with jp morgan asia pacific ceo. you will not want to miss this fascinating conversation. let's get to vonnie quinn for the headlines. >> north korea says they are deploying army to get medicines from the pharmacies made covid. state media says more hundred more -- more than 259 thousand new cases were reported monday. tim young own blames officials for not -- kim young own blames officials for not properly following his orders. export but charles -- export controls. >> stable coins are something all regulators are looking at. most stable coin use is perspective to in and out of cryptocurrency and people wonder if it will be one they use for consumer payment. many think it is not ready. >> biden has authorized the u.s. military to send troops back to somalia. u.s. officials say biden has given authority to specifically target some leaders in somalia. heat waves could ease further in india. temperatures soared to 49 degrees celsius over the weekend. it put crops and power supply at risk. global news 24 hours a day on

that's the asset management arm of jp morgan. it was already approved last year, so are working with partners to create new products. and we are diverse in wealth management and asset management, two of the strongest growth drivers for activities. all legal entities are important. as you know, we currently own a futures and options companies on the ground. and the internationalization of those contracts. and fixed income in equities have been the primary drivers for client support. stephen: what struck you the most about the lockdown? this is unprecedented for a city of 25 million at the center of finance for mainland china. what really stuck out to you? mark: it was a big challenge. it is still a challenge. but i think the fact that our team home on together to help our clients and as i said, the experienced has been seamless. the fact that many clients actually praise what we did for them, for instance, using the signature, finishing the trade payment, the wiring of funds to the headquarters offshore. i think -- you know, you s

jp morgan for a has huge ambitions to grow there. toward the end of last year, it had about $20 billion in exposure. it's just won approval last year as well to fully own security center there. the country presents an opportunity for many in the industry, blackrock, too, started to own its venture in the company, goldman sachs did similarly. it is complicated for banks that are trying to expand, navigating this very sensitive geopolitical climate. jp morgan knows this very well. that is more than others. the ceo made a quip about jp morgan outlasting the communist party, which he was forced to say he regretted. it is a very complex situation in the country. banks have to navigate this tricky path very carefully. >> we remember the strap ubs found themselves in as well back in 2019. sally bakewell there, with the latest on the story. same with china, the head of the who, with a rebuke of china's covid zero strategy, saying the efforts will not work, to completely eradicate the virus. stephen engle is in hong kong with the latest. what

jp morgan is cutting theirs as well. it is scary out there. speaking of something that may be array of sunshine, china invite -- dividing investors in terms of their look at the covid lockdown. we will have more on that in a bit. this is bloomberg. ♪ manus: this is "bloomberg daybreak: europe." let's get first word news. juliette saly in singapore. juliette: bloomberg has learned that the eu top regulator -- into the european union after they split. ecb, known as disk masking -- mapping. they have found capabilities in the region. target shares plunge the most in 35 years after a cut in the forecast due to soaring inflation. there is little sign of easing. target profits are supposed to come in basis -- two basis points lower than the forecast. tencent shares tumbled elite trading after warning of sales in the quarter. they blamed it on left out in china and the war in ukraine. now they state revenue -- by as much as 5.5%. global news, 24 hours a day, on-air and at bloomberg quicktake, powered by more than 2,700 journalists and analysts in m

jp morgan analysts have upgraded china tech. let's get to the nuts and bolts with -- the global china summit is underway. stephen engle and a special guest with him. take it away. stephen: our special guest is the asia-pacific ceo of jp morgan. thank you so much for having us here in joining us. obviously, things are relaxing, it's been a tough year for the chinese economy. have the economic headwinds -- 2021 saw pressure on tech companies, added pressure on property sector, gaming companies. has that made you rethink the pace of expansion in china? guest: thank you for being with us again. the answer is no, it has not made us change our strategy which is based on a long-term approach of following clients, and resting -- investing in china, both foreign and local clients. we hope by the end of this year, we will have an increased platform in terms of licenses, onshore presence, so on and so firth. -- so forth. stephen: do you sense caution when it comes to investing in china, or is that a short-term concern? guest: there are com

what is the power the saudi soul given the jp morgan view -- saudis hold given the jp morgan view? christyan: when we launch our bullish view 2020, i was speaking to the saudis and they were still investing in the wells so that when needed they could switch. i remember the summer of 2020, why would we need the wells? we had too much oil, demand is 75 million barrels, but they continued to invest in total capacity. there we are two years later and now we need those barrels and the only one available are the barrows because they invested when everyone was not are the saudis. lisa: if we get six dollars per barrel, six dollars per gallon of gasoline, i'm trying to wrap my head around that. we get demand destruction? have we reached that point or will it keep climbing? christyan: short answer, no. i think we can cope with those prices, i thing we can cope with oil prices significantly higher over a period of time. coming back to the report we did, one thing we discovered is the resilience of emerging markets to a higher prices -- to higher prices. this is not about why cycle to work or

we've got to get a quicker flexion to jp morgan. when you are getting punched on your pay, you give the market what it wants, net interest income. that's what jamie dimon did, he gave it aplenty. up 26% on the last year. yes, there is a risk of recession, isn't there? it bolsters the whole narrative around the growth to value. dani: exactly. i find this interesting because in order for j.p. morgan to do well, you need a certain kind of recession, which jamie dimon says it might not be as bad given the economy i manus: this is "bloomberg daybreak: europe." these other the stories setting your agenda. dani: the rally snaps, after snap slashes its forecast. but jamie dimon says strong clouds over the u.s. economy may dissipate. >> strong economy, big storm clouds. i'm calling them storm clouds because they are storm clouds, they may disavow. it was a hurricane or a tsunami, i would tell you that. they may not dissipate, we are not wishful thinkers, and honestly wanted to turn out well so we can handle all of that. dani: hike first, ask

coming up, jp shareholders -- jp morgan shareholders reject a proposal for payment for top executives, dealing a blow to jamie dimon. this is bloomberg. ♪ tom: welcome back to the open. 23 minutes into european trading day. the games we have seen across the european stocks have become less convincing. the s&p 500 and the dow are lower. the nasdaq posed gains of 3% yesterday after the close. francine: jp morgan shareholders have rejected up a proposal for executives. this is doing a blow to jamie dimon. joining us now is david gatlin. why did that package get rejected? >> i suspect -- this is unprecedented for the bank. this is goes back to 2009 when it gave investors a chance to stay on plane -- pay and this goes back to last year where the board was concerned that dimon might leave the bank or retire. they sweetened the pot to the tune of 50 million dollars in options and other compensation to bring his total pay package to $84 million. it did not sit right in this environment of it -- of declining share prices. one of the worst performing wall street bank stocks of the two advisor

this will be the jp morgan summit throughout the day. so much to talk about. what do you think will be the key themes? >> we will be talking to a number of different guests from different parts of the challenging economy including in shanghai. we will be talking about the american chamber of commerce shanghai chapter. we will be talking about the covid situation and the lockdown . shanghai is raising three consecutive days of the transmission. this is relaxing, a lot of the lockdown and restrictions that so many people are still under the strictest form of lockdowns. that is key. the lockdowns are absolutely taken an economic toll on china's retail sales. we were expecting a slight gain. obviously we need to dissect from the jp morgan guest we were speaking to -- we are going to speak to. >> stephen engle in hong kong and another change of heart from jp morgan ahead of that summit. turning positive on the chinese stocks including the likes of tencent and alibaba. this coming after that on investable call sent shivers alongside the investment community. we will

jp morgan now down to 123 after the fed meeting. jonathan: we can now catch up with jamie dimon oh jp morgan sitting down with cash. >> as london, we cannot be more pleased. today we are expecting 50 basis points. what happens to rate hikes? is this your biggest concern? >> very strong u.s. economy. jobs are plentiful, wages are going up but those are good news. the fed is going to have to raise rates and reverse qe. we were at the summer they moved the better. the candidate -- yes they can engineer a mild landing. -- a soft landing. everything slows down and it is six or nine months. there is a chance against much higher than that. in the face of all that, you claim, huge global issue. francine: do you fear the fed or policy to the fed? jamie: i am not afraid of the fed. america needs very good domestic policy to improve the growth economy, which makes the fed job easier. that is about regulation, rules, policy, improving projects and things like that. you have two increase the supply side opposed to the demand side. the fed job wi

jonathan: let's look at the battle on the sale side between jp morgan and morgan stanley. they want, get clear this bear market is far from complete. jp morgan and the team saying we continue to find too much negativity in equity and credit markets. tom: it is a battle. i don't have a strong opinion either way. i'm looking at the correlations of the market. it is great that can rogoff will be with us today with -- that can rogoff -- that ken rogoff will be with us today. jonathan: before we get to that, we need to talk about this market. in the united states, a three year 10 year treasury briefly for the first time since 2018. big moves for the rba and australia as well. lisa: they are expected to raise rates by only 50 basis points and the raise rates by a quarter of a percentage point. what i'm looking at now is people are starting to bottom feed in stocks because bonds are doing so badly and because people see them as potentially doing that much worse. basically, how do we normalize at a time when inflation is at a pace we have not seen going back decades? that really s

jp morgan continuing to say to buy risk assets. tom: when it comes to the crypto markets, we are talking about 30,000 for bitcoin and other stablecoins being untethered from its peg to the dollar. as the drama -- where are we on the unfolding of volatility in the crypto space? >> the speed of what happened last week, investors are reeling with that and trying to find, where does crypto fit as an asset class when all this is done? the fact that things have stabilized for bitcoin around the 30,000 market is a sign of relief in that you are not seeing the level of fear that you saw last week. francine: on food prices, wheat is nearing a record high and there is concern that countries will cut down on exports. what does it mean for food inflation? >> it could increase the problem that central banks have and you saw the boe talk about that yesterday as well. it is not something that interest rates can fix and as long as you have the supply disruption in ukraine and you have places like india putting export curbs, it is a difficult situa

first on the list is jp morgan the big bank down just over 1% today. also on our list today, the telecom giant verizon and health care company novartis. both trading higher this afternoon. these are clearly mega daps with low pes. joining us to talk about them, david wagner, portfolio manager. let's start with jp morgan, shall we, dave what do you think of that stock at this price? >> yeah, we're definitely doing some dumpster diving today but you could not look at jp morgan from a pe perspective in my mind. given the volatility around credit reserves or if they're starting to build them like they started to do this past quarter. one must look at jp morgan through the price to book lens and if you don't that, i don't think the stock looks all that appealing. we remain underweight banks right now. we're expecting that credit spreads will continue to widen as earnings expectations see large hair cuts across the entire market and wider spreads could punish bank valuations and so typically economic growth and rates move together so banks have either dual t

jp morgan says fair value is up $38,000. dollar-yen, i think for me, two -year paper and dollar-yen tell me something different about risk. this is the dollar down, yank strengthening. the u.s. rate hikes will not necessarily keep weakening the yen, according to the bank of japan governor. 70% of firms expect 1.20 or below in their outlook on dollar-yen. oil markets up. dani? dani: biden even telling some of those oil refiners to start up again in the u.s. let's get to our top stores around the world. in a moment, we will have juliette saly bring us up to date with that rally in chinese tech stocks. we have bruce einhorn taking a look at antony blinken's -- on china and the international order. manus: paul dobson runs us through this u.s. stock rally and we have crystal tse on the deal at the top. let's circle back to chinese tech. the biggest jump in alibaba and baidu, both set the sales agenda but they are nervous about the outlook. let's get to jules. juliette: indeed. i guess the key point is the fact that, is this the e

jp morgan shareholders have rejected a paper for -- pay proposal for ceo jamie dimon. it wasn't that long ago that jamie dimon got the pay package approve that was pretty hefty. why the change this time around? >> i think they've just gone a little bit too far. the board was concerned that maybe jamie dimon should retire at 65. so they sweeten the pot, bringing his total package to $84 million. the proxy firms both recommended investors rejected package and they did exactly that, resoundingly so. the bank is really going to have to consider their next step here , it's not a binding decision at all, but it is an embarrassment for date -- for jamie dimon. manus: i'm curious to see if it will be a long-term incentive, deferred compensation, driven out over 10 years with a vesting period. what really pains him probably, his buddy across the street, david solomon got a 90% bonus. is this significant? >> clearly the bank doesn't have to do anything on this, it is nonbinding. but it does suggest they will have to reconsider this next time. it just have implications for the re

jp morgan's mark alanna much thinks we are pricing in risk. tom: of course, we are on our way to davos. of course, the song will echo across happy valley, "the hills are lies with the sound of gloom -- "the hills are alive with the sound of gloom." price down, yield up. lisa: that has really been what is driving the gloom in equities because it is a full sail repricing. when it comes to retail sales, what is better or worse for the bond market? if we get a good retail print, does the fed have to do that much more to crimp demand and some of the inflationary pressures? if we get a weak print, is that a good thing because it means perhaps we are starting to see some moderation in some of the trends? things are getting flipped on their head in a major way. jonathan: -- tom: it is the fifth time they have done this, an ipo here in the oil boom for aramco. jonathan: the trading unit ipo, something they are apparently considering, according to our sources. they are lining up the banks. jp morgan, morgan stanley for that potential trading unit ipo. t

dani: the ceo of jp morgan there. or more, we are joined by the director of research at energy aspects. jamie dimon talking about a need for a sort of the marshall plan for american energy. there is a huge move on the american energy sector. diesel prices have gone absolutely parabolic. supply, storage and stockpiles at a 2008 low. this before we possibly get an eu ban on russia, how does this play out? amrita: i'm glad you've asked about diesel prices. with all the focus on crude prices which are high but not as high as product prices, the market misses the point on how tight fundamentals are. crude is lacking other products. you've got recessionary fears, concerns about chinese growth. a lot of the spr, 90% is crude-based. and there is refinery maintenance. product prices, particularly diesel, we have a serious problem in resupply. even when refineries come out of maintenance, we expect them the thousand -- demand is growing if you look at southeast asian demand. it is absolutely surging because this is the first ye

the jp morgan strategist saying that some markets are overpricing the chances of recession. meanwhile you have goldman seeing risk assets remaining flat. dani: we are all excited you're going to stick around for longer. at the same time we have elon musk telling us that the u.s. economy is probably in recession which will likely last up to 18 months and that is after all of that, we have the fed president of philadelphia saying that they are too slow of reacting to inflation. we speak with our guest, wouter sturkenboom, chief investment strategist at northern trust asset management. your macro review is not changed, so what are all of these doomsters getting wrong? wouter: this environment is a tricky one to navigate, and we all agree that growth is slowing down. will it slip so far into recession that we're going to end up in this new macro environment that will drive market to lower levels than we are today? that is where we see they are a bit too doomy. we think the markets are fairly well pricing the recessionary risks already, but there is a downside risk. but if you lo

i mentioned the jp morgan note earlier. they're looking at six dollar crude later this summer -- six dollar gasoline. tom: is hazardous to try to game this out. much of this has less to do with the war in ukraine and much more to do with microeconomics. jonathan: providers produce more gasoline ahead of the summer road trip season, building up inventories. this year u.s. gasoline inventories have fallen. tom: harsh headlines. russia expels 34 french diplomats in retaliation. jonathan: anything else? tom: i don't know what to make of that. the work continues. slog forward is not the right word. annmarie hordern joins us now. she has been getting up-to-date on our domestic politics. an important question with this pennsylvania race is the effect of the right and conservatives on the middle. what did we learn about the middle of the republican party, the middle of the democratic party in the last 24 hours? annmarie: is a mixed bag. we had idaho, oregon, kentucky, north carolina, pennsylvania. you see in some places progressive

, jp morgan -- let's get the breakdown with christyan malek, jp morgan. what companies are most exposed to this? christyan: the majors, bp, shell, and total, but also the companies with smaller revenue lines are going to be more disproportionate given they are more focused on the u.k. as a revenue stream, where is the majors are more diverse. guy: have we already priced into the stocks? they have taken a hit. is this already and? christyan: it is a great question. most of the income of the past few weeks is what about the windfall tax. clearly the cash flow here is not that material, particularly as we have very high oil prices potentially for longer, but from another perspective, the question is what does this mean for government intervention going forward for the u.k., but also globally. the point around travel and arrival with this is even this has been a theme for some time, a question of whether this is more of a relief. alix: we are seeing this with -- christyan: in some ways it is sowing the seeds for more underinvestment. in some ways, with this m

we mentioned some of the research from jp morgan it could hit six dollars later this year. there's a problem the economy for a lot of the people experiencing that in a bigger way and a problem at the white house on how to address it. tom: the economic data gets us to the midyear outlook. you wonder what the midyear outlook is for the president of the united states as he sits down with a secretary of treasury and the chairman of the federal reserve. jonathan: and approaching a midyear outlook for the federal reserve as well. president bostic tina fey pause maybe later this summer. this afternoon was governor water saying no thank you, we got a lot of work to do. tom: i'm going to go back to the idea of the many uncertainties that are out there, and downplayed over the weekend was a china reopening. the headline that flew by 20 minutes ago of beijing schools opening in june. jonathan: pushing through the commodity market, the trend is clear. wti back through one dollars -- ask for $120 -- back through $120. gauging where this economy is and where it is going instrument a slei

jonathan: jp morgan talked up six dollar gasoline. u.s. gasoline prices to break above $16. tipsy refiners produce more ahead of the summer road trip season. the buildup inventories. in the investment bank since mid april, u.s. gasoline inventories have fallen counter seasonally. something javier blas has talked about. he will join us in about 40 minutes. it is a problem. tom: what does that study due to utility bills in the united kingdom with 9% inflation? jonathan: did you see the inflation numbers this morning? utility bills have gone through the roof in the u.k.. tom: where are they with six dollar american gas? the answer is higher. jonathan: things can get worse before they get better. tom: futures -31, and we are watching target this morning as well. thrilled to bring you daniel morris, chief market strategist, bnp paribas. two days after the july 27 fed meeting, the fed will get the pce inflation studies. what are they going to see? are we going to see inflation lessening the end of july? daniel: well, we are looking for peak at least in headline inflation. that i t

david stubbs of jp morgan saying by the bond move, and lisa shalett turning around and saying that is a religion of the growth difficulties still do come. as you get that change and it develops even further, the nature of save -- of selloff in the equity market, that changes too. tom: this is about your belief construct. the call it a set up. you have a set up as a belief of educating -- of executing a trade. but the real issue is you have to have a belief system of which to invest in. that is really what is being asked in here. jonathan: i think we've been tested more than once. you get comfortable with an idea, and then this market punches you in the face. yields lower by three basis points on the 10 year. futures positive 0.9%. i wasn't talking about maria. [laughter] she did the same thing, i'm sure. this is bloomberg. ritika: keeping you up to date with news from around the world, with the first word, i'm ritika gupta. president biden will highlight efforts to stem inflation today at a time when soaring prices certain democrats -- threatened democrats' slim chances of holding ont

jp morgan you to date down about 25%. oldman down about 20%. we go over this to remind you of how money we have seen in the red, the deep red this year. bank of america down 21 percent. mike mayo of wells saying jp morgan must prove to investors that "its superior standards for strategic and financial discipline are still intact." it has been a tough year for wall street. tom: i strongly agree with this. you are going to see a massive honing of business plans and tactical execution going into labor day to get ready for the compensation season next year. i really can't say enough about how much fixed income has gotten hammered. we have never seen this. i've lived this, but this is much worse. your down in bonds. you constitutionally can't buy jp morgan equity. what do you do? you clip coupons. that is the old phrase. you claw your way back. it is a motion in fixed income of clawing my way back that is going to be the story for late-summer. jonathan: how do you claw your way back in the equity market? i think what we often forget is basic math. i

[indiscernible] joining us here in paris, jp morgan -- what happened yesterday? the fed hiked 50 basis points in the first big hike in two years, -- 20 years. the markets are taking as this is a dovish fed. marko: i think the markets have many fears, we may have a 75 basis point hike at some point. what is going to happen with inflation? there are a few comments that allayed those fears. the market had a bit of a rally. keep in mind, before the fed position was [indiscernible] the outcome was not as bad as people feared. francine: 75 basis points, they said it was taken off the table, that will make it more difficult. marko: there's a lot of uncertainty. we've had the coronavirus in the u.s., now in china. we take it one step at a time and see how the inflation progresses. they feel that inflation -- [indiscernible] francine: [indiscernible] marko: we like commodities, some of the emerging markets like china, which are a little removed from the cycle, they have their own easing. their pockets we like, overall on the market, we feel it is going to be a flat year.

and he's helped jp morgan grow into the largest u.s. bank by assets. so what happens now, the vote is nonbinding. the board says they will take into account investor feedback. this is a space to continue to watch, john. >> yeah. certainly there's been some push back about just the sheer size of ceo's compensation packages. interesting this is a step against that. cnbc's julianna tatelbaum, live from london. thank you for all of that. >>> still ahead here on "way too early," we'll have more of president biden's comments from buffalo as he addresses racial ideology and calls out those using major platforms to spread it. "way too early" will be right back. will be right back like pulsing, electric shocks, sharp, stabbing pains, or an intense burning sensation. what is this nightmare? it's how some people describe... shingles. a painful, blistering rash that could interrupt your life for weeks. forget social events and weekend getaways. if you've had chickenpox, the virus that causes shingles is already inside of you. if you're 50 years or older ask your d

jp morgan saying the data doesn't show that. the concern and fear of an imminent recession in the u.s. seems to be overblown. haidi: don't forget we are still technically in the pandemic. it's interesting that many of these economies have moving toward normalizing having to live with covid, it still a major issue. a lot of economists and policymakers have pointed out it has always been a dirty word. neither of the major parties have talked about the implications of what they are setting policy for in terms of long covid. this is creating a snafu for voters. we expect one of the independence will be filing an application with the federal court later today because there is an issue where people who have tested positive may not be able to vote in saturday's election. upwards of 200,000 plus people may not be able to vote. it's a pretty big problem going into what is expected to be a close race. polls suggesting that the prime minister liberal coalition will lose and the labour party will form a new government. paul allen joins us n

jp morgan chairman jamie dimon's weeks with francine lacqua live from the jp morgan ceo summit in london only on bloomberg ev and radio. -- tv and radio. haidi: anz's tops profit estimates and the australian economy recovers from the pandemic. there is still competition for loan growth despite pressure easing when it comes to margins. joining the is shane elliott, ceo and create to have you with us. congratulations on those numbers. can i start with a broader macro question? the rba with the 25 basis point hike. what is the start of the tightening circle mean for your business? does a change for growth and conditions? what is the rba trying to signal here? >> it changes the outlook and we have been through quite a significant point. it is quite a big pivot. we are talking about a new world of inflation. our customers, it is an extraordinary number of australian homeowners that have -- it is a significant shift in the conditions. it is good for banks and a general observation, it is generally positive for margin outlooks. but the counter to that would really be what will the positives do,

alix: should point out that jp morgan just saw euro-dollar testing parity. the dollar firmly in positive territory. digging deeper with kriti gupta. kriti: it speaks to the volatility still at play, the s&p up .2%, but check out the nasdaq up 1%, a fast, serious rebound, and the sep -- the s&p bouncing off a critical level, but i wonder how much this has to do with what you see in the yield space. guy mentioned higher commodities. down six basis points on the 10-year yield. it speaks to that. if you are pricing in inflation, why are yields lower? it is the vergence perhaps that you see between commodities in the bond market and also between the bond market in the dollar, the dollar actually stronger, something we haven't seen in a while. usually we see it coming down off those interest rate differentials, but today, not the case. that will be the asset you want to watch i think. guy: ok. so many assets that i'm watching at the moment. everything seems to be on the move. our question of the day, earlier, we asked someone from goldman if the bubble has burst?

alanna mitch of jp morgan saying the pessimism around markets is overdone. you could see further downside between eight and 16% for the s&p. the 10-year with the move up to 3%. negative real yields back into positive territory for the first time in a long time. the flash crash and yesterday surprised many investors, citi taking that on the chin. the spanish ibex gaining .8%, the ftse 100 lower by point six percent. the italian puts a gaining .7%, and the cac 40 up 24 points. let's see how things are playing out as we look across to other assets in play as central banks by with the earnings. boe on thursday as well. futures is stateside looking flat after decent gains yesterday, april being one of the worst months for u.s. equities in quite some time. bloomberg dollar index not a lot of movement, but the run-up for the greenback is in vocus, and in terms of the yields on german two year you are looking at the. across from what happened with the rba, that surprise 25 basis point hike in the reserve in australia. expectations had been 15 basis points, you saw a

it's not the bellwether that you would associate with, say, a jp morgan >> it's true there are a lot of different cross currents to your point, carl yesterday you heard from jamie dimon who was seen as being positive there you see jp morgan talking about snap as well in terms of what they're seeing. as you said, it was only a month ago and that is taken people perhaps by some surprise that said, when you look back at the cfo's comments from the april 21st earnings call, he did say forward-looking visibility is more different than at any point in recent memory and said there was concern that the environment ahead could be more challenging leading to campaign pa pauses or campaign reductions. blaming these macro conditions mike, i come back to you on this idea as to how much this is going to impact shares of -- there they are of meta and alphabet, twitter which has its own special situation to say the least, and pinterest the market does seem to be taking it more broadly and perhaps should it's not like we didn't see walmart and target not come in where we expected. there are questions

jp morgan seeing a rebound maybe on the horizon. expect global growth to rebound in the second half. and sentiment indicates the labels last seen during the peak lockdown of the pandemic in 2020. and technical indicators, we could have the fear that we are seeing from investors in the market that may have gone too far. the china slow down lockdown. -- and lockdown. this view is not shared by everyone. morgan stanley is quite bearish on equity. expecting the s&p 500 to fall about 16%. and also saying that the worst of the selloff in bonds may be over. as kathleen said, the fed will be speaking at the press conference tomorrow. haidi: our asset editor, andreea and kathleen hayes speaking. in the commodity space, we will be talking about evolution mining. and a global biotech leader will be joining us later. and another interview with anz, what it means for the bank after it was reported this morning that there was a better-than-expected first half profit. let's get you to vonnie quinn for first word headlines from new york. vonnie: ch

we are watching jp morgan as well, take a look at the jump of 6%, the best today since 2020, it was investor day, they talked about the economy. that there was storm clouds on the u.s. economy, but they would dissipate. it helped the risk of sentiment, coming at a good time we continue to see these concerns about inflation, recession, the mention of stagflation in news article soaring in the past few months. >> all of this makes you wonder how resilient these rebounds are. let's look at how asian markets are shaping up, a day before the policy meeting, next -- expectations are for 25 basis points, possibly 50. the aussie dollar and the kiwi dollars or two with the currencies are doing quite well this week gaining 0.3%, just extending the fact that we finish the previous session barely into the green there. kiwi stocks are looking pretty tepid at this stage. >> all of this with what is happening with those chinese tariffs, president biden saying he will be speaking to secretary janet yellen when he returns from asia about lifting them. those tariffs were implemented by the last administration

jonathan: you saw the numbers out of jp morgan. we went through some of them in the last couple of weeks and we could have a cruel summer ahead when it could be a six handle. lisa: many people are thinking it's increasingly likely with gas prices that even if you get a resolution of the locked in china come a positive for growth for gas prices, if you see some sort of ban in europe, that will be negative in terms of the affordability of guest rises. these things are coming together at a time when it seems like viewers are still fending for themselves. do they want to cramp demand? jonathan: have you ever heard biden, powell and yellen described this way? tom: they are like the beatles. lisa: she can call in. jonathan: futures are down, this is bloomberg. ♪ jonathan: live from new york city this morning, futures are negative, down about 6/10 of 1% . a massive week of gains after seven weeks losing streak last week. yesterday, one of the fed governors pushing back and you can see that in the bond market. the two year yield is up by

jp morgan ceo speaking yesterday saying the u.s. economy remains strong. the firm also announcing today it's raising its estimates for net interest income. probably why u.s. banks are as they are today. a lot of pushback of the last few days as a result of the plan to spend more money basically. he's keeping that cost estimate stable saying we will make more money over here. hopefully they balance each other out. alix: what's also interesting is when he talked about credit. he said he's never seen credit look this good and they haven't set aside that much for credit and haven't seen that much for credit losses. also concern spreads will blowout. guy: when you listen to what the bankers are saying today they are saying really positive things. european closes coming up next. we will get the take on these markets prayed this is bloomberg. ♪ guy: european stocks higher. commodities and banks leading the way up. come down to the close starts right now. >> the countdown is on in europe. this is bloomberg markets: european close with guy johnso

it's what jp morgan was saying yesterday. they say businesses have a strong balance sheet. net interest income marginill go up to 56 billion this year, up from 50 billion at the beginning of the year. interest rates are rising which should be good for banks historically because they make more money on the spreads but also lending is going to be strong this year. if lending will be strong this year that doesn't sound like a recession to me. so i think the bottom line here is we're definitely going to extreme negative territory here. we've been hearing recession talk week after week. i'm not buying it. we almost went to a bear market last week but markets did bounce off the lows last week and now we're down about call it 17% on the s&p 500. but i think it's important to also realize right now, it's like only a couple sectors that are really getting hit hard here, whether it's communication services which is basically tech, technology and consumer discretionary which had a huge run up. with the banks you're in that garden variety correction right now. so take the opposite of d

jp morgan versus morgan stanley. morgan stanley, mike wilson on the team think the bear market is implement cleat -- is incomplete. jp morgan thinks we are being too negative on equities and rates as well. that's the equity market. morgan stanley had a really interesting view on the yield curve. they think you should keep a bias towards flat and there's. they think the -- towards flatteners. the think the long end remains range bound to get think china. that would make sense coming into last month, but the nields broke out again, and it broke out a little bit through 3% for the first time since 2018. we pull back a little bit. the curve is flatter by a basis point, the tenure lower. want to talk about europe because in germany we broke out on the 10-year gilts through 1% for the first time -- the 10 year yield through 1% for the first time since 2015. why is that interesting? because what we had from the ecb in 2015 was the start of sovereign debt in the asset purchase program. tom keene, this time the euro is weaker

michael feroli at jp morgan. i cannot say enough about the research effort they do. we are such nerds. honest to god. friday night you were sitting there with the beverage of your choice, doing whatever you're doing, and it is 7:00 p.m., is michael feroli out yet? how about the red sox? is for rowley -- is michael feroli out yet? lisa: we are supposed to not seem like that is our friday nights but that is our friday night and everyone knows it. i think it is time for us to interview someone who has been a dominant personality at davos and has been an incredible host of several different panels and has a birds eye view into the crosscurrents of many different countries. that is one tom keene. what was the biggest take away from the panels you did? tom: did my agent sign off on that? my number one take away, lisa drives me nuts, we could be talking liverpool, and she says why aren't we talking about china? guess what, we are talking about china. when the lockdown ends, what? lisa: the lack of visibility into that, especially because the china delegation is not here bec

. >> cheryl: according to research note from jp morgan, gas prices could rise 37% by august, hitting $6.20 per gallon, national average. white house maintains it is putin price hike. >> as the president has said, president putin's actions are driving the price increase at the pump and the president is focused on doing everything in his power to address the putin price hike. >> cheryl: there are reports stations are running out of fuel. in washington state we're getting reports stations are reprogramming pumps so they'll be able to display double digit price, that is in case gas hits $10 a gallon or higher. some point we will hit $10, hoping it will not be this year. >> carley: next century. that is a lot. >> todd: that is horrible news. thank you. dhs, president biden's disinformation governance board three weeks after launch and the woman set to spearhead it resigning in disgrace. >> all the sensational narrative about what people thought the board were going to do is wrong. it is coordinating mechanism. i understand american's concern, they don't want government policing speech. th

jp morgan u.s. gasoline prices. can you imagine an average of six dollars. tom: a barrel of oil adjusted for inflation. you bring up a really important point. this is nonlinear. you go from three dollars. every time up is a hugely nonlinear feeling. i will be honest. i can't do it because i don't drive. everybody has a visceral story of what it's going to mean at 480 or 520. jonathan: something tells me governments around the world want to get out in front of the public and site to this note from jp morgan. typically refiners produce more gasoline ahead of the summer season. this year u.s. gasoline inventories have fallen counter seasonally. that's not going to work politically. price gouging. lisa: refineries. jonathan: nuance does not work in politics. we will talk about the politics next. we will head down to d.c. from a beautiful new york, this is bloomberg. >> keeping you up-to-date with news from around the world. shares of target plunging. the discount retailer cut its profit outlook and missed first quarter earnings estimate. target says a surgeon co

kriti: thank you so much, steve parker, of the jp morgan private bank. we are so to have him back soon. let's get to headlines regarding s.e.c.. they are taking their biggest app yet to stop money managers from this leading investors when they claim their funds are indeed focused on esg issues. the agency is set to propose wednesday a slate of new restrictions aimed at ensuring esg funds accurately and describing their investments. take a listen or listen to me about what the sec jerry gessler said in the statement. he commented important or -- commented investors have competent disclosures about strategy so they can understand what data under lands -- underlies funds claims and choose the right investment for them. we will have more details on this ruling is the day progresses. for now, let's get to bloomberg's first word news with mark crumpton. mark: authority say all those killed in elementary school where in the same fourth-grade classroom. 19 children were killed along with two adults. a number of others were wounded yesterday. the gunman was shot

morgan stanley and jp morgan upgraded. even if the economy were to into recession, we believe the banking industry would handle it better than any recession in history. we are not economists, but this is unlikely to go straight from labor shortages to recession given the large pullback in the stocks and medullary -- and moderately higher estimates. the pe multiple is down to 52%. tom: they are very constructive on the markets. they have participated in this bull market. but again, people adapt. companies adapt. central banks adapt. jonathan: they are looking for 30% upside from here. the market has now picked up on high yields translating is better for bank stocks. that has just not been the story over the last few months. year-to-date, we have seen this massive move in yields, and banks have not participated. tom: slotted in is a two hour conversation we can have this morning with kenneth rogoff, professor of economics at harvard, the former imf chief economist, but far more than that, truly one of our thinkers of this mo

economist at jp morgan, to lower his growth forecast. he says that growth has to flow, this has been what the fed has said, the fed will does what it takes to make sure that happens there is a narrative, that is what we are seeing in the market. the fed needs to break things, inflation and control, things are subsequently breaking. joining us now, longtail founder and cio with three decades of experience in the market. is this what we are seeing? close i think we have talked about this for six months. i call it self-inflicted wounds. they went too far in terms of easing, now they have to reverse. they were buying assets a couple of months ago, liquidity is absolutely her and us. it tells me that markets are breaking. it has been the fact for a long time. guy: does the market break? an interesting piece on the bloomberg, you are looking at the possibility for the market concern. liquidity is a key factor. when it dries up, it dries up quickly. is that something we should be concerned about? are you seeing evidence that could happen? vinee

tom: jp morgan has a research piece. gdp of hydrocarbons is about 9% globally. every time you see that oil price tick up, it permeates throughout the system. jonathan: crude oil is $118 in gas prices keep climbing the wrong way for this white house. lisa: people are trying to frame out a six dollar per gallon of gas and we are already seeing that in certain areas. what does this do to the willingness of american consumers to absorb higher prices? the ceos we spoke to an even the business owners i speak to day to day save there is no limit as to what -- as to how they can hike up prices. jonathan: they can't get a read on this economy. they seem this across industries that they are struggling to gauge where we are in this cycle. we set themselves up for 12 months ago but we are not there anymore. they were clamoring for supply and there may be some places that got too much. lisa: this is why you asked about a good question about the massive price swings after a downside surprise and margin pressures appearing on earnings statements. how much are we seeing them ga

and i was going through some notes, jp morgan in april where they were talking about the positives of the house housing cycle where the consumer and the consumer balance sheet and the wealth effect. nobody has cautioned that rates have risen 100 basis points that they're going to rise significantly more if we believe the fed. floor and decor did give a guide to put a shoft adjustment to their guide. so reiteration of home depot and lowe's is tough to expect and i would like them to get it out of the way. to me, that is where we're going to be. their comps will be down and point to weather related, coldest april in 22 years so the headline numbers will not be great. they're not going to talk about necessarily the impact of the housing market but others have and i kind of wish they would. >> i'll just say this, tim, you just hit on something that i think is important investors sentiment or consumer sentiment, too, a couple of months ago, investors thought they had money everywhere. and in used cars, in watching, in digit art, in crypto coins and it all went poof so when you think about

jaime: la corporaciÓn financiera jp morgan predijo que antes del final del verano el resto del paÍs va a pagar seis dÓlares por galÓn de gasolina que se pagan en california. ilia: esta noticia se produjo recientemente, presidente biden invocÓ la ley en defensa de la producciÓn y ordenÓ importar leche de fÓrmula para bebÉs y aumentar su producciÓn en los estados unidos, esta orden significa que el gobierno federal le darÁ prioridad a ingredientes esenciales que necesita la leche de fÓrmula y obligarÁ a los suministradores a dar los recursos que necesitan de ese producto. jorge: los casos de covid—19 estÁn aumentando y se recomendÓ usar mascarillas en lugares cerrados en las zonas de mayor rebrote. a nivel nacional el aumento es del 26% relaciÓn con la semana anterior, los ingresos de los hospitales subieron 19%. la ciudad de nueva york y el estado de maryland recomendaron volver a las mascarillas en lugares cerrados. la tÍpica diversiÓn de cavar un hueco en la arena del playa se convirtiÓ en la tumba de un adolescente. ilia: silencio, indiferencia y burocracia, esos s

so according to jp morgan, for every dollar that we spend extra at the gas pump, we are not spending it elsewhere. and jp morgan says a lot of americans are pulling back. >> that we are not spending on 9 gas items to the tune of 9.6 billion dollars for other items. and that means the restaurants, the stores, they are suffering as well. we're all in this together, james, a little bit later on today. i'm going go to costco. we want to car pool back >> yeah. that might be some of the cheapest gas you can find even that very cheap anymore. thank you. will if you don't go with go. take you up on that offer. will. >> well, still ahead of the kron, 4 morning news police are looking for the person who started 2 fires in the east bay over the weekend. what they know happened so far. plus, inflation is hitting people ny only the pub, but also groceries. it is also not helping with the housing crisis. we're going break down what that means forward. and after the break, we're going to take another look at last night's total over eclipse. james on because left to learn more about that. we get bac

shery: guggenheim and jp morgan speaking exclusively to bloomberg. we will hear more in a few moments. let's discuss the rate hike implications on markets. senior market strategists, good to have you with us. give us your reaction to the fed decision on what sort of guidance in how the markets reacted. guest: thank you so much for having me. it was a collective sigh of relief across the board. we had expected they would announce the 50 basis point hike, everyone was concerned about the language, but chairman powell seems measured, he did not seem to be hitting alarm buttons and shot away from that expectation that we might see a 75 basis hike. i think this was good news from the fed. shery: and yet, there are concerns the fed is behind the curve which is why we continue to hear about the potential recession coming very soon. we have heard consumer sentiment . does that affect our positioning? guest: not so far. we have seen up-and-down data but at the end of the day, and consumers are still spending money on goods and services, we are seeing a return

jp morgan has invested in one of our leading fintech companies. what american companies see in grease is not just a country endowed with an advantageous geographical position, and blessed with natural beauty that makes it a magnet for visitors from all over the world. they also see a dynamic economy that has overcome the pathogenies of the past and is supporting entrepreneurship and private investment. what they see, which is probably the most important aspect of all, is a young, talented, well-educated work force. these young talented well educated greeks who, after a decade of crisis choose to remain in their homeland rather than emigrating. for those who left the country choose to return to greece now. i am convinced they will be the protagonists of greece's bright future. esteemed members of congress, i have spoken about the joint paths that our two great democracies have chartered over the past two centuries. we have every reason to celebrate our achievements. but it would be foolish to remain complacent. the united states has a crucial role

the patrol company is working with banks like jp morgan and morgan stanley to study a potential listing. it could fetch tens of billions of dollars. shery: coming up next, we get insight on the startup and investment lance cape in latin america with a pioneer in the region's vc space. bianca sassoon joins us live in panama next. and we have seen a huge rebound in investments in 2021. they are a different case as we continue to see liquidity drying up. we will discuss all of this coming up. this is bloomberg. ♪ shery: last yearshery:, there was no better place for startups. a record $16 billion raised. but with investors pulling out of risky bets everywhere, there is a painful adjustment underway right now. our next guest runs a venture capital fund. managing partner be anke -- bianca sassoon. really good to see you in person. tell us a little bit about 17 sigma and what you're doing. i understand that pre-seed money and investments are hard to find in latin america. bianca: thank you for having me here, first of all. of course. 17sigma is a pre-seed fund. we invest in latin america an