this is bloomberg. ♪ haslinda: it is a risk off day for asia on the back of losses on wall street overnight. china's markets also under a bit of pressure. china has inbound quarantine, but not enough to lifted so bull market. not today. rishaad: certainly. here's a look at the implications of quarantine changes in china. bloomberg intelligence analysts say that those alterations is assigned policymakers are moving towards reopening supporting growth. so the question that begs itself, will quarantine reduction be a big boost or do we see a follow-through? we are not seeing it today though. >> china's covid zero policy has been one of the biggest idiosyncratic risks this year. so anything on that front will likely be positive for sentiment, but we do still think it's too early to say if it's the end of covid zero, but it does commit to reopening of supporting growth. we also think that president xi's visits hong kong in the coming days, despite the 2000 or so daily cases, they are starting to balance ou

this is bloomberg. ♪ >> we are back with bloomberg markets. checking in with the latest business flash headlines. this all, after the swiss blood reporter -- coming after this swiss blood reporter says there is no truth to the rumors, calling questions about a possible takeover stupid. the bank itself is delaying his chinese expansion. they have also swished back the targeted launch to 2024. they have been slowly hiring on the mainland as well. wells fargo is the target of a u.s. criminal investigation. according to the new york times, the lender is being investigated over for job interviews with female and minority candidates to satisfy guidelines. >> take a look at chinese markets. we saw those in the morning, currently up by .6%. this is on the back of a moderating cpi coming in at 2.1%. down lower than what was anticipated. take a look at all of this reversing. investors are trying to weigh china's regulations. to finally lose 80 pounds and keep it off with golo is amazing. i've been maintaining. the weight is gone and it's never coming ba

this is bloomberg. ♪ romaine: this is "bloomberg markets." i am romaine bostick alongside jon erlichman. i lot of talk about the fed raising rates and potentially pausing in the hiking cycle. bill dudley says that is not going to happen. the fed has to keep raising interest rates to curb inflation and he dismisses speculation the fed could hold its fire in september. he spoke with bloomberg earlier. bill: labor market's the tightest it has ever been. you can see that from the unfilled jobs related to those unemployed. in february 2020, it was 1.2 to 1. the fed needs to loosen it up or inflation will be above 2%. the problem is that in the past it has been difficult to push the unemployment rate up meaningfully without precipitating a hard landing. that is what the fed is going to try to do, but extremely difficult. they have not been as forthcoming in their forecast as they need to be. if you look at their last summary of projections, the inflation occurred almost immaculately. inflation was the 2% target and it begs the question of what caus

this is bloomberg. haidi: al-shabab as u.s. listed shares tumbled into new york after china's regulator denied a report that it had restarted negotiations of reviving ant group. my jaw dropped when i saw that initial headline across bloomberg what toledo? >> keep in mind shares went up on the news, sources saying that regulators in china were in early stages of talks to possibly revive this massive ipo. i don't have information on this, but i doubt it would be as large as that 5 billion-dollar global ipo were going to see in shanghai and hong kong back in november of 2020. of course that triggered this massive tax selloff that spread beyond alibaba and ant into other tech companies, wiping off more than one trillion dollars in market values and sending shockwaves to the billionaire class across china. so when this news broke that this is happening, it is babies, but you are right, things pulled back would brick and that is put out a statement. the securities regulator in china in a statement last night,

this is bloomberg. >> and will have a major impact. an impact on gdp and recession. it is a narrow path and we cannot discuss the possibility of a soft landing. haidi: that is the ceo. the income generation will be one of the best weapons for traders. we have chris with riverfront investment groups. you say it move over tina, and make room for patty. >> that is my lame attempt at coming up with an acronym for the paradigm. a lot of people know that tina stands for there is no alternative. in a world of easing financial conditions, over a loose monetary policy which is the world from 2009 two the end of 2021, he wanted to own growth oriented securities rate particularly stocks. interest rates are below the rate of inflation and there was an alternative to taking risks on the duration curve. we will do era now. what i say piety, what that stands for is pay attention to the yield. we are in a different era. on certain macroeconomic background -- an uncertain economic background. have positive inflation-adj

this is "bloomberg markets," european close. with guy johnson and alix steel. >> welcome to the european close. european equity markets close in half an hour so let's get you a market chart. -- check. no volume in london because it is a holiday. a very long weekend and many cue ball pellet rating. hugs and restaurants will be busy with a lot of people taking the opportunity to travel as well but there are plenty of markets open in europe. the french market has been doing pretty well, up over 1%, construction seems to be a positive theme, we heard from a big construction company in paris and that has added to the sentiment around that sector. brent crude is up, so pretty volatile, even keeping us guessing how much the market is reading into that. that seems to be the takeaway speaking from jeff curry but the market oscillating between gains and losses really for brent compared to the previous close. the pound is up by .4% but really this is quite to do with dollar weakness, the other side of this. we've seen the dollar gaining. i

this is bloomberg. rishaad: still to come on bloomberg markets, jp morgan saying its biggest concern for the asian credit markets are inflation, economic growth. we will discuss that with the head of asia. >> first, indonesia has hired the biggest amount of tourist arrivals. this is bloomberg ♪ >> here are the southeast asia markets right now, still seeing quit a bit of pressure when it comes to singapore and manila, we have the manila markets closed. the bank of thailand decision will be later on this week as well. still kind of joining the field this monday morning. we have central banks here. let's have a look at indonesia now. this is here for the job and here. let's discuss the country's recovery. thank you for joining us. 500%, it is still showing progress. how would you build upon that and get toward that. >> we are removing that requirement and a mask mandate for outdoor activities. we are seeing that events are starting to come back with the g20 coming in in november. we will hit our target t

this is bloomberg. ♪ >> it is a hurricane. right now, things are kind of sunny. everyone thinks the fed can handle this. that hurricane is right out there down the road coming our way. we just don't know if it is a minor one or superstorm sandy or andrew or something like that. you've got to brace yourself. haidi: jp morgan ceo jamie dimon warning of what he calls an economic hurricane to come. take a look at futures at the moment. not much of anything when it comes to s&p futures. pretty flat. we are expecting a bit of a jump in asia in the thursday session. we do have, of course, a lot of mortgage messages from corporate leaders, central banks, other big banks as well really wanting to amplify the alarm bells over inflation. let's bring in our next guest who says the base case for a recession is starting at the end of this year, and that is looking more likely. with us now, the head of global asset strategy at wells fargo investment. great to have you with us. it does really feel like a confluence o

stay with us here right on bloomberg. ♪ dani: you are watching "bloomberg daybreak: europe." bloomberg has learned that the biden administration is looking to wean the u.s. off of russian uranium imports. they -- exxon mobil has a group of western companies posed to have stakes in a multibillion-dollar project boost gas exports. they may announce this decision this weekend. global news, 24 hours a day, on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. this is bloomberg. manus: thank you. we are going to jump in a little more detail. we break it down on the wealth management side. we see ongoing deleveraging. that is key to the story. dani: it is notable they are talking about asia-pacific as well. we were just discussing china about what would make you drop back in. credit suisse customers are not will when people come, they say they've tried lots of diets, nothing's worked or they've lost the same 10, 20, 50 pounds over and over again. they need a real solution. i've always fought with 5-10 pounds all the time.

this is bloomberg. ♪ manus: it is "bloomberg daybreak: europe." credit suisse, making promises to boost the business. it also wants to cut costs, is technology. it's been hit with a historic money laundering conviction. a deep dive, 600 swiss desks 600 million swiss francs of cost scott. they're going to focus on hong kong and singapore. how bad is it? >> some might think credit suisse might need to take a few more radical steps. the definite they have to look at three priorities, cost cuts, arrest the flow bad news. most important is to show we can kickstart growth and with markets going the way they are, we've seen stocks in china slumping. it looks like a recession possibility worldwide. dani: of course we had a credit warning from credit suisse earlier in the month. some of the targets there laying out, weatherby cost cuts, high single digit wealth volume growth, how difficult is this going to be for credit suisse to achieve? >> i don't think they would send out targets which are going to the impossible to achieve. any bank at this point, it's

this is bloomberg. ♪ leigh-ann: keeping up-to-date with news from around the world with the first word news, i'm leigh-ann gerrans. more problems for credit suisse. the lender has issued a sixth profit morning in seven quarters and expects a loss at the groupwide level and investment bank in the second quarter. bloomberg has learned credit suisse is considering job cuts. here in the u.k. bloomberg understands boris johnson will go ahead with legislation to override parts of the brexit deal. that risks inflaming tensions with members of his conservative party and the european union. the prime minister's government has been pushing to rewrite a northern ireland protocol that keeps the region in the eu's single market. the oecd says the world will pay a hefty price for the poor in ukraine. the organization slashed its outlook for global growth this year from 4.5% to 3%, and doubled its inflation forecast to nearly 9% for its 38-member countries. in san francisco residents voted to recall district attorne

this is bloomberg. ♪ at fidelity, your dedicated advisor will help you create a comprehensive wealth plan for your full financial picture. with the right balance of risk and reward. so you can enjoy more of...this. this is the planning effect. >> they dropped a critical sentence indicating they are not certain they can do this soft landing. that is an indication they think they are running the risk of a recession. jonathan: that landing strip for a soft landing just gets a whole lot narrower over the last few months. that was jeff lacker. from new york city this morning, good morning. here is the price action. we are down more than 2% on the s&p 500. we take away yesterday's rally pretty quickly. in the bond market, up 17 basis points. 180 on a 10 year bund. i want to think about where we have been, the recent high on a 10 year, tom. that high in the last week or so, 349.65. just a couple of days ago. tom: i'm locked onto your yields , 3.35%. the two-year to breakout higher would be a big deal. jonathan:

this is bloomberg. rishaad: coming up on bloomberg markets, it is china moving to reimpose lockdown measures after rising covid cases. we will be speaking with -- about the impact of it on foreign businesses. yvonne: a rate hike from the fed hike later on today after its latest inflation data. we will find out more and what to expect, next. this is bloomberg. ♪ rishaad: we are looking at the federal reserve. concerns of a yield, we are seeing whether we do still have some inversion, we do. that continuing as we are getting more and more lenders out there. thanks and analyst saying we could get 75 basis points. we got the inflation print last week, it really has changed things. yvonne: the feds are pricing. we have seen a bit of stabilization when it comes to where yields are. we are seeing on's up, head of the fed. 200 basis points of hikes over the next three meetings. if you look at how bond traders are pricing in, they're pricing in cuts of three 25 basis point cuts by 2024. people are thing they c

this is bloomberg on bloomberg radio and bloomberg television. ♪ ritika: ukraine clenching new loan program, according to the country's finance chief, invading russian forces pushing its budget and national reserve. the financial minister tells bloomberg the key to these -- long-standing donor, talks about a eight package are underway. a possible visit by the president of china provides -- may provide more momentum. he may join a ceremony to swear in a new leader as well as celebrate 25 years of chinese rule, the enterprises index has gained, outperforming every major benchmark in the world. more than two years after the coronavirus pandemic began, there are questions as to how it started. a top organization saying more information and research are needed to look into the probability that china was the initial source of the outbreak. there should be further study for markets identified as another source. harboring even the lowest level in 30 years, that after states -- credit sweep shares lost half their value since their peak in march last year, losses stemming from the troubles of the hed

this is bloomberg. haidi: we speak to a japanese recruitment company that is looking to achieve gender parity in all management and positions by 2030. 20 us later this hour. -- joining us later this hour. shery: central banks containing inflation by hiking rates. we look ahead with analytics, next. this is bloomberg. ♪ haidi: a massive week ahead on the income front, inflation dominating. price pressures have peaked. we are looking at chinese data as well. the rba said to have policy decisions. the ecb expected to announce the end of the set up bond buying. the president already looking at comments when it comes to a 15 basis point hike. in india and thailand, let us get to analysis from the chief economist at the moody analytics. what is a balance of risk here? in australia that wage price spiral is not quite the same that we see across other major economies. what is the dynamic you are watching? >> the wage price spiral may not be as great as it is in other developed countries. it is beginning to go

bloomberg's wall street correspondent has more. there's just -- they are just not that much in fashion anymore. sonali: you have the s&p down on the year. i've got to say also if you look at the renaissance ipo index your down 40% on the year so they are not alone in this run. bloomberg has been reporting throughout may about those fears in the market. we have seen a game of musical chairs. we have hundreds out there looking for merger targets. 16 deals police were announced in may, of the most since december and so you do see a very small amount of -- looking for a merger on the deadline looking to get that deal done. alix: all of it made more complicate it when you're 10 year 3%. let's get to a company that kind of tackled all of this. symbotic begins trading today after been camp -- been competing in merger. companies at walmart e supply chain congestion at the lower labor cost of robotics and ai software. earlier this week i spoke to stuart walton on automation and supply chain challenges. >> robots will take away some of the j

tom: we do follow the bloomberg. i've sterling working out a little bit stronger but the others are all stuck and what the technical people called penance. we have not seen indicators that we make it out of this ecb meeting. let's go back to maria tadeo and annmarie hordern. we are waiting for the ecb to say something. what are we waiting for? maria: we are and this meeting is different to the normal policy meetings. that is why we don't have career guidance in terms of one is it going to finish. we don't know what kind of statement we get after it or if we get anything on paper. the idea is that they would be something on it. if you look at the core of the issue right now for the european bond market, it really is about the fragmentation and how do you fight this. christine lagarde said in four times, we are committed to fighting back. this is something in europe, when she speaks, tweets, people do pay a lot of attention. she said our commitment has no limits. i think this meeting is about the specifics. no limits,

this is bloomberg. dani: thank you. coming up, nato has promised to beef up their forces as they recommit to protect ukraine. more, next. this is bloomberg. ♪ >> today we recommitted to the pledge were made in 2014 to suspend at least 2% of gdp. >> there are big and respectable countries, they want to be leaders as well. they must develop empathy and development now. >> nato is, will be and always has been a defensive alliance. >> china has challenged values to interest and security. dani: voices in the nato summit recommitting to protect ukraine. nato leaders agreed to put more than 300,000 troops on high alert. joining us now is bloomberg's maria tadeo. we are reaching the end of the summit. nato is back in combat mode. what has changed? maria: some of the great voices. we are here at this very busy nato summit. you are right, nato has hinted that they are back to combat mode, being on the defensive. the secretary-general was very clear yesterday. allies if you russia is the most direct and significant threat. some

this is bloomberg. shery: we will bring you those remarks by president biden live in about 20 minutes here on bloomberg tv. do stay with us. this is bloomberg. ♪ >> now greater recognition that inflation is not transitory is probably with us for a number of years and it is the type of inflation that i do not believe the federal reserve has the policy or the tools to do much with it right now. and i am personally not blaming the federal reserve for where we are right now, but i believe most of the problems we are living with today are more policy generated and supply generated. >> this is among is among if not the most complex dynamic environment i have ever seen in my career, we have obviously been through lots of cycles, but the confluence of the number of shocks to the system to me is unprecedented. haidi: big names there on the current economic environment risks. take a look at this, goldman sachs saying emerging market stocks, bonds and currencies are set to reap the rewards of a peak in the u.s.

this is bloomberg. shery: still ahead, we will hereby asset management says the stimulus will likely delay any risk of a global slowdown until 2024. jp morgan is among the market watchers predicting a 75 basis point fed hike on wednesday. joyce chang joins us now. -- joins us next. this is bloomberg. ♪ ] >> we are unlikely at this stage to go deep into a recession. it is possible, i would put 5050 odds. that is ok. haidi: morgan stanley ceo james gorman. our next test says re -- our next guest says recession -- always great to have you with us. where do you see the trajectory of risk particularly as we talk about the possibility of 100 basis points from the fed? joyce: the focus will be on the central bank meetings. we do see 75 basis but we also see two more 50 basis point hikes in july and december before a 25 point pace. we are seeing this across the board in central banks. the ecb has revised its inflation projections and noticeably higher for 2023. the market is running well ahead of england's gu

standby for bloomberg markets china open. this is bloomberg. ♪

this is bloomberg. ♪ tom: welcome back to the open. 20 minutes into the european trading day. gains of yesterday did not last long, a pronounced risk off mood across equities being reflected in the dollar, bonds and commodities. futures in the u.s. between 1.8% and 2%. let's turn to the property sector as we return to the qatar economic forum, francine standing by with another guest. francine: i'm joined by hussein sajwani, the founder of damac, thanks for joining us. we look at the recession fears and inflation, what does it mean for the dubai property market which is extremely strong at the moment? hussein: dubai property market is amazingly good. the demand is there. we had four years of slowdown, so some value was kept away. now there is a huge demand. the world leaders, businessmen, people from all over the world came to the dubai expo and realized it is a hidden jewel, from the tax, from the safety, security. francine: how many russian residents do you have? hussein: we have russians coming, but not to the extent that people talk

this is bloomberg. ♪ emily: welcome back to the "bloomberg technology" summit in san francisco, where we are live. summer is here, but will all of our travel plans come out without a hitch. i am joined by the expedia ceo, peter kern. thank you for flying here from seattle. there were a ton of flight cancellations over memorial day weekend, jet fuel prices, pilot shortages, hotels struggling to get enough staff. how will this affect our summer travel plans? peter: clearly everyone is going to travel somehow. i think there will be disruptions. we are seeing it in europe and the u.s., th shortage ofe staff create a problem. we would love to see hotels open to full capacity. in the meantime i think people are finding options wherever they go, sometimes vacation rentals, sometimes hotels, they are planning flights domestically if they can't find them internationally. we are seeing just about everything going up. i think it will be a busy time either way. emily: delta just cut capacity for example for the f

this is bloomberg. ♪ dani: welcome back to "bloomberg daybreak: europe." we were trying to come to grips with this very ugly day in markets. stocks are selling off, bonds are selling off, currencies are going haywire. one thing we are looking at is japan, the 10 year yield hitting above the upper bound of 25 basis points. the boj says they are going to step in, by more jgb's. this is the end of the day -- at the end of the day is a rate differential story. u.s. dollar japanese yen at a 24 year high. the yen trading at a 24 year low. two year yields up as well, higher by eight basis points this morning. it feels like this existential angst over inflation that seems to not be able to draw one line under it. tom: in the u.s. we are seeing, in europe as well, we saw that blowout on friday. we will continue to watch btp's when they start trading. whether or not the ecb will be forced to step up with more concrete measures around that sovereign debt -- when it comes to europe, losses at 1.4 percent. bitcoin down to $25,600. iron ore suppressed. the s&p futures l

mark: i'm crumpton with bloomberg news -- i'm mark crumpton with bloomberg news. the eu executive arm is expected to recommend next week that ukraine be granted candidate status, a key step on the long pass to e.u. membership. a recommendation which needs to be approved by eu commissioners would come with conditions linked to the rule of law and anticorruption legislation. the head of the international atomic energy agency says iran has a very small window of opportunity to restore its landmark 2015 nuclear agreement with world powers. iran has cornered at -- has ordered international monitors to remove surveillance cameras to account for stockpiles of nuclear fuel. iaea director general rough ale narayana grossi called that order deplorable and said iran is risking a fatal blow to hopes of reviving the nuclear record. sri lanka's president is trying to avoid further disruption to electricity supplies amid ongoing antigovernment protests across the island nation. a plummeting currency and lack of supplies has mired sri lanka in the worst economic crisis in its mod

this is bloomberg. rishaad: still the come, seeing a tough six to 12 months for equities in india, but he remains bullish over three to five-year period. he joins us later on. plus, cryptocurrencies show signs of stabilizing after last week's slump. we will take a look at what is next for crypto markets, coming up later this hour. this is bloomberg. ♪ rishaad: we're talking markets. we are seeing futures across the board for british, european, and u.s. futures, all lending support to the rally we are seeing across this part of the world. let's get back to james sullivan, head of equity research at j.p. morgan. larry summers has come out and said the u.s. needs a jobless rate in excess of 5% for a sustained period to curb inflation. of course that harks back to the old phillips curve, which was defunct at some point. is he talking out of his hat, or does he have some basis in fact with this? james: with all the respect to larry, i do think it is the wrong number to focus on. this is not just an issue w

bloomberg markets europe up next. this is bloomberg. ♪

this is bloomberg. paul? paul: still to come, our guest joins us as we assess the fallout between the tussle between china and the u.s.. investors brace for more pain after the shock u.s. inflation number. this is bloomberg. ♪ >> we see inflation continuing to rake havoc. >> certainly the drivers of inflation. >> broadening and deepening out. >> everyone knows inflation is going sticky. >> inflation will be stickier at a much higher level. >> more clarity from the fed is what is needed for the equity markets. >> there is more work to do. >> more work to do in the coming weeks and months. >> rates will go significantly higher. >> above 3.5%. >> between 50 and 75 basis points. >> can the fed pause in september? we know the answer is no. >> i don't think anybody thinks we are going to get out of this without interest rates being significantly higher than they are right now. paul: some of our guests reacting to the blowout u.s. inflation. the fed and some of the most influential central banks will have to confr

coming up the chairman and founder of -- joining bloomberg tv. this is bloomberg. keeping up with the news from around the world. xi jinping has made his first trip outside the mainland and a must 900 days. he travels to hong kong. his comments were an apparent reference to the sweeping security law beijing opposed in 2020 that crushed dissent. his marking the 20th anniversary . police are searching for the suspect in the shooting death of a woman with a baby in a stroller per the killer was described as a male wearing a black sweatshirt. congresswoman liz cheney has warned fellow republicans they must choose between former president trump or the constitution. she says they cannot be loyal to both. in a speech in california she called the former president edge mastic threat the country is never faced before. cheney's vice chair the committee that invest getting the attack on the capital. 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. alix: let's get a qu

this is bloomberg. ♪ kriti: this is bloomberg markets. several analysts lowering price targets for nike after the company gave a downbeat forecast. it was cautious in its outlook for china. let's break it all down with our senior u.s. retail -- we see shares of nike down about 7%. there's a lot to digest but i have to ask, what is the biggest driver? the margins story or the china story? >> it's the margins. china is -- for long-term growth but right now it is about margins. just like it is for the rest of retail. there's too much inventory. margins will still be down. that is a big concern. kriti: let's go to the china side, you said it's only 25% of their business, that still per quarter. how much extent is that an issue? is it a question of sales, or getting exports out of china? >> less than 20% of their business. the issue is covid lockdowns and consumers still preferring to shop local brands. nike is still a leader there and we think there is opportunity for nike to succeed in china, but near-term it will take time. it will take tim

stay tuned to bloomberg. ♪

this is bloomberg. ♪ tom: welcome back to "bloomberg daybreak: europe." let's take a look at things to watch out for today after a momentous day yesterday. 12:00 p.m. u.k. time it is the bank of england up front and center revealing its latest rate decision. 1:30 p.m. we will have some data from the u.s. including housing stats and initial doubles -- jobless claims. jay powell still sees a robust u.s. economy. ecb councilmembers speaking later today. later, fifa announcing the host of the 2026 world cup. let's have the reactions of some of our guest to that 75 basis points rate hike. >> a big change from the fed. >> definitely caught up with the pace of rate hiking the next couple years. >> the fed needs to send the message it is going to crush inflation and do it as fast as possible. >> it was the fact we are seeing inflation expectations starting to become a little more suspect. >> the question is will they be able to deliver on the path they have laid out? >> i think the fed forecasts are still remarkably optimistic. >> all the numbers they throughout

dani: this is bloomberg daybreak: americas. -- bloomberg daybreak: americas. these are the stories that set your agenda. tom: the ecb will pave the way prince first rate hike in over a decade. state street slides after refusing to comment on a plant does report it plans to buy credit suisse. shares jumped. trade rebounds, china's export surge as covid disruptions ease. inflation concerns still way on asia stocks -- still weigh on asia stocks. dani: that to get a bit of reprieve this morning. that trade coming in stronger than expected. asia stocks down .25%. hong kong tech done more than one point 4%. it has done better in recent days given hopefulness around regulation. s&p 500 futures, not too much to talk about here. same goes for nasdaq futures, which are underperforming. inflation is going to turn to inventories building up. following through to the european future session. tom: currently down .4% after two days of losses. looking ahead to that key decision for the ecb. expected to end the purchase program. we will leave it there for now. in terms of what

this is bloomberg. ♪ >> this is bloomberg markets. i am a two. -- medical group to -- our group >> keeping you up-to-date with news around the world, i am rit ika gupta. -- it is the same system the u.s. uses to protect airspace. ukraine can knock down only a fraction of the missiles that russia launches. it is the first ever criminal conviction of a swiss bank. credit suisse is convicted of failing to prevent money laundering by a bulgarian cocaine trafficker. switzerland's top criminal court find them $2.1 million. committees hit headwinds after dominating supply. bloomberg's index -- in a new note, goldman-s ls say they are going down but not falling. global news 24 hours a day, on the air, on quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am rich could group to -- our ritika gupta. greg: we are joined -- kailey: we are joined by jon voight jr.. -- john boyd jr. he is joining, from virginia where danny and i are from. fuel costs, labor shortages, what challenge is greatest in your mind?

i am vonnie quinn, this is bloomberg. >> look right here, bloomberg markets were look at this mass exodus from chinese developers offshore bonds. part of them downgraded to junk. >> telling us why they are underweight in equities and u.s. credit despite a near-term recession that is unlikely, this is bloomberg. ♪ >> really get a deep down -- when the financials are greatly ability to apply credit. i didn't expect that to happen this time. i expect a mild recession like 1990 or 2001. alec the deep recession of 1774. >> i think we are now back into a period where it does matter, where the fundamentals of earning and the fundamentals of margins in the fundamentals of inflation, interest rates and put that altogether in terms of appropriate evaluation models would make a big difference for investors going forward. >> former investment strategist of goldman sachs. we'll be hearing from bloomberg opinion contributor, there is a bond market advancing a last 20 flowers were seen a one present moved to the up yard -- last 24 hours we have seen a 1% move to the upside. >> a bit of a freefall when

this is bloomberg. ♪ >> in silicon valley and beyond, this is bloomberg

this is bloomberg. haidi: hong kong's outgoing chief executive carrie lam says hotel and teens have heard the city's status as a financial habit, and she says the government could have prevented elderly covid deaths with a stronger vaccination drive. however, she refused to apologize. >> if you look at the past two years, before the fifth wave hit us, for a period, hong kong was ranked the world's number one in terms of normalcy. that is when other countries and places were imposing the stay-at-home permits and lockdowns and closed their airports and so on. we were, by and large normally. but since the fifth wave hit us, and it hit us very hard, particularly in terms of the number of deaths -- >> we went from 300 to 9300 deaths. >> we had to be extremely cautious. at the same time, because of the trust visibility of omicron and the mildness of this virus while other places were opening up. by comparison -- i am a person who believes in relativity. everything is relative. when people are opening up in ho

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this is bloomberg. ♪ coming up, prudential's chief market strategist. this is bloomberg. ritika: keeping you up-to-date with news from around the world, here is the first word. ukraine will get advanced rocket systems and other weapons from the u.s.. president biden made the announcement in an article published in the new york times. the rockets will allow the ukrainians to hit targets up to 1500 miles away. ukraine has promised not to attack targets inside russia. governor kathy hochul and legislative leaders until raise the eagle aged purchase an ar 15 to 21 years old. they also say they will pass a package of measures to tighten gun laws this week. officials cited the recent shootings in uvalde, texas and buffalo. the peso rallied after adolfo hernandez declined to secure a place in the election this month. that reduces the chance that a leftist will be the next president. hernando is something of an unknown, but is seen as a safer bet for business interests. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and ana

this is bloomberg. shery: still ahead, commonwealth bank tells us why japan's current position will have greater influence on the yen's direction than interest-rate diversions. but first, a look into where opportunities lie amid all these inflation concerns. sgmc capital joins us next. this is bloomberg. ♪ >> as i have said many times, we think the greater risk by far is deflation. deflation cyclically. i'm talking about now, because this inventory issue highlights the cyclical reason we think inflation will unravel. the secular deflation story is very powerful. haidi: cathie wood speaking exclusively with ed ludlow. let's take a look at australia and new zealand. bonds, we saw kiwi bonds, yields at the highest since 2015. the next level to watch is around 3.95%. above that would be an eight year high. the last time we saw anything above 4% was back in 2014. as we had the rbnz flagging they would start selling debt. also watching australia extending the drop we saw on wednesday, close to topping its a

bloomberg economist. this is a move that may or may not actually completely change the dynamic for the pound. the political obligations. how much information do we -- did we actually get today? >> the markets basically don't care, unless this leads to a general election. the vote takes place between 6:00 and 8:00 p.m. remember, it took 15% of conservative mp's to trigger the vote, but it's going to take a majority to oust boris johnson. that is 180 mp's. he had a try -- he had a private meeting earlier today. on his way out, many think he is going to win. this is the culmination of months of speculation about boris johnson's future. with the queen's platinum jubilee ceremony over the weekend, boris johnson was booed as he walked over the steps of the cathedral. the 54 mp's that triggered the vote have decided he is so in popular with the population, he is no longer the electoral office he wasn't 2019. >> it also seemed like boris johnson, a very strong advocate of brexit as well, when it comes to the mark

i'm vonnie quinn, this is bloomberg. shery: helsinki and budapest are being targeted with the push into europe. we speak exclusively about the airport hospitality group expansion plans in our generation x series. this is bloomberg. ♪ avon: the airport hospitality premium group open new lounges in frankfurt, helsinki and edinburgh as it looks to make the most of its uptake and travel with a push into europe. the group has me and assist in places like hong kong where it already has an established presence. i'm bringing in the director of development in one of the second-generation striving the firm through this pandemic. he speaks to us exclusively through generation x. obviously the world of emerging post-covid, i'm wondering how are you seeing the travel industry recover now? what are you most excited about at this point? >> good morning, first of all, good morning from dubai. certainly, i definitely do see that the industry is going through a very turbulent time because of covid-19. before in the past, two years ago,

this is bloomberg yet. -- this is bloomberg. alix: elon musk said in an amended filing he believes that twitter is breaching their merger agreement by not providing information about spam and fake accounts. twitter stock down now by 3% or get mark lehman, jmp securities ceo, specializes in investing in tech. there's a lot of stories to focus on. tech is up, but twitter is down. it feels like this is the latest step from elon musk to get out of this twitter bid. what do you think? mark: i think you are right. i think it is either his latest attempt to get out of the trade or reprice the trade. it will also be in a norma's test for delaware corporate law because so much of this is so foreign to the way most transactions take lace. you reported the spread between the actual deal price that was announced and where the stock has been trading for quite some time is large. i think the street doesn't expect that to take place, but every week we have a new tweet and a new twist, if you will, and this is no surprise because i think the st

this is bloomberg. shery: still ahead, we will hear what dr. martin schulz of fujitsu thanks as the boj -- ellen hayes then tells us where she sees opportunities and a bear ravaged s&p 500 outside their traditional growth and tech sectors. this is bloomberg. ♪ >> this week is fraught with peril. >> inflation is the achilles' heel of markets. >> markets believe the fed will be forced to get more aggressive than expected. >> i don't think a 75 basis point hike is out of the question. >> there might be an initial selloff from a 100 basis point hike, i think there will be a rally. >> this is the time to be selective. i would not sit on my hands. >> there are opportunities in areas where one can position. >> pockets of stocks that have been proven. >> the credit space in the u.s. looks good to us. >> equities, i am still pretty cautious. >> it does not have to be about the u.s. shery: some tv guests from bloomberg. the fed's policy decision and buying opportunities. our next guest says she is moving toward

this is bloomberg. ♪ manus: rishaad: your back with bloomberg markets. paul speaking at the ecb form and portugal, outlining those risks to global markets. >> is what we see is a redivision of the world into competing geopolitical economic camps, a reversal of globalization, that certainly sounds like lower productivity and lower growth. in many parts of the side of that, you see the aging demographic, so a shrinking workforce, bc economy is growing more slowly. those workforces are not expanding. that is a possible outcome. >> in the shorter term can the u.s. economy deal with interest rate hikes? >> the u.s. economy is in pretty strong shape. if you look back a year, we grew more than 5.5%, it was the big reopening. we expect this year, that growth would moderate to a more sustainable path. we are raising interest rates and the aim of that is to slow growth down so supply will have a chance to catch up. we hope growth can remain positive. if you look at the strength of the economy, household have excess savings from forced savings from not being able t

bloomberg's emily chang. tune into bloomberg technology later today for a special report from wwdc. definitely join emily for that. that wraps it up for me and guy. coming up, jason furman, former chair of council of economic advisors, will be joining "balance of power." this is bloomberg. ♪ announcer: from the world of politics to the world of business, this is balance with david westin. announcer: from bloomberg's world new york truck tv and radio audiences worldwide, welcome to balance of power. monday,

this is bloomberg. ♪ >> welcome to bloomberg markets. kriti: we started the session with green on the screen and quickly turned around. such a scene, such a landmark of weeks. the s&p 500 is down only to tense of 1%. that is a big deal, given the volatility we have seen it year to date. look at the nasdaq continuing to underperform. the stocks that were leading you higher in the premarket are leading lower in the regular session. outside the u.s., in canada or even let america, you can see real outperformance. the question is, is this an america story or will the rest of the world catch up? jon: certainly in the canadian market, there is the energy influence. we are seeing oil prices back up today, hovering around 110 dollars per barrel. when you look at the s&p 500 leaderboard, it is littered with energy companies, examples like marathon oil. technology is still a concern. if you've got news that is not all that inspiring for investors or, in this case, coming from the analyst community, whether it is fc or coinbase, those are taking a

this is bloomberg. shery: still ahead, a venture-capital firm's founder tells us exclusively why he is excited by the opportunities in new enterprise software services that aid companies' digital transactions. and some rotation ideas for treating stagflation. a discussion on that next. this is bloomberg. ♪ >> a recession is inevitable at some point. >> it is almost unavoidable. >> the odds are there is going to be a recession. >> seeing a cooling of the economy is something we believe is appropriate. >> as to whether there is a recession in the near term, i think that is more likely than not. >> we will have a tough period. >> over economists as you noted this morning have increased the odds of a recession this year, but really focused into next year. >> if we can stabilize the energy market, i believe, and the fed does their job, we will have inflation under control. >> inflation is not going to cure itself. >> there will be more surprises and more shocks coming from central banks. >> inflation is qu

this is bloomberg. ♪ >> this is the most difficult job in politics. >> i would say it is unprecedented and unique. i cannot find many situations where the head of the government has two buses. -- bosses. >> is there anything you would like to apologize for? >> no. >> the committee decided a larger increase in the target range was warranted. >> we believe it is necessary to increase rates today. if you look at our inflation forecasts, inflation is higher. >> we see greater evidence the current level of inflation is becoming embedded in pricing behavior and way to setting behavior by firms and workers and that will be the trigger. >> the calibration of this rate increase will depend on the updated medium-term inflation outlook. >> if we raise the yield ceiling in the current circumstances, we would expect long-term yields rise above 0.25% and that would weaken the effect of monetary easing. we are not planning on doing that. by the end of the year, i expect inflation to get a 7%. that is a high number.