christine lagarde said there is a targeted key.s was for banks who lend to small and medium enter prices and it will continue to be the case even when these hikes have ceased. guy: how high do you think they will have to go? this is front loading. what does that tell us about what the terminal rate is? >> no one knows. they will admit it and they won't be more specific about it. there were some comments from the french governor that neutral rates would be 1% or 2% and hawkish members believe it will be above 2%. i think the broad conditions will dig date how fast we can go. they might get to 5% at the condition is not very high at the moment. alix: christine lagarde seem to say that the bond market has it right right now. are they worried at 4%? is this a danger zone for the ecb? >> it is but i don't think there is a sense of panic. they have put their money where their mouth is and they've used flexibility of the balance sheet and that's very telling because they don't want to use this new tool. some political issues with probably

guy: ecb president christine lagarde on a conference in frankfurt. the euro went down.et's talk about what's been the single currency. joining us now, mr., if i told you a year ago or two years ago the ecb was raising rates by 75 basis points and sounded as hawkish as christine lagarde did and the euro would go down, how surprised would you be? mr.: very simple -- esther: i would've been very surprised. this was normally priced in though, the debt managed to shift interest rate expectations. it somewhat more frontloading. it still clear that the risks are tilted to the downside. alix: what is the downside for the euro? esther: what you see now today but also there was a lot more aggressive ecb was priced in. clearly the economic downside risks and we are not only looking at downside risks but also the effect on higher energy prices. this makes energy relevant because higher energy prices on the trade affect. >> are you surprised that the euro is a strong as it is. >> i do not see that much more of downside in euro-dollar. it goes somewhat lower but not significantly bec

christine lagarde will speak afterwards.has made an unannounced trip to ukraine, arrived in kyiv today with a meeting with ukrainian officials. it is his third trip there as the war with russia began in february. the pentagon has said -- sent ukraine artillery shells according to budget documents that show the u.s. military is spending $92 million to replenish its stock. it costs around one hundred thousand dollars. there is one major surprise at apple's latest project unveiling, one of the worst years of inflation in decades while the company is not raising prices. apple introduced the new iphone 14, new airpods earbuds and apple i watch. the iphone similar to the older version with an improved camera and satellite messaging feature. global news 24 hours a day, on air and on "bloomberg quicktake." powered by more than 2,700 journalists and analysts in more than 120 countries. i am lisa mateo. this is bloomberg. ♪ jonathan: an update on the queens health from buckingham palace moments ago. a statement, following further eval

christine lagarde hints at more hikes to come. jay powell says fed officials will not flinch. i'm francine lacqua in london. all of the attention focused on the passing of queen elizabeth. >> yes, good morning. britain's longest-serving monarch has died at the age of 96. they grieving nation starts to come to terms with the end of an era. she reigned for seven decades working with 16 prime ministers. for the united kingdom and much of the world, queen elizabeth the second defined the latter half of the 20th century. king charles iii takes to the throne. francine: i know it is so moving and you are there in front of buckingham palace. seeing these wonderful and heartfelt pictures of people leaving flowers, what is it like there? anna: yes, we are surrounded by the world's media, as you might expect. the passing of one of the most famous woman in the world, one of the most recognizable women in the world. in britain, many people still find themselves quite shocked at the news of her being monitored carefully by doctors and then things move very quickly. it wasn't until just afte

doves right now on board with, as christine lagarde said, having to front load make it clear that you are serious, as one of our earlier guests said, restore your credibility after you got so far behind the curve. investors pricing in a 40% chance of another 75-basis-point rate hike in october. haslinda: we also heard from powell who said the fed will not split until the job is done. kathleen: so many are seriously considering it, just waiting for a little more data. let's listen to what jay powell said. >> we need to act now, forthrightly, strongly, and keep at it until the job is done. we think we can avoid the kind of very high social cost that paul volcker and the fed had to bring into play in order to get inflation back down and set us up for a long period of price stability. kathleen cullinan let's remember, when he talked about paul volcker and that period when paul volcker had to work so hard to get inflation down, he also had to realize that he stopped hiking rates to quickly. jay powell particularly mentioned not moving prematurely, so don't be looking for a pivot any time s

zoe shave ice will give us the latest comments from christine lagarde, and juliette saly will digest market moves in asia. let's get nor -- more on crazy u.k. guilt moves. we are joined by bloomberg's paul dobson, yesterday, was it orderly or panic? paul: a bit of both. it was a step change in yields across the gilts curve. that sharp adjustment was needed to take into account the fact that government measures are going to push inflation higher and force the bank of england to go harder to contain them. i guess the market repriced almost in the blink of an eye. there wasn't much chance for panic or people to get out, it is more taking that one on the chin. when you look at the performance of gilts, the past five days have been epic, this year u.k. bonds in general have lost 27%, in sterling terms 40%. they'd about the effect on savers holding onto them as a safe place to full cash, that is a damaging wipeout. dani: it is while do think that at the end of last year 2-year yields in the u.k. were under 1%. we are trying to digest u.k. moves but we saw spill off into the wider market, d

what was the message from chair powell and christine lagarde?ey are 110% committed to that inflation fight. they are not going to back down. forget about pivots. forget about a central bank that is going to worry about it recession. definitely keeping the 75 basis point rate hike firmly on the table, saying they are going to keep this fight until they win. >> we need to act now, forthrightly, strongly. we need to keep at it until the job is done. we think we can avoid the very high social cost that paul volcker and the fed had to bring into play in order to get inflation down. -- long period of price stability. >> he's alluding to what people consider the misstep paul volcker made. they thought they were getting inflation under control, so they started slowing down rate hikes. guess what? they had to go back in the fray and raise even more, causing a deeper recession. jay powell also said they are going to put their decision on the back of the totality of the data. that puts a lot more emphasis on the cpi's, if there was not enough already. the

plus, christine lagarde says the ecb will only think about tricking its balance sheet once rates are normalized. -- shrinking its balance sheet once rates are normalized. francine: a lot in focus today and we have a fantastic story. the perspective saying that we have the worst bond rout we have seen intensifying. tom: that is rippling to the housing market, everywhere else on the back of this. essentially history making when it comes to the selloff we saw in gilt yesterday. it moved about 50 basis points higher on the front end, so we will see how it will open up in the bond markets. the ftse 100 posted a more positive day yesterday even though the european benchmark is lower. the beneficial -- international focus benefiting from the weaker pound. the spanish ibex currently gaining 0.7%. the u.k. sees gains of 0.2%. we are weighing up what happened yesterday stateside as well, talking about history making bond moves. you also saw some significant selling of u.s. treasuries at one point. it was almost a 20 basis point move on the benchmark. that was reversed somewhat in the session t

as for christine lagarde and the ecb, it was considered a tossup.e an energy crisis, yet they have high inflation. >> the governing council today decided to raise the three key ecb interest rates by 75 basis points. this may set front load the transition from the prevailing highly accommodative level of policy rates toward levels that will ensure the timely return of inflation to our target. >> just as important if not more so, she said they see more hi hikes as needed and importantly it wasn't just the hawks pushing the doves in that direction. the doves are on board also. >> not a done deal. before this meeting before we heard these remarks and saw the kinds of things we were seeing in their statement, people were not expecting it but they are now. >> global economics and policy editor kathleen hays. let's bring in our next guest. kathleen just explaining jay powell doubling down on the hawkish rhetoric. the markets are rising. our the markets second-guessing the commitment of central banks again? >> i don't think they are. i think the markets fin

you do not envy christine lagarde. that is a huge amount of different challenges that the continent is trying to deal with. let us take a more closer look at how all of this is playing out across markets in different asset classes. let us talk about the fx market reaction to what we see as we look at the energy crisis in the eu? >> we have seen the ramifications of what happened on the weekend play out. most significantly in the euro which is down against the u.s. dollar this morning and as you mentioned, we are going to meet this week. there are expectations of a 75 basis point rate increase. that is not going to be enough to assure up the euro which has fallen below parity. as you mentioned, they are trading that fine line with what has been going on over the weekend. as a worsening energy crisis, fitting into fears of a recession in europe and of course anything like that going to have far broader impacts across markets. the euro is the main thing or we have seen the main as it were we have seen that play out this m

we have comments from christine lagarde and what is happening with the italian story.l and leisure is up, technology is up, the car sector is having a good day. we will talk about volkswagen in a moment. the bottom of the market retailers and insurers. that is the yield story. let's talk about individual stocks. jope will be stepping down at unilever, the stop responding reasonably positive. volkswagen looking like it will price the porsche ipo at the top end of the range. let me show you one of the use k -- one of the u.k. households, the prospect of higher rates steering this market. alix: i am seeing a headline that says the boe andrew bailey is monitoring elements and financial markets very closely. i'm not sure where that is coming from but i wanted to alert you of that and says he will not hesitate to change rates by as much as needed. i'm trying to figure out where that is coming from but it looks like we are getting the beginning of verbal intervention. speaking of verbal intervention, ecb president christine lagarde says the central bank will continue to incre

lisa: jay powell, conversation christine lagarde and of course, st. louis and minneapolis, what are they all going to say that is going to change the perception? basically health in the market, strength and resilience. the chief economist from the bank of england is going to be speaking today. we saw the stock going to act in an emergency kind of measure just yesterday. house price data at nine, and then send data at 10:00 a.m. housing prices, how much are we declining given the lack of volume? given this feeling that perhaps people are not as willing to pay these prices. i didn't mention yesterday the auctions and i regret it because yesterday's auction was actually working to markets moving. how much demand is there for five year yield in the highest level to bring back financial crisis? jonathan: i find those charts to be absolutely amazing. through the pandemic and out the other side, almost vertically. lisa: i do wonder if we are looking at something that is a five year treasury yield or bitcoin. jonathan: thank you, looking forward to the auctio

rishaad: meanwhile, the european central bank president christine lagarde, saying that the economic council will only consider shrieking into balance sheet -- shrinking its balance sheet. the debate about quantitative tightening will be held when rates reach neutral. four point $8 trillion worth of bonds were bought during the latest recent crisis. vladimir putin has granted citizenship to edward snowden, the former nsa contractor who disclosed a top-secret spying program in the u.s. snowden has been living in russia for nine years, and obtained permanent residency in 2020. he leaked classified documents that showed how the u.s. and british governments monitored communications of citizens not suspected of crimes. japan is holding a state funeral for former prime minister shinzo abe, it the current leader fumio kishida's decision to spend millions of dollars in the ceremony, is met with anger by households grappling with inflation. among the attendants will be vice president, harris and the presidents of india and australia. those are your first word headlines. david: just ahead, we will be

christine lagarde will focus on the messages for europe. front loading those interest rate hikes which means the economy perhaps can get central stability going through the rest of the year and only increasing rates. speaking to analysts, that will be the case front loading the hikes. we will see a few come through before the end of the year economies may begin to flat line by the end of the year france expected to have zero percent growth the last three months of the year in that final quarter. how exactly the interest rates situation is laid out from christine lagarde later today will bear just how much pain the inflation pressure has put on the rest of europe >> arabile, thank you. we are awaiting that decision. >>> let's get a check on this morning's other top stories. pippa stevens is here with us. >> good morning. the chinese city of chengdu extending the covid lockdowns. rules were expected to be lifted yesterday, but officials late in the day said the virus some are. of the 21 million residents, 16 million are under lockdown a numbe

finally this evening, the ecb president christine lagarde will give a speech.ext, we will talk about whether the strength in the dollar can continue, what you should be looking for in this very busy week. we will be speaking to the commerzbank fx strategist on all of that. plus, back to business. the 10 day grieving for queen elizabeth comes to an end. stay with us for that. this is bloomberg. ♪ >> they have been less eager to really stimulate this time. that may be good further economy and for the long run, but it means for the world, you have the number two economy that is not really jumping forward. that puts more burden on the u.s. the runway for the government and the central banks to go is the focus more on production. how do you get more things out of the economy? that makes -- that means you won't have to do as many rate hikes. dani: world bank president david malpass giving his thoughts on the inflation problem in china. it is a big week for central banks. in number of players had to reveal their latest rates. first, it is the turn of sweden's bank whi

christine lagarde will be speaking.h do you get the sense that they are committed to these potentially rate hikes that they are all but committing to. rafael bostick around noon. do they talk about the dollar? how concerned are they about weakening, the ramification of very hawkish rate hikes? jonathan: he just laughed. lisa: uncontrolled laughter. it really raises this issue of the tension between the real leadership and all of the noise around the message. jonathan: you think it is noise? lisa: here is the issue. it is noise that you have to pay attention to. try to influence the conversation but don't necessarily pay attention to the conversation of the leadership. what does that do to the credibility of the fed? jonathan: entirely agree. staying awake all weekend waiting for aaron judge to do something he never did. one good week right now, what is it? >> one good reason to be bullish is that we he g to the point ata minimum to provide some balance. it is really transitioning from an environment where folks are real

i know that the forest is once a powerful , strong leader, a female leader and as christine lagarde once said, if you want to achieve a result and solve a problem, call a woman and i hope that this will also have its effect . she has support in the parliament, she formed a powerful government, she left key people such as the minister of defense in the government, and moreover, even in the pre-war period, i am responsible for euro-atlantic integration, they were responsible for building a system of state stability in various conditions, including in conditions of full-scale war has always been this model, that is, it is the basis of the functioning of state institutions, which are unshakable, so there are no doubts. we, on the contrary , are already thinking for ten years ahead about how we will build our relations on the basis of this basis which we have already built now, in your opinion, in general , the european union has done enough to restrain russia's armed aggression against ukraine. but i would not divide them, then again, these are almost the same leaders, yes. that is, we have

ecb's christine lagarde reminded everyone it is the role of government not the ecb to find energy trades. it is to provide liquidity to banks. everyone seems to agree that the energy traders need a financial aid. the fight starts next week when the commission president sets out concrete measures for legislation. one week after moscow shut down its main pipeline in europe and moscow has been tinkering the amount of gas available to the european nations over several months now. it is getting increasingly desperate for the european union to solve the energy crisis that could become both economic, social, and financial. many of the nations are trying to get ready for winter with various reserves. resorting to add to their storage. they are not there yet. gas supply would not be restored to the north spring pipeline which is another maintenance fade after a sanction after the invasion of ukraine was lifted. increased fears that there may be some total cut off of russian gas? shery: we are seeing the price pressures across europe. we are hearing from the ecb president on the potential approach

european central bank president christine lagarde says borrowing costs will rise more in the weeks aheadrde says the ecb has taken steps to move on inflation and also said more hikes are coming in the next meetings. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom. tom: laura wright in london. thank you. coming up, investors in europe have nowhere to hide, and an energy crisis reduces the appetite for risk. this is bloomberg. ♪ dani: welcome back to the open. we are about 44 minutes into your european trading day and trading on a headline basis for the european stocks 600. we are looking at some of the dax and the cac that are moving lower. the ftse 100 is pushing higher given we are seeing a lot of energy companies up today. wti prices staggering about 3%. all of this surrounding the fed and continued geopolitical risks in europe given putin announcing my -- partial mobilization. what does this mean for the appetites of private markets and capital? we are joined now by vi

we heard this morning from christine lagarde to the governments that you need to be clear on what youuse otherwise we might have to do more and you might not like it. tom: jana randow, comprehensive on the ecb and the ramifications for what is happening here in the u.k. and the fiscal spending as well. let's get the bloomberg first word news without atkins. alice: hurricane ian is regaining strength across the atlantic and is set to make landfall in south carolina later today. that after leaving a path of destruction across central florida, destroying homes and the power grids and leading to unprecedented floods. power was knocked out to more than 2.6 million homes and businesses. abc reports at least nine people killed. president biden has denounced russia's plan to occupy regions of ukraine. moscow says it plans to apply what it calls treaties in ukraine's east today. this after the annexations were condemned as illegal by the united nations. hsbc is considering relocating its headquarters in canary wharf when the lease expires in 2027. the bank is aiming to create a more flexible w

what a decision that is from adam lagarde followed by a press briefing from christine lagarde and on friday, eu energy ministers will attend an extraordinary meeting in brussels to discuss an emergency intervention and electricity markets and eu finance ministers meet in prague. a busy week for officials in brussels as a wrestle with the cut off of gas from nord stream 1. let's check back in on the single currency. the euro declining below 99 u.s. cents for the first time in two decades. it drop of close to 0.7%. the weakest euro adding and exacerbating these inflationary pressures. the ecb will make its rates decision on thursday. the market is pricing in 70. let's check out the european futures. a drop of more than 3% as markets weigh that energy shove. it will be a brutal day for european equities. coming up, the julius baer yves bonzon. and later, we will have more on the race to become the latest uk prime minister and the mounting economic challenges facing whoever takes up residence at downing street. this is bloomberg. ♪ >> we are convinced that year, if -- the level of inflat

where christine lagarde sees the long run rate relative neutral rate. expect to have to tighten and be in restrictive territory to bring inflation down. we may not get a sense of that given dave been clear they are not looking too far ahead. secondly i would be interested to see what their conversation is around quantitative tightening. there's not much chatter about that in the euro zone and there is a question of whether there should be quantitative tightening given dave -- given that they are hiking rates so much and are rallying to fight inflation as their top priority. should they be reinvesting everything, maybe we will get a hint of that tomorrow. we may have to wait a bit longer though. guy: we are seeing a lot of policies out of london and paris and brussels, out of berlin to try control the energy crisis into winter. if we get a cold winter it's going to be difficult in europe. the problem at the moment is there is limited efforts to reduce demand. we heard them speaking about this earlier on. the danger is there's a lot of money for winter, w

nothing yet. 75 basis points hike, christine lagarde today talking about qt.but getting there. a lot of moving parts in it europe, trying to digest it all next. -- will join us in the next hour, europe's analysis -- to give us her analysis on what is happening. the close is next, this is bloomberg. ♪ millions have made the switch from the big three to the best kept secret in wireless: xfinity mobile. that means millions are saving hundreds a year with the fastest mobile service. and now, introducing, the best price for two lines of unlimited. just $30 per line. there are millions of happy campers out there. and this is the perfect time to join them... add a line to your existing plan, or see for yourself how easy it is to save by talking to our helpful switch squad at your local xfinity store today. guy: monday the 26th of september. european stocks fairly mixed. the action is in the bond market and foreign-exchange. we will talk much more about what has been happening. the countdown to the close starts right now. >> the countdown is on in europe. this is bloo

we will have comprehensive coverage of the ecb rate decision and christine lagarde's news conference at 1:15 p.m. u.k. time, stay with us for that. in the u.k., liz truss is revisiting calls to fund energy support for a windfall tax on companies. truss was grilled during prime minister's questions yesterday. she seemed to change her tune when it comes to windfall tax after the p.m. cues. what should be our take away? >> we were all scratching our heads. opposition leader cure starmer -- kier starmer went in on that saying if the windfall tax continues at its current rate the treasury could rake in tens of billions of pounds that could be used to fund policies like this. later in the day truss seemed to go back on her opposition to the windfall tax. perhaps what she meant was she would not be open to increasing it or extending it to include the power generators. it does raise a number of political issues. even some of her closest allies have warned that it was amateurish to be ruling out tax rises during the campaign. on top of that, a 200 billion pound package as documents seen by bl

compared to how christine lagarde has talked about the economy and how they are going to move forward in the past, listen to how definite she was today. >> the governing council today decided to raise the three key ecb interest rates by 75 basis points. this major step front loads the transition from the prevailing highly accommodative level of aussie rates towards levels that will ensure the timely return of inflation to our 2% medium-term target. kathleen: front load from that highly accommodative policy. very definite. she is acknowledging that we have to speeded up. you mentioned the slowdown in the european economy. all the downgrades for these various countries are quite dramatic is it a recipe for stagflation and what they hoped means of bringing down demand, bringing down the pressures that are helping to exacerbate the other ones like supply chains, commodity prices they cannot stop from rising, etc. that is what they are getting at. it is also interesting that bloomberg reports having spoken to people i assume inside these discussions that it was not just the hawks pushing t

. >> i think christine lagarde wanted to believe that for a long time and they just kept seeing inflation rates skyrocket and everybody else doing 75 basis point hikes. peter, what does it mean ultimately for europe? what's the prognosis there, and what are you doing at lazard in terms of business with all of these forces hitting at once >> well, the macro situation, again, particularly in germany where the hard stop on russian natural gas is a significant shock. combined with the fact you've got a climate-driven crisis on water and very low levels on the rhine and others is that it's very hard to ship coal to help substitute away from russian natural gas. so for now in terms of deal making, i think europe, the microstory is actually still quite active and optimistic, but the macro story i think is pretty dire. that brings us back to both monetary and fiscal policy. >> do you think that the u.s. is also facing recession? >> this is a path here look, let's just be clear, if the fed wants to or needs to create a recession in order to disinflate sufficiently, that's what will happen it is wi

let's listen to the head of the european central bank, christine lagarde.e eurozone, affecting all areas of citizens' lives. the latest euroborometer polls show that two out of three citizens consider inflation to be one of the most important issues at the moment . expected to get worse before getting better. sergeevich interesting recipe yes , the situation will worsen, first of all, than to become better. well, you still need to pay attention to the appearance christian lagarde her diamonds, okay, so to speak about food. actually. e from friday, starting. here, such a wave of economic events took place precisely on the news, which actually confirms what we have been talking about for quite a long time, uh, the fall is actually the economy of the european union, the economy of the european union is in the hands of the united states in the first place, uh, european enterprises are curtailing production due to high prices. energy carriers are curtailing their production and transferring them to the usa, that is, by by and large, what trump was trying to achi

it appears they're not good at that job in europe, it's still many of the same, christine lagarde. like the same names for the last five or ten years. do you think that the market has confidence in these people does the market -- should the market have confidence in these people, who were there when things went awry >> i think we're right to be looking at what central banks are doing with a lot of attention, because what they will be doing will be key in determining the global outlook and the pace of the slowdown even if it adds pain in the form of slower economic activity. that's really the goal of most central bankers today, is to curb demand. as we know, they have very little power in terms of reestablishing supply. they're weigh on demand. the question is, how capable of they of managing a soft landing in this environment. >> i want to go outside of that. you know what happened with the pipelines this week. norway is flying fighter jets of some of its oil platforms in the north sea today. jpmorgan chase came out with a note i'm going to summarize it, read one line from it the d

comes to interest rates, so it would be a 75 basis points hike for interest rates, that move by christine lagardeay from negative interest rates and no more zero interest rates and the question is prior to this, how does this mean, will people be able to refinance and find more favorable rates and it will get interesting. >> and lastly, twitter has agreed to pay roughly $7 million to the whistle-blower whose allegations will be part of elon musk's case against the company in his ongoing dispute about whether he will purchase it or not. tell us a bit more about that settlement please. >> the story gets worse and worse for twitter, and it is confirmed $7 million is the settlement price for the whistle-blower who had the information, and he said that twitter did not have the kind of security measures that they needed to put in place in order to not get into security issues. so the security plan not necessarily in place. and made misleading statements about their defenses on hackers. and scam accounts as well. and he will meet with the u.s. judiciary committee on december 13th to discuss more of thes

vonnie: ecb president christine lagarde's is the governing council will only consider shrink the balancinget onto has lowered rates. interest rates remain the appropriate rate to fight inflation and the debate about quantitative tightening will be held. the ecb is holding about $4.8 trillion of bonds bought during the recent crises. the new zealand central bank governors says there is still work to do. they told an audience that the inflation rate is too high but still lower than other countries. forecasts suggest the bank may hike rates at least 4% by early next year. the inter-american development bank has announced its new president. governors voted to fire over an alleged romantic relationship with a top aide. the u.s. supports the dismissal. the idb is a key part of u.s. influence in latin america. japan will hold a state funeral on tuesday for former prime minister shinzo abe. the current prime minister decision to spend $12 million on this are money has been mint wit -- has been met with growing anger. among those attending will be u.s. vice president kamala harris and the prime mr.

or is he trying to overshadow christine lagarde?line, it is unclear what will be more important for markets, the ecb meeting tomorrow or friday with the energy ministers from europe on the energy crises. to me, that might be a bigger market mover. jonathan: could not agree more. if you could tell me what will happen to gas prices, kailey leinz, i have a much better actor of what next year looks like -- i have a much better picture of what next year looks like. kailey: it is whether that will actually materialize. there are questions about how they might be able to rein in demand, allowing people to potentially for more electricity. the problem in the u.k. is something that lists stress -- liz truss will have to speak to in parliament. jonathan: good luck. i think it is an occasion where circular storm -- where sir keir starmer has to let the prime minister talk. lisa: would you want to be prime minister right now of the united kingdom? jonathan: i used to think theresa may had a tough time when she became prime minister, but perhaps

it is a region at war and christine lagarde and the leadership will have to deal with.hat you will see is currencies give way and what the germans fear most, this is my first question. the heritage of europe and declining incomes is totally different than the new world optimism. jonathan: from new york city, futures up half of 1% on the s&p. nasdaq up. there was an ecb rate decision coming up later this week on errors they. chairman powell is going to speak at a conference at 9:10 eastern time. make sense of that. futures up half of 1%. this is bloomberg. ritika: the u.s. justice department is deciding what to do next in the case of those documents taken from donald's home. a judge granted the request for a special master to review the documents. justice department has not said whether it will appeal. in the u.k., energy bills at or below the current level. cost as much as 150 billion dollars over the next 18 months. planning a 46 billion dollars support package to lower entry bills. one of the suspects in the stabbing death of 10 people has been found dead. they also b

. >> christine lagarde, the ecb president. this is bloomberg surveillance.ity futures are down 4/10 of 1% on the nasdaq. we are down .8%. the main event is in the u.k.. the bank of england is announcing a guild market operation to buy bonds at the long and. yields are down by 40 basis points. that is 4.8%. a big statement from this bank. there are couple of things here that i guess don't add up to some people. the purchase will be carried out on whatever scale is necessary to affect the outcome. then in the final paragraph, these purchases will be strictly tied -- time-limited. can you reconcile those two things? >> that's a key question. i don't want to walk into a time of this, but this is the x axis. these banks are all worldwide. there were more combined right now. i would point out for our american audiences, the u.s. yield comes in as well. why is that happening? the bank just blinks. when will the fed blink? >> that's the question being asked. who is next? for working with a producer out of london. >> i did know you are on speaking terms. >> it is now

seized on it the question of the morning, joe, if the european central bank joins the 75 club as christine lagardeon and euro trading at parity to the dollar threatening to import more inflation fed chair jay powell is in a better spot with the dollar surging against most major currencies being ahead of the peers the bank of canada is ahead of the u.s. ahead of major central banks. ecb can go either way. the dollar is a factor the key is financial conditions. how tight are easy money in the economy? it was a loosening of conditions in the lead up to the jackson hole conference. jackson hole index that led powell to the speech with the talk from fed officials including powell led to the renewed tightening that is the dip and surge at the end of the graph there that seems to be more in line with the fed's outlook look at the fed market rate outlook. fed and market are closer than they have been futures market pricing in 3.80 by year end. that is where the fed's projection and going up to 3.90 by april the fed sees 50 or 75 in september is less important than the destination. that is the restriction