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we will see if anyone wants to up that ante, like raphael bostic. haidi: in terms of how traders and investors are parsing this, we saw that whipsaw market when it comes to equities. the yield curve inversion continues to be a major story that tells us how much nervousness there is about this. katie: i really think it was the bond market where all the action was. you have the s&p 500 figure -- finish about .5% lower after a big intraday reversal. had turned positive at one point, that went away. the big story was in the bond market. we break it down, you saw the front end rising as traders priced in the supersized hikes that kathleen was talking about. if you look further out the curve, it was a bid into bonds, sort of like a waterfall, the yields falling in longer duration debt. you put that together, it's an inverted curve to the tune of over 20 basis points. the readthrough there is investors are concerned basically at the expense of inflation is growth, that this economy is not going to be able to withstand really some of those big, big rate hik

raphael bostic said everything is in play.aid there's no reason not to do 75 basis points. swaps smart has gotten. dani: we are having -- i know how they put in their no overnight thing 100 basis points in july. the data is screaming 100. manus: we haven't seen a curve this inverted. we are going to do stocks and then write. -- and then rates. we will come back to the inversion. these are three stocks to watch on the date, you had three big, beefy announcements. deutsche telekom, ericsson and psm. i'm deutsche telekom, they are selling all the assets. dani: that is there tower of retaining 49% of it. manus: 11 billion euros, infrastructure sold. versus going to be a happy man. he managed to bump off the roster, not our of the deal. it is going to be 10.7 billion in cash. buying those assets. dani: ericsson, this is interesting, topline was ok, the bottom line, is amiss for second quarter profits. the ceo saying global supply chain situation remains challenging and inflationary pressures a strong. manus: you're going to see str

raphael bostic says the u.s. economy is "a ways from recession." the central bank has further to go to get inflation under to go and that how much rates go up depends on how the economy evolves. apple offered just good enough news to by itself time. their quarterly revenue and profit merrily beating estimates and iphone sales held up better than expected. tim cook told bloomberg apple is dealing with a slower economy but expect revenue to pick up in the coming months. let's get to big tech earnings. amazon shares also up after reporting better-than-expected second-quarter revenue. james lee, a research analyst, joins us now. he has a buy rating on amazon and $155 rice target. how much of -- price target rate how much of it was ramping down expectations and delivering above them versus a really good strong topline beat? james: right, things for having me. i think results are better than feared. going into the quarter, sentiment was pretty low. and it is pretty much in line operating 10% low, and revenue growth did have the typical quarter. we have t

morning as the numbers cross, the fed president john williams will be speaking in puerto rico and raphael bostic:45 a.m at 10:00 a.m., we get the may wholesale inconvventory report said that will stop you in your tracks. >>> to help cap off your week and trading day ahead, let's bring in simeon hyman. simeon, great to have you on the program. what are you watching most closely right now? >> i think what we have seen is the old adage that the cure for high prices is high prices we'll probably see a bit of a weaker jobs number today inflation expectation has been coming down steadily for months. the headline is oil pulled back. if you look at the break evens, they have been coming down since april. in fact, the ten-year break even is close to 2% the two-year break even pulled back that is the good news. that is increasing concerns of economic weakness. >> do you feel the stock market is closing in on some kind of a bottom maybe not this is the bottom, but getting close? >> the question he is what's priced in. here's one way to think about it we hhave decent fundamentals crazy low leverage be he lo

we heard from raphael bostic being very supportive of a 75 basis point hike at the july meeting. china's inflation hit a two-year high. what other strong economy in the world would have -- would give to have an inflation rate that low? or prices continue to drive inflation higher. food price inflation was 2.9% versus 2.3 in may. a core up 1.0 percent after being up 1.9% year-over-year. the bottom line is, covid zero policies continue to suppress demand. economists expect a contraction in second-quarter gdp for china. the head of pboc said they aren't worried about stimulating growth or fighting inflation. it's more about boosting credit. we will have more later in the show. starting off with a top story. u.s. secretary of state antony blinken revealing president biden and xi jinping are set to speak again in the coming weeks. for more let's bring in u.s. national editor craig gordon. greg, what are the competing forces biden is weighing here? craig: he is thinking very seriously about tariffs. the challenge is key is facing 2% inflation in the u.s.. he would love to have the chin

lisa: raphael bostic saying the u.s.s not in a recession, but sounds -- which sounds good, but bad news is good news. -- good news is bad news. the strength in the economy that is not the recession that seems to be suggested by the data is the reason the fed can talk about this, but here is the tortured aspect. they are trying to twist themselves and do an administration pivot and say, we understand people are hurting. this is a tough message to get right, what this seemed to underscore is there is a slowdown, it is not enough to stop us from raising rates. jonathan: the conclusion, there is more work to be done? kailey: the question is, how fast are they going to do this? bostic saying the pace and size of future hikes depends on the data. we are going to get more data an hour and 10 minutes from now, including that cost index. jonathan: those headlines from an interview with npr news this morning. anymore fed speak, we will bring you. we need to talk about a call the president had with the president of china. when we s

the atlanta fed president raphael bostic, has repeated his support for another 75-basis point hike atext fomc meeting. he says the central bank can raise interest rates to 3% without sparking a recession. policymakers pivoted to fish aggressively lifting interest rates, as they work to tame the hardest inflation in decades. taiwan's president visited tokyo to pay respects. he is the most senior taiwanese official to visit japan since 1972. the trip is likely to elicit an angry response from china, which claims taiwan as part of its territory. abe was a largely popular figure in a one, for his support -- figure in taiwan for his support of the island. members have voted to strike over a pay dispute in the train. it could bring the network to a standstill for the second time in months. the union says drivers agreed to walkouts. members of another union also voted to support strikes. travel was halted in june by a three-day railway strike. liquidators off prep crypto hedge fund three ares capital say the fund's founders have not been cooperating and that their whereabouts are unknown. re

inflation expectations and a conversation that took place publicly between one of the governors and raphael bostic >> we're going to get comments about all this on wednesday. which will set the market directionally one way or the other. what is your sincense of what cs after this >> a couple things first we have to see if there's any dissent. so i think that's the first question when we'll see tight consensus around this or a few outliers that may be the precursor to something new. secondly, i think the story is, i think chairman powell's going to be a little careful about putting too many numbers out there as that has proven in the past to not be very accurate they do not want to signal at this stage that they think the job is done, because think know it's not so i think think want to keep expectation in the market up 50-75 basis points for the next meeting. let the data come in and then decide >> we're really grappling with two extremes one is the stop and go policies that got us into trouble back in the '70s it seemed like being data dependent. and we hear most of us probably think that's the w

under control it is a positive outlook, but you have to squint to see it of the we will talk with raphael bostic tomorrow. melissa. >> when you pair that with michigan and even some data out of the conference board that there should be concern that is happening. the fed will actually have to keep pushing on the hikes. >> here is the good news, melissa. the good news is that inflation expectations look to be very tied to gas prices if you get gas prices down, which i know that is a big if in this world today with supply and refining problems. inflation expectations can come down it is a real conundrum for the fed which has to target an expectation that is based on a commodity which has little control over >> maybe those were hawkish comments at the last minute. that's where i got what i said the other day. about how much expectations have come down. just the murphy's law that they will be, you know, not tight enough initially and then one thing they get tight and they stay tight that is the way human nature is. stay at the party too long oil is below 100 the ten-year is not continuing to 3.5 how