christine lagarde says she does not foresee the u.s. default and on its debts, saying such an outcome would have dire consequences around the world. >> i have huge confidence in the united states. ever since my year in this country, this city in 1974, i have had confidence in this country, and i cannot believe they would let such a major disaster happen. tom: christine lagarde speaking on risks around the debt ceiling. let's bring kristine aquino. good morning. the argument for many is that the u.s. will not default on its debt, they will never cross that line. some say the politics have changed. what is the risk factor? kristine: it is the politics that could be the wild card this time around. this is our drama we have seen time and time over the last decade with this argument over the u.s. debt ceiling between republicans and democrats, and you are right. it is the polarization of those two parties that could push us to the brink yet again, but interestingly, markets are not necessarily paying attention to this. this is the sort of si

christine lagarde has had a fairly strong backing from the governing council for the decisions they havee. last month was a different story, we had the banking turmoil and everything else and she came out with a pretty hawkish message. as you remember, they hike. lagarde herself said three or four members disagreed with her. we are seeing more of a tonal from the ecb governing council in terms of finding an end to the rate hiking cycle. since friday, governing members from france, greece, lithuania and croatia have pushed that theme. we're nearing the end of the tightening cycle. i expect we will be finished with interest rate increases soon. that is falling from the meeting -- evolving from the meeting last month. dani: even simkis, who is not known to be a dove. michelle, thank you so much. bloomberg's senior asia economy editor in singapore. enjoy your long weekend, i'm sure you will be tied to a terminal looking at those labor figures today and tomorrow. let's get our bloomberg business flash. >> hedge fund tiger global gained more than 7% in the first quarter thanks to a rally in te

moreover, because of the competent actions of our economists and like christine lagarde a month ago.el praised the head of the russian central bank or vera nabiullina russians managed to avoid the most severe consequences of sanctions, we all know the head of the central bank in russia, she is not a trained specialist. we know her from international circles. you know, for many years, she attended the meetings of the central banks, and they responded well. uh, how about a techie. she is very knowledgeable and smart. so she will do everything so that the russians avoid sanctions as much as possible. in the context of western sanctions restrictions and import exports, the fall of the russian economy last year was only 2%, that is, less than predicted from foreign analysts, even domestic analysts, and this year they generally expect economic growth, at least by a percentage, without breaking russia's economic west continue to pump weapons to ukraine. what the false zelensky did not fail to mention and pavel warmly supported him. there will be only one winner who has a big run. the big gu

better known, like lexus barely a month has passed since the head of the european central bank, christine lagardesensational revelation of the alleged president of ukraine vladimir zelensky, as her colleague, the chairman of the us federal reserve, jerome powell, already voiced the uncomfortable truth. it is he who determines monetary policy the us central bank is on the list of the most influential people in the world. this building was ranked 11th by forbes expecting interest rate cuts, but back in 2018 the white house criticized it for tightening monetary policy now due to the global crisis. fed. forced to take even more unpopular measures. last year. we historically raised our key rate sharply to slow the growth of the us economy and at the same time bring inflation down to 2%. but this is not enough. therefore, soon we will make two more rate hikes of 25% points. think, keep this level for a long time thus the key rate in the us in the near future will be five and a half percent for the last year. it has grown steadily, squeezing the already troubled us economy, which has just begun to recov

christine lagarde, who, as it turned out , does not see diplomacy among the way to resolve the ukrainian conflict this thought, revealing the whole essence of cynical politics. of course, the west liked paula. it turned out, yes obscene brief sounds good. i like it, the authors of the revealing material confirm. this capacious phrase expresses the main principle of the american any financier or economist cannot, in principle, support such an interpretation of the foreign policy course, since it is, well, unprofessional, at least, because love is a financier. he understands that all his activities. it is not related to politics, of course, it is beneficial for the united states for ukraine to win, so that later ukraine would pay off these loans. they do not even provide for such an option that they lose another conversation. with a western politician proved to brussels, washington has never sought peace since 2014, when it was just born ukrainian conflict, they needed to splurge on the eyes of a russian diplomat , only the principles of the wild are on their minds. the west has forgotten

rishaad: christine lagarde says she cannot imagine the u.s. will default on debt. the biden administration has looked at an impasse with republicans are seeking to lead an increase for spending cuts. estrella government's is optimistic that xi jinping's tariffs on exports from china could end by the end of the year. trade minister don farrell told bloomberg this could be resolved in months rather than years. india said it would buy russian crude near or past the opec+ -- the price cap if opec+ cuts the boost for costs. it is not for the population of one point 4 billion people. india imports around 80% of its crude and russia is no its top supplier. >> we have to look at prices which are going to be affordable for us. otherwise, we will be paying for more than opec can afford. rishaad: spacex will launch a deep space rocket on monday, and a successful launch could be a critical milestone for another manned mission to mars. once operations, starship will be the most powerful rocket ever built. yvonne: still ahead, a theory i'm's much awaited network upgrade finally.

important rate hikes there is more ground to cover as christine lagarde said in the last press conference. i could not agree more what is important to me is we went through financial market trouble and uncertainty over the last five weeks. we have to find out the impact of that and we have to wait for the incoming data until the next meeting in may and we will see >> the market was surprised the ecb still went for a 50 basis point hike at the last meeting because that was after the situation in switzerland arose after the u.s. regional banks issue. what was the message there from the ecb? >> i think the message -- it was not a surprise to me there is no contradiction with what we have to do on the price stability side we have different instruments to target the price issues and financial stability. it was an important message to the financial market participants that we are committed when it comes to fighting against inflation the 50 basis point step was more or less a consequence taking my assumption with no contradiction with financial stability and price stability. >> there could be a

>> i thought christine lagarde had a good speech in new york after the imf meetings where she talked about the estimates of what it would do on inflation and global growth. if you look at the models she quoted, i think she picked the least traumatic one. i think it is very difficult to imagine this could at least be worse. depends on the time theframe ano bad it is. you have to have a starting point and think about high inflation and less growth. >> i think policymakers are on board with that. erik, this also comes at a time where it feels as the world is put into so many different camps. economic camp or political camp and west response to the war in ukraine. a lot of people are talking about the beginning of the end of the usd as the end of currency there have been motions to move away from it bilateral deals with china and trading partners what is your take on what would happen to the u.s. dollar in coming years >> i'm less worried about this than a lot of people when you see it the dollar is a mighty currency. america is a mighty economy in economic terms, a buffer in terms of de

christine lagarde gave a speech about the unipolar world and what that means for central-bank independencebloomberg. ♪ 92% still active? seems high. seriously? it's just a bike. wait. they make a treadmill with an intuitive speed knob? yeah. want to try? 92% stick with it, so can you. start a 30-day home trial today. terms apply. i screwed up. home trial today. mhm. i got us t-mobile home internet. now cell phone users have priority over us. and your marriage survived that? you can almost feel the drag when people walk by with their phones. oh i can't hear you... you're froze-- ladies, please! you put it on airplane mode when you pass our house. i was trying to work. we're workin' it too. yeah! work it girl! woo! i want to hear you say it out loud. well, i could switch us to xfinity. those smiles. that's why i do what i do. that and the paycheck. this is bloomberg surveillance early edition with francine lacqua. >>

. >> i was in the meeting with christine lagarde and in the meeting said banks are solid we have seenhat happened in the u.s. and switzerland we can see the regulatory environment around banks is really set up. we have the capital requirements and liquidity in place that really puts us in a position we are, of course, always observing this closely the setup we have and framework puts us in a good position to not be too worried about this. >> croatia's central bank governor downplayed the role of the issues and talked about the differences with the u.s >> it went up with the crisis particularly with credit suisse and it is now coming down quickly. compared to the u.s., i see less of an effect on the banking sector and turmoil on the financial conditions in europe yes, financial conditions are tightening we see the banks are tightening lending standards. it started before we had the banking turmoil. it has different causes than the banking turmoil itself from the banking system problems, i would not expect for the time being seeing any evidence of significant tightening of financial con

i just put it to christine lagarde, these might be famous last words, i cannot believe they would let such a major, major disaster happen. i have watched a lot of [indiscernible] derek wallbank on the nailbiter which is the debt ceiling. tesla introducing price cuts to boost demand prayed let's get more with asia transport reporter danny lee. we are showing a beautiful red tesla on the screen. the question is wire they having to cut prices to sell more of those people red tesla's? >> elon musk really wants to maintain market share. he has a lot of competition, not just in the u.s. or europe, but in china where they are leading with a whole range of vehicles at different price points. and they are a lot cheaper fundamentally. so elon musk is chasing after the chinese who are nipping at his heels. you see it in the price cuts over the past to help love months that it is affecting margins. we still see double-digit margins which is pretty good, but you look at the cost of trying to maintain market share, there is a flow one affect as a result. but you compared it to earlier the u.s. and

christine lagarde says she doesn't see the u.s. defaulting on its debt.llow that to happen. saying it would have a negative impact globally. the biden administration is locked in an impasse with the republicans over government borrowing and related spending cuts. merck is to buy prometheus for $10.8 billion. it is a 75% premium to the targets closing price on friday. they are looking to strengthen its portfolio on autoimmune drugs as they face losing a key patent later this decade. richie sunak is expected to receive a boost this week. that is as inflation is back into single digits. it is hoping that the quickest rate of increase is is nearing an end. figures are expecting to show inflation dipping below 10% for the first time since august and a cooling in the labor markets. that is your bloomberg business flash. alix: really appreciate it. it is 22 minutes past 7:00 on the west coast. beautiful sunshine. silicon valley starts its morning. joining us is ed ludlow. spacex planned a launch on its starship rocket. it was scrubbed. what happened? >> there wa

ecb president christine lagarde says she does not foresee the u.s. defaulting on its debt. interview with cbs she said she is confident the u.s. will not allow that to happen, as it would have a negative impact globally. the biden administration is locked in an impasse with republicans who want to link it to spending cuts. geopolitical challenges from china are in focus as leaders meet in japan. tensions with beijing are high on the agenda. he said the ministers will also discuss how to ensure ukraine has weapons and other defensive equipment it needs, as the russian war efforts continue. german chancellor olaf scholz says indonesia will join new climate group established by the g7 nations. the group was created last year to coordinate global rules on climate matters and avoid trade disputes over green tariffs. he said indonesia is set to receive billions of dollars from rich nations to accelerate its shift away from fossil fuels. australia's government is optimistic that punitives trade sanctions imposed by china on exports could be lifted by the end of the year. it comes

march meeting about being too explicit on their intentions for future tightening, but remember, christine lagardeaid there was a lot more ground to cover. there is a clarity that you will get more divergences at this stage on the governing council. you have some that would quite like to go 50 at the early may meeting, but i think they will settle on 25 we are going for two more. one in may and one in june. but the risks skew towards more than less. dani: i am thinking about your comments on the trajectory of inflation. to get it back down to 2%. the imf seem pretty convinced that rates will return to their lower bound. are you as convinced? janet: i am less convinced than the imf. what i think is that we are not going to stay restrictive forever. we actually think that the ecb not be able to cut rates by the end of 2024. even though we have the fed counting. i think interest rates will come back down, but i would be surprised if they went back to zero or negative levels that we almost thought was normal over the course of a lot of the last decade. i think the growth inflation trade-off and intere

dani: you're looking at live shots of ecb president christine lagarde in new york speaking at the counciln foreign relations in new york talking about more potential instability arising from waiting supply elasticity, talking about the completion of a capital markets union being key for the euro and talking a bit of geopolitics, talking about more multi-polarity when there are two nationstates with equal amounts of power. macro high-level speech she is giving. as she has been giving that european equities struggling to post any gains. the euro since further. now let's get to work question of the day. european blue-chip stocks are unable to reach new highs. will they eventually be able to do so? they've got a boost from china. what is the next leg of gains. joining us is zeynep ozturk-unlu , deutsche bank emea cio. thanks for joining us. can blue-chip stocks reach a new high? zeynep: it is a good question because of we look back where we were at the beginning of the year we were talking about more than a 15% return. european stocks and blue-chip stocks have performed well. where will they

it's a theme christine lagarde, the president of the ecb picked up, at the council of foreign relationses in the world for at least ia critical minerals. and europe, depends on china for 98% of its rare earth supply.— its rare earth supply. supply disruptions _ its rare earth supply. supply disruptions on _ its rare earth supply. supply disruptions on those - its rare earth supply. supply disruptions on those fronts i its rare earth supply. supply i disruptions on those fronts could affect— disruptions on those fronts could affect critical sectors of the economy. such as the automobile industry. — economy. such as the automobile industry, and especially as it transitions towards electric vehicle transmission. in response, governments are legislating to increase — governments are legislating to increase supply security and notably through _ increase supply security and notably through the inflation reduction act in the _ through the inflation reduction act in the united states and the strategy of the agenda in europe. but that— strategy of the agenda in europe. but that could in turn acc

people bought american assets, because as christine lagarde, the president of the epc -- ecb said, thatill be disastrous and unheard-of for the american economy to default on their debt. in terms of market reaction, do we see a repeat? michael: that's an unknown and something the fed has thought about in their discussion in 2013. two ideas they talk about were running a repo operation in case interest rates went down too far and running a reverse repo in case interest rates went up if nobody wanted our debt. they could take some of that off people's hands. if everybody wanted our debt, they might have to put liquidity into the markets. they thought about this. they obviously have not made plans this time around, but it is certainly a possibility. kriti: certainly something that hasn't quite struck fear in wall street yet, but it could be there. give it two months. we love to wait until that last-minute deadline. as we talk about the debt ceiling, we are still very concerned about the labor market on wall street. initial jobless claims coming in at about 200 free 5000. are we making impr

they have frank christine lagarde, former head of the imf. and apparently, they do this a lot.ion of, how are they getting through to these world leaders? i don't know. the fed has not said. we don't know much more than that. >> a. i -- there's no way this is real and then -- >> we'll, the authenticity of the video is in question. and i think a guy comes into this because it is so easy right now to create deepfakes. and deepfakes are essentially fake videos of people like your own pile that could create a video from speaking. it sounds like, and it looks like him. and i think that's why the fed is playing a little bit of defense saying, yes, a conversation happens. but we haven't really been able to watch this video in it's totality. and we don't quite believe that it's completely him. but obviously, the conversation happened. >> i guess my question is, if it's a i, why was the zelenskyy voice so much not like him? -- my other question would just be, why are they pranking jerome powell? that's like calling up and pranking a librarian. i would think they would probably want to p

. >>> we're joined now by christine lagarde, former head of the imf, now the president of the european. good morning. good to have you here. >> lovely to be back. >> your recovery is going all right? >> yes, in a couple of days i think i will be fine. >> glad to hear that. you have a long list of things ahead of you and i want to ask you about the global recovery. you were speaking a few days ago and you said the recovery for the economy is fragile and uncertain. in this country the fed thinks we will see a mild recession later this year. irstall,re is that there woulde a cessifhnica. atllat the t' all positive. it's been slightly downgraded but overall we have a recovery and we are faced with high uncertainty because of multiple factors, you know, from all corners of the war it's the war in ukraine, it's the financial stability that clearly has been shaken up a bit by the u.s. and switzerland developments, it's inflation that we are fighting. it's all that which really create a hollow of uncertainty around a recovery that we want to embed. that's pretty much where we are. >> so there

. >> the president of the european central bank, christine lagarde, has just said europeans will not be able to use more than a thousand dollars in cash anymore. >> now, we have in europe this threshold above one thousand euros. you cannot pay cash . if you do, you're on the gray market. >> you take your risk, you get caught, you will find or you go in jail. >> so you go to jail for spending your own money. if they don't control it. that's coming here. tulsi gabbard spoken out against it. she first ran for president , serve in the house from hawaii and joins us now. congressman, thanks so much for coming in. thanks. >> this is shown dystopian. you'd hate to think it could ever come here. >> you think it might? well, yeah. i mean, this is just the latest effort by those in power in our country who are intent on undermining and taking away our own freedoms and liberties . this this central bank digital currency is about government sanctioned surveillance and control. it's about them being able to keep track of every single thing that we purchase, whether it's a stick of gum or an autom

christine lagarde, the president of the european central bank, was asked about this in a really interestinginterview with margaret brennan on cbs yesterday. here's what she said. i have had confidence in this country and i suggest cannot believe that they would let such a major major disaster happened of the united states defaulting on its debt. this is not possible. i cannot believe that it would happen, but if it did happen it would have very, very negative impact not just for this country where confidence would be challenged, but around the world. she also said, look, i understand politics. i get it, but there are times and this is one of them were the health and the good of the nation rises above that, and this is one of those times here. kevin mccarthy at the new york stock exchange later this morning, talking about what his strategy is. there is a solution here. three simple solutions. you just raise the debt ceiling cleanly. raise the debt ceiling with some sort of conditions attached for future spending, which is what mccarthy is going to point out today, or you get rid of the thing

jonathan: you sound like christine lagarde, optimistic over the weekend.is anything to be optimistic about. is this 4.25 on rates and the ecb because growth can handle it or growth is outperforming? jordan: last year was doom and gloom, one of the best traits we have had short euro-dollar, short cable from january, february onwards especially when ukraine was invaded by russia. this year, it has been different. it has been those negatives of last year turned around from headwinds into tail winds. last year, it was high energy prices weighing on the consumer, the government spending situation is corporate. energy prices have collapsed in terms of natural gas, below where they are before ukraine was invaded. there is a huge disposable income boost for consumers and firms producing their costs. from that side of things in terms of trade for euro would put euro-dollar between 1.15 and 1.20. for the euro area and monetary policy side, you've got inflation from last year feeding into second-round effects. very tight labor market. there seeing wage hikes coming t

jonathan: from christine lagarde on the geopolitical issues dominating the conversation worldwide. bank of america earnings later this hour. then earnings from goldman. equity futures solid, positive by .3% on the s&p. a 10 year, up 3.60, 3.5794. the story has been on euro-dollar, right now positive .4%, 1.0974. first quarter growth up 4.5% in china from a year ago. retail sales a 10.6% surge, the biggest month since june 2021. soft spots, fixed asset and retail sales but strong stuff. they upgraded the gdp forecast for the year. tom: need to get depth. carl weinberg joins us from high-frequency economics. what is fascinating is you say there is a lot of noise at a 4.5 percent gdp data. you end by saying this is a trajectory to 6% growth. do you buy that right now that they can get to 6% gdp growth? carl: they could be asleep at the switch and gdp could not grow at all from where it was at the end of the fourth quarter in they would get the year-over-year change in gdp at 6% target. there is a basis effect. growing from a low base is not a great accomplishment. look at the 4.5% gdp

christine lagarde participated in a car -- call with them. of getting past the switchboard and obviously the fed will be looking at that to make sure it doesn't happen again. lisa: this goes to the security and vetting that the fed is putting up and there has been a lot of time about sloppiness whether it's the oversight of svb or you don't know who you are talking to. is this something frequently raised or is this a real concern? mike: it is hard to know. this is a unique situation and we don't know how they got through. this is something that congress could look into and ask questions and probably should ask questions and the inspector general at the fed should be asking questions. i think it's too early to jump to conclusion about how this happen given that they have done this with others before. there must be something that they are doing that gets them past the gate. more importantly, is whether powell disclosed anything. it is probably irrelevant now but at the time it could've been. the fed says no, they think the video was edited. tom

christine lagarde saying she had faith in the country you think we get through it?m an optimist on the issues the men and women i work with don't want to default. they want a deal house republicans are working inside the conference to come with the list of ideas >> do you think they should have taken social security and medicare off the table >> you can to the deal with long-term structures without social security and medicare our leadership typically take it off the table. the last time we had substantive reform which saved social security for 40 years was the greenspan effort in '83. i am supportive of the bipartisan commission for reforms for medicare or social security i don't see that on the table today. i do hear our members talking about it isn't that the right way to go about a it becau-- it. that saves the programs for decades to come. that is the mission. preserve social security and medicare as a viable program for se seniors. >> asa hutchinson? >> asa is off on the deal in iowa this week. >> who should be the nominee >> you know, my preference is somethi

organisation has been led by people , not has been led by people, not least the former director general christine lagardebut temperatures will be up . so temperatures will be up. so hooray— temperatures will be up. so hohay hh— temperatures will be up. so hoaay hh whhh— temperatures will be up. so today it will be— temperatures will be up. so today it will be the worst. but apohoghee— today it will be the worst. but apohoghee hor— today it will be the worst. but apologies for that. and apohoghee— apologies for that. and apologies to- apologies for that. and apologies to john, too, for aohuahhy— apologies to john, too, for actually cutting him off mid—sentence. we'll be back to hhh— mid—sentence. we'll be back to hhh hohorrow— mid—sentence. we'll be back to him tomorrow if— mid—sentence. we'll be back to him tomorrow if we— mid—sentence. we'll be back to him tomorrow if we can reconnect hh-e— him tomorrow if we can reconnect hh-e gooe— him tomorrow if we can reconnect he got ho— him tomorrow if we can reconnect now, it's good to see— him tomorrow if we can reconnect now, it's good to see the preehaehh— no