jay powell left the door open for four rate hikes in 2022. why did the markets not lead -- see this coming given the inflation data? kristine: the trend for this year and starting from the end of last year is still about markets not fully believing that the fed will do what it is going to do. we saw this initially when we heard from jay powell in december, saying the fed could potentially deliver three rate hikes. we thought markets were slow to price that in and we did not see that until early january. then we only got around an idea of a fourth rate hike after hearing from several members alluding to that. bullard is one of them and very much a favorite of markets one -- when it comes to clues about how the fed is thinking about this. there has been a pattern about markets being slow to believe the fed, and price in what the fed is telling us. any doubts about what happened before the fed conference yesterday have gone away. we have this new reality. francine: good morning. when you look at the plan, it does not seem to be that far off with

jay powell will be telling us about how hawkish he plans to be to counter inflation.orrespondent from uber intelligence is here to give us a preview. carl, what can we expect? carl: they chair will have to acknowledge there has been mild deterioration and the economic conditions with the onset of the omicron wave. and he will have to empathize and that they will navigate around it will could be a very unhealthy looking january jobs report. today, the message is basically to signal that we have arrived at full employment. the fed things it is about 4%, obviously we reached 4% in the december report. that is the major new information since the fed last convened, inflation remaining above target. that's not particularly significant. so the boxes are all checked, we are not hiking today. but they have come to hike, signaling lift off will begin at the march meeting. the challenge of the press conference will be navigating the expectations around at the balance sheet unwind. there is a lot of uncertainty in the marketplace of active versus passive unwind, but the pace and

i want to get your general take on communication coming out of jay powell and the fed.he statement seemed standard from the fed, very balanced. conversation during the press conference seemed to rattle folks and i am not so sure it should have rattled of them. john: i think you are right on that. what was the fed trying to signal? it is time to signal rate hikes coming in march. the markets at that price tint. the fed is trying to signal, they haven't had yet discussions of details for running up the balance sheet, but that was go to come soon after they begin to raise rates. and there was nothing there to change those expectations. what did change was, i think it produced the draghi of confidence. we have been saying the fed could not have that confidence, that inflation was going to come down to the extent that they wanted. the chair said that if he had submitted an inflation forecast today, there was no sep projections today, it would have moved his forecast up by a few tenths got his words -- a few tenths, his words. with that, that would have changed a few people's

do you have confidence in jay powell? >> no.ny reservations about greenspan, bernanke, yellen, policy of pushing rates down. >> cofounder jeremy grantham speaking exclusively with bloomberg's editor-at-large. let's check in on commodities. oil the big one. really seeing brent breakthrough $90 a barrel. now hovering just below. oil trading near a 70 year high expectations of global demand picking up and stockpiles dropping. the u.s. stockpiles falling again this week. the lowest at this time of year for almost a decade. pretty much everything rallying. nickel certaiis higher than -- a little more than 2%. a part of the rally, the commodity spot index tracking 23. including energy, metals, and crop futures. fresh record as concerns over inflation continues. shery: take a look at how lg's energy is doing. paring back from earlier gains. pretty impressive, given the kospi down more than 1% at the moment. plenty more ahead. this is bloomberg. >> the kospi up, samsung after missing the fourth quarter expectations on profits. lg energy

stocks rise as jay powell seeks to keep inflation in check.tors brace for cpi as a four year high in u.s. trades. securities on the pause to an idea for investors, the idea that has been confirmed at $22 billion. when you have a view on everything, what we think on the markets is that the cpi and the fed tried to reassure the markets yesterday. tom: the forecast is the highest level since 1992. the s&p 500 breaking 30 days of losses. take a look at hs tech over in hong kong. you are looking at 5%, a pickup. stocks in china are moderating as well, giving the pboc more leverage as they wrestle with the spread of delta and omicron. gains of 0.3% across the european benchmark. the cac is also open and the u.k. is opening on the upside. should investors start to think about political risk in the u.k.? there is pressure on the prime minister over partygate. he is facing pressure to resign. let us see how this is playing out across the sectors. iron ore placing out at 2.5%. up almost 2% in basic resources, followed by energy and industrial on the lis

fed chair jay powell has ledge to raise rates as much as necessary to rein in u.s. inflation, making continued improvements in the economy and the labor market. powell on eight steed with the hat on, or were just overly helpful that he will come from swiftly behind the curve here? >> in the second day of testimony today, he said the balance sheet will be normalized or start normalizing the balance sheet by the end of the year. he didn't give my chant on the timing of when interest rates might start to go up. we have inflation data tonight, and of course chairman powell also stressed that as they do increase interest rates, they want to ensure that the pain in the rest of the economy is limited. we know several economists say you can't raise interest rates without throwing out a broader recovery. jerome powell makes the point that they want to take it steadily and slowly. if not, they have more work to do. dani: our very own into curran there. earnings coming in -- enda c urran there. earnings coming in at 4.9 billion euros, a missed due to supply chain shortages. man

jay powell will set a march hike. how big?resident biden ways sanctions against vladimir putin while russia invades ukraine. germany seeks an exemption for energy. big tech clause back the losses. microsoft shares rebound after hours as the cloud looks set to drive the growth ahead. it's fed day. what jay powell says will absolutely define q1 and q2 for the bond market. i like what valerie had to say this morning. the short end is all hocked up. how are the clients position going into this? this is what is happening at j.p. morgan. the short-sellers have been wiped out. there's been a collapse in the short positions. the equity market crash. the bond market cleansed its sole of the short-sellers and the primary sellers george. i like that word. dani: i like the word cleanse. we all need a little bit of cleansing. it's hard to tell whether this is the markets getting spooked or it is simply profit-taking. it's not just the bond market. you say bonds, i say equities. equity positioning has been flushed out after the recent sello

this is what happens when jay powell even talks about raising rates and it happens in late 2018 with that said, it is nowhere near the low readings we saw during the covid collapse. back then powell wanted to stop inflation but he over did it and this time he's being more considered we have more inflation and much closer to full employment or if not there or oversight this gives the feds a lot of wiggle room if something goes wrong. he can't turn on the dime and walk everything back after he did crush the market in 2018 in my world, i believe you can ride out the corrections like the ones we owe from my travel trust ors or the ones i talk abt we don't know when it will stop he hefting us there is no sign of matador. i want you to think of two separate bulls there is only one matador and he's in there with the conception there is an open question whether they can get out of the ring alive how can the conception stock makes it there may be a lot less federal assistance and if you think commodity can go quickly f from -- this bull will head out alive because powell will take his foot of

fed chair jay powell. dani: and later, stay tuned for interview on the deutsche bank results with the cfo at 6:30 a.m. london time. this is bloomberg. ♪ >> the notion of a 50 basis point rate hike is highly unlikely. manus: the former u.s. fed -- new york fed president there. our top story, fed chair jerome powell thinking march rates may rise. he open the door for faster and more aggressive rate hikes. the markets have had quite a dramatic reaction. bond yields are climbing, the dollar is rallying this morning. the risk off narrative continues. when you look at three standard deviation moves, the curves are flattening. how hawkish a pivot was it in your mind, the fact that he has opened pandora's box to the risk of a rate hike at every meeting this year? is that a risk too far? >> yesterday definitely opened up further risk in terms of previously expecting quarterly rate hikes in march but now there is further risk. on the one hand, with the fact that they want to normalize policy, and economy that does n

this as the inflation story unfolds today, federal reserve chairman jay powell testified in front of is morning. powell talked about how long americans will be feeling the sting of rising prices. >> right now we have very high inflation and wages at multi-decade highs which are not causing the current inflation at all but something that we're watching and we want participation to come back but it's been quite slow. maria: yes, it has. markets this morning meanwhile are higher, we are awaiting the consumer price index for the month of december, that will be out in about 90 minutes or so. dow industrials off of the highs of the northern right now, showing a gain of 24, s&p 500 up 2 and nasdaq higher by 21. all three major indices finished higher yesterday following jay powell's capitol hill testimony where he made the case for no more aggressive stimulus, that he will be running out the balance sheet and raising interest rates to control inflation. expectations call for three to four rate hikes this year. european markets are higher, take a look at the firmer tone in the eurozone where

global markets under pressure after jay powell signalled the likely central bank first rate hike of the pandemic era >>> investors getting ahead of the fed. pushing bond yields lower. >>> and musk makes history once again. tesla reporting the best fourth quarter results as vehicles surge. investors not iimpressed >>> a stocks triple dip despite the surge in demand. the names to watch ahead >>> talk about catching a stock on sale. what hedge fund billionaire bill ackman says about the market value cut 25% in the recent days it is thursday, january 27th, 2022 you are watching "worldwide exchange" here on cnbc >>> good morning i'm dominic chu in for brian sullivan today kicking off thursday morning with u.s. stock futures well off session lows here. if you look at what is happening. s&p is implied higher by six points dow joins by 15 and nasdaq by 56 check out this chart of the nasdaq 100 futures over the past 12 hours we had been indicated lower by almost around 2% at one point and look at this we rallied back in the last couple hours to see positive territory. we're now implied higher by

after listening to jay powell what do you see?think everyone kind of wall street is okay on our rate hikes. runoff on the balance sheet where people are sort of not sure? >> even with four rate hikes we'll be in a negative real yield environment and so i think you know, the market has finally taken a breath, all right, maybe this isn't going to kill equity prices but he did say very clearly you can't solve supply side problem with demandside solutions which are interest rate hikes. so i think they're going to rely more heavily on the balance sheet. still tightening but i think it will have better optics for the market. we started to see the nasdaq kind of rally back after you know, it transitioned on monday. was down a ton. came back. so i think investors are kind of looking forward now, deep breath, saying all right, where do i want to be invested as growth is slowing. charles: i hope we look back on monday as some sort of a inflection point. nancy, lately, a lot of my guests, i'm talking about the folks typically bullish there w

it is now been almost two years since jay powell pulled out the bazooka to deal with the crisis. we could be in from 2010 to 2012, where they were at rid levels even with the fed taking its foot off the gas pedal, garner thinks it could take a year or two to create the liquidity since 2020 when is when this initiated. corn, after the last 20 years, we see corn made a run from $3 to $8. partially fueled by easing we saw a similar rally last year followed by a period of consolidation. she thinks corn could be headed for round two of the rally later this year, just like how in 2012 we got round two of the post financial crisis rally some of the commodities have already run. this is a weekly chart of oil. which is up to $88 a barrel today. the rsi that we look at, the relative strengthindex, it is an important momentum indicator which suggests that the upside could be limited at this point she also sees the potential for resistance around $90. also when you look at the commodities, the futures trading commissions and the cot report, most are long here and that means we could approach

an lael brainard has worked closely with jay powell. she we would -- she will be repressing him as fed chair. they support the -- replacing him as fed chair. i think lael brainard is well prepared to do that. she will not be vice chair of supervision but another voice that is expected to call for tighter regulation of banks and saying that banks need to do more to assess climate risk when they make loans and other extended credit to investors. >> that was kathleen hays. let's get you to vonnie quinn. >> new york city's covid-19 infections may have reached a peak one month after the first case of the omicron variant was identified. the seven-day average has dipped significantly since the end of december. the cdc has raised its travel alert for canada to the highest possible, recommending against travel. the cdc urges citizens to avoid plans. novavax says it has shipped its first dose of its covid vaccine to europe. the novavax jab is already used in several countries in asia and the country expects feedback from u.s. regulators sometimes

jay powell not so much a friend to bitcoin lately.ur takeaway about how it's been acting >> listen, the big picture is for the last few years we've had both the fed and treasury providing a lot of support for all asset prices and managed to, call them a global asset bubble, and now you've got a very hawkish debt powell could not have been more direct today we've got no real hope that biden's going to show up with anymore silver bullets right? that gun is empty. now you have headwinds to asset prices we're going through a big re-rating. you see it in lots of growth equity stocks. seen it in crypto. good news if there's a silver lining, crypto already down 50% to 70% from the highs depending on the coin. a lot of the beatdown has happened and seeing bitcoin trading better down here in the 33 to 37 zone. i think it's going to about tough year for assets. right? listen, the stock market could have been a lot worse today. nasdaq finished roughly flat s&p down small with, you know, interest rates, front end down 18 basis points. there's bee

we are awaiting fomc guidance from jay powell.ill he be clearer in terms of the rate hikes scenario? march looks likely it will be baked in, but will we get more aggressive commentary or will it be a dovish tone? also looking for anything in of the balance sheets, as well. let's check in on some of the stocks on the move with dani burger. what are you looking at? >> i'm first looking at wizz air. this one has been very volatile when it comes to its action this morning. right at the open, wizz air fell more than 1% after their earnings. they projected some difficulty still going into march considering that there is some uncertainty about when people are going to be happy and comfortable getting back on flights. we are seeing value type stocks turnaround in general. might be benefiting from that travel and leisure as you pointed out. vestas wind system down 1% giving their guidance for the full year. that range missing estimates. the estimate was for 16.6 billion euros. low-end was 15 billion euros. citing the continue the supply ch

chair jay powell first saying it may begin raising interest rates in march, but just moments ago backing off, affirming that, saying "we're watching the data" let's go back to the press conference. >> it's just we have to accept that it's not over and the risks to it can slow down growth, and that be , that's sort of a down side risk from a growth standpoint. i would point to another risk is just further problems in the supply chains, which could slow down activity and you see the situation in china as the situation there where that's, their no covid policy may cause more lockdowns, is likely to and that may play into more problems in supply chains. in addition, there's what's going on in eastern europe and things like that so there's plenty of risk out there, and we can't forget that there are risk s on both sides so that's there. that's what i would say. i know you've been all over this issue with my colleagues, craig, on the issue of information. we don't have that information at the board and i asked the inspector general to do an investigation and that is out of my hands. i am playi

chairman jay powell saying this is the year the fed will move, quote, steadily away from highly accomodative monetary policy. >> i would say that the committee is of a mind to raise the federal funds rate at the march meeting, assuming that conditions are appropriate for doing so. we have our eyes on the risks, particularly around the world, but we do expect some softening in the economy from omicron. maria: investors also watching the risks and selling stocks. the dow industrials, the nasdaq, the s&p 500 extending a selloff yesterday, sparked during that fed press conference. the dow industrials right now down 89, s&p lower by 12, and nasdaq lower by 47. all three major indices finishing in the red yesterday, stocks began trading lower during the press conference, reversing big early gains at the close the dow industrials down 129, the nasdaq moved into positive territory when all was said and done, up 2 points, s&p 500 off the lows, down 6 and-a-half at the close. it's been a tough start to the new year as investors have been worried about the size and pace of the rate hikes and the tighte

it echoed what we heard from jay powell after the december meeting.t act -- echoed what we heard last week, dropping the word transitory, getting ready to start hiking rates. here is what jay powell said that resonated with so many people at the senate confirmation hearing. >> if we see inflation persisting at high levels, longer than expected, we will -- we have to raise interest rates more over time, we will. we will use our tools to get inflation back. >> he's not toying around the idea that the economy is strong enough. he says now, price stability is needed to maintain expansion. in a way, high inflation is a severe threat to the achievement of maximum employment. he is ready to start balance sheet runoff to reduce stimulus further. in fact, he did avoid citing the number of rate hikes, the timing of the first hike. that is what a fed chair would do at this time. you can't talk for everybody until you know what's on everybody's mind. president of the cleveland fed is ready to act on the rate lift off if conditions remain as they are. the atlanta

fed chair jay powell's comments yesterday largely priced in. we have both the s&p 500 and the nasdaq 100 down. interestingly, the china tech index up on the year, along with the banks. sort of an interesting pairing. the big driver for all of these indexes, the yield. les took at a year to date yield chart. the 10 year yield, we will see a massive backup of 22 basis points, so a very big move in a short time. over the last couple of days, sort of wondering down, backing off a little bit, giving a little bit of relief around inflation fears, along with valuation concerns for technology. relative to fed chair jay powell's comments, what is more important, rates were balance sheets, obviously they are integrally tied in. in yellow, that is the 10 year yield. in blue we are looking at the fed balance sheet, close to $8.8 trillion. in white, the s&p 500. you can see where the 10 year yield was going much higher last year, it really did not do anything to the s&p 500, just following the balance sheet. the balance sheet is still going higher at this t

so when it comes to stocks, jay powell, which side is correct, the bulls or the bears neither. if you're buying companies to make a profit and return it to shareholders, i think you'll do just fine. if you make no money and grow fast, you won't do fine because powell is not on that team any more the stocks of big companies went down but unlike the spacs and ipos of the past year, i think they'll be able to bounce back a high you may ask on companies do badly already isn't powell going to have to destroy economy and sell everything and that is why we have the same sell orders pushed us monday and tuesday and the moment he ripped about rate hikes. >> want you to consider the following. right now the major companies that have reported, we've seen a huge number of upside surprises. doesn't mean their stocks could soar when there are high explosives but it will matter when the selling stops. since earnings season began we've had beat and raise quarters from johnson & johnson, proctor and gamble, microsoft, verizon, travelers raytheon, 3m and wells fargo. netflix, all right and ge, a

jay powell walking a tightrope not making anyone happening. a year ago the retail revolution was taking the investing world by storm turning the establishment on its head. today investors are most bearish in a decade. i will ask three influential social media investors if the thrill is gone. i'm here to tell you the magic is not over. a lesson from patrick mahomes during the most exciting football game ever. how to stay calm in turbulent markets. all that and more on "making money." ♪. charles: so after an epic overnight trading session, a lot of early morning indecision, the market, well, it heard everything, thought it did at least. it didn't hear from the fed, took off, right? we had a couple economic data pieces out also this morning. and we started the day off pretty aggressively. i came away from yesterday's meeting thinking we would have 25 basis point rate hikes. maybe four or less. i bottom it tell you, a lot of folks out there see liftoff beginning at 50 basis points. now consensus has climbed to five rate hikes. you know, but that w

listen to what jay powell had to say.hair powell: we and all other forecasters forecast that we would be seeing lower inflation. the economy no longer needs or wants the highly accommodative policies we have had in place to deal with the pandemic and aftermath. we will be normalizing policy. we will end our asset purchases in march. if we have to raise interest rates more over time, we will. at some point later this year, we will allow the balance sheet to run off. it is time to begin to move away from those emergency pandemic settings to a more normal level. it's a long road to normal from where we are. matt: let's bring in megan greene, harvard kennedy school fellow. it's been a long time since we heard the fed talk about tightening financial conditions with three tools. they will taper the monetary accommodation they have got, the bond buying program, raise rates if needed, and they will let the balance sheet roll off, reduce their balance sheet. it is all this going to be able to happen with a simultaneously growing e

and people on the other side of jay powell the journal. a lot of people say, oh, my gosh he was hawkish other people say really? we'll see. it is nice you are saying you will do these things you are not -- you could have ended asset purchase you could have left 50 basis points on the table for march. you didn't they got the excuse ready. it is the wealth effect. we don't care about the rich people we care about the employment picture. >> the trickle down wealth effect >> we are not coddling the haves. we are worried about the have-nots. they have the cover ready to go. i know liesman will cover it >> let's talk to steve he has 18 hours or less than that 12 hours to add more perspective to all of this and get his take on the fed's decision. the big changes in the outlook for the rate likes this morning. steve is standing by up early mr. liesman, what do you think of what joe had to say and what mr. powell had to say, more importantly? >> can i say what i think and what anybody thinks for a second here i want to show you what markets think w

liz: jay powell, did you hear that today? he outed the ports in the united states. more than once before that senate committee today, he mentioned that a record number of ships are still idling off the shores. problems do persist as the secretary of transportation, pete buttigieg, visits the port of la this afternoon. we're going to take you straight there for pete buttigieg's visit when countdown comes right back. closing bell ringing in 37 minutes, the dow up 193. ten year yield is really continuing to fall, 1.74%. stay tuned. your record label is taking off. but so is your sound engineer. you need to hire. i need indeed. indeed you do. indeed instant match instantly delivers quality candidates matching your job description. visit indeed.com/hire throughout history mi've observed markets shaped. by the intentional and unforeseeable. for investors who can navigate this landscape, leveraging gold, a strategic and sustainable asset... the path is gilded with the potential for rich returns. whether you've enjoyed the legendary terrain in telluride, the unparalleled la

the fed chair now that there's this new fed regime that the fed has spoken and spoken loudly and jay powelll be tested in the weeks ahead. our senior economics reporter steve liesman is joining us now. that's really what it comes down to, whether powell can pull this off and it ain't going to be easy and i'm curious as to what you think based on your reporting and those who you talk to as to whether you think that they can be successful in this >> you know, let me first before i answer this question i listened to the show the entire week and learned a lot, obviously, there are some bullish members of your commit, scott, rotating in and out, and i started to think about, well is there a bullish scenario here for the economy and the fed? and honestly i went to go look for it, and i re-read powell's transcript from the press conference the other day, and he does have -- there is a bullish scenario there say soft landing scenario here, and let me walk you through how that would happen. in the first instance, there is no scenario that i can imagine where the fed doesn't tighten. the fed almost c

did he's not an idiot, jay powell's not an idiot a lot of people come our shows and they just presumeever jay does is wrong but incredible employment, a good stock market. an amazing moment in our country a year ago when every other country was collapsing josh, i salute you for just saying it's like, if he's a coach, he knowsif that play failed, he doesn't come in and say, you know what, we got to try that play again. right, josh? he really is a common sense guy. and so are you >> people forget that jay powell's first month on the fed was during the taper tantrum i think may or june or july of 2013, he has seen the power of the fed's remarks firsthand both negatively and positively. and he knows that him speaking is a tool as powerful as actually raising or cutting rates or tapering or not tapering so, i think you're right, jimmy, and i think we could expect to see more of that going forward and it's become important what the fed says at these conferences. >> hey, jimmy, before i let you go -- hold on, i want to get a quick thought from jim we started the show with you really in sugge

you have any confidence in jay powell? >> nope you -- no. he has not expressed any reservations about green spinning, bernanke, janet yellen policy about pushing rates down. rishaad: speaking exclusively with erik schatzker. looking at the nikkei 225, the benchmark in tokyo extending its drop to over 3%. that is where it is. we have premarket trading going on in india. seeing the nifty index following the regional pattern. it is down 1.2%. here is a look at some of the nikkei constituents. 2.6% down. we have the likes of softbank and various others on the topics heading to the downside. softbank 9% lower. missoni, 6.8%. there we go. that is a look at deep declines. broad-based declines in japan. haslinda: korea down more than 2%. we will hear from a ceo on the growth plan for ages biggest producer with commodities surging. keep it here with us. this is bloomberg. sophie: -- this is bloomberg. ♪ rishaad: heading toward the opening of the trading. looking at steep declines. the nifty index, one in quarter of 1% lower. looking at nifty banks fe

we are waiting and watching to hear from jay powell and the rest of his team later on.ight now, the 10 year yield right around 1.78%. you were talking about the gains for brent we are seeing today. that is true for wti, up about 2.25%, trading on an $87 handle, the highest going all the way back to 2014. guy: let's talk about what we are seeing in the markets and whether or not what we will see will end up influencing what happens with central banks. we have already seen the bank of canada decided not to raise rates today, so here is our question of the day. is the speed of the stock market selloff, which i appreciate we are not seeing today, going to be a problem for the fed? joining us is steven englander, global head of g10 fx research at standard chartered. let's talk about what the fed is going to factor in in terms of its decision-making process. do you think the gyrations we are seeing in risk assets will see any role in that thinking process? steven: no, short answer. what is going to play a role be gyrations that would occur up to the march meeting, when the fi

jay powell and his inflation track record in the hot seat once again as the senate reconsiders his renomination bill pool is here to weigh in. >>> at the fed, another one biting the dust as the central bank's number two resigning amid some suspect stock trades. why are members of congress still allowed to trade stocks? >>> apple looking to beef up its content offering, reportedly going after professional sports to do just that. >>> all it the ape-iversary. a look at how small time investors flipped the script on big-time investing it's tuesday, january 11th, and this is "worldwide exchange. good morning, good afternoon, good evening and welcome from wherever in the world you may be watching i'm brian sullivan, good to be back with you. before we jump into the markets and big business headlines give a shout out to the dogs the georgia bulldogs getting the monkey off their back, beating alabama 33-18 to win the university's first national football title since 1980. bulldog quarterback, stetson bennett throwing for 224 yards and two tds and the win. we'll give you more highlights from the game com

tom: you have the likes of jay powell coming out to say that he will not allow inflation to become entrenched here as a result of the supply chain and repriced by the markets. talking of them markets, in terms of the nasdaq, you did see a drop by almost 3% by the end of the session. part of that was that by bit with what francine was pointing to. the european is up at least for the first few seconds of the open. they are making up the gains in the first open. the ftse 100 up by 5%. we have the spanish ibex ending 0.2%. let us have a look at what is going on in some of these asset classes futures. u.s. futures gain for points. the u.s. 10 year yields gained a little bit did we did get up to 180 briefly yesterday. i highlighted this, gaining 1.6 percent around some reduction in brazil. bitcoin just coming back a little bit, gaining about 1.3%. francine: let us also get deeper into some of these sectors. i love my terminal because if you look at some of the move from the terminal, you see the fed moving more aggressively from this tightening cycle. that will move a lot of sectors that we are wat

jay powell says, the economy can withstand those rate rises. powell says he will do all he can to manage inflation in the u.s.. take a look at where we are. this trade trending higher. it's a sea of green. up by more than 1%. tech in play. chinese tech in particular is in focus because we have the nasdaq surging overnight. china will do what it can to help a slowing economy. expectations are that demand will be intact with economies staying pretty saw -- strong. rishaad: not just inflation. looking also at these numbers which came out a half-hour ago out of china. producer price numbers, factory gate numbers. 10.3% in december. looking at the consumer price index, 1.3%. that was way lower than what we saw. 10.3 percent as opposed to the 11 plus percent we expected on ppi. cpi is much weaker as well, more muted. largely down to a decline in food prices, especially pork which is a staple in china. pork prices falling 37%. that helped to bring down that debt. there we go. we are looking forward to inflation numbers out of the u.s. as well with a bi

it is jay powell seeing the nasdaq dropping 19%. can't stand it, does not want to lose the wealth effect. we have 7% inflation. he is still printing money and still keeping rates at 0%. we still have the easiest monetary policy in history and he now is going to be praying that inflation doesn't get really out of hand because the markets love easy money but if inflation gets out of hand the markets are going to come down. so he is in prayer mode right now. monday we got the good reversal. here is some good follow-through and markets will not be unhappy about this simple as that. charles: you know, phil, we have the new home sales this morning. it was a huge beat, really strong number. we heard cheryl saying mortgage-backed securities would eventually be off the balance sheet. some people wonder why they buy them this long anyway into the massive housing boom. feels like they're making adjustment where they can. to gary's point, tinkering too much to the wealth effect, have they dug themselves too deep into the hole now? >> i don't ag

it was during this hour yesterday fed chair jay powell strug a very ambiguous tone as he spoke to the media about a march rate hike. a backdrop of quote, remarkable economic and job market strength, by the way underscored this morning by a but he also admitted that inflation is now worse than it was in december. now, i say in part causing the jitters of this market because intel is just ruining any hope of the nasdaq reaching its full potential, at least today. shares down 6.5%, not even at the lows of the session after the chipmaker posted record forty quarter revenue -- fourth quarter revenue but that a major spend that they're doing to build new factories in ohio. intel's ceo echoed pretty much what jay powell said, supply chain problems will last this year and possibly into next. and you know this is a very jilt terry market if tesla is down in the wake of a stellar earnings report with a beat on just with about every metric. we are very close to session lows, down $93 or nearly 10%. ceo elon musk did end up joining the conference call and did say his fop purity is delivering more

jay powell said that his contributions will make a lasting impact.'s covid-19 infections may have reached a peak about one month after the first case of the omicron variant. data shows a seven-day average of emergency department visits has dipped since the end of december. meanwhile, the cdc has raised its traveler to canada to the highest possible, recommending against travel. the cdc also urges to avoid france, spain and sweden. japan is extending border measures three end of february barring foreigners from entering. the prime minister confirmed the extension after earlier saying he remains cautious. japanese case numbers have climbed more than 10 fold since the start of the new year, increasing concerns that a bigger wave is underway. djokovic can stay in australia. this is after a court reinstated his visa and ordered his immediate release from hotel detention. a judge said the world number one to not have enough time to respond. djokovic tweeted he remains focused on competing in front of the amazlbe. global news 24 hours a day, on air and on b

and jay powell sets to face the senate tomorrow.rmation hearing could shed light on future regulatory plans amid the hawkish fomc minutes. talking a big game, take two's had to be buying zynga in a deal valued to be at $11 billion. why this has take-two's shares plummeting. jon: we will keep that deal focus in check. when it comes to the broader markets, we see a continuing selling session on wall street and toronto, pressure when we think about the weakness on technology stocks. the s&p 500 has come off of its weakest levels of the day but we are still down for a fifth day. for the year, down 3%. we will talk more about the interest rate environment and how that is creating a reassessment of sorts in the stock market. also, the market getting a fresh assessment from what is happening with novavax. let's turn to the latest on covid-19. that company announcing it has started shipping the first doses of its covid-19 vaccine to europe, making the drug companies entry into that market. president and ceo stan erck joins us now to talk ab

but this market is gripped that jay powell wants the market to slow down to break the inflationary spiral and it will hurt a lot of our businesses so why don't you just sell here. buy them back after powell speak, maybe the next day, maybe the end of wednesday well, that's what many managers did today the warning. they dumped, they dumped, they dumped, they capitulated hoping to be able to buy back wednesday. at the time it seemed like a rational push. but when is the stock market rational a tremendous amount of fear that could only be handled by those with ice water in their veins, regular patrick what homes types, or those with a plan. the andy reid types who diagram ahead know what they need to do and know they need to buy when stocks hit the right levels tonight way down that's a form of discipline. it's a discipline for me it's worked in practically every downturn, except for the great recession. it certainly worked well today are we really looking at a second great recession here? i don't think jay powell destroyed the economy in order the save it. i want to give him some credit her

. >> the fed chairman jay powell in the hot seat, making his case for a second term while explaining to control rising prices on almost everything >>> and olympic speed skater qualifying for the games in three events, but deciding to give up one of her spots why she did it and who is taking her place. >>> and an escalating scandal at ten downing street new allegations that the british prime minister, boris johnson, was breaking his own covid rules. the byob get-together that has party leaders calling for his oust as we approach the bottom of the hour and the top of the news from cnbc. [music: "i swear"] jaycee tried gain flings for the first time the other day... and forgot where she was. you can always spot a first time gain flings user. ♪ why choose proven quality sleep from sleep number? because every great play starts the night before. my sleep number 360 smart bed tracks my circadian rhythm, average heart rate, and breathing rate so i know how well i'm sleeping. it's also temperature balancing so i stay cool. and it senses my movement and automatically adjusts to help keep me co

for about a year and maybe longer, we have heard from jay powell, who repeatedly talked about the idea of it more equal economic recovery, letting the economy run a little hot to avoid some of the mistakes may be made with monetary policy coming out of previous recessions here. but of course, when we heard those comments, inflation was not 7%. i guess the question is how long can the fed stand by some of powell's previous comments with these inflationary pressures? steve: i think the fed will make the case that they are still committed to an inclusive economy and they have changed the way they are doing things. with their flexible average inflation, the idea of letting the economy run hot. i think they will claim, even as they are poised to raise interest rates and march, they will claim that is consistent with an inclusive economy. the reason for that is if you look back to where they are now, you've got the unemployed it rate at 3.9%, the fed's view is 4% on employment is consistent with full employment. that is their estimate in the summary of economic projections. and inflation obv

consumer prices surging to a 40 year hires federal reserve chairman jay powell warns of the impact of this high inflation. dan niles is here on how to put your money to work. where is the money, $2 million in covid testing money has been used to house illegal migrants at the southern border? congressman mike gallagher is joining us coming up. i am speaking with jpmorgan chairman and ceo jamie dimon this weekend, his response to the labor shortage, the irs spying on your bank account. you will hear his answer as well to this. you said you thought jpmorgan would outlive the chinese communist party but you walked it back. who told you jamie dimon, chairman and ceo of one of the largest banks to walk that back, that is coming up but take a look at the top newsmakers on "mornings with maria". you were the first to file against controversial healthcare worker vaccine mandate. >> there is no statutory authority for osha which was charged, showered next to -- when you're working with chemicals to force a medical procedure on tens of millions of americans. maria: how important is it to get som

two-year about 88 bases points or .88% this is all ahead of two key congressional testimonies with jay powell brainard. a rough week for precious metals as well, gold and silver the worst week since december. gold down about .2 and silver down about .3% cryptocurrency side, you can see a little bit of movement in bitcoin, still down about 1% ether down about 1.75% >>> the overnight action in asia with japan closed if for a holiday, you can kind of see, generally speaking, on the green side of things the shanghai composite overall, about .5% gains there. so keep an eye on the asian markets and then we'll spin that globe around to the early trade on the european side of things like us here in the u.s., flat to slightly lower at this stage here you can see the german dax off about .25% northern ireland fat see 100 down, and the cac down about .25% as well >>> the current covid wave driven by the omicron variant has likely peaked in parts of the u.s. this is according to dr. scott gottlieb who said quote some east coast cities are probably peaking right now. he added other parts of the country wh

forty or heist federal reserve chairman jay powell warns of the impact of the high inflation.iles is here on where to put your money to work right now. plus aware is the money? more than $2 billion encoded testing money has been used to house illegal migrants under southern border. congressman mike gallagher is demanding answers in the white house. he will join us coming up. and i am speaking one on mount j.p. morgan chairman and ceo jamie dimon this weekend. his response to the labor shortage. the irs spying on your bank accounts per you'll hear hear his answer as well to this. >> you said you thought j.p. morgan would outlive the chinese communist party. but then you walked it back. who told you, jamie dimon the chairman and ceo of one of the largest banks to walk that back? >> that is coming up first take a look back at some the top newsmakers on mornings with maria in this edition of the week stalkers. maria: you were the first to file against this controversy don't mandate. >> there's no constitution is no statutory authority for osha for example which was charged with ma

that is what jay powell was saying earlier this week.n: what tells us where the neutral rate is? is it the market or is it the economy? torsten: this is little bit of a tangent here question, but if you think at how it is calculated, the models that calculate do not have the stock market. when the fed talks about financial conditions, they would like to tighten financial conditions, there slowing down growth in the economy and slowing down corporate earnings. the way we calculate what the rate would be does not include those parts of the real world. the answer to your question is the best guidance from the terminal rate, which is 2.5% of the fed funds rate. that is a good guess at the moment. if inflation does take off to the upside, we could deal with a high number. jonathan: the word calculation implies a scientific effort and the word gas is closer to the truth -- the word guess is closer to the truth. remember the line from chariman powell and 2018, i think we are a long way from neutral. i think we are there. lisa: maybe not. jonath

terry haines of pangaea says it is not a done deal jay powell gets the approval. some doubts. the outgoing buddhist bank president is formulate handing the reins over. do we get a different type of bank in the middle of this covid environment, then you get the world bank global economic prospects report. the world economic forum global risk report, china cpi and ppi thursday. all of this is a precursor to wednesday. how high will we have to see? what are we looking at, does that change the calculus of the fed rate hike scenario? guy: you put those two things together, the jay powell confirmation hearing in the cpi number, it will be a fascinating 48 hours. as we were just hearing from chris, what we were seeing today is the price action baking and that 7% number. is it going to be better to travel that arrived? i know will be looking at this long way around. you get that number and you get a sigh of relief it is not higher -- in no way will have a visibility on that number. alix: he does not. i will confirm that. guy: -- you have the nasdaq nearing the 200 day mov

today, fed chair jay powell is center stage for the senate confirmation hearings.ow much does he reiterated inflation as the leading issue? how much does he said they want to see a market disruption in order to transmit their policy? he talked about using tools to support the economy in a strong labor market and to prevent higher inflation from becoming entrenched. how much does it speak to the wage spiral, the wage price spiral we heard about? the treasury department will sell three-year notes at a time when yields are at the highest level going back to february 2020. how much does the international buyer come into play throughout the globe? if they do not come in in a more meaningful way, do people rejigger their sense of how negative real yields can remain for the foreseeable future? jonathan: looking forward to the conversation with the cleveland fed president. michael mckee joining me to help lead that conversation. the interplay between the balance sheet and rate hikes is something we sent i have been talking about through the year so far. tom: it is importan

the main event today, jay powell takes the stage at 10:00 a.m. for the senate confirmation hearings. i want to see how much of an emphasis he places on curtailing inflation, the reaction function. in other words, how much work does the market have to do for a selloff of volatility to affect a tightening in financial conditions. one of the prepared statements, we will use our tools to prevent higher inflation from becoming entrenched, very much front and center. i want to clock p.m., the u.s. treasury department will sell $52 billion of notes, coming as the three year yield rises to the highest going back to february 2020. how much does the uncertainty and entrenched feeling of rate hikes three, possibly for this year, lead to a lack of demand as we head into a more volatile 2022? jon: thank you very much. number one, we need to talk about this federal reserve, number two, another locked down in a tiny city and extra restrictions in hong kong. we have got to start with markets. we do that with the co-cio of cavalli funds. reading through your nose

global markets under pressure after jay powell signalled the likely central bank first rate hike of thea >>> investors getting ahead of the fed. pushing bond yields lower. >>> and musk makes history once again. tesla reporting the best fourth quarter results as vehicle