rishaad: we are running up to 10:00 a.m. in beijing and right here in hong kong. this is bloomberg markets. of course, it is all about the reserve bank of new zealand decision just coming up within the minute. yvonne: consensus is for that 50-basis-point hike. how much more aggressive can rbnz be in the face of all the recession risk? david: absolutely. they came out with that initial blueprint to take rates all the way up from current levels into next year. they came out with this forecast not knowing what will happen with the chinese economy and the

sort of malaise we are in when it comes to that, so if they push through. they will likely post with this great decision that should be out any second now -- rishaad we go. david: it is out? yvonne: it was a hike of 50 basis points. this is the consensus of most economists. we will continue to wait for the statement and with the thinking is for this time around, but the china slowdown story, that will think muddying the picture were a lot of central banks are now in asia, ramping up the sort of rate hiking cycle. rishaad: unemployment 3.2 percent or thereabouts. this is a central bank which is actually being, if you like, really front running. cash trade peaking at nearly 4%. 39 percent.

-- 3.9%. get to new york and joined our global policy editor kathleen hays. kathleen: the fact they have a cash rate rising to at least 3.25% this year must say something about what the rbnz thinks the neutral rate is, right? it had been estimated at about 2%, and there was conjecture going into the meeting that we might hear officially they not estimate something higher, maybe even 3%, so perhaps they are looking at that 3.25 percent because they realize they have to get to 3% or higher. they do see inflation slowing to 3% i the third quarter of 2023, and they think that -- they agreed to risk -- briskly lift the official cash rate, so i don't think -- they have made it clear they have moved

aggressively and are ready to move aggressively again and they see larger earlier hikes as producing their risk of persistent inflation. the rbnz has been out in front of the fed for a while on these rate hikes, but that is what we are hearing from any officials now, and it seems to me they are sending the same kind of message -- hit it hard. hit it now, and then maybe we will be fortunate enough to see it starting to come down next year. that's the big question. david: the markets are picking up the decision, but the guidance, the viewpoint, really a hawkish target here on the cash rate. the kiwi dollar up by about .1%. the cash rate target just under 4%, so that is quite a difference from where we are still at the moment here. yvonne: they are definitely it seems like trying to be in competition with the fed.

joining that perhaps maybe a little bit behind is the ecb. we did speak exclusively with the president, christine lagarde, about the bank's path forward. her answer helping to fuel recession fears out there, but she says july still maybe set of for that rate hike. president lagarde: we are not in panic mode, and we started the journey thinking about it very carefully with steps along the way, and we are not at a stage where there is every certainty that we will stop net asset purchases very early in july. yvonne: kathleen, your take on christine lagarde's comments here. obviously, they have to balance not just inflation concerns but for in ukraine as well. kathleen: certainly, and they are worried about the impact on the economy.

basically, christine lagarde is speaking with the consensus. the consensus is looking for a 25-basis-point rate hike in july and another one in september. that would get their negative right back to zero. at the june night meeting, that is where the big debate is going to occur. they are expected to officially end on purchases and give us the groundwork. there is a smaller consensus among the hawks that the ecb may have to consider rate hikes by 50 basis points. christine lagarde said in the last 50 days in dollars that she thinks inflation is more of a supply problem, not so much a demand problem. supply shocks, all of that. the dutch central bank governors says 25 basis points unless inflation gets out of control. the head of the austrian central bank says he thinks it is

appropriate to do 50 basis points and anything less than that would be perceived as soft. but that is still the minority view. you start the hike, do 25 basis points, 25 basis points, see where you are then, and i think you are wise to point out they will see where all this upheaval that affects europe so much more than it does other countries -- they will see where it is then. yvonne: the fact that they are even exploring a 50-basis-point hike is interesting and something we have not seen for some time. we will have more with our interview with christine lagarde from davos, just wait about 10 minutes' time. david: to kathleen's point, it

is really inflation and answering inflation that seems to be the point. i want to give you two lines to answer this quickly, that stabilizing inflation is the top priority, number one. economic headwinds are strong. they know the economy is going to run into some challenges, but despite that, they are looking to raise rates to an extent that might actually be the former -- labor shortages, and this might the a not wage inflation and the negative output gap, which i mentioned they are alluding to as well. labor shortages are now the major constraint to production. areas of risk too little, too late, worse than much too soon -- that is a very strange line, but in any case, it seems to indicate that they want to get ahead of it. they have seen what happened with the fed, and perhaps do not want to end up in that sort of situation. kiwi-dollar, as you can see, erasing its earlier losses,

heading up .5% on these comments. we talked about the kiwi. let's talk about the chinese currency right now and the calling coming out of the pboc and authorities here, banking regulators, for banks to extend. that's the amount of lending that took place in april. that is the rate of change. it was a big contraction from the year before. officials are now calling for this number to be bumped up. rishaad: as you bump it up, that is the point as well. that is the overall message. it does seem as though we saw those tax cuts, if you will, but it is almost as though the pboc has got deep pockets but very short arms. >> if you want to know what the message is, pick up any

state-run newspaper this morning because xi jinping's technique -- economic priorities and achievements as well are flashing across every state run newspaper, and it outlines some of the stimulus measures that he is initiating and telling the state council to do and perhaps even telling the pboc despite its independence, of course, to roll out more bank loans. monday, we had the meeting of the state council. they outlined some 33 different stimulus measures, including the additional tax rebate, upwards of $21 million. now david just talked about bank lending in april. new you on loans selloff, the cliff, obviously, because of the lockdowns and risk aversion from corporate, and a lot of these measures that were announced -- what? monday? by the state council and also the pboc, essentially instructing, there was a meeting

with 24 major financial institutions, instructing them to start rolling out those loans that we have already approved, right? get it out there, but there's probably a lot of risk aversion at the banks as well. the economic growth is the priority right now. yvonne: the markets still disappointed, after all this verbal support we are getting, what we are actually hearing from these meetings is not matching what at least analyst are hoping to see. what would be that game changer at this point? stephen: we have to start seeing opening up of the economy. that is the bottom line. one of the biggest complaints right now is that these initiatives from the pboc, the banking regulator, target small business, green projects, technology innovation, energy supply, infrastructure. those are longer-term. those are institutionalized longer-term channels for money.

what about the consumer? there was only a very small number of tax rebates toward new car purchasers. we also have the load prime rate reduced for first-time mortgage purchases, but again, the consumer is such a huge part of the chinese economy now. they are kind of locked up into shanghai, restricted in beijing. could be restricted in other cities. there is very little, actually, to spur the consumer. rishaad: all of this being really overshadowed by events in the u.s. president biden discussing new restrictions on firearms after a gunman opened fire at a texas elementary school. authorities day 18 children were killed in addition to three adults, though it is unclear if that includes the attacker, who police reportedly killed at the scene. he has been identified as an 18-year-old man who was armed with a handgun and possibly a rifle.

>> as a nation, we have to ask when in god's name we will stand up to the gun lobby. rishaad: china's top officials signaling tighter restrictions to contain its latest covid outbreak. some see this as a sign the government could be losing patience. north korea has reportedly fired up to three ballistic missiles early wednesday morning. south korea and japan confirming the launches in different statements following on the heels of president biden's trip to the region. north korea acquiring missiles at a record pace this year. united states seeking to raise pressure on russia by letting a key sanctions waiver expire on outbound cash flows.

bondholders outside the u.s. may still be able to receive russia's coupon payments. india restricting sugar exports as a precautionary measure to safeguard its food supply, capping it at 10 million tons for the market year that runs through september. india possibly the world's biggest exporter after brazil. david: food protectionism in developing markets. u.s. government pretty much scrambling to safeguard food supply. also coming up, central banks across the world are wrestling with rising inflation. we had the rbnz this week with j.p. morgan on what to expect. yvonne: don't forget to turn to bloomberg for more on that rbnz decision with governor for --

governor mark -- governor orr said to speak next hour. year end, rates could be at 3.20 5%. the peak, 3.90 5%. in new zealand, this is bloomberg. ♪ re efficie you become. such amazingly perfect shapes run throughout the natural world. and can now be found in the automotive one. the world's most aerodynamic production vehicle. the eqs sedan.

david: 100 25 more basis points in terms of rate hikes. that is what the rbnz just told us minutes ago. have a look at the market reaction. as far as the currency is concerned, it is on it rocket here. yields actually lower here. rishaad: seen as being ahead of the curve, we did have them saying a short while ago that they would rather have too much too soon, which is better than too little too late. anyway, is that the case elsewhere? thanks for joining us. the reserve bank of new zealand is seen as being ahead of things, generally speaking, but is the narrative perhaps market-wise turning away from inflation and becoming more and more essentially what happens in

terms of growth, recessionary fears, and stagflationary ones, too? quick ceat, that is the direction of travel. we are no longer seeing early-stage hiking cycles. i think we will go do these phases of worrying about inflation and worrying about most of these cycles because as you get probably to the more mature phases of the tightening cycle, then it is natural that we start to grow the way we are. the fed has a handle on this problem, but i think most central banks will find that when faced with once in 50 years problematic inflation shock, they will have to face inflation in ways they have not had to in the past.

this is why i believe we will see more hawkish outcomes at central banks around the world end of outcomes. yvonne: based on what we heard from the rbnz, can we expect the kiwi to had higher, given that they see a peak of rates at 3.95 percent, or is the dollar still the key driver you are seeing right now? >> the rbnz forecast is not in magnitude terms tremendously different from where we are now. the label we are using is a stagflation-like label where when central banks have to hike rates for "bad reasons," like to counter inflation as opposed to growth, it is not likely currents will fall the way they have in past cycles. we have seen that across markets . the last time the rbnz did 50,

that proceeded a slide in the currency over the next few months. we actually expect the qe2 we can -- the q. week -- we expect the kiwi to weaken. >> we are always data dependent, so we look at the data presented by our staff and act accordingly. we are likely to may be by another 25 basis points at the next meeting. david: they hiked last week. it looks like they will hike again in three weeks. does that make you change your view? >> actually not because for asian currencies, particularly southeast asian currencies, we do not find a lot of

correlation. ultimately, the biggest driver of these currencies tends to be trade backs, and that is basically the short base of trade. if we see that kickback in again, we will see that pickup and the trade balance refocus. rishaad: i'm going to move to china now. we have had a lot of talk currently not backed up by much action by regulators on it authorities in beijing and the central bank as well. has beijing really turned up with a knife at a gun fight? >> that is an interesting way of putting the question. in our conversations, what we

tend to come up with is this notion that there is a lot of quality support coming through. the reason why they are not seeing that support transition into on the ground liquidity is simply the current on the ground lockdown situation, and us time passes, we will probably see more stabilization in activity. it is just that right here, right now, covid measures are coloring and lot sentiment we are seeing. yvonne: we have to leave it there. thank you very much for joining us from singapore. stay with us. we have our interview with ecb president christine lagarde next. this is bloomberg. ♪

david: there has been a lot of talk certainly in davos about an ecb rate hike ahead. bloomberg spoke exclusively with the person in charge, madame christine lagarde. president lagarde: we are at a turning point. we have all of the components in place for that. we are turning our back to negative interest rates. we are moving very lightly into positive territory at the end of the third quarter, and then, of course, we will calibrate. we will establish by exactly how much we want to do that. francine: when you talk about no longer negative rates, has the market quite understood this could mean also positive rates? president lagarde: when you're out of negative, you can be at zero. you can be slightly above zero.

this is something we will determine on the basis of our projections, on the basis of forward guidance. i think there are reasons to believe that all three conditions will be satisfied in june and further on in the summer. christine: where are we in the third quarter? president lagarde: what i'm saying, i will stick to. we will be out of negative interest rates most likely before the end of the third quarter. francine: how do you see inflation developing from now? president lagarde: there are lots of forces, and some of them counteracting against each other. you have the war, which in and of itself, is an absolute trauma and has massive economic impact not just in ukraine and eventually in russia but for the rest of the world. we have energy prices, which have gone up significantly and represent a big chunk of inflation. we have food prices.

there's a series of things weighing on growth and pushing inflation up. francine: how likely is it the eurozone goes into recession? president lagarde: we don't have that as a baseline. we run three loads of scenarios. we have the negative, the adverse, and various alternatives there on the basis of hypotheticals, such as interruption of gas supply that clearly would have a significant impact on the economy. for the moment, we are not seeing a recession in the euro area. david: that was christine lagarde speaking with our francine lacqua. we are looking at levels that are back to levels from about mid march. beyond that, back to about 2010-ish. rishaad: leaving you this picture of what is going on in new zealand.

♪ >> japanese markets heading to lunch break, but action in new zealand this morning, rates surging on the back of your and rates at 3.25%. the market is slowly readjusting, not really slowly, but swiftly. we have seen the two-year in new zealand reversing the earlier losses we have been seeing. the three year and the like here dave, a lot of action. david: 15 years also in that the green, if you will, reversing losses that we had earlier on in terms of the yield here by the way, just to be more clear. we are flatter as well on the curve with a short and up on the seven year. a market expectation, certainly

controlled by a refreshed target. rishaad: absolutely. and that of course is good for the markets. let's have a look at what is going on. first word news right now. softbank in the new york subway surrenders to police. warrant over the shooting of daniel on sunday, which police say was an unprovoked attack. in response, citic -- city mayor eric adams was advised on thursday to talk about crime concerns. george soros's warning that russia's invasion of ukraine could be the start of another world war. speaking at the world economic forum, the 91 rolled billionaire called the quote regime oppressive, talking of china and russia. he said other issues facing humanity have taken a backseat to the conflict. >> russia invaded ukraine and

that has shaken europe to its core. the invasion may have been the beginning of the third world war. and our civilization may not survive it. rishaad: banking regulators urged to slow covid restrictions that slow growth. pboc governor and other officials called for improved delivery. it came after credit data for april showed loan growth that is the lowest in five years. india's central bank kept its -- raised -- kept its key interest rate at hold but raised reserve requirements for lenders in 9%. bank of indonesia says the move

will absorb seven a half billion dollars from the banking system. they kept their rate at a record low to support pandemic recovery, even as regional piers, malaysia and the philippines tighten policy. core inflation is around 3%. russian opposition leader alexi navalny has lost his appeal against a new nine year prison sentence. he will be transferred to a high security prison that supporters say is aimed at isolating putin's top critic even further. convicted in march of fraud and contempt of court. that is a look at the first word headlines. david: let's have a look at the tech space against the backdrop of interest rates moving up substantially this week. so we had to mention a few names , obviously, new zealand just came out. you had a couple central bank positions taking rates up earlier in the week. nigeria took rates of about 150 and then we have to talk about the bank of korea. these rising rate environments hammering.

that has continued to fall as we speak. that gauge is actually here at the bottom. the nasdaq golden dragon index also a tech heavy gauge. these two have basically just faltered each time they approach the near term assistance level. and this elusive rake up that we have not seen obviously. yvonne: you've got to wonder what is really causing it. we saw growth concerns that the rate rises and the like, but we have snap earnings, which is a second-tier tech company that can send the market down in the way that we saw the nasdaq overnight. for a second day in a row, it is just an excuse to take profits of some of these tech names or shelter your losses. speaking of shelter, where do you go? value seems to be where you go in asia. you look at where that rotation has been from growth of value, we actually have seen how you outperform growth every month. this year. so that seems to be the direction of where to go here at

this point. rishaad: you mentioned -- well, one of the cofounders came out and actually said they were a camera company. anyway, 52 week highs. in the entire month. well, a big fat zero. so that tells the story at the moment of how depressed these growth stocks have been. it is quite similar in some ways to what was happening in the.com era as well. the cost of borrowing goes up, so does the cost of funding and these are high in many of these companies. there is a consequence for the ones who suffer the most. that brings us to the question of the day which is how far will this tech stock slump go question mark if you can answer that correctly, you will be a billionaire. david: yeah, and neither of us are billionaires. yvonne: i don't even know how to try to answer that one. david: why don't you guys chime in, give it a go? that is a 50-50 question anyway.

will stocks go up or down. coming up, food prices continuing to rise as more emerging markets seek to protect local supplies. we will dig into the story in a couple of minutes. stay with us. 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.

rishaad: we are back with the markets. that is a snapshot of some of the movers in the commodities complex. i have no idea why it is called the complex. down, wheat index in india being down. palm oil, looking at that one closely as well. taking a look at funds. chief economist has been talking about global food inflation. it saying it is a major concern and will continue to rise. she was at the economic forum, speaking to us. >> this is a major concern for us. it is not just india, but if you look at food exports, since the start of the war, around 20 countries have put restrictions on food exports. be it wheat or be it palm oil

and many other such products. fertilizers also are seeing a shortage. we worry a lot about what is going to happen with food prices. i think it is one of those prices where there is probably more that is going to go up in the future than what we've already seen and it is a major concern. >> the history here is a domestic government will come to the rescue, flatten prices like the cost of bread in egypt has been flat for decades. and subsidize whatever the commodity is. until it breaks. how close in your study country to country are we to a breaking point of that domestic subsidy to feed people? gita: after two years of the pandemic, governments around the world, especially in countries like egypt, do not have a physical space to provide widespread support. this is something that we are tracking very closely, exactly this question of how many countries are facing these rapid

increases in import prices and therefore, are likely to have balance of payments problems. this is one of the trackers that we have and this is a major concern. >> how much is this a failing frankly of the developed world for supporting ukraine more? in other words, actually providing more financial aid in order to get some of those supplies to the rest of the world? gita: you know, this is a very challenging issue about how to add ukraine. the problem is the embargo on the vaccine. you cannot get the ships to take the week out. thinking of creative solutions in terms of putting them on trains and send them out there that way but that will take a lot more time. in addition to the war, we are seeing the effect of climate change around the world. one of the reasons why india has put its export restrictions of wheat is because of bad weather. so that is another big negative, but we do really need to try very hard at this point to try

to get supply of as much as possible around the world. yvonne: that was gita, imf first managing director at dabo's. let's bring in our energy commodity or -- commodities editor, andrew james. andrew, we heard about what is driving these food prices right now. is it mainly due to what we are seeing in the war in ukraine? andrew: hi, yvonne. that is certainly a big part of the wheat -- what is driving the wheat price, russia and ukraine account for about a quarter of the world global exports and wheat is the area we have seen most restrictions worldwide. climate change, which is a big problem in india and it is also just generally inflation and rising prices. i mean, with the malaysian chicken export ban, that was due to rising prices. yeah, so it is a combination of factors there. david: get us up to speed on

these latest developments as far as exports. especially across the region. we've heard from malaysia, india, so where are we on these stories? andrew: right, well, the latest one we have was india limiting sugar exports. that actually took a lot of people by surprise. they have seen a cap of 10 million tons or sugar exports. they have never actually exported that amount before. people were thinking about nine to 11 million tons, so it seems to be mainly precautionary. that is going to potentially have an impact on indonesia, which is a big shipper importer. then we had a week ago the indonesian than, which both indonesia and the philippines are big buyers. that will have a big impact there. the malaysian chicken band, which is mainly going be felt in singapore, which takes about a third of its birds from malaysia.

but in an international context, this is increasing. a lot more countries are looking to do this and i think we can expect more of these types of bands or limits on the amount of exports. rishaad: andrew, what what could really happen in the region with these residents. people do not take these things lying down sometimes and it can lead to geopolitical tensions as well. we could have a food security rivalry. andrew: yeah, that's right. i mean, the immediate impacts of course are on prices. global prices are up 50% this year. palm oil of about 37%. yeah, so there is the price, the inflationary impact that is also going to have an impact on monetary policy with central banks possibly having to sacrifice growth. but in poor nations it becomes a food security political risk. we've seen what is happening in

sri lanka recently, riots in the streets. a lot of these southeast asian countries, large amount of people only making several dollars a day. increases in these basic foodstuffs can create civil unrest and bring people out onto the streets. yvonne: thank you. our energy and commodities editor andrew james joining us from singapore. the big topic there i am sure. chicken prices moving forward. we are going to get behind on chicken. it's not just when it comes to food prices, natural gas prices in the u.s., all of the like today. david: for several weeks, we had a pause during april, but here we are again. her talk about this before the show, natural gas futures were looking at the nine votes margin. we have not seen these levels in at least a decade. brent is up for five straight days now. the rest though, this is really

more down, so i guess the conversations here around the slowdown in china, the changing use flow that is coming out. at what point to these things again -- to your earlier point on food, that is your big story to watch here. energy and food and then inflation, but we can talk about that next time. we will bring you some of the latest. rising rates, ceo of ralph hammers there as optimistic. he told our colleague francine lacqua despite headwinds, wealthy clients are sticking with their investments. have a look. >> what you see at this moment because it is unclear is they stay invested and not more money is coming into the markets. >> this is what happens when you earn your views. it is active management back? is this the only way to make money? ralph: active management only happens when there is

transactions, right? so there's more transactions. then the money will not flow, but i do think that this will not last for long. i think in the next three months there will be more clarity coming through. and it is clearly a couple of things. i mean, we just went through -- we had three major shocks, right? the pandemic shock, the war shock and the transition shock. supply shock, demand shock, altogether mixed into one. of course it is unclear at this moment in time so we will have to figure this one out, find bigger steps to maneuver. in order to settle. we need clarity coming from china, so you know. >> interest rates are going up in europe. >> interest rates are going up. absolutely, yeah. so getting into positive territory is a good thing in my view. we can make bigger steps there.

rates are still negative, so therefore, i do think from a policy perspective, it may not be as bad to make those moves. it's good for ammunition when you need again. >> can you take on wall street titans in certain spaces? >> for sure, absolutely. why not? we are truly the largest global network for private money. four and a half trillion. there is only one, that is ubs. that is not to brag, it is just what we are. the question is how do you bring it together and make it interesting for all of your clients? this is an ecosystem where we see asian investment opportunities for u.s. clients. and brazilian opportunities for asian clients. we bring onto for norse together because arch were nora's do not want to invest in public markets, they want to invest. >> sometimes they have liquidity issues, so they need their backers. if you look at europe, consolidation in europe, if you buy anything in europe? >> i want to separate the question here.

you mentioned europe and the euro zone i think. i find it really difficult. i think that they've done a tremendous job creating a level playing field. i think they should get much more credibility for -- much more confidence from the local authorities and what they have done and build. also in terms of safety there, but as long as the local authorities sit on the capital, sit on the quiddity, there is not a lot of benefits for cross-border conservation in the euro zone. rishaad: ubs ralph hammers with francine lacqua. top of the hour, we saw interest-rate move by, the reserve bank of new zealand, we are also seeing a peak of rates at 4%. this is what it looks like and currency markets. there you go, we've got yen it now at 127 against the dollar. and the aussie, 70, maybe 71 to the u.s.. and euros lurch upward

continues. now one of seven. lots more on the way. this is bloomberg. ♪

yvonne: u.s. futures looking good this morning, for tense 1%,

dollar catching a bit of a bed this morning. yields are taking up just slightly higher in the u.s. as well. bank of america is boosting pay for tens of thousands of u.s. employees that are in less than hundred thousand dollars. adding reimbursements for a portion of ev purchases. ceo brian moynihan told bloomberg it is key to maintaining a healthy work worse. -- wealthy -- healthy workforce. >> it was probably near 20, came down to 15. we got it down to 12 before the pandemic goes on. it fell the six of the pandemic because we said everybody keep their job, nobody has to worry about their job. we move them around, did all the stuff, he moved back up to 12 and 13, so lastly, we announced 3, 5, and 7% wage increase for every employees under a hundred thousand and a company, which is a good number of people. based on years of service, we are trying to award them.

it's $45,000 a year. but also, $10,000 of tuition reimbursement in advance for people getting a degree. if you think about the mental health benefits that we just announced today, for teammates under 250, we will give them $4000 to buy an electric vehicle, part of our environmental commitment. the key to all of this is to your point, stabilized employee base. we have 200,000 people, 25,000 branches, 50,000 or two 5000 people in operations. having people work for us for 15, 20 years on a career path is a lot more effective operation. >> in the investment banking world, security's operations, when you're dealing with a market that has seen a pretty big selloff and a big disruption, and we are expecting a bit of a slowdown in investment banking services, do you expect bonuses will have to come down and how hard will it be then to retain that? >> this colleague does work in

very narrow areas and you always ask about that. we pay 90,000 people bonuses a year, so it is a different equation at a copy like ours. the flow of the market, that is what they do. our team are gaining market share in a difficult market because the pools are down. they have done a good job on the trading side, we are holding our own in trading revenues. ok, it is solid. >> how much do you feel like you have to keep up the bonuses in order to retain staff? >> we will see how the year comes out. it is still early. rishaad: brian there at bank of america, ceo. let's take a look at business flash headlines. ana's ceo says japan's easing border patrols should lead to a rise in domestic and international travel and i would boost to airlines revenue. japan's government is said to relax border controls on a trial basis, letting in small groups of satyrs. -- taurus. that should help with travel and returned to profit for the first time in three years.

>> foreign travelers used to complies about 10 -- comprise about 10% of travelers feared with the covid situation, i do not expect a huge chunk of visitors, but i expect three to 5% of foreign travelers to come back. rishaad: sources say that oil hotels has plans this year that after the market downturn hurt its valuation, board members of the watch flying indian start up our having talks in a change in the offerings timing. this is after consulting with bankers and investors into the earliest possibility as they pushed back to next year. production woes in china weighing on tesla share price. his most recent attempt to ramp up production in shanghai, the ev maker is isolating thousands of workers in factories to ensure that they are covid free. david: the big event this hour was that rate decision out of the r betty: they've taken it

up to 2% --rb. it is the first back-to-back 50 basis point hikes going back to 1999. we put that back together with home price inflation which has been cooling. are not going to jump to collect conclusions, but it's clear when rates go. yvonne: given the market, potential measures they already have, how much a cooling are they going to have with these rises, mortgages are rising as well, so they can actually achieve a hawkish play like they played out is the key question. talking about in the tliv blog about tourism. bungee jumping tourists. rishaad: that's what they go for. all right, check of the markets. you can follow the action from the reserve bank of new zealand using tliv if you are a bloomberg subscriber. there you go, the crypto space, bitcoin recovering there, up by

2.2% and overt that, 30,000 either following in its path as well. that is a look at futures. should be leading a little bit of support. this is bloomberg. ♪

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yvonne: when is almost 11 a.m. in singapore and shanghai. welcome to bloomberg markets: asia. rishaad: i'm rishaad salamat it in hong kong, let's have a look at our top stories. new zealand central bank stepping up its fight with a second half hike, while the philippines warns of more interest rate rises to come. >> china's banking regular and the pboc urge lenders to boost growth after new lows plunged to the lowest since 2017. rishaad: