let's now get to vonnie quinn. nal monetary fund will cut its global economic growth outlook substantially in its next update, as finance chiefs grapple with a shrieking list of options to address worsening risks. the managing director told bloomberg governments need to seriously target inflation, but not in a way that threatens the work of central banks. >> we do need to tackle seriously inflation, meaning monetary policy is tightening. but fiscal policy could unintentionally go the other way. vonnie: the imf also says debt restructuring talks with sri lanka will proceed quickly once a new government is in place. the fund is awaiting the appointment of new officials including the finance minister. the country is facing a power vacuum in government following the president's resignation after months of protests. the former pakistani prime minister imran khan is leading a key vote in their most populous -- it's setting up a possible defeat for the government. a victory for him will give the former leader renewed meant

haidi: let's go over to vonnie quinn with the first word headlines. vonnie: new covid cases in china continue to climb with outbreaks in some region whitening. this situation remains severe in shanghai. the country reported 580 local cases, the highest since may. and a city wide with all non-essential businesses through july 22. almost all businesses, including casinos have been shut since july 11. japan has notched up a record number of covid cases. more than 110 thousand cases were reported saturday come up passing the previous highs in february. severe illness has remained at relatively low levels. the prime minister told a news conference he was not planning a return to restrictions or restricting people's movements. the imf says -- with sri lanka will proceed once a new government is in place. the fund is awaiting the appointment of new officials, including a finance minister. the country is facing a power vacuum after the president's resignation following months of protests. canada's finance minister says the economy is strong avenue handle the i

but us get to vonnie quinn -- let us get to vonnie quinn. >> china is getting prepared for nancy pelosi's possible visit to taiwan. they have not ruled out plans to visit taiwan, no final decision has been made. it could come days after an expected call between president biden and xi jinping. china is forcing the biggest companies to operate within a closed loop for seven days as the southern manufacturing hub bottles a covid outbreak. operations are limited to employees living within a closed loop or bubble, allowing no contact with other people. tougher stances on china in a battle to become the next uk prime minister. one says china is the largest threat to britain, proposing measures to maintain -- lesson china's influence. >> we should be cracking down on those types of companies. we should be limiting the amount of technology exports we do to authoritarian regimes. >> global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. heidi: still ahead, the anticipated rate hike from the fed is deepening anxiety o

i am vonnie quinn. this is bloomberg.nne: coming up, a look at the future of news in asia-pacific and where opportunities are for organizations to innovate the age of social media. we discussed the results of a survey. this is bloomberg. ♪ yvonne: news is what we do. and the journalism that goes into it. it is a business that has changed significantly in the last few decades and continues to evolve. and with this in mind, study was commissioned on the sustainability of the news media industry and i believe it is the first survey of its kind. david: joining us now to discuss the findings of the study is byron. alongside naka kondo. byron, let me start with you. we have laid out the broad russian behind the prop -- we have laid out the broad rationale behind the project. byron: at the society of publishers in asia, our objective is to promote free speech in the media industry so we partnered with google and the economist where our aim was to take a first survey of the media industry across the asia-pacific region to underst

let's get you to vonnie quinn with the first world had -- first word headlines. bonnie: -- vonnie: conservative party members will choose between liz truss and rishi sunak. liz truss remains publicly loyal to boris johnson. the winner will be announced september 5. italy's government is close to collapse after three key parties withdrew. that decision could plunge the country into months of political turmoil just as economic warning sign start to flash. the former epd chief is expected to remind -- resigned thursday. emergency elections could be held early october. sri lankan lawmakers elected former prime minister as president. he was backed by the former president and remain deeply unpopular among protesters who called for his resignation. the acting president last week imposed a state of emergency across the country. hong kong will no longer force people with covid subvariants to isolate igo -- government run facilities. this is the latest policy change by john lee's government with travel quarantine reductions also being considered. patients have to meet certa

i am vonnie quinn.rg. >> they were supposed to blaze a trail to a more innovative and technologically advanced economy. 50 million people were estimated to be jobless. many more are lowering ambition. as we understand, it is the covid hit to the labor market. there is the regulatory crackdown on the private sector but how much of this is also a cultural movement or shift? >> there are short-term factors with this spike in the use of employment. the impact of lockdown has been huge because certain sectors that are more labor intensive have more effect but there is also long-term structural courses that led the youth unemployment rates to start rallying even before the pandemic and one of them being the fact that there has been a huge expansion in higher education and really it has been an enormous increase in the number of graduates. that is probably phrasing a mismatch in the labor market. >> we have heard the tempting line flat, china doing the bare minimum here. >> this year, there has been even more

let's have a look at first word news as we head to new york to join vonnie quinn. ie: the biden administration moving forward a a bill. lloyd austin says the chip act is the only way to reduce reliance on foreign made semi conductors. the bill has bipartisan support. the senate minority leader mitch mcconnell is blocking it while democrats negotiate a spending package. singapore's central bank is unexpectedly tightening policy as it seeks to: inflation. they use the foreign exchange as a policy tool. it said in a statement it is re-centering its policy along the currency to appreciate further against peers, that should help imported cost pressures. bank of canada is surprising us with a basis point, the biggest since 1998. it pushes the policy rate to 2.5%. economists were expecting a 75 basis point increase. two years sovereign bond yields jumped. governor ted has warned more hikes are on the way. >> frontloading interest rate increases, trying to avoid the need for higher interest rates down the road. frontloading tightening cycles tend to be followed by softer la

the first word news now with vonnie quinn in new york. ie: new covid cases in china continue to climb, although the numbers for sunday were lower in many areas than the day before. shanghai is rolling out mass testing in nine districts. macau is extending a citywide shutdown with all nonessential businesses staying enclosed through july 22. it is struggling to contain its worst ever covid outbreak. a u.s. energy on voice as he is confident that producers will increase oil output, after president biden's visits to saudi arabia. he told cbs that he is confident we will see more steps in the coming weeks. he also elected golf -- gulf producers like the u.a.e.. christine freeland says the bank of canada is acting forcefully. she says even with impressions too high, it is reasonable to expect a soft landing. >> inflation is certainly elevated, and i would say is our biggest concern right now, but the bank of canada has been acting forcefully, and i think it is entirely reasonable to hope for a soft landing for canada. vonnie: former pakistani p

on vonnie quinn. this is bloomberg. david: just ahead on the show, we will be looking at the fast-growing digital payments industry within this part of the world here with pc q pc p. yvonne: up next, the latest on the evergrande as investors await the details on the restructuring plan. this is bloomberg. ♪ david: very strong rally across these property counters. up about 3% takes us to the big story this week. evergrande is due to unveil this restructuring plan by the end of this week. that comes as the debt crisis in china spreads to more builders. yvonne: let's bring in our chief north asia responded. what are we expect this week -- what are we expecting this week? >> we have been covering this for so many months. evergrande went from this liquidity crunch and on the aftermath of the crackdown on overleveraged in the property sector to what has become not just a property crisis in china but a societal one as people are holding off on paying their mortgages. they are angry about all these unresolved issues. that is add

let's turn to vonnie quinn with first word headlines. lle: -- vonnie: president biden called climate change an existential threat. revisions include expanding wind power in allocating emergency funding for infrastructure. biden held back after carrying a formal climate emergency and it would have unlocked broad new powers by restricting fossil fuels. president biden: let me be clear, climate change is an emergency and in the coming weeks i will use the power i have as president to turn these words into formal official government actions through executive orders and regulatory powers that are president processes -- possesses. vonnie: bloomberg has learned the first war crime cases against russians could go before the international criminal court and the hake this year. a multinational investigative team has been collecting evidence. sources say the international -- is in talks with ukraine to deliver one russian prisoner of war to the. hong kong will no longer force people with covid-19 subvariants isolate at government run facilities. off

i'm vonnie quinn. this is bloomberg.lix loses almost one million subscribers but says things could be worse. the latest results end up be, later in the show. but next, gary gensler about the looming risks of 200 chinese companies being delisted from u.s. exchanges. this is bloomberg. ♪ haidi: this is what we are seeing when it comes to the early part of the session. netflix clearing expectations, the upside of 1.6%. the kospi extending games to 1.5%. we see australia stocks up. there is growing speculation perhaps the worst of the selloff with equities may be over. qe stocks are up by just about 1%. china remains the other unknown when it comes to the economic slowdown. let's get some more on what is potentially in-store. let's bring in and out. what are we expecting? reporter: because the central bank did not move its money market rates, the expectation is the bank will move there. thanks typically follow pboc for guidance. the five-year rate is for mortgages. neither are expected to be lower. we are seeing pickup in ac

let's get to vonnie quinn to get you caught up with the rest of our first word headlines. nnie: thank you and good morning. bloomberg has been told china may allow homeowners to hold mortgage payments on a stalled projects without incurring penalties. the proposal still requires approval from chinese leaders. it is part of a broader push to stabilize and inject confidence into the housing market, when allowing time for developers to complete projects. russia's gazprom has declared force majeure on at least three european gas buyers. that means it will not fulfill its supply obligations due to unforeseen circumstances. gazprom had already been curbing supplies to europe. u.s. treasury secretary janet yellen has called on the so-called trusted u.s. allies to help fix supply chain issues. speaking in south korea, she called for u.s. partners to deepen relationships and diversify supply chains, to lower risks to their economies. she singled out to china, warning that beijing could use its market position to exercise geopolitical leverage. the field of potential candidates to re

let's get you to vonnie quinn with the first word headlines. vonnie: bloomberg has learned that russia's gazprom has declared force majeure on at least three. . european guest buyers. that means it could not fulfill its supply of negations unforeseen circumstances. gazprom had already been curbing supplies to europe and had closed its main pipeline for maintenance. their race to replace boris johnson is narrowing. rishi sunak and anymore don't retained the top two places in -- rishi sunak and penny mordaunt retained the top two places in the latest conservative party voting. more ballots are scheduled for tuesday and wednesday, after which just two contenders will remain. johnson returned to parliament monday for one last largely time symbolic confidence vote. as prime minister for a symbolic confidence vote. the acting president of sri lanka is among the top contenders for the job of president, along with another leader of the main opposition. the presidency has been vacant since gotabaya rajapaksa fled to singapore and resigned last week. . u.

yvonne: let's get to vonnie quinn in new york. vonnie: bloomberg sources say president biden will speak with chinese leaders xi jinping thursday. the call comes amid fresh tensions over taiwan and the possibility of a visit to the island by nancy pelosi in early august. beijing warrant it will take quote, resolute and strong measures against any visit. the conversational be the first between the two leaders since march. the u.s. justice department is reportedly investigating former president trump's actions as part of its criminal probe of efforts to overturn the 2020 election results. prosecutors have spent hours questioning witnesses before a grand jury. the report says some of the questions focused directly on the extent of trump's involvement in the fake elector efforts led by his lawyers. bangladesh has become the latest salvation -- south asian nation to ask for the imf to give it a loan. the government has written to the imf asking for $4.5 billion in health. bangladesh only has enough to cover about four months of imports.

let's now get to vonnie quinn with the first word headlines. vonnie: the bank of canada surprised with a 100 basis point rate hike, the most since 1998. it pushes the central bank's policy rate to 2.5%. economists were expecting a 75 basis point increase. the canadian dollar rallied on the move. the governor warned that more hikes are on the way. >> by frontloading interest rate increases now we are trying to avoid the need for even higher interest rates down the road. frontloading tightening cycles tend to be followed by softer landings. this argues for getting our policy rate quickly to the top end or slightly above the neutral range. vonnie: president biden says the u.s. would use force as a last resort to prevent iran from developing nuclear weapons. during his visit to israel and the middle east, he sought to calm fears over a potential revival of the nuclear deal with tehran. his tour also takes him to saudi arabia and is focused on improving ties and securing cheaper oil supplies. sri lankan protesters have stormed the prime minister's of

yvonne: let's get to vonnie quinn with the first word news. vonnie: let's start with the european central bank may go big when it raises rates to stay for the first time in more than a decade. policymakers may boost rates by double the quarter-point the outlined last month. eurozone inflation surged to an all-time high of 8.6%. money markets see in almost 50% chance. gazprom is poised to restart gas exports to europe thursday at reduced capacity. shipments will resume when maintenance ends. however they will remain below normal after the russian gas giant claimed force majeure. australian is treasure announced a wide-ranging review of the reserve bank a three-member panel will the look at its policy tools and governance and culture amid questions over its forecasts and interest rate decisions. the rba was criticized for maintaining a dovish tone when many peers were hiking rates, while governor phil lowe admitted some forecasts were quote, embarrassing. chile's finance minister has moved to region store -- has moved to reassure investors. in an

i am vonnie quinn. this is bloomberg.di: let's get a look at asian markets as we set up for the trading session. 75 basis points, another jumbo hike could be on the table. we're watching tech stocks as we saw the big jump from about 4% for the nasdaq 100. watching asian currencies, dollar-yen, seeing weakness across the u.s. dollar. we saw the short-term bumpare u. shery: the bloomberg commodity index has been gaining ground. gains of 20%. gold is extending gains. we are continuing to watch crude prices heading towards $100 per barrel, rising after the government report showing demand is rising globally. we have seen softening in some parts of the commodity space like metals, some crops, that is someplace where the fed can get comfort. haidi: when it comes to the impact on commodities, our next guest joins us. so much debate over semantics. some other global economies as well. what is the broader outlook? taking into account we still have supply chain issues. guest: good to be here. it's a mixed bag. in the commodity spac

i'm vonnie quinn, this is bloomberg. david: let's get the latest on this mortgage boycott. spreading too many projects in most cities. we have visualized that for you closer to the eastern part of china and the central. yvonne: it continues to spread. this might have been a surprise for xi jinping as he embarked on the three red lines that something that was not a consequence, the social stability backer, which seems like policymakers are making a priority leading up to the party congress. this is trapping china in a market paradox, how bad could this get, matthew? >> there are limits to how bad it could get. as worrying as the really fast spread of these boycotts is getting, there is a ceiling on how many, or how much money can be affected by this. there have been various estimates. one put it at 2 trillion yuan, the total number of mortgages tied to projects where construction has been halted. that is only about 5% of china's total outstanding mortgages. that is assuming, that puts a ceiling on it, assuming that you do not see a total loss on all of those, which of course

i'm vonnie quinn. take a look at when it comes to earnings and the chipmakers were in focus during the u.s. session with the likes of qualcomm talking about the forecast -- lackluster. all the slowdowns seem to be reemerging for some of the semi conductor players, so qualcomm was lower by about 3.7%. you talk about the non-phone chip sales surge. but then the 2022 smartphone sales forecast dropped. there seems to be a lot of questions about consumer demand moving forward. david: absolutely. one of our guests yesterday, we asked her about nvidia, she said when you look at gaming and the hardware, that is going to start rolling over also. it takes us into the samsung story, which is a company that frankly, they do so many things and dominate so many parts of this market -- we are starting things off from a purely valuation perspective. going into this earnings season with the valuation at about nine times forward, 9.3. that probably is still cheap, but not as cheap given the earnings and the guidance out

i vonnie quinn, this is bloomberg. david: just ahead in the show we will give you an update on the ongoing property crisis. what they are doing to restore confidence with these mortgage boycotts. >> analysis of the politics of inflation and how it will insist much longer, talking with blackrock next. this is bloomberg. ♪ >> i love it. saying it straight. there is an ongoing debate with j.p. morgan and morgan stanley. basically have these 2 wall st angst -- thanks calling for the time -- banks calling for the timing of the pivot. one saying inflation is coming, -- it is different this time around if you're waiting and getting ahead of this attentional pause by the fed, the problem this time as the pauses likely to come too late. david: talking to thomas, head of -- are you on team pivot, or team pause or we continue on this route? >> i knew you were going to ask me that. good morning, for us i think the issue is the fed and ecb are very concerned with inflation in the short-term and the longer-term. that basically means

let's turn to vonnie quinn. the richmond fed president keeping options open and how big the fomc should go when it raises interest rates. he says the right policy is to keep inflation under control. >> we are engaged in a challenging exercise. trying to bring inflation under control but without trying to cool it so much, the right policy is to get inflation under control. >> janet yellen is showing no willingness to support a currency intervention to support the yen. after meeting with the japanese finance minister, she said they did not discuss intervention and g7 nations should have market determined exchange rates. opec oil market outlook suggests no relief for squeeze consumers. to fill the gap, opec would need to hike production, but members are falling far behind due to underinvestment. president biden is urging middle east producers to open the taps. china has criticized taiwan's decision to send their vice president to mourn shinzo abe. a spokesman abused taipei of political manipulation. beijing's respon

let's get the vonnie quinn with the first word headlines. vonnie: italy will hold an early election on september 25 after mario draghi resigned. the president officially called the vote after dissolving parliament. polls suggest that the coalition of the brothers of italy may have the majority. the economy faces months of political uncertainty. russia has resumed sending out to europe its biggest pipeline, but uncertainty remains. it returns to 40% after a ten-day maintenance time period for now, the restart eases europe's fears that russia's president will keep the pipeline shut. but it remains held up in transit and germany. tokyo has recorded its highest number of covid cases since the pandemic began. the city recorded nearly 32,000 new infections on thursday, topping the previous record set in february. covid's resurgence has been driven by the spread of a more infectious variant as japan begins opening to tourists and residents as they prepare for summer holiday travels. china's banking regulator vowed to ensure that developers finish bu

on vonnie quinn. this is bloomberg. david: let's pick up on that last story vonnie was talking about. the ecb delivered a 50 basis point hike. mark, let's talk about the ecb mark -- on top of the 50 we got. >> i think they're going to struggle to get the rest of those hikes in. italy is giving them a headache. the timing is just amazing. to have the entire italian government fold on the first ecb height for several years. you can just see from the reaction in the bond market, although the ecb talked about this that they have to try to stabilize the bond market, italian bonds were lower at the end of the day, even though german bonds were a bit higher. the euro was relatively steady, it did not hold onto the gains they had. you can tell traders are skeptical, they are not sure the ecb can hold it together in the bond market. but with the italian government being dissolved, the move from the inside is going to help them to get the bond market calmed down. the rate, when you see that the european economies are slowing fast,

i am vonnie quinn. this is bloomberg.ing a broad market rally across asia right now with materials and energy leading gains. looking about the wti, headed towards $100 a barrel. brent is already at the $108 level. we are seeing a second contraction here in the u.s., perhaps signaling a recession. we will have to see if the nber decides that it is. but so far the bad economic news is translating to good news for the markets, perhaps traders peering back expectations of a rate hike. 15% of asia-pacific companies have reported, the biggest positive earnings surprise from consumer discretionary. let's get more from the markets with the chief rates correspondent for asia and mliv contributor, garfield reynolds. what are you watching for sustained direction in the markets? we were skeptical about the knee-jerk rally that we saw after the fed, but we continue to see gains across the board. garfield: yes, in the short-term there is the potential that equities might pull back a little bit. they have had such a strong month and a s

shery: let's turn to vonnie quinn with the first word headlines. vonnie: president joe biden has tested positive for covid for a second consecutive day as he deals with a rebound infection. the president will extend isolation measures just three days after he was cleared of the virus. minneapolis fed president neel kashkari says the fomc is committed to bringing inflation back down to 3%. in an interview with cbs company admitted prices are continuing to rise beyond the fed's expectations and wages are not keeping up. he said the economy is far from where the central bank would like it to be. >> we are going to do everything we can to try to avoid a recession but we are committed to bringing inflation down and we will do what we need to do. we are a long way away from achieving an economy back at 2% inflation and that's where we need to get to. vonnie: alibaba has been added to the growing roster that could face the listing from the new york stock exchange. china and hong kong refused reviews, citing confidentially look -- confidentiality laws and n

i am vonnie quinn, this is bloomberg charlie: -- this is bloomberg. >> australia is on guard. but next, discussing the increased likelihood of over session as we pray for this week's fed meaning and corporate earnings. this is bloomberg. ♪ >> i fully support another 75 basis point increase however my base case for july depends on incoming data. >> there is no reason to say that we need a smaller rate increase than last time. nothing moved in that direction. >> you are seeing the fed move quit aggressively. request the key thing that the fed worries about his inflation expectations becoming unanchored. >> whether they go to 50's or 75's, there will be a situation where we step on inflation. >> i think the fed will have to hold here as long as the market prices in cuts in early 2023. >> they have a tough road ahead of them. they can basically raise rates and change the balance sheet. >> the fed rate decision dominating global markets. let's look at the week ahead. that is our big focus. jerome powell has said that this would be a big mistake than pushing the economy into a reces

i'm vonnie quinn. this is bloomberg. haidi: still ahead, our guest says -- apple and amazon's latest results are providing reassurance to jittery investors. shery: up next, brazil is looking ahead to greater growth prospects. this is bloomberg. ♪ >> brazil recently raised its gdp growth estimates for the year and downgraded inflation expectations. we are joined by brazil's economy minister. great to have you. i have to start with comments that you made back in february. you said that the federal reserve was sleeping at the wheel on inflation and you called it right, they have been raising rates aggressively since then. are you concerned that we should see -- we could see a u.s. recession taking down the world economy and brazil with it? >> the trap of synchronized recovery was already evident to us. we have the war in ukraine hitting food and energy. these are adverse supply shocks that call for stagflation. it's a very tough environment ahead. also the end of labor arbitrage something that came -- kept inflation under c

i'm vonnie quinn. this is bloomberg. shery: still ahead, the mattel chairman gives us his outlook for the rest of the year. haidi: the chief market strategist tells us how she is allocating some of the firms for $.5 billion and assets under management. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >> i don't think it has peaked yet. our team basically says the fed will raise rates and the research team has the year end recession which they made the call on a few weeks ago. it is a slight recession and it's not accompanied by high unemployment. it's more the impact of the fed raising rates than slowing econo

i am vonnie quinn. this is bloomberg. yvonne?a blockbuster legal battle is form -- formally underway. the richest person changed his mind, trash to the company and walked away. >> let's get some more flesh on all of this. what is the twitter suit asking them to do? click they want the judge to bar -- >> they want the judge to bar mu sk from doing all this. you can just commit to a 70 page negotiation you and walk away. those are the harsh words the suit comes down singing with. they want to prove that this can't be the case and many legal scholars will tell you that the law favors twitter. there is a 60% chance they will get an order of force to make him go through with this. it is interesting to note that the stock was actually up a bit as the suit was filed. it plunged the day before. it will be interesting to see how the stock lays out. they say that musk has caused irreparable harm because he shifted any losses on his part from his tablet -- tesla shares plummeting over onto twitter shareholders. >> just like the drama that u

i am vonnie quinn. this is bloomberg. david: just ahead here on our show, the prospect of the first face-to-face meeting between the two presidents, president joe biden and president xi, amid rising risks over taiwan. we will talk about the complexities of this relationship. yvonne:, not keen on policy, while suggesting annual growth targets. the country's recovery is not yet on strong footing with property investments, also drag on growth. this is bloomberg. ♪ david: welcome back to the show. couple of things as you look at the currency markets. he had the meeting yesterday talking about the best outcomes as far as growth is concerned and the property market. stability is key because the cost of not doing anything is well, hopefully we don't get to that point. this is property sales year-to-date, june, you see the right side of your screen. we are nowhere near levels of 2021. we are back to low -- to levels of 2020. we start pickup from april. yvonne: whether that lasts is a key question, now that we have this mortgage c

let's get you to vonnie quinn with the first word headlines. vonnie: president joe biden has tested positive for coed for a second consecutive day as he continues to deal with a rebound infection. the president position says he will extend isolation measures three days after he was cleared of the virus. biden took a five day paxlovid treatment course. neel kashkari says the fomc is committed to bringing inflation down to 2%. in an interview, he admitted prices are continuing to rise beyond the feds expect tatian's and wages are not keeping up. he says the economy is far from where the central bank would like it to be. >> we are going to do everything we can to avoid a recession but we are committed to bringing inflation down. we are a long way away from achieving an economy that is back at 2% inflation. vonnie: turkey says a ship of ukrainian grain may depart the country as soon monday. it would be the first shipment since an agreement was reached with russia to allow save transit. ukraine says it is close to restarting shipments, though it is l

i am vonnie quinn. this is bloomberg.: let's take a look at the set up when it comes to the asian session. somewhat more muted, we are seeing u.s. futures flying after a big boost in the after hours on the back of alphabet and guidance out of microsoft. watching asia tech for some outperformance. nikki futures trading higher by over half a percent. tepid start in sydney. down for tenths of 1%. we are expecting a big cpi prints. watching dollar-yen given these changing tensions, kiwi stocks looking flat. we saw the aussie dollar climbing to the highest in over a month and those gains could be capped. part ofg from the revised downward from institutions like the imf. shery: we are awaiting the growth forecast downgrade, now we finally have it. coming without warning that the world economy could be teetering on the edge of recession. the fund has cut its outlook for this year and next. we has to chief economist about the risks they are seeing. guest: it's a significant downside risk. we forecast growth was going to slow down

let us get to vonnie quinn. >> china says it is getting seriously prepared for how nancy pelosi's visit -- for nancy pelosi's visit to taiwan. the trip to asia could come days after an expected call between president biden and xi jinping. china is forcing some of the biggest companies to operate within a closed loop for seven days as the manufacturing hub battles a covid outbreak. operations are limited to employees living within a closed loop or bubble, allowing a little to no contact with other people. president biden's doctor says his covid-19 symptoms have almost completely resolved. the president is expecting some residual nasal congestion and minimal hoarseness. he has tested positive for the virus last week. he was treated with paxlovid. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. heidi: we will talk about where bitcoin is headed, as it lingers near the $22,000 level. katie stockton joins us. shery: i global advisor sees a bigger risk event of the fed meeting more tech earnings. this is b

orfield reynolds, let us get over to vonnie quinn with a the first word headlines. >> china is ramping up testing. 22 million people in shanghai are going through another round of covid testing. authorities are focused on cities who are under lockdown. macau is aiming to reduce a business and social activities as the city's case is easy slightly. the european central bank may go big, for the first time in more than a decade. policymakers may boost rates. inflation has surge to an all-time high. 50% chance of a half-point hike this week from 20% on monday. chile's attempt to prop up the pace out, mario stressed that the copper industry would remain competitive despite plans to raise taxes. the new government would protect the reputation for fiscal discipline. once we are approaching this with an openview -- >> we are approaching this with an open view. also the security of the environment for the new investments in mind. that are necessary for the country and we have a competitive mining ministry -- industry and we do not want to harm that. >> cryptocurrency sector is a full-fledged cre

now to vonnie quinn. >> joe manchin and chuck schumer have struck a deal on a tax and energy policy bill, breaking a deadlock to enact major parts of president biden's agenda. it would raise an estimated 739 billion dollars in revenue and reduce revenues. it would provide for energy and climate change. a speech by xi jinping in which he says china is facing more risk than ever before, domestically and internationally. he assist the nation is entering a new phase and offers strategic opportunities and increasingly complicated problems. he praised the communist party's response regarding the taiwan strait. australia is slashing its gdp outlook, blaming inflation and global risks. a treasurer will outline the new target of 3% for the fiscal year. the economy is still growing but challenges are too, that includes inflation which is at a two decade height. restarting after two years, as china eases parts of the pandemic regime. china will resume weekly flights from narita in august. fcc chairman says u.s. and chinese officials must reached an agreement to avoid delisting chinese companies fro

shery: let us get over to vonnie quinn with the first word headlines. >> the world health organization is urging health-care systems to take steps to curve covid-19 transmissions are made a new wave of infections. the directorate general warned that some variants of the omicron strain are causing higher case numbers and deaths. in england, an estimated 2.1 million people have have been infected. janet yellen is showing no market intervention to support the yen. yellen said the two did not discuss intervention and g-7 nations should have market determined exchange rates. the last time two intervened was in 1998. the market outlook suggests no relief for consumers with demand growth set to surpass applied by one million barrels a day. opec would need to significantly hike production. members are falling behind due to underinvestment and political instability. president biden is urging the producers to open the taps. global news 24 hours a day, on-air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. haidi: why the euro is to fall furthe

i'm vonnie quinn. this is bloomberg. haidi: coming up next, as inflation in the u.s. gets hotter, our next guest tells us how the increasing negative sentiment of american consumers is becoming a major risk. erin gibbs joins us next. this is bloomberg. ♪ >> this inflation print is a problem. >> there's no slowdown. >> domestic price pressures are still quite strong. >> this is going to amp up pressure on policymakers. >> this keeps pressure on the fed to keep going. >> it needs to keep moving at a rapid clip. >> the fed probably will go 75 basis points. >> it will be very difficult to get off 75 basis point hikes. >> this morning's report seems to solidify that 75 basis point. >> they should be careful here because this is actually turning. >> these rate rises are coming as growth is slowing. >> they cannot respond to slowing growth. we know growth is slowing but they will keep going. >> that is a real concern. >> tightening policy into slowing growth is not a good combo for risk assets. >> they can slow the pace but they are not anywhere close to stopping. shery: blo