central bank and central-bank currencies fit for the century we are in, which is why we are looking at cbdc, central-bank digital currencies. instead of having banks put cash in our pockets, we can have exactly the same thing but in a digital form. all of us are working on this, and we are looking to push the cbdc issue on our agenda. david: if the ecb were to have a digital currency, would that be to the exclusion of paper currencies, or would it be side-by-side? ms. lagarde: side-by-side, because we want customers to have their preference. if they still want to hold banknotes in cash, fine, and it should continue to be available. david: at this point in your life, do you feel discrimination to you in your professional life as a woman? ms. lagarde: it is difficult to discriminate against me, but i am aware of discriminations against many women in all parts of the world. Â david: in recent years, the central bank has been worried about something called climate change. you are making comments about it. why should central makers be worried about climate change? is that within your pu

that will make the central bank and central bank currencies fit for the century we are in, which is why we are looking at cbdc, central bank digital currencies. so instead of having banknotes and cash in our pockets, we can have exactly the same thing but in a digital form. all of us are working on this, and we are looking to push the cbdc issue on our agenda. i believe we have to stand ready for that. david: if the ecb were to have a digital currency, would that be to the exclusion of paper currencies, or would it be side-by-side? ms. lagarde: side-by-side, because we want customers to have their preference. if they still want to hold those banknotes in cash, fine, and it should continue to be global and around. david: at this point in your life, do you feel discrimination against you in your professional life as a woman? ms. lagarde: it is difficult to hold open discrimination against me, let's face it. but i am aware of discriminations against many women in all parts of the world. ♪ david: in recent years, the central bank has been worried about something called climate change.

that will make the central bank and central bank currencies fit for the century we are in, which is why we are now looking at cbdc, central bank digital currencies. so instead of having banknotes and cash in our pockets, we can have exactly the same thing but in a digital form. so all of us are working on this, and certainly, we are looking to push the cbdc issue on our agenda. i believe we have to stand ready for that. david: if the ecb were to have a digital currency, would that be to the exclusion of paper currencies, or would it be side-by-side? ms. lagarde: side-by-side, because we want customers to have their preference. if they still want to hold those banknotes in cash, fine, and it should continue to be global and around. david: at this point in your life, do you feel discrimination against you in your professional life as a woman? ms. lagarde: it is difficult to hold open discrimination against me, let's face it. but i am aware of discriminations against many women in all parts of the world. ♪ david: in recent years, the central bank has been worried about something call

that will make the central bank and central bank currencies fit for the century we are in, which is why we are looking at cbdc, central bank digital currencies. so that instead of having banknotes and cash in our pockets or in our wallets, we can have exactly the same thing but in a digital form. , all of us are working on this, and certainly, i was keen to push the cbdc issue a no agenda, because i believe that we have to stand ready for that. david: if the ecb were to have a digital currency, would that be to the exclusion of paper currencies, or would it be side-by-side? ms. lagarde: side-by-side, because we want customers to have their preference. if they still want to hold those banknotes in cash, fine, and it should continue to be global and -- available and around. david: at this point in your life, do you feel discrimination against you in your professional life as a woman? ms. lagarde: it is difficult to hold open discrimination against me, let's face it. but i am very, very much aware of discriminations against many women, many young women, many women in all parts of the w

the central bank and central bank currencies fit for the century we are in, which is why we are looking at central bank digital currencies so that instead of having banknotes and cash in our wallets, we can have exactly the same thing but in a digital form. i was keen to push the cbdc on our agenda. i believe that we have to stand ready for that. david: if the ecb were to have a digital currency, would that be to the exclusion of paper currencies? or would it be side-by-side? christine: side-by-side. we want customers to have their preference. it should continue to be available and around. david: at this point in your life, do you feel discrimination against you in your life as a professional? christine: it is difficult to hold open discrimination against me, let's face it. i am aware of discrimination against many young women in all parts of the world. ♪ david: in recent years central banks have been worried about something called climate change. why should central bankers be worried about climate change? is that something in your purview? christine: to me it is a no-brainer consider

so central banks accordingly middle. if you raise interest rates a little bit yes, you can start to ring inflation down. they want to push them a little higher but unfortunately it is that balanced act between which way do you go? break the debt payments to ray — mcgee's energy prices or do you go the other way? energy prices or do you go the otherway? it energy prices or do you go the other way? it is a balancing act at the moment. this week we have the bank of england who are looking to potentially raise rates on thursday and we have the federal reserve who are going to start to reduce the amount of constant —— quantitative easing they are putting into the economy and as you say the rba in australia have announced that they are keeping rates on hold and last week the bank of canada stopped their asset purchases. it is a real transition period at the moment and difficult balancing raising interest rates with high inflation.— raising interest rates with high inflation. great to talk to ou. high inflation. great t

that will make the central bank and central bank currencies fit for the century we are in, which is why we are looking at cbdc, central bank digital currencies. so instead of having banknotes and cash in our pockets, we can have exactly the same thing but in a digital form. all of us are working on this, and we are looking to push the cbdc issue on our agenda. i believe we have to stand ready for that. david: if the ecb were to have a digital currency, would that be to the exclusion of paper currencies, or would it be side-by-side? ms. lagarde: side-by-side, because we want customers to have their preference. if they still want to hold those banknotes in cash, fine, and it should continue to be global and around. david: at this point in your life, do you feel discrimination against you in your professional life as a woman? ms. lagarde: it is difficult to hold open discrimination against me, let's face it. but i am aware of discriminations against many women, many young women, many women in all parts of the world. ♪ >> you served two terms at the imf and you could have served anoth

it is the balancing act that i think all central banks have to go through. we really look at the balance of risks to the outlook. at the moment, we see them finely balanced. on the upside, the risks are that we had a very strong economy. inflation expectations lift. we can see that calm happening in the near term. on the near side, interest rates have moved a long way here in new zealand. mortgage rates are nearly 2% up from their lowest in january. we have to be navigating having covid in our community, which is a very different strategy than we experienced over the last 18 months. we would see things evenly balanced. kathleen: what would tell you that you have to be more aggressive, that the balance of risk have shifted? at the press conference with you and the rest of the team, it was pretty clear that there was a concern that the balance of risk could shift. christian: yeah, that's right. we have the benefit that we meet again and can decide if we want -- where we want to take the cash rate from here. to the upside risks, it comes back to inflation press

central banks won't do that. they'll have limitless supplies of digital currency because that's what they do right now with the theocracies though, they will be able to mine those. and essentially, if you're a j. p, morgan, or if you're a mastercard, if you're any kind of big player in the space, that's who you want to be aligned when you want to be aligned with the entity that not only has the ability to mine coins into infinity, but has the military power behind it to enforce that, and you just mentioned mastercard because their ceo said on a recent call that the company is making plans to support c. b c's. is that different of an approach supporting been supporting the traditional clearances like we just mentioned? well, it is a little bit of a different approach. one of the reasons for that is because you don't have to decide which currencies are going to be winners and losers. right? so right now you have thousands of crypto currencies out there. if you're mastercard, you're looking at that same or i which o

the central bank started printing money at will added or removed zero's former central bank. governor gideon, go know who was the chief, the country's chief economist called it. the casino economy quickly became a country millionaires. billionaires and millionaires and quadrillion airs. and no time, i think you meant, right. so he and himself called at the casino economy, the guy printing the free money. yeah, absolutely. yeah. but the purchasing power of that free money goes to 0 and, and, and as a cognitive dissonance, you're like, i'm a co drilling air, but a cup of coffee cost $9.00 trillion gazillion 1000000000. right, so, garbage in, garbage out. remember that from 20 years ago, that was a popular idiom. hey, we're going to take a break, and when we come back, much more coming your way. ah, well, the pandemic, no, certainly no borders. i'm just like to tease a new face is emerge. we don't have a terribly, we don't to look back seen, world needs to be ready. people are judgment, common crisis with times. we can do better, we should be doing better. every one is contributing each

jonathan: the rba, the federal reserve, the bank of england -- a ton of central bank decisions. lisa: they are going to announce tapering. the question is whether they start november, december and whether they push back against rate hike expectations. jonathan: will we get sufficient pushback to the rate hikes christ into the front end of this yield curve? kailey: we saw that christine lagarde ab gave a weak attempt at pushing back. we understand that she was advised not to do that. do that would be a we move at this meeting? i was talking to steen jakobsen early this morning. he said central banks are so far behind. kailey: -- have sacked their manager. that happened in the last 30 minutes. the first manager is gone. tom keene failed to show up for work. lisa: causation is not correlation. but we are throwing it out there. should we will -- jonathan: should we wake up tk? up 19 on the s&p. there is a left in this equity market, remarkable. who would have thought that amazon could deliver the earnings they deliver and this market would close friday and another record? bond marke

the central bank started printing money at will added or removed zeros, former central bank, governor gideon. go know who was the chief, the country's chief economist called it the casino economy. we quickly became a country millionaires, billionaires and millionaires in the and quadrillion areas in no time. i think you meant, right? so here in the himself called that the casino economy, the guy printing the free money. yeah, absolutely. um, but the purchasing power of that free money goes to 0 and, and, and as a cognitive dissonance, you're like, i'm a cool drilling error, but a cup of coffee cost mine fairly a gazillion $1000000000.00. right, so garbage in, garbage, i remember that from 20 years ago, that was a popular idiom. hey, we're going to take a break and when we come back, much more coming your way. ah, ah, it's been 30 years since the soviet union collapsed. long miss gotta go to chill them on to what the problem yet nuclear you talk so, so shown where you swore trust someone call it ukraine was one of the independent states that emerge from the ruins of a super awesome wou

fed president seeks continuity at the central bank. up next, we hear from state street. if you have any questions for our guests, ib+tv . do not miss our exclusive conversation with the dutch central bank governor and ecb governing council member. that is at 9:00 a.m. u.k. time. this is bloomberg. ♪ >> this is a good team at the fed. >> this is sort of the dream team. >> this is a don't rock the boat move. correction there will not be any conflict on monetary policy. >> this is the central case that the markets expected. >> to not reappoint powell would have been quite negative for the markets. >> the announcement that it is giving the market more confidence with the pricing of rate hikes for next year. >> we will get a taper. >> we still have the fed on wait and see. >> they stick with the current base and then hike once you get to the end of that. >> we are at a point where stability is really important. >> continuity. >> total continuity. >> continuity is a good thing to have at the central bank and that is what we are going to have. tom: some of our guests on b

shery: isn't this exciting when we have central bank decisions? in the past year, nothing has changed. all of a sudden, all of these decisions are market moving. that is what we saw in singapore as well. last month they surprisingly tightened policy and we are hearing from the managing director, the chief central bank, that he is ready to act on inflation. >> we know it can't last forever. there will be adjustments needed. how long they last is hard to say. the longer they last, you have risk that some inflation becomes entrenched and expectations build. that is a big unknown and it is a risk factor. shery: we had inflation coming in above the central bank's target of 2.5%. we will have more from that conversation with the monetary authority of singapore later this hour. hear what he says about the cities ambitions to become a global hub. >> speaking event missions -- ambitions, this comes on the back of what many see as disappointing results from g20 leaders. president biden saying the u.s. is willing to become a global leader when it comes to cl

the central bank is finding they have to respond. haidi: we are also starting to see a theme of stagflation. data shows the extent of how the supply shortages globally are starting to weigh into the dynamic of parse pleasures. -- price pressures. >> i have said to many people this might be an analogy that doesn't play too well in australia, stagflation is like the abominable snowman. much discussed but never seen. i don't think were going to see it here. most central bank authorities i think would agree you don't have stagflation when you have a sub 5% unemployment rate. the two concepts are rather inconclusive. there seems to be not a lot of problems with consumer demand. it is on the supply side and a lot would reason that once it is resolved, economic growth will pick up again. shery: when do you expect tapering and eventual rate to happen in the u.s.? >> i should refer to your bloomberg forecast. i think the tapering will start this month. that they will stick with that plan irrespective of the weaker economic growth numbers in t

the central banks are almost following the market a little bit. not too worried about any big shocks. the central bank so sensitive to that. they do not want to disrupt the strong rebound. to a certain extent, maybe the market got it right. definitely in terms of inflation numbers. people are so cautious about that spiraling away, but actually we are seeing modest moves from the central banks and a lot of signaling as well. tom: where you stand in terms of your regional bias? i am focused on u.s. versus europe. is the bias toward you given that tilt of value toward cyclicals? louise: we should have more strength within the u.s., and the u.s. continues to be a very strong market, doing well the last couple of years. the consumer in the u.s. is very strong. they have a lot of support from the infrastructure bill still coming through. maybe the main thing is underway, emerging markets. that is an area still struggling with the delta variant, a loss of disruption, manufacturing not coming through as strong as they have been. maybe that is where we are

is it a sign central banks are a risk of making a policy mistake? >> i think for the fed, it is probably in line with what the mandate is. it is not the same fed as the last tabor. -- the last tabor. there going to last inflation, and deviations from maximum employment rather than deviations from rates. on the whole, that system towards lower rates for longer. yvonne: what does it mean about the transitory inflation rate? it is said that they are losing ground right now. is it for longer, or are we heading into persistent inflation? >> for economies and central bankers, it generally is a lot longer, a year or more. so it is not a particularly useful word. i would say supply will come back eventually. they are sending signals to suppliers to increase capacity, investments. more of a climbing issue. what you want to avoid, or what would be very hard is perhaps a flood of supply coming on as demands got turned out. you may have a good chance of seeing deflation at some point next year. rishaad: the people recovering in different ways, different places.

and the central bank is combating those high levels. beyond inflation, i think instability is -- this is all going to weigh on erdogan's popularity really. elections coming up in 2023. question is can he even get that far? tom: what is the connotation risk from the turkish lira -- contagion risk from the turkish lira? >> remember that the cbrt is cutting rates at a time when all other emerging markets are hiking. that is definitely putting pressure on the lira. i think inflation could filter through. those largest trading partners are germans, for example. as for emerging markets, i think the biggest risk of contagion is sentiment as a whole. towb in where near as aggressive as what we're seeing. tom: ok. thank you very much for joining us and breaking down what is happening with the turkish lira. let's get the bloomberg first word news. german chancellor angela merkel held an emergency meeting last night with the leaders of the next government coalition covering escalated covid cases. she said the latest virus surge is worse than anyth

they need all the central banks to print all this money. they need to increase their place and rapidly, but they can't call it that because people are now starving to death. so they're going to call climate change and we're worried about climate change, but that's nothing to do with it. it's just another bal, after banks, again. exactly. and shifting that overton window, the guy this a c i o of a hedge fund goes on to say, that's how the overton window works because 100 trillion plus somehow feels quite a bit less than 150 trolley. and when you say $150.00 trillion dollars a few times and honestly doesn't seem so big after all, when you think about it, the cost is spread over about $3.00 decades, which leaves that just 5 trillion per year. and that number used to feel utterly out of reach until 2009 when the global financial crisis sparked the 1st 3 trillion dollar u. s. federal government budget. so there's the shifting overton window and we will have to get up to a quite jillian by the way, because that's the size of the derivatives bubbl

let's talk about central banks first off. the fed preparing to taper. christine lagarde says conditions for rate hikes will not be met into next year. today, eurozone unemployment data shows that the labor market has already recovered. the overall economy not far behind. we have just seen the polish central bank raising rates by 75 basis points. nobody expected that. they are leaning in on reasonably aggressive inflation they are seeing in that country. lufthansa flying high. determine carrier delivering surprise profit driven by superstrong cargo and a passenger revival. with billions of dollars being pledged in the energy transition , the most ironic story of the day is that a wind turbine maker is down hard. this as shortages and high steel costs hit its bottom line. let's talk about where we are for the markets, where we are with equities. equities our bid once again. we are up 0.2%. we have cleared for 80 on the stoxx 600. huge line in the sand, fresh record. got material stocks, the miners at the top of the market, the energy stocks at the bottom

. >> our top story this hour, a bet on central bank tightening. goldman sachs says it is seeing the doubling of the federal banks taper. plus, the bank of japan's newest board member sounds an optimistic note on inflation. paul: we have just opened for trade in australia. we have a staggered open, so it's hard to get a read on things. right now, it's looking flat. u.s. markets are closed, so there isn't much of a lead in. new zealand has been trading for a couple of hours currently weaker. we just heard from the reserve bank of new zealand and we will hear more about those remarks in a moment. nikkei futures in positive territory. we will have tokyo cpi numbers out a little later on. the middle east is looking higher by 1/10 of 1%. u.s. markets are closed today. they will reopen on friday u.s. time. in terms of what's going on in the u.s., we have been closely watching the fed. it took a hawkish turn according to the minutes of its last meeting. now we have goldman economists raising their expectations around the taper. they see it speeding up. th

why didn't central banks do this in the 1st place on their own? now they're running behind crypto currency and trying to, to essentially catch up with it and mimic what's already been done and we're working. and when we talk about this regularly bad, because when we talk about c, b, d, c, and you hear, you know, j. p. morgan embracing that idea, why so much toward c, b d, c is rather than any other traditional crypto currency. is it all about the volatility there? now it's about, it's about being in bed with the powers that be, listen, it is cvd, sees the central bank back digital currency. what does that mean? it simply means that governments that can print their own money will soon be printing their own digital currencies. course i don't have to print them, right? they'll be mining them, mining their own digital currencies and all the concerns they have by the way, about the mining process and the cost of electricity. suddenly they won't care about that anymore when it comes to their own currency. but here's what will be happening is now you hav

market side, is almost a central-bank mistake. sure and is rising, which means we'll get a lot -- short and is rising, which means we'll get a lot of rate hikes. if not the best scenario. i do think again, the shore and is going to move up as much as people think -- short end is going to move up as much as people think. we should have some positive news on both of those sites. . the other thing to keep in mind, we've seen a bit of an under shoot during the summer, a bit of a reaction again, maybe 170 a bit high due to challenges ahead. and we seem to be coming back to arrange that i think makes a lot more sense for the current environment. tom: ok, we appreciate your time this morning, cio at flow bank. let's cross over to glasgow, live pictures of the u.k. prime minister boris johnson there, standing of course on the stage. and he's going to be awaiting those leaders. about 100 leaders are going to be waiting for cop 26, signed after hours of difficult of negotiation in rome. but his communique has left many disappointed. as fran

they need all the central banks to print all those money. they need to increase in inflation rapidly, but they can't call it that because people are now starving to death. so they're going to call climate change and we're worried about climate change, but that's nothing to do with it. it's about just another bail out for banks again . exactly. and shifting that overton window, the guy this a c i o of a hedge fund goes on to say, that's how the overton window works because 100 trillion plus somehow feels quite a bit less than a 150 trillion. and once you say a $150.00 trillion dollars a few times and honestly doesn't seem so big after all, when you think about it, the cost is spread over about $3.00 decades, which leaves it just 5 trillion per year. and that number used to feel utterly out of reach until 2009 when the global financial crisis sparked the 1st 3 trillion dollar u. s. federal government budget. so there is a shifting overton window and we will have to get up to a quadrillion by the way, because that's the size of the derivatives

they need all the central banks to print all those money. they need to increase in inflation rapidly, but they can't call it that because people are now starving to death. so they're going to call climate change and we're worried about climate change, but that's nothing to do with it. it's about just another bail out for banks again . exactly. and shifting that overton window, the guy this a c i o of a hedge fund goes on to say, that's how the overton window works because 100 trillion plus somehow feels quite a bit less than a 150 trillion. and once you say a $150.00 trillion dollars a few times, it honestly doesn't seem so big. after all, when you think about it, the cost is spread over about $3.00 decades, which leaves it just 5 trillion per year. and that number used to feel utterly out of reach until 2009 when the global financial crisis sparked the 1st 3 trillion dollar u. s. federal government budget. so there's a shifting overton window and we will have to get up to a quite jillian by the way, because that's the size of the derivative

central banks to remain accommodative. but once the economy gets over this wave and once we are clear about the health implications, and once we get out of winter, then probably the pace of tightening will be more rapid because the economy will have been running hotter longer. dani: to your point about inflation and the impact from here on out, as we have seen this playbook happen before, what happens is consumers want durable goods instead of traveling, things like that, and that is part of what has contributed to inflation. if we get a repeat of that, do we see more aggressive inflationary pressures coming to the fore because of this variant? guest: it could be that, but i think the demand shock is largely taken place. i think the bigger issue is supply chains. you have lack of mobility, whether it is shipping things like trucks, and that reduces the effectiveness of the supply chain. it becomes supply chain shock rather than the demand side shock, which we saw last year, where there was a switch from services to goods.

the central bank started printing money at will added or removed zero's former central bank. governor gideon, go know who was the chief, the country's chief economist called it the casino economy. we quickly became a country millionaires, billionaires and millionaires in the and quadrillion areas in no time. i think you meant. right. so here and for himself called that the casino economy, the guy printing the free money. yeah, absolutely. um, but the purchasing power of that free money goes to 0 and, and, and as a cognitive dissonance, you're like, i'm a cool drilling error, but a cup of coffee cost mine fairly a gazillion $1000000000.00. right, so garbage in, garbage, i remember that from 20 years ago, that was a popular idiom. hey, we're going to take a break and when we come back, much more coming your way. ah, ah, you will show this to us. of car was discontinued more than 20 years ago. even though stayed home with a zealand just important practice. it took 5 years to close the gap on the will car industry from the drawing board to the 1st finished model skips this. will the certi

central banks won't do that. they'll have limitless supplies of digital currency because that's what they do right now with the currency though, they will be able to mine those. and essentially, if you're a j. p, morgan, or if you're a mastercard, of your, any kind of big player in the space, that's who you want to be aligned when you want to be aligned with the entity that not only has the ability to mind the coins into infinity. but it has the military power behind it to enforce that. and you just mentioned mastercard, because their ceo said on a recent call that the company is making plans to support the b. c. is that different of an approach supporting been supporting the traditional currencies like we just mentioned? well, it is a little bit of a different approach. one of the reasons for that is because you don't have to decide which currencies are going to be winners and losers, right? so right now you have thousands of crypto currencies out there. if you're mastercard, you're looking at that same or i whi

the central banks beat themselves into this hole. francine: i don't remember anything you said anything nice about policy makers. it is prosecute unprecedented. i know it is not 2008. we are all stuck at home. at what point is it they can't normalize b.a.a. because of 2008 and they are stuck in this pattern or they misunderstood the gravity of the pandemic and it is more severe they thought it is. >> i think that understanding relative importance of demand and supply shocks has been a huge problem. there is a tendency to fight the last battle. the fed said under new framework it would respond realized outcomes and not engage in the forecasting game. that was seen as dovish. in the past, maybe it was a policy error to be tightening as aggressively as 2018. it was based on the idea that inflation would move above target. we have a different problem now. the fed said it would resolve this issue of tightening prematurely. the realized outcomes are highly inflation rained yet there are still excuses being made for why policy shouldn't be

. >> this is a big interview with the new zealand central bank. kristen joining us live from wellington on friday. let's get you to vonnie quinn who has the first word headlines. >> thank you. >> a european parliament committee ready the new tech rules that could affect major u.s. companies. competing messaging apps they have to be interoperable to defend people from using one or another. copy would have to stop targeting some ads to children. chinese authorities have warned alibaba and baidu to drink and oversight of their services to telecom scans. there are a lot of companies suspected of being fraudulent that have access to alibaba. china has called on people to stop the malicious hype about the tennis star. her disappears earlier this month after alleging an affair with a top come at his party official pundit outcry. a foreign minister spokesman said that the case should not be politicized. she was seen in images over the weekend by chinese state media and the international and fix committee. -- a limbic -- international o lympic committee. t

when a central bank screws up, what do they do? frances: it depends on who they are, but traditionally they have pivoted back. we are going to see central bankers who may be get a little too excited in validating those front and moves and you see those longer and start to move down and this is saying to a lot of economists that in 2022 growth of inflation slows pretty heavily and central banks will want to pivot and will have to pivot towards more dovish language. the challenge is we have to traverse some challenging curve flatters, some challenging economic environments. tom: the 20 year yield is higher than the 30 year yield. it is an inverted yield in the 20-30 spread. i have never mentioned that on air before. lisa mentions that daily. that is another world. francis, the fed can control how far out the curve and if they can only control so far out, why do they care what the farther out curve does? frances: the 20-30 is less of an economic signal and more of a technical development. what you should be watching is the two-year ve

it will force central banks to adapt communications. the market keeps speculating or worrying about the policy mistakes. they will have to be very diligent. unless they have good reason to believe inflation is transitory. but for now, we have seen central banks sticking to the plan, which is to err on the side of caution and not react to short-term inflation prices. tom: what do you think is the impact on the consumer? is there a concern? do you need to start repositioning away from companies in sectors that are dependent on that very strong consumer demand that may now be under pressure as a result of the very high prices? >> i would say that it is very well oriented. we have a very strong labor market. we have very high asset prices. we are very expansionary budget. we feel good about the private sector and the customer in particular to be in a position to have stopped some inflation. [indiscernible] are you going to see at some point wage inflation picking up? it could be a red flag. we don't find much to be done for that yet, but th

they need all the central banks to print all those money. they need to increase in inflation rapidly, but they can't call it that because people are now starving to death. so they're going to call climate change and we're worried about climate change, but that's nothing to do with it. it's about just another bail out for banks again . exactly. and shifting that overton window, the guy this a c i o of a hedge fund goes on to say, that's how the overton window works because 100 trillion plus somehow feels quite a bit less than 150 trillion. and once you say a $150.00 trillion dollars a few times and honestly doesn't seem so big after all, when you think about it, the cost is spread over about $3.00 decades, which leaves it just 5 trillion per year. and that number used to feel utterly out of reach until 2009 when the global financial crisis sparked the 1st 3 trillion dollar u. s. federal government budget. so there's the shifting overton window and we will have to get up to a quite jillian by the way, because that's the size of the derivatives

just buy the central bank will normalize ethics policies. but the rest is still very muted and a lot of it has to do with the fact that fiscal subsidies remain in place, so you have it in indonesia and malaysia as well. the exception here is the philippines. it has been a story of weak recovery, and even though strong gdp numbers output levels at 6% lower than -- 6% lower than pre-pandemic. some recovery, but not as strong as the others. it has inflation that is well above target for several months now. i think it will continue to be the case, giving -- given surging energy prices and the rest of the cpi basket. i think it's a fairly tough environment for policymakers and these things in particular. david: what can and should they do? because, consumption, we are back, but it is one off and you get the inflationary effects coming through, what does 2020 to look like for you? >> so the sustainability of the recovery in q3 still remains a big question mark for me. two things. one, we have been saying all along, the fiscal support measures, rel

kathy: if you're worried central banks were going to fall behind the curve, a concern when we got the mixed information from the bank of england that you would see it statement and not flatten. i think what is happening is a, addition was off and b, overconfidence in the fed. i think that yields are too low across the curve relative to the pace of economic growth that we are expecting in 2022. i think the market reaction is not indicating some sort of concern that central banks are going to slowly or will go to slowly and let inflation really bubble up. jonathan: george, is that mission accomplished, less reaction in the market based on the payrolls report? george: you can make a very strong statement that what powell hasn't done his avoided the taper tantrum. he has been able to launch that tapering without rattling the market, a huge sign of success. combined with what he said of the last meeting highlighted his ability to finesse the markets to get things moving as it relates to pulling liquidity out of the system and getting the tapering program up and running. he learned the less

we know that in the case of a lie bore bank of england was implicated by central bank. we're going back even further. we know what the company enron did. before i went bus, they were manipulating prices and market manipulations. a huge problem and it seems to go back to the fact again to the central bank that's kept the interest rates artificially low, and therefore the price of manipulating markets by borrowing money is near 0. so the cost of fraud is 0. and you know, if the price of commodities are going up and if the price of gas is being manipulated higher, you can't the central, oh, how can the central bank justify both runaway inflation and no response in terms of raising interest rates? it's and i'm saying like rightly things never go together and last year committing a mass of fraud, tyson? yeah. these, these commodity price movements are exposing some serious central bank weaknesses. and i think, ah, one of the responses has to be to ensure that, that these markets are either regulated, they're not the negative price disaster that we saw in crude oil last year

they need all the central banks to print all this money. they need to increase in inflation rapidly, but they can call it that because people are now starving to death. so they're going to call climate change and we're worried about climate change, but that's nothing to do with it. it's about just another bail out for banks again . exactly. and shifting that overton window, the guy this a c i o of a hedge fund goes on to say, that's how the overton window works because 100 trillion plus somehow feels quite a bit less than a 150 trillion. and once you say a $150.00 trillion dollars a few times, it honestly doesn't seem so big. after all, when you think about it, the cost is spread over about $3.00 decades, which leaves it just 5 trillion per year. and that number used to feel utterly out of reach until 2009 when the global financial crisis sparked the 1st 3 trillion dollar u. s. federal government budget. so there's a shifting overton window and we will have to get up to a quite jillian by the way, because that's the size of the derivative b

of england bank, it was implicated, it was implicated a central bank. so we going back even further, we know what the cow, what the can and radi and did the, the, the, before he and when they are, when they passed, they were many, anybody where many editing from the, acting from an acting from the price of the price of the essence, as the answer, the recommendations and attitudes, prominent a woman named when it went to go and it back to when it is fact. when it again to the senate again to the central bank until bank until bank. it's kept interest rates artificially low, and therefore the price, therefore, the price of manipulating markets by borrowing money, the bars near 0. so hosta fraud, fraud at a thorough, thorough a hero and a mirror hero hero ino era. you know, era, you know, era, the price of commodities are going up and if the price of gas being maninder maninder manipulated higher, it hot, hot. can i at the center of the central hospital, can the still central bank justified both that both runaway inflation and no response else in terms of r

the central bank started printing money at will added or removed zero's former central bank. governor gideon, go know who was the chief, the country's chief economist called it the casino economy. we quickly became a country millionaires, billionaires and millionaires and quadrillion airs. and no time, i think you meant, right. so he and himself called the casino economy, the guy printing the free money. yeah, absolutely. yeah. but the purchasing power of that free money goes to 0 and, and, and as a cognitive dissonance, you're like, i'm a co drilling air, but a cup of coffee cost $9.00 fairly and gazillion 1000000000. right? so, garbage in, garbage out. remember that from 20 years ago, that was a popular idiom. hey, we're going to take a break and when we come back, much more coming your way. ah, who's, [000:00:00;00] who's, [000:00:00;00] who's in ah, welcome back to the kaiser report. i back guys are a timeout. it started back to tyson slocum, of the public citizen energy program in washington dc. tyson, welcome back. oh, great to be here maps. all right, let's talk oil and gas. na

we await the fed and other central bank action. kicking off this week with that abandonment of the yield target. we are seeing upside of about 2/10 -- .2%. new zealand up by .3% and a little momentum in the kiwi dollar after we did have better-than-expected labor market data out of new zealand this morning. s&p futures looking soft. also on the retreat ahead of the fed decision and the opec output target setting policy meeting expected this week. we are also continuing to watch reactions on the bond market. singapore bank earnings, expected to lift profit rebound out of the singaporean lenders. we are seeing income coming in above expeditions, over $1.5 billion. the third quarter coming in higher than expectations, $1.6 billion contrasted against excitations of $1.47 billion. the next commission income also a beat on expectations of gains in year. we expected a profit surge from boosters on credit, double-digit growth in income as we see economic recovery. we are also getting numbers from ocbc, the southeast asian lender, coming in

central banks will respond -- trying to respond on a number of fronts. powell has a difficult message to walk ahead of himself this week. he can't be too benign on inflation or you will have the bond market vigilantes pushing that narrative. at the same time, the market has undergone quite a significant front and repricing -- front end repricing. you don't want to see the market go crazy and powell endorses it. central bankers are in for difficult messaging over the next couple of years, as this inflation narrative is in our view, not quite as transitory as people have made it out to be and that's probably more of a structural trend rather than short-term. jonathan: there must be some week list -- weakness somewhere. italian tends, 1.27. this is a world where central banks will have limitations on how far they can push the policy rate. does 1.20 seven in italy get it done? do you wait for more? lisa h.: we are not quite there on italy. i will say emerging markets are starting to open up as an opportunity for us. we have seen dramatic underperformance in

the central bank started printing money at will added or removed zero's former central bank. governor gideon, go now, who was the chief? the country's chief economist called it. the casino economy quickly became a country millionaires, billionaires and millionaires in the and, and quadrillion areas and no time, i think you meant. right. so he and himself called it the casino economy, the guy printing the free money. yeah, absolutely. um, but the purchasing power of that free money goes to 0 and, and, and as a cognitive dissonance, you're like, i'm a co drilling air, but a cup of coffee cost $9.00 fairly and gazillion 1000000000. right? so, garbage in, garbage out. remember that from 20 years ago, that was a popular idiom. hey, we're going to take a break and when we come back, much more coming your way. ah, oh. and the british and american governments have often been accused of destroying lives in their own interests. while you see in this, these techniques is to stay devising methods to essentially destroy the personnel. to that individual pop by scientific means. this is how one doc

they need all the central banks to print all this money. they need to increase replacing rapidly, but they can't call it that because people are now starving to death. so they're going to call climate change and we're worried about climate change, but that's nothing to do with it. it's just another bal, after banks, again. exactly. and shifting that overton window, the guy this i c i o of a hedge fund, goes on to say that's how they overton window works. because $100.00 trillion plus somehow feels quite a bit less than $150.00 trolley. and once you say $150.00 trillion dollars a few times and honestly doesn't seem so big after all, when you think about it, the cost is spread over about $3.00 decades, which leaves that just 5 trillion per year. and that number used to feel utterly out of reach until 2009 when the global financial crisis sparked the 1st 3 trillion dollar u. s. federal government budget. so there's the shifting overton window and we will have to get up to quite julian by the way, because that's the size of the derivative bubbl

filters into central banks. you look at the new variant, does that exacerbate some of the problems we have? fiona: food inflation is already a massive problem. more in countries like the u.s. and the u.k. then in some of the asian countries. what i think something like a new variant -- we always thought this could happen and it will be fascinating to see how that impacts energy prices which will likely flow through to food prices as well. tom: there is a link between energy prices and fertilizer and how that plays into the food space. how much divergence is there in the food commodity space? fiona: look at coffee which we all need to have at this time of the morning, the coffee index is up 77% year-to-date and that has to do with bottlenecks in places like brazil and with issues like farmers not delivering on contracts. it has to do with all of the things we are seeing in terms of supply chain issues and higher energy prices. but other food commodities have not risen quite as high. francine: is this something th

well, the bank of england unchanged that near 0, near a p and central bank, unchanged it near 0 federal reserve bank of america unchanged, that near 0. that's the latest moves, or lack of lives by these 3 major central banks, that some would argue, control the global economy for the most part because they have the greatest reach. they've got the greatest military strength, the greatest influence post world war 2. and they all are talking about raising rates at some point, the future as they've been saying that for 20 years. but the baseline fact is that you cannot taper a ponzi scheme, right? the money printing is the base layer for this huge permit scheme. that now is spilling over into a hyper inflationary collapse of the viet monies against assets and particularly against big coin. but we're at, we're now in the crack up boom phase. that was articulated by economists time in minsky. and this is exactly why am or germany, where people are fleeing the fee of money into assets like stocks for the time being of escape and the, the result very quickly. now, as we've been predicting now fo

well, the bank of england unchanged at near 0, near a p and central bank on shames at near 0 federal reserve bank of america unchanged, that near 0. that's the latest moves, or lack of lives by these 3 major central banks, that some would argue, control the global economy for the most part because they have the greatest reach. they've got the greatest military strength, the greatest influence post world war 2. and they all are talking about raising rates at some point the future as they've been saying now for 20 years. but the baseline fact is that you cannot taper a ponzi scheme, right? the money printing is the base layer for this huge permit scheme. that now is spilling over into the hyper inflationary collapse of the viet money's against assets, and particularly against big coin. but we're at, we're now in the crack up boom phase. that was articulated by economist time in minsky. and this is exactly why mar germany where people are fleeing the fee of money into assets like stocks for the time being as an escape and the, the result very quickly. now, as we've been predicting now f

look, central banks should be independent because we don't want central bank policy to be influenced on a high-frequency basis by the political environment. with regard to the u.s., there is a chance that if, in re-nominating and reconfirming a new fed chair, let's say it is lael brainard, for argument's sake, if the market believes this is a politicized decision, you could see inflation breakevens in the u.s. go up. the margins start to price in more inflation over the longer haul. the dollar could come down, but other central banks have problems with regards to politicization. i think what is going to be relevant here is how the administration spends this nomination if it is not jay powell who is renominated. can they convince the markets that lael brainard is not that different from jay powell? i think it is a clear signal they need to make in order to not overly react to a change at the head of the federal reserve. jonathan: didn't we see this play out for years ago when chair yellen was dropped for chairman powell? thierry: yes, but we weren't in a situation where we had such hi

they need all the central banks to print all this money. they need to increase in inflation rapidly, but they can't call it that because people are now starving to death. so they're going to call climate change and we're worried about climate change, but that's nothing to do with it. it's about just another bail out for banks again . exactly. and shifting that overton window, the guy this a c i o of a hedge fund goes on to say, that's how the overton window works because 100 trillion plus somehow feels quite a bit less than a 150 trillion. and once you say a $150.00 trillion dollars a few times, it honestly doesn't seem so big. after all, when you think about it, the cost is spread over about $3.00 decades, which leaves it just 5 trillion per year. and that number used to feel utterly out of reach until 2009 when the global financial crisis sparked the 1st 3 trillion dollar u. s. federal government budget. so there's a shifting overton window and we will have to get up to a quite jillian by the way, because that's the size of the derivative

bank or a series of central banks that have effectively committed themselves to back stopping what seems to be every risk asset, insight markets, events the adapt their expectations accordingly. and to say it's, it's time to pile in, we're going to get bailed up by the fed somehow as fully inflation. well, you know, that's all the more recent, i guess for them to continue to put money in the market because of the you that cash trash. i believe that ray dalio a bridgewater express that you not too long ago. right. what is the inflation picture in canada? it's kind of unfolding in different ways, different countries. and my understanding is that it is people saying it and the consumer prices of things for energy, for gas, i believe it's happening. what, what's the picture there? you know, i think this is a global problem. there has been way too much reliance on just in time inventory accumulation practices and the belief that the whole offshoring model was seamless . they would never be any kind of supply side the disruptions cover has, has, i think, proven in the the latest example why th

and this inflation raging gray question, i guess when you had a central bank or a series of central banks that have effectively committed themselves to back stopping what seems to be every risk. acid insight markets eventually adapt their expectations accordingly. and to say it's, it's time to pile in, we're going to get bailed up by the fed somehow as really, inflation well, you know that that's all the more recent, i guess for them to continue to put money in the market because they'd be due that cash is trash, i believe that ray dalio a bridgewater express you not too long. right. what is the inflation picture in canada? it's kind of unfolding in different ways, different countries. and my understanding is that it is people are saying it and the consumer prices of things for energy, for gas, i believe it's happening. what, what's the picture there? you know, i think this is a global problem. there has been way too much reliance on just in time inventory accumulation practices and the belief that the whole offshoring model was seamless . they would never be any kind of supply side the d