this is bloomberg. shery: still ahead, the fed remains on course to deliver more hikes in its ongoing fight against inflation. up next, investors are divided over asian equities as they way up inflation risks and china is gradually easing covert restrictions. this is bloomberg -- china is gradually easing covid restrictions. this is bloomberg. ♪ >> attitudes are more balanced today. when there's euphoria, when there's optimism, when there's greed, when there's risk tolerance and so with, that's a very difficult climate for the value investor to find bargains, and now the prospective returns on many asset classes are higher than they were just a little while ago and again, a much bigger climate for the bargain hunter. shery: howard marks speaking exclusively on "bloomberg surveillance." we are seeing negative downside pressure when it comes to markets. the s&p 500 lost ground in today's session. the nasdaq 500 also underperforming. we have concerns about the fed tightening, very strong manufacturing ac

this is bloomberg. kriti: i am jon erlichman. welcome to "bloomberg markets." and i am created group debt. -- kriti: and i am kriti gupta. we now have green on the screen up 5/10 of 1%. the question is, are the fundamentals the ones driving the market? the 10 year yield is where you see recession fears a stronger. in the face of a slowing economy you dive into the u.s. bond market. yields are down 12% but a reversal of what we have seen the last few days. let's look at the dollar index. as the yields come down the greenback does as well. down 3/10 of 1% and we should mention the oil story. that is really a recession story. growth fears driving the commodity market lower. jon: that factors in to the stock at this hour. because there has not been willingness on the part of investors to move into any sector it is feeling company specific at this hour, whether you have a standout stock like moderna up 6.5%, or docusign going through a management shakeup. coming back to what you are talking about, you are seeing noticeable weakness in those highflying energy stocks.

this is bloomberg. shery: still hate fresh coronavirus outbreak has a shed light on koreans' attitude towards the lgbtq+ community. we will be looking into that with human rights watch a little later. but first, the ecb is set to announce an end to large-scale asset purchases. nomura tells us how that may affect foreign exchange rate. >> the new projections percy annual production -- they foresee annual projection 2.5 percent in 2022 for it is projected to decline in 2023, and higher than in the march projections. this means that headline inflation at the end of the production horizon is jaded to be slightly above our target. >> what worries me jon, and you are not going to like this because it is looking forward, june month-on-month rent will be worse than the may month-on-month print. those who boldly said inflation has beat and is coming down may have to change their minds. haidi: bloomberg opinion columnist mohamed el-erian, and ecb president christine lagarde there on inflation expectations. euro t

this is bloomberg. ♪ dani: welcome back to "bloomberg daybreak: europe." it is cpi day and part of what we are grappling with, and the numbers today might help go towards this narrative of whether inflation has peaked or not. there was a moment where we saw things like the dollar peeking, breakeven speaking, that seemed to indicate the worst was over. however, u.s. breakeven inflation estimates started to turn higher. that is the chart i'm looking at from two to 10 year. the three year just breaking above three spot 10. that is just as the u.s. curve moves above 3%. if you are one of those people who around here thought inflation had peaked, you were wrong. the inflationary picture is still with us. the ecb yesterday reminding -- revising their inflation forecast saying the average for this year may be around 7%. cpi numbers might also indicate services as well as consumers shift their spending habits. let's get to the top news items of today with your first word news, it is juliette saly in singapore. >> u.s. lawmakers investigating last year's riot at th

this is bloomberg. shery. shery: still ahead, apple workers have voted to join a union, as workers across the tax base come together to demand fair pay and labor rates. a discussion on that later. but first, hear why then and there maitre from bny mellon has been turning more defensive, end where he sees opportunities in china. this is bloomberg. >> inflation is happening everywhere now. moreover inflation is from demand, and we have tools to deal with demand. our tools are blunt, but they are the right tools to deal with broad, good demand. our intent is to bring inflation down to 2%. inflation back down to 2%. it is unconditional, our commitment is. that path has gotten more and more challenging thanks to the effects on oil prices and food prices. people do expect inflation to come down to levels that are consistent with our price stability mandate. without that, we will not have a sustained period of maximum employment. paul: that is fed chair jerome powell testifying in congress. our next guest says his st

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

this is bloomberg. shery: still ahead, china's growth policies are feeling to spur property demand. we look at how they are stoking fears later this hour. at first, look at the bank of japan's options as speculators ramp up chances for a tweak to its monetary policy with our next guest. this is bloomberg. ♪ >> ongoing rate increases will be appropriate to expeditious progress towards higher rates. we know we have restrictive policy that is where we're at. the economy is strong and well positioned to handle tighter monetary policy. >> if interest rates go too high, too fast, it could drive us into recession? >> certainly a possibility. the other risk is that we will not be able to restore price stability and will allow high inflation to get entrenched. price stability is really the bedrock of the economy. we must restore price stability, and we will. the public should believe that we will get inflation down to 2% over time. we are strongly, strongly committed to restoring price stability. we do underst

this is bloomberg. yvonne: still ahead on bloomberg markets: asia, the imd world competitiveness ranking places singapore as number one in the aipac region. the director joins us later on this hour. rishaad: a rise in the offshore you on. -- offshore yuan. that is on the way next. ♪ rishaad: this is bloomberg markets. let's have a look at what the week in stores holding for us. we already have the china loan prime rate come out. unchanged. looking at jay powell, he is going to be out there. he will be doing his semiannual testimony to congress. we will have you look at that. every little word will be analyzed for any nuance. the boj minutes. looking further ahead, eu leaders meeting on thursday over ukraine and rate decisions out of indonesia as well. who have that to look forward to. taking a look at what we can expect out of jakarta. taking a look at what the cost of borrowing is. 3.5% were interest rates are expected to stand. vonnie: it's bring in -- yvonne: let's bring in the manager of affect st

this is bloomberg. ♪ manus: this is "bloomberg daybreak: europe." the rally in oil prices is fizzled. we have a report that opec members are exploring the idea of exempting russia from its production. the move could open the door for other producers. we look to one about reporters. there has been so much politicking going on, what do we make of this? what is the risk that russia would step out of this agreement? >> when you look at the report that broke this news, we might see a signal later this week. whether they agree to the exemption, there is also another question that that is not 100% clear. if it does fell apart, it could lead to other countries doing the same thing. saudi arabia could boost output and other countries may be willing to step in. there's also a question on if they are able to increase outlook. even with a modest increase the agreed to. there are a lot of questions. dani: with this meeting, even if they want to increase production, those demands are still on their radar. >> that chinese, zero kobe policy is something they are lo

this is bloomberg. ♪ kriti: this is "bloomberg markets." i am creepy good data -- i am kriti group to what's jon erlichman. let's bring in the president of -- >> that is the interesting thing. the u.s. and other countries like canada are trying to be aggressive with rate hikes. others like the ecb and boj are trying to take things as slowly as possible. the bank of japan has been praying for inflation since 2012. they are finally getting it so they do not want to pour water on the fire. the question is, how far can the dollar-? as far as -- dollar-yen go? there are still more to the topside. jon: all eyes are on the ecb as we await commentary. what do you think happens in the currency market? >> it is one of the more interesting meetings. there is a wide range of opinions from lagarde's blog post all the way to some people thinking they hike 50 tomorrow, which seems unlikely to me. i am on the doveish side. their hiking into an energy shot like the bank of england. we have 135 basis points price did and there are four more meetings after to

yvonne: 20 more in the next hour, bloomberg markets: asia. this is bloomberg. ♪ vo: when times get dark, we can't see the help that's all around us. let 2-1-1 be your guiding light. for help with food, health care, and other resources. operator: 2-1-1, how can i help you? vo: call 211 or visit 211.org 2-1-1 get connected. get help.

this is bloomberg. ♪ rishaad: er back with bloomberg markets. we are just checking the disney/headlines, starting with the most recognized companies in the u.s. indicating that they will cover out-of-state travel and care for abortions, talking about the likes of disney, meta. saying they will help employees with travel to another state to access legal abortions and other procedures the moves have prompted threats from conservative states against some of those companies. the bank of india has been courting large investment houses to become top shareholders in an effort to improve its market value -- ubs has. with the aim of getting them to increase their stakes. and toshiba is exited to appoint representatives from two of its most vocal activist shareholders it's board and do so at its annual meeting on tuesday. it is seen as a step forward in governance, it may also deepen divides in the boardroom, with some directors or brazilian appointment. toshiba is weighing bids to possibly privatize or form business alliances. yvonne: it will be a big we

this is bloomberg. haidi: chinese president xi jinping arrives in hong kong on thursday, his first visit in five years in the first time he has left the mainland in nearly 900 days, amid the strict covid zero policy. chief north asia correspondent stephen engle is covering the visit. so what will stand out, halfway through china's commitment to one country, two systems? stephen: i will be wondering what his tone will be. we heard vonnie talk about his comments in wuhan, where he essentially said the economy could be the victim of a prolonged covid zero strategy, and will that apply to hong kong? will hong kong continue to be shackled to the covid zero policies of china, or will hong kong be allowed to chart its own course as an international financial center, as places like singapore, dubai, new york, london, chief competitors of the international stage for financial services which are completely opened up. in hong kong there has been clamoring for the relaxation of quarantines. china cut their quaranti

this is bloomberg. ♪ haidi: u.s. officials are said to be working to arrange another call between joe biden and xi jinping is tensions remain high over ukraine and taiwan. let's bring in chief north asia correspondent stephen engle in hong kong. as the call going to happen, and when? -- is the call going to happen, and when? stephen: president biden ward you jinping there would be consequences if he supports vladimir putin's war in ukraine. then, tensions, u.s. officials warning that the chinese have been warning them in private conversations that the taiwan strait is not international waters. the u.s. practices freedom of navigation in the south china sea and through the taiwan straits. that is a potential sticking point. human rights is an issue. lots to discuss. these two gentlemen have not talked since march 18. this is what u.s. ambassador to china nicholas berg overnight had to say about the urgency, if you will, or prospect of a conversation between biden and xi. we want stability in the relationsh

this is bloomberg. ♪ ♪

the bloomberg dollar index was seeing a bit of weakness. that is helping to boost the aussie dollar. that is typical proxy for risk in the asian session. we hear from the vice fed chair dousing cold water she saying there's a lot more work to do when it comes to getting the inflation target and it very hard to see a case for pausing the actions when it comes to hiking at least in the next few months. shery: the reason we focus on much on the fed pausing is all of the recession fears we keep hearing about. even today, the goldman president warning of tougher times ahead saying this is among the most if not the most complex dynamic the environment has ever seen in his career. jamie dimon, we heard a pessimistic tone from him -- preparing for hurricane. let's talk about this recession fears. the fed battle with inflation as well. this is the top focus across markets. for more analysis, let's bring in our global economics and policy editor kathleen hays. what is your take on the message that brainerd is trying to send? >> the message brainerd i

this is bloomberg. haidi: still ahead, why are be see capital markets thinks a rate hike on tuesday is a done deal. the only question is how far the central bank will move. but next, julie biel gives a look ahead when it comes to friday's u.s. cpi print and whether these price pressures have yet to peak. this is bloomberg. ♪ shery: u.s. futures not doing much at the open right now. this of course after a choppy session. s&p 500 pricing only .3%. let's discuss the latest with our next guest who says we could see a meaningful destruction of margins for retailers. with us now is julie biel, senior research analyst at kayne anderson rudnick. it is always good to have you with us. tell us a little about why do you see this demand destruction. is it supply, the excess inventories we could see in the next few months, or just because inflationary pressures are now continuing to really pressure these companies? julie: what i worry is it is actually both and we can the consumer. so you are starting to see inven

this is bloomberg. ♪ kriti: this is "bloomberg markets." we discussing level inflation. u.s. farmers battling floods, heat in a bid to replenish food supplies. let's dig in with jen. thank you for joining us. there are challenges for farmers now. it is not easy to grow food. can you walk us through those issues? jen: you touched on a couple of important ones. we have seen the weather be a big issue this spring. parts of the u.s. growing areas are dealing with flooding, excess moisture. others are dealing with heat and drought. every bushel matters this year. supplies out of russia and ukraine are in certain. there has been a lot of challenges in terms of getting that crop in the ground. also prices. things like fertilizer are expensive for farmers. they are in a big squeeze. kriti: that context so crucial. thank you as always. we will bring back in ertharin cousin who has experienced in this kind of story. united states is a massive exporter of grain. why is it not that simple to simply plant more, grow more, export more and solve this food

this is bloomberg. ritika: keeping you up to date with news from around the world, let's get to the first word. i'm ritika gupta. elon musk sees recession in the u.s. in the near future. he spoke to john micklethwait. >> recession is inevitable at some point. as to whether there is recession in the near term, i think that is more likely than not. not a certainty, but it appears more likely than not. ritika: the interview was a part of the qatar economic forum. president biden says he could suspend the federal gas tax. the move would likely require congressional signoff and could not be taken by executive action. gas prices now average $4.98 a gallon, short of the record set last week. russia warns two americans captured fighting for ukraine could face the death penalty. a spokesperson for vladimir putin says they are not likely protected by the geneva convention as prisoners of war. moscow considers them soldiers of fortune and not a part of the ukrainian army. the biggest real strike in three decades i

this is bloomberg. >> welcome to "bloomberg markets." romaine: we are going to check on the markets right now. a down day here, despite the rally we saw yesterday. we continue to see this whipsaw back and forth as people try to assess not only the economic tea leaves but a lot of the commentary that we continue to hear out of so many executives, whether it is jamie dimon at jp morgan, or a goldman sachs and now elon musk at tesla. the s&p 500 down 1.5%. crude oil setting up for what will be a weekly gain. a massive move in the two year yield, higher by 18 basis points. a shortened holiday week here in the united states. the vix elevated on this day, right back to 25. jon: if we take a closer look at stocks, those same themes at work. when it comes to the market, because of that rally in oil prices, you have names like chevron trading higher within the dow. good conversation with the ceo on bloomberg television today. higher oil prices are things that airlines are grappling with. yes, their demand story, and we saw that from american airl

this is bloomberg. shery: still ahead, we will speak to the queensland treasurer and minister for trade and investment cameron dick on his efforts to drive investment across the state later this hour. next hear why victoria greene of g squared private wealth thinks the fed will continue to hike rates even after peak inflation, and what that means for equities. this is bloomberg. ♪ >> i think we now understand better, how little we understand about inflation. [laughter] honestly, this was unpredicted. >> i think the forces that have been released as a result of the pandemic, as a result of this massive geopolitical shock we are facing now. >> if we see a greater persistence of inflation, there will act more forcefully. >> the path back to 2% inflation while still retaining and sustaining a strong labor market, we believe we can do that. >> as the uncertainty will clear, on various accounts, we will have to certainly be less gradual. >> it is quite clear that as we respond to this shock, we want to have

this is bloomberg. shery. shery: coming up next, wells fargo securities sees a mild recession for the u.s. in may 23 is the base case. hear how that is reshaping their investment strategy, next. this is bloomberg. ♪ >> i think shallow. i think the duration is still very much in question. i say shallow because, you don't have a de-leveraging cycle on top of a recession. that is very different from how we entered the financial crisis. yvonne: morgan stanley's chief u.s. economist there. that's in anna han, equity strategist at wells fargo securities, to talk about the massive selloff in the u.s. session. . seems like recession talks are getting louder. the likes of value stocks, reversing when it comes to industrial commodities, the supercycle fainting. are we nearing the end of this information trade? anna: i would not say goodbye forever, but i think we are starting to rank out the cyclicality in our portfolios. we really pushed to the reopening trade. but when we expect to have our base case as a rec

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. ♪ ♪ >> just checking on those guarantees. 3.2 on the dollar. we see the continued appreciation for the greenback. inflation also showing here. the real gdp is 8.3%. >> let's discuss more about the philippines economic outlook. the cemetery is currently chair of the philippine competition commission. the antitrust agency. take you for joining us. just given the inflation story out of the philippines right now, i have to wonder how you see this impact to consumption and overall growth in the country. >> inflation is very much important. we are expecting growth at the beginning of the year. many things have happened since then. >> what measures are you going to be undergoing under this market administration to try to tame inflation? what can you see on the monetary front? >> the goal is to wrap up the economic recovery. we need to make sure that we have access to the food supply in particular. we will attempt to clampdown on exports and domestic markets. that is one with many domesti

this is bloomberg. yvonne: still ahead on bloomberg markets asia, we will talk about impacting markets in asia and the boj decision. credits, are said to vote on a reconstruction plan. this is bloomberg. ♪ how will your business adapt to change? you could hire an office full of peyton mannings. what's up, peyton? good morning, peyton. hold for peyton. they'd huddle.... welcome to the peytonverse. such a visionary. game plan... you go. no, you go! and call audibles... double our investment in omaha! omaha! omaha! omaha! or you could use workday. omaha. the finance, hr and planning system used by over half of the fortune 500. for a be-agile-like-an-mvp world. workday. for a changing world. rishaad: keeping a close look, on the bloomberg dollar index, it is moving in fast 15 days. -- past 15 days. it is up over 8.5% since the year started. we get a bit of weakness for the aussie dollar. we got the yuan a tad weaker as well. let's have a look at was going on with the yuan and how the boj and whatever it d

this is bloomberg. paul: still to come, central banks around the world are tightening monetary policy. that rbnz says why that is no picnic for commodity markets. but first, the fed may be a wet blanket for the recent equity bounce and may be willing to tolerate more economic slowing than markets would like. more on that next. this is bloomberg. ♪ affordable home lending programs... as part of 88 billion to support underserved communities... including loans for small businesses in low and moderate income areas. so everyone has a chance to move forward financially. pnc bank: see how we can make a difference for you. >>>> a recession is inevitable at some point. >> it is almost inevitable. >> ago to think there is going to be a recession. >> saying there is a cooling of the economy is something we believe is appropriate. >> as to whether there is a recession in the near term, that is more likely than not. >> we will have a tough period. >> our economists have increased their odds of the recession more f

this is bloomberg. ♪ guy: germany and talks to bailout the energy giant. that's to stem broader fallout from russia's vast deliveries to germany. more on this story. how much trouble is it in. how devastating is this balance sheet result? >> both estimate it's costing them about 30 million a day. that is a lot of money to come up out of the blue. they've already talked the government to see how they are getting help? guy: where is it in terms of being able to put some of those costs off? >> germany still has to save their emergency plans but they have not allowed companies to pass the costs down yet so that's why they are taking such a big hit. any of the ledges -- providers in germany are not allowed to put these costs down yet. -- pass these costs down by alix: how does this further exacerbate the problem? >> most people of priced in the fact the pipeline is going under maintenance. nord stream 2 one. i think the biggest problem is that nord stream 2 one comes back. that's european officials are wor

this is bloomberg. ♪ kriti: this is bloomberg markets. after making many public statements, elon musk rot more clarity to the tesla staffing situation. he said staff would be reduced by 3.5%. >> years from now, i hope our count be higher as well as salaries. in the next few months, the salary workforce which is only 3.5% reduction. kriti: that was elon musk and among his other comments, he's making recession calls saying recession may be inevitable. the former treasury says multiple things. he says the u.s. has been too much on the fiscal response to the pandemic which is an argument many have had. in hindsight, the fed waited way too long to control inflation will stop he said president trump would run again if the election were in six months. there is a lot coming up from the qatar economic forum. the s&p 500 is up 2.4% stuff that rebound rally is back. the tsx is up about4 1/10 of 1%. it's a muted action when you look at the bond yields in the dollar strength continues to be a conversation as does some of the rising commodity prices. h

emily: this is bloomberg technology. a landmark ruling by a deeply divided supreme court opens the door for more people to carry guns in public. this as the country is grappling with the rise in gun violence and companies are trying to get workers back to the office. plus, she was suspended from google for voicing concerns about an ai bought he says as a person. an interview with the interview -- engineer. why does he think computer have feelings and why does it matter? an in-depth conversation, coming up. continued concerns about the power of big tech. i'm joined by the ceo of proton who's in washington right now fighting for antitrust reform. i want to get a look at the markets. investors looking to attack as fears of a refresh -- recession grow. >> this momentum. we are up in three of the last four sessions. look at the nasdaq 100. there tech heavy index. not all tech created equal. weakness in semiconductors. the story on the day was so much fed speak. fed powell on capitol hill giving his view of the world, the outl

this is bloomberg. good morning. ♪ ritika: president biden wants congress to do something about soaring gasoline prices. bloomberg has learned he will call on lawmakers today to enact a gasoline tax holiday. average gas prices in the u.s., around five dollars a gallon. federal taxes make up a little more than $.18 of that. it is not clear how long the president wants to cause the tax. in the u.k., inflation risen to a new high. prices rose 9.1% in may from a year ago, there were broad increases in the cost of everything from fuel to food and beverages. there were more fines in inflationary pressures building at the wholesale level. china bowing more policies to boost the company's covid battered economy. the economy will speed up the sale of local government bonds. cabinet urging banks to increase leading for -- lending for infrastructure products -- projects. the senate has voted on a measure called the biggest breakthrough in a decade, designed to approve background checks securing funds to combat n

this is bloomberg. ♪ pres. biden: make no mistake. this decision is the culmination of a deliberate effort over decades to upset the balance of our law. it is the realization of extreme ideology and a tragic error by the supreme court in my view. tom: the nation galvanized. no other way to put it. lisa abramowicz and tom keene. jon ferro preparing for another property. i want to say congratulates to david shipley and tim o'brien, with the leadership of noah felt he of harvard, bloomberg was informed about the raging debates around our supreme court. owning the high ground of on all of this is gregory's store. to say he is bloomberg supreme court reporter barely describes his authority. i want to drive the story forward. last week sandra lancaster versus illinois, adam martin versus klein warded, new york versus new jersey. i do not know what that is about. what are the orders and why did they merit -- and why they matter this morning? gregory: we will get a whole bunch at 9:30 today. this is the brain court saint we will take up that

this is bloomberg. ♪ dani: welcome back to "bloomberg daybreak: europe." jp morgan's jamie dimon once a investors to prepare for an economic hurricane ahead. he says that it is right down the road, brace yourself. manus: it is a more dire warning compared to his previous comments. a couple weeks ago, there were storm clouds hanging over. on the other hand, he remains positive on the economy and markets. we have to patch it -- take down the hatchet. where you think diamond, the king of wall street is on a dramatic tip? >> the article, we expect it will be transitory inflation -- were basically now we are seeing that battle with hiking rates and a slowing of the global economy. in that sense, what we are seeing is banishment from growth. if that is the target, 3.5%, i think it can be more given or inflation is. -- given where inflation is. dani: does it then make sense that storm clouds are on the horizon? does that factor in right now? saed: i do not think so. i think you have to look at two things. we are looking carefully at the impact, the lockdown in ch

bloomberg markets is next. this is bloomberg. ♪

this is bloomberg. ♪ kriti: this is bloomberg markets. supply chain issues, rising rates, there are many reasons why corporations could be facing a cash crunch putting investors on the sidelines when it comes to capital raising. we have an update to walk us through these issues. sanali: let's look at shipping costs. even though they have come down from there highs, they are elevated from where they were two years ago or one year ago. these are different routes. they are facing an extraordinary inflationary development and that's a complicated picture because the cost of financing will be rising. look at the high yield spread with the average high yields for the year. that is a cause that will get higher as rates rise. jon: stay with us. we want to stay with this theme of the supply chain and get perspective and the banking sector. our guests unit make sure these logistics do not make them insolvent. a number of considerations that are key with your clients right now. can you tell us where the financing needs have been greatest? >> all of

this is bloomberg. ♪ emily: welcome back to the bloomberg 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? we have been dying to travel. peter: clearly everyone is going to travel somehow. i think there will be disruptions. we are seeing it in europe and the u.s., the shortage of 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 e

this is bloomberg. haidi: hong kong's outgoing chief executive, carrie lam, say hotel quarantines have hurt the city's status as a financial hub. she also conceded that her government could have prevented more covid deaths with a stronger vaccination drive. in an interview with bloomberg's stephen engle, however, carrie lam refused to apologize. >> if you look at the past two years, before the first 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 the airport and so on. we were, by and large, operating normally. but since the fifth wave harris, and it hit us really hard in terms of the number of deaths -- >> we went from 1000 deaths to 9300. >> we were cautious. at sometime because of the transmissibility of omicron and the madness of this virus, other places were opening up. by comparison -- i am a person who believes in relativity, everything is relative. w

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

today bloomberg's tech summit is taking place in san francisco. interesting to hear what we could hear from the ceos of uber, expedia, as well as mastercard. looking to how we can engage the consumer slowdown in appetite. today russian foreign minister sergei lavrov is heading over to turkey to talk about unblocking the black sea for grain shipments out of ukraine. how much is this real talk? we have heard skepticism from kyiv about how much could get achieved, but this is key in terms of the world's food supply, so a lot of people are watching this. jonathan: thank you. i want to turn out to brian weinstein at morgan stanley. the fed may keep hiking in clips of 50 basis points until something breaks. can we talk about that something breaking and have a look at what is happening in japan? brian: sure. first of all, the fed has to keep hiking 50 basis points until there is some semblance of a demand slowdown, because that's all they've got, right? they cannot help the supply side. you said before about markets, we have seen a couple teeter. pan not

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

i'm vonnie quinn, this is bloomberg. yvonne: still ahead on bloomberg markets: asia, we take a look at how china's demand for ev batteries is dealing with men -- fueling lithium markets. rishaad: cmc things another 75 basis point interest rate hike may not happen. calvin long -- kelvin long joining us to discuss that strategy. this is bloomberg. ♪ yvonne: you continue to see equities altering when it comes to this stock rally. we are getting into the quarter end, the dollar is softer and yields are mixed, but picking up which led to the selloff which led to this rally taking a pause. i can't talk today. rishaad: it happens. [laughter] let's bring in kelvin wong, thank you for joining us, you are at reckoning on not a 75 basis point hike coming out of it then in july. -- out of the fed in july. saying this is down to the bullwhip effect, and that would mean essentially that a lot of consumers will not be able to take steps back because inventories are so overstocked that we could have a period of disinflation, is that y

this is bloomberg. the frontloading of interest rate increases is a good idea in this situation. what you would like to do is nip inflation in the bud before it gets entrenched in the economy. get inflation back down towards 2%. >> early term inflation expectations have drifted up. they do drift up when we have high inflation. the longer runs are remaining fairly anchored and anchored around our average 2% inflation target. they have inched up, but not in the way you would expect them to do if you were using the anger. we have really gotten behind. shery: fed presidents mary daly and james ford speaking over the weekend. we will hear from central bankers including jay powell and christine lagarde at the ecb form starting tuesday in portugal. g7 meeting continues in germany followed by a nato summit in madrid where the group will lay out their joint position on china for the first time. this is ahead of the hong kong 25th anniversary of its return to chinese rule on friday. president xi jinping is expect

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

bloomberg markets europe up next. this is bloomberg. ♪

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

this is bloomberg. ♪ dani: welcome back to bloomberg daybreak: europe. bloomberg's commodity spot index hit a fresh record high. the gauge track rices for 23 raw materials last pete -- rises for 23 raw materials last in april. this time, it for -- is all about oil. let's bring in bloomberg's energy commodity editor in singapore. gravity does not apply in this index. >> that's right. we saw a very large gain on monday. we saw gains in u.s. natural gas. those have been the immediate things in the last day or two. oil is the big factor of the moment. goldman sachs came out with the forecast talking about 140 in the third quarter. chinese demand coming back, as -- also the increasing european a sanctions on russia. when we talk about the chinese demand story, it is not just oil. it is metals. we were coming back strongly on all of the stimulus china has been talking about for the last couple of months. they're going to deploy this as the lockdowns have come off. also industrial metals like copper and aluminumand food of course. we have a whole bunch of facto

this is bloomberg. ♪ tom: welcome back. after consecutive losses, the yen rebounds against the dollar after officials sounded the alarm. here is more on the moves in that space. what do you make of the news out of japan? >> i think the key driving factor has been this differential between treasuries and spreads. we know about yield curve dynamics. we are going to see those u.s. yields remain relatively elevated. the japanese authorities are swinging. i think they're trying to slow the move rather than reversing it particularly. alix: what would it take to reverse it? we will live in a world of big deal differentials, prickly for the boj as we have rate hikes in the u.s. and europe? jeremy: i think in a sense that was the underlying message from the ecb, it needs the boj as an outlier in terms of broader global monetary policy. suggesting they are going to try and rest this verbally is a challenge. i think ultimately that will be the case that we have to get into a scenario where the boj may need to co

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. 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. ♪ -- global news, 24 hours a day, on air and on bloomberg quicktake, powered by 2700 journalists and analysts in more than 120 countries. su: -- shery: more than 20 heads of government are expected to be in los angeles. they are approaching the event with a mix of skepticism and interest at a time when china is expanding its influence in the region. let's bring in the vice president at the council of the america joining us from a l.a.. always good to have you with us. you said recently that each summit has become progressively less ambitious. with that state for the biden administration? >> there's a lot at stake, frankly, but their trajectory has been downward since the first summit was hosted in miami by the united states in 1994. i was there, i will tell you held i was. the comparison between them and now is starch. in 1994 we were coming out of the cold war, democracy was coming to latin america and was being entrenched in the world was building into blocks, europe, the western hemisphere in asia. there was a strategic component. but that has seemed to break down