i think we will ask jonathan miller. this is bloomberg. ♪ ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. it is one of the biggest technology deals of all time. broadcom agreed to buy vmware for about 61 billion dollars. the transition represents about a 41% premium to vmware's valuation before may 20. that was the last trading day for bloomberg reported a potential takeover talk. the u.k. will impose a so-called windfall tax on the profits of oil and gas. the money will be used to help fund at least $6.3 billion support for that's facing a cost-of-living crisis. the chancellor of the exchequer rishi sunak said the 25% tax would be temporary. senior ministers in the british government have not opposed a special levity -- a special levy on energy firms because a veritable heard investment. the chinese premier warned of dire consequences if they don't prevent the economy from getting worse. he told thousands of local officials a contraction in the second quarter must b

. >> from new york city for our viewers worldwide, we are in for jonathan ferro. i am matt millery group to. -- kriti gupta. >> this is bloomberg the open with jonathan ferro.

jonathan: really interesting to be your thoughts. leland millerina beige book international. an important topic being discussed a whole lot more behind closed doors lisa: and actions actually being taken. ceos do not want to say anything with respect to withdrawal from china because they wil get blowback, but what they are doing on the ground had incredible implications not only for gdp, but frankly for inflation at a time when it is inflationary to rebuild elsewhere. jonathan: futures down about three points in percent -- down about 0.3%. yields higher by 13 basis points on the tenure to 2.86 18%. just a few words from governor waller was all it took yesterday to suggest that he sees a lot more rate hikes in the future to get inflation down towards 2%. tom: some legit dollar strength as well. the euro was at one dollar seven -- was at 107. you really wonder some of the tensions beneath the headlines. jonathan: looking forward to catching up with savita subramanian of bank of america a little later this morning. we will catch up with her in about

jonathan: i want to come to you on this so-called fed put and whether the fed is truly data-dependent. rob millerkrock said they don't have the luxury of being data-dependent. when you think they can become data dependent again? kathleen: it is a good question. i think the our data dependent, but part of the data they are looking at our broad financial conditions, so that is going to include equity prices, the dollar, so how they see financial conditions evolving is going to help them calibrate where they think the fed funds rate is going to be, but i think right now, front and center for them is taming inflation, and that is what we're going to here for now. as we progress through 2022 and if things slow a little, they may pull back a bit on that really hawkish rhetoric. lisa: what would be a restrictive fed policy rate? kathleen: in our view, anything above 2% would get you to restrictive. the federal reserve thinks it is 2.4%, so there's a little pension there. markets probably a little closer to our view, but it is an unknown. it is an estimate that is very difficult to pin down precisely, bu