romaine: we are counting down to the fomc minutes.ential insight into what we get out of the july meeting weeks away. here is our own michael mckee. mike: no real surprises in this set of minutes in mid june when they met. they saw a strong economy plagued by covid

the fomc gears up for another jumbo hike.atest survey says the mission to tame prices may drive the u.s. economy into a ditch. stocks sell off. let's check in on the indexes. a selloff. we are adjusting to weaker data out of the u.s. on friday coming from business activity levels dropping to the front end of 2020. the fed decision -- markets are expecting 75 basis points. in europe looking ahead to inflation data at the end of the week and how much a conundrum the ecb is in after unveiling the anti-fragmentation tool. the dax is down .6%. a relief around telephone -- a relief around telecoms. politics in the u.k.'s still front and center and the debate between the leading candidates to take over as british prime minister under tonight. let's look at the sectors on the move. i mentioned telecoms on the back of what is happening around vodafone's. a beat for that company. a hitch around their service in germany. telecoms up .4%. three sectors in the green. personal care and drugs -- health care has just edged into the green. a

the problem with pre-announcing a specific magnitude of hike as powell has done in the last few fomc meetings, is there has sometimes been a mad scramble 2 or 3 days before the meeting to get people used to the idea that there might be something more coming. that can get pretty messy. and it is undesirable. you can't keep saying we are going to do x and end up doing y and z. >> talk to us abou tthe gap in terms of expectations. i think it was four times powell said go back to the 6-week-old dot blocks. and yet the markets are nowhere near that. they expect cuts here, what do you make of that divergence betw een markets and dot plots? >> markets took off today because many people interpreted powell's interpretation that the size of cuts going forward baby of a lesser magnitude. but this doesn't mean no cuts. excuse me, hikes. we are now at a neutral. the place they were racing to get to. once you get to neutral it is understandable. you don't have to be going 75, 7 5, 75 and entertaining even 100. you are about to reach the point where policy is restricted. it doesn't have to be 75, i

where do you see opportunity knowing what powell said and fomc decision? >> the fomc said there is not a ton more interest rate increases in front of us. that inflation is beginning to roll over. that the economy is slowing and it is going to do the work for them. i think that is part of what encouraged the market. i don't know that the economy is looking okay. you just mentioned labor. i fully agree, liz, you talked a little bit earlier about the durable goods number today, it has gotten nearly enough attention, that was good number. merchandise trade deficit is pretty good. i don't think we're in recession. slowdown, of course, maybe we'll fine tune it quibble over little details but i think economy is okay, market is saying look at those second-quarter earnings. they're less bad than feared. put that all together and the market's having its rally off the june 16th low. liz: look at june jobs report, how can you say when in the last month of the second quarter 372,000 jobs were added. sure, we may see unemployment tick higher. that's pretty much expected

your initial thoughts on the fomc, not the decision, but changes in language. a lot of changes. >> well i think the critical change was the very first sentence and that was a recognition that the tightening that they have done has indeed had an impact, a negative impact on consumption and that is exactly what they want to see by the way so this is something i think the market is celebrating because it's the first hint, we might be stopping, we might be pausing going forward. charles: so to that point, it's a big question mark today, where to from here, right? and you know nomi talking about taking a victory lap. we know jay powell can't wait. this one he can taste. because of the transition mess-up everything else. he wants this desperately. at same token he knows he can't be premature with it. >> look, we've got two press conferences two days in a row with janet yellen tomorrow afternoon. we don't know why yet. when it comes to victory lap though, charles, we'll have to see. pending home sales which you flashed up earlier, down 20%. that is his goal. in the se

the amount of trades you make will have to be 45 days or more before any fomc meeting. i think we have really created a very strong and robust set of rules that will support public trust in institution. again, we are just now -- the system is just up and running, and i am proud of what we did. reporter: from bloomberg news. i wanted to ask a little bit about the 75-basis points versus 60, versus 25. talk bit about what kind of goes into your thinking for making the decision on how much to raise rates. and just talking about a very large amount that you alluded to, could that possibly be 100 basis points? and along those lines, is there any sort of weakness in the economy outside of inflation measures that will lead you to slow your hiking pace? chairman powell: i will take that as a question about the next meeting and thereafter. so, as i mentioned, we will be looking at all those things, activity, labor market inflation, thinking about our policy stance and where it needs to be. i also mentioned that now that we are neutral, as the process goes on, at some point it wil

we also got the fomc minutes suggesting that the restrictive policy could remain in the cards if inflation remains elevated. determination from the fed to get back to the 2% target. wti is about $98 a barrel. the cac 40 up about 1.2%. the u.k. up about 69 points. after gains of .3 and .8% on wall street yesterday, the theaters looking to build on that optimism, about .3%. the u.s. to year 2.97. currently 1.01 on the euro-dollar, and the option suggesting a 50% probability of parity within the next month, gains of .1% for the currency. 98 dollars a barrel on wti, down .3% on recession and growth concerns and what is happening in china. francine: if you look at the industry groups moving the most, energy on the upside, and basic resources all getting between 1.7 and 2%. the focus is on inflation data, and ecb minutes later. they will talk about whether we get fragmentation. we could see sectors on the periphery, and if markets are right about a 50 basis point height, -- hike in september, what does that mean for some of the sectors like banks that are much more in tune with what the ecb does

then at 7 p.m., we will have the latest rate decision from the fomc.expecting 75 basis points. that is where the market expectation since right now. it would be quite a surprise if we got anything other than that. we will also see a slew of u.s. earnings reports including from meta, qualcomm, t-mobile and boeing. we were just hearing about the way that tech has performed overnight. nasdaq futures are very strong, up i more than one point -- by more than 1.4%. also dollar strength is an issue for large u.s. corporate that do a lot of business overseas. we are joined by our reporter from bloomberg intelligence from singapore. with more than a quarter of the european market having reported, what is your scorecard look like? >> i have to say it is one of the most unusual earnings seasons if you look broadly at the numbers, that we have seen in ages. on the top line, we are seeing beats for over 60% of companies. about 30% are missing. if you click that and look at earnings, it is almost exactly the opposite. something like 35% that have beat, and more than

the fomc has historically tried to avoid the kind of rapid monetary policy that has happened this year how concerned are you that the rate hikes that we've seen thus far might increase risk be to financial stability, not just domestically -- >> there are precedents for the fomc moving very quickly, for example, 1994 and 1980 even more so we've been known to do that and i would say that begin how quickly we've moved i am gratified that while basically there's volatility but -- for financial stability,asset values are down, which in some sense lowers vulnerability it's when they're really high that you would worry they're vulnerable to a fall actually. many asset values have come down i think you capitalize banking systems, you have households are generally in about as strong financial shape as they've been. in a very long time if ever given the money on people's balance sheets you have a pretty, from a financial stability standpoint, you have a pretty decent picture. now macroeconomics, there are plenty of macroeconomics that don't rise to financial stability concerns financial stabilit

tight and innovation is much too high against this backdrop today the fomc raised its policy interest percentage point and anticipates the target range for the federal funds rate will be appropriate in addition, we are continuing the process of significantly reducing the size of our balance sheet and i'll have more to say about the monetary policy actions after briefly reviewing actions. recent indicators of spending, consumer spending has slowed significantly in part reflecting k■re and tighter financial conditions activity in the housing sector has weakened in part reflecting higher mortgage rates. and after a strong increase in the first quarter, business-fixed investment also has to decline in the second quarter. despite these developments the labor market has remained extremely light, with the jobs near historical highs and wage growth elevated. over the past three months it rose by an average ever 375,000 jobs per month, down from the average they've seen earlier in the year, but still robust improvements in labor market conditions have been widespread including for workers at t

about a third of the fomc members see the inflation rate above 4% in 2020. who knows. they saw positive growth. they mentioned recession, slowdown, the fed still thinks he can pull this off. hit them hard, frontload the rate hikes. you get inflation down without a recession. people calling it my -- jay powell said last week, the ecb conference saying the biggest mistake the fed can make isn't causing a recession, is not hiking rates -- hiking rates enough now to bring down inflation. >> arguably compared to the pads of the ecb is a lot more break -- less straightforward. they have to demonstrate some economies in the euro zone can handle higher rates. yvonne: the ukraine war is a much bigger influence. will these minutes open the door as people think christine lagarde may have a bit to a 50's -- 50 basis point rate hike in september. when you look at inflation, you can see it is skyrocketing. a lot because of energy and food prices, the core inflation rate well above their 2% target. they are winning the debate at the ecb, concerns over inflation trumping concerns over

we have both the fomc decision, 75 basis points. maybe they will say something else.think the momentum is going to continue -- certainly has the potential. i think the same institutional entires you mentioned like in a room full of rocking chairs with cats, they are going to cause some panicked selling in the next week because they can't get settled. that works to the individual investor's advantage because if you pick those quality names, you can use their fear to buy your stocks, and i actually like that scenario. >> charles: so do i. talk to you again real soon. thank you very much. >>> in a world with crypto currencies, there's never a dull moment. i got to tell you, more recently, it's fell sort of like that hbo series dead wood. i want to bring in crypto law founder john deeton. john, i got to start with the news apparently an ex coin based product manager has been charged. what they are saying is the first of its kind, crypto insider trading case. what is this about? >> you called it right, charles. the former product manager of coin base basically was on what'

the week ahead featuring fomc minutes and we have payrolls friday around the corner.rom new york, this is bloomberg. ♪ jonathan: live from new york city, i'm jonathan ferro and this is "bloomberg real yield," time for the final spread of the week. markets closed monday for independence day. a long weekend coming up stateside. the mice from china, the eurozone, the united states around the week. fez beacon then we close out the week with payrolls friday. just open jp morgan, mike rowley downgrading economic growth. a economic data this week leading to revised down tracking on real gdp growth down 2%. a protection for real gdp growth to percent from 1%. the lante fed gdp forecast, needy -- -2%. let's get to the rapid fire around and we can do that with our guests, three quick questions in three quick answers. i we seen the highs on the 10 year yield for the year? kathy, yes or no? kathy: yes. troy: 70/30, but more likely yes. greg: i'm with troy, 70/30, more likely yes. jonathan: i want to see if this has changed. fed funds, where it is a peak, one handle, to handle, th

don't miss our special coverage of the fomc decision.an catch at 1:30 in new york. ♪ shery: sk hynix posted a 56% jump in second quarter profit thanks to resilient global demand for chips and a week korean won. guest: as expected, they were even better than what analysts were expecting. we will see slowing global demand for consumer electronics product. that's not a surprise because we have heard from its rival that demand will slow down for the second half of this year. investors will move their focus. haidi: is this going to be enough when it comes to guidance for investors? what are we expecting? reporter: sk hynix shares have been about 10% gains so far this month, but that's after nearly 40% slumping in the stock price from the 2021 p. bloomberg news reported they may be cutting capital expenditure by about one quarter in 2023. it's important because given the slowdown in demand, what could determine the chip price going forward is samsung, how they are going to limit supply conditions. investors will be paying close attention to gu

neel kashkari says the fomc is committed to bringing inflation down to 2%. in an interview, he admitted prices are continuing to rise beyond the feds expect tatian's and wages are not keeping up. he says the economy is far from where the central bank would like it to be. >> we are going to do everything we can to avoid a recession but we are committed to bringing inflation down. we are a long way away from achieving an economy that is back at 2% inflation. vonnie: turkey says a ship of ukrainian grain may depart the country as soon monday. it would be the first shipment since an agreement was reached with russia to allow save transit. ukraine says it is close to restarting shipments, though it is linked to getting the go-ahead from the united nations. u.s. space officials are criticizing china about the lack of information sharing on its rocket boosters reentering the atmosphere. remnants of the rocket fell over the indian ocean saturday. the country's space agency claimed a majority of the wreckage burned up on reentry. china's space program continues to pr

he's a voting member of the fomc this year. >> we need to move to much more restrictive steadying, innterest rates and policy. we need to do that as quickly as possible. i'm definitely in support of another 75 basis point hike in july. probably 50 in september. after that, we can debate whether to go back down to 25. if inflation doesn't seem to be coming down, we have to do more. >> the foreign ministers of australia and china will hold talks on friday for the first time in almost three years. they will meet at the g20 in bali to reset a strained relationship. rising political tensions saw china impose tariffs on australian wine and barley, and block trade and other goods. penny wong says it is in both of their interest for ties to be stabilized. twitter shares fell after hours in the u.s. on a report elon musk's $44 billion takeover deal is in serious jeopardy. the washington post says it's over concerns with the social media platform can concern -- confirm total spam users. his team stopped engaging with twitter, but they want to close the deal at the agreed-upon terms. global news

minneapolis fed president neel kashkari says the fomc is committed to bringing inflation back down to 3%. in an interview with cbs company admitted prices are continuing to rise beyond the fed's expectations and wages are not keeping up. he said the economy is far from where the central bank would like it to be. >> we are going to do everything we can to try to avoid a recession but we are committed to bringing inflation down and we will do what we need to do. we are a long way away from achieving an economy back at 2% inflation and that's where we need to get to. vonnie: alibaba has been added to the growing roster that could face the listing from the new york stock exchange. china and hong kong refused reviews, citing confidentially look -- confidentiality laws and national security concerns. turkey says a ship of ukrainian grain may depart as soon monday. it's the first since an agreement was reached with russia to allow the transfer of rain through the black sea port. the timing is yet to receive a go-ahead from the united nations. global news 24 hours a day on air and on bloomber

william dudley and former fomc vice chairman joint bloomberg tv at 3:30 p.m. new york time.loomberg. >> keeping you up to date with news from around the world. president biden will speak with china's xi jinping on thursday. the call will take place at a difficult juncture for u.s. china relations. house speaker nancy pelosi has not ruled out she will visit taiwan next month. china warned against the trip. beijing considers taiwan part of its territory. bloomberg has learned the justice department is using grand juries to investigate efforts by former president trump and his aides to overturn the election. the focus is on creating fake electors and pressuring vice president pence to refuse to certify the election. grain exports from ukraine should be due within the week and reach 25 million tons by the end of the year. that's according to turkey which brokered the deal which eased fears of a global crisis per the united nations has said the first ship could leave ukrainian ports in a few days. global news 24 hours a day on air and on bloomberg quicktake, powered by more than

this plays into the considerations of the fomc. the unemployment levels are at 3.6%.ightness of the labor market being cited as the reason from jay powell. this is after losses of the start of the session. this is after three straight days of gains stateside. the dax down 0.1%. and to the ftse 100, amid all of the uncertainty for politics, currently down by just three points. not a lot of movement. energy back in the green. we continue to keep across the decision-making in beijing around an additional $220 billion of infrastructure spending. officials could support the commodities complex going forward. the rest of the sectors led lower by real estate troubles. really modest moves here in europe, lack of conviction as we head up to that payroll data. let's get back up to the politics of the u.k. boris johnson has yet to leave downing street, but the race to seek the next prime minister is underway. we are joined by lizzy burden. get us up to speed on what the main contenders are for this job. lizzy: the rookie favorite at the moment is driven by proximity to boris joh

now expectations that we could get 1% on july 26 from the fomc. the ftse 100 lower by .1%, it will take time for markets to settle into position. we are looking in italy and the idea that maybe the stability of the technocrat mario draghi is starting to crumble, there is essentially a confidence vote later today in the italian parliament. italian btp's already trading lower. spanish ibex down .6%, but cac 40 down .3%. in the u.k., we watch the fallout, at least the jockeying amongst those hoping to take over the conservative party as prime minister. see how things are playing out across asset. you have had a real to be muted response after a volatile session, closing lower around .44 .5%, down .1% for the nasdaq, tech heavy indexes performing less badly than the broader markets stateside. expectations that you will get an increasingly aggressive fed, but are they going to pile in the rate hikes fairly, allowing the market to price cuts were 2023. major stateside losses of .2%, the inversion of the two's and hands is the most pronounced since aroun

we learn yesterday the fomc -- the federal reserve officials have decided to keep hiking interest rateso prevent inflation from becoming entrenched. even if that shows a bit of a slow down for the u.s. economy after 75 basis point hike last month, policymakers back to raising them again in july. optionality is the name of the game. a chief investment officer at lombard, good to have you with us. someone else did the counting and mentioned inflation 90 times but didn't mention recession. with these three little words, even more restrictive, have they given themselves huge optionality to to do another hike in the next meeting? >> the next meeting is probably a 75 basis point hike that we will see and probably we are seeing something like 70% in 2023. from that perspective i think it is already embedded in the market price and therefore we could see a better equity market performance going into the second half of 2022. of course there is much more rate hikes that are necessary and in this scenario it will be potentially bad for the u.s. equity market. does that mean you are among this crow

do not miss our coverage of this fomc decision, the fed decides wednesday in new york.oming up next, we get more on the profit outlook for the second time this year. the need to lower prices to clear out inventory. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >> we have breaking on the buyout. bankers are discussing new ways to sell chunks of the $15 billion financing to soften potential losses. we are seeing credit conditions remain in challenging after the financing was underwritten back in january. a sharp increase in interest rates. credit suisse and goldman sachs of pushed back the timing of this leverage alone to september varied we will have more d

sentiment softening this is one reason we think they will not hike and deliver a 75 hike at the july fomc meeting. that is the word from the economist team there let's talk more with bechbn eams ben, let's talk about the changing narrative it changed quickly about a full percentage point hike and now back to the baseline 75 basis point. in your mind, what is the appropriate path >> that 75 seems locked. it is interesting. we had speculation of 1 basis point last week because it was bad and not a good number. it is about expectation. the michigan survey shows the fed message is getting through to consumers and that is changing the expectation same for the new york fed survey low to midterm expectation declining. that is the comfort they don't have to slam the brakes and do 75 governor waller's view is huge with the big rate hike i think we are a look for 75 what matters is september and how restrictive it becomes the market is 3.5% of the fed fund rate by the fall. that seems right the data is important to watch we are in a slowdown it may change this fall. >> the timing is pretty good her

waller is a voting member of the fomc this year. >> we need to move to a much more restrictive settingerest rates and policy. we need to do that as quickly as possible. i am definitely in support of doing 75 basis point hike in july. probably 50 in september than after that, we can debate whether to go back down to 25. inflation doesn't seem to be coming down, we could be doing more. >> twitter shares slumped after the bell after news that elon musk's takeover could be in jeopardy. his team has reportedly stopped engaging with funding discussions. twitter says it intends to close the deal at the agreed terms. roughly on the doll has withdrawn from wimbledon because of a torn abdominal muscle. he was supposed to play his semifinal later friday but says he is into much pain. the controversial australian star is directly into his first grand slam final where he will raise novak djokovic or the british player. global news 24 hours a day on air and on bloomberg quicktake. powered by more than 2700 journalists and analysts in over 120 countries. this is bloomberg. >> china's minister of fina

we are looking ahead to fomc minutes on wednesday and nonfarm payrolls on friday as heated debate continuesut whether the u.s. faces recession. to china now, the developer shimao says it did not pay a $1 billion note which matured sunday, adding to a record year of offshore bond delinquencies. joining us for the details is christine young, one of the first to warn about shimao's liquidity problems last year. how widespread is this problem, and what can china's regulators do about it? >> the contagion has started from everywhere and now spread to shimao. we continue to see the liquidity problem persist going to the second half of the year. the three developers are china's top 15 developers, and there are a lot more smaller private developers that are similarly struggling with refinancing or at the brink of people. tom: so just how many, just in terms of how vulnerable the developers are, and the liquidity squeeze we are seeing, shimao was seen by many others as being relatively resilient. so what has happened, and what is the risk for other developers within the sector? >> we started the war

conor parkin is key because options open on helping the fomc should go when it raises interest rates.he rate policy is to keep inflation under control. >> we are engaged in a very challenging exercise which is to cool the economy down to normal levels. in an effort to bring inflation under control. or that the intent of trying to cool it -- without the intent of trying to cool it so down. >> china has criticized timeworn syndicates minister to mourn shinzo abe. china's response was more muted than usual. they say it was a personal visit. hong kong has suspended nonemergency services in public hospitals as they grapple with a certainty covid cases. the latest outbreak has pushed the number of patients in public hospitals to about 1000 health officials warned that infections could climb to as high as 6000 in two weeks. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. shery: abu dhabi is set to ba asset manager -- be an asset manager. the latest. why is abu dhabi interested in this deal? >> let us loo

rba position mark, fomc on wednesday, then the jobs report on friday.r will be critically important. 273 is what we are looking for versus 390. happy fourth of july to our american viewers. we've got a blockbuster day ahead right here on bloomberg. ♪ so many people are overweight now, and asking themselves, "why can't i lose weight?" for most, the reason is insulin resistance, and they don't even know they have it. conventional starvation diets don't address insulin resistance. that's why they don't work. now there's release from golo. it naturally helps reverse insulin resistance, stops sugar cravings, and releases stubborn fat all while controlling stress and emotional eating. at last, a diet pill that actually works. go to golo.com to get yours.

tom: welcome back to be open. 52 minutes into the european trading day, we are looking ahead to the fomcconcerns about recession yesterday dragging european stocks by 2% at the close, but currently seeing gains on the benchmark by about that much. the ftse 100 gaining about 2.4 percent, every single sector is in the green. let's check in on some individual corporate stories. asml is part of the midst, certainly. francine: let's take a look at some of the events we are following today. at 10:00 a.m. u.k. time we will have the latest retail sales data from the euro area. did i say area, area. then at mid-day we will have u.s. data including mortgage applications, services, come visit pmi's and job openings. then at 7 p.m. u.k. time the fed minutes. tom: the stocks to watch, uniper the german utility company, that stock down more than 6%. justeat, amazon taking a 15% stake in part of their business, gaining 17% on the back of that news. asml, the semiconductor equipment maker in the netherlands, under pressure from the u.s. to restrict sales to china. china saying this is technological terr

keeping an eye on what the federal reserve was thinking about this, fomc members, federal open marketee members decide the fate of rates meeting a few weeks ago. we'll get more details how many members were considering a big aggressive moves going forward, not just the 3/4 point, we saw that one but the growing betting that we'll see another 3/4 point hike in a few weeks when the fed meets yet again. let's get the read on all of this with the surevest ceo rob luna. good to have you. are you in the camp we'll see another big hike, maybe 3/4 of a point? >> yeah, i am in that camp, neil. the fed as you know was well behind the curve on raising interest rates, trying to combat inflation and i think they talked themselves into the position where they will be almost forced to do that. that being said almost important to the stock market is going to be some of the language we hear. if we continue to hear we're in robust economy, things are great, pie-in-the-sky type of language out of fed that will be issue for the market f they look reality, see what we see in the most recent data, start ta

he is a voting member of the fomc this year. >> we need to move to a much more restrictive setting in of interest rates and policy, and as quickly as possible. i am definitely in support of doing another 75 basis point hike in july, probably 50 points in september and then after that, we can debate whether to go back down to 25 or if inflation doesn't seem to be coming down, we have to do more. rishaad: hong kong's longest-serving market regulator will accidentally leave the post . ashley alder will take up a numeral in january. . it marks one of the highest profile departures from hong kong's financial sector. the regulator is saying that recruitment for a successor will start soon. we are looking at twitter shares, stumbling after the bell on a report that elon musk's $44 billion takeover deal is in serious jeopardy. the washington post says there are concerns that social cannot confirm its total spam users. . the billionaire four team has reportedly stopped engaging with funding discussions. let's have a look at that state bank of pakistan, raising interest rates by 125 basis point

here's the call from citibank, 100 basis points this month from the fomc and policy rates to reach 4% by the end of 2022. let me remind you, a few months ago when citibank came out with that call for a 50 basis point hike and another, a lot of people laughed and then it became the base case. then things went even further so the citi call, 100 basis points, remembering the banks calling for this have been out front on the tightening cycle in a way others have not. tom: are we simply prepared for 4%? we are not. jonathan: i don't think we are either. tom: let's get through this quick, because victoria's impatience. futures deteriorating -40. before jp morgan, now for -- -57. what do you see? jonathan: down 1.5% and we see further curve inversion, the 10 year yield a little bit lower. 2.6 2% on the 10 year. crude, 9390 -- 93 .92 on wti. tom: deterioration in em even as the philippine bank steps in with a rate increase. victoria fernandez joins us. what should mirror mortals do here? -- mere mortals do here? victoria: there is so much confusion. you've rattled off all these different thin

we expect the fomc's pace of rate hikes to be commensurate. the chairman is trying not to repeat the mistakes of april, when overly harsh language led to a collapse in the value of all major assets. now jerome powell's speech was the catalyst for a massive rally in the stock market, with high-tech stocks up 4% at once. and the s&p 500 broad market index at 2.5, thus, players expressed hope that the fed will abandon its commitment to excessive tightening, and in the rate market, expectations of another 75-point rate hike for the next year's market have sharply decreased. now there is an active policy easing. however, these hopes may not be justified. as it was after the previous two meetings, when the rally turned into a bear market. rustam kasumov igor nedelkin to explain new tax initiatives for russians who work abroad, the main goal of the ministry is to prevent non-payment of personal income tax by citizens living abroad, but working for russian companies the ministry of finance emphasized that tax rates for personal income tax and changes

checking in on your markets right now as we digest the 75 basis points from the fomc and jay powell'sou are seeing gains of a little under 0.5%. futures pointing lower in the u.s. nasdaq down by 0.6%. the context is initial gains on the nasdaq yesterday of 4%. it is a massive day of earnings. stay with us. this is bloomberg. ♪ >> as it relates to september, i said another unusually large increase could be appropriate, but that is not a decision we are making now. >>

so we think there is scope for a relief rally coming up to the july fomc meeting where we could see aounce, a perhaps prices edging back to 1750 in the near term. david: just to look at some of the key risks, or developments in industry here as it pertains to some of the targets and where prices go, the possible, or ongoing recovery in the chip shortage, why is that important? suki: this has has so many implications for not just the markets directly impacted like platinum and palladium, but also secondary effects in terms of inflation risks as well. so, for the gold market it has had a secondary impact, and that is inflation was expected to start to ease in limit of this year but that has been pushed out into some point in 2023 and inflation risks have been exacerbated. now we're seeing central banks raising rates at a much faster pace than was anticipated. for the pgm market, it is interesting because it is going to be the turning point of the chip shortage is that result in the bounceback in global auto production that will likely see precious metals start to outperform, say, gold a

fed president raphael bostic, has repeated his support for another 75-basis point hike at the next fomcng. he says the central bank can raise interest rates to 3% without sparking a recession. policymakers pivoted to fish aggressively lifting interest rates, as they work to tame the hardest inflation in decades. taiwan's president visited tokyo to pay respects. he is the most senior taiwanese official to visit japan since 1972. the trip is likely to elicit an angry response from china, which claims taiwan as part of its territory. abe was a largely popular figure in a one, for his support -- figure in taiwan for his support of the island. members have voted to strike over a pay dispute in the train. it could bring the network to a standstill for the second time in months. the union says drivers agreed to walkouts. members of another union also voted to support strikes. travel was halted in june by a three-day railway strike. liquidators off prep crypto hedge fund three ares capital say the fund's founders have not been cooperating and that their whereabouts are unknown. representative b

looking for the other factor on the fx side, the dollar story, coming off of any clues we get on those fomces. looking for details on what policymakers discussed. where the markets right in the direction they are headed? more on that next. this is bloomberg. ♪ ritika: this is bloomberg markets. i'm rate get grouped up. coming up, edward jones senior investment strategist joining bloomberg television. this is bloomberg. keeping up-to-date with news from around the world. here is the first word. ritika gupta. makers have voted down an objection to labeling natural gas and nuclear energy as green. that removes the last major barrier to billions of dollars of funding. new gas plants will be able to tap into fresh money from environmental, social, and governance investors, it only when they are replacing coal fire stations. in the first three months after invading ukraine russia took in billions of dollars from selling energy to china and india. that shows how high prices are limiting efforts by the u.s. and europe to punish vladimir putin. china spent almost twice as much of russia as a year ag

the jolt jobs opening report is also due out today as well as the minutes from the june fomc meeting.ay. >> those gas supplies to europe become that much more vital as the fall andwinter months approach. boris johnson survived a vote of no confidence not that long ago, seemingly dodges scandal after scandal and having a grand old time at the g7 last week but now two of his senior cabinet members have resigned from the ruling conservative party and flurry of other res ig investigations as well. what does this mean for boris johnson's future? are his days as prime minister numbered? >> possibly, but not necessarily. as we have seen many times, boris johnson has a knack for defying gravity. this news yesterday did come as a surprise, though. we saw that the chancellor sunak and javid oured resignations within minutes of each other. a number of other mps announced they are stepping down. the resignations come amid yet another scandal over boris johnson's honesty and integrity. it also comes after losses for -- in two key regional elections last month for the party. boris johnson, he acted

but i think last three days are so interesting coming out of that fomc decision, you know, hay be counterintuitive>> i'm glad my panelists are a little bit bullish here. pick three stocks, align, sherwin williams and best buy, all with bad earnings reports, but all rally ared after their reports. that tells you a lot. there's an old trader ax axiom that says it's not the news that matters, reaction to the news. it's a little bit different in the market, and it's telling us people were way too pessimistic going into earnings. charles: yeah, i want to pick up on that. it gets back to what michael's saying not only was the market oversold, but probably sentiment too bearish. however, there there's got to come a point, rob, where, okay, you're too bearish, but it doesn't mean you have to get very bullish. where does the pendulum stop? >> netflix was supposed to lose 2 million subs, they only lost a million, the market rallied, and that set the tone, charles. that's a huge shut from the last two greaters. so i think -- quarters. let's remember we've had a nice pop, but some of these socks are sill down

the yield curve flattening for the better part of four weeks now and with the fed on wednesday, this fomcsion for 75 basis points, probably that's what we think. if we do get that we're more than halfway to what our fed target is and having said that, you know, much of the tough grind, i think, for the tech complex that we saw in the first half, that is now behind us and looking into the second half of the year and into q3 immediately out of these q2 trends, i think that people can get more and more sanguine about prospects of tech near term and into 2023. >> yeah, it's going to be fascinating to see just how far out the market wants to discount a changing fed picture if in fact that's what we're going to get in the coming months sahak, that was great, we worked our way through good names see you again soon. >> thank you again. >>> and up next, buy now pay later company klarna taking a down road as fintech companies have seen valuations crumble, we will be talking to the ceo about that, the business model, competition and what's next. that comes after the break >>> a check on the state of

we expect the fomc's pace of rate hikes to be commensurate.the chairman is trying not to repeat the mistakes of april, when overly harsh language led to a collapse in the value of all major assets. now, jerome powell's speech has become the catalyst for a powerful rally in the high-tech nasdaq stock market. it immediately rose by 4%, and the broad market index s&p 500 by 2.5 in this way, players expressed hope that the fed will abandon its commitment to excessive tightening, and in the rate market, expectations of another 75-point rate hike for next year's market have sharply decreased. now there is an active policy easing. however, these hopes may not be justified. as it was after the previous two meetings, when the rally soon turned into a bear market. rustam kasumov igor nedelkin to lead and complete the issue, i will remind you the exchange rates for today dollar 60 rubles. 21 kop. euro 61 exactly, and on this is all i have for now. roman thank you now with the latest message, the allied forces of russia dpr liberated the ugolgorsk thermal

now the news comes on the heels of the fomc hiking rates yesterday 75 basis points. the question and answer period we saw jay powell, he tried his best, really to invoke the commitment to whipping inflation. the market took its cue from potential markers of inflation, more than necessarily the tone of jay powell. as the art of interpreting the federal reserve chairman has come a long way, folks from the days, you used to watch the greenspan briefcase. someone who remembers that joins me now. fdic former chair, volcker alliance founding director, sheila bair. author of financial literacy books, chart come and bill the -- thanks for coming on the show. start with the gdpreport. just your thoughts, the true health and direction of this economy right now. >> yeah. it is slowing significantly. i think, i've been wanting to -- methodology of this approach is what paul volcker did. they're being too aggressive on the short-term interest rate hikes and not focusing as much as they should on long-term rates. i think we're slowing. that is good in a way because we want prices

george, might be alone at the fomc but others like scott minerd, 75 basis points this time around probablywhat are your thoughts? >> i think about "lonesome dove," danny glover, robert duvall, esther george, what a great show. i guess the point i would make, charles, because the way the federal reserve changed monetary policy in 2008, when they started quantitative easing they separated interest rates from the money supply. so, yes, raising rates causes you know house, housing, sales to slow, raises the discount rate for stocks price but at the same time if they don't slow down the money supply growth you still have an inflationary and growth impulse in the economy so i'm not convinced that another 75 would cause a recession like that. eventually though the fed's going to have to go far enough to cause a recession. we don't think that is going to happen until 2023. it is not the next 75 that worries me. it is after that. charles: right. >> i guess the key point i would make with inflation at%, even if you have 3% short-term rates, they're still really low after adjustment for inflation. ch

investors trying to read through the lines of the june fed minutes at this hour as fomc participants markets are trading in a narrow range in a choppy session the dow is higher by 147, s&p up 23, nasdaq up 80. our floor show traders are going to tell us what they make of last months read-out as the fed

do not miss our special coverage of the fomc decision. it is 1:30 a.m. in hong kong. but us get to vonnie quinn -- let us get to vonnie quinn. >> china is getting prepared for nancy pelosi's possible visit to taiwan. they have not ruled out plans to visit taiwan, no final decision has been made. it could come days after an expected call between president biden and xi jinping. china is forcing the biggest companies to operate within a closed loop for seven days as the southern manufacturing hub bottles a covid outbreak. operations are limited to employees living within a closed loop or bubble, allowing no contact with other people. tougher stances on china in a battle to become the next uk prime minister. one says china is the largest threat to britain, proposing measures to maintain -- lesson china's influence. >> we should be cracking down on those types of companies. we should be limiting the amount of technology exports we do to authoritarian regimes. >> global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analyst

next week, don't forget, we have the fomc interest rate decision and earnings from big tech. ♪ sean:he president tested positive for covid and the white house up sifts he is doing well. joining me, brian kilmeade, host of the brian

investors trying to read through the lines of the june fed minutes at this hour as fomc participants zeroed in on bringing down sky high inflation markets are trading in a narrow range in a choppy session the dow is higher by 147, s&p up 23, nasdaq up 80. our floor show traders are going to tell us what they make of last months read-out as the fed looks ready for even more rate hikes, especially the meeting, the last week of this month. now, these higher interest rates driving up mortgage rates, making it even more difficult for first time home buyers to achieve the american dream. divy homes has a unique rent to own alternative and its ceo is here to explain in a fox business exclusive and chaos at the airports driving summer travelers mad. what is behind the disruptions at the airlines? and are there still summer deals to be had? we're going to take that up with the founder of scott's cheap flights. hello, everyone i'm cheryl casone and i'm in for liz claman taking a look at your markets right now the minutes from the federal reserve's june meeting indicate more restrictive tighten

vonnie: the richmond fed president keeping options open and how big the fomc should go when it raisest rates. he says the right policy is to keep inflation under control. >> we are engaged in a challenging exercise. trying to bring inflation under control but without trying to cool it so much, the right policy is to get inflation under control. >> janet yellen is showing no willingness to support a currency intervention to support the yen. after meeting with the japanese finance minister, she said they did not discuss intervention and g7 nations should have market determined exchange rates. opec oil market outlook suggests no relief for squeeze consumers. to fill the gap, opec would need to hike production, but members are falling far behind due to underinvestment. president biden is urging middle east producers to open the taps. china has criticized taiwan's decision to send their vice president to mourn shinzo abe. a spokesman abused taipei of political manipulation. beijing's response was more muted than usual. he says it was a personal decision. global news 24 hours a day, on air