he went to the bank, you sent it to the bank many times the bank didn't nothing. he did what he's doing, you know, clearly very tense and frustrating situation there. and dana, this isn't the 1st time this has happened in lebanon. he says, no, a few months ago, a depository as well, storm the bank arm, demanded his money. he did get the $50000.00, but he was later in prison. but a few months later he was released. people are angry if you talk to anybody here, they tell you their stories. i can't paper the hospital because i cannot buy medicine for my brother. i need the my money, which is trapped in the bank. so really, the economic crisis has impoverished the population, 80 percent of the population. the local currency has crashed. it has the value of the staple is collapsing the states, the services. there is a breakdown of states services, no electricity. so if you don't have money to pay for private generators, then you live without electricity. and you know, all this is happening at a time when the politicians are doing nothing to reverse the economic collaps

banks. they will not be stop. -- they will not be stopped. let's look at key items on the slate for the trading day. production data in germany at 7:00 a.m., followed by france and italy. the bank of england chief economist will speak on the monetary policy report briefing. he will join bloomberg later in the day. it was said the recession could happen in the process of recession. dani: finally, the u.s. jobs report inspected to show again of 250,000 jobs in july and unchanged unemployment rate of 3.6%. coming up, we get more into the conversation on the test the ceo. manus: we will also dive into the earnings from allianz, with the ceo, who joins us in a short while. looking at the numbers, you have outflows from pimco at the moment, 28 though you and. -- 28 billion. ♪ >> mild, moderate recession, maybe 18 months-ish. and i think inflation will drop rapidly, that is my guess. manus: elon musk speaking at the tesla on inflation and the risk of recession. a trading model by jp morgan shows

if you look at the challenge for the central bank, the fed, bank of england is in a more difficult spot, is the ability to build confidence that inflation will go back down to 2% over the next several years is exceptionally low right now. what happens to the data over the next several quarters is in some ways less important than the ability to believe they have tipped inflation over on a trajectory down to 2%. it is difficult to get to that spot. lisa: the bank of england came out and projects recession that is long, painful, at the same time that they are raising rates. could the fed that? ed: i think the answer has to be yes. they are committed to reestablishing credibility with the 2% target. they must tighten policy if they don't see inflation coming down to 2%. very little reason to doubt them at this stage. lisa: the market seems to be thinking if that will be able to move away from some of their rate hiking sooner than previously thought even with the recent repricing, because there is this retrenched believe that inflation will come down in the next couple quarters. ed: probably

bank." we have not heard this from anybody at a central bank about how dire they think this outlook is. tom: lee ferridge joins us now from state street corporation. i will cut to the american chase for those on radio and tv. can the angst come across the atlantic and become the angst of chairman powell? lee: almost certainly. the bank of england is being the most honest. they are predicting recession that the last five quarters. yet, they feel the need to hike by 50 basis points with more to come. that is the reality facing central banks. the fed is still, we can avoid recession, we don't think we will hit a slowdown. come on. we are going to go into recession. major economies are going to go into recession. the squeeze on the consumer is significant. jonathan: so why is consumer discretionary rallying this hard? up more than 20% on the s&p. why? lee: you have got a big split between income levels. lower income levels are really struggling with this increase. a large proportion of the spend

with these fees, bank of america and td bank are setting major lawsuits while some banks have started ending their overdraft programs which is good. but until congress passes the law protecting customers from the most egregious overdraft customers we figured if there was an opening for a bank. >> think of overdraft fees that drag you into debt, wish there was a bank that treated you like an adult. well now there is. nope, you're broke. >> introducing broke bank, at broke bank we're not going to let you spend money and then surprise you with an overdraft fee, when you're broke, we'll let you know. >> $7, get a tab water. >> is it embarrassing, a little, insulting, definitely, but we're committed to honestly like really committed. >> come on, we both know you didn't win the blotry, just walk away. >> what is in your wallet. nothing. are you in the jet, you only got $12 and you need that for a shirt. >> with broke bank you'll never get tricked into opting in for fees the only thing you will get from us is the truth about how poor your broke ass is. >> you can scream at me all you want. b

guy: the central bank, the bank of england continues to be behind the curve. it continues to underestimate the impact inflation is having and how sticky that inflation could prove to be. it is playing catch-up. is the perception that the bank of england is still behind the curve most people in the market and how does it correct that? >> it is an easy criticism to make. you speak to economists or underestimating inflation it's not to the boe officials, and then every time it happened they add on the difference that they got it wrong to the next print. yet inflation keeps on getting higher. you now seeing cities saying you'll see inflation at 15%. is the bank of in the behind this curve, there's a huge recession risk. already talked about a long recession the likes of which we haven't seen since the 1990's. to be fair to the bank of england they have a difficult line to tread. >> i feel like it gets worse really quickly because now we have transportation strikes all over london and in the u.k.. i can't believe guy made it into the office. i'm wondering why the s

so, insurance is like banking, there's also ways that banking is like insurance. if we have time at the end of the top will be happy to talk about that more. president significantly, insurance companies and banks are often founded by the same people they have these closely connected back ends. insurance companies need somewhere to stash their money so that it's accessible to pay off claims. they also need their money to make money. when they do they invested in federal securities, they invested in banks. as i, said there's also a cultural aspect to this project. so, one of the things that insurance companies like to do is to present themselves as boring and an interesting. as a wonderful story near the end of this book about how this works. the story is this. so, this is a 2:25, this is quite late in my story. but this is a year when a lot of people are trying to push incorporation through the new york state legislature, they're sort of a bubble, an economic bubble of incorporations. people think they can get rich quick by starting companies. now, some legislators

is this the plan we need from the central bank? liz: we do need -- from central bank. they emphasize that in your interview and the press conference as well. she talked about the great virtue of the system we have here in the u.k.. we have a target and that is reiterated every year by the chancellor. kailey: liz martins of hsbc. we have seen the biggest rate hike from the boe since 1995. coming up, -- dealing with an energy crisis and water levels along the -- river could exacerbate that problem. it is a vital channel for delivery of oil, gas and coal. this could make the energy crisis worse. a russian court has found u.s. basketball star brittney griner guilty on charges of drug smuggling. greiner pleaded guilty to those charges last monday. she has been detained in russia for 24 weeks. executors earlier asked the judge for a nine and have your sentence if in fact they did find hearst -- find her guilty which the russian court has done. the u.s. has been engaging in ongoing conversations of a prisoner swap of greiner and a russian prisoner. wba star brittney griner ha

the bank is predicting a serious recession. at the same time cost of living pressures are getting worse with the rate of inflation now set to peak at 13% at the beginning of next year and still around 10% in a year's time as average energy bills reach nearly £300 a month. so the bank today raising rates for the sixth successive time, up by the largest amount in over a quarter of a century to 1.75% and despite recession heading still higher to try to keep a lid on that inflation. 0n the streets of cardiff the overall hit to household incomes is becoming clear to all. it's a lot of stress, and financial stress is one of those hidden ones that no one wants to talk about. the prices are so high now that i've had to start cutting back. so if they do keep going up, we're going to see a lot more, you know, homelessness, we're going to see a lot more people applying for benefits. 0ur savings have been eroded. it'sjust not good. none of it's good. we just have to see exactly how the government goes when we get the new prime minister co

now i am not someone who is necessarily going to blame the bank _ is necessarily going to blame the bank i_ is necessarily going to blame the bank. i think this will be a matter of debate — bank. i think this will be a matter of debate. he's raised interest rates — of debate. he's raised interest rates by— of debate. he's raised interest rates by 0.5%, which is the highest increase _ rates by 0.5%, which is the highest increase since 1995, in 27 years, which _ increase since 1995, in 27 years, which suggests he probably feels he could have raised them sooner because — could have raised them sooner because it _ could have raised them sooner because it was a very big hike, actually, — because it was a very big hike, actually, yesterday. but i think we need _ actually, yesterday. but i think we need to— actually, yesterday. but i think we need to look at what went wrong. if you have _ need to look at what went wrong. if you have a — need to look at what went wrong. if you have a 2% target and you are predicting — you have a 2% target and you are predicting 13.3%, something h

banks and european banks, we see solid provisioning there. aside from the unknown risks that might be out there, by and large, on the credit side, they are good at risk. >> seb how do you see credit risk here? inflationary pressure is here and bankers are knocking down the doors of the bosses looking for more money >> we have seen a move way from pre-financial crisis with the big bonuses. a lot more is spread out a lot more is conditional on performance. having said all that, you know, recent quarter is not a good place to be if you are in the investment banking world with coverage and markets where we have seen that collapse in the fee revenue there. you are looking at credit suisse which was down 7.4% in terms of revenue. that's likely to be a challenging area having said that, if you are a fixed income trader and macro side, it is looking good for you. as we see the volatility continue, those in that side of the business are likely to do well looking at other aspects of the banks, that is, i think, going to be challenging and the other dyn

bank, the china construction bank, and the bank of china. the net income was ok. they gained between 4.9% and six 3%. the property loans have soared. record 2.95 trillion yuan as of june, 39 trillion in outstanding mortgages. the bank of china can be seen as the most vulnerable, the most exposed with 38% tied to the real estate sector. nonperforming loans rose to 5.47% with the industry below 2%. you can see, this is a big challenge. the government is pushing these big state banks to len off, it's ordered them to cut the loan prime rates. that is pressure on the net interest margins as they are strong-armed to lend and boost this economy. there is going to be headwinds for the banks as they try to support growth leading into the party congress. haidi: you have so much to bring together. a momentous year. stephen engle with the latest. let's get you to vonnie quinn. >> the european union is net gas storage goals. they had aim to fill reserves to help absorb supply shocks. high energy prices are worsened by gas flows. the eu commission preside

the bank. the revenue, the operating margin has beat analyst expectations, but trading is a bright spot for the bank this quarter. the bank has enjoyed a 50% jump. it is more than an archrival in paris. their business, which is key for the bank, has gained less, but it is in line with areas of concern for the bank. this is good to know because their trading unit enjoyed it nearly two years ago in the pandemic at the market, and products grew up in the market route, and ever since there has been a rebound with the performance, this time, the bank decided to upgrade its balance. kailey: it is against the backdrop of rate hikes finally happening in europe. european banks have waited so long to lift off negative territory. it is here, but hiking into the ecb for weakness, so how does that play out for a bank socgen? >> the bank has already enjoyed boosts from lending operations because high interest rates means that lending is higher, as well, and gains were in the double digits, and a bit less for

open banking is, i fraud and theft? open banking is. i would _ fraud and theft? open banking is, i would say, _ fraud and theft? open banking is, i would say, is _ fraud and theft? open banking is, i would say, is an _ fraud and theft? open banking is, i would say, is an invalid i is, i would say, is an invalid instead on top of everything that exists today. it really uses the most state—of—the—art scientific technologies to enable secure communication and transaction between businesses and consumers and of course bank accounts. so for instance it uses face id and biometrics to authorise payment or sharing data, instead of relying on you having to type six digits or your bank account number using your bank account number using your keyboard. qm. your bank account number using your keyboard-— your keyboard. ok, we believe it there. thank _ your keyboard. ok, we believe it there. thank you _ your keyboard. ok, we believe it there. thank you very - your keyboard. ok, we believe it there. thank you very much | it there. thank you very much for your time. now,

the next major bank we hear from is the royal bank of australia. kathleen: it is a count on to the start of trade in seoul. in korea it investors will be watching the won for any moves after bloomberg's interview with the korean governor. the finance ministry is holding a meeting after u.s. stocks tumbled on friday. we are keeping an eye out reactions after south korea's main opposition was picked to lead the charge against the conservative president. a south korea delegation is visiting washington to discuss the u.s.'s ev subsidy policy. we will have more from a conversation with the bank of korea governor including on supply chain issues and competing with china. lots more to come on "bloomberg daybreak: asia." s&p 500 futures are trending lower after a big drop on friday. nasdaq futures down 1.3%, and all three indexes sought after declines. negative sentiment, alvar is it going to go, is continuing -- how far is it going to go, and it is interesting to see how far this will go after giving them a chance to react to jay powell's hawkish speech.

the banks can do it there's a limit to what— the banks can do it there's a limit to what the — the banks can do it there's a limit to what the governments can do by the policy— to what the governments can do by the policy would governments can do is target _ the policy would governments can do is target support to the worst i5 target support to the worst affected _ i5 target support to the worst affected by recessions and the cost of living _ affected by recessions and the cost of living crisis and of course, unemployment the i5 is also going to go up to to the forecasted recession. but the fiscal policy— forecasted recession. but the fiscal policy to— forecasted recession. but the fiscal policy to try to get more income support— policy to try to get more income support and households are really struggling and yes, by supporting demand, — struggling and yes, by supporting demand, there's always a bit of inflation — demand, there's always a bit of inflation but if you targeted towards those who are the worst off in society, _ towards those who are the worst off in society, tha

banks pulling back from financing by out. details. this is bloomberg. ♪ caroline: this is bloomberg markets. i'm telling height with jon erlichman. one of the great stories on the terminal, taking on the big banks, a fund for large-cap loads. our reporter joins us on this story and why apollo is doing this. >> we are seeing an interesting development in the past couple of months, it is getting for -- getting tough for bio financing to get done. there's widespread concern about the potential for recession, rising interest rates and that is causing wall street banks to pull back from extending their balance sheet to get the deals done and from investors who are more hesitant to invest and support the financing. that is creating an opportunity for a private credit fund for alternative asset managers like apollo to step in and provide the financing. jon: that is helpful context. my thing about wall street banks historically using their balance sheets, at least to generate business elsewhere -- elsewhere, for players like apollo, what th

at what point did insurance and banking joint up in the national and then state banks? also, love to hear more about risk insurance changes. how risk insurance changes the state. >> so, banks -- so insurance companies as state chartered businesses their lives are very intertwined with state banks. i think i mentioned that insurance companies need places to put their money so they put them in their friendly local bank and they buy shares in their friendly local bank so these numbers of charters often track really closely together and often the same guy will like have a hand in, you know, both local corporations at the beginning there are often, they are often political allies that found the same kinds of corporations. what is interesting is how corporations lose their flavor because states find it easier and everybody sort of just decides that proliferation and banks and insurance companies are in their best interest. insurance companies invest in banks and banks do a lot of services for insurance companies. they like, so if a merchant essentially pays for an insurance p

even when you have seen tightening from all g10 banks except for the bank of japan. inflation has reached historically high levels here and central banks as well started hiking from negative or neutral rates here as well. these rates are really not high enough to be fighting inflation here. central bankers will possibly be needed to do a lot more moving forward. bank of america is particularly focused on what is happening in the euro zone as well as the u.k.. they are rising at the highest level in more than four decades. this is what the bank of america says. the bank of england will need to do a lot more moving forward. >> we are still worried about the outlook of china's economy as well. >> yes. they are starting to see even more gdp projections coming through. goldman sachs says that the for your gdp will come at 3%. the reason they are saying that is we did not have the july activity data. that was weak when it came in earlier this week. those covers your policies and china continue to take a toll. other areas focusing on the energy supply issues we have also be

do they split off the investment bank? perhaps they could incorporate it into various other parts of the business that they have. you have the securities products group which brought in $10 billion in revenue in the last decade. others haven't done so good. equity trading is down, given what has been happening out there at the moment. does not forget the turmoil caused by archegos, almost $7 billion lost on that. do they see this investment bank carry on? the pressure is on. rishaad: credit suisse is stuck between a rock and a hard place. thank you for that. haslinda: investors are on edge as we await what transpires at jackson hole leader this week. of course it is all about the fed, whether it will do 75 or 50 basis points in september. take a look at where we are in terms of the benchmarks. stocks are down. fx is lower on the back of the stronger dollar. and commodities, a pretty mixed and co- [announcer] imagineixed pictuhaving fuller, thicker, more voluminous hair instantly. all it takes is just one session at hairclu

so in 2020 the central bank spent $68000000.00 showing up de leon. now it isn't saying how much the initiative will cost, but it will be hoping it will riley, the currency, and the economy committees, al jazeera, free town steadily on. the rhine river flows through 6 european countries. it is a key was away for transporting coal iron and on the national was o says the weeks of high temperatures, missile and no rainfall have made it impossible for many ships. on a dominant came the ports now from cologne. it could almost be a picture postcard of the rhine goods barges chug up and down the river, while children explore the pebbles on the bank. and yet a closer look shows something else. for in most summers, much of this area would be submerged. but months of high temperatures and little or no rainfall have changed things, or we see right now with a low or water levels in rivers is the new normal or it's even worse of the new normal will be even more extreme. we have seen a global temperature increase of 1.2 degrees on global average right now seen from

why do banks do that? why do they pump up why do banks do that? why do they pump up the cost of a mortgage but don't give you much back on your savings? don't give you much back on your savinus? . v don't give you much back on your savinus? ., �*, .,, , savings? that's right, as we see the bank of england _ savings? that's right, as we see the bank of england raising _ bank of england raising rates, generally those higher rates are going to benefit savers, but be less favourable for borrowers. so as you say, households with mortgages will see the mortgage is going up, may be some of the investment plans... the net impact of these effects is going to be a cooling of the uk economy. but could the banks do more to help us have more money in our bank accounts and has more comfort? the uk has very — accounts and has more comfort? tte: uk has very open and competitive banks in the system, i'm not sure i can comment much more than to say that these things do impact with a lag, and it will take time. we have also seen interest rates have been rising t

none of the banks appear to have raised a red flag. what's called a suspicious activity report is for easy for a bank to fill out a suspicious activity or 4th is actually press the button. the trouble is a who's digesting this. the suspicious activity reports, and the answer is, in many cases, nobody. the documents linking quick pace to foxtrot networks in turn, link quick pace to one of the world's highest profile, money laundering scandals. it was discovered by russian accountant. so again, magnet ski. he was working for an investment firm based in moscow and run by bill browder. sergei exposed it. he was then arrested, tortured and killed in prison. mm. the russian government says magnet sky died of natural causes and accuses browder of the fraud. browed claims, russian officials stole $230000000.00 in state funds, a huge quarter $1000000000.00 russian government, embezzlement, synonymous with justice and corruption enriched a frightening reminder of how quickly money can disappear. all documents reveal that folks draw networks had

he's not i have a poem inside this bank. hostages really fast banks, employees as well as citizens. so it's unclear how this found off is going to end up. but it's a very speaking situation because the banks feel if they give in, then it will encourage others to do the same. how is the public responding to these kinds of situations? not the 1st time someone is gone into a bank for compliance last they get their money right. yes, this is the 2nd time that this has happened. and in the past 3 years, people sympathized with him. they're calling him a hero. they believe that this is, this money is rightfully his. it's rightfully theirs as well, because millions of lebanese have their money, their savings after working for so many years in the banks. they feel that these capital controls are illegal, especially since powerful people. politicians, people who are connected to politicians, even bankers were able to transfer their money outside the country before the economic collapse before the currency crashed. so they believe that the security forces should be going after the politicians

he went to the bank. he sent letters to the bank. many times the bank didn't give him nothing. he did what he's doing now. hassan. he's the head of the depositors union . he's been fighting for the rights of depositors for some time. now, as you can see, people are angry and some really justify the actions of this man. what he's saying, that's really he had a has no other choice. i. thanks so much. dana holder. there fleming. all still ahead on the news hour, including the basement flashes that became death traps in south korean floods. will tell you what the government is planning to do about them. u. s. department of justice charges, an arabian national is part of a plot to kill former national security advisor, john bolton, and install the final woke up stadium ready to be unveiled here. and cutoff details coming up with jo ah, fairly own has imposed a nationwide curfew in response to anti vine to violent anti government protests that killed several people, including members of the security forces of it happened in the capital free town and other cities because of anger and

piet philip christiansen of danske bank, think very much. we will talk to david harold -- david dollar. . this is bloomberg. ♪ alix: the largest shareholders urging the troubled lender to fix the investment bank or seek another option for the business. david harold, he talked to francine lacqua in an exclusive interview. david: we have owned this bank since early 2001 and the first 10 years was a very good holding. it literally went from 20 to 60 or 70. what we should have done is sold it and that is it. during the financial crisis, they performed better than most other banks. we increased our position again and had a very poor decade holding credits. it hobbled from one crisis to the next. what is the situation today? the last 10 years have certainly been bad, very bad for the bank. you look at the situation today, it still has a robust private world business. they have four businesses, one of which is absorbing the profits of the other three. all they have to do is prevent the investment bank from losing money and get it back to some sor

we understand that outside of the bank haven't made a move yet on the bank inside. is that man who's threatening the burnet dow? now this is not the 1st time that somebody has made a move on a bank, demanding money, and threatening violence if he doesn't get his own money. it's believed there's quite a bit of popular support. lot of people are unhappy with banking measures should been imposed restricting people's access to their own money. oh let's get more of this now. we can bring in zayna holder in beirut. you're outside the bank to right now saying that, tell us how that stand off is looking now. well, there doesn't look to be an end to this because as we understand, negotiations are continuing to try to convince, but found a thing to lay down his arms and to leave the bag. but he is the man his money. he says his account is worth more than $200000.00. he wants his money. this is rightfully hey and get him to do this was because in the past few days, the recent days he's been visiting the bank demanding money to be able to pay for his father's hospital bill. he

kriti: that was the bank of korea bank are in are speaking to kathleen hays, wyoming. the s&p 500 choppy, back-and-forth. about flat. the underperformance happening in the nasdaq, down .4%. in the yields, two-year yields at the highest back to 2007. this is bloomberg. ♪ mark: here is the first word. the european union can offer ukrainian forces new sniper for officer training as part of the new mission. they plan to propose this in a meeting with minister was in prague investors tonight. bloomberg has learned iran has identified a specific training needs and that ukrainian soldiers have already been offered various training efforts. the ukrainian president is accusing russia of trying to create a global sense of fatigue about its invasion. that includes

, , ., , bank. we shall see how this -la s bank. we shall see how this plays out — bank. we shall see how this plays out and _ bank. we shall see how this plays out and keep - bank. we shall see how this plays out and keep an - bank. we shall see how this plays out and keep an eye l bank. we shall see how this | plays out and keep an eye on the shareholders meeting tomorrow. let's get some of the day's other news. now, let's turn to china's property sector because there's more signs of trouble at struggling developer evergrande. one of its subsidiaries has been ordered to pay a guarantor more than $1 billion for failing to honour its debt obligations. the property giant missed a self—imposed deadline for a proposal to restructure more than $300 billion in debt. the uk has given some of the least generous support to help drivers with high fuel costs among countries in europe the rac says. the motoring group says that out of 13 european nations that have cut tax on petrol, only luxembourg has done

low food bank are in full swing. in recent weeks, the busy period has been especially bustling employees expect the same today. a delivery from a nearby supermarket has just arrived from my 5 strawberries and 2 pots of herbs. but the delivery for the cielo food bank would have to be much larger than this to accommodate the increasing need. plus here, here's a 0. what i see here now, i know that we can't meet today's demand. sabina horn is walking a tightrope, more people and more need all while seeing fewer goods is invisible. you can see here that we're struggling to survive. we don't know how much longer we can keep it up, that we will be able to help people. the city low to put on, it's just before 11 a. m and people are starting to line up. many issues are currently hitting everyday people in their pocket books, many who had little before and now being hit the hardest by rising prices. so couldn't good morning. the 1st step is to draw lots each time. there's a new order for who can pick up food and at what time h

the banking community itself. the corporation use this fund to lend to banks that in hoover's word were under attack by. unreasoning depositors by rescuing these tottering banks from the danger of closure. this new corporation, he hoped would revive confidence in the banking system. the new york bankers reluctantly acquiesced, but only hoover promised them promised them that if necessity requires he ask congress to create a governmental banking entity patterned after the war. finance created in world for one. it soon transpired that the worried bankers had less faith, who very in cooperation than he did, unwilling to risk their own to save their weaker brethren, and anxious for uncle sam to assume the burden of the corporations procrastinated and loaned out less than $10 billion in the first few weeks of its existence and for hoover, the fateful moment of decision was now at hand. according to an old adage that h.l. mencken popularized in politics, a man must learn to rise above. this. herbert hoover doubted, yiel

the bank of china, net income up. china construction bank up 5.4%. the industry nonperforming loans rose to a record 2.5 trillion yuan. exposure to the property sector is more than any other industry. 39 trillion yuan, plus 12 trillion yuan in loans to developers. the bank of china, the most exposed bank to the property sector with 38% of its total loan growth in the real estate sector. there will be pressure on the big state banks and others as well. kathleen: that is stephen engle. let's get to vonnie quinn. >> the european union met a gas storage goal two months early. [indiscernible] high energy prices are worsened by russia limiting flows. >> at the european level, we agreed all member states. the second pillar is reliable sources. we have reached an average of 80%. >> taiwan soldiers have fired warning shots. a taiwanese military statement did not identify them as having come from china, but said they were from the direction of the chinese city. chinese stocks in the u.s. tumbled. three like a has announced new reforms and raised taxes amid bai

it has someone from the swiss national bank, the ecb and the bank of korea. they could all speak about their currencies, either pushing back against the hawkishness we hear over the weekend or reinforcing their message that they have more work to do themselves. that sets up a pretty feisty morning in australia, which is notoriously illiquid first thing on monday morning. we know of the dramatic moves, the yen and pound off in full into 8 -- often fall into a deep hole on a monday morning. manus: if you look at where the dollar is, bank of america notes it is 18% overvalued on a real effective exchange rate. if the s&p, ecb and bok did want to talk about currencies, what you think their message is going to be? >> the bank of korea this week has told traders a few times that there is concern about speculation against the korean won which is trading at the lowest levels in 13 years. so that market has positioned itself or more dollar strength and korean won weakness. the central banks are watching emerging-market click currencies -- emerging-market currencies cl

david: the bank of england has several problems. citigroup said it season pete -- sees peak inflation at 18%. in the meantime, there are other problems. the economy was in a recession last quarter. even more, was interesting is the conservative election, if she wins it, she has indicated she may play with the boe mandate. investors tend to like leaders staying clear of central banks. any idea she may end up changing the mandate may not be positive. haslinda: investors want clarity. how will it play out? david: the dollar is the key driver at the moment. when fed powell comes in, he comes in very hawkish. he says let's make this really clear. we will raise rates. we're not going to cut rates next year. markets are beginning to reprice that. how does it feed into the dot plot? it was basically 3.75% was median. the chicago president is on the more dovish side. he to seize 3.75% to 4%. there is a good chance the dot plot in september goes higher which is against what the market is expecting. haslinda: so much for the dollar peaking. he

regional banks have actually been strong. look at it pnc, which is the biggest way to the bank and is epf and they just talked about strong net income growth. they talked about net income, i should say. even where the income was better than expected. that the income, capital markets et cetera, that i think is going to be under a fair amount of pressure. i think banks are better positioned on credit here and what we have not heard anybody talk about is the credit impact of what a day like today actually could settle into. >> okay. mike, what is the trade here for financials or regional banks? >> one of the things we have any options market right now as a result of what has been going on our elevated options, premiums. whenever we are looking at how to structure trade around our directional thesis, in this case that is regionals are going lower, you are going to look for spreads. i always look out to november, the 6560 point spread. that was about $1.85. only slightly in the money. i think i days and carry might have been close

by the bank of england today. which is slightly counterintuitive. up next, we have the european close. we are counting you down for that. of five minutes away now. we are also talking about what is happening with the travel story. glenn vogel president and ceo is going to be joining us to caution in their numbers in favor today. we have that conversation a little later. this is bloomberg. ♪ millions have made the switch from the big three to xfinity mobile. that means millions are saving hundreds a year on their wireless bill. and all of those millions are on the nation's most reliable 5g network, with the carrier rated #1 in customer satisfaction. that's a whole lot of happy campers out there. and it's never too late to join them. get unlimited data with 5g included for just $30 a line per month when you get 4 lines. switch to xfinity mobile today. this is xfinity rewards. our way of showing our appreciation. with rewards of all shapes and sizes. [ cheers ] are we actually going? yes!! and once in a lifetime mo

low food bank are in full swing. in recent weeks, the busy period has been especially bustling employees expect the same today. a delivery from a nearby supermarket has just arrived some slow, 5 strawberries, and 2 pots of herbs. but the delivery for the cielo food bank would have to be much larger than this to accommodate the increasing need buffy. 50th of what i see here now, i know that we can't meet today's demand. sabina horn is walking a tightrope, more people and more need all while seeing fewer goods is invisible and you can see here that we're struggling to survive. we don't know how much longer we can keep it up, that we will be able to help people, the city low to for long. it's just before 11 a. m and people are starting to line up. many issues are currently hitting every day people in their pocket books, many who had little before and now being hit the hardest by rising prices. so good and good morning. the 1st step is to draw lots each time. there's a new order for who can pick up food and at what time

we've got the ceo of valley bank, the stock up 12% over the past month, outperforming the bigger banks we're going to talk lending, the consumer, and why rates, bond rates, are funneling even as the fed hikes their interest rate. >>> plus the vivid seats ceo, the company reporting a rise in revenue and upping its guidance. we'll get his take on discretionary spending in the face of this slowing economy kelly. >> yeah, we're excited to hear more about the consumer, which is showing signs of life in areas, tyler stocks, though, are mostly lower and the nasdaq is the biggest lag laggard as we hover off session lows the chip names in particular weighing here. the s&p down half a percent. multiday losing streak, about four days it's trying to avoid now and the dow is down 39 let's look at some of those chip players like micron, which today is off 5% after issuing a revenue warning of its own just a day after nvidia's yesterday the smh etf saw 4 .5% today. norwegian cruise line is the worst performing stock in the s&p. they'll continue to be unprofitable in the third quarter and return to 20

one stock we are watching his commonwealth bank, this is the largest bank in australia. that was a beat on estimates, the dollar is in tight range. the ozzie and the yen, little change, the cpi also has data from china later. heidi: the inflation feature is different compared to the rest of the world, japan reducing prices as well. we are seeing a distortion in the slowing of japan producer prices. going back to china, it is likely to see this kind of push pull factor of we are expecting to see food prices accelerate, driven by the pickup in pork prices when it comes to the food inflation bus. you do have waning household demand, the demand will keep the cap on service prices. we know with covid zero there is some uncertainty, this is different, then inflation wednesday in the u.s.. kathleen: it is the pboc of chinese inflation versus almost every other economy in the world. for the federal reserve, we are looking for the headline number to go down to 8.7%. the core takes out food and energy and gasoline prices. the federal reserve, several officials have made it clear t

in fact, once we issue the restructuring of the banking sector, the secrecy law for the banking sector and the budget 2022. then we can really start talking about serious next steps of opening up more the banks dealing with the deposit, hers giving hope that the deposit can begin having access based on a, on new laws that are out. com has returned to sierra the own after days of nationwide anti government demonstrations. there's an anger about rising cost of living. the testers are demanding 1st and to this other step down at least 20000 people have been killed, including security personnel. the government has imposed a nation wide curfew. interest has more from the capital free town. on a regular day, the streets of free town would be chalked with human and view killer traffic. that traffic is currently scanty. this has to do with a fears expressed by several unions. a lot of them are keeping of the streets and even away from the market, fearing that things could erupt once again. now, shops that are supposed to reopen have not actually operating. i'm not actually operating at maximum

i don't like regional banks. let's look at the kra. the first chart is yields, the big subject of the day. 10 year yields did not move. 2.97 this time a week ago. 3.04 right now. a head and shoulders top is what i see. the kr rates, that is the spider, regional bank, ats and the first chart you see here is the regional book chart. look at the same chart relative to the s&p. it is down and to the right. it has been underperforming since the day it was launched. it is not a good place to be over time. final two charts. the kre itself, just a minor trend. parallel lines. final chart, i think we go back to the timeline above which we broke in july. a good five, seven, 8% lower. >> thanks, carter. that's very interesting. tim, what is your take on the regional bank fundamentals here? >> it is interesting, and carter showed that long-term chart. the short-term chart from april, they have outperformed the s&p almost 15%. they have outperformed money center banks almost 10%. i would tend to agree. my thesis would be we have not even gotten int

with the help of western banks. one document showed a payment of full point $4000000.00 made by quick pays from its nominal home as a cypress registered company. the money was held in a quick pace account in vienna with austria's mine old back. it was wired to an account in frankfort with comments back on to deutscher bank in new york. it ended up at voltage international bank in latvia, new account of a shell company, folks trone networks, limited foxtrot, like quick ice is registered in cyprus. none of the banks appear to have raised a red flag. what's called a suspicious activity report. it's very easy for a bank to fill out a suspicious activity. 4th is actually present, but the trouble is a who's digesting this. the switch 2nd reports. and the answer is, in many cases, nobody. the documents, linking quick pace to foxtrot networks in turn, link quick pace to one of the world's highest profile. money laundering scandals. it was discovered by russian accounted sir gay magnet school. he was working for an investmen

banks. those are changing. we always set the market pricing was too dovish, especially for the fed. that explains why the volatility was low so far. that can reverse. when you look at the futures curve in the volatility curve it is not too far off. it is the steepest in a long time. kailey: we have focused a lot of our conversation on the developed world where central banks are tightening policy. in other places policy is easing. in china even at cuts overnight. trying to shore up that economy. is there an opportunity to invest in china given they are trying to be supportive even if the growth outlook is deteriorating? karim: one way to look at it is what does china do in your portfolio? the past those folk quarters have given a good example of this. we had pretty low correlation. this is something to think about. more broadly i would caution against too much expectations of further easing measures given that we are still inflow -- we are still in flux. there is a lot to see in terms of the

francis: the banks, many are exposed to mortgages. we have seen agricultural banks close. we do see a difference in the property loans quality. mortgage quality is still intact. banks have also disclosed their mortgage ratios. they are still in conversation. the banks have already eased, that is what i have seen. yvonne: beyond the property and impact exposure, you're still talking about rate cuts, credit demand that has collapsed. when it comes to net interest margins, can i see more compression? francis: for the banks which have already reported their numbers, they are guiding more than margin compression. which makes sense, because the last year has been affected, early 2022. this year's rate cut -- may be in the rest of the year you see a decline in margins. rishaad: we had a story the other day that the government was asking people to lend. they are lending money, but also asking for the same interest rate. it is hard to read a bank's balance sheet at the best of times. francis: that happens with stable enterprises. they have a big focus. it does not surprise me. this

and let's return to the top storage of central bank cutting a key interest rate. and let's good more on this from jacob gunter senior analyst at the mercator institute for china studies. welcome to the w, jacob received central bank intervening for the 2nd time this year. do you see more than just macroeconomic factors at play here? yeah, there's certainly more than just the macro economic factors. and when you look at this 10 basis points reduction, it's quite notable because it's the opposite of what's happening ever else in the world. everyone else is rushing up their rates and trying to their, their lowering it effectively because they have the opposite problems that we have . the united states and europe. consumption is incredibly low and weak relative to supply. so they're, they're definitely trying to keep the economy from kind of falling out in large part because of the plumping investor and consumer confidence is coming as a result of kind of 0 policies as long as it maintains, if you're hoping approach consumer consumer investor confidence is going to be

the bank of england _ fall. many thanks for your time. the bank of england is _ fall. many thanks for your time. the bank of england is widely _ fall. many thanks for your time. the bank of england is widely expected l bank of england is widely expected to make history today by increasing uk interest rates by the highest amount since 1995. the bank is expected to make an announcement at noon to tackle rising inflation. inflation is currently at 9.4%. but the current target is 2%. the current interest rate is at i.25%. and the bank of england is expected to increase the interest rate by 0.5%. the conservative leadership candidate and former chancellor rishi sunak spoke at the conservative leadership hustings last night in cardiff and said any response to inflation would "need to be careful". i think the response to dealing with inflation right now is for us to be careful. i don't think launching on a spree of unfunded promises costing tens and tens of billions of pounds is a sensible thing to do. i think it risks making the situation worse, risking it lasting far longer

the bank of england says the u.k. base is protracted recession after raising interest rates by 50 basis points, the biggest interest rate increase in 27 years. we spoke with the governor andrew bailey. >> since we last did the monetary policy reports at the beginning of may, that shock from russia in terms of the impact on gas prices has been huge. we have highlighted the risks as we see them. i think there are risks both internationally and domestically. yes, it is unpredictable. we have seen very big things happen. by the way many other commodity prices have gone down since we last looked. francine: it just seems like a spiral. given where we are now, could it get much worse and can fiscal policy help in trying to temper that downturn? >> fiscal policy, we condition our view on what has been announced, but the last pattern was, i look forward to working with the new prime minister. the new policy will be determined. that's the right way to do that. francine: how ugly is this recession going to be? >> obviously, the

lazy is outside the bank of england -- lizzy is outside the bank having one, markets have placed bets about half-point height, what could we get? >> francine, the majority of economists see a half-point hike. there is this interesting minority seeing a quarter-point, including morgan stanley and citi, that is because they point to the recession risk. it is said that the u.k. is already in recession. on top of that, they point to the labor market data. yes, it is tight in the u.k. but it seems like we are past peak tightness because people are coming back to the workforce because they need money to deal with the cost-of-living crisis. these economists point to the economic picture. yes, the ecb and be -- the fed have gone for jumbo rate hikes. so don't take andrew bailey at his word when he says 50 may be on the table but is not baked in. we may also get an upgrade of the inflation and growth forecast, and are expecting details on qualitative -- quantitative tightening. francine: i was going to ask about qt which is probably the bit of the market that is most interesting to pound trade

few closely held partners of the bank president bank chairman, and that's what chase did he demanded? they lend them all their gold. they were very reluctant. they preferred to lend them their notes banks the currency of the country then was one currency, but every banquet issue iou use and these ious with circulate some were good some were not so good chase didn't want these i use he wanted gold. and he convinced the banks to lend him 50 million in gold coin and at the end of that they had a celebratory dinner. the banks were tapped out and the rest of the war is really the story of how we got it by the january 1 of 1862 the second year the war. there was no more gold in the banks. the banks had shut the goal window and the north has to do the next specs thing. this is chasing the congress which is the issued something called legal tender paper greenbacks. this was just pieces of paper that were deemed to be the redeem to be money. this is a shocking thing back then people thought that only gold and silver coins could be money actually was immoral to declare anything else money. it w