with tom mackenzie. tom: global equities rally. expectation the fed will hold off hiking rates this month. oil gains before the opec-plus meeting. the senate removing the risk of a u.s. default. the measure goes to president biden for his signature. goldman sachs warns trading revenue is down more than 25% as economic headwinds build. bank of america sees a flat quarter. francine: if you look at futures, gaining 0.4%. a lot of folks on tech in asia saw a rally, and there are hopes the fed causes interest rate hikes. tom: those are linked, the fed tying into the tech rally in hong kong, that is pronounced. a number of factors keeping the catalyst around. optimism on the upside. the philly fed president saying we should not only skip in june but in future months as well. it is starting to build a narrative that the fed is in a position comfortable to pause in june, as we await the nonfarm payroll later today. the expectation is from 200,000 down to 195,000. the debt ceiling deal is done, it just needs to be inked by the president. eq

. ♪ dani: as we head closer to the end of the hour, let's bring on bloomberg's tom mackenzie. s coming up in a few minutes. also coming up at the start of your show is u.k. data. tom: if you did not notice, it was about the markets and it is about the markets today. the forecast will come out at 7:00 am u.k. time. do we want a stronger gdp environment were they are looking at additional rate hikes? it will come in at 0.2%. that will drop at a time we are wrestling with challenges. that links to the mortgage market. nationwide mortgage numbers coming. dani: are you going to be able to get mark cudmore talking about anything but the dollar? -- dollar and the yen? tom: that will be a challenge. he is obsessed. we are down through the 145 sector. we are looking for any intervention from the ministry of finance. that has not happened since 1998. we will see. things seem to be getting more extreme the day. dani: i am being told you will have an ai conversation. i am hoping that is not been led by your ai avatar. tom: it will be me. it will be a portfolio manager from 91. she is looki

>> good morning, i'm tom mackenzie in london and these are the stories that set your agenda. jerome powell leaves the door open to consecutive rate hikes with christine lagarde and andrew bailey also seeing more tightening as inflation remains sticky. top banks all past the fed's annual resiliency test, clearing a key hurdle for returning dollars to shareholders. and signals that an industry glut is easing. we check-in on the data markets, it was a mixed picture when it came to the close of course in the u.s. yesterday. we are weighing up the comments it came through from the central bankers, andrew bailey, christine lagarde of the ecb, locking in essentially the height coming through in july, that is the expectation and there was no pushback from christine lagarde on that front, though she was uncommitted when it comes to the september decision. that remains live for the ecb. jerome powell and the fed reiterating the options to go to again in terms of heightening at the fed, keeping the door open to that prospect as it continues that hawkish measure, as we check in on the ma

we hear from tom mackenzie's very own ai avatar next. is is bloomberg. ♪ >> joining us is a special, weird guest that is in fact my own digital avatar, digital tom. welcome to the show. ai tom: thank you, tom. it is a letter to be on bloomberg tv. i am a ai avatar designed to give information on a wide variety of topix. >> this is all very odd. what exactly are avatars? ai tom: digital avatars powered by generative ai are virtual representatives of individuals that can mimic human behavior and interactions. they work by utilizing ai algorithms to analyze and learn from vast amounts of data, including facial expressions, gestures and speech patterns. this enables them to generate realistic and responsive virtual characters. >> so avatars aren't just gimmicks. what are the real world implications, i'm thinking across the economy and different industries, what is the impact likely to be? ai tom: they can revolutionize industries such as entertainment, gaming and virtual communication. avatars have the power to enhance user experiences, enabl

our very own tom mackenzie is at the event. tom come over to you and good morning.rancine, good morning. a bright and sunny founders form here. i have joe lonsdale, managing partner at 8cv. a cofounder of palantir. quite frankly, a pretty big name in terms of the world attack and investing in entrepreneurship. no, thank you for joining us. let's start with what is exciting you. what is the focus? what is your terms of appetite for opportunity? joe: thanks for having me. it's is great to be here in london. a lot of talent here. obviously, everyone is focusing on ai. we have an industrial revolution that can improve society with healthcare and other areas. we are looking for the top technology cultures in the world working on things that are really possible. your seen stop in defense, bio, a lot of areas these days. tom: talk to us about ai and regulation. jeffrey hinton known as the godfather of a i left google who -- so he could speak more openly about the risks he is worried about, military combined with ai, a irobot. that is the kind of thing palantir might be inv

caroline: tom mackenzie and ai tom mackenzie. let's bring you some headlines.are seeing the treasury may delay three-month and six-month bill sales due to the debt cap. there are still conversations about the debt ceiling and how that will be agreed, passed by the house and waiting for the senate. the u.s. is tentatively planning three-month and six-month bill auctions at june 5. those auction sales could be delayed due to the debt cap. we will bring you any further news on the debt ceiling negotiations. we will talk about unique opportunities and much more. rebecca lynn will be joining us. let's have a look in the world of retail. macy's, shares managing to bounce back from what was an ugly selloff. the numbers came in less than expected. the consumer dials back from the macy's brand. let's have a look at what the ceo told me earlier. he is talking about his role with artificial intelligence, saying when we look at ai more broadly, where our team can build more customers, product discovery, we are on the vanguard to continuing to deploy that. this is bloomberg

that is tom mackenzie.s those conversations with central bank governors, from portugal, and of course president christine lagarde. this is bloomberg. ♪ it'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. the idea that we have saved five million people's lives, it's overwhelming. it's everything. bridgett is here. she has no clue that i'm here. she has no clue who's in the helmet. are you ready? -i'm ready! alright. xfinity rewards creates experiences big and small, and once-in-a-lifetime. >> this is bloomberg markets today i am anna edwards live in london. our market slide managing editor joining us from singapore to take us through all of the market

i'm francine lacqua in london with tom mackenzie. tom: the fed is set to hold rates for the first time in 15 months as inflation continues to cool. treasuries lower but european and u.s. futures are in the red. u.k. economy bounces back in april to pre-pandemic levels, field by growth in services. the boe governor, andrew bailey, concedes inflation is proving tough to beat. shell boosts is dividends as the ceo pivots back to oil and gas, the drivers of last year's record profits. francine: let's look at the futures. people care about the dividends, and look for more companies to do the same, then it is about the fed. do we get a pause? do we get something in july? the million-dollar question. tom: the expectation there will be a pause, and to what extent does that make the bar higher pushing through any hike in july? there is an expectation of 50% for that in july but the consensus is jay powell will pause. will it be a hawkish pause? their language will be in focus. the cpi print came in line with the estimates, dropping to a two yea

i'm francine lacqua in london with, quincy -- tom mackenzie. tom: the fight is not over. traders post bets on a july increased by the fed. rishi sunak goes on an american charm offensive ahead of his meeting with president biden, as he looks to strengthen economic ties with the u.s. lionel messi turns down $400 million a year from the saudis. the argentine football player will join david beckham's football team in her miami. -- inter miami. francine: we go through the economics of what is going on behind football. it is all about the bond yields rising today. stocks are falling. a lot of shift in terms of what we should be expecting with rates. that is filtered through to markets. tom: a reminder from the bank of canada and the rba that there was complacency in markets about the trajectory of rate hikes, and the stickiness of inflation, so you see that selloff across bonds. interestingly in the u.s. session, the leadership being taken by the russell 2000, the nasdaq giving up gains what does that portend? a few seconds into the open, we are weighing up iron ore prices whi

i'm francine lacqua in london with tom mackenzie. tom: china's export engine runs out of steam in may. european stocks open imminently. s.e.c. taking aim at coinbase a day after suing binance. plus, we are live in france for the global conference, and in berlin with newsmakers from both events this hour. francine: let's look at the futures, we are 20 seconds from the market open. a lot of focuses on disappointing chinese data. liberty economics is expecting a stimulus and possible interest rate cut. traders are looking for more government support but across the world. tom: the question is if bad news is good news and it comes to the data out of china, will the bleak data picture pressure officials in beijing? bloomberg economics expects a cut in june. that is feeding into the asian session, reflecting what happened in the u.s. the spanish ibex down 0.1%. what happened in the u.s., you ended in the green with upside but the broadening out of the rally from the bull market for the s&p, but the moves in financials suggest maybe that has

i'm francine in london with tom mackenzie. tom: the pound rises after u.k. core inflation unexpectedly hits a 30 year high. traders fully price and a peak boe rate of 6%. china's you want tumbled past the dollar level -- china's yuan tumbled past the dollar level. jerome powell semiannual report to congress. plus, the eu announces a security plan to avoid overreliance on china, potentially leading to some curbs on trade with beijing. francine: let's look at the futures, stocks are struggling a little bit. we have jay powell speaking later on. dax usurers are unchanged. the ftse 100 is about the inflation print, higher than inspected. we see a repricing on what the boe is expected to do tomorrow. tom: fourth straight month with inflation higher than expected, core inflation above 7.1%. the challenge being laid down for the bank of england amid the concerns about the mortgage market. we look at house builders before we check on gilt and the move on the front end could be pronounced. the ftse 100 down 0.4%. the outstanding index, the most pronounced. down 0.5%.

dani: the ceo and cofounder of google deep mind speaking to tom mackenzie at london tech week.ing up, european leaders meet in paris to discuss security guarantees for ukraine. this is bloomberg. ♪ manual dani: emmanuel macron says he hopes ukraine's counteroffensive will be successful and will lead to talks. the french president met with the leaders to discuss coordinating military assistance to kyiv. let's get over to rhea taddeo. the leaders reiterated their support for ukraine. what about long-term security? >> that is france, germany and poland, strategically important countries for ukraine politically but also geographically. when you look at poland especially, a neighbor country, which has been crucial to the weapon deliveries. there are two takeaways from the dinner yesterday. the french president told reporters he had been on the phone with president zelenskyy. here. to approve -- to confirm that the counteroffensive had started and it could go on for weeks or months. he added that if successful it could provide a path to talks. the other issue is and this is the funda

with tom mackenzie. tom: here are the top stories. the u.s. debt limit bill heads to the senate after winning passages in the house. fed officials say the fomc may keep the policy rate steady this month but more hikes could follow. u.s. equity futures are little changed as europe points higher. plus, on the 25th anniversary of the ecb's founding, we get the eurozone's latest cpi readings amid signs inflation is cooling. francine: we have a trilemma which is when you are looking at the futures, we see a higher start to the day with dax futures gaining .7%. we have manufacturing from china and averted u.s. default. of course, the fed is now pausing for a possible pause in interest-rate hikes. atrial tom: -- a trio of factors that could lift sentiment. europe is set to break three straight days of declines on the back of those factors. the china data was interesting because it emerges from the official data that came out earlier this week. it was a survey of smaller private companies and came in stronger-than-expected. spanish ibex rallying 1%, a

i am tom mackenzie

google's deep mind is an ai research lab and the companies ceo and cofounder telling tom mackenzie earlierhe sees in this space. >> in the next decade i think it could be possible could build these ai tools to up the world's experts and medical researchers make some fast growth in these areas. we've now used it. known to science. on the confrontational system. we like to call science a digital speed i think is going to come to a lot more fields including medicine. guy: tom joins us now. clearly there is a huge opportunity here. clearly there huge risks. the u.k. wants to insert itself into this world and play a big role in regulating what's can happen. the prime minister was down there as well. how does everyone see the balance of risk surveillance. clearly there risks and rewards. what are most people talking about? tom: we talked about the medical and scientific implications and then speaking from a place of real expertise because they've done this incredible thing which is predicting the sequencing and structure of all proteins known to man. that's radically changed things for biologist

my cohost in london, tom mackenzie. guy is in a turkey. this is unbelievable, tom, continued strength in the equity market despite everyone feeling bad. tom: so much handwringing, isn't it there, with this rally. yet we keep going higher, keep going higher. almost consensus you have to be cautious in terms of what is happening with the federals of gas prices increasing in europe. you can pick up on this, but to your point, it is difficult to read the data and take a clear line on this. alix: ism services, price index falling a lot. michael mckee is going to break down these numbers now. what have you got on these numbers? michael: headline number way below what was anticipated. some indexes coming week. ism services, 50.3 coming down from the 1.9. the expectation had been a rise to 52.4. prices paid, 56.2, down from 59.6. prices rising but at a lower rate. employment falls to 49.2 from 50.8, doesn't really match up with what we saw in the labor department';s report on friday. strong growth in services and hiring there. it does suggest that

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♪ >> let's get you set up for the rest of the day, joining us now is bloomberg markets anchor tom mackenzieat what's coming up in the next couple hours. you are never too far from an ai story. >> big focus again today with the restrictions that may be coming through from the u.s. around countries -- companies like nvidia. later we will have someone talking to us about how to invest in these areas, she says evaluations are stretched in these areas but for stock pickers and asset managers there is a real opportunity in her focus is on the equipment maker's rather than the chip designer so we will be talking to eleanor about how she thinks you can position around ai even some valuations look stretched. >> we were just having a conversation with the ceo of luxury resale and says everyone is still selling and paying up for bergen bags, i know you will be looking at watch sales. >> we love the story. this is the bloomberg sub dial watch index monitoring the 50 most traded on the secondary market luxury markets by value. prices have come off by about the most in two years. you can pick up a rolex

i am with tom mackenzie in london, guy johnson is on assignment.eel like this market is really fitting for what you and i were talking about early on. what we talk about? what leading markets at this point? we kind of go nowhere. what is the next catalyst? tom: is this the fizzled that might well center the start of the end. describe this as a bear market rally, or is it, actually signs of a pent-up rotation? we find the next catalyst and markets move higher and broad now. that brings us to the question of the day. is the bullfight still on you? simon, you bring the silver lining to the recession fears. you make the case this morning that may we are over focused on it recession squeeze on equities. this time, it could be different. simon it has been very difficult to navigate the cycle. it's difficult to come up with reasons why equity market should be lower, yet it has gone higher and higher. it makes you start wondering if you missed something. some very long-term signals .2 much better equity behavior. you look at, for instance, this massive ral

tom mackenzie, who covered china for more than a decade, is in london. what do you make of this and the fact that it is not a mandate but a recommendation? tom: there is a fine line when it comes to policies. but it builds off last week, the measures being put in place, puzzles being discussed to shore up the real estate market. now you have more piecemeal efforts to put a floor on the growth from china. less strong than many expected, leaning on the banks to reduce the deposit banks. trying to propped in april and clearly there was concern about the fact that there was not traction going forward in terms of liquidity and the for loans. households, businesses, -- households of pay down their mortgages. is there demand even as it becomes easier to take out a loan and access liquidity? is there a demand to tap into that? lisa: it is stimulus light and positive for growth. but it indicates perhaps the chinese communist party sees a bigger problem than they are letting on. which is it? tom: speaking to a respected strategist, he said it seems to be like a gov

someone with first-hand experience on this story is tom mackenzie who joins us from london. an: this is have to start the weekend. tom: thank you on a friday for joining us. you have lived this in real time. explain property in china. is it the only outlet for the middle class to provide for a future? >> the pendulum has swung. when i arrived in 2016 in china, there were banners being put up with houses for living in, not for speculating because the run-up in property prices was red-hot. they were putting in place restrictions to ensure you couldn't buy multiple properties which historically something people have done. the majority of household income is stored in property. because of the difficulty of investing in equity markets, it accounts for about 20% of chinese gdp. the announcement today around additional measures to support the beleaguered property sector speak to the urgency so they are allowing people to buy more properties in certain cities and easing some of the restrictions and making it low in terms of the down payment and it's up to the commissioner fees that t