earlier i sat down with citi cea jane fraser. listen >> recession 2023, with '24? >> i find it hard to see the u.s. not entering a recession in '23 just because of labor market, the strength of the balance sheets. >> you don't >> i don't see it happening until '23 at the earliest and then we'll have to see how the next few months unfold anyone who says certainty on the economy right now is a good fortune teller. >> one more on inflation it sounds like you think the fed will have to do more on the inflation site than the market is currently expecting versus less >> yes, we expect to see more. to be at least 200 basis points higher this year over where we are already. i think the good news is that the market's reaction to it, while it's feeling volatile, it's not disorderly, so, have a look at the equity markets at the moment when we look at our bloox, the investors are reducing down the asset class. it's not a sprint of chaos to the door >> it feels painful, though. >> it's painful but orderly and a very, very important distinction. >> no liquidity issues that you a

citigroup chief executive jane fraser speaking with bloomberg. we have more on what is going on coming up. certainly looking at also the reserve bank of australia as it is set to make its next rate decision in just under two hours from now. an hour and 49 minutes. we're going to have a look at what that means for the markets and beyond. with pinnacle investment management. next. this is bloomberg. ♪ haslinda: welcome back. co founder and coe is warning of a volatile ride for markets, speaking at the milken institute global conference, he says that that she told bloomberg we are likely to seek a big correction in technology stocks. >> i think we're seeing things correct. we're a long way from means or medians in the equity market we are 30% from the median which is pretty scary. and the credit market we also a long way to go. but i do think that the mentality with which investors have focused, they have been lulled into this sense that everything is supposed to go well because we have had one could say 30 plus years of declining rates, but extre

coming up, the citigroup ceo jane fraser joins bloomberg markets at 2:00 in new york. this is bloomberg. keeping you up-to-date with news from around the world. here is the first word. in india, blistering heat wave has forged wheatfields. that is were duce -- that is reducing yields to the world's biggest grower. it could be a blow to global wheat suppliers. russian billionaire is reportedly in hiding after criticizing his country's war in ukraine. he told the new york times the day after his instagram post on the war that vladimir putin's administration contacted his executives and threatened to nationalize his bank. he tells the times he ended up selling his 35% stake to another russian billionaire and what he called a fire sale. coronavirus lockdowns and china are taking a toll on the country's economy. over the weekend data showed manufacturing and services activity plunged in april to their worst levels in more than two years. global news 24 hours a day, on air and on quicktake by bloomberg, powered by more than 2700 journalists and analysts in over 120 countries

even as they get a downgrade, jane fraser was on the network this week calling bank stocks unlds undervalued and that was one of the catalysts too along with jamie. >> there's a lot of cross currents in terms of news. citi's main run was fueled by the disclosure by berkshire hathaway that it had taken a $3 billion stake in citi. on top of on monday jpmorgan increased its guidance in terms of net interest income which is an important profitability metric for banks like citi and jpmorgan they're helped by higher interest rates and the market had really been trying to assess kind of the push and pull between higher interest rates, which are a tailwind for that type of a business, and just the issues surrounding the economy, the risk of recession and so forth for much of the year, at least since mid-february, it's this idea that the recession risk was front and center for bank investors. this week that really flipped and you can see in the week to date performance, jpmorgan up 11.5%. bank of america up 9% for the week wells fargo up 10% that's because rates are back in the forefront for these in

jane fraser said she expects a recession in europe. our banks supporting the demand? steve: that is a concern. no one can predict how this is going to play out. one of the businesses that has been a big driver for banks has been mortgages, people buying houses like crazy. if higher interest were to come, that would decline. help much of that would be additional business for banks? -- how much guy: if we are going to get a recession, presumably the provisioning side would have the rights to the banks. could that offset the benefit of getting out of negative rates? steve: the current forecast on that is that most banks still expect the euro area to avoid a recession. there will be higher provisioning than last year, but it would not upset a positive effect of positive interest rates. alix: thanks a lot, appreciate you making it down with us. this is bloomberg. ♪ >> -- energy investment strategist is warning the strong u.s. dollar may be vulnerable. >> for the dollar to stay supported, we need to continue getting enough capital to offset that. we think there is a growi

tom: ken griffin and jane fraser among the speakers at beat milliken global conference which focuses on confronting the issues that keep us apart. let's keep across the bond markets, the rba hiking more aggressively, a 20 five basis points versus expectations of 15. and looking ahead to what happens with the fed decision on wednesday and currently the sella party pronounced across the bond market. the two year in the u.k. with a jump of around nine basis points, 10 basis points the 10-year gilts. the german ten-year justice mitch pint -- a smidge below, a four basis point move in terms of the german two-year. italian btp's with a three basis point move. francine: deep breaths, what you make of the bigger than expected rba rate hike, and is it barely expected? scott thiel: the inflationary environment is global. central banks move in the same direction. i don't think one central bank necessarily cares what the other one does. francine: really? scott: if the fundamental drivers are the same. talking about europe for a second, the inflationary impact is very different than in the u.s. g

fraser of citi is one of them. but europeans don't think it's going to happen. and the european commission told cnbc he's confident in the bloc's recovery and it won't slip. >> the consequences of what's happening in china are already there in the slowing down of trades and, of course, for an open economy, as we are, trade is very important for some european member states, is particularly important and so the slowing down of trade is already having consequences. the concern on the future perspective, how will the really state situation in china evolve is already a concern for us overall. i think that we should still make all the possible effort to keep the low level of growth that we have going because we are not destined to a recession. we still have a good carry over from the expansion after the covid crisis but, of course, in very troubled waters so how we will manage this transition phase will be crucial to avoid the recession my take is that we still can avoid recession in europe. >> the -- that's a very inter

in an interview with bloomberg news, jane fraser talked about volatility, saying that her trading desks are seeing volatility they haven't seen in decades and she cited rising inflation and concerns about recession risks really adding to the market uncertainty. let's get to amazon, one of the biggest stocks in the u.s. equity market, eking out a positive gain to finish the day, down a bit in the after hours. but it fell almost 5% on the intraday basis after that big earnings report that disappointed a lot of wall street on friday where they fell 14%, their biggest intraday loss since 2006. interesting to note that even after that report not a single equity analyst has changed their recommendation for the stock. whether it is by, hold, or sell, there hasn't really been any movement, suggesting the report didn't really move the narrative . there's also big union news that i know you're going to get to. no big news so far how that has impacted amazon stock prices. emily: turning out to another part of the narrative with workers in new york voting not to join an upstart union weeks after th

this week, whether it is jamie dimon at the shareholder meeting or not, jane fraser with sara eisen, bank of america up 8%, jpmorgan up 11 goldman 6.5. wells 9.5. don't like those, how about they can. apple up 7.5 this week percent microsoft the same alphabet up 2.5. amazon up 5. nvidia up 10.5 retail numbers were up a hell of a lot, too what's the take away >> each sector has its own motive forces. start with financials. really what's going on there is a tug of war whether we go into recession, scott, or whether it is a scare of growth slowdown. if going into recession, that's why bank stocks have gotten clobbered. the worries about credit concerns and losses. otherwise, you look at a steepening yield curve, higher interest rate. should be great for the banks. but you've seen them rally this week on potential that perhaps the fed is not going to crush the economy. that's the financials. i happen to belong in financials, i believe we are not going into recession in tech and discretionary, the faang, apples, i think it is a relief rally i don't think they deserved to be hit as hard as

jane fraser is doing a great job in the transformation. it is not easy, not a quick fix, but this is a stock that's been inexpensive probably for the right reasons, a lot having to do with exposure internationally. that's what she's out there trying to accomplish as quickly as she can, doing the right thing for the bank, but to get rid of that and jettison that and to be a u.s. bank we expect them to be because of that, now is a good time to enter here where the multiples are, to book multiples, this name is cheap. cheap for the right reasons. if she's able to pull it off, one of these names could get back to one times book that would mean the stock has room to the up side, scott book value now is 92 when i look at that versus jpmorgan, bank of america and other names, it is extremely cheap. like i say, cheap for the right reasons. after they get through the process maybe, just maybe this is a stock that has plenty of room to the up side. >> mike mayo, sound bite is ready, i am told mayo on the perception of the banks by investors and what

jane fraser is sitting down with bloomberg's scarlet fu, so that conversation is happening in the tower. a couple of things stand out to me from that conversation. marc talking about the fact that he think's credit is going to come through this relatively unscathed, and talked about a more benign environment relative to 2008. it is hard to imagine a more difficult environment than 2008, but we will park that one for the moment. he talks about the fact that tech, growth stocks and if it from low rates, and the correction is really ongoing and growth stocks, including tax. does that fit with your view of the world? gina: i think it fits with the view of most investors right now, with the exception of maybe credit. i thing there's more nervousness emerging for credit, and particular high-grade credit, certainly performing very poorly this year. certainly investors are capitulating left and right on tech. the does still appear to be more to come on that trade. the other thing i think he said that is really reflective of the overall investment universe right now is this idea that you cannot

jane fraser no surprise thinks her stock is cheap because it's really, really cheap, way under book value and has been for a long time. >> the investment banking side of the business, the equity side of the business could be in for more trouble pinto said he expects the next couple of years he expects market volatility. that's a long time for market volatility to last. >> it does go in longer cycles, although it seems like we rush to a place here, down 20% on the s&p. bond volatility almost off the charts outside of crises, so it seems like the market has gone a long distance toward kind of handicapping that type of environment. capital markets, looks like it's still not a place where people are willing to go out on a limb and say things are going to get good any time soon >> don't miss more coverage, by the way, from davos tomorrow on cnbc including sara's interview with the ceo of micron at 10:00 a.m. eastern time. >>> shares of vmware is in talks to be acquired by broadcom it could be one of the largest mergers ever in the tech sector. frank holland joins us frank, broadcom is a serial

. >> jane fraser of citigroup. that will do it for us here on "squawk on the street. "tech check" begins right now. ♪ >> good monday morning welcome to "tech check." i'm john quint nillia. may day for madness as the tech tries to calm its longest losing streak since the dotcom bubble in 2001. who is the next potential takeover target? vmware according to some reports. we'll break down the latest share surge on this potential deal with become more on ea's take over dreams, tech's shift into stocks and a whole lot more, stocks and targets this hour. >> yeah, carl. we'll start with that potential shake-up in the semi and software world sources telling cnbc that b broadcome is in talks on vmware. it does paint a picture of the m & a environment at this moment in 2022 after a record $5.9 trillion worth of deals last year, sinking valuations could mean some bargain basket prices for companies with the cash and the value of m & a deals in the first quarter fell by more than the first quarter. we'll talk more about ea which has been shopping itself around for a deal john, i