haidi: kathleen hays.ext guest says he is the recent -- feels like a turning point. what is your strategy given we have so many conflicting messages? guest: it's always a challenging time for investors. for us, the clear sign of what the fed -- [indiscernible] the immediate danger is across markets. the fed is engaged in raising rates, tightening policy, that's continue to put pressure on the yield curve. generally speaking, yields are heading higher. haidi: regionally, where are you seeing opportunities? rate deal of uncertainty in terms of how the body of emerging markets reacts as we get the fed tightening the balance sheet, shrinkage, maybe 75 basis points on the table. guest: this cycle is more complex because inflation is so high because normally when you get a fed tightening cycle, the relief valve is emerging markets . that is a more dangerous policy because that has inflation consequences. you're going to have to react to the fed tightening more than they would have previously. they can't rely on

let's get to our bloomberg's global economics and policy editor, kathleen hays. en: how much it will do to get inflation under control. we will see a change at this meeting. in terms of what they are going to signal or message, it is going to be, "we will do whatever," it takes to get it done," especially after the cpi. 8.6% year-over-year. highest since 1981. it is because prices were supposed to start coming down -- food, as, shelter, used-car prices. they kept raising in may. this is hitting consumer sentiment very hard. the university of michigan consumer sentiment survey showed that sentiment among consumers. the lowest since the 1970's. inflation expected over five years is the highest since 2008 so no wonder that economists say, there is no doubt that you get a 50 basis point hike this week. markets are expecting another one in september. the question is, what will they say about 75 basis points hike? >> a former economist says they will not start doing anything about it now. will start looking at it. and jay powell will surely get questions about that afte

let's go to our policy editor kathleen hays. there's a lot of forces pressuring kuroda at the moment as well as other central banks. every economy has its different foibles. he is resisting it against inflation. which is different to other countries. >> it's interesting. it is so different. because of food and energy prices, inflation is getting to the 2% target. to us, those of us in countries where you have 8% inflation, like the u.k. going up to 11% this year, 2% seems like a dream. this is one thing that is hitting kuroda hard. because his popularity in a recent poll fell pretty sharply. his unpopularity rose. he had to go to parliament twice for saying the japanese were more tolerant of the increasing prices. he had to apologize for that. you put it altogether, the weaker the yen gets, the more inflation rises, the more import cost rises to the japanese. that is one part of it. the other part, is the big diversions, getting even bigger. certainly with the federal reserve and other central banks hiking. they do not seem read

let's get more insight, we will bring in kathleen hays. is this a more aggressive fed, a more realistic fed? the market almost interprets it as a more dovish fed. kathleen: if it is dovish because they said we could do 50 at the next meeting and he said, don't expect to 75 to become common, if i were one of them, i might question that. i guess they could have been more hawkish. the median dot is up to 3.4% for this year, 3.8% in 2023. at the beginning of the year, the dots were forecasting 1.9%, even though the markets got more aggressive. in terms of what this means and what the fed is hoping it will do is slow down inflation and not cause a recession. maybe people are believing that jay powell wants to make sure he can achieve a soft landing, he will, although jay powell said inflation was transitory and some investors said that it not directly there. interesting what he expects for figuring out the size of the hike, what they are hoping to do. let's listen to more of what he said after the meeting. >> 75 basis points today. the next meet

you see the may join the 50 basis point hike club let's get more from our global policy editor, kathleen hays. kathleen: i think they won this battle in the war to push the you see the towards a more hawkish position. but let's look at a couple of things. the dutch central-bank chief, you see the board member, three weeks ago he started arguing about, we can't be so soft. inflation is that 8.1%. the austrians central-bank chief and the latvian chief getting on board. so the you see the said the rate hike will be appropriate in september if high inflation persists. . but they will not bring their rate out of negative until positive territory, until the end of the third quarter. they will not start hiking rates until their july meeting. the september rate hike of 50 basis is not guaranteed. so yes, the hogs have pushed. have they want -- the hawks have pushed. have they won? it remains to be seen. deteriorated output, outside risks to growth from the war in ukraine and then there is the question of pushing peripheral bond yields up. it creates instability financially in the e.u. that is somethi

shery: mark rant--filled and kathleen hays -- mark cranfield and kathleen hays, thank you. vonnie: sources say that organ so that her ron wyden may propose a surtax of 42% -- sources say that organ senator ron wyden may propose an oil profit tax. president biden will seek to amend ties with saudi arabia during a trip there next month, a reversal of his pledge to make the kingdom a pariah over its civil rights record. the visit will cap four days of travel in the region which also includes israel and the west bank. he will meet there easily prime minister, and palestinian president mahmoud abbas. truckers in south korea have reached agreement with the government, ending a weeklong strike. they will resume their duties after agreeing to extend a freight rate system that guarantees minimum wage. the transport ministry will also provide subsidies to alleviate surging fuel costs. hong kong has marginally tightened its virus restrictions amid a rise in cases. residents will have to show a negative covid test result within 24 hours of entering bars and nightclubs. more than 300 ca

are they going to keep going, global economics and the global policy and economics editor kathleen haysmliv strategists joins us. kathleen, first of all, what kind of message is the fed vice chair trying to send, and is it different from the overall narrative she has actually had before, or indeed the narrative from the fed overall? kathleen: it's interesting you star the question that way because he has been known as a dove, slow to be ready to raise rates, raise rates aggressively, but now she's clearly onboard, even if she's been somewhat cautious. let's make that the word. she could see inflation is high, it's too high and it has to come down. and that is the message. i think another message, when you listen to what loretta said. they said, ok, if we see the readings on inflation showing compelling evidence, at pace of rate increases could slow, and then we might have to move fast. compelling evidence they are not going to move on a forecast, they have to see inflation really coming down. look at the start. you can see when you look at the fed's main measure, which is the pce inflat

on the ecb, let's bring in kathleen hays are global economic and policy editor. kathleen, this is the most exciting ecb meeting in years. kathleen: it certainly is. i'm so glad you said that because for the longest time it has been are we going to adjust the purchases just a little bit? there were no rate hikes insight. yes it is very exciting as you pointed out, it is going to be the first time we've hiked rates since 2011. now, traders are ready for a quote unquote decisive moment, a pivotal moment, where christine lagarde certainly puts on a hawkish hat. now they may be expecting a little too much because christine lagarde has maintained a rather dove is consensus stance, which is we are going to announce the end of bond purchases in this month. we are to make that official and we are going to signal the 25 basis point hike in july. and then open the door to more 25 basis point hike. but it is surprising, you can see from these various indications that yes, there is a rate hike of some kind expected, but probably a smaller one in the july meeting. over the next

haidi: kathleen hays there. we will be watching with much anticipation and it comes to the ecb meeting. oil retaining gains after data shift dropped. gasoline stockpiles as well. u.s. natural gas prices tumbling after a fire broke out in texas. let's get more with julia penn's era. holding above the $122 a barrel level. what is the new outlook? >> it is crazy how much we have rallied recently. if we continue to rally past $123, $124 a barrel, we are going to go to 2008 highs. short-term we are going to see a tight market especially for the summer season where everyone is driving in the northern hemisphere. and the fact that there is a russian oil ban, there are not enough refined products in the market right now so it is tight supply. obviously we know opec is increased their output for the month of july and august but they have not been meeting quotas in the previous month so there is nothing to say they will meet them this month. short-term outlook is it will be tight and painful for consumers. shery: that cou

garfield reynolds and kathleen hays. that's get the first word headlines. vonnie: bank of japan governor says a recent abrupt weakening of the yen is bad for the economy. kuroda pledged to work with the government after the yen hit the lowest level since 1988. the depreciation is fueling concerns among households and businesses. ahead of the boj meeting this week, a new poll suggests a majority of the public does not think he should be at the helm of the central bank. the survey found 59% of respondents found him to be unfit for job of governor. the yen's weakness is largely a result of the position of keeping interest rates at rock-bottom levels. day two of hearings into the january 6 attack on the u.s. capitol focused on what then president the riots. william barr and jared kushner said in videotaped testimony that they advised the president against selection claims. donald trump pressed on and raised money. a democratic representative called it a big ripoff. it was national security advisor jake sullivan and china's top diplomat have held talks as tensio

that's get over to kathleen hays. so, they are saying that a soft landing is possible, the question is, do they believe it themselves? kathleen: they absolutely do, they know there's a risk for recession and it's too early to say how much they will have to raise interest rates. i think traders act as though the fed is saying they have a plan. the fed is saying we have to watch the numbers, get inflation down and raise rates. they are very hopeful they can pull the soft landing off. mary daly asked in a linkedin event a question about how you can avoid a recession if you're going to be so aggressive. she says, i think tapping on the brakes so slow to a more sustainable pace rather than slamming on the brakes, going over the handlebars and having the proverbial recession, it's an excellent metaphor. here's what it means for the economy. >> i wouldn't be surprised, actually a my forecast the growth will slip below 2%. but it won't actually pivot down into negative territory. kathleen: now we see john williams, president o

for more, let's bring in kathleen hays. you square but we have been hearing from central banks seems to be a race to the top right now. with what we are hearing from the world bank about the dark clouds that are forming, how do you square those two ideas right now? kathleen: one of the big risks they see contributing to an even slower global economy and the possibility of recession, is central banks themselves. the fact that they are hiking rates, some aggressively, to start raining in impression -- inflation. but the danger of inflation, i never thought of stagflation being dangerous. but prices are rising. certainly when it is food and energy prices, it is a big hit to consumers and businesses. 4.1 in january, 3.2, now to 2..0 and of course for the world bank, one of the things that focus on closely is the emerging-market, the developing nation economies. the heavily indebted emerging markets, and we have come out of the pandemic but there are big burdens on a lot of these countries because they had to spend a lot of mone

haidi: our global economics and policy editor kathleen hays with all the latest moves. china's regulator denied a bloomberg news report that it is in early-stage discussions on reviving the ipo of jack ma's ant group. let's get more with our chief north asia correspondent stephen engle. i have to say, it would have been a complete game changer. stephen: absolutely. in the premarket, alibaba shares in the u.s. were up 7% when the news broke, before that csrc came out with their statement. it shows that this continued pushback into chinese tech was looking for some concrete needs. people latched on to this new. but when that csrc came out with their statement last night, it essentially said it denied it is conducting work on reviving this ipo, but it did say it supports eligible companies going public, reiterating what the top leadership have been talking about, the platform economy. that is why we have seen today's falloff in alibaba and other tech shares. and we got the news this week that perhaps the probe on didi global was about to and. . these are the two high-profi

mark cranfield and kathleen hays join us now. global stocks in a bear market. there seems to be no bottom in terms of the sentiment five. look at what australian bonds are doing this morning and how futures are indicated what the open will look like. >> we are into liquidation phase across asset classes. when you look at what happened yesterday around the world, there were equities, bonds, currencies -- everything was being dumped. a clear sign that people are trying to preserve capital. they are trying to save whatever p&l they can. the sentiment is dire wherever you look. underlying everything is u.s. treasury market. we had an enormous jump, could be the biggest today move we have seen in the treasury market since the 1980's. that is a significant change in the input people have to do when they are calculating other asset classes. for a long time, risk free rates were close to zero. people did not need to think about interest rates as a component as to -- as a component of whether they should buy something. that is a higher yield than you have on most divide

our global economics and policy header kathleen hays is here with the latest. d what message is vice chair trying to send? kathleen: we want to listen extra closely. just nominated or confirmed in that job last week, the point that the sheet is making, we are watching inflation. we are not watching our forecast of inflation, we are watching what it actually does. this idea that it would be a september pause, well, probably not. let's listen to what she said earlier in an interview on cnbc, after she endorsed the idea very clearly of that this basis point rate hikes and continuing sticking to the course when it comes to bringing inflation down. >> right now it is hard to see the case or a pause. we still got a lot of work to do to get inflation down to our 2% target. kathleen: cleveland fed bank president speaking later in the day, amplified remarks that brainard had made in her remarks about the two sides of the coin. inflation starts to slow down or inflation that does not and keeps moving higher and what it means for policy. here is what she said. >> if by sep

kathleen hays is here. they also talked about the potential for a global food crisis on the back of stagflation warnings from the world bank as well. what is the picture here? kathleen: the picture is dark. the picture is that the war in ukraine threw a whole other element of weight on the economy, of supply chains not working, just one the world was pulling out of the pandemic. higher prices means higher inflation and big costs and slowdowns to consumers, businesses, and economies. they don't see a recession at the oecd. the global inflation forecast doubled though to 8%. australia's inflation is well above 5%. look at germany, can you imagine germans tolerating 7.2% from 2.8%. that was the forecast from 2021 going into 2022. and this idea too is that the supply chain blockages are not going to go away anytime soon. when you talk about food crisis, well, you talk about famine, you talk about it hitting italy said africa hard, cereal prices are surging. it is incredible when you think russia and ukraine make

. >> mark cranfield and kathleen hays. we now get to sue keenan. >> ecb president christina guard says -- christine laguard told euro area finance ministers that a new investment is intended to prevent economic pressures. the ecb is set to embark on its first interest rate hike in more than a decade. u.s. officials are working on arranging a call between president biden and china's xi jinping as soon as july. there are no details on what has been revealed on what washington wants to focus on in the dialogue. the war in ukraine, taiwan, and human rights are among the sore points in the u.s./china relationship. the two leaders last smoke -- spoke in march via video call. national security advisor jake sullivan says the u.s. will offer a global infrastructure initiative to counter china's international ambitions, particularly in the indo pacific. sullivan says it will provide an alternative to the investment that beijing officers -- offers covering both physical and digital infrastructure. the european commission recommends u

more on the fed and with the markets are pricing in with our global economics and policy editor kathleen haysand chief rates correspondent for asia and mliv contributor, garfield reynolds. let's start with jay powell and the message he was trying to get across. kathleen: the message is that the fed is more worried about not doing enough to bring inflation down than they are about tilting the economy into recession. jay powell still thinks the soft landing is possible, but he makes clear that the risk they are willing to take to win this inflation battle -- let's listen to what he said on the panel -- >> we are strongly committed to using our tools to get information to, come down and the way to do that is to slow down growth, ideally keep it positive, and as i mentioned, supply and demand, get it back into balance. certainly, there is a risk, but i would not agree that it is the biggest risk to the economy. the bigger mistake, to me, let's put it that way, would be to fail to fixed price stability. kathleen: he said we cannot expect inflation expectations to become entrenched. he says the fig

. >> that was kathleen hays with food for the bears. let's get to that story. it is providing more forage for those animals. we will get the first word news in new york with vonnie quinn. >> the chairman and cio said that we are six months into a bear market. highly, highly probable, a bear market. china is about to put on file a chinese canadian tycoon. the wall street journal says shanghai prosecutors plan to -- he was taken from the four seasons in hong kong. china has since taken control of nonfinancial firms. xi jinping is: on the government to balance the covid zero policy. state media says they are overcoming economic challenges. china's economy is widely expected to miss the 5.5% vote target. covid-19 cases will top 600 for the first time in weeks. 670 four cases announced. the highest since mid april. officials are warning that omicron subvariants cause of the spread. global news, 24 hours a day on air and on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. >> january 6 helped put 2.5 centuries of constitutional

we are joined by our policy editor, kathleen hays and garfield reynolds. let me start with you and the world -- world bank revised outlook. kathleen: revised lower again. when he spoke on bloomberg television talking about the danger to the global economy, some stagflation. what he is talking about is the fact when you have stagflation, you have high inflation, weaker growth for some time. that is what his concern is. he cut the forecast for the world to 2.9% from -- let me get that right -- 4.3%, bottom line, it keeps looking worse and worse. let's look at asia. there's no doubt one of the things besides supply chain and commodity prices due to the war in ukraine, the world bank is worried about global growth, but the gdp forecast and weak demand is all there. when we look at east asia pacific excluding china, gdp forecast was higher. indonesia, philippines, malaysia all expected to rebound. south asia, even india having the big meeting today will have its forecast revised to 7.5%. that is still pretty strong with the headwinds. east asian nations are faci

our policy editor, kathleen hays, is here with the latest.eme now , not expecting u.s. inflation to have peaked, but how much lifting some of those tariffs on chinese goods help? >> more than i would've expected. let's start with we are expecting for the cpi, the biggest report for u.s. traders, investors, for the fed, and others around the world, what's happening in the u.s. and what we are looking for, actually in the bloomberg consensus, is that it made say at a .3% year-over-year on the headlines. food prices are up, energy prices are up. so the long-awaited peak may not be here. on the core though, it cuts often, it could be down a bit from 6.2%, still, very high, 30 or 40 year highs, in fact. the problem here is, we are starting to see core goods, those prices softening. but we can expect services prices to keep rising in the u.s. and keeping inflation "uncomfortably high." the fed is on track for 50 basis point hikes. on your terminal come on bloomberg.com, team transitory is back, and they see inventory, housing market -- the housing

bloomberg global economics and policy editor kathleen hays has the details. s see the chance in australia, europe hawks arguing for this as well. kathleen: they are because they are afraid of central banks do not get aggressive and send a signal to their citizens, they will risk having more entrenched inflation. let's start with observed bank of australia, said to raise their rates back to back, meeting to meeting, for the first time in 12 years. interesting collier from economists. 11 of 23 c the bank hiking their rate of a more aggressive 40 basis points to 0.75%. echoing what they did a few weeks ago. but now you see them doing the standard 25 basis point hike, that is what phil mentioned, the head of the frb, going back to business as usual. 50 basis point hike and what is going on is the debate. a lot of economists are saying when you take out food and energy prices, it is tamer, not such a big problem. we do not have wages rising the way you have the spiral. this whole question of broadening price pressers is what they need to avoid. moving onto reserve

shery: kathleen hays, our global economics and policy editor there.ey holly, senior analyst. it is good to have you with us. not to mention all of the uncertainty, we continue to see the u.s. dollar rally for the one month high. on the other side of things, the japanese yen weakening. how does this bode for asian markets overall? >> is going to be a challenge for asian currencies going up because they are not hiking at the same pace. they have started the process of monetary normalization. definitely stockmarkets as well. markets are genetically predisposition to try to buy the depth these days and they are still trying to do that but these establish an area challenges -- great environment for stocks. i'm see more pressure ahead. -- i'm seeing more pressure ahead. >> the korean won slumping paid we are seeing losses of more than 1% against the u.s. dollar. it is risk-off sentiment fell across the board and even the japanese yen. it will usually act as a safe haven. we are talking about 130 4.90. do you expect the boj to do anything anytime soon? somet

paul: mliv strategist mark cranfield and policy editor kathleen hays. taiwan took center stage in weekend talks between global defense chiefs at the shangri-la dialogue in singapore. beijing says it will fight until the end of taiwan made a move toward independence, while the u.s. accused beijing up trying to unilaterally change the status quo over taiwan. let's bring in stephen engle in hong kong. what is the key take away here? stephen: it is a good sign they are talking. we had over the weekend as well the deputy prime minister of australia speaking with the national defense minister of china, the first ministerial level talks between those countries in about three years, so that was good. again, the center of a lot of these discussions that began on friday with the u.s. defense secretary also meeting at the beginning of the shanghai dialogues -- the shangri-la dialogues, excuse me, in singapore, where the two traded barbs over taiwan but also agreed to continue discussions. military to military between the u.s. and china have been fraught over the y

for more analysis, let's bring in our global economics and policy editor kathleen hays. what is your take on the message that brainerd is trying to send? >> the message brainerd is trying to send and all fed officials is this is about inflation. this is not about the labor market. it is tight and a strong. this is not about the fed having a preordained plan. this is about the fed watching the numbers and knowing that until it sees inflation starting to come down not on the forecast, but the actual numbers, they will have to keep hiking rates. let's listen to what she said earlier on cnbc. it's hard to see the case for a pause. we still got a lot of work to do to get inflation down to our 2% target. >> later in the day, the president of the cleveland fed was giving prepared remarks answering questions as well. she spelled out clearly something that lael brainard had touched on in her remarks. >> it by the september fomc meeting, it provides compelling evidence that inflation is moving down, the pace of rate increases would slow. >> could she be any clearer? she said it co

let's bring in our local economic editor kathleen hays. we are seeing risk assets buckling a bit on the back of this meeting. do think the fed is still behind the curve? >> well, i don't think the fed thinks it's behind the curve, based on where it is going to put the key rate, i think there's some doubt from a lot of fed watchers whether or not what they think they're going to do is going to be enough. let's look at what they did. the 75 basis point rate hike, that was expected after jay powell -- it wasn't expected until there were wearing inflation numbers and the fed made this move. he also said that they could do another one. but that is not for sure. what is for sure is the dots and medium dots is the consensus. 3.4% this year. but remember at the march meeting it was only at 1.9%. they are seeing more rate hikes and they are seeing bigger and taking it to a higher level. it gets tricky here. when you look at the economic forecast, they update them every three months, inflation, gdp and employment. this is what they base the dots on.

let's bring in kathleen hays and our chief rates correspondence editor, garfield reynolds. let's start with you and the revised outlook. again another cut. >> when the president of the world bank released the report and spoke to bloomberg television in particular talking about the danger he sees to the global economy, those are strong words and it has a lot to do with stagflation. he says the pain of stagflation could last for many years. if stagflation stays high for a long time, that's a lot of pain on many people. the 2022 forecast is 2.9%. it started at 4.1% in january and as recently as april, it keeps getting smaller because of food and energy prices soaring. thank you war in ukraine. what is interesting is when he focused on asia, while the world bank was downgraded, i can show you this right here -- 4.3% because of the covid lockdowns, east asia pacific excluding china, growth is going to be stronger in 2022 at 4.8%. exports are still week, but indonesia, philippines, all expected to rebound. asian growth seen slowing but slowing to 6.8% from 7.6% the year before. i

kathleen hays is with us. take us through, start with the u.s. inflation report due out later today, give us an indication of what that might mean for the fed when it meets next week. >> it probably confirms they are on the right aggressive rate hike path and they will not need to even think about deviating from it, because inflation as you said, at a percent and expected at a point -- 8%, expected 8.3%, the headline inflation steady now for a couple of months. core cpi is expected to come down a little bit from 6.2% to 5.9%. goods prices are softening just a bit. a lot of the post-pandemic buying or during the pandemic even from it that is fading, but on the headline, energy prices, food prices up 15% to 20% since last report. they make up 20% of the cpi, so that is is not the number that will reassure the fed. this question of what it will mean for next april, a couple of things are important to remember , besides the fact they have already made it clear that 50 basis point rate hikes are coming, july as well, they will be updating the summary

. >> vincent cignarella and kathleen hays. let's getting over to vonnie quinn. vonnie: good morning. the european central bank is working on new policy tools for the eurozone debt crisis. the decision was announced after the central bank made a surprise announcement. bonds yield as countries like italy shot up to 80 or highs after the ecb announced it plans to tighten policies. president biden has told president zelenskyy that u.s. will provide another $1 billion in security assistance. that includes artillery and ammunition. also advanced rocket systems. joe biden says he is announcing $225 million in humanitarian assistance to help people in ukraine. shanghai will conduct mask over testing throughout the city every weekend through the end of july. a temporary lockdown will be imposed on any residential complex where covid cases are detected. workers at supermarkets, restaurants, and other public facing businesses will be tested every day. china is setting up tens of thousands of lab testing booths. hong kong is tightening rules for home isolation as new cases

that's get more from our global economics and policy editor, kathleen hays. still think that a soft landing as possible? we have heard so much to the contrary at this point. >> they admit that there is risk, i think there is concern. but they figure if they hit the rate hikes hard, if they stop inflation expectations from rising, they can, even with a growth slowdown, it won't cause a recession. mary daly speaking at a linkedin event said say answer the question about avoiding recession, it's tapping on the brinks -- breaks rather than slamming on the brakes, going over the handlebars and having a proverbial recession. this is what she things it means for the economy. >> i wouldn't be surprised. in my forecast the growth will slip below 2%. but it won't actually pivot down into negative territory. kathleen: john williams said he does expect another fairly aggressive rate hike at the july 27 meeting, 50 basis points in maybe 75 basis points and he sees the economy slowing down to 1% to 1.5% growth, that's below potential, but that is not recession, he said. it

let's get our bloomberg policy and economic editor kathleen hays. 50, 70 five or even dare i say 100 basis points, what will determine what the fed will do? kathleen: a few things on the table, the market selloff. the markets are so concerned the fed will get aggressive or are they just excepting the fact that we need to get inflation down? in order to do that you have to slow demand, you have to slow the economy and they have to adjust. that's one of the big questions. it's far too early for the fed to say you're worried about growth. that won't happen for a long time. employment is still low, consumers have a lot of money to spend. they are a big risk to the economy. but so far that is still steady in the fed is going to have technology even more and we will hear what jay powell says if the risk of recession grows. will they be willing to let unemployment rise? chris waller, known as a hawk now, fed board of governors saying on a speech on may 29 it would be a magical act if the fed could hike rates to 4.2% and not cause a recession. but it seems to me that opens the door of acknowl

cross our cross asset editor andrea papuc, and welcome our global economics and policy editor, kathleen hayslet's go through the markets. we saw tech stocks with a bit of a rebound today. andrea are that's right. -- i don't think we can read too much into that, there was the oracle effect from their up eight forecast which you mentioned before, but nobody really knows what is going to happen at the fed meeting tomorrow, much less how markets will react. but what we do know is that there is this entrenched fear of stagflation. that bank of america survey showing stagflation concerns at the highest since 2008. you also have large investors now dumping stocks with hedge funds basically selling at the fastest pace on record, according to goldman sachs. so what we have is increased levels of volatility. investors are fearful, really just not knowing how to navigate going forward. jerome powell's prince conference to the is going to be crucial -- press conference tomorrow is going to be crucial. we are in for more pressure today in asia. as you mentioned, as long as real yields go up, pressure wil

bloomberg's cross asset editor a gene editor andrea: book and global economics and policy editor kathleen hayswere surprising. we have not seen such a reversal in quite a while for the essence 500. andreea: that's right. there are a lot of things going on. we have seen the inflation hedge is, the inflation bets come down in the bond market. to some extent, probably not surprising. you have had commodity prices come off quite a bit. but on the flipside, you have u.s. consumers really concerned about the outlook for the economy. they have trimmed back spending on big-ticket items during the pandemic. and they are really concerned about what is coming up, which is why you saw that her on wall street last night. and perhaps we are going to see a softer open here in asia. we also have to bear in mind, we are going into an earnings season where a lot depends on what companies will say in terms of how they are tackling costs. inflation pressures, but also a very timid consumer. there is a lot for investors to digest. and of course the question about whether inflation has peaked -- the market has not

haidi: our global policy and economics editor kathleen hays there.look at some of the moves, particularly as we see the surge continuing across the commodities complex. >> to bloomberg commodities by index hitting an all-time record high in the previous session. just a week come on line alongside copper and brent crude adding to natural gas in the previous hour. we are seeing the moves here at negative, it did move 5% high in the previous session and it was concerned around supply constraint in high demand. haidi: let's get to vonnie quinn now with the first word headlines. vonnie: boris johnson has a challenge by rebels to remain leader of the governing concerning party. the 211 to 148 votes exposed theresa may, who was ousted six months later. pressure has been building on johnson for weeks over party gate and downing street during the pandemic. singapore is advancing its leadership with the appointment of finance minister lawrence wong as the deputy prime minister. the 49-year-old becomes one of the prime minister's two deputies who will be acting