the reaction to the jumbo flight from the snb and the call on sterling.ing up, south africa's minister of public enterprise pravin gordhan, that interview is next. this is bloomberg. ♪ tom: welcome back to they open, 38 minutes into the european trading day. losses of more than 1% across the benchmark following the fed decision to raise rates 75 basis points. the dot plots signaling a terminal rate of 4.6% next year. action in the fx markets, the swiss national bank with a jumbo hike, nonetheless swissie under pressure down 1%. sterling also under pressure at 1.12, euro-dollar at 0.98. let's spread our wings and get over to what is happening in geopolitics, specifically energy , and the impacts not in europe but in the largest economy on the continent of africa, south africa. deflation is unlikely to slow down be central bank from delivering a consecutive 75 basis point hike because they want to keep inflation expectations anchored and alleviate pressure on the rand. we are now joined by the minister of public enterprises pravin gordhan, i want to start b

policy and strong dollar, snb talked about this yesterday as well. they might consider extraordinary meetings to combat this. raise rates faster to make sure your currency doesn't weaken, or as the mof of japan intervened. let's look at other things, a whole lot of pmi data out. 8:00 p.m. u.k. time france, germany, euro area and u.s.. kwasi kwarteng is likely to announce a cut to national insurance contributions and scrap a cut to corporation tax. and chair powell is scheduled to speak at an fed listens event at 7:00 p.m. u.k. time. it is every nation for itself as the almighty greenback batters global currencies. we will speak with parisha saimbi from bnp paribas. and more on the u.k. mini-budget later on the show. ♪ >> i think it's giving a signal but they are uncomfortable with how quickly things are moving with this intervention with huge moves in yen but i don't think this is going to be effective. >> the reason for that is every central bank is competing with every other to bring inflation down quickly. >> the bank of japan and ministry of fina

that led the snb to end an era of negative interest rates by raising its policy rate to 0.5% last weekturkey's cpi in august jumped by more than 80% compared to a year ago. the country's central bank says it's being driven by the indirect effects rising energy costs. it says the upward trend will last longer in turkey than previously anticipated. the country's monetary policy differs considerably from other nations. the bank lower he had the policy rate from 13% to 12% last week and says it will continue efforts to develop new support measures. on tuesday the september consumer price undechl for the central ar -- indefrm x will be released. it climbed 2.6% from a year earlier. the highest level in 30 years when the effects of consumption tax hikes are economist us economists saw wages are barely increasing. they're sticking to the monetary easing policy and causing the yen to weaken and pushing up imports. that is leading japan's consumers to tighten the purse strings as inflation begins to rise. the u.s. department of labor on friday will release statistics on september. total nonfarm

the central-bank action being digested from yesterday, the boe 50 basis points, snb with 75 basis points. in asia, worth noting losses there, likely to get six straight weeks of losses across the benchmark. i've asked down .2%, the ftse 100 just off by a 10th of a percent. looking ahead to the mini-budget from the new chancellor of the exchequer. tax cuts are said to be central as they tried to revive the u.k. economy. a number of economists putting a cautionary note around the inflationary impacts. let's have a look at assets. i touched on what is happening in asia, i want to put the losses in context as currencies feel the strength of the u.s. dollar but also concerns about what the recessionary environment will do to big exporters. down .9%, six straight weeks of losses. futures stateside pointing to losses of .4%, the two here back in focus. -- two-year back in focus. four point 13 on the two-year. goldman sachs by the way saying they see another 75 basis points at the next fomc meeting. they downgraded their forecast for the s&p. the pound is 1.11 amid increasing concerns you could

first up, the snb, there is variability there. then norway, the only one with not much uncertainty, definitely 50. then bank of england, likely only 50, with a slim risk of 75. that is 300 being delivered, may be up to 375. they might play off each other a little, which means the average central-bank rate goes up to 1.8%. we are basically at zero only this time last year, negative was the average rate so this is really an exceptional change and there is more to come, i'm afraid. tom: looking for the dot from those fomc officials later this week. global leaders have gathered in london for the state funeral of queen elizabeth ii in westminster abbey. that marks the culmination of days of pomp and pageantry since she died at her scottish castle. we are joined by anna edwards in central london. the town presumably somber, what are we expecting from the days events? anna: yes, the mood is somber. time for reflection of the last 10 days over the 70 years of the queen's reign. we are seeing images of early arrivals for the funeral. dust

guy: thomas jordan, the snb chair. raising 75 basis points today.he market seems like it wanted even more. other central banks being more cautious. we spoke with the central bank governor on its decision to hike 50 basis points and why tightening -- >> inflation has been higher than projected. it has increased rapidly in the past few months and that's also why a large rate hike was warranted at this time. larger than what was in june. at the same time we are seeing signs the economy is cooling off. and moreover with the policy rate at 2.25%, our assessment is that monetary policy is not just having a tightening effect on the economy and we are not certain about how high the interest rate must go to ensure that they curb inflation. we are getting to that peak level. >> yet at the same time you are telling us you don't expect it will come down until 2025. isn't there a need to do more if it can it take that long. >> inflation has -- it was also frontloading interest rate hikes. relative to our june pass. we do put weight on the signs of a cooling down

i'm sure the bank of korea and authorities in thailand, taiwan for example, they may look at the snb.nal a turn in the dollar led by central banks? lisa: this kind of rearranges things a little bit. i was asking this earlier how much money are japanese authorities spending to preserve the guild control, preserve something because against market that absolutely want to turn away? how much can they continue to do this kind of thing? to have enough money or will this become putatively costly? >> i believe $9 billion equivalent was spent earlier this week. it will be so much more efficient if they went?. we could see 135 very very quickly. the minister of finance pushing things along. at this point, still two things coming against each other. we are pushing at lower. that is going to be very expensive. jonathon: thank you. geoffrey yu there. 225 on a bank of england rate. 175 previously. a 50.8 is hike. 113 on sterling. positive by about one third of 1%. the next event is a fiscal event for the u.k. tom: as you mentioned, this is a big deal. john, what do you look for tomorrow? jonathon:

snb saying it can't rule out more hikes you are seeing this in a broad based way. do the central banks have control about this >> you are watching the globe tightening this is not just a u.s. story. the u.s. has been first and in the forefront which is why the dollar is stronger joining us now to talk about this theme of rising global rates is roger ferguson. he is former fed vice chairman and former president of tiaa he is with the council of foreign relations. roger, it seems the market is getting the message when jay powell says he is moving rates until they are restrictive has the market caught up with the fed or is there more of a reckoning to come? >> i think the market has caught up with the fed as of today. i think the challenge as the fed may find itself going faster than it currently expects. i think that is the dilemma here they were clear yesterday about the message of higher and more quickly and for longer i think the market heard that. the incoming data will drive whether the fedex cute executes plan >> watching the other central banks, roger, the fed