we will hear from christine lagarde shortly. we will get to that speech when she commences. big, big indicator for where markets are headed from here all of that coming up at sintra. the forum for all of the central bankers around the world as for european markets, you see that pretty much the gains are broad based. all of the indices trading nicely in the green. this is after some mixed activity yesterday the cac 40 in the green. the rest of them less so the dax is up with a bounce in cyclical names that got a beating. banks and basic resources doing well insurance and real estate are making a comeback. ftse 100 in the uk is a far cry from 7,600 the level from six weeks ago and now sitting .70% stronger. fintech space is posting a profit and that is leading the sector and having an impact overall. the swiss defensive index is up .10% as well. in terms of sectors, this is how the split is you actuhave utilities up .40% some defensive names are doing well autos are getting hit down .80%. this as that sector prices in the weakness we were talking about the surprisingly weak pm

jerome powell leaves the door open to consecutive rate hikes with christine lagarde and andrew bailey also seeing more tightening as inflation remains sticky. top banks all past the fed's annual resiliency test, clearing a key hurdle for returning dollars to shareholders. and signals that an industry glut is easing. we check-in on the data markets, it was a mixed picture when it came to the close of course in the u.s. yesterday. we are weighing up the comments it came through from the central bankers, andrew bailey, christine lagarde of the ecb, locking in essentially the height coming through in july, that is the expectation and there was no pushback from christine lagarde on that front, though she was uncommitted when it comes to the september decision. that remains live for the ecb. jerome powell and the fed reiterating the options to go to again in terms of heightening at the fed, keeping the door open to that prospect as it continues that hawkish measure, as we check in on the markets and have a look at the futures or at least the s&p over the last two days. again a bit of a mixe

and christine lagarde today, she mentioned that in her more marks.conditions tightened and started much earlier, but we have seen some of the impact on smaller banks. i think a bit of first preview is probably welcome. however, if it is too much going against the action from the central bank, it is possible they will want to see it differently. >> the markets handle the rate hikes, and certain sectors see record highs, but on the flipside, that will end, and that will wait european equities. how do you trade opposite views? you have to go back to basics and ask where you see growth and where you see trend growth read the underlying is that there is volatility. in that volatility, you want to make sure that you have the ability to add to the stocks that you like on a long-term basis. you know, cyber ai, technology as well as mitigation and adaptation to climate, diversification, growth, value, dividend, all of this is still very much at play at this point, and that is what we have to do. >> do i wait to buy european bonds? when is the right moment to

christine lagarde says the fight against inflation is not over. >> it is very like the case we will continue to increase rates in july which does not come as a brig -- big surprise to you but that is what i am telling you. this is so because we are determined to reach our target in a timely manner. manus: u.s. secretary of state henry kissinger says he believes the u.s. and china will go to war over china. we have made it to the end of the weekend american equity is raging. back above 44,000 on u.s. stocks. in this economy when things are slowing down, microsoft hitting a new high. all the big tech names that got us to this point. there is that futures picture, more calm this morning, we have come in slightly from the ramp up yesterday. perhaps after the ecb conference and decision, we decided in retrospect the fed was dovish, compared to the ecb. that allowed the tech stocks to rally. it also decimated the dollar yesterday. let me show you what that euro-dollar did, is strengthened more than 1% versus the dollar. in today's session, more flat. we are taking profits on the euro but this show

the ecb rate decision and the christine lagarde press conference. that could be a nonevent, and this could be quite interesting. in theory, it is a nonevent as well. it when he five basis point hike, but what will she say about what comes next? this is a critical question. how close to the inflection point is the ecb? we will be watching tomorrow. we have some great guest lined up for some postgame analysis. let's get some pregame analysis of what we will see and what impact this will have on the bond market. we will try to get an answer to the question, what will christine lagarde be watching jay powell. joining us now, the senior european rate strategist at keybank. in theory, you will be having dinner tonight. should we be watching? will there be any of that later on today? >> even though the ecb price will disassociate itself from the fed, they will actually be tracking the fed red i think we'll see the fed pause. it is hard to see setting up, even if they have a lot of government. that is where the much more key markets will be. >> do we think

time and will be followed by a news conference from ecb president christine lagarde. catch it all on bloomberg tv. coming up, we are going to discuss all of these further, the fed, the ecb, we even get the boj. there is so much to talk about. we are going to do that with our next guest, riccardo trezzi, founder of underlyinginflation.com, who also use to advise both of fed and ecb on inflation. that is next. this is bloomberg. ♪ an angry rhino. you've never heard an angry rhino. baby i hear one every night... every night. okay. i'll work on that. the queen sleep number c2 smart bed is now only $899. save $200. plus, free home delivery when you add any base. shop now only at sleep number. >> it is just in the idea that we are trying to get this right and if you think of the two things as separate variables, then i think the skip, i should not call it a skip, the decision makes sense. dani: not the most important part of the press conference maybe, but i really love jerome powell saying the skip, ooh, actually no, i should not call it a skip. he was responding to a ques

forward to traders are weighing the possibility of another rate hike after the june meeting after christine lagardeaid it is too early to call peak after comments on monday lagarde drew attention to wage increases and firms exploring imbalances with factories behind the stick ystickiness. >> the numbers suggest indicators of underlying inflationary pressure remain high there is a sign of moderation, but there is no clear evidence that underlying inflation has peaked wage pressures have strengthened further as employers recovers as a result of high inflation moreover, firms have been able to increase their profits on the back of mismatch between supply and demand and uncertainty created by high and volatile inflation. >> happy to bring in the head of rate strategy europe at bnp. let's pick up on the comments from christine lagarde implying there is more to go on the rate hiking front. they are not where they want to be there is still inflation pressure coming through. how does that translate to european fixed income? >> sure. first, on the content, risk is tilted to the upside we have seen the rba w

it is very clear what we heard from christine lagarde that actually they do want to do more. after hiking 25 basis points as expected ecb president christine lagarde says a july increase is very likely. the boone curve flattened with yields at the highest level in a decade. let's bring in maria tadeo from brussels. the latest on the ecb, mr. naugle saying they may need keep raising rates after the summer break. so that is higher for longer. maria: yes and it adds to the press conference yesterday for madame lagarde in which she not only hiked rates as expected but now guided markets to another rate hike in july. she said it was very likely that they would increase rate again in july. she said it twice. how can you not we look at the forecast that came out yesterday? when you look at the medium-term by 2025, infliction with -- inflation was still not to be below 2%. there is the bias that plays into this. will we hear from the german central bank today -- what we hear from them feet into the message. madame lagarde hammered them that press conference and she said they are not

kazuo ueda, jerome powell, christine lagarde, andrew bailey it doesn't get much better than that good luck this afternoon sara will have much more, moderating that panel. as i just mentioned, jerome powell, christine lagarde as well as the heads of the bank of england and bank of japan all starting at 9:30 eastern time. >>> joumanna bercetche is standing by in london with your global briefing. hi, yjoumanna. >> hi, dom in an exclusive conversation with cnbc, google's leader said they want to build a path safely and responsibly. they're working on technologies to make it easier to distinguish between hue panhandle an ahuman and ai-generated and as part of the deal, volvo will add the north american charging standard port to all new cars starting in 2025. >> joumanna bercetche with the headlines. thank you very much. >>> back here, the supreme court is taking on the constitutionality of wealth taxes and whether congress can have any say on that whatsoever. the court's justices could put a stop to the major democratic policy before it's even enacted. robert frank is here with more at wha

let's talk about christine lagarde, the president of the ecb.how struck the same tone with economic indicatindicators >> we are data dependent we will decide on a meeting-by-meets ing basis. if our baseline stands, we know we will likely hike again in july >> lagarde said europe's economy is showing signs of stagnating, but not factoring in a recession at this stage. >> we did not see a recession. it is stagnant to say the least. the expectations for q2 for manufacturing is not giving us great hope there would be a strong recovery. we see a second half of 2023 up from the first half, certainly, but moderate we have a 0.9% forecast for the whole year >> do you agree with chair powell can you get away with the tightening cycle without dragging into recession? >> our baseline does not include recession. it is part of the risk out t there. >> i thought it was fascinating to hear she was hawkish and in l line with the last ecb meeting she seems relatively relaxed about the economic outlook which is surprising to me given the forward looking indicator

christine lagarde will give a welcoming speech at 9:00 a.m. u.k. time.s is bloomberg. ♪ when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time. eating all these different things and nothing's ever working. i've done the diets, all the diets. before golo, i was barely eating but the weight wasn't going anywhere. the secret to losing weight and keeping it off is managing insulin and glucose. golo takes a systematic approach to eating that focuses on optimizing insulin levels. we tackle the cause of weight gain, not just the symptom. when you have good metabolic health, weight loss is easy. i always thought it would be so difficult to lose weight, but with golo, it wasn't. the weight just fell off. i have people come up to me all the time and ask me, "does it really work?" and all i have to say is, "here i am. it works." my advice for everyone is to go with golo. it will release your fat and it will re

christine lagarde talking about a strong labor market.uy: the fed seems less concerned than it did very recently. we will talk about that and figure out what is happening here. if you want to deliver a hawkish message, give the job to christine lagarde. here's what she had to say today. >> inflation has been coming down but projected to remain too high for too long. we are determined to ensure inflation returns to 2% medium-term target and attire -- in a timely manner. the governing cancel decided -- council decided to raise the three interest rates by 25 basis points. alix: for more on the right decision we are joined by bloomberg's and read taddeo. >> it's another 25 basis point hike. you best believe it will not be the last one. she has brought back the very explicit forward guidance, telling reporters and also the markets -- that is who she is talking to -- there will be another hike in july. she did not to say once. she said it twice. with that kind of statement today you have opened a debate about what happens in september. the othe

christine lagarde and other good people will come in as well.ning statement of christine lagarde with the questions i will be listening most closely to the intention -- and the rest as well. lisa: do you think this will be more interesting than the fed press conference? tom: that was also interesting yesterday. that is a good question, no, i think she will hedge it in a political way or yesterday was more of a free for all. we will go there for now this is the president of the ecb. they have a whole process over there. they have to move the cables away and all of that. lisa: have you noticed that he is on time the door opens within 30 seconds of the 2:30 p.m.: eastern time mark. and she -- 2:30 p.m. eastern mark. >> my name is -- we are always in hydra format. and we are following through with video. when you have a question please turn on the camera and microphone so we can see you with regards to this. christine: good afternoon to all of you. the president and i welcome you to our press conference. inflation has been coming down, but is projec

jerome powell, andrew baylor -- bailey, christine lagarde. but start with chair powell, it's not that he was more hawkish than we heard lately. he was certainly hawkish after the last meeting when he paused but said more rate hikes are coming and he testified to congress and again, reiterated more rate hikes. so today, uh, he started by saying you know what? policy has only been restrictive for of the a while. it needs to get more restrictive and when asked about back-to-back rate hikes, he left the door open. let's listen. tirone powell: we will move the decisions with a little bit more time between them in an effort to get more information to the data to see how much restraint is coming from these you know, the pipeline from rate hikes we only made now in many cases six, eight, nine months ago but i would not take moving at consecutive meetings off the table. kathleen: christine lagarde at this meeting yesterday, the opening day of the conference she was very clear that more rate hikes are coming and unless something big happened, another r

christine lagarde did not want to commit where peak rates could be. is there a sense of how much higher they're going to have to climb? >> july seems like a done deal. another 25 for sure when the governing council meets. as for september, you have this group of governing council members that essentially says i think it looks very likely it's going to happen. you have another group that says ready much on the fence if the data supports it. there are some people who are hesitant, concerned that we've already done a lot. ultimately, doing more would do more harm than good to the economy. it's not clear. if i had to draw a conclusion, the chances we will see another hike in september are stronger than the other outcome. guy: i had to look up mount iger. can we have three central banks doing three relatively different things with their rates? >> not to a huge extent. it depends on who's got the cleanest and eight. the ecb has the cleanest inflation mandate. if you look at the fed, it tends to react to growth over inflation. the record says elsewise. the b

we got comments from christine lagarde from sintra. she said it is unlikely the ecb will call a peak in rates. she said the ecb should not waiver in the fight against inflation. that is driving the euro higher over the dollar. one .30% and the first acquisition for the in-house beauty division kering with 100% of business owned by blackrock and the current chairman shares up .70% and the london based company expects income to grow in the coming year with margins improving to 20% over the medium turn the stock is up 17%, frank. >> julianna tatelbaum in the london newsroom. >>> time for the morning call sheet. we check on the biggest upgrades and downgrades by firms you know and stocks you own goldman sachs upgrading on kellogg. moving to a buy as the company stands out as the few who will sustain increasingly scarce growth with the favorable market exposure shares of kellogg's up 2% in the pre-market and bernstein downgrading alphabet the 40% rise from the november lows means it is time to move to the sidelines on the stock looking at s

christine lagarde poured cold water on any halt of a pause in the cycle. >> we have hiked interest ratesnless there was a material change to the baseline, we will continue to hike at the next meeting. we are not thinking about pausing as you can tell. >>> the bank of japan sticks to the loose policy keeping rates in negative territory as inflation ticks higher governor ueda says they need more time to bring inflation down to the target. >>> and elon musk meets giorgia meloni in rome before heading to paris for the tech conference. >>> good morning warm welcome to the special edition of "street signs iemt m -- signs. mandy and i kicking things off joining the rally that we saw on wall street yesterday is the stoxx 600. all three of the majors stateside logged gains s&p 500 with the sixth session winning streak since november of 2021 a really strong session stateside. some of the market sentiment is spilling over into europe as european investors continue to review the central bank decision ecb raising rates by a further 25 an basis p 25 basis points. let's look at the board. ftse 100 up .

keeps sending howitzers to ukraine, even european solidarity at the highest level is failing, christine lagarde. today was cold, as usual, the cbr raises rates. and this is not the final. but what started in italy with madame lagarde, probably, there is no floating interest loan, ironically, the deputy prime minister, pickles, the foreign minister is simply furious. i am disappointed with the work of the bank and these cynical announcements declared melting for the first time calling a spade a spade. it's all about ukraine we have inflation, which is very different from inflation in the united states, our inflation is provoked raising the price of everything because of the war, the rise in the value of the currency will bring business to its knees with such rates, we risk falling into a recession, the good news from lagarde is family tragedies and bankruptcies. but they tried to put russia on their knees, recalled victor robert, who always calls everything by its proper name, the sanctions failed. i'm just surprised that we haven't been able to develop them adequately stated veins. you are an e

we did get the hawkish comments from ecb president christine lagarde in portugal suggesting in that part of the world the hiking is not over strong data across the board, stronger than the market expected definitely puts pce in focus. >> new homes, faster pace in more than a year conference board, best in a year and a half morgan stanley, which just two weeks ago said the fed is done here now says the bar is maybe lower for a july hike than they previously expected. some of the housing numbers sort of lead you right to that point. >> we'll be talking about that a little more as well in the hour, but how resilient housing has been we've had a number of guests across cnbc in recent months who suggested, hey, maybe the bottom is already in on housing certainly with home uilders, what you're seeing with home builders specifically sort of bridging the gap to add more supply into this market. the fact there is demand there for those homes now being built. >> we'll talk to taylor morrison about that in a minute as for yesterday, the headline was one of bearish sentiment as stocks were down the

that was the signal from christine lagarde. is this table mountain? >> i have to look at my old science. can you have a plateau and a higher rate? i think you are right. even the fed will signal more to come. they are getting this plateau with this long round of nothing. that is what a plateau is. i think that's what we are in for. many of them in the u.s. are saying one more fed hike. no cuts until the second half of 2024. that definitely seems like a plateau to me. alix: what do you think? mike: i don't think we are at the peak yet. that holds true for the united states and the ecb, they are going to have several more moves to go. the fed is going to raise rates in july. if the numbers it any indication, it does suggest we will see a strong labor market, which may be the most important number for the fed. we know it's going to go down a little bit, not a significant amount. you pointed out not only did christine lagarde suggest they are going to raise rates again, she emphasized the higher for longer part of it. guy: some of the house builders are h

not necessarily knew that christine lagarde is being more hawkish, but what is new is she's giving us these comments when we have a fed talking about pausing or skipping. what does that mean in terms of next week's meeting? zoe: next week we are expecting a 25 basis point hike. the ecb has already hiked by 375 basis points except for the last hike, they were hikes of 50 or 75. the last one was 25. we are expecting 25 again next week. we are also expecting 25 again in july. the question is what happens after that because in a way, diverging from the fed as you just mentioned, something the ecb typically does not really do. they typically follow whatever the fed does, and if the fed is pausing and there is a strong indication they will pause this month, the ecb normally follows suit quite quickly. dani: it is often said and perhaps not explained well enough, but this idea of long and variable lag. we've seen the euro area inflation start slow. doesn't that to some degree mean it is not just long lags, it's already showing up? ecb policy has already been affected. zoe: it would seem like

will christine lagarde have to respond to that? maria: just to clarify, it will be very hot in frankfurt but this time around i will be inside. i'm spanish but i also have my limits. when it comes to that decision i can almost hear the words, this is three days away. she will say what has been the standard line which is we are a data-dependent central bank. we are not fed dependent. the path on the road that they take, they stressed this idea the nature of the hiking cycle is different. they've always made that distinction. obviously we know if that were to happen there were repercussions. obviously yes she would have to attend to those concerns. i can a most predict she will say we are not fed dependent. alix: that does raise the question we talk about the fed to the ecb. pricing out any kind of cuts for this year and maybe the narrative is higher for longer. are the fed and the ecb far apart or is the ecb playing catch-up. guy: there's probably an element of that. katherine's been talking about the fx channel, she knows how much

christine lagarde spoke a lot about why the ecb needs to do more, suggesting that a rate hike in july it is all but a certainty. interesting, she said explaining why they have to do more, she said the bank will do what -- a man will do what he has to do and she said a woman will have to do what she has to do, too, so there you go. finally, andrew bailey surprised with a 50-basis-point rate hike at the bank of england's last meeting, so there's a lot of questions, leaving the door open to doing more, not committing to a particular rate hike yet, but everybody says inflation is still high, they have to do more, and that is the common message that rang so loud today. haidi: messaging from the boj still pretty consistent. governor ueda remaining above target. is this about, as he says, remaining confident he will stay in that range? kathleen: he said it so clearly, so succinctly today. inflation has been running about target by just about any key measure for about a year now or more, but yet, not ready to make. let's listen. what's on the line, inflation is still a bit low, around 2%. tha

wednesday, andrew bailey, jay powell and christine lagarde will be speaking. we will also get cpa that is expected to show inflation showing. thursday, watching for german and spanish cpi and friday, eurozone cpi. inflation picture out of the euro zone after the softer than expected emi data. we will get fed chair jay powell's preferred inflation gauge from a, is it headed in the right direction? next, we will dig into the markets with our guest from emirates nbd. is there a way to position around the geopolitics of russia and is profit turning into a sustained downturn? this is bloomberg. ♪ >> the fed has been trying to talk this market down. >> i think the fed has to sleep with one eye open. >> the fed is going to have to continue to raise rates or stay higher for longer. >> to pause and a time when you are significantly raising forecast because of inflation and the level of rates we have to get to deal with the problem, powell has a tough job. >> it is a mistake to ask central banks to solve inflation all by themselves. tom: our guests on where the feds pea

christine lagarde did speak at a parliament hearing earlier today. the ecb's actions are still materializing. >> policy measures are starting to materialize. recent ecb analysis indicates the effect of tightening on real activity and inflation can be expected to strengthen in the coming years, but our assessment is surrounded by significant uncertainty. alix: we get that. would also get a look at the data dropping tomorrow -- we also get a look at the data dropping tomorrow. we have data coming tomorrow for retail sales in the eurozone and christine lagarde say we have not fully felt the effects of tightening but they are coming and still are here. what are you expecting tomorrow? >> i think the data is showing tentative signs of rolling over. we saw that in services pmi today in europe. i think there is still a divergence. rolling over, it is probably still strong. i don't think we will see fast weakening. that is the split between manufacturing and services that should start showing up now in the hard data as well. tom: what is your sense of when w

here's what the president, christine lagarde, had to say earlier.y for this year and next, owing to past upward surprises and the implications of the robust labour market for the speed of this inflation. they now see it reaching 5.1% in 2023, before it declines to 3% in 2024. christine lagarde. ralf preusser is global head of rates research at bank of america. i asked him for his assessment of the ecb decision. we are at an interesting turning point and you or a gear already highlighted contrasting decisions this week. no real surprise from these 3, i would say. ecb told us 3 months back that they were likely to raise rates by 3 consecutive 3 month steps, this is the second one of those, pretty much committed to raising rates again injuly, in line with inflation data we have seen, and in light of that data, there is no real surprise there. but we are obviously and nearing the end of thatjourney in europe as well and what some market participants were hoping for today is some signal as to whether the ecb would stop after the next hike injuly, or whet

colleague sara eisen will be monitoring the policy with fed chair jerome powell christine lagarde and the kazuo ufeoa, and the bang of england governor, andrew bailey. >>> for more, check out cnbc.com. >>> coming up on the show, european equity markets enjoying the european mounts. what's driving the move next when we started our business we were paying an arm and a leg for postage. i remember setting up shipstation. one or two clicks and everything was up and running. i was printing out labels and saving money. shipstation saves us so much time. it makes it really easy and seamless. pick an order, print everything you need, slap the label onto the box, and it's ready to go. our costs for shipping were cut in half. just like that. shipstation. the #1 choice of online sellers. go to shipstation.com/tv and get 2 months free. ah, these bills are crazy. she has no idea she's sitting on a goldmine. well she doesn't know that if she owns a life insurance policy of $100,000 or more she can sell all or part of it to coventry for cash. even a term policy. even a term policy? even a term policy

the ecb president christine lagarde says inflation pressures remain powerful and borrowing costs will further to tackle them. the comments cement expectations for another interest-rate hike and next week's meeting. the guard reiterated that there is no clear evidence that inflation has peaked. >> indicators of underlying inflationary pressures remain high. although some are showing signs of moderation, there is no clear evidence that underlying inflation has peaked. francine: and that's her bloomberg first word news. that's also it for the european it open. "surveillance: early edition" is up next. we will bring you that big story from china breaking just 20 minutes ago. extra support, as china has asked some of their big banks to cut deposits rates again. that will be a boost to the economy to stimulate not only consumer spending, but also boost credit supply. full around about the markets next. this is bloomberg. ♪ bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and smal

alix: that is exactly what christine lagarde was saying, too.o get investment grade rating this summer? gov. stournaras: yes. i am quite optimistic. as you know, we have elections a few days ago, stable government now with a strong majority. this government wants to do reforms so i am sure that after the declarations government will make in parliament the investment grade will be a matter of a few weeks, if not days. alix: yannis, we appreciate so much of your time. yannis stournaras, the bank of greece governor. thank you. this is bloomberg. ♪ alix: stoxx around the highs of the session. the nasdaq is resuming its leadership. abigail is tracking the moves. abigail: the s&p 500 is slightly higher, as well. stocks down 2% coming off of those lows. the nasdaq 100 is getting a lift as is the s&p 500. it is coming off of it lows. let's put this into context. we have a big divergence between these areas, the sectors. the nasdaq 100 and the s&p 500, the s&p 500 up 14% in the first half. the nasdaq 100 heading to its best first half on record, right no

we will be looking outlook from christine lagarde and banks and we will be live in frankfurt. let's take a look at futures. a lot of the focus is about central banks today. we look at the dot plot of the fed and i would point everyone to a wonderful piece. we ask a very simple but profound question. if we see such a hawkish tilt, why not raise rates from the fed ? equities are open. you can see the spanish index down here at the ftse is practically unchanged. the other story bear watching in the u.k. is a review -- the other story we are watching is the review on the banks. is the u.k. unlistenable? we have an interview with the chief executive of we soda. the other stories are commodities, what the china stimulus from the pboc means from oil consumption, oil demand will also some of the iron ore and things they need to build the construction that is going on over there. we look at the sovereign bonds, foreign exchange always interesting to look at. we also have the cac 40 opening .8% lower. if you look at the cross asset we are looking at treasuries and dollar. you can see th

christine lagarde, kicking it off today. like other hawks there in force, she made it clear not only that you can't call the peak in rates yet. she things there will be a hike in july. rates could say higher for longer. let's listen to what christine lagarde said. >> we need to bring rates into sufficiently restrictive territory to lock in our policy tightening. we need to communicate clearly that we will stay at those levels for as long as necessary. this will ensure that hiking rates does not elicit expectations of a too rapid policy reversal and will allow the full impact of our past actions to materialize. >> we want to give you comments from a couple other hawks -- more persistent inflation is going to call for more rate hikes, the slovenian central bank chief, we have latvia, saying the market, optimistic about inflation, he doesn't begin to see rate cuts until 2024, and the first half -- in the first half. italy, the italian prime minister, putting the stamp of approval on the next head of the bank of italy. this pers

we saw it open already with a choir of hawkish warnings, christine lagarde of the ecb said officials won't be able to declare at the end of their tightening push anytime soon. >> it is unlikely that in the near future the central bank will be able to state with full confidence that the peak rates have been reached. >> if inflation turns out to be more persistent, further action is needed so interest rates and other things will be needed. >> we will do what is necessary for inflation to come down to 2%. >> we should not exclude the possibility that we are going to hike or might hike in september. >> in some countries, especially the u.s., they were expecting three rate cuts this year for u.s. fed policy and they have adjusted. >> the momentum being stable in the u.s. and europe at around 5% on a yearly basis, we need to see that coming down. >> i think markets have been very optimistic and i suspect they are still somewhat optimistic about the path for interest rates. >> leading all of those conversations is francine in portugal. what is going on here, i feel like you are drying out a

christine lagarde arrived just in time for a new kind of crisis.ith the pandemic, came more crisis measures inclduing a 1.85 trillion euro emergency program. in 25 years, the ecb has navigated its share of problems, but never an inflation crisis. right now, the central bank is raising rates at the fastest pace in its history and nothing is broken yet. but can some of the old stresses reemerge or something new entirely?oliver crook, bloomberg, ecb headquarters, frankfurt. francine: that was a look at the 25 year history of the ecb and the challenges faced by the world's youngest major central bank including its recent fight against inflation. in a few hours from now, we will get eurozone inflation data after some of europe's major economies all the pace of inflation cool for the month. former ecb president jean-claude trichet told us that the ecb policy is heading in the right direction. jean-claude: i was impressed by the fact that this target, this definition of price stability has been reaffirmed very, very strongly by jay powell and christine la

lower after the ecb raises its benchmark interest rate by 25 basis points as expected president christine lagardeng inflation journey is nowhere near finished and july, a hike there is, quote, very likely here's lagarde earlier on how wage pressures are factoring into the equation. >> wage pressures partly reflecting one of payments are becoming an increasingly important source of inflation. compensation per employee rose by 5.2% in the first quarter of the year and negotiated wages by 4.3% >> clearly an area of focus of concern, both for the ecb and, of course, for the u.s. as well. the story abroad we really want to talk about today is the weaker economic data in china. lack of economic recovery really in termsof what the bulls were hoping for our eunice yoon is live from beijing. what did you take away from some of the data today? i thought it was interesting the market rose because the chinese central bank cut rates and promising stimulus so what's happening in the economy? >> reporter: yeah, that's right. well, in terms of the stimulus, a lot of investors were excited about it that's one of

christine lagarde has a much easier decision? rates are certain to rise again? >> if you want someone to guarantee what the central bank will do christine lagarde, president of the ecb did it today, more hikes are coming. listen to what she said. >> indicators of underlying inflationary pressures remain high. although some are showing signs of moderation there is no clear evidence that underlying inflation has peaked. >> the inflation is down and it is often the high in the euro zone and dashed off of the highs in the euro zone the inflation -- the inflation is off of the highs in the euro zone. some are saying inflation risk is tilted to the upside and this inflation is happening very slowly. i think nobody has to bet, it has been very clear by the ecb that there will be another rate hike in two weeks. paul: all right. a look at central-bank action. let us get to vonnie quinn to check on the first word headlines. >> a new revelatory plan may require large u.s. banks to boost their capital by an average of 20%. the proposal may cover up banks from 100 billion do

christine lagarde is giving opening remarks at this ecb form on central banking. tom: let's get to maria tadeo, she has been working on this tirelessly through the weekend. i and trying to correlate the reporting and news that is out there. maria tadeo is in brussels. what is the latest? maria: what we know is that now the russian media the past hour has sent this idea that vladimir putin and the russian estate would not launch a probe into prigozhin for his insurrection is not the case, that the probe has not been dropped and is continuing. the idea was that the head of belarus had mediated between vladimir putin and prigozhin to avoid a bloodshed in moscow. there was somehow a peacemaking deal. if the russians decide to go after prigozhin and they do continue this probe, it means there was no such deal. lisa: do we have a sense about what the internal discussions are about vladimir putin's leadership and why there was not or opposition to the wagner troops as they did march on moscow? maria: what we did see on saturday as the russian president to address the nat

getting to the 110 level -- 1.10 level of the hawkish discussion from christine lagarde.fragility that has been off the radar with russia and with all that is going on with the economics finance and investment but here is the theme. euro is stronger and began his week. --the yen this week --is weak. lisa: especially given the fact that the japanese economy has been a haven for many people who keep saying let's by japanese securities. i am watching yields grinding higher on the front end around the world and the yield curve getting more inverted particularly over in europe. tom: i will have to see. there is no other way to look at it. futures up three and the dow at -51. tom: the questions around the earnings --lisa: the questions around the earnings surprise and the question of its -- if this is going to be a pattern, -- joining us is cameron dawson. how much is that is on your radar, the earnings be the catalyst to the downside to the caution that people are worried about? cameron: even though we see dire economic forecasts, economists -- you don't see that in the earnin

mistakes in terms of supporting ukraine, a gift from the european central bank announced by christine lagarde. europeans will receive new loan payments in july with this next one. an increase in the monthly payment will increase exactly twice for those who cannot cope. banks are already offering options to increase the loan repayment period by 10-20 years, in fact, for life . moscow is ready to assist the harbor in the conditions of the us trade blockade sergei shoigu, at a meeting with his cuban counterpart, negotiations of the heads of military departments were held in moscow . as for bilateral relations, they, as sergei shoigu emphasized , are now on the rise. moscow, together with havana , plans to implement a number of projects in the military and military-technical fields. and remains an important ally of russia in the region , the cuban friends confirmed their relationship to our country, including by demonstrating a full understanding of the reasons for the start of a special military operation in ukraine moscow stands in defense of the charter the united nations against its replaceme

mistakes in terms of supporting ukraine a gift from the european central bank announced by christine lagarde payments in july with this next increase, the monthly payment will increase exactly twice for those who can not cope banks are already offering options increase the term of payment on loans by 10-203 years, in fact, for life a. 7 emelyanova vesti southern european bureau. russia is ready to assist cuba in the conditions of the economic blockade of the united states such an assurance was given today by minister of defense sergei shoigu noted that russia plays a leading role in the fight against fascism, which the united states today trying to spread in europe certainly was not an important ally of russia in the region to our country cuban friends confirmed, including demonstrating a full understanding of the reasons for the start of a special military operation in ukraine advocates for the united nations charter against its replacement by the so-called rules- based order . which reflects the desire of the collective west of the united states moscow to washington row. the media, with un

international forum of the european bank center in portugal , the hostess of the event herself, christine lagardes, but adamant. we must be resolute in achieving the goal that we have set for ourselves and not discuss in the process we will make a decision on this at each meeting, if the data that we have now remains unchanged, then most likely we will raise rates again in july even more streamlined traditionally for himself expressed the guest of the forum number one head of the us federal reserve jerome powell through the thorns to the stars. he informed that he did not expect the return of inflation to the target in the next year indicator. i don't see us going back to 2% this year or next. i see that we are making progress, sustainable progress is core inflation. headline inflation is declining, which was below core but core inflation. i do not see that we have reached two percent. this or next year, i think we will achieve this in a year. the ministry of finance - russia has placed the last issue of the federal loan bond this quarter, papers. since the maturity date in april of the thirty-fi

it will be done at the expense of european taxpayers, the head of the european bank center, christine lagardeinformed about the plans of the eu and at the moment. she evaluates them negatively. the main fear of the central bank is that any actions by brussels to withdraw money that russia considers its own will undermine international confidence in the euro ukraine and recent events in russia will become the main topic at the eu summit knew how to assess the lack of results decided officially call it not my business, but the tension is such that russia disrupts the work of tv channels during a press conference of the german foreign minister, the phoenix channel interrupts the broadcast from the kremlin in russian while russian president vladimir putin talks about the reliable work of our armed forces and special services, the host is silent moves his lips, his microphone is turned off, then the host of anna lena burbock disappears from the air. there is something symbolic to the minister. there are many questions these days during her visit to south africa, she stated that the position of sou

so it's a lovely location, portugal, you got christine lagarde there, andrew bailey, jerome powell amongt do you think they will chew on? of course they're all increasing the cost of borrowering and in some places like the uk, so far it's having little effect.— little effect. yeah, you're ri . ht. little effect. yeah, you're right. beautiful— little effect. yeah, you're right. beautiful location, | little effect. yeah, you'rel right. beautiful location, a fantastic line—up, too. certainly to be an interesting day. it's extremely difficult for central banks at the moment, as you say they already raised interest rates a very long way and yet inflation not coming down and i think what they're most concerned about really is the fact that the initial factors that were driving up inflation from which you have mentioned including the very, very sharp rise in energy costs around the ukraine war have now dissipated. but at the same time, you're seeing this more persistent rise in inflation which relates to domestic pressures and to wage growth and that's much, much difficult to control. whereas e

we just heard from christine lagarde as well.ll of this means you will see continued pressure on the yen. major central bank peers are continuing. haidi: when does the yen become problematic for the boj? >> we are seeing various levels, and it is not a hard and fast rule. i was speaking to a trader who mentioned very candidly that it is an element the boj loves to employ, but until we get that, you will see a climbed past that level before i step in the market can be potentially seen. 151 was the level we saw last year that proved incredibly worrying to officials, but this is a step-by-step process to get to that level. it is not a hard and fast rule. haidi: we will have more on the bank of japan decision coming up . if over that official shares her -- a former fed official shares her opinion. first, we talked with ruth about the level of the weakness of the again, if it becomes an issue for the boj. this could be around 145, 150 when the boj could likely be forced to act. we will discuss. this is bloomberg. did you ever stress a

christine lagarde, the president, has been signaling more rate hikes are needed.hat is pretty much a done deal. at this meeting, people are saying gardens on further rate hikes is what they are watching. that's important. the people's bank of china. the economy and the recovery seems to have slowed down, not as strong as expected. so yi gang is expected to reiterate what was said by the government, a stable policy stance. rrr rate not in the boards yet. haidi: kathleen hays there with a preview of all the central bank decisions we are waiting for this week. there is a lot more to come on daybreak australia this morning. this is bloomberg. ♪ haidi: former u.s. president donald trump appears to be holding onto his political base as he heads to court to face federal charges. around 75% of republican voters view the charges as politically motivated. more details from washington. we have seen this pattern play out when it comes to the previous woes the former president has faced. he has used it in the past, and again now, even in the last few days since the indictment

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christine lagarde, the president of the ecb was out yesterday saying underlining price pressure is strong in the eurozone sending a signal they are not done yet with rate hikes. perhaps that is putting pressure on the markets in the overnight trade, reserve bank of australia hiked 25 basis points to 4.1% that is the 12th hike in 13 months we are trading at 66.56. >> we are following brad smith in town and he is talking with the regulators what more do you know? >> absolutely. what we know and what is reported is microsoft president brad smith is meeting with jeremy hunt over the activision-blizzard takeover that is according to bloomberg nece news smith is set to speak today on the sidelines of the tech summit >> thank you, julianna >>> we have breaking news from ukraine. officials accusing russian forces of blowing up a major dam and hydro electric power station in the southern part of the country that moscow co- tropical -- controls we see water gush from the breached facility in ukraine this breach is causing a disaster because of the potential for more massive flooding than what we ar