they are a few ahead of us and get the bank of england -- yet the bank of england is pushing against that negative and makes it difficult to figure out what his price tag. when you put the factors on the table, it is going to go slower. tom: i have more questions. you have to go. but please come back soon, if you can. these are some abrupt calls from shahab jalinoos. a different landscape for all of us. investors, including jerome powell with the kind of moves that credit suisse is talking about. mr. bullard with headlines coming up fast and furious. emails, tom, forget about the mcdonald's burger in switzerland. he talks about the bank of japan and the impact of the new carry-on key burger -- teriyaki burger and what it means to the whole domestic system of japan. kailey: it is not just the burger. was i 20, maybe 19? japan. i just want mcdonald's and i am greeted with a huge coaster of chocolate covered french fries. it is a sang. would you -- it is a thing. would you ever put those two things together? tom: no. lisa, we have bombs on the move. i am sorry. we have a higher yield re

the bank of england warns inflation could rise to 11% this

the hike at 75 basis points, 25 and the bank of england. more to come. tom: we are not discussing stories of import that are pushed off the radar by the central bank derby. that ecb story from jenna rando out an hour ago from the single, oddest, desperate bond story i have ever seen. ecb, lagarde in search of an anti-crisis tool. jonathan: they want to somehow contain italian bond yields and increase interest rates, tightening financial conditions. it is going to be really tough. tom: you mentioned the shocks, the gas, the food, tanisha with elements of a revolution. tunisia shut down this morning. lisa: you had that fire at the export facility from the united states, the exported gas to europe which caused a spike in natural gas. all of these highlighting the real worry in yesterday's meeting with jay powell, where he was talking about chasing gas prices, chasing oil prices. even though this is not within their control, it is in the headline number. headline number creates expectations, they have to fight that. tom: even in boone england, i mean this wi

the swiss swiss national bank, now bank of england is set to announce its latest policy decision within minu minutes. when "squawk box" comes right back new projects means new project managers. you need to hire. i need indeed. indeed you do. when you sponsor a job, you immediately get your shortlist of quality candidates, whose resumes on indeed match your job criteria. visit indeed.com/hire and get started today. ♪ ♪ wow, we're crunching tons of polygons here! what's going on? where's regina? hi, i'm ladonna. i invest in invesco qqq, a fund that gives me access to the nasdaq-100 innovations, like real time cgi. okay... yeah... oh. don't worry i got it! become an agent of innovation with invesco qqq >>> good morning the fed stepping on the gas to outrace inflation, rolling out its biggest increase in years. investors at first cheering the move, but now futures are down sharply as wall street eyes a likely recession jobless claims and housing start numbers, the second hour of "squawk box" begins right now. >>> good morning, and welcome back to "squawk box" here on cnbc, live from the

the government says it and the bank of england will get inflation under control, but in stevenage at this haulage company, the perfect storm of rising price pressures just doesn't seem to stop. we only run four trucks. 18 months ago, we were perhaps paying £1,800 a week to fuel them, now it's £3,500 a week, which is a massive increase. also, we have to pay drivers more to retain them because they'll go elsewhere. a really big impact, which we're having to pass on to customers and hope we retain them. rising prices remain in the pipeline in an industry who are under pressure notjust to help workers with the cost of living, but to find workers to run their businesses. faisal islam, bbc news. rail passengers face another day of chaos tomorrow, after talks between industry bosses and the rmt union broke down. the head of the rmt accused the transport secretary grant shapps of "wrecking negotiations" in the dispute over pay, working conditions and proposed modernisation. but network rail claimed the union had walked away from talks. the rail industry has asked passengers to travel only

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of england's communication policies. they want to basically have the market front run what they're going to do. they want to be as transparent as they can with owning a little bit of optionality as well during that panel we just heard. they are happy that you see higher interest rates being priced for the future. what is interesting, though, is you have seen today during the speech that you have seen the yield curve start to flatten just a little bit more, and part of that is in anticipation that central banks are going to continue to be hawkish. but the economy will slow in the future. that is why you have very flat yield curves now, why the yield curve in europe has flattened significantly, and the u.s. yield curve is likely to invert, because at some point even if we don't go into a technical recession will have to have basic natural -- hat -- have a substantial slowdown. alix: it feels like the central bankers' reaction is to ignore it. he basically had jay powell saying, the yield curve is part of our input, so as t

the bank of england has warned inflation will reach 11% later this year. our business correspondent emma simpson reports on how the rising cost of living is affecting how we all shop. if i haven't got the money, i can't eat. you see lots of things that are on cheap, we buy them and freeze them. definitely shopping around, looking for what's cheaper and where. - it's here in the supermarket aisles you get a taste of how the rising cost of living is starting to bite. we buy less and we buy cheaper products, unfortunately. we can't usually afford to buy all the named product stuff so we have to go and buy the essential stuff. if they're not going to give us the wage rises, we can't compete with inflation, we're suffering. at britain's third—biggest grocer, they know that their customers are feeling the pain, too. people are trading back, they're worried about spending, they've got a limit that they set out to, they say £30 is my limit and if they gets more than £30, that's it, stop. it's the same with petrol. what we're seeing is massive change in behavio

s. fed has done the bank of england, it doesn't mean they've announced these hikes right. months ago, there's been almost a reluctance by the e. c. b to do that until now. why is there? right, i mean people are complaining when that the fed waited too long when they announce their hike months ago. obviously the e. c. b s. had critics about this as well. economists as coming out responding today, saying that they're not doing enough. and even the e. c. b themselves said that even with this plan, they expect inflation to be above target in at 2024. so, but legard has been very adamant about highland differences between the u. s. economy and the euro area. i mean the labor market as a major one, the, the, the employment is not nearly as tight in the euro area as it is in the u. s. and this is where we started getting this wage spiral situation they're talking about. but she did say to day they are seeing wages going up in the area euro area. they don't yet see that as a major factor knocking on to prices. but it's something that they're definitely watching with concerned. but when you lo

federal reserve, the bank of england and swiss national bank all increase their key interest rates and the european central bank has indicated it will move in a similar direction in july targeting inflation as the central banks main goal. and it helps to maintain price stability, but it's not been working. we've seen protests around the world over the higher cost of food and services in the past week. a little inflation can be a good thing if everyone salary rises at the same pace as prices. but they haven't been so let's look at why inflation has been going up around the world. recently. they're all prices which have slumped at the start of the pandemic. but demand has rocketed since the war and ukraine has effected this to be crude had an 8 year high . and of course, petrol is more expensive. the cost of everyday items has risen since 2020. many people had more disposable income to spend on household goods during locked downs. firms of struggle to keep up with demands. and let's not forget the us china trade war, which drove up tariffs. there are shipping firms which have been on bus

economy in terms of the impact. bank of canada, bank of england. if we look at that from the perspective, there is more a management of the slowdown in regression. manus: i know you like currency. doomsday scenario. don't use my words. those two currencies more pronounced in a goal slowdown. saed: if we look at them, the correlation of assets. what we're looking at is a more hawkish fed. i think we're looking at adjustment, prolonged aggression it -- aggression which will lead to a more negative and hawkish fed. dani: great to have you on the program, saed abukarsh, from ark capital. coming up, trade commissioner tells bloomberg that the latest you sanctions hit the heart of putin's war machine. we get more of the interview, next. this is bloomberg. ♪ >> we need to continue to support ukraine. it is critical, not just a short term. we need to put pressure on russia. it is an important fact. these are major steps like the oil embargo. not fully like it was proposed. 90% less imports of russian oil. it is always a financial package. we need to cont

that's the words from the governor of the bank of england, andrew bailey. he was speaking at a european central bank conference in sintra, portugal. so, is he right? let's askjane foley, head of fx strategy, rabobank. good morning, jan. andrew bailey has been rubbing shoulders withjerome powell, christine lagarde, others central bankers in portugal scratching their heads to figure out how to solve the problem of inflation. in the uk we seem to have it harder than others. why is that and is he correct in what he is saying? i think he probably is. unfortunately in the uk we have had the worst of both worlds, for about a year or so we have had very elevated natural gas prices in europe, well before the war. the war accentuated that. we also had a tight labour market in the uk which takes an element of inflation they have been suffering in america. we have had a very tight labour market with second order, as we like to say, second order price fracture, domestically generated wage rises in addition to the energy prices. the pick of what they've had in the us and

of england? just getting a couple of lines from the ecb, comments on the statement following an emergency meeting. "the pendant has left lasting vulnerabilities in the euro zone." that is the first line crossing the bloomberg. i'm waiting to see that statement on the ecb website. they will apply flexibility in reinvesting pepp redemptions. lisa: what does that mean? jonathan: looking for a little bit more detail here. the ecb instructing committees to prepare a new crisis tool. how do we get the it highly and 10 year -- the italian 10 year? sit on this story, dial back the music, and let's talk about this. the ecb instructing committees to prepare new crisis tools. to me at first look, i do want to go through that ecb statement , i don't see a plan here. i see a plan to make a plan down the line. lisa: this sounds very similar to what came out with the ecb meeting, where they said they were going to maintain flexibility. you did see a knee-jerk reaction a little bit in the btp's. yields fluctuati

and the move by the bank of england came just a day after the u. s. federal reserve increased interest rates to its highest levels in nearly 30 years. also in a bit to kind of inflation by reducing consumer spending, but as my kind of reports from washington, it would have never get negative impact on the batted us economy and lead to recession. denouncement was expected, but no less shocking. at today's meeting, the committee raised the target range for the federal funds rate by 3 quarters of a percentage point resulting in a one and a half percentage point increasing the target range so far this year. the only potential ray of light and unemployment rate near a 50 year low with job vacancies at historical highs and wage growth elevated. but this is offset by soaring inflation, which the rates type is intended to curb. prices across the board increased by nearly 9 percent last month alone, as inflation reached the level not seen in decades. the interest type will increase the price of mortgages and insurance among other things. but the fed hopes that

the focus now is on what the bank of england will do next. so, their next move, we think they're going to raise rates again come august. we think they'll raise by a quarter percentage point again, as they've been doing so far. but there is speculation that perhaps they may go even further. this retail veteran thinks policy makers were slow to act. so, what's rather sad is that, i the country, the government, perhaps the bank of england, - didn't see inflation coming quickly. they've now recognised that. but i did point out last year, and i wasn't the only one, . that at the end of covid, - there was a train coming down the tunnel, and the train had a big flashing light on the top, - and that flashing light said, i inflation, inflation, inflation. and this boss doesn't want to predict where it will stop. emma simpson, bbc news, stevenage. what can we all do to try to mitigate against the rising cost—of—living? what changes can people make? let's ask a financial adviser. joining me now to talk about how we cut everyday costs is emmanuel asu

francine: where the bank of england tomorrow, -- we have the bank of england tomorrow, is this going to be divergence play ? we've seen a lot of princi's move on the back of it. -- currencies move on the back of it. bob: point number one, if the fed goes by 75 basis points -- we had this conversation last week it was clearly 50. it has shifted in the last days. if they only go up by 58, credibility may be damaged. they almost have to do 75 basis points to maintain credibility. coming back to your question on sterling, it is a challenge to find any economic indicator on the u.k. sterling his weekend .87 against the euro. -- sterling has weakened .87 against the euro. very weak economic growth, inflation moving close to 10%. they have to raise rates. that clearly puts the economic situation of sterling negative, the weakness is likely. tom: bob parker from cbp staying with us. dani: keep it with us francine: on bloomberg. we will have coverage from the fed's assertion -- fed position. in the lead up, we have all the market moves. this is bloomberg. ♪ tom: welcome back to the open. 60

federal reserve and the bank of england, which have aggressively raised rates into promising further action to rein in inflation this year. and for moral this, i'm joined now by my colleague christy pledge from our business department. so the question is, is this rate i can meet? it's a modest one, is going to be enough to tame inflation. i think we're just at the beginning of this brand. i mean, what we know about is this, right? i can rely likely one at september and they said there's more to come basically that are not more the company. this is going to be a journey reacting to the situation as it develops. i mean, what we know from the, the plan that they've announced is that the e, c, b is going to be stopping its policy of actively stimulating the economy. and they've been making it easier for businesses for consumers to get loans during the pandemic, you know, greasing the wheels of the economy. but we know energy, food materials, basically everything's in short supply. we have a lot of cash, che, chasing fewer supplies. and this is one of the major things pushing on prices ri

, the bank of england will have to hike quickly.— to hike quickly. that's the thing i'll— to hike quickly. that's the thing i'll talk _ to hike quickly. that's the thing i'll talk about - to hike quickly. that's the thing i'll talk about in - to hike quickly. that's the thing i'll talk about in a i thing i'll talk about in a moment is the fact that here in the uk there are lots of parts of the labour market saying will go on strike and we need to be paid more because the cost of living has been driven up cost of living has been driven up by cost of living has been driven up by this inflation scenario. how concerned are you of this worry that if wages are going up worry that if wages are going up and prices are going up, we are ina up and prices are going up, we are in a spiral that will get out of control and last a lot longer? out of control and last a lot loner? ~ ., ., ., , ., longer? we are already in that siral, longer? we are already in that spiral. i'm _ longer? we are already in that spiral, i'm afraid. _ longer? we are already in that spir

the bank of england will make a further interest rate decision on thursday, looking likely to be a further rise. so you have this really high inflation, you also have the stagnation i was talking about. stagnation and inflation, the term is stagflation, and that makes it quite difficult to then rein in inflation, the same time as avoiding recession, it requires a double act between the bank of england and the government. but that does seem where we are right now. we government. but that does seem where we are right "ow-— we are right now. we will talk again as the week — we are right now. we will talk again as the week goes _ we are right now. we will talk again as the week goes on. _ we are right now. we will talk again as the week goes on. thank - we are right now. we will talk again as the week goes on. thank you - we are right now. we will talk againl as the week goes on. thank you very much. let's look briefly at some other stories making the news today. the actor kevin spacey will appear before westminster magistrates' court on thursday, after being charged with sexual offences a

the ecc has been caught flat—footed, the bank of england. assessment by the my�*s inflation problem, really? it is england. assessment by the my's inflation problem, really? it is and it isn't. politically, _ inflation problem, really? it is and it isn't. politically, of— inflation problem, really? it is and it isn't. politically, of course - inflation problem, really? it is and it isn't. politically, of course it - it isn't. politically, of course it is. whatever else is happening globally, the party in power is what gets the blame, and in this case we have a democratic has a democratic senate and a democratic resident, and the messaging has changed throughout this, but it hasn't really improved. originally, it was transitory, then a lot of the inflation has been putin's four, even though inflation was happening well before that. it is a very real political problem for biden, and unfortunately he doesn't have a lot of power to do much about it. find of power to do much about it. and did so. of power to do much about it. and did so- the

the bank of england's chief economist warning today or yesterday in the saturday papers that we could get a sort of half a percentage point rise in interest rates come double the normal level at which they would put it up because they worry this high inflation is becoming embedded into the economy. that's quite troubling, very troubling if anyone is on a tracking mortgage where they have costs that will leave but when that happens, but that is how concerned they are about inflation. but of course it is sort of terrifyingly high and they don't seem to be controlling at the moment, the whole point of controlling interest rates is obviously to be able rein in inflation although there is a lag index. so, yes, but it is a pretty bleak story and i just feel that we are going to talk about this for the next six months and possibly a year and possibly two years in the government does not seem to have enough answers and they keep saying we cannot have all the answers on price rises but passing on a head and saying you don't need a pay rise hats does not actually charm anyone either. particular

it is heading up to 11% in the autumn, according to a bank of england forecast. that makes the whole country poorer and it's why unions representing nurses, council workers and railway workers are putting in requests for pay rises which seem high. we putting in requests for pay rises which seem high.— which seem high. we think uk inflation might _ which seem high. we think uk inflation might peak— which seem high. we think uk inflation might peak hire - which seem high. we think uk inflation might peak hire and i which seem high. we think uk i inflation might peak hire and stay higherfor inflation might peak hire and stay higher for longer than elsewhere in developed markets. there is a number of reasons, one is the exchange rate, one is that way household energy prices work and brexit might keep the tightness in the labour market and those wage pressures higher for longer. market and those wage pressures higherfor longer. the market and those wage pressures higher for longer.— market and those wage pressures higher for longer. the surge in food rices highe

i think this is a bank of official -- bank of england official. saying we have to keep our heads up. to me, that was very important. jonathan: first time harry? i'm not for that is the bank of england. put futbol team at the end that is probably what we are talking about. i like my friends in the city of london. on the ecb, just a couple of things. we heard they will have an unscheduled monetary policy meeting. it was going to last about two hours. that is up. it can go longer. we have no idea when we get a statement or if we get a statement after that conclusion. we are waiting for that and when we get it, we will bring it to you. i hear all of this talk about recession risk. i have not seen many people downgrade their earnings estimate. first out of the gate is a recession at the end of next year. tell me why you have not cut your outlook for the s&p just yet. >> a couple of things. what i would say first is that i think it is important to keep in mind there remains a recession for the end of next year but not near term. i think the word everybo

it is also facing a review by the bank of england and the financial conduct authority. the nickel market itself is stuck in a period of limbo as low liquidity and low volatility. guy: we look forward to further coverage. jonathan browning, thank you very much, indeed. let's check where u.k. markets are. not much action. we have to wait for another couple of seconds before we get a final tick higher or lower. we will bring you that when it happens. those are the numbers on the screen right now. we'll carry on the coverage here in the u.k. on the cable show. 5:00 in london, 12:00 in new york. you can find us on dab digital radio in london. you can also find us later on the spotify and itunes area. the podcast area. alix? alix: definitely looking forward to talking politics on that. we have a conversation on the future of mobility. we will take you to the latest there. this is bloomberg. ♪ ritika: you're looking at a live shot of the principal room. coming up, patrick palfrey, credit suisse senior credit strategist. don't miss it. this is bloomberg. alix: a summit is und

eight bank of england governor says home sales are starting to slow. he said property prices will be tracked down by rising interest rates and using economic growth, their marks followed a 10 consecutive monthly rise in housing prices. global news, 24 hours a day, on air, and on bloomberg quicktake. powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg, yusuf. yousef: thank you very much. the european commission executive vice president valdis dombrovskis has told bloomberg nothing is off the table when it comes to hitting russia's economy. that includes possible future sanctions on russian gas. in an interview, he said the latest package strikes at the heart of putin's war machine. >> we need to continue to support you. , -- ukraine, and we need to continue to put pressure against russia to stop its aggression. finally, there is agreement on a sixth sanctions package is important. the oil embargo is not fully, as the european commissioner is proposing, but it will be 90% less imports of russian oil. also the

but we've got foc, we are also got the bank of england. they are having to grapple with inflation, as ever. we've got 1.25%, a third of that would include that when he five basis point that has been anticipated. -- 25 basis point that has been anticipated. looking at what is going on in japan, it was an absolute blowout. 19% increase for them. you can follow more on all of this, go on the bloomberg terminal. get a market rundown, commentary as well as analysis from bloomberg experts. you can find out how your. money is being affected. a lot more on the way, this is bloomberg. ♪ >> are equity markets, as we count down to the fed, better-than-expected numbers out of china. that is helping -- helping sentiment, hang seng is up 300. crypto lender celsius network has reportedly hired lawyers to arrive on its financial problems. celsius is looking for possible financing options but is also exploring a restructuring. socio-holds crypto withdrawals, worries about stress in the digital asset structure. coin voice is laying off -- coinbase is layi

b is falling in the footsteps of the federal reserve and the bank of england, which have already aggressively raised prices. and are promising further action to rein in inflation. is he be president christine the guard explained the reasoning behind the decision. high inflation is a major challenge for all of us. the governing council will make sure that inflation returns to all to percent target over the medium term in may. inflation again rose significantly mainly because of surging energy and food prices, including due to the impact of the war. but inflation pressures have broadened and intensified with prices for many goods and services increasingly strongly. well, for more i'd like to bring in our financial correspondent yann's quarter in new york high gans. so the e. c. b is the latest central bank to hop on the right height bank, right? height, bandwagon. seems like more signs of concern that inflation is going to be knocking hard on the economy. are we staring down the barrel of a global recession at this point? well, christy, it is not set in stone that we will dive into this recessi

fed and the bank of england have done, they announced these hikes months ago. there was some reluctance by the ecb to do that until now. why is that? guest: people were complaining that the fed waited too long. economists responding today, saying that they are not doing enough. even the ecb themselves said that even with this plan, they expect inflation to be above target in 2024. christine lagarde has been clear about differences between the u.s. and europe. the labor market, the employment is not nearly as tight in the euro area as it is in the u.s. and that, is where we start getting this wage spiral situation. but she did say they are seeing wages come up in the euro-area. they don't see that as a major factor knocking on prices, but it is something they are watching with concern. brent: when you look at the picture, how much can central banks do in these conditions? they want to fight inflation, but there is so much more that has to be mitigated. guest: this is the main reason why the ecb and the fed had insisted inflation was transitory. the ecb had been

the bank of england is warning that a bigger rate hike is coming. and meeting president zelenskyy. tightening the grip on the energy market. from new york, i am in for alix steel. it is those big decisions that are really moving the market and moving them big. >> i barely know where to begin. the s&p raising. a little bit more cautious. we come to the boj. look at what is happening with gas as well. we just have a headline crossing on the bloomberg terminal. that is the biggest jump since 1987. it is fascinating to see that we are seeing a bigger response in the mortgage market. so much to factor in. you wonder whether the market is capable of keeping up. let's try to answer that question. we have the perfect person. bridgewater associates. the cozy i of the world's biggest hedge fund. i cannot think of a better person to ask that question on a day like today. do you think the pricing currently reflects the risk? >> unfortunately, i think there is a fair amount to go. we are in a process where things have radically changed from where they were pre-covid. last year, asset prices wer

that requires a tricky balancing act for both the bank of england and the government, trying to avoid recession and rein in inflation at the same time, and it seems to be here. sophie. the high court has ruled that a 12—year—old boy who is in a coma after suffering brain damage is officially dead and should no longer receive life support, despite his family's wishes. archie battersbee was found unconscious at his home in april and has been at the centre of a legal dispute for weeks. his parents say his heart is still beating and treatment should continue. but doctors at the royal london hospital believe he is brain—stem dead. our correspondent sanchia berg was in court. archie battersbee was a keen gymnast, he loved boxing and martial arts. but for the last nine weeks, he has been lying in a hospital bed, kept alive by a ventilator. his family had found him unconscious at home — they believe after an online challenge went wrong. doctors said his brainstem had stopped functioning. they want to withdraw life support. archie's family challenged that decision in the high court, bu

analysts suggest they may deliver a 75 point hike the swiss national bank and bank of england is not expected to raise on friday. in investors will watch for the increase in the yen. luke barnes is with goldman sachs. luke, it is wonderful to have you with us for equity mashrket an hour in the session how is the fed reviewing the inflation report >> good morning, julianna. thank you for having me on this morning. the reality is the fed will try to get ahead of the inflation picture. that is worsening. we expect over the course of the year to see a number of hikes. we actually think through the june, july and september sessions we will see 50 basis points lihikes and 25 points th rest of the year that is a challenging picture for the equity markets it gives us interesting entry points into the stories whereas much as the discounting message and interest rate hurts the cash flow picture, there is a huge amount of growth that is under priced relative to what the market is viewing. >> i want to get into the opportunities you are talking about p. when it comes to making the determination

can we've seen the s and b and also the bank of england is also on the right hiking cycle as well. so i think what we're seeing at the moment is the significance shift in central banking inflation is the main enemy now. and really it's a matter of degree as to how bad any recession is likely to be. and michael, on that know, when will these rate hikes? when will they start showing impact? i guess the big question is going to take some time for them to take effect. let's not forget that an awful lot of this inflation is in energy prices and in food. and as you well know, all of that is priced in dollars. so what you're seeing a significant currency weakening. i would hope i would like to think that we could start to see some effect over the course of the next 3 to 6 months. certainly the phase project thing that we learned to remain fairly high in terms of inflation for late into the middle of next year, or the hope pays, hopefully it will be less than my cousin, chief market analyst as seems the market. michael, as always, thank you. and out to some of the global business stories m

it is heading up to 11% in the autumn, according to a bank of england forecast. that makes the whole country poorer and it's why unions representing nurses, council workers and railway workers are putting in requests for pay rises which seem high. we think uk inflation might peak hire and stay higher for longer than elsewhere in developed markets. there is a number of reasons, one is the exchange rate, one is that way household energy prices work and brexit might keep the tightness in the labour market and those wage pressures higherfor longer. the surge in food prices explains today's figures. there has been your records started today by petrol pump rises with diesel close to £2 per litre and international gas prices are up again, adding to the pressure on domestic energy bills in the autumn. this is made worse by a weakening pound sterling which increases the prices of goods we import, including petrol and diesel, so it will get worse before it gets better. the government says it and the bank of england will get inflation under control, but at this haulage com

we have the likes of the bank of england coming this week and the bank of japan. the bank of england are looking at inflation and how do they adjust policy when it is driven by not an excess of demand but by the supply shocks. the war in ukraine driving up energy and food prices. how do they tackle that in a way that doesn't tip the economy into a recession? over in asia, we had also a mixed picture there. japan was lower because that's the outlier globally. the bank of japan meeting this week. they are actually trying to keep inflation. that country hasn't seen inflation -- in fact, they've seen deflation now for a number of decades. they now have inflation around 2%. they want to keep that. of course, being the outlier in terms of monetary policy, globally, their currency fell to a 20-year low against the u.s. dollar. the inflation globally is the big conundrum. there's a lot of wait and see in the markets this week. they're struggling for direction as we wait for the central bank meetings. >> claire, thank you so much for the reporting from london. allison kosi

hikes from the bank of england, and the increase in national insurance contributions which happened in april. tom: what is the expected economic cost of all this? laura: the economic cost will be around 91 million pounds. that is the hit to the u.k. economy of lost output and growth will be hit by a 10th of a percent in the second quarter, contributing to a technical recession in q2 and q3. their forecast differs from what the bank of england and citi economists see, as collated by bloomberg. but revisions may be made to this chart if we see further mass walkouts across public sector industries such as teaching, civil servants, nhs workers and the general secretary of the rmt has called for a nationwide strike. the last time we saw a strike of that scale back in [inaudible] tom: bloomberg's laura wright on that rail chaos in the u.k. this morning. vingroup ceo le thi thu thuy, on her plans for the markets. this is bloomberg. ♪ mom: how was school? dad: wow! ♪ vo: music can help you express how you're feeling. w- [announcer] imaginee lahaving fuller, thicker,. more voluminous hai

to the bank of england, but the ecb decided to step on that. we had an emergency meeting a little bit earlier on, not entirely sure why. the debate seems to be what is the priority? peggy inflation or price representation? which of those two do you think wins out? nathan: the ecb is in an even tougher position than the federal reserve. you have to think about inflation, you have to think about growth. it cap is very thorny issue with financial fragmentation. it is very possible that is leading up to a fragmentation that becomes binding in this hiking cycle. i do think that if they get it for all the financial fragmentation, it is likely to create headwinds for economic activity more broadly than just in the corporate economy. as we saw in 2011, 2012, 2013, i think it is likely it will slow the economy and likely slow inflation. but that is a very, very messy process. i'm hopeful about getting all the constraints, but there's a lot of challenges. i am hopeful we will be able to figure out some kind of a tool that restores market confidence. alix

catherine man, now of the bank of england, also now taking questions following a speech she has delivered. in the q&a, she basically indicated the bank of england hikes are not about defending the value of the pound. she is saying that actually the value of the pound is going to have an impact on inflation. she is aware of the weaker pound for an important inflation point is having a negative effect in terms of the inflation out with them. we will get inflation data out of the u.k. which is not likely to paint a particularly attractive picture. she said she is looking at it but doesn't say the hikes are basically aimed at it. you could argue the macro economic outlook that the bank of england is painting is having a fairly depressing effect on the british pound. let's talk about another aspect in europe. french president emmanuel macron losing control of the national assembly after the far left and far right significantly made a strong showing. for the impact, we go to paris now joined by someone who is light outside of the national assembly in paris. i found this an absolutely fascinatin

of england policy decision due on thursday. that is a focal point for the uk market overall, dom, the market narrative is what you are seeing in the states. investors are questioning if policymakers have to move faster to control the high inflation figures. dom. >> selling pressure in europe picking up julianna tatelbaum, thank you very much. >>> the global equity selloff coming on onfriday heels of the hotter than expected pace. that read adding to the pressure facing jay powell and the fed ahead of the policy decision questions about possible changes to the rate hike strategy. joining me now is michelle girard mic michelle, it is no surprise that markets are reacting to hotter than inflation prints. they have been happening for some time. that leads to a question if we are near, at, close to or peak in some way. do you feel we are getting there? >> well, i think in terms of inflation, we are getting there. although, certainly what we saw from last friday, we have not gotten there yet i'll be honest we thought the peak might b

starting with the fed and the chair powell news conference on wednesday, then it is the bank of england's turn on thursday, and finally, rounding out with the bank of japan on friday. still with us here, we are happy to say, victoria fernandez, jim keenan, and lotfi karoui. a lot of noise around the fed meeting in particular. victoria, do you want to weigh in on how much he could bring forward with expectations as a result of today? victoria: i'm not sure they are going to do a lot based on today's number alone. what have powell and the rest of the fed president's been saying? they want to see clear evidence of things changing. they want to see it over time. obviously, the cpi being higher today -- and not the headline, it is the month over month that is truly important, right? that is what they are watching. not seeing that number come down is what is troubling for them. i am not sure they pulled forward this meeting, i am not even sure they pull forward the july meeting, i think they have to start wondering what is that going to look like if we don't see inflation start to come down. it

jonathann: the bank of england is living this right now. they have had to raise their inflation forecast. when we see a repeat in one hours time when we hear from president lagarde? tom: the u.k. view from oecd was dropping. the spread market to me is more important in europe because it is so politically not homogenous. we are not talking enough about the politics of lagarde. jonathan: the difference between the federal reserve and europe, you are looking at different markets. chairman powell doesn't have to juggle the italian debt market. spreads have bought into outcome inside 100 basis points. lisa: they are clearly aware of this. christine lagarde said she was not there to close the gap and then she said that she was there to close the gap. how much can they target a program? there has to be a more nuanced approach. jonathan: what do they do with the balance sheet? let's find out later, the decision 13 minutes away. jonathan: let's say good morning to romaine. >> tesla shares are one of the more notable gainers of the day, up 3.5% on th

the i newspaper leads on the rise in interest rates, as the bank of england warns price hikes could go as high as 11%. the paper claims ministers have ruled out tax cuts until 202a. the daily mail follows the same story, telling its readers to brace themselves as the pain of the big crunch looms. the guardian reports borisjohnson is considering scrapping the role of ethics adviser after lord geidt quit, saying the prime minister put him in an impossible and odious position. the ft pictures ukraine's president zelensky greeting european leaders from france, germany, italy and romania in a show of solidarity following russia's invasion. and the metro features beyonce in all her golden glory. queen bey is back with herfirst solo album in six years, due to release next month. 0k, let us begin with the i, and, penny, they are saying no tax cuts for two years and nothing until 2024. for two years and nothing until 202a. they claim it. because of the huge pressures on the economy. we have heard a lot, haven't we, from some parts of the conservatives who are calling for tax cuts? rishi sunak k