central banks argue the rising inflation is purely transitory. while i was at the bank of england, the staff would put their forecasts for inflation for different pile of interest rates. inflation always came back to 2% in the medium-term? -- medium-term. why? because the model said it had to return to 2%. i did not find this reassuring. in 2020 and 2021 the acceleration of broad money growth to its highest level since the second world war should have been a warning sign. i worry that intellectual hubris among the economics profession as led to the abandonment of the old and rather common sense view that if inflation reflects too much money chasing too few goods. central banks insured there was too much money, and the result, a higher court inflation was electable -- predictable and predicted. the unfortunate succession of the u.s. monetary community with monetary base is in part responsible for the believe that inflation can be explained solely in terms of real variables with the addition of an inflation target. an analysis of monetary developmen

central banks can assign central banks because central banks can limit the expansion and the purchasingpower and that the only once but that only they can. >> tyler? >> i would have to come down on the side of the central banks errors. if you look at in 12 months. every 2020 they were running slightly less and it would take a harmonized index. march of 2021 when there's a big divergence. what happens in march of 2021? in the u.s. what consumers are sitting on $1.7 trillion in savingsat from prior relief packages we have have a fiscal sense to me with equal to 10% of the annual output of the entire request and the immediate impact of that -- it should have risen above trend by the end of 2020. demand for goods and united states surges byby almost 11% rather than the annualized. increase. we have heard a lot of discussion by courts in supply chains and 2021 and i think the courts did a good job of handling import volumes or 20% above 2019 levels may think this is a big accommodation by the policy posture of the federal reserve and since 2021 there has been the convergence driven primarily

the central bank. here is the scorecard this week. these are g10, the fed, the swiss bank well. we exited negative rates for the first time. boj, the lone wolf in the dovish camp. taiwan, indonesia, philippines as well, in brazil, vietnam was a big one, 100 basis point height, and turkey in the opposite direction with that 100 basis point cut. rishaad: the bank of japan did nothing. of course we had authorities come in and intervened into the marketplace for the first time in two decades pushing up the yen. what it did not do is widen the gulf and global monetary policy with the fundamental reason why we are seeing declines for the unit itself, and you can see what happened. 2016 was the last time we saw intraday swings like this for dollar-yen. there we go. that was thursday. some traders girding for the bank of japan to come in again on monday, because earlier in the week, it seems that had more effect on they didn't and later in the week, and may be a return to the playbook. there we go. yvonne: mark talked about why this might be a good timing from japan. where headed into t

central bank deposit rates. obably also decrease, but not as significantly as before according to the maximum results. the rate on deposits of individuals in the top 10 banks is 6.7 68% per annum until the end of the year. it may drop to 6-6.5% per annum, and here the potential for decline is primarily due to the fact that banks are no longer afraid of massive outflows of funds from individuals, as was the case in spring, because actually under current conditions. e, customers of banks do not have, but a significant range of alternative instruments for investing funds with e, moderate risk. as a result, we can conclude that, taking into account the new rhetoric of the central bank, russian banks will act cautiously in making decisions and deliveries, most of them say that further actions will depend on the development of the situation in the economy and in the competitive environment. it is almost impossible to count the number of solar modules from the first time and not get lost, they stretched for hundreds of

the central bank rate . uh, well enough stability was declining in the first decade of march was 20.5%. now she's leveled up. uh, the maximum interest rate, then 10. e has already reached the level of 6.8. as a result, we can conclude that, taking into account the new rhetoric of the central bank, russian banks will act cautiously in making decisions on supplies, most of them say that further actions will depend on the development of the situation in the economy and in the competitive environment. mariupol the day before celebrated the day of the city with the opening of the monument to alexander nevsky, which was cast in st. petersburg, the northern capital helps to return to peaceful life, the city was especially affected months of the special operation, new kindergarten schools are being opened, residential buildings are being restored and built . governor of st. petersburg alexander beglov arrived in mariupol to check the progress of work . my colleague olga kuraeva talked to him how did the idea come to

the central bank tightening.hin 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 saying as far as the fx market? yvonne: and what's the trigger? >> it's the biggest topic right now in korea, how much the current rate is going to go up against the dollar. by that, i mean the weakening of the one which is a big factor for a country like korea where they have to import a lot to produce these exports which underpin the economic growth for korea. right now, it's hovering near levels that have been seen in the previous global financial crisis. the bok governor is v

central bank deposit rates. will probably also decrease, but not as significantly as before, as a result of the maximum hundred. as for the deposits of individuals in the top 10 banks, it is 6.7-6.8% per annum by the end of the year, it may decrease to 6-6.5% per annum, and here the potential for a decrease is primarily due to the fact that banks are no longer afraid of massive outflows from persons, as it was in the spring, because actually in the current conditions. e, customers of banks do not have, but a significant range of alternative instruments for investing funds with e, moderate risk. as a result, we can conclude that, taking into account the new rhetoric of the central bank, russian banks will act cautiously in making decisions on supplies, most of them say that further actions will depend on the development of the situation in the economy and in the competitive environment. the most important thing is to feel that they are not forgotten? so i come to the front line to them, and they see. he not afrai

francine: central banks also take central stage. forecast to add up to more than 500 basis points combined. things kick off tomorrow with riksbank, which is expected to accelerate tightening with 75 basis points. the consensus is that fed hiking by the same amount. we are now joined by charles-henry monchau, chief investment officer at banque syz . thank you for joining us, this is a huge week for central banks around the world. we have the boj, that fed and the bank of england. do you think they will hike by a percentage point? charles-henry: that is a possibility. if we look at the hawks, there is a chance for a larger rate hike. markets need to adjust. we need to accept the fact that inflation is indeed accelerating. the fed is behind the curve. the fed needs to adjust and maybe they could choose to adjust quicker than the market was expecting. the base case is 75, but 100 is indeed still a possibility. tom: thank you for joining us, it's tom in the studio alongside francine, the rally has fizzled, where are we in the repricing o

amidst the wrath of policy decisions from central banks, the turkish central bank is not expecting muchin the rate at 13% after the bank. surprise craig -- surprised rate cut last month. incredible inflation in turkiye. 's president erdogan unorthodox policy continues. that is leading the lira to close to record lows. haidi: coming up in the next hour, volatility will persist. we have more on that shortly. this is bloomberg. ♪ >> from the world of politics to the world of business, balance of power with david westin, news and analysis, insight from the power players weekdays. this is bloomberg.

this is happening at a time when global inflation is rising dramatically and central banks are tightening monetary policy. it is going to get tricky from here on. jonathan: greg, how do we resolve this policy conflict? greg: the bank of england is an --is in an impossible spot. they have to deal with the fiscal policy that was delivered to them. the real question on the table, though, is whether this is the roadmap to other countries' central bank. i don't think it is. it is an open question, but the markets are trying to figure out if the roadmap of central banks having to step in to make up for the fiscal, how it is going to be going forward. jonathan: i want to jump in. peace is important. what we are seeing in the u.k., could not become something like that? the new normal for the central banks of the regions? >> hopefully not. look, the last thing you want is for the macro pressure to morph into a problem for financial stability. from that perspective what the bod -- with the boe did is welcome. i would take things one step at a time. i agree with greg this is an incredibly challengin

global central banks line up jumbo hikes. the biggest rate increases this century and the fed begins its two day meeting. japanese cpi hits a three decade high, putting pressure on the boj to justify continued stimulus. plus, relaxing restrictions. hong kong ways loosening hotel quarantine rules, easing travel for the financial hub. asian stocks had five days of decline, but there is some optimism from hong kong on the back of that move did we are seeing modest gains coming through the futures after that last hour of trading upside. modest gains closing out from wall street and we are seeing that modest optimism in the futures. we will see how things open. here is the ftse 100 and the market was closed yesterday for queen elizabeth's funeral. it is up today. we are looking ahead to friday in the u.k., where there is expected to be a mini budget from the new chancellor of the exchequer. the ibex gaining 31 points and the focus globally on those central banks is a riksbank around 8:30 u.k. time, at least 75 basis points is expe

mathieu: as we have been saying, but will be happening with central banks and the fed more recently, hat banks are struggling. all of that is adding real pressure because it is no longer there. the bank market should be the topic for investors as a great opportunity. dani: we have seen this around, looking at big banks. you have to take a big concession on this. how is that on the outside to gain financing? mathieu: it is a big deal. all of it is stepping back and being more shy in taking additional risk. that is on top of the steepening curve. going from that minus onto 2% today. you are referring to this deal. we have been talking about the banks and these big buyouts are struggling to get the credit funding. investors do not have a transaction to get returns. they will provide minority capital to help strengthen it. dani: that is one side of it. the other side is for floating rates and portfolio companies. is there a level of rates that you start to worry about the ability to pay debt obligations? mathieu: unfortunately, on the one hand, companies are refinancing. there is not a ma

but this extends to all central banks. mismatch of politicians trying to deal with the energy crisis, fiscal loosening, and banks trying to tighten. are you concerned at all about central bank independence in this current environment we are dealing with? >> it is tricky. we did hear from the bank of england this idea there might be a slowdown or a question on tightening as a result of this new attentional fiscal spending coming through. this idea of monetary independence is being challenged, but to some extent we are almost back to the covid state of coordinated monetary fiscal policy in a time of crisis. i think the markets can be more lenient given the length of what we have seen in this crisis, the magnitude has escalated in what we have seen in energy prices. in a crisis you can be more lenient as long as when you get out you return to some sort of normal central bank independence. that is what the markets will be looking for. manus: the lady was called janet yellen and her words were intervention is something which sh

boe headlines more central-bank action today. norway and south africa also announcing rate decisions. we will keep at it until the job is done, words from jay powell yesterday. reflecting the title of an autobiography. it is clear that they have put a hawkish drive into the market. 75 basis points, what we expected but with the dots. this is a fed that does not like markets. you can see that clearly in the reaction. we have an equities rally which would make a lot of sense if they are trying to engineer a recession. that will hit earnings. it is not going to be painless to have inflation come down. perhaps stocks are operating for the american economy. two-year yields surging about 4%. they are still continuing to climb higher today. we are at 1%. this is the highest since 2007. the curve is moving higher. that is reflecting the idea that we will have a recession. 4.6% next year. perhaps that sounds a lot like a recession. that is the most inverted since 1980. bloomberg dollar is at a record high. euro is at a new low. it will co

the central bank of brazil is expected to leave rates unchanged, as is bank of japan.olicy decisions by the swiss national bank. the bank of england also expected to raise rates. hang onto your seats, get some coffee, we have our rate correspondent joining us. garfield, i'm looking at a note that morgan stanley is saying basically we will see capitulation as risks rise for equities. do we really have a good grasp on what this coordinated global tightening means for markets and the economy? garfield: i think we do, this year is possibly unprecedented, certainly hasn't happened since the 1980's. this is very different from the 1980's, you had some level capital. we did not have china, we didn't have the immediate follow-through to marcus that we have now. by the same token, we have a global world. it takes a while for interest rates to work their way through these different economies. it is very hard to say exactly what is going to go on as this amazing pace of hikes occurs. one thing central bankers are trying to promise is they are not about to take their foot off the

we heard from the cobbled central bank law had left one of the rightful owners of the frozen assets or the afghan people. the decision of the us to transfer one part of that amount to a switch bank is totally illegal according to international law. and not so happy birthday. as the thea market 75th anniversary, we look at the track record of the agencies laws and controversies on the cuban missile crisis to the taliban resurgence in afghanistan with the week is just getting on the way in moscow. my name is peter scotts and welcome to 30 minutes of news and analysis. they are not international. and we start with the latest developments in ukraine where battles continue for the carcass region. russia says it's destroyed to ukrainian ammunition depose in the car cove and the raja regions. it's been reported the fighting in the city of piano is still ongoing with the western parts under russian control. meanwhile, officials in the done yes. republic say that done yet was hit by an artillery strike on sunday. and moving on to the region in the south of ukraine that's been under the control

we are headed to the central bank decision in europe. ding the central national bank of switzerland. we are setting up for more central-bank action there as well. president biden will accuse vladimir putin of making an update on the russian leader military escalation in ukraine. this is bloomberg. ♪ >> president biden is looking to rally international support for ukraine following what he calls led mapleton cost nuclear threats. let's bring in clara. how isolated is put in on the global stage right now? will this embolden him further -- how isolated is putin on the global stage right now? will this embolden him further? >> remember that last week, we had the meeting where he should have expected support from like-minded leaders but instead he got the cold shoulder from china and the telling of from prime minister modi of india. and in particular, this is a pretty strong response to the speech that we heard yesterday. >> it is just a speech at the end of the day. you see the winning impact of the sanctions, the russian economy -- waning im

it creates more troubles for the european central bank and its policy path forward.ve more ahead on daybreak. this is bloomberg. ♪ >> a quick check of the business flash headlines. meta has outlined sweeping plans to reduce headcount for the first time. it is freezing hiring and restructuring units to trim expenses and reorganize priorities. meta will likely lead -- be smaller in 2023 then this year. softbank group is said to have started laying off employees at its vision fund. it is expected to cut 30% of staff from the london-based unit. the fund recently posted $23 billion loss. most of that coming from a plunge in valuations in the portfolio companies. one of amazon's executives is leaving after making crude remarks on tiktok video. the procurement chief told bloomberg he sincerely apologizes for mistaken attempt at humor. volkswagen said porsche's final listing price of the upper limit raising over $9 billion and fetching a value of $73 billion. the ceo said he is confident that the carmaker can whether an economic downturn. >> we don't expect a slowdown propor

this is bloomberg. ♪ haidi: let's of the week ahead, a big week for central banks globally, a number decisions do. on wednesday the federal reserve looking untracked or another jumbo increase on interest rates and looking to decrease demand to ensure inflation will come back to 2%. the bank of england is expected to raise basis points by 50 points on thursday. on thursday bank of japan expected to leave rates unchanged. other major decisions includes sweden, thailand, philippines, and indonesia. shery: our next guest says the fomc will make a 75 basis point hike that is. let's bring in steve cochrane and moody's analytics. why not 100 or even more? we had our guest earlier saying the fed needed to hike by 125 basis point in order to regain credibility. >> 125 basis points sounds awfully high particularly due to the fact that the fed has already been early aggressive with a couple of 75 basis point hikes over the last few months. it seems to meet 75 basis points is consistent with that pathway. not 50, but 75 basis points given the high inflation to read we got last week. inflation is

other major central-bank decisions include sweden, the bank of taiwan and the philippines central banks well as bank indonesia. shery: our next guest is changing his call from a 3.5% peak to 4%, saying the fed needs to raise rates by a whopping 125 basis points to regain credibility, but there is zero chance of that happening. always good to see you. this is the first time you are calling a 4% peak. >> i have been calling for 350 which has been out of consensus for a while. we are just five basis points this evening. i think we are headed well over 350 and i think 4%. then i have to talk in terms of whether it's going to go further up than that. the fed needs to be ahead of the curve. it needs to regain credibility which was severely lost by calling transitory inflation and making a huge mistake in 2021. so when you've made such a serious mistake, you need to overdo on the others. that's where my 100 when he five basis points comes from. shery: we've seen the global bond reaction and how they have fallen into the bear market with that hike of 400 basis points. globally in g10 banks. bu

it is a big week for central banks. in number of players had to reveal their latest rates. t, it is the turn of sweden's bank which kicks off proceedings later this morning. joining us now to help us set up for the week is esther reichelt from commerzbank. thank you for joining us. it is a lot from the fed to the boe. where do you see the most opportunity for surprised, the most misalignment on this market pricing? esther: maybe not misalignment, but the biggest uncertainty is to how the fed will address its projection. it is not the rate hike. there is the potential for surprise whether they hike 75 basis points or even 100 basis points. the most important thing for the fx market is what they are showing afterwards, the outlook. dani: i want to take you into our charts because valerie, our markets editor, made this good one showing what it looks like in terms of financial conditions. financial conditions actually at this moment are looser than when they did the first hike in march. how much do you expect the fed to try to change the market's perception of a pivot next year

we heard from the couple central bank, middle i had left, one of the rightful owners of the frozen assets or the afghan people, the decision of the us to transfer one part of that amount to a swiss bank is totally illegal according to international law. and also happy birthday is the cia marks it's 75th anniversary. we look at the track record of the agencies flores and contrivances from the cuban missile crisis to the taliban resurgence in afghanistan. a very well can see from the russian capital early this monday morning. my name is peter scott and welcome to the program wherever you join us from. and we start with the latest developments in ukraine where battles continue for the active region. now it's been reported, the 5 thing in the city of coupons is still ongoing with the western parts under russian control. meanwhile, officials in the den, yes, republic say that the nurse was hit by an artillery strike injury 9 people mid bottles following a ukrainian counter offensive in the region. archie is not. garcia has traveled behind the front lines. the city of scott dawson, in the hills

coming up, central bank is expected to raise borrowing costs across 20 central banks. ahead for the yen. this is bloomberg. ♪ >> a quick check of the latest business headlines, america expressed is adding 1500 employees to its technology arm. they told bloomberg that roughly 60% of the hires would be in the u.s. without a -- with a third in india and the rest in europe. 3600 tech workers hired in the last year. the surgeon post-pandemic revenue allows for new investment. apple is working for a new update to fix a bug in the rear camera. users complained about the camera when used with snapchat, tiktok, instagram, facebook. the new camera system is one of the main upgrades for this years device. rumble, the conservative video network band, surged 40% on its debut in new york, it became a publicly traded company, with its deal with a blank check firm. it is one of the growing number of alternative media sites to attract users as political division identifies. >> we are counting down to markets open in tokyo that come online at the top of the hour following an extended ra

plans to transfer $3500000000.00 of frozen afghan assets. jewish swiss bank we hear from couples central bank, the decision of the us to transfer one part of that amount, which was, bank is totally illegal according to international law. with just after 2 pm here in moscow, and you're watching our t international. i'm your host donald quarter. welcome to the program. now we begin this news hour with breaking news. 13 people have been killed in the latest ukrainian artillery attack on the city of daniel. that's according to a statement by the mayor. a warning you may find some of the following images disturbing, shelling, targeted, crowded areas in the city center. this is footage, showing the aftermath of an artillery strike on a busy central square for civilians were killed while they were stepping out of shops and even waiting for the bus. be blurred out images of the human cost of this latest horrifying attack by cubes forces. daniel's authorities are still working to determine the complete number of casualties. and as you can see, several buildings and public infrastructure have been dama

plans to transfer $3500000000.00 of frozen afghan assets to us with bank we hear from couples central bank the decision of the us to transfer one part of that amount to a swiss bank is totally illegal according to international law. and not so happy birthday as the cia marks it's 75th anniversary. we look at the agencies track record of flaws and controversy with just after 10 am here in moscow, and you're watching r t international. i am your host donald quarter. welcome to the program. now we start with the latest developments in ukraine where battles continue in the heart of region. key of previously announced its complete takeover of the city of coupons, claiming russian lead forces had left the eastern part of the city. the fighting is reportedly ongoing, and russian troops are understood to continue to hold defensive lines along the isle school river, which runs through the settlement, controlling the eastern part of coupons. i made battles following a ukrainian counter offensive in the region. ortiz more ad gazda of went from behind from behind the front line to the city of scuttle

we hear from kabul central bank level, one of the rightful owner of the frozen assets on the afghan people, the decision of the us to transfer one part of that amount to a swiss bank is totally illegal according to international law under not so happy birthday as the ca, marxist, 75th anniversary, we look at the track record of the agencies laws under control. this is from the cuban missile crisis to the taliban resurgence in afghanistan with 7 am and a new week is just getting underway here in moscow. i'm peter scott and welcome to 30 minutes of news analysis nazi we start off with the latest developments in ukraine where battles continue for the hock of region. give had previously announced the complete takeover of the city of coupons saying the russian lead forces had left the eastern parts of the city. however, it's been reported that fighting is ongoing and that russian troops continue to hold defensive lines along the asshole. river, which runs through the settlement controlling the eastern parts of co pianist amid battles following a ukrainian counter offensive in the region osmotic

we hear from cargo central bank. i have one of the rightful owners of the frozen assets or the afghan people, the decision of the us to transfer one part of that amount to a swiss bank is totally illegal according to international law or not so happy birthday. as the 5th anniversary, we look at the track record of the agencies flores and consult with a very warm welcome see from the russian capital this monday morning. i'm peter scotts and welcome to the program. grab you join us from we start off with the latest developments from the war in ukraine where battles continue for the cock of region. here had previously announced the complete takeover of the city of coupons, saying the russian lead forces had left the eastern part of the city. however, it's been reported, the fighting is ongoing and that russian troops continue to hold defensive lines along the osco river, which runs through the settlement controlling the eastern part of coupons. but mid battles falling a ukrainian counter offensive in the region, our seas

how far central banks have strayed from their original blueprint, from the original central bank blueprint. we'll give you a walk through history and why it's so catastrophic right now. charles: gop sending biden administration over to the massive student debt handout and progressive lawmakers demanding more freebies and hillary vaughn on capitol hill with the story. >> hi, charles. six republican led states are joining a lawsuit together suing the biden administration over this. arizona has its own separate lawsuit in addition to this, but this lawsuit from the six states centers over the justification that the president used to justify student loan forgiveness saying that the pandemic paves the way for this being legal, but these states make the argument that that justification is no longer after the president himself declared in an interview that the pandemic is over. arkansas attorney general leslie rutledge leading the group says what the administration is doing is illegal and unfair. >> if the courts don't shut this down, it's going to tell any president, not just president joe biden

not boasters the case for the central bank to keep desk to keep key -- the case for the central bank rates. a new report from the world bank says the global economy may face recession in 2023 due to aggressive policy tightening that could be inadequate to taming inflation. central banks are expected to raise some policy rinsed almost 4% next year. the report called for policymakers to reduce production instead of reducing consumption. germany is said to be in advanced talks to take over gas importers to avoid collapse of its energy market. we are told germany is considering buying a controlling stake in one company for a nominal price and injecting billions of euros in the company for capital improvements. the u.s. has potentially averted a rail strike after freight rail companies and unions reached a tentative deal. there will be a vote or the agreement comes up to 20 hours of talks which included resident divided -- concluded president but -- which included president biden. a strike could have cost the u.s. $2 billion a day. >> today is a win for america. together, we reached an ag

i think that is the message that has been conveyed after central bank after central bank after centralank. things are starting to feel like they are either breaking or broken. is this what broken looks like, is our question of the day. trying to answer that is live macro strategist, simon white. we have got kriti gupta. simon, is this what rogan feels like? >> very much so. looking at u.k. markets, you see stark moves. bigger moves in gilt yields than in many years. the crisis in 1976, that is the only strong reference point we have. alix: kirit, -- kriti, who is underwater at this point? kriti: i do not think they are broken. this is a contrary opinion, they may be working better than we thought. there is so much change, so much changes in pricing, the fact the market is able to execute it. this isn't like 2020, when you had a lot of margin calls. yes, we will see. this isn't a plumbing issue, you are not seeing market's unable to cope with it. you are seeing people getting burned quickly. in terms of repricing, the consequences of truss-onomics, what the federal reserve might do, and

so the central bank has put a $200.00 transfer limit between 8 pm and 6 a. m, what i, i'll a train going right by your coffee table might not sound like a relaxing afternoon stop. but in hanoi vietnam train street is a popular tourist destination, where patrons could eat their lunch right next to a moving train. but police have shut down the popular tourist attraction. local officials say there were violations of railway safety rules and that tourists behavior like posing for pictures and taking selfie is or lying down on the tracks was dangerous. well, that's our show. thank you so much for watching. we'll see you next week. have a good night with to the point. strong opinions, clear positions, international perspectives. it's nothing short of a route. ukraine's 2 pronged counter offensive, his expelled russian troops from a large swathe of territory in the northeast of ukraine. at lightning speed, ukraine's battlefield gates put in under pressure to the point next, d, w. 14 and a clinic where women can buy time because eggs can be frozen and later used for

in their central bank. when we cut them off in 2014 they decided they'd start their own domestic credit card company be less dependent on visa and master card. so how has visa and mast are card suspension of services in russia affected domestic issuance and acceptance of mirror cards? who wants to answer that? yes, sir. >> i don't have the exact numbers. but mirror is still a shadow of what visa and master card had in the country. and what's interesting in post-2014, post-crimea is the way they diversified. in fact, in 2014 i was at the hague on behalf of the d.e.a. talking on this topic, actually, and the f.s.b. was there. they still had two parts -- anti-child sex rings, etc. they were still working with us on that. and anti-drug. they were talking how the russia system which was the quote-unquote drug money movement mechanism globally for russian organized crime. within a year it had became their paypal. now we got the index money and various others, kiwi that are found around the world. these alternativ

the european central banks expected to continue increasing rates in october b. c. b is now seen taking its own interest rate to almost 3 percent next year from 0.75 percent. now, the swiss national bank carried out the biggest height ever to its key lending rate, ending several years of negative interest rates in switzerland, indonesia, taiwan, the philippines and the south africa are also among the countries where rates have been lifted. but unlike the rest of the world, china has cut interest rates twice this year. inflation in the country is far lower than in the u. s. and other countries. well, the dollars search to a new to decade high after the federal reserve raised interest rates last week. it's mainly against europe's single currency, the euro, which fall below polity with a green back for the 1st time since 20 o 2, the dollar is up more than 19 percent against a basket of foreign currencies. japan's the latest to have taken direct action in foreign exchange markets to show up currencies with joining me not from boston, massachusetts is james mccann. james

central bank deposit rates. it will probably also decrease, but not as much as before. te on deposits of individuals in the top 10 banks is 6.7 68% per annum until the end of the year. it may drop to 6-6.5% per annum, and here the potential for decline is primarily due to the fact that banks are no longer afraid of massive outflows of funds from individuals, as was the case in the spring, because in fact in the current conditions. uh, bank customers do not have a significant range of alternative instruments placement of funds with e, moderate risk. as a result, we can conclude that, taking into account the new rhetoric of the central bank, russian banks will act cautiously in making decisions on supplies, most of them say that further actions will depend on the development of the situation in the economy and in the competitive environment. thank you dmitry how banks will change rates on loans and deposits said dmitry morokov disrupted energy supply in the kursk region, they promise to install in the afternoon this was announced by the ministry of emergency situations wit

haidi: the first major central bank to pivot. is this desperation. guest: may be some breathing room. some of us going on politically, economically, calls for the u.k. chancellor to be replaced, wants to stick with tax cuts. against that backdrop, looks more like desperation because of what has gone on over the last couple of days into a space where it's going to affect everything else. creates credibility problems. i put them in a similar bind were japan has had a crash and currency. the problem is that u.k. has a smaller backstop when it comes to foreign exchange reserves, does not have local investors the way japan does. it's part of the picture were central banks everywhere are facing difficulty because they are determined to fight inflation by crushing demand. shery: not necessarily an inflation story in china, we are seeing the pboc as a reluctant player. guest: the pboc has been trying to slow the pace as long as the fed continues to raise rates. china's economy means lower borrowing costs. that dynamic will push the renminbis down. i don't th

central-bank including the fed are spreading around. >> so much speed coming from central banks aroundthey are talking about the most effective tools to fight inflation. what did she say? >> there are a whole range of variables at play. the ecb was just making the point. right here, right now, the main tool is raising the cash rate. that probably would have been kickoff qt. her main message was the ecb inflation. >> let's look at what is happening in the u.k.. the bank of england and the treasury have failed in a bid to call financial markets. danny is a former member of the monetary policy committee. >> this was october the sixth. if the eight members say you have made an announcement, the say you don't get the fed market policy. your statement is not represent what i think. maybe that is what is going on. if it was me, i would have said you don't get to speak to me. i want to know what my colleagues think. that is very different than the government that is under considerable political pressure. i am assuming the government doesn't want to ways -- raise rates. there will be huge press

in what part of the central bank will they make a decision?s shows their independence from the executive branch, but, in what andrey leonidovich says, i think there is a lot of reasonableness and, of course, we live in special conditions. and uh, again we are now in a period where chris appetite needs to be treated completely differently, but this is a serious discussion between the government and the central bank of the russian federation to act on investments. as it was impossible to say yesterday, uh, to these investors who come and say, i will no longer bring 20% ​​into the project. and suddenly we hear such, so i often hear arguments, but how do they have billions of rubles accumulated in their accounts, which they previously paid in themselves. like dividends. yes, but they paid themselves as dividends, and today more names want to take risks. you see, these are all the time some kind of semi- arguments that really have nothing to do with the investment process investment business, everyone needs to take so many risks to open. how much c

central banks had to do the heavy lifting. we are now seeing fiscal policy measures put in place to deal with the energy crisis, i think central banks do need to fight inflation expectations from becoming unanchored and if anything had the latest projections from the ecb for example, they still have significantly -- inflation expectations including core inflation. i think it makes a lot of sense for them to frontload their rate hikes. what we have heard on the messaging was that they are only looking at still going beyond where they see the neutral rates in the 1%-2% range. in europe, it will still take some convincing for the markets to believe that will be enough to fight inflation and if anything i think the market has moved to a place [indiscernible] francine: what can you tell us about what the fed does next? is it impossible to find a neutral rate given the complexities of the economies right now? semin: if anything we are still seeing a resilient growth picture in europe and the u.s. while the market has jumped on this

the tone for other central banks doesn't have several businesses outside of the state. so. so be taking note of today's decision. yeah, clearly i mean, you will see that quite often that when something had been sent the spades and specially walter was the federal reserve firm. other, a central bank so follows you would actually, i believe this week, a load we have about 12 to 13, a central banks around the globe who are toying with some increasing and their rates into a certain sense. i mean, they, they have to because the wider the gap between rates in the united states and somewhere else and a planet, i mean, that pushes earl or ports a lot of capital into the u. s. system and other countries. one, bed capital 2, and then also when we talk about term bit higher rates in the u. s. and 3rd, the effect that that has on the dollar that clearly is also affecting our business . so somewhere else around the globe, maybe one little positive effect that those rate increases. might have you see that quite off the higher dollar as the more or, or the, the, the bigger the drop in com

we are allowing support for the action from the central bank hawkish moves. dollar/yen move. the interaction from the bank of japan on the back of the dovish meeting by the central bank in the opposite view against other banks hawkish. it is staying loose. you see them step in the market. that is impacting at 1.42% dom. >> karen tso, thank you. >>> let's dive into the rate hike and market reaction with greg hahn. chief investment officer at winthrop and alfred romero at impact analytics alfred, we'll start with you on the bigger picture move. we got what was expected the futures market priced in 84% chance of 75 basis points. take us through why the markets reacted the way they did if the economic narrative hasn't changed from jackson hole, wyoming? >> you are right the federal reserve ended up doing what they were doing ahead of time. they were going to increase the rate by 75 it has to do with the change in posture and by telling us they will not only continue increasing the bond rate more, they will continue to do so until they see clear signs inflation is recedreceding. >>

the central banks here and other central banks are signaling more rate hikes.he ongoing track in the property market, property partners in australia are pulling 4%. you are going to see a way to go. that will provide opportunities for investors, it may be a bit too early two hunting for that. they are not prepared to dig deep into the property markets that have stayed hard. on average i think it is a bit too early. paul: the head of investment strategy at amp. get a round up of the story that -- of the stories you need to know. go to dayb , it is available on mobile and on the bloomberg anywhere app. customize so that you only get news on the asset that you care about. this is bloomberg. ♪ paul: quick check on the headlines. catl says the lord's plant in china is operating a factory bubble. the population of 4.6 million are to stay home in what officials described as a severe covid situation. there are the main battery supplier for tesla in china. walt disney spinning off's espn, the ceo says he looks forward to seeing espn have synergy as part of disney. t

mark: central banks are a bit smarter.y do not usually host specific targets in front of traders and tried to push the rates beyond that. that was on the problem of the exchange rate mechanism. in the case of the pound, the pound gets a bullish market, and when it reached trading day, the central banks got all of that from germany and it was supposed to step in for the currency to re-stabilize it. but then we have a limited exercise on how we go for that and even central banks have currencies falling through the ford -- floor and the traders knew that. so the traders got emboldened and they kept on selling until central banks gave in. dani: i have got to push on the second part of manus' question. ken what -- can we draw any corollaries today to the weakening of the pound in 1992? mark: it is fundamentally tied to a weakened economic situation. we can see that the monetary policy and the fiscal policy were not lined up together, the state of the economy did not deserve the pound as strong as it was, and there were risks ah

today the central bank lowered the key rate again from 8:00 to 7.5% more business news .central bank for the sixth time in a row lowered the key rate from 8% to 7.5 . how the central bank at the end of february abandoned the rate at a level of 20% he lowered it three times in a row by 3% points, then twice removed another one and a half percentage points. and now the decline of only half of the central bank explains the rise in prices in russia is slowing down in july annual inflation was above 15% in august 14.3%, and here are the latest data 14 and 1/10. true, the central bank immediately clarifies that this is largely due to the fact that prices continue to correct after the rise in march, the ruble rose, and demand from the population is restrained, because real incomes in russia attacked, and they are determined to save, on the other hand , notes that external conditions for the russian economy remain. in addition, the central bank gave a signal about the very further movement of the key rate, if, following the results of the last meeting, the central bank announced

but we do have the central bank of china, we do have the european central bank and the bank of indonesiaquite what do you make -- >> what do you make of danny's comments? saying that they are guilty of groupthink. the global central vans or hiking, it is not hard to imagine. i think the fed in and of itself is becoming a single mandate central bank. that in and of itself is not a groupthink behavior. that is how chairman powell is basically doing what they did in the 80's. i think there is definitely what the inflation data is showing. there is just no way at the fed can actually go away from this on the fed hike cycle. >> how much further will they go in terms of raising rates? will they continue to do something? >> the inflation is actually -- essentially means that the session has to take old and the soft landing cushion is safely removed. how are the recession will be, that will be how high the rates will go. at this point, there is just no sign, if you look at the recession risk, it is not the quick recession we are heading into. unless that becomes the central scenario, we do think

our central banks now in stock mode? is this shock and awe we are about to see from the bank of england? certainly today we have seen zig for can repricing in the u.k. tenure. we are up by 18 basis points now, it significant selloff at the front of the curve. what is interesting is the dollar is still on top which is absently fascinating. the fed is still preeminent in all of this. alix: you see that in the u.s. with equities still selling off. the s&p down 1%, although off the low, but just barely. the worst performing stock in the s&p is ford, warning they are still having supply chain issues. you are looking at suvs and trucks, so that is going to wind up hurting their earnings. they still see a pre-positive end of the year. the market not buying it right now. take a look at the bond market. you were mentioning what was happening in the gilt market. the 10 year up by nine. at a much is where you are, but the 10 year real yield is what i wanted to key on here. another five basis points higher , 1.18%. we have not seen