let's get out to francine lacqua in rome. how are we set up going into the selection? his election? francine: the markets are expecting a right wing coalition. we could take a few days going into the polls. it looks like there could be a leader of the next government. a little bit and a lot. we know that she was extreme right wing in her youth. we know she is becoming a moderate politician. many see it as two faces, she will state the right things to some of the investors, to brussels. she wants to renegotiate. she wants to keep debt under control but the concern is that when she speaks to her public, the italians that will vote for her, she is italy first and replicates some of the things we hear from donald trump. she keep saying that she will tell us. she is trying to get the vote through value. she is anti-immigration, anti-lgbt. once she gets into power, can she hold everything together? what kind of prime minister she will be, not a lot of answers at the moment. dani: we are looking at the ecb continued to hike rates. debt piles. francine: i would imagine that mar

francine lacqua in rome. bit of solace for europe is after the italian election, the euro is stronger against sterling but basically everything is. gilt markets are closed, so some of the pressure is being released through the u.s. bond market. at one point, to year of 10 basis points, now nine basis points. the yield hitting 4.3 percent, now just under that. local bond markets selling off in reaction to what is happening in the u.k. what will happen when these bond markets open at 8:00 a.m.? we will dive more into the u.k. story next. this is bloomberg. ♪ >> there is more to come, we've only been here 19 days. i want to see if over the next year people will save more of their income. i believe the british people will drive this economy and that's why i want people to retain more of the income they earn. dani: the new u.k. chancellor speaking on plans to cut more taxes despite the meltdown in u.k. assets we have seen. let's get more on this story, the pound has plunged to record lows this morning, bouncing ba

francine lacqua is on the ground. is bloomberg. ♪ francine: welcome back to the open, everyone. 30 minutes into the european trading day and here are your top stories. >> we've only been here 19 days. i want to see over the next year people take more of their income. i believe it is the british people that are going to drive this economy, that is why i want people to retain more income that they earn. francine: sterling crash, the pound plunges to a record low as chancellor kwarteng vows to press on with tax cuts. expectations mount for assertive action from the boe. plus, the end of the draghi era. italy's giorgia meloni when i go sunday's election, ushering in the most right-wing government since world war ii. where are we on the gilts curve? tom: remarkable action, the two-year gilts curve up by about 50 basis points. the 10 year above 4%. across equity markets, europe with losses of .2%, a choppy session as investors look for direction. a selloff across global markets. the worst year for global bond markets accord

i'm francine lacqua in rome to head up elections on sunday. tom is in london. tom: yields search, stocks sink and the dollar bounces as central banks unleash recession fears. italy votes, we are live in rome in what could be a historic election. fiscal boost. the new u.k. chancellor kwasi kwarteng is set to unveil stimulus plans today. we are going to check on futures, francine is in rome to give us the latest on the buildup to consequential elections in italy. the markets focused on the yield spreads their amid arguably greater political risk. that futures are pointing modestly higher in europe, stateside last i checked losses of .2%. the central-bank action being digested from yesterday, the boe 50 basis points, snb with 75 basis points. in asia, worth noting losses there, likely to get six straight weeks of losses across the benchmark. i've asked down .2%, the ftse 100 just off by a 10th of a percent. looking ahead to the mini-budget from the new chancellor of the exchequer. tax cuts are said to be central as they tried to revive the u.k. economy. a number o

. >> this is "bloomberg surveillance: early edition" with francine lacqua. good morning, everyone and welcome to "bloomberg surveillance: early edition". i'm francine lacqua in london. global dignitaries f

i'm francine lacqua in london. all of the attention focused on the passing of queen elizabeth. >> yes, good morning. britain's longest-serving monarch has died at the age of 96. they grieving nation starts to come to terms with the end of an era. she reigned for seven decades working with 16 prime ministers. for the united kingdom and much of the world, queen elizabeth the second defined the latter half of the 20th century. king charles iii takes to the throne. francine: i know it is so moving and you are there in front of buckingham palace. seeing these wonderful and heartfelt pictures of people leaving flowers, what is it like there? anna: yes, we are surrounded by the world's media, as you might expect. the passing of one of the most famous woman in the world, one of the most recognizable women in the world. in britain, many people still find themselves quite shocked at the news of her being monitored carefully by doctors and then things move very quickly. it wasn't until just after 6:00 at night u.k. time that

joining us now to discuss this moment in history, the welcome francine lacqua and john authers and guy johnson, an array of people who call the u.k. home. francine, as someone with an international perspective, it is noticeable that 2.5 billion citizens lived in the commonwealth. she is also the monarch in australia, canada, jamaica. your thoughts on this moment? francine: first, this is a week of morning. i am sure we will see outstanding sympathy from people. so many were saying i hope queen is ok. she was 96, so this has been planned meticulously. she was the official head of state.. she was no longer playing an official role in government but did undertake constitutional duty. if you reflect on the attachments of the citizens, that is one thing. we will spend time looking at the pageantry. every detail has been planned, but this is a constitutional monarch, so you will see king charles or whatever name he will decide to take and this will bring huge change. they will have to get used to having a new monarch but also everything in london. that will have to change. charles has steppe

i am francine lacqua in london with tom mackenzie. tom: the s&p 500 drops to a 22 month low as the fed's loretta mester says u.s. recession will not stop fed hikes. the u.k.'s labour party surges to the biggest polling in over two decades in the wake of liz truss' mini budget. eu energy ministers are set to have an emergency convention on gas caps. francine: we have made it to friday, which means a volatility and some of the wild swings we have seen. the pound now back to the levels pre-kwasi kwarteng budget on friday. ftse 100 features are flat. tom: james bullard also saying that the markets are getting it. not having higher rates without having more pain, but that was essentially the message from the fed officials. the ftse 100 currently down 0.1%. the estimates have been around 6.6% and that is slightly softer inflation out of spain, but the inflation print out of germany was distinct around 10%, the highest and nation out of germany. the cac currently getting 0.6%. we await more details on the energy plans from the banisters -- m

. >> that was the imf managing director speaking with francine lacqua.t banks -- pretends to visit seoul, korea for the first time in three years for a potential partnership. he says his final goal is to take the company public in the u.s. after the sale to nvidia fell apart. jamie dimon has signed cryptocurrencies again calling the digital asset decentralized ponzi scheme. in congress he said data points would not be problematic with correct legislation. elliott investment management bought about $1 billion of a jump on deal supporting its own buyout of a software company citrix. >> coming up next, our guess tells us why a hope of apace it -- pivot is silly and why we should not fight the fed. this is bloomberg. ♪ >> my colleagues and i are extremely committed to bringing inflation back down to the 2% goal. we raised the target range to 3.75% and there will likely be softening of labor market conditions. we should move our policy rate to a level that is restrictive enough to bring inflation down to 2%. we have just moved into what i believe is the very

i am francine lacqua with tom mackenzie. tom: liz truss has earmarked 130 billion pounds to help households with energy bills. and eu wide windfall tax on energy company profits. and stocks and futures waiver as european markets way unsentimental from the rba boosting to a seven-year high. francine: that is what the futures are doing. they are struggling with direction and yields are rising. you look at the pound and there was a list of the troubled pound. we are not talking about a possible imf bailout. this is like deutsche bank. futures are kind of flat. tom: uninspiring this tuesday. we have the economic risks and the economic challenges -- policy challenges for the incoming prime minister, liz truss, who surprised many by coming out early with this plan of hundred 30 billion pounds. we are waiting for additional details and boris johnson gave his dispatcher speech -- departure speech. no windfall tax so far and she pushed back on that. a subsidy for households and those energy businesses. the cac currently down 0.2%. we