and we are hearing from mary daly.ing down price pressures without long-term damage. there has been much of that debate in terms of the decreasing likelihood of being able to get that false landing on that your -- increasing debts on some sort of recession in the u.s. coming up next, crypto currency exchange giant says it is exploring more m&a opportunities after the recent spree. our exclusive conversation with the ceo is next. this is bloomberg. ♪ haidi: we are getting more lines from san francisco fed chief mary daly speaking at this virtual moderator symposium q&a session in singapore. also alongside her is the managing director. we are hearing from mary daly, really talking about the resoluteness of the federal reserve in bringing down cpi without long-term damage to the economy. also talking about how inflation is high in just about every country, not just the u.s. the fed has to balance low inflation. that goal is the goal of full employment. also really acknowledging that it is a struggle to bring cpi down and

you heard from james bullard, loretta mester, and mary daly in the last few hours. here is more from mary daly. >> navigating the economy toward a more sustainable path necessitates higher interest rates in a downshift in the pace of economic activity and the labor market. but for now, inducing a deep recession, the kind we had back in the 1980's, or some would even think of the great recession, that is not warranted, nor is it necessary to achieve our goals. david: right. so i mean, there's the fed. very interesting the conversations we have had this week, and certainly today. i would recap two things from the last 60 minutes or so. we were talking to our guest from abrdn. they said the fed will not stop until the u.s. is already in recession. that is number one, which gives you a good indication as to whether or not global equities -- which by the way, trading at 13 times earnings, already below the median since the fed started qe1 in november 2008. are things cheap enough? maybe not yet. point number two is, when you look at how cross asset investors are getting

mary daly says recession is needed to curb inflation. an emergency intervention package, a deal on gas caps. putin is said to proceed with annexation of ukrainian territory. there is financial stress rife throughout and this week it was greeted by the blowup in pension funds when the boe stepped in. there is thinning liquidity, bond deals being shelved, volatility skyrocketing and yesterday was a great example. the moves in this equity market to close out this quarter have been extremely painful. let me show you what stocks did yesterday. following by some 2%, and the vix remains above 30. it went about 30 on monday the first time since june, and has stayed above their everything obey. -- every single day. since 30 is on the lower side, -- it is more than the tech bubble, so these are big losses building up. s&p futures continue to move lower, we have an unchanged dollar. dollar strength has been driving stress, the fact we don't have a stronger dollar today is helping. sterling at one point this morning went back to levels it was before

but in san francisco, fed president mary daly said this earlier this morning. >> we might have to do a little bit more on demand because supply chains are sluggish. our supply is sluggish to recover. and that means that we have to get inflation down, because as robbie said, price stability is fundamental. it is also fundamental to help people live their lives. rishaad: and also, so aggressive because it was late in the process of tightening monetary policy. but the possibility of of a nord stream pipeline suspicions sabotage. this sends gas prices up. suffering a shop -- sharp drop. evidence of sabotage rather than a technical issue. we are having three pipelines that are almost the same. denmark is building up security around energy assets. another headline for the ecb. how do you deal with all of that? it is beyond their control but hugely inflationary. david: yeah. absolutely. so all of these things together, mark cranston with the live team. everywhere you look, there does not seem to be anywhere to hide at this point in time. to understand what you're talking about, what we are

mary daly will give a presentation later this evening, we are watching u.s. job claims and gdp. there is a huge range of ecb officials due to speak in lithuania today, that includes mario senteno. but first, we have more reaction to the rally sparked by the bank of england's intervention as the follow-up from the u.k. mini-budget continues. porsche is set to pull off one of europe's largest ipo's in a decade, it started trading today. we are live in frankfurt later in the show. this is bloomberg. ♪ dani: welcome back to bloomberg. i'm dani burger in london. 10 year yields fell over 100 today. one who is transfixed is william hobbs, the barclays cio, a double var shock, boe steps in the other direction and then this happened, is this a broken market? william: that is quite the opening question. this year, it has been like a bond market red wedding. in a way, we have been surprised by a tide gone so quickly. but yeah, it leaves a very volatile market to trade. dani: do you trade them? william: at the moment, we have no strong positions on the u.k. within our macro book, but we are

we get earnings from bed bath and beyond and the speech from mary daly.ter sitting down with our "squawk box" this morning. you don't want to miss it. >>> stocks and bonds suffering a rough september. leading some to question if investors is should rethink the portfolio strategy here is ken griffin from yesterday's delivering alpha >> the 60/40 portfolio looks better today than any point in recent time. >> why >> the 10-year bond at 4%. 10-year bond at 75 basis points or 1%, there is no upside to the bond in the moment of recession which is characterized with inflation. now 10-year at 4% in a down turn and inflation heads back to a one handle, the bonds are worth more than today. that is a win in the portfolio that's in the green. when the equity portfolio is likely to be in the red. >> for more on that and the trading day ahead, let's bring in degas wright. cio and cnbc contributor good morning, degas. >> good morning, frank. >> you heard ken griffin say that in person what is your take as the traditional 60/40 portfolio. is that what you are advising cl

the market will watch that closely followed by the san francisco fed president mary daly and st.is fed president james bullard and then neel kashkari wraps up at 1:00 p.m. >>> to the top stories hurricane ian impact felt in the energy space bp and chevron shut production plat p forms in the gulf of mex. occidental petroleum moving facilities in the region >>> airports deal with a wave of protests from workers and cashiers and baristas. they launched a strike yesterday over staffing levels and wages flight attendants at united and southwest are expected to demonstrate in 20 airports in the united states to draw attention to workplace problems in the u.s neither strike is expected to disrupt ail trr travel >>> chicago fed president charles evans speaking with our colleagues in europe evans was pressed if the central bank and needs to carry out another basis point rate hike. something caught in my throat. >>> markets looking to bounce back to the september slide. futures right now in the green the dow looks like it could open up150 points higher. let's bring in kari firestone. she i

after his monthly recap, his deputies went out and tried to walk it back immediately james bullard, mary daly were all out in front of whatever microphone they could find, trying to counteract the interpretation that the fed was giving the green light to put risk back on, but it was somewhat too late. so the market started to believe, maybe we won't see anything for september then the market started to believe, maybe we'll see 50 bips that is a fallacy that has largely corrected itself with the expectation that we'll now sue 75 bips in september and that is the retrenchment we're seeing now the last negative catalyst i foresaw, the third leg of that false bullish thesis was that there -- actually, it's very synonymous with what josh was just saying. there's not real damage done in the economy. if there's not a significant slowdown coming in the back half, the consumer balance sheet is, in fact, not deteriorating, and deteriorating quite rapidly, as a matter of fact, as consumers are leveraging up, and we have all the evidence in the world to bear that out so, if you were just looking at the j

that is not warranted jonathan: that was mary daly, the san francisco fed president.onths ago, -- moments ago, we caught up with andrew griffith. we bumped up against a heartbreak, a commercial break. he could not complete his thoughts. tom: what were your thoughts on that? jonathan: we can wrap up his thoughts another time -- tom: what i got there was complete lack of urgency of the moment. i know pound has recovered. seems to be a complete understanding by the british government of the urgency here within global wall street. jonathan: what was clear from that interview is they are trying to address the optics,, across as a united front, coordinated. that is not how it played out over the last week. typically, you have a budget announcement. alongside would be independent forecasts from the budget responsibility. that didn't happen this time. then what would happen is the bank of england would go november 3 and provide monetary policy, that is not what happened. there is nothing coordinated about this. you've got the budget, the massive market fallout and unprecedent

neel kashkari, mary daly, and hugh pill of the bank of england, 9:30 a.m. following some of the discussion. yesterday, the bank of england had come out with some sort of inter-meeting intervention. they did not. we will get more of a sense of what it will take for them to get in. a host of u.s. data on the housing data. home prices as well as new-home sales at 9:00 a.m. and 10:00 a.m. how much do we get retracement, actual declines as mortgage rates go up and people are less willing to buy houses? at 1:00 p.m., it is a treasury auction, $44 billion of five-year notes. yesterday, the auction was a bit messy. how much demand is there for five year yield? north of 4%. is this enough? is this a reasonable alternative to going into stocks or the dollar? that will determine where people perhaps think the feeling may be at these levels. jonathan: worried about volatility as well, buying into a 50 basis point move. lisa: when you give -- get full faith and credit instruments moving so incredibly much it undermines confidence as to how much conviction. jonathan: dar