goldman sachs calling employees and dropping restrictions to get back to the office.l street yesterday transfixed by strong u.s. data which seemed to just enforce this idea that the fed can and perhaps will go at it another 75 bits. manus: then you had the new york fed, williams making a very cogent message, which is we may move into this hike can hold pattern. we may stay there for longer. whatever that terminal rate may be. in terms of the risk assets you have to your paper, down 50 basis points in the past month of trading at the short end of the curve. up seven basis points yesterday. go big or go home. consumer confidence and the jobs data may embolden the narrative. oil has managed to rally upwards of 1%. will opec cut production next week? that is the question you are asking yourself and the market. you may have political instability in iraq, but they are reassuring not at the moment. euro-dollar parity as there seems to be movement to decouple gas to prices. that emboldened the move down on european gas futures. germany dropping by 20% yesterday. how will they

goldman sachs for better or worse in my opinion for worse simplifies that relationship. >> oldman sachs is an official investment bank. it's one of the financial institutions that's really elite, getting a job atg goldmn sachs that's what we aim for for better or worse. >> there's things i would like to have been better, one of the things i was really get is i giving myself protected corridors of elite america i've done over the last 15 years and there's better skills one canha have but that turned out that was a skill on accident with repeatedly practice i did 92006 included at goldman sachs and there is something i learned that summer. i didn't learn much about that, i did learn a lot about how to aggregate power how to aggregate power in a way that wasn't actually appearing to the aggregation of power. one way to do goldman sachs had a hallmark which was service day you plant trees, the thing i noticeds nobody was interested n plain trees everyone showed up except for the boss they were telling investment stories and catching up on office gossip, the thing that we went to harlem to d

goldman sachs cut to 3.3. no more cut to 2.8. in a world where nothing is growing as quickly as the u.s., to your point, the dollar remained strong, and how firm is that trade even further today? >> there is nothing out of china recently that would suggest they can do anything other than lower interest rates again. there is no reason to reduce liquidity. everything points in the opposite direction. as long as you have that pressure coming, that is not good for the yuan. it does not mean it will collapse, but there's no reason to be bullish on the yuan when you see those factors in place. the rate differential is so wide between the u.s. and chinese rates, if you look at the yuan performance, it pays you to belong dollars for the yuan. if the market stays stable and you own u.s. dollars, gradually your earnings are up against the yuan. there is an incentive to short the yuan and by the u.s. dollar. euro let me correct myself -- david: let me correct myself, the new forecast from goldman sachs, 3%. if you get lucky, you might see t

goldman sachs coming out on top. her financials over the last month, especially j.p. morgan chase. you flagged this one, what is your take, is goldman being great and goldman being spectacularly average? >> i'm not suggesting by any stretch that the music is over. what i will say is goldman will continue to break through to the other side and we talked about it before, this environment, goldman sachs trading will absolutely crush and that's what's going on and in a world where j.p. morgan is taking provisions, goldman sachs is showing it on the trading side so i think it will continue and i think goldman should be $360 stock where j.p. morgan is mired in the 114 area. it favors goldman sachs over j.p. morgan. >> a big bank feel or a comment for us? >> i cannot hold a candle to guy. i said before that i'm not super high on the banks in general but guy hit the nail the head. investment services 90% of goldman's revenue and j.p. morgan more traditional banking. the one thing i would say relative to goldman is sparing the

it's classic customer service. >> apple chose goldman sachs, because they were a blank sheet.start this platform on the cloud they weren't going to be like citi or chase with a 25-year-old or 30-year-old credit card platform they wouldn't want to see the cool things that apple card can do goldman sachs had automated a lot of the parts for the front end of this. that means i go to my e phone, i go to the wallet and say this transaction, i didn't like that, boom, boom, you disputed it, and you started the chargeback they neglected to automate the back end when the complaints come in, and they can be complex to adjudicate, but they that for later on, so the service personnel were struggling. in some cases, they've had people who said, i provided goldman sachs with evidence this wasn't me, and yet they still sided, after four months, with the mvp. >> the users have saying going to the cfp with your complaints. with all of the complaints and the challenges they two companies have faced is there pretty wide adoption what do you think both will continue to invest in, in terms of tryi

sticking with goldman sachs, they made a negative prediction on the u.s. market, saying it has further to go to the downside. how does that lead to where you are in the u.k.? you have higher interfaces, surging inflation all taking a toll on u.s. housing. data earlier show u.k. market housing approval did improve. let's get the real view with charlie bryant, ceo of a real estate company based in london. if i am your friend and we are having drinks, what would you describe your business as? charlie: a lot of the things strong in the markets during covid remain valid. the u.k. is seeing higher demand on the buy here aberration. it is very much a regional story. 6% up above the five-year average. the more affordable places seeing an increase. 9% more properties are weaker than they were previously. the market remains strong. anna: let's think about the headwinds. if i'm thinking about buying a house, but also reading headlines around gas prices and inflation and reading the goldman sachs forecast that says inflation could go as high as 22%, and i think about

shery: goldman sachs speaking with tom keene. coming up.d a global rusk to secure lng shipments, western reliance on gas exports will soon wayne. we will get her take on it, next. this is bloomberg. ♪ ♪ vonnie: i'm vonnie quinn with first word headlines. directors at two of the 12 fed regional bank favor a bigger increase in the discount rate in july. the minneapolis bank governor voted july 14 for a bigger hike than the 75 basis points delivered. votes by regional directors can be symbolically important of the separate benchmark fed funds rate. the indonesian central bank delivered a surprise 25 basis point hike as it tries to manage and placement and stabilize the rupee. the first increase since 2018 was only predicted by seven out of 31 analyst surveyed by bloomberg. the bank governor warned inflation was likely to exceed the 4% target this year. a tropical storm is bringing heavy rains and high winds across the northern needs. the storm could cause flash flooding and landslides in northern ireland is of the island nation. it is forecast

goldman sachs is lifting five covid rules including vaccination requirements.is ordering staff back to the office. morgan stanley is also easing some covid mitigation efforts. i am joined by benedikt in berlin. what are the rules goldman and morgan stanley are easing? >> this is around the idea of access to offices. morgan stanley has said testing requirements will no longer be enforced. goldman sachs is saying that vaccination status is no longer key necessity for getting access to the office when you are coming to new york from outside. it makes it easier for people to come to offices. that is part of the push by the office-based economy to get people back more than just one or two days a week, or last. -- or less. we still have very underpopulated office spaces in places like new york, london and frankfurt. a lot of places have gotten used to doing the bookends, mondays and fridays at home. it's the older people, the executives who are saying you should come back to the office more. tom: that generational divide will be a shock to the system for some. why ha

he kathleen: goldman sachs looks covid requirements as it pushes for staff to return. that's get a quick check on wall street. another down day, thursday and aro where stocks close lower. we had three fed presidents putting their two cents in, to stronger-than-expected economic reports from the consumer and economy suggesting there is plenty of room. the s&p 500 and nasdaq closing 1.1% lower. you can see on the futures market, the nasdaq is steadying. it had been down 1%. they all go negative. the 10-year note traded around 3.1, the two-year trading at 2%. upper pressure on bond yields. in the crude oil market, enclosed around $97 per barrel with concerns around conflict in baghdad. oil close down -- closed down. the risk off move -- in terms of the move, the 75 point rate hike. in december, this is what we will see filtering. annabelle: that chart is the main front and center picture today. the odds of a 75 basis point move because we have futures trading like this. july jobs openings, the u.s. consumer confidence beating estimates. it's packed data. japan, korea, the

. >>> goldman sachs lifting its vaccine and covid requirements for workers in most offices. quk x"iltas xt"sawbo wl be right back. >> announcer: squawk picks is sponsored by wisdom tree, the modern alpha pioneer >>> goldman sachs dropping all covid protocols and will be requiring all employees to return to the office five days a week joining us now lydia moynihan, new york post wall street reporter i try to keep my own opinions out of this, lydia we were supposed to -- remember 2020, supposed to reopen by easter what is goldman sachs, what is their conclusions now? the pandemic is over ask it's just -- it's not that important anymore. i felt that way for a while. i'm healthy. i've been vaccinated many, many times. i've gotten the boosters, i've had covid. so i haven't worried about it or worn a mask in a long time so this seems late to the game but for the corporate world which is so cya focused this is like a big risk for goldman sachs to do this >> well, i think if you read between the lines of the memo, yes, this is a memo about lifting all covid protocols, but i think th

this came out from goldman sachs .sits good markets -- because of declining inflation. u.n. rbc capital markets perceived declining inflation? tom p.: we do. we think inflation will slope and you start to see slowing around the turn of the year at the core level. headlight is a different animal. we will see what happens with energy prices. our house call is they will be on the rise. we think they will wind up slowing down before the end of the year. you have to go through one more month of unfavorable comp. we think there is price pressure that we are starting to see the downward price pressure. it is not going to be a notable way but you will start to see things slow even as early as the end of the year, and as we roll into next year, i think it is reasonable to think for inflation could surprise people to the downside. there's a lot of price pressure in the pipeline. is downward price pressure in the pipeline and we think that will hold up. lisa: others say we will look at wages and how much they are increasing, look

my biggest issue with goldman sachs right now is the fed the fact the fed is really starting to raise rates and kind of is adamant about going to 3, 4%, it's really going to stymie their investment banking business which is a third of their business it may stymie their trading business if markets slow down a little bit obviously the stock is at the upper end of book value and so, therefore, goldman sachs right now is probably a sell the put kind of a story. you either want to sell the 3/10s but i wouldn't want to own it at this level right now. >> cheers for you, boris thank you for that >> thank you so much >> for the full list of stocks that made the screen and other top investing news and stories of the day, head on over to cnbc.com/pro. >>> up next, a new sign that inflation is starting to ease. we'll go under the mroopicsce and look at that when we return. icy hot pro. ♪ ice works fast... to freeze your pain and your doubt. ♪ heat makes it last. so you'll never sit this one out. icy hot pro with 2 max-strength pain relievers. >>> a new look today on how inflation is hitting the w

had of european luxury goods research at goldman sachs. we're live in nairobi next. bloomberg. ♪ francine: welcome back to the open. 52 minutes into the european trading day. it is all about cpi in the u.s. kenyan authorities have begun counting ballots in one the closest elections. we are drawn from nairobi, accounting is underway, what are they saying? >> counting is underway. it is still early. what we saw a few hours into the day is that the deputy president at this point in time, it is still early, is taking a slight lead over the former prime minister. only about 10% of the votes are counted at this point. they are expected to get the first official result from the electoral agency here. there's a to pay attention to. it is looking like a very close race. voter turnout was down significantly this year, which is important to point out for young country like kenya. still a lot to watch for in terms of reaction on the streets and from the campaigns. that has a lot of effect on overall sentiment. tom: still a long way from really calling it. what will the priority

goldman sachs said they see some increase.not say how much, they expected to be pretty modest. they say there is a chance. francine: the market is so tight, it would make sense to put extra supplies out there. >> when you look at the global market, it is still tight. goldman-s, -- that would push opec-plus towards pumping more oil. the group does have many issues with the argument. one of them is the u.n. fears about -- if not a global recession, then a slowdown in china and europe in the u.s.. if you look at the oil market, which are a good sign, this of tim dunn quite a bit the last few days. there are reasons opec could say demand is leaning. francine: there are two people who expect extra supply, this is like reading the tea leaves of opec-plus. the longer it lasts, we may have an agreement, then the problem is pumping it. >> even if opec-plus did agree to some output increase for september, there's the problem of how much it will actually be able to deliver. pretty much all its members, certainly the core opec group are a

thank you for joining us goldman sachs management o cif. >> and down 14 on the dow.ashish said, it's some of the markets that are under pressure that's energy, financials, materials, although consumer discretionary is having a good day. at the top of the markets yo have staples industrials are a little higher celsius heating up pepsi is taking stakes on th company that has wall street buzzing. closing bell will come right back >>> what is wall street buzzin about today? a jolt for celsius the energy drinks company, not the bankrupt crypto lender peps key announcing it's investing $550 million and for a long-term distribution deal. it's a very fast growing energ drink that builds itself as healthier cleaner alternativ with ginger and green tea an vitamins its share has been growing fast take a look. thank you to beverage digest celsius has a 3% share monster and red bull dominat the energy drink business, but as you can see celsius has bee growing quickly. and this deal according to jpmorgan would likely boost it distribution, at convenience stores, gas stations, whic

goldman sachs says it will not move their gross growth projections. german numbers that have been coming out have been better than expected, still only a margin. only a previous call from 0%. the things to watch are basic resources, oil, and gas. russia has nord stream 1 closing down temporarily until the end of the month. we continue to look at this. other major indexes are also up and we continue to keep and i on what is going on the fx space. currently, the spanish ibex at 0.4% higher and the cac up 0.7% as well. let's hear what jay powell had to say on wyoming on friday. look at futures and across the bonds as well. you are futures pointed to gains of 0.9% -- u.s. futures pointed to gains of 0.9%. the euro-dollar back up from parity, currently just at one. the gas picture at lower prices is a key drag on euro. u.s. 10 year currently holding up, not a lot of movement, just one basis point, and brent at $101. we saw it go up since august by 10%. it is up 0.3%. let's get over now to bloomberg's mliv managing editor, mark cudmore. you are looking at u

jan hatzius, chief economist at goldman sachs. china, gdp forecast at goldman now 3% for the year.base case for everybody, they into recession. where on earth does that leave the u.s. economy? jan: i think the u.s. does not have quite the same degree of headwinds as both china and europe. in china you have zero covert policy and the property market downturn, which is a multiyear development. in europe you have the gas issue. there is nothing quite to the same degree we have in the u.s., but it is going to be a slow growth environment. the fed wants below trend. that is why financial conditions are where they are. it is tightening pretty aggressively. and you have the fiscal drag. plenty of headwinds, but i think it is not quite as bad as in china or the euro area. jonathan: i do you expect chairman powell to navigate that this friday? jan: i think you will be bouncing between two things. one, i think he will lay out a case, as he did in his last press conference, for slowing the pace of increases. we had two 75 basis point moves. our expectation would be, barring data surprises, th

jeff currie of goldman sachs you matter thank you, jeff.eat day >> thank you >>> always welcome let's get to the top corporate stories, including elon musk taking new action in the legal battle with twitter. silvana henao is here with that and more welcome back, silvana henao. it's been a minute. >> i'm back. we'll talk about musk. musk's legal team telling the twitter whistleblower they want to hear from him as they look to bolster musk's case to back out of the $44 billion takeover. lawyers for the former security chief reveals they received a subpoena over the weekend over the twitter handling of fake accounts is a key argument of the musk efforts to abandon the deal and could play into the case nor into the come upping tl in october. >>> peloton is delaying the financial release. it needs more time to sort out accounting tied to the restructuring efforts before releasing the 10k. peloton says it has to figure out the financial impact of parts of the turn around plan, including moving away from delivery and warehouses. >>> lawmakers in c

goldman sachs does not believe chair powell will be going over. we are talking about the markets racing for the 1980's with inflation increasing, powell not transforming to say it will not be a moment and he expects 3.5% to break inflation. haidi: really interesting given the expectations. the take a look at how the markets are reacting. power cross asset reporter joins us. what does it feel like? is it back to obesity -- potentially a bear market rally? reporter: markets are taking a pause. they are waiting for jackson hole. the fed chair -- for now, the s&p 500 lower for a third straight session. trade volume was lower. the nasdaq was flat. the last time we sawed happen was earlier this year. it is a mix of things. the dollar halting a four-day rally. people are skeptical, but it remains to be seen. markets are trading range bound. shery: people are concerned because of the market bullishness leading up to jackson hole, except for this week. are we expecting chair powell to come out with any remarks to micromanage financial conditions? what can

has got a role here because we know that that goldman sachs is involved. we know the u. s. has, has had a plea bargain with one senior found guilty. the key manager for that, for that area of the world. so, you know, there's, there's, there's, there that there's evidence being handled by the us. it's probably being turned over. confronted with, with malaysia, out of the whole thing there, the, the it, you know, who's, who's to, who's to say that needs correct. and then he get, this is his, we're, who's the say that he's not misled. you know, it's the government, the bringing the case, the government probably backed by the u. s. government that's providing whatever evidence being you the as an uphill battle. and then the question is, was the judge actually biased the thing? so that's another question on that. and a new chinese government, me, me highlighting american foreign policy. failures is enjoying $37000.00 likes on twitter. that's as relations between the 2 countries continue to simmer on the back of controversial high level u. s. government visits the type, hey every

whatsapp, muchas comunicaciones se perdieron& los sancionados seÁn bank of america, barclays, goldman sachsr del mundo hay unos 75 millones de personas que se ganan la vida como trabajadoras doÉsticas... en california hay una organizacÓn que ayuda a estas personas a conocer y defender sus derechos... uno de los recientes logros es que estas trabajadoras seÁn inclÍdas en un plan de salud estatal... romi de frias nos informa desde los angeles... el departamento d poliÍa de cherry hill, nueva jersey, le de poliÍa de cherry hill, nueva jersey, le presenÓ al conocido actor "gary busey" cuatro cargos, entre ellos dos de contacto sexual delictivo en cuarto grado. el actor estuvo de visita en la ciudad durante el fin de semana del 12 al 14 de agosto, para aistir a la convencÓn "monster- mania", en el hotel doubletree. el departamento de poliÍa o ha querido dar Ás detalles sobre el incidente por el momento. durante el verano, y con las playas inundadas de baÑistas, aumenta el Úmero de personas que se ven en apuros en medio de corrientes de resaca y que necesitan ser salvadas. ahora, los salvavidas c

has got a role here because we know that her, that goldman sachs is involved. we know the us hence has a plea bargain with one senior christian found guilty. the key manager for her, for that area of the world. ah. so, you know, there's, there's, there's an aspect, so as evidence being handled by the, you are, i'll be turned over or confront with malaysia. i'm out of the whole thing there, the, the on it, you know, who's who's to are, who's to say that he's correct. and he, he got this words, it says we're who's to say that he's not before, you know, it's the, it's the government that's bringing the case, the government probably back by the us government that providing whatever evidence is being used. i the as an uphill battle, and then the question is, was the judge actually biased? the thing? so that's another question on that. ukraine is perhaps the most, one of the most of the world. you see anyone going after mister berlin? remove the power. absolutely. so, so they played the much, much role of much deeper role in this than, than people realize. and so spe

has got a role here because we know that that goldman sachs is involved. we know the u. s. has, has had a plea bargain with one senior fish and found guilty. the key manager for that, for that area of the world. so, you know, there's, there's, there's an aspect, those evidence being handled by the us. it's probably being turned over or confronted with, with malaysia, out of the whole thing there, the, the, you know, who's close to who's to say that needs correct. and then he got, this is his, we're, who's the say that he's not misled. you know, it's the government, the bringing the case, the government probably backed by the us government. that's providing whatever evidence being you yes, an uphill battle. lemme, but this was the judge actually biased to the left. another question on that. moving on to latin america, we're brazil's former left us leader lula desilva remains a front runner and presidential elections scheduled for october. the silva who's served as president for 7 years in 2003 received 47 percent of support in a recent opinion full. while acting president ja

generally, we would see implementation of -- >> goldman sachs, head of asia internet research the brutalityext, hong kong's fintech companies, with just 50 employees of its stock growth, making it more valuable than goldman sachs. details just ahead. this is bloomberg. ♪ >> here's a quick check of the latest business flash headlines. blackrock tubing up with coinbase to make it easier for institutional investors who big points. they will allow them to manage their exposure to the crypto exchange. blackrock says the focus is on bitcoin, and coinbase shares up. evergrande says it will receive an $818 million refund after canceling a contract to build a football stadium. the refund will be transferred to the escrow account, with funds used to settle debt. they are expected to take a loss of $185 million minus the refund. one of the world's most successful investors cutting ties with amsi, -- became worth almost four times more than goldman sachs. it's a wild time for a company that only has 50 employees. let sheds more light on this. what we need to know about this company, what is going on he

nothing for disadvantaged tribes vote yes on 27. >>> goldman sachs out with stock winners.down 20% year to date uber which has fallen more than 30% and meta down about 50% this year all these names are lower in today's trade as well. let's bring in todd gordon, a cnbc contributor todd, let's start off with amazon obviously under some pressure here today as tech stocks broadly are the worst performers in today's market. what do you do in particular with amazon and why? >> i hold amazon i like it. it's about a 30% weighting in my growth portfolio don't forget we've seen a major rotation into tech and consumer discretionary but this is just a pullback amazon has had its own problems. it's been underperforming about two years. look, they have an unbelievable logistics distribution network they had obviously some problems in q1 and 2 earnings, issues with fulfillment, too many employees, but their margins are strong if you look at those last aws margins, their growing revenue is 27% and traditional business is only 3.6. so they're really doing well they're moving on the media fr

well, a dark warning from goldman sachs, the housing market will end 2022 down across the board.-sport researchers expect sharp decline in new and existing home sales and housing gdp. they expect declines throughout all of next year too. now, while housing may be on the cusp of a downturn when it comes to rent, that's still on the rise for now. according to the zumper national rent index, that's a newly listed one bedroom median rent up 11.8% in this country year over year as of august. more than half of cities saw a double digit rent increase. while rent continues to rise, one company is trying to up end how we rent. landing is a membership-based company and gives its members access to fully furnished apartments and 81 markets with flexible leases. you can go one month, you can go one year. lots of questions i want to bring in and how to explain how to work the founder and ceo bill smith. great to have you here. >> great to be with you today. cheryl: this is a really interesting concept because a lot of people during the pandemic were jumping around. if i'm going to work out of

shery: not surprising goldman tactic -- goldman sachs is cutting china's gdp growth for test. -- forecaster and farther away from the 5.5% target. >> this is the second month in a row that goldman has cut. july and now. the for your target to 3%. china has plenty of problems. covid outbreaks. and now electricity shortages in western china because of the heatwave combined with drought and lack of hydro leading to industrial users and now residential users having electricity cut back. haidi: john with the details. aco says he is optimistic despite a lien year in 2022. nicholas told us listings are already coming up with signs of economic recovery. >> when we saw a little uptick in activity in june and the markets in this part of the world performed a little better, ipos quickly picked up and we have had 16 ipos in july. very good performance. we had all those ipos and the pipeline still around 180 so the pipeline was replenished and we continued to see, it is hard to project when the market will come back. it is much easier to project 10 years from now than what will happen in six months. >

goldman sachs, according to their forecasts, the barrel will rise in price in the future, despite thet drop in quotations , bloomberg reports this; nevertheless, the bank lowered its estimates for the cost of brent oil from 140 to 110 dollars in the third quarter and from 130 to 125 according to the results of the fourth forecast for 23 years no change $125/bbl i don't expect a sudden rise in oil prices, but the european embargo on russian oil comes into effect on december 1, and the chinese communist party congress, we believe, will ease the coronavirus restrictions and the market situation will become tense very quickly, so we we still maintain our forecast for oil at over $120 by the end of the year. a big company is now deployed against russian oil in july, the european union led the sixth package of sanctions, providing for partial barrages on us supplies great britain canada set import ban g7 countries also want to impose a ceiling on oil prices from russia by december however, it will be very difficult to create a truly broad coalition when indian or chinese companies are invit

. >>> coming up, goldman sachs announcing overnight it is rolling back covid mandates for most of itsmployees working at home? a monster was attacking but the team remained calm. because with miro, they could problem solve together, and find the answer that was righght under their nose. or... his nose. joe biden and democrats in congress just passed the inflation reduction act to lower our energy bills. investing in american-made clean energy means our families will save $1,800 a year on energy bills. that's more savings for us. age is just a number. and mine's unlisted. try boost® high protein with 20 grams of protein for muscle health. versus 16 grams in ensure high protein. boost® high protein also has key nutrients for immune support. boost® high protein. want a permanent solution to homelessness? you won't get it with prop 27. it was written and funded by out-of-state corporations to permanently maximize profits, not homeless funding. 90% of the profits go to out-of-state corporations permanently. only pennies on the dollar for the homeless permanently. and with loopholes, the ho

jeff currie is global head of commodities research at goldman sachs. we had a guest yesterday from citi, jeff, who goes the other way. you say there are irrational expectations out there that are keeping the price down and moving lower what are they, and what do you think will jar those irrational expectations or sideline them so that prices begin to move back in the direction you expect? >> well, it's primarily been driven by investor liquidation over fears of a recession. the other thing that's likely going on is destocking if you really believe we are going into a disinflation environment and that we're going to see a substantial slowdown, you destock your inventories waiting to buy at a lower price. we see that metals, agriculture to a lesser extent and energy. investors are also liquidating their positions, and why i call it irrational is you have prices going down and inventories going down bullish fundamentals with downward price action is not sustainable. and i like to point this out the last time we had the rate markets price in a recession wi

alix: goldman sachs is the same, the commodity markets are holding irrational expectations for why oil is so much lower here. the s&p energy index underperformed. tech outperforming up a .9% despite the fact that the two year yield is moving higher. you have the data that was mixed, but the expectations had a big jump. current conditions are a bit lower and you had a selloff in the front end with a buy off on the long end. i mentioned energy. the worst performing stock in the s&p is a gene sequencing company. had a surprising outlook cut that is really dragging on the overall index, guy. guy: we will come back and talk about what is happening with energy more broadly. let's focus on what is happening on the river rhine. the water level is at a key level, 40 centimeters, just below 16 inches. that's not the actual depth of the water but the depth that most barges can navigate the rhine economically. we are seeing very hot weather and it is taking its toll. now what? let's try to find out. now what? >> now what? good question. it has finally happened. we knew the water levels would drop

goldman sachs is by commodities now and worry about a recession later. the energy index is up by 2%. all the top-performing stocks are in the s&p. we are now flat on the date. we get a 14 year high. bloomberg intelligence said you can see the two year yield at 4%. he made an aggressive call earlier. pay attention to that. it's really the hawks that keep klein around. anna: they certainly are flying around for sure. the highest yield since 2007 is one of the factors moving the european markets. what we still need to factor in it, jay powell is the only hawk in town. we heard from global central bankers who don't plan on loosening any time. >> restoring price ability will remain a restrictive stance for some time. >> this is 5% like chairman powell. we prioritize price. >> inflation is likely to be high for a while. >> our mandate is price stability. >> we are in a much more comfortable position. in a couple of rate hikes. >> you're taking rapid steps. we will keep at it until we are confident the job is done. lex the fed is raising interest rates, it is f

. >> and i also own goldman sachs.hink persistent and elevated volatility is going to benefit both equity, fixed income trading and the commodities division for goldman sachs for morgan stanley and bank of america to a certain extent benefits along that as well i think as a second derivative of an improving risk asset environment you could look towards asset managers, you could look towards exchanges, you could think about a charles schwab or a t.rowe price or furtu financial. it's an environment for a company like vurtu financial where if the environment improves, you're taking advantage of a company that has a very strong buyback program and also gives a very strong dividend as well so, i like that second derivative play. >> my colleague leslie picker did a story on regional banks. i know that's what you prefer as well >> yeah, absolutely. for me as it relates to financials, i like the kre, a regional bank etf. for me the play with financials is own growth and net business income those are business lines the regional

goldman sachs was really detailed.an sachs made it clear this gasoline price forecast at the retail level was the first time it had predicted prices at the retail level, interesting they are doing that. but they updated their forecast, bill, because of continued disappointment in supply. and i think that's key. with demand instead supported by the ongoing covid reopening and gas to oil substitution, and i'll paraphrase this part, saying the only way that prices will come down is demand destruction. if we are not going to see change in policy that's more friendly to the fossil fuel environment, basically saying we have to see demand destruction on top of the economic slowdown. we have to see prices so sky high that people change their driving habits. phil, final thoughts. >> yeah, i think we saw a preview around the 4th of july, people did pull back. and a report last week, demand had dropped 7%. listen, you don't want to force people into, you know, slap them in the face and take money out of their pocket to make sure

that is a gutsy call given that goldman sachs and nomura are ripping the forecast to shreds.ou are wanting it to be long. defend yourself. alexander: absolutely. i think it is a key risk. we look at our models, monetary policy domestically and what the fed is doing. the fed has reached peak hawkish in us and monetary policy will continue to get tighter. they will raise rates most likely by 50 basis points. plus the economy of next quarter has an improving story. that is one of the things that we like to allocate. dani: i know your also aussie versus sterling. looking at yesterday's inflation data in that u.k., it is above expectations. this that change it all your sterling outlook? alexander: what is interesting is that sterling failed to benefit significantly from higher inflation. i think it is because the growth outlook is not favorable. in addition to that, negative real rates make funding the current deficit quite challenging. that type of set it -- set up usually does not bode well for currency. we think positioning has squeezed recently. the way we like to express that

goldman sachs and nomura have cut their china gdp forecast. and fed thanks weighs on china sentiment. it is -- and the fed sinks and ways on china sentiment. stocks at the moment down 0.8%. looking at volume this morning, just for good measure, lower than they were a month ago. dex features are flat and ftse 100 futures also flat. there is a lull. the idea that mark cudmore was talking about that the next catalyst is what we will hear from in jackson hole. until then, we are in a holding pattern, although markets are trying to contest the fed. ftse is just opening up. gold spot at 1761. not only the u.s. yield curve, but in the u.k.. we had a warning from denny branch water -- denny -- danny blanchflower who says that these will make this interesting. i want to show you the u.s. 10 year yield that would give us an indication of what investors will buy in the yield curve. european stocks down 0.8%. let's get over to our bloomberg mliv managing editor mark cudmore. mark, you are looking at -- this morning. mark: this chart was flagged to me at d

>> goldman sachs has spoken to bloomberg about this. of biggest use because we did see the iea raising their demented forecast while at the same time opec -- there are bullish bearish segments in the market. in terms of where we go from here, this is what goldman sachs head of energy research told us. >> the forecast for gasoline prices has been going back to five dollars. that is the level at which we need to see sustained prices to eventually solve the market deficit. >> you can see gasoline prices in the u.s. just below the four dollar level currently. what does that mean for the consumers as well. as gasoline prices retreat, that gives them leeway to spend more money on big-ticket items. that would make the u.s. retail earnings next week very closely watched. bank of america saying the core number is expected to come in at robust. >> speaking of travel, sydney airport has been named one of the world's worst for cancellations and delays. we will discuss all of that with one of the industries weakest groups. -- biggest groups. this is

goldman sachs is saying use the pullback to buy into commodities longer-term.y are saying don't worry about recession for now. they don't see any major recession outside of european nations. there is an energy conference in norway. elon musk among others said the oil needs more oil and gas right now, stating the obvious, but saying we need more supply while also pushing to get more renewable supplies on the market as well. haidi: su keenan with the energy wrap. you can find more stories to get your day going on the bloomberg. you can also customize settings so you get the news on the industries and assets that matter to you. 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

daniela costa, head of european capital goods research at goldman sachs.ending still expected to hold up and that shift to renewables. coming up, time to upgrade your iphone. apple certainly thinks so. we discussed the sales forecast next. this is bloomberg. ♪ francine: welcome back to the open. 53 minutes into european trading day. we are accelerating gains. the dax is 0.7% higher. we figure out what the u.s. inflation print means for the federal reserve hike. at 10:00 a.m. u.k. time, we will have euro area industrial production data. three :00 p.m., we have the university of michigan consumer survey. tom: certainly important in terms of jay powell and the fed decision to go to 50 basis points. at 5:00 p.m., we look at the relief of second-quarter gdp data from russia. we look at how the sanctions have impacted them since the invasion of ukraine. we also have the agricultural support from the -- agricultural crops report. let's look at the corporate space when it comes to apple. they plan to build at least 19 million of its next generation iphones next ye

the goldman sachs chief u.k. economist joins us now.ss the size of the hike in the voting pattern, we are looking at the forecast and qt, what do you think will be most interesting in all of this? steffan: i think there is three areas we will be looking at. the first is the vote space, we are calling eight unanimous vote for 50 but there is uncertainty. we have not heard from douglas members of the committee. i think it is a choice between 25 and 50 and it is possible you get one or two dissenting for 25 but more likely than not 50. the second is on forward guidance and do they keep forceful language to keep 50 on the table for september, and the qt, how much detail do we get? do we get a number for the likely sales pace going forward? francine: what do you think is the right way forward here? the complexity of the bank of england is not lost on anyone, not only because it is a small open market economy, and we are dealing with gas shortages in the winter, but we are looking at political -- steffan: there are two main factors in play. w

today we have a number of goldman sachs, warning that u.k.lation could top 22% next year, if natural gas prices remain elevated. the latest forecast for the severity of the crisis that has been unfolding in the u.k. caroline hyde spoke about the situation and how they could be using the commodities as a weapon. >> he has worked out that he can use energy, especially gas, as a way of getting back at us, the british people, germany and the rest of europe, through the use of gas supply. that is something that he is wanting to weaponize. we had to remain resilient. the ukrainian people are facing a tough time, and illegal invasion of their country, so we have to make sure that back home come in the u.k., people have the help that they need to. everybody there is an increase in is come through in energy price. by december and into next year, those bills will go further. christ we are looking at the average going up about 3.5 thousand. looking at that amount that has increased, this is still a consumer that is incredibly painful. quest there is a l

we were talking to goldman sachs about this yesterday. the process that more transitory side will be much more bumpy. are we going to -- when we get a clear picture inflation really is falling? austan: right. i don't know that we are. i don't know we will get that clear picture. it's exactly the components of headline inflation. the reason the fed does not look at headline inflation is exactly because gas prices, fuel, energy costs and food costs are all over the place. in times of great uncertainty like the ones we are in now they are even more all over the place. we will get some reading of the iran deal. is there any progress to be made there that might get some more supply in the market? are things going to deteriorate in the middle east? if they did, the price of gasoline and oil would shoot through the roof. what i look at is the core inflation. that is what the fed looks at. the month-to-month giving you the instantaneous read of what is happening. that's probably the best measure we have of the true state of inflation. even that i

let's check in with the former cfo of goldman sachs, the new ceo of hertz global.elcome back to mad money. >> hey, jim. how are you? >> i am blown away by what you are doing. i have known you long time. was hertz always a bad company and you came in and made it great? you know this thing was never anything one to invest in. what happened here? >> well, i think hertz has been a company of real talent, not particularly managed the way it should've been, but we have people in the field who have been in the field for 20 to 40 years and there is real skill in this business, just needed to be managed and thought about as a risk business and equally between buying and selling cars we have a real customer service proposition to offer to our customers and so i think the time is now for us. >> you started with the idea of the buy and sell and you basically say -- these are securities and it is an easy market without a lot of friction. can you describe that because that was a brilliant analysis of this company. >> sure. you and i talk about at this core this is a risk busines

goldman sachs has called water the petroleum of the next century.s built in india have been seen by pakistan as a threat to national security. and water has become a weapon of war and iraq. by 2025, two thirds of the world's population. conflict with water could be closer than you think. >> jordan is one of the driest countries in the world. with less water per capita than anywhere else on earth. climate change is but the already strained water supply under threat. with the count recent suffering from its worst drought in 900 years, it is only estimated to have enough water reserves for 2 million people. and it has a population of over 6 million. with faulty pipes and plumbing adding to the crisis, i'm here to visit a scheme that is putting women at the frontline of combating this issue. water is severely rationed in jordan. i meet this water expert, at a place where people come to buy more water. this is where people come when they run out of water? >> yes. >> so are they going to sell the water to people are is it for them? >> [speaking foreign la

let's take a look at what goldman sachs says.hey have a knocked out saying pboc should maintain a low profile. looking in that policy report from the pboc, a greater emphasis on near-term inflationary pressures. economists think the pboc might continue to maintain credit growth. that's a measure we are watching very closely. also more reliance on target. make sure that happens. haidi: what about u.s. inflation? not everyone is sold on the idea that this is necessarily headed towards rate cuts. annabelle: that's right. one of those people we heard from on bloomberg television was former treasury secretary larry summers. basically, he said the numbers, yes, are encouraging. but, the latest reading does not really justify any major policy shift from the fed at this point. he said that if the fed believes this is a game changer, they will be making another major mistake. here is why. take a listen. larry: we knew the headline number was going to be coming substantially down because we could see what had happened with gasoline prices.

goldman sachs sees risks it could turn into a deep contraction.cite cost-of-living prices as a major concern. prime minister hopeful liz truss is facing criticisms. germany is on track to reach its october gas shortage target a month early -- gas storage target. facilities are filling up faster than planned, despite uncertainty over russia. storage has been mandated to be 85% full by october and 95% full by november. global news 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. tom? tom: alice atkins in london, thank you. coming up, the bank of korea governor keeps the door open for another outsized interest rate hike. hear what he had to say to bloomberg at jackson hole next. this is bloomberg. ♪ >> we are not exactly targeting the exchange rate itself or the interest rate cap in itself is not our prime policy objective. but definitely the higher interest rate in the united states will have a depreciation pressure to korea, and that depreciation wil

goldman sachs cutting its china 2022 gdp forecast. it's been away on the oil price. figure out what's happening, abigail is talking about what's happening with target. target's profit badly lagging behind in the latest quarter. pretty upbeat for the rest of the year forecasting dramatic rebound for the second half talking about the fact that this is largely in the rearview mirror. joining us to discuss, senior managing director and assistant director of research. 185 price target and allows for breaking on the stock. what did you make of the numbers, the headlines look pretty disappointing. >> the headline was disappointing. we were surprised profit was as bad as it was. the company worked hard to create inventory and on the surface when you see 36% increase in inventory year-over-year it doesn't look at it made much headway. you will find the cleared a lot of discretionary items and they were clamping down on orders of the discretionary items. they are focused on getting veteran stocks in essential goods. they are seeing traffic by those essential goods. we are hope