an exchange rate that has stabilized between 4100 and 4200. this means benchmark rates will remain stable this month. currently it is above inflation rate. two or three months from now we will review when they may be appropriate to start lowering it. >> we have seen central banks in canada and australia pause hiking rates but resume tightening. might that happen in colombia? >> it is indeed a risk which is why it is expected there will not be any changes to the bench rate -- benchmark rates this month. >> we have seen the fed and oth

thursday is a key day for the boe. we also have cpi out of u.k.rshadowing all of this is what is happening in china set to cut crime rates and a decision is expected on tuesday. this is according to economist' forecasts. and overlay all of that with antony blinken in china and the chinese premier in berlin. stocks on the move with joe eastman from our equities team. we start with sartorius. joe: this is the big story in the pharma space. sartorius cutting their earnings guidance and dropping 15% almost heading down 20% earlier and taking down a number of stocks with it including merck and germany, the big biotech and general pharma company. also lonza and evotec. a lot of red on the pharmaceutical screens. this is a 25 billion euro market cap company. morgan stanley saying today the report is worse than even the most bearish people on the street said. consensus earnings estimates could fall 20% and this is after even a pretty weak reports. generally not expected. the biggest movers all in the pharma space today. francine: looking at merck, a lot g

are you bracing for further jumbo heights from the boe? diana: yesterday was on our view a positive day. we feel like the bank of england got ahead of where it needed to be in terms of communication, saying they will fight inflation. the 50 basis while not expected, will said -- people said it should happen but it won't happen, but it did. tom: do you go back down to 25? diana: i don't think that is clear. we think there is another 100 basis points to come. how that pans out's not exactly clear. it can be more measured. the important thing between now and in the next couple of weeks is probably the communication. one of the things people have been concerned about with the bank of england and andrew bailey is it hasn't been clear communication ever since 2021. francine: it is difficult. the mpc has voting rights. andrew bailey doesn't know what it and some being. -- ends up being. he gets flack for not a lot of communication but the way it works it is difficult for him to give forward guidance. this is about inflation. the forecast is still

boeing and ibm are a drag toda on the dow, which was lower fo much of the day, but as we start this final hour, the dow is green, albeit, barely more broadly, stocks trying to avoid a fourth day of losses i a row. there is the snp, positive now as well. energy, financial, utilities have been lagging. in fact, it is the worst wee still for the s&p since march. nasdaq, higher it's hoping to keep its eigh week winning streak alive, and it's doing pretty good at that right now. there is the nasdaq, 13,613. just shy of 1% it does lead us to our top o the tape the challenge ahead fo investors, given the rally we've already had, and what we think still lies ahead let's bring in joe terranova o -- investment partners. -- it's going to join us in just moment good to have you here. so, you sat down, you said, oh energy is lower. oh, financials are lower i mean, the markets fought back, though, as we begin this final hour so, how do you see things here >> okay, but the market is fighting back, why because there is a mega cap pu underneath the markets the mega caps, once again. so, i initially it was

boeing did say at least they'll boost output of the max pretty soon. >> i think boeing is a huge partomy there's millions of parts in a plane and a ton of suppliers boeing has been a hot stock going into the paris air show. that's profit taking phil's stuff has been incredible there. we know this is one of the strongest parts of our economy airbus has got a bigger backorder than we do as phil said, you don't know how good the back orders are you can say i want a lot of planes and phil was teaching me, you don't have to put a lot of money down to say that if you want a lot of cars, you have to put money down if you want a home, you have to put a lot of money down. unlike the consumer packaged goods stocks, they've been real dogs maybe they can have a run. >> i wonder what you think is behind that, some of the names in the package space philip morris is in there, jim is that about riding the back side of inflation where your input costs are coming up and your consumer pricing is sticking >> i think it is pm is an upgrade it's a top bako stock that doesn't like to be baca. it's like star

supply chain, on shoring, pentup industrial production from boeing, gm, from ford.s of the world, the deeres of the world, transportation of the world which have much more room to run. >> i think one of the issues for any investor you get married to your positions, right? that's the danger in this whole process. you get married to your positions and the world will come to you rather than you go to it. now all of the reasonings behind your moves make perfect sense over the long term that doesn't mean that they work in the short term. not looking to switch any of these out based on what the market has done for the first six months i guess is what i wanted to know >> exactly right and an excellent synopsis what i've been saying recently is this market, as we know the market looks forward six to nine months maybe i'm wrong about the recession, scott if you do get a second hatch of the recession, the second half of this year recession, this market is looking forward to 2024 it sees the fed being done, not cutting, being done with rate hikes. it sees inflation coming down

. >>> plus, getting back to work employees at a key boeing supplier striking a deal to end an ongoing labor strike. >>> microsoft facing new scrutiny and pressure over the activision takeover with the ftc and that battle heads to a judge. it is friday, june 30th. the last day of the first half of 2023. you are watching "worldwide exchange" here on cnbc >>> good morning welcome to "with worldwide exchange." i'm dominic chu in for frank holland on friday morning. let's kickoff the hour with the u.s. equity futures. in the green dow jones industrial average implied higher by 35 s&p up 11 and nasdaq up 67 stocks are setting up on a strong note. the dow and s&p up 2.5%. the nasdaq, running away, at 11% on a quarter-to-date basis this is a good quarter so far for stocks it is a similar story for the first half of the year the nasdaq is up nearly 30%. that is its best first half since 1983 s&p notches a strong six months up 14.5% best first half since 2018 remember last year was a terrible year for the stock market we are working off a low base. checking the bond market yields are trending h

and boe they have more work to do. it is going wider. in terms of wider perspective on europe, like economic growth, i can see how -- not does very well in retrospect you see oil story of his own. saudi arabia it would is botched trying to drive the market to stable motion with brent trading above 75 but if you're looking at copper, aluminum's, they do not have the body to support prices so they are much more prone or susceptible or vulnerable to the macro environment. alix: dinner becomes energy transition. thanks a lot and appreciate the set up and joining us on a friday. coming out, more the question for the day. this is bloomberg. ♪ when you automate sales tax with avalara, you don't have to worry about things like changing tax rates or filing returns. avalarahhh ahhh ♪ (upbeat music) ♪ ( ♪♪ ) ( ♪♪ ) ( ♪♪ ) -awww. -awww. -awww. -nope. ( ♪♪ ) constant contact delivers the marketing tools your small business needs to keep up, excel, and grow. constant contact. helping the small stand tall. >> you know there will be volatility. when it

shares of boeing are dragging down the dow which is 23 points in the red and the nasdaq is up.63% boeing as i mentioned down because of a potential strike at spirit aersystems. they had to close which could impact boeing. >>> check out shares of ocado, soaring as amazon could make a bid for the company. amazon up 3.5% for its part. they're also making some a.i.-related announcements today. we'll have more details coming up in tech check >>> we begin now with india's prime minister modi visiting washington, a significant meeting as well as rare state dinner being held by the white house tonight. but business is on the menu as the ceos of apple and google are expected to attend the dinner as well tech business roundtable in washington on friday seema mody is live at the white house. >> reporter: president biden and prime might be ster modi speaking in the east room. biden himself saying the relationship between the united states and indy ya has never been stronger, both leaders also touting the significant deals in the sptech space modi talking about the significant investments from micron

and with the university of washington, only now both boeing and the university of washington all ties with rush and his company oceangate deny cooperation, it was not his bathyscaphe, which took tourists to one of the most dangerous places on earth has not been certified. not a single department. the owner willingly invited reporters there. they invited, checking here in the apparatus next to stockton rush, the film crew of discovery journalist george gates saw. the titan decided to go ashore. for those wondering whether or not the titan is performing well. during my dive eventually. i turned down the amazing opportunity to film the titanic due to my concerns about safety, batik, the history and construction of titanium so far. unpublished and much here it raises concerns, for example, it’s creepy to watch the footage of how they closed the suite behind tourists from the outside, twisted it with 17 bolts , that is, opening it from the inside is impossible . not enough cash davydov maksim kolpakchi to carry on. our broadcast will continue the local news colleagues, as we see already ta

cnn has learned boeing and the university of washington are denying partnering on titan. in a statement uw tells cnn the school of oceanography testing tanks were used by oceangate but no uw eh researchers were involved and personnel did not provide any verification or validation of any oceangate equipment as a result of those tests. and the school's applied physics lab told cnn its staff only worked with oceangate on a different shallow diving submersible. boeing firmly told cnn the company was not a partner on the titan and did not design or build it declining to comment further. nasa whose collaboration rush raised frequently told cnn it consulted on materials and manufacturing processes for the submersible but did not conduct testing and manufacturing or any approvals. titan was not certified by an independent firm and in 2019 the company put up a blog post defending that decision. but two months later after a test dive in the bahamas, oceangate publicly raised the name of one of those certification companies saying the dive was validated by a representative from lloy