we will bring you more from sintra during tomorrow's show. >> annette, thank you.e look forward to the interviews you have lined up tomorrow >>> let's check now on markets we saw notable action stateside yesterday. here is the picture of how wall street closed up you had all three of the majors t end lower with the selling in the tech names particularly the faang stocks under performing nasdaq dropped 1%. te tesla shares pulled back 6%. nvidia pulled back 4%. in terms of trade today, we are looking at a rebound according to u.s. futures. you see all three majors are pointing to a stronger start modest whomoves in europe. we will see if the slump in tech continue its here is a picture of the u.s. tech and closer look at the moves. tesla is the real under performer pulling back 6%. alphabet dropped 3%. we did see a owngrade to the stock. part of why it under performed joumanna, the tech names have been real stars year to date the source of the strength in the u.s. and clear leaders of the rally stateside. a lot of bears were looking for them to collapse of i wonder i

that is what they told cnbc at the central banking forum in sintra the leaders of the fed, ecb and bankf england and bank of japan signal they can hike rates without causing recession. jay powell says he doesn't see core inflation falling back to 2% until 2025. >> i don't see us getting to 2% this year or next year this is core inflation headline inflation is coming down and lower than core for core inflation, no i don't see us getting to 2% this year or next year >> 2025? >> yeah. >> core inflation 2% you will be restrictive for a long time? >> we will be restrictive as long as we need to be. you know, if inflation is coming down sharply and we're confident it is on a path to 2%, you know, that would be a different situation. you would think about loosening policy that is not something we're thinking about now or in the future >> powell gave a hint on the hiking path. >> and we decided not to raise rates at the june meeting. we have not made a decision to go to that it may work out that way it may not work out that way i would not take consecutive meetings off the table. >> a lot of is

pushing back perhaps on the hawkishness from the central bankers in sintra. rishaad: just to get back to the yuan story, we are at levels not seen since the third of november. really strong dollar and also inadequate set stimulus measures compounding a disappointing reopening rebound. this is weighing on equity returns. six -- we have at the moment the yuan reversing its drop after the pboc's pushback at that stronger than anticipated fixing. the thai market, the index just opening. really flat. the bat is again, weaker, a low that we haven't seen since november. the dollar going up because of the strength of the u.s. data and also, there are uncertainties surrounding the general election. the leadership vacuum at the moment with regards to thailand. the winner there is facing a flurry of legal complaints and has only got a limited time to get a coalition together. there we go. there is a look at the bat. haslinda: let's dive deeper into the fx market. the head of fx and microanalysis for asia, todd elmer is here. let's start with you. the fix, 300 bps higher

tom: i don't think we will hear this today at sintra.ve theory and analysis like we heard fromwel li which is one aggregate idea. there is not an aggregate america. there is bankruptcy america and his somebody figured out how to paris but it's sold out? it's like to america's. lisa: and one inflation number they are going after. tom: stay with us, in the 9:00 hour, sintra, this is bloomberg, good morning. ♪ we moved out of the city so our little sophie could appreciate nature. but then he got us t-mobile home internet. i was just trying to improve our signal, so some of the trees had to go. i might've taken it a step too far. (chainsaw revs) (tree crashes) (chainsaw continues) (daughter screams) let's pretend for a second that you didn't let down your entire family. what would that reality look like? well i guess i would've gotten us xfinity... and we'd have a better view. do you need mulch? what, we have it's an amazing thingulch. when you show generosity of spirit to someone. and you want people to be saved and to have a better life, t

our colleague sarah eisen was speaking to the central bankers in sintra.here are different phases of the cycle. japan is still easing. powell close to the end. lagarde still sounded hawkish. bailey has to sound hawkish. that is having an impact on currency and where the currency bears are trading. how will that impact the relative performance of the stock market indices >> we think in the west, the u.s. is less hawkish than the ecb or bank of england in that order. fed, ecb bank of england the bank of japan will need to be more hawkish. if you are looking at the inflation and growth picture, they don't need the extraordinary growth they have that means the dollar needs to weaken it has been up and down over the last six months, but it needs a bearish buy to it. that has benefits of the relative performance in the local currency terms of the u.s. market relative to the west to europe and the uk. for japan, what it means is we think the japanese yen will stall and you will have the intervention and that band will widen and maybe ministry of finance will stop

he made comments to sarah eisen at the forum at sintra. >> two more additional rate hikes. the median was strong with two or more rate hikes if you look at that data over the last quarter, what you see is stronger than expected growth and tighter than expected labor market and higher inflation. that tells us that although policy is restrictive, it is not restrictive enough >> treasury secretary janet yellen hopes to travel to china. speaking with our colleagues at msnbc last night, she reiterated calls for the two largest economies to work together the secretary did not offer any details on when a trip to chichina may happen. >>> and microsoft's ceo would like to ditch deals with video game companies and console makers testifying during the hearing on the ftc bid to block the microsoft takeover of activision, he said he has no love for the agreement microsoft wants to make sure the games are more widely available if it closes the takeover of the company. dom. >> the video game landscape will change if a deal like this were to happen. >> right >> silvana, thank you very much

sintra is like a modern conference. we are selling this, help us out here.will take ferro if he comes back. the really serious thing and the conversation stopped there is g dr.opinath said we don't really know in july whatever update looks like. there was a pause there in the conversation. lisa: it seems that people are speculating in markets and the economy but it will happen quickly. we heard about this rapid disinflation from morgan stanley. a lot of the market prognosticators and economists don't want to come out with the surgeon and follow the price action. that's what we keep hearing from a lot of people in the market as they reassess. we like markets now because the mood has shifted. is this just price dictating? tom: michaeldarda encapsulated this yesterday. he had bulls behind him but he said if it's disinflation with the imf declining real gdp as well, others are more optimistic on that. coming up next, looking to july, the chief fx strategist s atopgen and we will speak to him about what we can read in the leaves of the foreign exchange market. th

carl weinberg, explained to our audience why sintra matters to you. >> good morning.am looking at sintra and in opportunity for key central bankers to explain themselves. the big show is going to be on wednesday. we have fed chair powell on the same stage as christine lagarde, andrew bailey of the united kingdom. the latest on the bank of japan. this is a chance where the four can explain not only how their policies are working for their own countries but how policies are working together to bring liberal inflation to a halt without telling the economy. in the background, world trade contracted in april. every time we have seen world trade contracted over the last 60 to 70 years, there have been five episodes of world trade contraction and everyone has lifted a slowdown or recession in the global economy. there is a lot of stuff on the table. tom: the dynamics right now of traditional monetary policy, it may be something like other theories. does carl weinberg have an operating theory right now, or is the only theory that we are coming out of the pandemic? carl: i hav

i think it is wonderful to have a forum like sintra. which brings together academics and others like policymakers to consider those ideas and explore them. for cost benefit and the rest of it. but at this point in time, i think we have to be as persistent as inflation is persistent. we have to be resolute and decided and determined in reaching the target that we have set. not debate the target as we are running that face. -- running that race. >> it does raise the question about how far inflation will come down to. >> it does, but let me reinforce what christine said. what is the inflation target? it is the definition and practice of price stability. in our legislation, it is what price stability is taken to be. the 2% target. and i don't think anything has changed in terms of what we mean by price stability and i think that is a very important start point, the anchor that we have to always maintain. in terms of bringing it down, we have faced and are facing a big challenge for a very long time, but we have to meet that challenge. i don

but in terms of what the boj might do going ahead i think the consensus from what we have heard in sintramakers is they are not going to do anything big for some time yet so this speculation of possible moves in july, one third of economists we surveyed earlier this month, are they still going to be so much speculation? i think less. the boj price forecasts are not high enough and they will have to raise them but there is still not enough power in this inflation trend to warrant change as soon as july so if the boj did something in july it would have to be something opportunistic, taking advantage of where the markets are but that would help the yen if they did that but that is the outlier scenario for july. rishaad: the nikkei and topix had a fantastic run. 26% up so far for the nikkei. what does it feel like in japan? is the economy humming along nicely and our equity prices being justified by a chance -- change of mentality and corporate governance there in japan? >> [laughter] i am less willing to buy into the idea that we have a sea change in company stocks and they will keep going u

haslinda: plus we are live to sintra ahead of the ecb's annual central banking former -- forum. we look at the debates on recession facing policymakers. this is bloomberg. ♪ >> we gave no excuse to blame this on the west or nato. we made clear that we were not involved. we had nothing to do with it. this was part of a struggle within the russian system. >> dear friends, today i address once again all russian citizens. i thank you for your endurance, solidarity, and patriotism. cilla garrity showed any ransom and attempts to organize internal unrest are doomed to fail. -- solidarity showed any ransom and attempt to organize internal unrest are doomed to fail. haslinda: hours before putin's speech, wagner leader yevgeny prigozhin released an audio saying, we did not have the goal of overthrowing the existing regime and the legally elected government, which was said many times. we turned around in order not to shed the blood of russian soldiers. rishaad: let's get to our correspondent, rebecca choong wilkins. it has never been true about what churchill said about russia being wrapp

sintra is getting going in portugal but tomorrow we really kick it off. we get more italian data.mer confidence but the central policy panel debate. how differently are these various central banks going to see the world? the united states, the euro zone, japan, different mountains to think about, different ways of analyzing how the economies are developing. the boj is still down one base and maybe the fed is the one closer to the peak of the mountain but what happens when it gets to the peak is the big question. alix: there are so many hiking metaphors. it's the clinging in the base camp so let's get to the session of the day. is this at peak or plateau for central bankers. we will hear 90 minutes on that panel with the central bankers. do you think all the bankers are fighting different mountains at the end of the day? >> i don't know if it's a mountain or a peak or a plateau. it's a marathon really the differences between one extreme to the other extreme is the ukip the main goal remains the same, the name of the game remains higher for longer. one of the takeaways from the chri

we got comments from christine lagarde from sintra. she said it is unlikely the ecb will call a peak in rates. she said the ecb should not waiver in the fight against inflation. that is driving the euro higher over the dollar. one .30% and the first acquisition for the in-house beauty division kering with 100% of business owned by blackrock and the current chairman shares up .70% and the london based company expects income to grow in the coming year with margins improving to 20% over the medium turn the stock is up 17%, frank. >> julianna tatelbaum in the london newsroom. >>> time for the morning call sheet. we check on the biggest upgrades and downgrades by firms you know and stocks you own goldman sachs upgrading on kellogg. moving to a buy as the company stands out as the few who will sustain increasingly scarce growth with the favorable market exposure shares of kellogg's up 2% in the pre-market and bernstein downgrading alphabet the 40% rise from the november lows means it is time to move to the sidelines on the stock looking at s

slovenia and lithuania, and the bank of england governor andrew bailey and huw pill are both coming to sintraill seek any indication of inflation fighting. we will also look at what that means for assets across the board. european stocks down some 0.2%, it is defense stocks getting slammed in today's trading session, over the last three months or so they have increased significantly. that's it for the european market open. "surveillance: early edition" is up next. this is bloomberg. ♪ 's an amazing thing when you show generosity of spirit to someone. and you want people to be saved and to have a better life, then you don't stop. we have been able to reach over 100 million people impacted and affected, and at risk of hiv. the rocket fund takes all of the work that we're doing, all over the world, and looks at the most effective ways, to get resources to them, to get services to them. the idea that we have saved five million people's lives, it's overwhelming. it's everything. francine: good morning everyone and welcome to "bloomberg surveillance: early edition." russia's defense minister visits

i think it is wonderful to have a forum like sintra which brings together academics and other than policymakers to consider those ideas and to weigh the cost-benefit. but i think we have to be persistent as inflation is persistent and we have to be resolute and decided and determined in reaching the target we have set. an not debate the target. >> but it raises the question, governor bailey, about how far inflation will come down? gov. bailey: it does. but let me reinforce what christine said. what is the inflation target? it is the definition and practice of price stability. in our legislation it is what price stability is taken to be, that is the 2% target. i do not think anything has changed in terms of what we mean by price stability. that is a very important point to start with. it is the anchor that we have to maintain. in terms of bringing it down, yes, we are facing and have faced the biggest challenge for a very long time. but we have to meet that challenge. i do not think it is the right thing to do to say, well, this is difficult. let's change the target. i do not think that is the r

we have heard strong comments of the conference of sintra out of the ecb talking about how they are prepared to move further. kathleen: if they have two and we have been getting this talk for the last couple of months that it will take a while for them to get done. that is with the hawks are saying in one form or another. all of the first day of the event, christine lagarde's in particular, the president of the ecb making it layered that it is not time to stop that. >> it is unlikely that to the near future, the central bank will be able to say with full confidence that the peak rates have indeed been reached. bearing a material change to our expectations for inflation, we will continue to increase rates in july. kathleen: the head of sylvania's central bank is saying today that inflation looks persistent and will call for mirror -- more rate hikes. latvia's central bank chief saying we cannot rule out a july hike and mr. walsh from belgium, the central bank needs to see clear signs that core inflation is easing to think about a pause. imf called on people today like the ecb and its peers to

rishaad: we will be watching the european central bank form taking place in sintra outside of lisbon.- bank leaders will be gathering there, plus it is the world economic forum's summer davos event. and pakistan will make changes to its budget to appease international monetary fund concerns on taxes ahead of agent 30th deadline to revise its bailout program. -- i head of its june 30 deadline to revise its bailout program. india's advisement industry is set to be growing annually at 12%. and we will be assessing vladimir putin's grip on power as he stems the mercenary insurrection. we get more with icici securities. this is bloomberg. ♪ ready? go! okay, doctor. operation? no, nurse. college? what, you have to go to college to be a doctor or a nurse. hurry, time's almost up. okay. the most amazing care. oh, fezzy! oh, i know. shriner.. (buzzer noise) time's up! okay, our turn. ready? go. they changed my life. shriners hospitals for children®! my life was changed because of monthly support from people just like you who called the number on your screen with a monthly gift so kids like me

we calling it >> well, first of all, sara, thank you, and christine, thanks for hosting us here in sintraso, what we're calling it is maintaining the level of the federal funds rate at its current level for this meeting thank you. thank you. and we did that -- if you think about it, we've raised the federal funds rate by 500 basis points since a little more than a year ago, and we think -- so, we've come a long way. we also think that there's more tightening power coming through. really, policy hasn't been restrictive for very long. we started at, you know, negative real interest rates, and we've now moved up to where we actually are in restrictive territory. but we haven't been there very long, so we believe there's more restriction coming and what's really driving it, you know, to andrew's point and christine's as well, is very strong labor market. we've got a labor market that -- where jobs are being created there's strong wage gains, and that's driving spending, driving real incomes and driving spending, which is driving more demand and continuing to drive labor markets. so, the labor

i love your comments on sintra. everybody is pounding nation bandwagon.ith diamond and dave rosenberg, disinflation is in lace to discuss. paul: we see disinflation. the three waves of disinflation we have, the demand shock of the pandemic, the supply shock of the war, and the profit of him nation. wave wind and wave two. we have six months of deflation in durable good prices in the u.s.. the price is fading completely from the picture. now what researches he is the margin is coming true. every company called weird technical stop with inflation numbers creating more distortion. draw up any information around the world and you are seeing the numbers coming down. that is the disinflation narrative that will start to become a bit more apparent. katie: i want to talk about profit led inflation how it differs or is the same with what we the when it comes to margin. what will be the biggest impulse in the disinflation you're talking about. is it the martian -- margins decreasing? how does that move through? paul: the inflation it is a win. profit led inflation