this is bloomberg. [speaking foreign language] that's -- ♪ kriti: this is bloomberg markets, i'm kriti gupta. we are seeing a taste in a slowing economy, housing and building permits flipped in april as supply chain desha supply-side challenges and the steepest mortgage climate kickoff. let's talk to veronica, thank you for joining us. let's dive in with what the markets seem to be interpreting. there's a different between an outright recession, a contraction, and a slowdown in the economy. but it seems like the markets are actively pricing in a recession. are they right to do so? >> the forward-looking nature is going to be one step ahead. in the next six months or so, we are not worried about the sessions in the near term, but markets are right to react to a more hawkish fed in a step that might have to it raises concerns. kriti: when you look at inflation, you should have to parse in two categories, the postwar inflation of commodity drive, higher food prices, and the prewar inflation of used cars

coming up, a bloomberg scoop. gabe is telling investors he plans to wind down his capital management after billions of dollars of losses. details ahead. this is bloomberg. ♪ ed: time for our crypto report. a brutal market selloff. bloomberg back with us, but before we get into digital assets, we have to argue about the plan to wind down. >> remember, this is amazing scoop by bloomberg. really the poster child here of that gamestop short squeeze, even after recouping some of the losses that he had in early 2021, is now down again for the year and telling investors that he is returning money unwinding down. remember this was right after he initially tried to reboot the fund in a different fashion, scrap the plans, and now remember, i have to say, wall street has been expecting casualties in the hedge fund industries and it starts here with melvin capital. ed: give me a quick update on the markets in the world of currency. >> something interesting here is even though you saw that brutal selloff in the markets, espe

this is bloomberg. kathleen: thank you. as e.u. sanctions hit russian oil, why that could spell the end of the opec plus production. analysis coming right up. this is bloomberg. ♪ what if you were a global bank who wanted to supercharge your audit system? so you tap ibm to un-silo your data. and start crunching a year's worth of transactions against thousands of compliance controls with the help of ai. now you're making smarter decisions faster. operating costs are lower. and everyone from your auditors to your bankers feels like a million bucks. let's create smarter ways of putting your data to work. ibm. let's create >> take a look at chinese adrs, particularly when it comes to these tech and internet platform stocks. they did jump to bump out the monthly losses. better than expected eco-data and the potential recovery for this factor reassuring some of these investors. we saw chinese stocks capping their first monthly gain since october. in particular, some gains across electric carmakers as well.

this is bloomberg. ♪ dani: -- >> we are going more conservatively than aggressively. to your point, we are dialing down areas. >> it is a different phase, different approaches. neutral to some degree. >> today is more validation that the consumer is not a strong. we are stirring to see inflationary pressures really affect the areas of companies. it remains to be seen where that goes. dani: futures pointing to moyer pain ahead in europe. jp morgan says we can climb out of this hole and sees no recession. joining us now is william davies , cio from columbiathreadneedle. william: these are interesting times. when you get the shark moves as we have seen, there are opportunities that arise. absolutely, yes, there are opportunities there. we can be optimistic in certain areas. economies are slowing. manus: we are still sort of doom and gloom. almost a nihilistic. take me out of the bottom of my class, where is the missed opportunity? william: doom and gloom is right. there is a lot of the around. i think on

this is bloomberg. ♪ francine: welcome back to the open. it's really all about, the european stoxx 600 down 2.3%. if you look what global stocks are doing, it is just about bear market, a loss of 20%. we don't understand with their is crypto moving stocks, or inflation, we knew it was there. we have some great stories including an exclusive from our u.k. team. u.k. economy unexpectedly contracted in march as the cost of living sought consumers cut back on spending. meanwhile, the boe it says they will have to raise rates further to control surging prices. he also warned a risk that the worst inflation crisis and decades will take longer to ease fully. tom: how's it going. we have a scorecard of this, we can work through it with our u.k. economy reporter. let's talk about the gdp numbers first, then your interview with the deputy governor of the boe. what does it tell us about the future health of the u.k. economy as we weigh out these cost-of-living concerns? >> we saw an unexpected contraction in mar

this is bloomberg. shery: still ahead, the labour party leader anthony albanese, such to be sworn in as australia's next prime minister. shery: let's look at the major events in the week ahead. the world economic forum is underway in davos, the first in person gathering incident since the start of the pandemic. it comes at a time of massive economic uncertainty. one clue will be the fed minutes on wednesday along with policy decisions in new zealand and south korea. tac will be in focus amid th ctor's $5.5 trillion wipeout. and elon musk will diminish twitter at the meeting this week. we will also get earnings from alibaba and nvidia. haidi: as we know, calling a bottom inditex meltdown is not easy -- in the tech meltdown is not easy. that is in line with long-term averages. analysts say the fall in the evaluations and extreme bearish sentiment could mean there is light at the end of the tunnel. investors will also be weighing in australia the labour party victory in the elections this weekend. and the

this is bloomberg. ♪ dani: this is bloomberg daybreak europe. francine: norwegian energy giant equinor reported earnings that beat estimates. we are joined by the ceo anders opedal. thanks for joining us. it has been 12 months but you also tried to increase gas production. i imagine the situation in ukraine makes it more pressing. how much can it increase by? anders: the war in ukraine is affecting the gas market in europe. what we have done over the last i would say nine months, really is looking for every well we can use to increase production of gas to europe. this quarter compared to last year we increased gas production from, by 10%. in addition, we added another 5-6 pcm of gas to europe. dani: have your customers been reaching out to you concerned, trying to secure more supply? anders: yes. we have constantly, customers talking about securing supply from us. we are in a very good dialogue. we have been relied on for decades to europe and for us it is important to deliver gas at the same level as we do at the moment for now, but also to be

this is bloomberg. shery: still ahead, we speak to the rbnz governor adrian orr after the country's central bank signaled further rate hikes. up next, our exclusive interview with the saudi aramco ceo on oil markets the davos world economic forum. that conversation is ahead. this is bloomberg. ♪ shery: take a look at commodities right now. we have seen gold trading above the 1800 dollars level. we star losses being here back the fed not necessarily more aggressive in the fed minutes. they showed support for half point rate hikes in june and july, already priced in by the markets. natural gas also topping $9 billion in the u.s.. stockpiles are below normal for this time of year. of course, russia's invasion of the ukraine has worsened supplies. wti prices also extending gains in new york. they rallied in the afternoon session. we had some data on stockpiles. and refineries have boosted the highest in many years. shery: sticking with crude, saudi aramco's ceo says oil markets have balanced, but the comp

this is bloomberg. ♪ manus: it is "bloomberg daybreak: europe." i am manus cranny in dubai and dani burger is along side me in london. the jp morgan strategist saying that some markets are overpricing the chances of recession. meanwhile you have goldman seeing risk assets remaining flat. dani: we are all excited you're going to stick around for longer. at the same time we have elon musk telling us that the u.s. economy is probably in recession which will likely last up to 18 months and that is after all of that, we have the fed president of philadelphia saying that they are too slow of reacting to inflation. we speak with our guest, wouter sturkenboom, chief investment strategist at northern trust asset management. your macro review is not changed, so what are all of these doomsters getting wrong? wouter: this environment is a tricky one to navigate, and we all agree that growth is slowing down. will it slip so far into recession that we're going to end up in this new macro environment that will drive market to lower levels than we are today? that

this is bloomberg. ♪ kriti: this is "bloomberg markets." gold is headed for a third straight weekly drop, it's long as one of losses since december. this is an interesting dynamic. gold under pressure in line with this risk appetite when usually when stocks sell off, people should be going to gold and instead, you are seeing dollar strength. jon: that dollar story, you could talk about it for the full half-hour. we don't have all that time. it is a dynamic we will keep watching. i spoke to one market water earlier who made the argument, go back to the 1970's charts, look at the early commodity movers, and a follow one move from gold. the idea that maybe bullion has not had the run that some expected but that might be to come. kriti: let's continue this conversation. gold wears a lot of hats. it also serves a lot of purposes. not only is it the haven asset of choice, but physical gold, there is underlying demand in india, china. you look at my mom's jewelry box. this is important in terms of squaring the spot price with the physical demand.

equities strategist joins bloomberg tv at 3:30 p.m. new york time. this is bloomberg. alix: keeping you up-to-date with the news from around the world, here's the first word. i'm angel luciano. president biden marked one million u.s. deaths from covid by calling on congress to maintain funding for testing and treatment. lawmakers remain in disagreement about how to pay for it. a second assignment today -- second summit today and at quelling the virus. north korea fired three short range ballistic missiles today, just days before president biden's visit to the region, the latest volley from the kim jong-un regime. president biden meets next week with south korea's new leader, who has pledged to take a tough line with north korea. a debt crisis spreading in china. a company has defaulted on a dollar bond, one of the biggest chinese property companies to default on its obligations. global news -- global news 24 hours a day on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in over 120 countries. i am angel luciano. this is bloomberg. ali

this is bloomberg. kriti: this is bloomberg markets. officials are prepared to raise interest rates by another 50 basis points at each of the next two meetings, something the market expected. part of that policy is aimed to cheek -- aimed to take heat out of the housing market. sales fell in april for the sixth straight month. for more, let's bring in the founder of stay-at-home order -- stay at home macro consulting. he start to see a slowdown from the massive move we did see, but the supply demand imbalances are still there. what is your take? >> imbalances are there, they have been for years. we are not building enough housing. that has been a pressure on affordability. what the fed can do is take some wind out of the sails of demand. we saw mortgage rates going up, we are seeing that demand soften up, but the fed cannot build houses. there is a limited ability to deal with the imbalances and there is good research that is showing some of those imbalances on the supply side has been moving around. the world has changed in terms of wo

this is bloomberg. ♪ >> the consensus for the growth this year and next year was quite high, and when i am discounting the impact of the war in ukraine, i have still positive figures on the year this year and next year. that is the reason why i have a baseline scenario which is not a recessionary scenario. guy: that was the former ecb president john claude trichet speaking to us late last week. the latest mliv survey here at bloomberg asked market but does bins which risk they are more concerned about, recession, stagflation, and it ended with a 40% tie on each. silvia dall'angelo, senior economist at federated hermes, joining us now. how high is the risk of a recession, of stagflation? how should you thing about investing in this space? silvia: first of all, stagflation is a bit of a vague concept of low growth and high inflation. but from a technical point of view, what are the thresholds for growth reflation and how long such a period is to last that can be defined as stagflationary. i would say th

this is bloomberg. kathleen: still ahead, with energy security in focus more than ever around the world we speak to one ceo of about how his company uses gravity to store large amounts of power. ahead of that, rising inflation across the globe is taking a toll on emerging market bonds. we will discuss investment strategy with alliancebernstein. this is bloomberg. ♪ gs the way you want—your team, ours or a mix of both. with the nation's largest ip network. from the most innovative company. bring on today with unbeatable business solutions from comcast business. powering possibilities™. >> we are seeing a lot of headwinds>>. >> really huge woodwinds. >> we will see frustratingly high inflation. >> the very intelligent growth inflation rates. >> stagflation unfortunately is the baseline. >> stagflation is toxic for traditional assets. >> is it a soft landing, recession, is it stagflation? >> it started out as the inflation scare. >> the biggest concern is inflation. >> then it begin a growth scare. >

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this is bloomberg. haidi: still ahead, a hong kong businessman and lawmaker says the city's incoming chief executive may negotiate better with beijing then past leaders have. we will discuss why. plus, after the fed's hawkish turn, investment group says the risk of a recession is rising. that is just ahead. this is bloomberg. ♪ >> stagflation is toxic. >> equities by themselves are not a safe place. >> not safe because you lock in a negative real yield. >> there is no safe haven in this marketplace. >> big struggle for investors. >> incredible levels. starting to fray at the edges. >> hard to get a handle on what exactly is going on. >> investors are looking for diversification. >> we are in a stagflationary environment. >> we are >> on the cusp of that. >>people are negative. >> the reality is there is little risk appetite. haidi: guest on bloomberg tv. our next guest is stock market valuations getting back to reasonable levels as long as earnings do not fall apart. he is the director of investments

this is bloomberg. ♪ tom: welcome back to bloomberg daybreak: europe. i'm tom mackenzie in london with manus cranny in dubai. todd boehly has signed an agreement to purchase chelsea from roman of abramovich read the deal is expected to complete in late may. laura, what did we learn about the nature of this deal? >> i know that you are a gunners fan, so i just hope that you are doing okay. but yes, as expected, todd boehly's consortium came through as be winners in that deal. 14.5 billion pounds was the number. that includes the firm clear like capital, and the current owner of ela doctors. -- the l.a. dodgers. roman abramovich will not receive a penny since he has been sanctioned. that contribution will go toward charitable causes, primarily victims of the war in ukraine. 1.7 5 billion pounds toward redevelopment in the stadium. also be junior players. clear like capital will have the share majority, but voting rights will be equally split. the deal has been advised by goldman sachs and the investment form of the former chancellor osborne. but it's impe

a view of twitter and the story for the day on bloomberg radio and bloomberg television. lisa, your observations on the weekend what do i study over the weekend to get to next week? lisa: how much have we priced in growth fears? how many growth fears should we be pricing in? hadley releasing a shift in terms of how the reaction is going to be for the rate hike? is it going to lead to slower growth? right now, you are seeing bond yields rise. i am wondering whether we have washed out all the positions and we are just going to get chopped between fears of growth scare's as well as rate hikes. tom: one of the advantages we have is the red and green of the bloomberg launch blip pad, which is a big data screen. lisa just shows bonds, that's all she wants to look at, is bonds. what i see here is price persistency in oil, in dollar, they just will not give way with sterling 1.21. there is certain things that just will not give it up. that really interests me. lisa: i think that's an incredibly good observation. tom: i did ok there? lisa: i think it's important to note that there

we are on all of your bloomberg terminals and bloomberg devices. if you miss us there, the podcast on itunes and spotify. alix: the s&p flipped into positive territory. we are now flat on the day. coming up, how the plant-based meat industry is going to deal with inflation. we will talk to the ceo of impossible foods coming up next. this is bloomberg. ♪ at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help you keep more of what you earn. this is the planning effect. >> this is bloomberg markets: european close. you're looking at a live shot of the principal room. this is bloomberg. keeping you up-to-date with news from around the world, here's the first world. there is a sign that beijing is strengthening energy ties with moscow as europe turns towards banning imports. china wants to replenish its strategic oil stockpiles with cheap crude from russia. the reserves are tapped during times of emergencies and disruptions. p

this is bloomberg. francine: thank you so much. i cannot rate -- wait to have a football chat with steven major. coming up, growth is expected to move sharply and we will get steven major's piece on that as well. this is bloomberg. ♪ tom: welcome back to the open. the bank of england issued its brute issue on top of the key rates. governor andrew bailey is warning rates to double-digit inflation to a long period of recession. >> we think a lot of the work in terms of the cure is going to be done by the fact that we are historically large shock to real incomes on the country coming from outside of the country, in terms of trade shock and supply shock. that is dominantly energy and food. tom: still with us is steven major, global head of fixed income research at hsbc. we heard andrew bailey speaking to guy johnson yesterday. how do you expect the trajectory of the economy to go? his recession or stagflation now one of those base cases for you? steven: i'm not sure if he was throwing the kitchen sink at it, but he was refreshingly c

this is bloomberg dani: welcome back to bloomberg daybreak europe. i'm dani burger in london citigroup has acknowledged one of its trading desks was behind a flash crash in europe which sent shares trowblg. the damage was in sweden. that prompted the index to lose as much as 3%. j.p., first off, how did this even happen? >> well, we know that the guy or the girl, whoever it was, entered a wrong transaction and from the looks of it, i think the transaction was mainly for the nordic markets like we have one share in particular where we saw a strong drop, some data shows up that citi sold a lot of shares. the interesting part is like usually when something like that happens, it is very ice lated in that specific stock or that specific market. that of course has an impact on the local bench marks. but here, everybody was a little bit shocked that we saw that the stoxx 600, this massive animal of an index dropping 3% because of a faulty transaction and when we first heard of it, that was like that can't be. that is so unusual. obviously that was the case.

>> good morning from bloomberg's middle east headquarters in dubai. it is bloomberg markets. these are your top stories. under control, china reports diffuse new covid cases since march. authorities relax curves -- curves and ally new stimulus measures. european stocks climb, wall street post its best week since november 2020. u.s. cash markets are closed for memorial day. plus embargo stalemate. you nations failed to agree a new energy sanctions against russia. the leaders summit kicks off today. the first let's set the tone for risk started in china within easing of restrictions in shanghai and beijing. that gave boost to the equity session in asia. higher-than-expected spanish inflation has irked the bond market. 1.05 is where we trade on the german government bond yield so you're looking at a rise of eight basis points. on the role higher youth chief economist coming out as benchmark pace rises. doing 50 would just trash the reputation of lagarde in the ecb. volatility is the byline according to james, extrapolating what she means by that in just a moment. crude is up as

"bloomberg markets" starts now. -- the market conversation. "bloomberg markets" starts now. in just the last couple of minutes, you of already seen stocks reverse some gains. we were up. you had tech lead the s&p 500 in positive territory suggesting features a 1.5% drop. we are now down .5%. put that into the context of volatility, it is not that much. dare i say it. something to keep an eye on is also the vix, looking at the handle at a 30. this is important, the postwar norm after the russian invasion of ukraine has been a volatility gauge of about 30. to drop below 30 suggest some sustainable run when it comes to a rally but keep your eye on that because that might suggest when the turn run or bottom actually is in. we have to talk about the bond market, which is catching a bid. treasuries attractive again. is this the safe haven been at work here. you see the 10 year yield, 283, down five basis points. when you see yields lower, you see the dollar strength that we have been talking about, not there today and weakening i almost 1%. joining me are experts on equity space a

>> this is bloomberg day break europe. i'm tom mackenzie in london with manus cranny and dubai. >> never say never. the fmo c may need to hike by 75 basis points. u.s. etf -- chinese stocks jon bascom virus cases drop. a study warns beijing risks a tsunami of infections. gas clash. european supplies are threatened after ukraine says russian pipeline flows through the nation could be disrupted. prices jump. good morning, tom. your interview with goldman sachs, there is value for oppenheimer at goldman's in its $11 trillion global equity wipe out. tom, good morning. >> with a 6-12 month view, you can look to position in this market, even suggesting within technology, there are opportunities. we continue to focus on energy. on a day when the cpi print comes out of the u.s. and whether that entrenches this view from a concern about inflation to recession. when it comes to energy, earnings coming through in the european space, one line on the siemens energy earnings. the preliminary results published on april 9, if we get more

this is bloomberg. rishaad: still to come on the program, oil in the spotlight as germany announces its plan to ban russian crew by -- if the european union refuses to agree on coordinated action trigger haslinda: plus, we speak excessively to domain president and ceo about their plan and applications. which was shall blocked due to market volatility. we'll be back with us in just a moment pretty keep it here with us. this is bloomberg. ♪ haslinda: welcome back. let's recap the ugly, ugly numbers out of china this morning. we have retail sales in particular slumping more than 11%, almost double what is expected by economists. industrial production, 100% increase, but a contraction of 2.9 instead. the rate currently staying steady at about 6%. it is not a pretty picture out of china. that is on the back of what the pboc fell today, which was to cut mlf and npr rates. analysts, investors have been looking forward to that. rishaad: that has certainly going down. let's have a look at the end of life, mark

this is bloomberg. itika gupta. this is bloomberg. >> the fat is going to have to raise rates and reverse qe. they will try to slow down the economy enough so that 8% comes down over time. give them a chance and i think the sooner they move the better. jonathan: deep breath and give them a chance, the words from jamie dimon. good morning. here is the price action in the equity market. up .4% on the nasdaq. yields come in a couple of basis points, 2.9519. is that what chairman powell will say to mike mckee later on, deep breaths, give us a chance? tom: what is interesting, see where the dissent is today as well. to what we heard from greg staples, the hawkish twist of 75 basis points. you really think that we will see outright dissent? jonathan: more likely down the road than today. you never know. i think there is agreement on moving 50 today. all the fed speak, seems to be decent consensus on making that move. we also know where the division is. how far you go want to get to 2%. you know where jim bullard wants it,

this is bloomberg. ♪ this is bloomberg. ♪ mark: welcome to the bnn and bloomberg audience. i am mark crumpton with first word news. iranian authorities detained two europeans for trying to cause "chaos, instability and social disorder." it comes as a top european union official held talks in tehran on stalled efforts to revive the nuclear deal. identities and nationalities of those held were not released. the u.s. navy may get pushback from congress over plans to scrap relatively young ships. the navy wants to get rid of nine of the 16 combat ships built by lockheed martin. several had been in service for five years or less. the navy says it could save $4.3 billion in upgrades and maintenance. there is concern over heavy rainfall in southern china and hong kong. some schools have been forced to close and the rain is threatening to damage week crops -- wheat crops. some could see downpours as much as four inches an hour, with some areas getting record totals. the federal reserve bank of dallas has named lori logan the next president, exceeding robert kaplan who resigned last

this is bloomberg. ♪ >>

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this is bloomberg. shery: still ahead, we will be joined by former sydney deputy mayor and federal politician cara phillips. for more, let's ring in elections and the rise of females in politics. next, 1870 nine advisors gives us his take on the market volatility and the fight to tame inflation. this is bloomberg. ♪ >> market valuation rating. >> we have a bubble that is now the flitting. >> what we are seeing in the markets is a rotation from growth stocks that were earning far in the future toward stocks that are much more value stocks. >> i do see a lot of opportunities out there, especially with higher investments. >> directional trade and more about relative value. >> everything on the fundamentals front seems very much intact. the 2022 estimates continue to rise. >> we have to wait a little bit to see what the fed is doing. >> everybody is afraid that they're going to get it wrong and the chances are that they will get it wrong. >> i do not think a recession is imminent. >> recession in early 20

this is bloomberg. shery: still ahead, we speak to ama holdings president and ceo about japan's tourism outlook. later this hour. next, an investment specialist joins us to discuss the market outlook and whether dollar strength has peaked. this is bloomberg. ♪ another crazy day? of course it is—you're a cio in 2022. so what's on the agenda? morning security briefing—make that two. share that link. send that contract. see what's trending. check the traffic on your network, in real time, with the next generation in global secure networking from comcast business. lunch? -sure. you've got time. onboard 37 new people, with 74 new devices. does anybody have any questions? and just as many questions. shut down a storm of ddos attacks. protect headquarters and the cloud. with all your data on the nation's largest ip network. whoa, that is big. ok. coffee time. double shot. deal with a potential breach. deal with your calendar. deal with your fantasy lineup. and then... that's it? we feeling good? looks li

this is bloomberg. ♪ >> this is bloomberg markets. time for what it is worth. today, gold fields acquiring yamada gold for about $7 billion, and all share deal that will make it the number for gold producer. we spoke to the chairman earlier today. >> go further. if we look at it over the next course of the year or so, it is the third-largest producer. it is the second-largest come in terms of reserves in a life index. it is the fourth largest in terms of market capitalization, but that is where there is the potential for an upside. what is even more compelling and interesting is that this company has an unparalleled growth on the combination occurring, and it is the best growth profile of all of the senior companies. >> this is the kind of deal that could spark more growth in the sector. >> a lot of other people are interested to see what comes next. you look good and i look good too. i am romaine bostick. this is bloomberg. ♪ mark: the european union leaders have agreed to back a partial plan on russian oil. it would make part of the package of sanctions, ai

this is bloomberg. shery: still ahead, and interview, the ceo joins us to guess the company's latest earnings. plus, why j.p. morgan does not see a 75 basis point fed hike coming in the near term. this is bloomberg. ♪ >> we have seen the beginnings of a scare. >> are fragile global recovery. >> time for inflation to come down. >> and increase in airfares. >> the shift between goods and services. >> this is outrageous. >> we will have to see the fed react. >> 50 basis points in june and july. >> we step back and look at the whole picture. >> we are fighting and inflation battle on two fronts. on the other hand, we have continued limitations of supply. >> you have a growth scare happening. >> a lot of conflicting signals. shery: some of our experts on the growth scare inflict in the markets. haidi: joining us now is joyce chang of jp morgan. what do we need to see before's come down a bit? >> inflation in the u.s. could be close to peeking, but it has been going up and the rest of the world. the questio

this is bloomberg. >> we are playing it more conservatively that aggressively both on the fixed income as well as on the equity. to your point, dining down areas that are high deal or areas like that. >> it is a different phase of investing that takes different approaches. your best approach is to actually de-risk portfolios at least back to neutral to some degree. >> i think today is more validation that the consumer is not as strong as we thought it was. we are starting to see inflationary pressures really effect the earnings of companies. >> the consumer is getting weaker from the bottom up. from the lowest income up. it remains to be seen without socks. >> -- it remains to be seen where that stops. >> for more analysis let's bring christopher smart a chief global strategist at barings. we keep seeing this lack of conviction, right? the jitters you see when it comes to market sentiment. what do you do at this point when you see a trading session meant -- session like last night? >> when you see thing

this is bloomberg. ♪ manus: this is "bloomberg daybreak: europe." the fed is getting worried about worsening market liquidity and the rising risk of financial instability. the instability report itself warns of rising risks from the war in ukraine and higher inflation. in europe -- climbing above 100 basis points yesterday for the first time in more than two years. tom: joining us now to discuss all of this is tatjana greil castro. from muzinich & co.. thank you for joining us this morning. what do you make of the pressure we are seeing across the credit markets? are you seeing any opportunities at this point? tatjana: good morning, both. indeed the market has widened significantly since around mid april in spread terms in addition to the rising interest rates and the overall yield now looks pretty attractive. that is also what the clients are seeing. if you have a longer term view and you want to lock in a carry, we are scaling and saying over the medium term, depending on what strategy you invest in, you are likely to lock in a certain return and

this is bloomberg. ♪ guy: right, let's go back to davos, where we are standing by with the malaysian finance minister. >> we are interested in malaysia because it is an oil exporter, the number two exporter of [indiscernible] so let's get the perspective of prime minister zafrul aziz. i guess that malaysia is in a pretty good spot, is it helping you to achieve your growth target for the year as estimated by the central bank? zafrul: first of all, thank you for having me, it's good to be back in davos. for malaysia, you are right, we just posted fiscal quarter results that were strong above market expectations. it had been 5%. optimistically on track to six point 3%. the second quarter looks strong as well, driven by consumption and of course commodity prices have helped malaysia. however, having said that, what is also a concern, the challenge that malaysia faces that we continue to support, subsidies, increased subsidies, we can see that inflation in malaysia is relatively low, 2.3%. we are also proj

this is bloomberg. shery: our discussion continues on australia's rate decision in the middle of a highly charged election campaign. plus, we get the market outlook with fed the expected deliverance biggest rate hike in two decades. this is bloomberg. ♪ >> if inflation does not break soon here's going to have to -- he's going to have to hit the brakes hard. that will put us in recession. i think people who have benefited from this extreme low rate, high liquidity environment where all manner of growth have been rewarded, i think that is where the greatest correction will come. >> it is simply unfeasible that economics or economies -- their human beings and their livelihood and well-being a shutdown because of the fuel industry i think we are saying this live in europe with the russian crisis. >> if inflation is transitory, if we are heading towards a 4% rate by the end of the year, he has a a lot more room to maneuver rates in 2023. >> speakers at the milken global conference. let's bring in our next

i am vonnie quinn, this is bloomberg. caroline: still ahead we will have more on prunes address, why the leader could be -- putin's address why he is signaling that the war could continue for a long time. these current -- a long-term opportunity for investors, more on that next. this is bloomberg. ♪ >> stagflation is toxic for traditional assets. >> equities by themselvesplace -- by themselves is not a safe space. >> there is no safe haven in this marketplace. >> is a big struggle for investors. >> liquidity is afraid the edges. >> is hard to get a handle on exactly what is going on. >> investors are looking for diversification. >> we are on the cusp of that. >> people want to play defense right here. >> people are negative. >> the reality is there is very low risk appetite. >> some of the earlier guest on bloomberg tv, let's bring in our next guest that said the market is getting oversold. ceo and cio, always good to have you with us, you are calling this a longer-term as a gathering market, what are you at -- gatherin

this is bloomberg. this is bloomberg. ♪ what's it like having xfinity internet? it's beyond gig-speed fast. so gaming with your niece, has never felt more intense. hey what does this button do? no, don't! we're talking supersonic wi-fi. three times the bandwidth and the power to connect hundreds of devices at once. that's powerful. couldn't said it better myself. you just did. unbeatable internet from xfinity. made to do anything so you can do anything. whoa. >> you're watching bloomberg markets: asia i am vonnie quinn with the first word news. federal reserve vice chair says the u.s. will probably fall into a recession as the central bank combats multi-decade hallie inflation -- high inflation. it would be unable that that's unlikely that the fed would manage a soft landing. he says that the fed should've a tided -- started tightening in september. domestic industries have been notified that the tariffs are set to expire in july, but a request can be made for that to be staying in place. they need to examine the tariffs need an effect. pakistan finance minister

this is bloomberg. haidi: still ahead, the australian industry group joins us to discuss the country's upcoming federal election what victories could mean for business. first, high valuations, high inflation and a fed hiking cycle are a mess up he -- are a recipe for market gyrations. this is bloomberg. ♪ haidi: key eco-data, more earnings, and major chief political events are high on the agenda this week. could help paint a dire picture of the impact of strict lockdowns on economic activity. we will be getting gdp prints out of the euro zone and japan. in hong kong, the government enters phase two of their plan to ease restrictions this week. back to china, where the pboc decides to loan primaries -- also watching for tencent numbers. shery: a big we can geopolitics. g7 finance ministers and central bankers gather in germany wednesday. we also get the eu's plan for funding reconstruction, and details on how the region plans to cut dependence on marshall energy. president biden also visiting asia litt

this is bloomberg. ♪ >> strong economy. storm clouds. i'm calling them strong because because they are storm calls, they made dissipate, if there was a hurricane because it was a tsunami like 07, 08, we can handle all that. >> that was j.p. morgan seo, at the banks investor day, that's bring -- coo at the banks investor day, he was optimistic about the headwinds we see at the moment may not be permanent or at least long-term. what does he have to backup the view? >> he has been a big champion of how the u.s. economy is doing, he struck that note again today, he says how robust it is with all the stimulus pumped into the economy. he also recognize the unusual cocktail of inflation and quantitative tightening by the fed. he thinks that the -- strong credit quality. perhaps those two things, combined maybe allayed some of his concerns among investors that any recession is imminent. >> jp morgan recently received backlash about spending, what have you heard on that front? >> that made this meeting today really quite a high-stakes one. the ba

this is bloomberg. ♪ >> welcome to "bloomberg daybreak: asia. here in sydney. >> are top stories this hour, asian sales track with gains, expectations of aggressive tightening ahead. interviews from the australia conference, we will be hearing from the heads of development of novak. another big interview with the tourism minister of new zealand, part of moving the country away from the mass travel model. >> take a look at the yen. equity markets away on holiday. we continue to see the weakness, trading 130 against the u.s. dollar. we are close to that peak for dollar-yen on april 28. that was the lowest level of the japanese yen and the past 20 years. we continue to see the weakness, given that the doj is doubling down on's monetary policy. we are watching things in japan's of the cost of hedging is rising. they fueled that global bonds selloff. we are watching bond features, yields have continued to gain ground. as we continue to see weakness on the korean you on -- korean wan. read cpi numbers out of korea showing 4.8%, the fastest pace of acc

this is bloomberg. ♪ manus: "bloomberg daybreak: europe." "bloomberg daybreak: europe." this is it is friday. despite volatility, we have the impact of the tariffs. it is not a bearish market, there is a wealth contagion this month. recent pressure highlights the need for better regulation around these instruments. >> we have just seen, in the last few weeks, exactly the kinds of risks of open talking about for some time. but collapsing value of stable coin. stable coin moving off of its one-for-one value because of lack of transparency. manus: looks like these coins are manus: manus: taking a beating. don't know how to explain it, but you will. >> it is dropping in price. it is taking a little bit of a beating when you have terra been a couple of glitches you are looking at that with a little bit of concern. thanks affect the are progressing but there are a lot of things in the background with development of the area and the other altcoins versus with happening with bitcoin. dani: just taking a beat here. what does that mean going from proof? of work you have people tha

this is bloomberg. ♪ this is bloomberg. ♪ >> these numbers obviously are too high. >> the fed is walking a significant tight rope. >> they are going to have to be a lot more tolerant of high inflation for a while. >> the market is overpricing with the fed is going to do. >> the market is pricing in that the fed will have to hike more. >> we are expecting a 50 basis point increase at the next meeting. >> may be put that 75 basis point increase back on the table. >> ruling out greater than 50 basis point moves, why rule anything out in the early innings? >> if they go by another 50 basis points in june, another 50 in july, that is a lot of tightening over a couple months. >> what is going to be required to get inflation under control. haidi: some of our bloomberg tv guest reacting to the u.s. cpi print. our next guest says it will take upwards of two years for inflation to moderate. mona mahajan, great to have you with us. let me throughout -- let me throw up this chart. global stocks are just within 2% of that level now from e

go to the bloomberg terminal. remember, this is a speech that has the potential to be a watershed moment for vice president harris. a woman and person of color, the first to hold that office. she was vocal when it came to abortion rights during the campaign. do go watch that speech right now. we have more on the abortion issue just ahead, president biden calling for more pro-choice lawmakers to be elected to enact protections to roe v. wade into u.s. law. this is bloomberg. ♪ president biden: it goes far beyond if it becomes a law and if what is written is what remains. this was far beyond the concern of whether or not they have the right to choose. shery: president biden saying he will and try the protections of roe v. wade into u.s. law. let's get more from jodi schneider. we heard from vice president kamala harris just a while ago talking about how women's rights in america are under attack. jody: president biden did say it is quite a radical decision. it is the draft decision, if it comes to be. and he said

this is bloomberg. ritika: keeping you up-to-date with news from around the world, i am ritika gupta. in baster's are waiting -- investors are waiting on today's report. cpi is expected to show inflation fell to 8.1%. the cpi comes out at 8:30. the u.s. house is approved of $40 billion emergency spending bill for ukraine. the measure pays for new weapons and provides economic and humanitarian assistance and is significantly larger than the $33 billion president biden asked for. the bill heads to the senate where approval is likely next week. economist lisa cook will be the first black woman on the federal reserve board of governors. she one confirmation by the narrowest possible margin. the 51 to 50 vote required a tie-breaking appearance by vice president kamala harris. republicans questioned her qualifications. researchers in shanghai say the country faces a tsunami of proto-virus infections if the government reverses its covid zero policy. the vaccination campaign would be insufficient to prevent an

this is bloomberg. haidi: still ahead, seb tells us why depreciation pressures hinge on china's short-term response to covid outbreaks in major cities. first, inflation remaining in focus. fresh numbers out later. we get wells fargo institute's outlook next. this is bloomberg. ♪ is bloomberg. ♪ >> we have seen quite a big correction. >> has been traumatic. >> de-risking. >> sentiment in the markets is incredibly bearish. >> we have seen a huge absorption of a lot of worrying things for investors. >> we are starting to see some forms of capitulation. >> we have not seen that capitulation. >> the question is where do we go from here. >> today has been one of those. >> there is still a great deal of uncertainty about the near term trajectory. >> we are waiting to see. >> people are starting to get closer perhaps to the bottom. >> maybe what we should be doing is looking at our shopping list and buying some things. >> equities are starting to look attractive for medium to longer term buys. >> there may

this is bloomberg. haidi: still ahead, how covid has reversed a trend of declining inequality. moreover the world bank director. plus, key global economies including the u.s. should be able to avoid a recession, more on that next. this is bloomberg. ♪ >> we want to move at a pace into a level around 4%. it does give us time to stop and breathe and observe the data. >> it is likely there might be a falloff from the rate hike. >> the priority for the bank of korea is the real interest rate reaching a neutral rate. >> on the back of expansion this year. >> there has been increased in inflation expectations. >> other banks -- the more other banks are doing, the easier it is for us. >> some of the central bankers we spoke with this week. our next guest, the u.s. and global economy should be able to avoid recession if inflation begins to show -- begins to slow. joining us is shane oliver. the question of the moment is how much conviction we see in each of these rebounds. some of the indicators are telling u

welcome to bloomberg markets. a very happy day to you. >> we will find out how happy it is a little later on. the services gauge falling. the estimate was 58.5. now, you need to dig into the details to figure out if this is bad news as it was originally suggested because we had an incredibly tight labor market right now. the appointment index comes through and that was 64 last time around. i would suggest -- there is a struggle to hire people. i wonder if this is the problem that we are seeing. prices paid comes through at a record. the headline number looks initially negative for an economy that is slowing. it is probably indicative of an economy that is superhigh. it takes us to our question of the day. >> market is in camp 50. i will go with the fed not wanting to surprise the market. they will probably move by half of a percentage point. given what we have seen, it goes to show you that anything goes. >> i wonder if we are coming out of the camp of not wanting to surprise. michael mckee joins us now. mike, why

this is bloomberg. ♪ kriti: this is bloomberg markets. a huge selloff today. after three days of gains ahead of this massive historic no other word to put it fed rate meeting, a 50 basis point hike that a lot of people were expecting. that is where you saw the optimism the markets, until today. a lot of optimism wiped out to where we are seeing the s&p 500 back in correction territory. the drawdown now down 13% from peak to trough. windows the selling really let up -- when does the selling let up? are the bears right for with the market should be doing? joining us now is david wright. he says we are heading for the biggest bear market of his life. thank you for joining us as always. walk us through why this selloff isn't overdone? david: the market is a behavioral creature. all the logic about fundamentals takes you to a certain point if you try to pick stocks for a three to six month period. we have obviously two major bear markets the century where the s&p fell 50% and then 56%. i believe the signs are there again that we are in the sec