intervention by the boj should it will have a limited impact. the markets will go back to the underlying fundamentals of differentials. it does put pressures on these yields, puts pressure on bank of japan policy. you saw them coming with unlimited bonds and they expect a series of these if you keep pushing higher. moving for the question becomes, how feasible is the bank of japan policy? it has room to keep buying bonds, it owns half of the outstanding bonds, at some point the markets will go the policies to change and that alone can affect the dollar-yen. >> you certainly can do both, put a floor on yen and also capture yields. we hit 130 for dollar-yen come with is next bubble to watch? we are watching in terms of the option market? >> 130 is a nice round psychological number, from eight technical viewpoint the 135. 15 which is a 2002 high would be heavily watched by the market. from a technical perspective that is moving down the line, that is a big one. you are also seeing implied volatility the highest since 2020. no surprise and that. the

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haidi: we are going to get more on the boj ahead. could be one of the most exciting meetings in recent memory. the yield curve can stroll -- control strategy something to watch. no expect -- watching for forward guidance in terms of any reference to a pullback in stimulus. and of course watching the yen. this is bloomberg. ♪ ♪ this is xfinity rewards. our way of saying thanks, with rewards for the whole family! from epic trips... to the original jurassic park... on us. join over 3 million members and start enjoying rewards like these, and so much more in the xfinity app! and check out jurassic world: dominion, in theaters june 10th. >> hours away from one of the most closely watched back japan decision in years. rapid weakening to a two decade low against the u.s. dollar is fielding market speculation about a possible adjustment to policy or messaging. the yen is currently at its weakest level on its tenure since 2013. our bloomberg economics and policy editor kathleen hays is here with more details. the consensus is still for no

em fx given the move in the dollar and with the boj did in with the finance ministry might ask the boj to do, were looking for an anchor here for fx. yvonne: yes, saying it could be an appropriate response to the weakening yen. were seeing that dollar relentless rally easing today. we need it given the whirlwind yesterday with the boj. that is where we stand for the japanese currency. here is the yen and renminbi payers are doing now. 6.66 for the offshore. the bloomberg dollar gauge on course for the biggest monthly gain in a decade. look at em fx, we'd snapped out of those losses, nine days, the longest losing streak and 21 years. we have japan on holiday. off next week. the fed meeting thursday. you have to wonder what volatility is in store next week with the japanese traders out. you have one person tweeting about this, saying the yen is the canary in the coal mine for asia fx. david: yeah, because of what that did really to the yuan, right? and tear other point, em fx, the rba, and that is suddenly alive meeting when you look at the pricing after the massive inflation this week.

what can the boj do? >> i think the boj will want to stick to 2.5% here. to me, i think it is quiet this target because that isift clearly the monetary tightening. it is not consistent with what they are saying. to me, one option is set to expand. at this moment, i think the boj will not be a big position. when they think about it, i think it is too early for the boj to take anything additional about the monetary policy decision. >> can they afford to wait that long? >> yes. at this moment, if you look at that, we don't really see spreading on inflation. i think we can wait. we have to check what is happening to monetary policy. i think the bank of japan is going to release their outlook report tomorrow. we can pay attention to what will be the adjusted focus. the bank of japan will adjust downward economy growth. inflation would be adjusted upward. technically, the boj will have this inflation target. >> i want to talk about raising the prices of their alcoholic drinks. we have seen this price hike rush in some of these companies. is this some sort of a s

if not intervention from the finance ministry, perhaps with the boj could do? what could they really do to stem this weakness? >> absolute, intervention is the big work -- word being tossed around right now, what kind of intervention to bring down the yen volatility and strengthen it from these unprecedented levels is key here. to give you perspective, commonwealth bank of australia says intervention is likely to fail without the full support from the u.s.. any intervention of any sort is likely to happen this month by the japanese authorities. they are saying that the little intervention we have seen is very likely to give a temporary reprieve for the yen. all eyes are on the space until there is some certainty. we will likely to see elevated volatility. >> talk to me about the effectiveness of the boj's buying operation. it can halt the rise in yields? how much does that matter when the gap between the fed and other central banks continues to widen? >> that i think is key. the boj operation work to halt th in yields, but is not effectively pushing yields lowe

the boj buying a lot of jgb debt makes it easy. were they to back off and were yields to go up, the market would start taking a closer look at japanese fiscal sustainability, i think that the level of the yen against its competitors in the rest of asia, is not just a small break. it is up by 10% to 15% over the last two months. i think that will be a cause of concern, even if not now because right now i don't think japanese production can ramp up because the yen is cheaper. but once we get past the covid issues, it will be material whether the yen is as weak as it is now because they will both exploit the competitive advantage against their neighbors. jonathan: the comment from the ministry of finance got us thinking about intervention. when you go back to the earthquake in 2011 and we had the joint intervention from the g7, that was because the currency was too strong. right now it is too weak. it also said the big difference was it just feels like they are alone on this one, that if they tried to intervene, they are doing it so l

we also have the boj policy meeting later this week. highly unlikely that we will see anything from the boj. they do remain one of the more dovish central banks around the world, as does the pboc. paul: all right. thank you so much for joining us. let's get to vonnie quinn now with the first word headlines. vonnie: a ukrainian presidential adviser says u.s. secretary of state antony blinken defense secretary lloyd austin have traveled to kyiv. if confirmed, it would be the first visit by top american officials to ukraine's capital since russia's invasion began. president volodymyr zelenskyy said earlier he would discuss the need for more u.s. weapons and was waiting for the security situation to allow president biden to visit. air raid sirens were heard across much of ukraine early sunday evening, warning of potential russian airstrikes. earlier, russia said it hit a large consignment of foreign weapons in odessa. strikes also continued on a steel plant in mariupol, where some 2000 fighters are holding on. kyiv is still pushing for a ce

boj day, always exciting. kathleen: the big question, certainly probably the most we can expect perhaps at the press conference after the policy decision just a you hours from now when governor kuroda will face many questions from reporters. basically, yen is near a 20-year low, but it has been made clear by the boj they are not going to move. a bloomberg survey showing 89% of boj watchers we spoke to say there will be no change, the negative rate will stay at minus zero .1%. they will keep buying etf's and bonds. of course, the yen at 128 and change, dollar-yen. some people say when it gets to 130, there could be some intervention, but the conundrum for governor kuroda is this -- the stimulus will maintain weakening pressure on the get, but tightening could the economy. here is what he said as recently as friday at columbia university -- the bank of japan should continue with the money easing. he said there is still a long way to go to get to 2%. you can look at this inflation chart and see what he means, but

shery: the boj is not moving in terms of letting up on their easing policy. what do you like in japan? >> there was machinery data that showed demand for basic machinery was up 20% year on year. not just across japan. so that is an area that will be insulated from what is going on. shery: we are hearing that building in currencies is important but the government will monitor the impact with vigilance. let's see what the japanese is doing. not much. government officials trying to stave off the weakness we have seen. how connected is the japanese currency to japanese equity markets right now? >> very important. more than 30% of japanese equities are held by foreign investors and those currencies are usually u.s. dollars or sterling and if we see the value of japanese shares deteriorate it will have a big impact on the portfolio. the boj has a central bank and a mandate to keep inflation low and how to stabilize currency so that will be and other policy requirement from the boj and i would expect action soon. paul: the oil price is easing down $95.95. are we in

this as we continue to see these boj operations in the jgb space. the jgb curve steepening despite the boj's amendment to cap yields, despite weakness against the yen, when it comes to rate differentials and u.s. dollar differentials as leading to more weakness. take a look at the kospi. we've seen already a session of losses for korean stocks and we continue to see the downside pressure with the tech heavy losing almost a percent. risk off sentiment has been soft across the korean markets, but we are watching for reopening trades because we may be seeing more buyer's restrictions being eased across the country. haidi: this at a time when we see shanghai under lockdown. we see potentially a new subvariant being identified in china. all of this will have an impact on a lot of these markets that rely on chinese growth. this is what we are seeing when it comes to trading in sydney. out of the gate, and downside from today's of losses in australia. we are also seeing a 10 year yield holding pretty steady. we have a move of about four basis points higher

so the boj may be wrong to do that. as far as the current situation, the production side, the labor is not so significant in comparison with the u.s. so i think still reaching to 2% level of inflation is not solely the -- i think that is quite a differentiation of the u.s. haslinda: governor kuroda has emphasized time and time again he will stick with the yield curve control. do you see perhaps a shift in the framework before his term ends? hiroshi: well, monetary policy will not already be decided. so i think some continuation will be expected to that. but the ycc is somewhat losing the market to that. the purchase of the 10 year is somewhat limited at this moment. and if the movement over the long term, the interest rate, as the u.s. is going to move. in that case they would be some movement even in the japanese market. so in this case i think even under the scheme of the ycc, boj would widen some of the movements in the 10 year maturity bond or they are going to put some target from the 10 year bond down to the five-

it's pretty far from the 2% target that the boj would like to achieve. kathleen: at one point the imf did a report about targeting five year yields, some people think this will change once the governor term is up and someone replaces him, is yield curve control something important to maintain? ranil: it is, as part of the unconventional monetary policy strategy. globally, we have seen quantitative easing and has been there for a long time. the reason they use yield curve control was actually to have relatively low yields across the yield curve. that is why we think it's necessary for japan to maintain some form of control. kathleen: no plans of changing it. certainly not now. i'm going to send it back to the new york studio, so we can let this all sink in. we just heard some interesting thoughts on japan and what we can and cannot expect in the future. haidi: the intervention, watching for anymore verbal remarks or market intervention from japan. let's take a look at fx, and of course we have been talking at length about the yen, 130 interview, it feels

david: ok, that's your big take for today, the boj, etf's, and what are they going to do with it? right, we are going to take us straight live to some live pictures. president xi jinping delivering a speech at the ceremony -- well , that was not him. he is about to, of course, deliver this speech at the ceremony to honor those that have made outstanding contributions to the 2020 to beijing winter olympics. there he is, the chinese president. i imagine they are probably singing the national anthem. we cannot hear, but that's just my idea. let's get over now to su keenan who is in new york with your first word news. sue: we start with fred -- fed president james bullard, who favors raising rates sharply to take the main policy rate to between 3% and 3.25% in the second half of the year. last month, the fomc raised its benchmark rate 25 basis points. bullard was the loan center, favoring a half-point increase. inflation has triggered mass unrest in recent days. the central bank lifted its key rate half a percentage point to 4.5% for a ninth straight hike. policymaker jobs are being c

jon: the boj can hold the line. ultimately, soros came up with -- struck and miller came up with a trade saying put it on its side. this is not about them fixing the market. you have the central bank that tries to fix the trade and someone in the market saying guess what, i will be brave enough to put on a bet and say i don't think they can. tom: i think an evening broadcast seem to veil and from tokyo works. i think it is warranted. the imperial hotel, the bar that is the original frank lloyd wright, i see a remote there. jon: we might not get out of the country. futures up 1.4% on the s&p. on the nasdaq up 2%. from new york for our audience worldwide with tom keene, lisa abramowicz, and jonathan ferro, this is bloomberg. ♪ >> keeping you up today with news from around the world with the first word, i lisa matteo. president biden plans to deliver remarks for ukraine coming as his administration looks at then congress proposal for weapons and humanitarian aid for ukraine that would last through september. a propos

haslinda: so you speak about the boj, what are your own exit rotations? neeraj: not a lot in this meeting. even though inflation is starting to get closer to the target, and a lot of it is supply-side constraints. so i do not expect a lot in the coming meeting, but over time, i think the boj will have to start looking at not normalization, but some weeks in the policy around income control. especially given what is happening with the dollar yen. haslinda: very quickly, one 30 before thursday? neeraj: i think there is a reasonable chance. haslinda: neeraj from blackrock crude plenty more ahead. keep it with us. this is bloomberg. ♪ yvonne: emmanuel macron has one against far right leader marine le pen and the french presidential election. taking a look at what we are expecting as the european session is opening a few hours from now. we are blue -- joined by bloomberg coanchor rishaad salamat it. how big of a relief do you think this is? rishaad: it has been seen as another brexit moment if le pen was not able to turn the tables on emmanuel macron. if he

we will see if any change happens next week with the boj. here is the glimpse of where the yen is looking like. aussie-yen at 95.5. morgan stanley saying that coordinated yen intervention is unlikely as well. plenty more to come. this is bloomberg. ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ ♪ >> from the heart of where innovation, money, and power collide in silicon valley and beyond, this is "bloomberg technology" with emily chang. emily: i am emily chang in san francisco, and this is bloomberg technology. coming up in the next hour, the first major u.s. carmakers report third-quarter results, and tesla don't disappoint. how the company's handling supply issues rising costs, and , production delays while

of is a come this would not have been done at the boj. the finance ministry and the prime minister i assume were on board. they want to manage it. one thing is clear, the week yen is not going to stop the governor from maintaining stimulus. he is not going to follow the ecb and the fed. right now, everyone is on the bearish yen side of the boat for many good reasons. how far does this go? when did the bears get so tired of selling that they start to fund the bottom? don't know but these are the kinds of things you have to watch and currency markets in addition for the potential for some intervention however ineffective or short-term that may be. >> that was kathleen hays. we have numbers coming through from dbs group. first quarter net income coming in above expectations. interestingly the net income missing expectations at 2.1 billion. analysts were in -- expecting earnings to come in stronger. they are saying they do not see a material impact from the china lock down. also talking about the conducting of stress tests on vulnerable areas

dollar buying after the boj policy. that actually sent the other currencies much lower and the aussie rebounding from a month-to-month low, as the dollar index is now at a 20 year high. let's get analysis with sean callow, westpac. we talk about the dollar index high, how much of this has to do with the weaknesses of other currencies like the yuan, the yen and the euro? sean: it's a combination of factors. certainly there has been localized weakness, as you say. the yuan come a very sudden move over the past several weeks after extended periods of stability. volatility picking up but it seems china is reaching the point where trade between gains wouldn't go much further. the euro has specific weaknesses on the energy side. the hint is that is going to be to growth. wars on its doorstep, so that might be weak for a while. for the euro, the only surprises really what took so long to get going on the downside? why haven't we seen any real rally since were broke out? the -- of the move is very dramatic. the bank of japan --

the reason to bring it up, the boj is back at the table. in eight days, there is a decision, it will be interesting if and how the even approach any potential change. maybe bring it up to curve. simply alleviate the dollar pressure here. manus: what about the yuan? i've been looking at that since the start of the year. you have the dollar rising, it is under pressure. differentials have been the alpha. we have a major growth differential period what did they do today that signals a shift? >> the daily fix was for a second day. it was a weaker fix yesterday. we woke up with a strong dollar. we had another weaker fix. that sent the dollar offshore and onshore. both the ones above -- level. this is an economy that will challenge it. this may be one of the tools that they are using to simply reflect what they are seeing. maybe on the stronger side given the change in fundamentals in the lockdown tier. at the end of the day, asia is doing well, with the exception of china. there are still some heavy risk creeping in to these assets. dani: right

the bank of japan, what was amazing about the boj today was what happened after the boj did what it did. the boj has come out and said we are doubling down and said i want to cap interest rates. we will come in every single business day and by an unlimited amount of bonds to make that happen. and if is the ministry of finance says we don't like what is happening in the foreign exchange market. we are deeply concerned about the weakness. you can't have both. something has got to give here. so it is either the currency or yield curve control. tom: again with the set of interviews we've had, thank, particularly steve inlander -- steve inland -- steve englander of standard chartered. i'm looking at brent crude, $104 $.71. they scream higher oil. jonathan: futures up by 1.8%, 1.9% higher, returning to growth and deeply depressed expectations relative to where the stock was trading. on to later, we got earnings from amazon and apple after the close. tom: as jon mentions, the european central bank from ireland, philip lane the academic will be with us, chief economist for the ecb. that will be

again, the rate differential between the boj and fed being underscored. natural gas prices in the states shooting up yesterday. francine: let's look at some of the sectors on the move. not everything is working for me today, but i do see energy is one of the only gainers we have in terms of industry groups. two industry group seeing gains, energy and basic resources. that is also dollar dynamic as we look at what is going on with grain in ukraine. all other sectors on the downside. the biggest losers, auto parts down. health care under pressure. construction. i could go on but it's not looking pretty when it comes to equity stocks in general. tom: individual companies. this is on the back of the copper story disruptions out of peru. the price shot up. two major mines in the country that have essentially closed off output because of disruptions. this is in the first few seconds of the session. a possible move for bpm's insurance business. the french reassurance company is lower by 1.5%. its earnings being hit for exposure to what is happening in ukraine an

in between you have the boj which is very dovish, very patient. you have australia which has links to china and then also hiking their own pit in between a lot of big plays by the major central banks and volatility expected in fx. haslinda: of course everyone is looking at china in terms of direction. take a look at the yuan. is it a reflection of a weakness in the economy? gareth: leigh one is interesting because there are a lot of dynamics in play. it is highlighting the economy has been weak for some time. we have been calling for it since august. the important thing for market is when governments will step in and we think we are there. it is highlighted the easiest required. markets do not believe enough has been done it so they are going to have to step it up but we think they will. haslinda: when you look at asset classes we have seen how stocks have been smacked, bonds have been smacked, but commodities have done so well your today. does it perhaps time for them to take a breather? gareth: you are right. still i commodities over equities an

we are watching dollar-again as the boj kicks off its policy meeting. no change expected it its policy settings overall, but we have seen remarkable an fast weakness in the yen in the past few weeks, but holding pretty steady right now, 127 to the dollar. shery: the flight to safety continues. we have u.s. treasuries rallying, the 10-year yield falling towards the two .70 level. we continue to see the bearish sentiment spreading across futures. futures are peering back the losses. they had fallen as much as 0.5%, this after the s&p 500 already filed to a six-week low in the session. the nasdaq 100 falling to its lowest level in almost one year. we are seeing the gains evaporating for the wti in the asian session, we had a bit of a boost in the new york session, on expectations that policy demand will be there, china saying they will support the economy. but we continue to see softness. texas instruments, we had seen the disappointing forecast really been found across markets as there are fears that we are seeing a peak in a semiconductor demand. microso

what would the impact be if the boj decided to unwind its purchases? >> that will bring huge questions markets of the market would not only drop by more than 5% of volatility would go up. the market has been so dependent on bank of japan, for instance, if it drops more than 2%, in the afternoon session, as we saw yesterday, bank of japan bought ¥70 billion. it is estimated the bank of japan has roughly 20% market share on the market. we are talking about 1.2 trillion u.s. dollars. there will be a domino effect of what would happen if they unwind from institutional to retail investors, it would have global impact. dani: i wonder when we have to start preparing for changes in policy, gearing up for things like this. we have annexed boj officials saying the central bank is likely to address policy as soon as july. what more do we know? manus: the central banks -- >> the central banks could continue to increase bond purchase, stimulate the market artificially, the dj -- hf caps they currently have, we have a ¥12 trillion annual target. yesterday was the

it seems that the boj is ok with it yen at these levels. they are more about trying to buy the unlimited amount of bonds, every single business day as they take that ceiling on government debt. we been expecting the nikkei to rise on the back of that yen and in terms of what it means for the overall japanese economy, saying a lot of the brokerages and companies in japan. manus: it's a race to the bottom between the yuan and the yen. good to see you, juliette saly in sydney. warning companies not to bend to moscow's demand to pay for gas in rubles. a bloomberg news exclusive suggesting they have set up deals with their clients. maria, how do we square these two things away? it's about economic survival versus politics. maria: if you look at yesterday, the head of the european commission was clear this would be a breach of sanctions but the conversion into rubles would be in breach of european sanctions. we know that at least 10 companies have already set up double accounts. gazprom bank has not been sanctioned and does connect to the swift,

the boj is decidedly not, becoming even more supportive in the bond market. dollar-yen at 1.22. what is your best guesstimate on the trajectory, given the bank of japan being really committed to easing policy? stephen: easing policy and at the moment, inflation is not a significant problem in japan and that is certainly the way the boj has behaved. rather than position for a massive breakout of the 125 level in dollar-yen, our preference would be to continue to buy the dip. down toward the low one 20's, positioning a move to 124, looking at the pretty tight relationship between dollar-yen and the usd five-year rate. not a bad relationship to be looking at, but you are right, for the moment, the boj is in a position to defend the upper end of its target range for the 10 year and we think that is what it will continue to do. it looks like japanese officials have put 125 as a line in the stand -- in the sand for the time being. jonathan: stephen gallo of b mo. the ecb, next week, just around the corner. that is going to be an interesting meeting for sure, given the recent data and

that is why we got this weird tension between the ministry of finance and the boj the boj is reiterating its stance on super low interest rates while the ministry of finance is saying we may need to do something about this. how does that gets resolved? vincent: that is an internal situation in japan that has happened in the past. generally speaking, it is a conflict that really doesn't resolve because there's no middle ground in that situation, when you have a central bank saying we need to pick up inflation, we have been dealing this for close to 40 years, and the minister of finance saying it is her pain -- it is hurting the japanese consumer. we may need to see intervention. kailey: on the subject of intervention, that is not some thing we have seen since 1998, and when that happened, the u.s. had a part to play in that as well. where you put the odds right now of intervention in this scenario in 2022? vincent: i don't think you will see a coordinated g20 effort to slow the weakness down. when one single country tries to control their currency, historically it does not work. you need

the boj said it would take the necessary steps to keep the long-term rate below its target level. >>> japan's industrial output in february rose for the first time in three months. the industry ministry says the output index rose by 0.1%. growth in the vehicles and transportation industry contributed to the rise. they surveyed manufacturers. the responses indicate a 3.6% increase in output for march and a 9.6% gain in april. >>> a key measure of manufacturing in china fell in march due to a resurgence of coronavirus cases and the war in ukraine. it was below the 50 point mark, separating growth from contraction for the first time in five months. the national bureau of statistics says the purchasing managers index stood at 49.5, down .7 of a percent from february. based on a survey of 3,000 manufacturers. the bureau says the spike in coronavirus infections forced some factories to suspend output. some saw a drop in orders for exports on the back of the crane situation. higher material prices worldwide were another reason. the non-manufacturing sector was 48.4. some restaurants and hote

it is already attracting intervention by the finance minister, boj officials. you have to see it in context in the sense that the yen slide has been phenomenal, down more than 10% against the dollar in four months. it also depends on what kind of intervention that could come about to truly work to boost the yen. commonwealth bank of australia has said there intervention is likely to fail without full support from the u.s., for example. others are saying if there is intervention by japanese authorities, it is likely to come this month. all eyes on this and what intervention could come about, but that is definitely expected. yvonne: i remember the morgan stanley call saying, don't even look for a coordinated intervention because the rest of the world is trying to fight inflation right now. what are people saying about where the yen can go in this environment? do you think 1.30 is still a base case -- 130 is still a base case? >> that is the question everyone has to answer. no one is willing to put a line in the sand just yet. if there is intervention, 130 is a vi

the boj appears unlikely at the moment to do an unlimited debt patch today. is it just a matter of time before it is forced to do it, given the rise in global yields? david: it appears that way. so far it has not done anything. 10 year yields have ticked up one basis point but when they intervened last time it was at .25, so it is up a threshold. i think the market is waiting for the yield to push up that high. they have not done it so far today but is it just a matter of time? the key is what happens to u.s. 10 year yields. because they tend to drag everything with it and in reaction to that i think the fmc minutes will be key because markets will be looking for any more information on this bond balance sheet reduction plan and how large it could be. obviously the larger the reduction the more pressure on yields it will put on u.s. yields and that will more likely drag japanese yields higher. there is a chance you'll see more intervention by boj at least before the month is through. rishaad: we often talked about 60/40 in portfolio with stocks and bonds, res

remember, we had seen the boj's unprecedented jgb purchase operations last week. that has led to more weakness in the japanese yen. now governor kuroda is saying that the yen moves are somewhat rapid. his comments leading to that spike in the japanese currency. plenty more to come on "daybreak: asia." this is bloomberg. ♪ haidi: elon musk was asked on twitter, do you want an edit action. this has been a hot button topic among twitter users, most of which have asked for an edit button to be able to correct their tweets. we are seeing about 23,000 votes cast, 79% voting yes, 21% voting no. elon musk taking that passive stake in twitter belies the influence of his name when it comes to his stake in twitter, not so much when it comes to his influence. twitter stocks surging the most since the ipo, on the back of musk announcing that 9.2% stake by failing his 13g there. we know that elon musk is not the type to stay passive when it comes to his opinions. he is putting it out to the followers, "do you want an edit button?" so [laughter] watch this space. a quick check

the boj sticking firmly to its easing policy. the two year -- the 10 year, i should say, 2.76. that came off after investors digested the cpi print. brent in focus, currently down by about 0.2%. rallying strongly above $100 a barrel. the excitement in the fx markets, i know mark cudmore is very focused on the fx markets. also the conflict is on the cpi print. mark: absolutely. as i was saying, fx markets are coming to life and that is what we are seeing on the monetary policy side. that tightens the inflation print. we saw extremely hot inflation from the u.k. a moment ago. i want to go back to the first comment that lead the show today. the u.s. cpi at a 40 year high. it is a consensus that it is going to peek in this quarter in the u.s. it is not the definite thing, but the markets think it will probably peek in the next meeting or two. the question is how quickly it comes down from there and that is where there is a wide debate. i am in the camp that inflation will be more stickier than people think. i think that central banks are still underestimating the inflation problem

led to more weakness on the yen as the boj tries to cap yields. we have seen reports saying perhaps the finance minister has spoken to janet yellen about coordinating fx intervention but he is now denying reports that that is untrue. we have not seen them do that, given the weakness, it's been a key question. paul: let's get a quick check of the latest business flash headlines. credit suisse is considering a management overhaul. the ceo is struggling to turn around the bank after a series of scandals. bloomberg has learned they may replace long-standing executives including its top lawyer, cfo and heads of the asia-pacific region. barclays saw a surge in emerging markets trading, declining to $644 million in volatility. sources say the banks traders cast in russia and ukrainian credit default swaps. cathay pacific attempts a rebound from covid-19. starting in june, as many as three daily services after hong kong says it will open to nonresidents in may. before the pandemic, -- shery: up next, a preview of what to expect in china and hong kong as c

the boj is contrast to other central bank. the central bank at the same time raised its inflation forecast for fiscal 2022. a surge for energy and other materials, its outlook seize the consumer price endeclaration of independence. this will put the rate very close. the banks monetary easing measure has been aimed at achieving that goal. the policymakers warned that current price rises could weigh on household incomes. >>> facebook operator, posted its slowest platform. the conflict in ukraine weighed on the social media giant. meta says sales in january to march period were almost $28 billion. that's up about 6% from a year earlier. the slow growth is attribut attributed -- the company was also affected byrussia's decision to cut-off access to ukraine.net profit was roughly $7.5 billion. it was down 21% year on year. meta has been spending heavily. the company's share still rose. investors trying to find a positive strong growth and daily users. meta focuses on the next quarter. the global semiconductor shortage and supply ch

the boj is dovish, ecb is on the fence. i don't think it will change very much what the fed does. i don't see the impact on u.s. inflation or global growth is that strong. the yen weakness is probably reflecting chinese economic weakness. the governor's insistence that they can continue this same policy with japanese rates drifting further away from everyone else. tom: it is such an artificiality, particularly with the phrase of buying their own paper. the standard chartered view on this, is japan summing that will amend in a malleable way to the shocks of yen, and this experiment of ycc, or do you worried that something could snap? steven: we are excited about the continuation of ycc under current circumstances. we don't see a huge benefit to japan with a weaker yen. in a world where growth is limited by supply, having a weaker currency does not really increase your ability to provide more. you just pay more for imports. in the case of japan, they wanted to get there inflation up for many years, a decade or more. the problem is they want to get domestic inflation up, not make the

mark: yes, francine, obviously the boj taking back. that is of major move in dollar-yen. it is all over the tech's of the move in yen has opened up broad dollar weakness. while the dollar yen is a big move, the dollar you on move is as comparable if not bigger on the day -- dollar yuan. when the yuan trend changes a bit changes for the long term. it actually has higher correlation than the 2012 currency. it trends more than any other currency. you can see that if you look through july 2005, in the last 17 years, there was one big trend of depreciation, when a false, that we've got the depreciation, when trump became present, we thought you on appreciation again -- yuan depreciation. since the pandemic, appreciation again. now we start this near vertical you -- move. i think seven is in play for dollar you on later this year. >> seven nameplate, keep an eye on that. our managing editor mark cudmore. let's get in so some of the other key markets. let's start with this strength we are seeing in the greenback. my comes to equity, there is no alternative. the greenback -- fran

tom: thierry wizman, the challenges for the boj. next week, the challenges for this federal reserve. tom: the federal reserve will be radically different, for the american audience focused on the original meeting. can we assume it will be a 50 bps move? jonathan: at this point, i think we can. tom: we will talk about arthur burns, greenspan, but it is a walk in the park compared to the way you saw professor lane walk around the niceties that he and christine lagarde have to deal with. i would assume -- she said they are data dependent -- that the germans will be apoplectic over the duration of 7% inflation. jonathan: their projections will be interesting. he mentioned that given the weaker euro. we wind down qe in q3, and then what? tom: how do you do an x axis with a major war going on? jonathan: it's an expensive way of saying some of this stuff is transitory or not. do they have the luxury of waiting? look at where inflation is and where it was? what have they done with policy? tom: they were transitory. jonathan: futures done 1%

it is still far away from the boj to percent inflation target. goldman sachs saying this might not be important anymore because the boj wants to continue with the framework and catalyst as change for monetary policy. even if it touches the 2% inflation target. household feelings of inflation are more important at this point. haidi: it doesn't really change the broader narrative when it comes to price pressures long-term japan. considering the demographic and growth concerns. of course, we will watch out for that. take a look at what we are seeing when it comes to the fx side of things. whether we are seeing the dollar in overboard territory. a lot of analysts are saying it is beyond the failing volatility we are starting to see at the moment. this as we see the war in ukraine raging on. big geopolitical shifts and the slowing pace of growth as well as sharp pace of fed tightening that is expected. this is why we are seeing so much pairings as well. take a look at the aussie, a little bit of weakness. dollar-yen always in focus as we continue to w

the last time the boj intervened was back in 1998, when you had dollar-yen hit 148. then steepness in 20 -- in 2002 where it hit 145. the issue was do you intervene once again? there are two sides to the trait, the dollar side and the yen side. any move has to come with the cooperation of the united states. do you see it again in 2022? tom: greatly appreciate that. a lot of talk of the round number of 130, we are not there yet. to our conversation with the gentleman with a masters in business podcasts, too much going on. barry ritholtz. through the lisa abramowicz dartboard we came up with, netflix. they are -- there are 54 opinions on netflix. why do we need 54 opinions on any given stock? barry: if you want to do syndicate business or secondaries or underwriting, you need somebody to sell that stuff. if you are an investor, those opinions are pretty meaningless, and i think as we all watched the downgrades earlier this week , netflix from their october highs was down 50% before this week. they fell another 27%. that is when the downgrades happened. down 70%? you th

the boj has a difficult question to answer. they can hold their yield curve control peg at 25 basis points to the currency go, or they can let the peg go and defend the currency. they cannot do both at the same time. we are getting close to the point where they will have to think more about their currency than the yield curve bank. jonathan: should people -- lisa: should people be paying more attention to japanese monetary policy considering the japanese investor owns even more treasuries than any other external investor? jim: they should. as their currency goes come interest-rate, that will maintain its relative attractiveness of the u.s. treasury market. shouldn't they let the peg go in interest rates rise a lot in japan, and we saw that last fall when australia abandoned yield curve control, a lot of those investors buying treasury securities -- 1.3 trillion -- may find attractive yields in japan for the first time in a generation, and that will lessen the demand for treasuries at a time when the fed is leaving the market, w

the boj is expected to keep their policy settings and changed, even as we have seen the rapid weakening in the yen for the two decade low. there is a possible adjustment to policy or messaging. but negative interest rate and asset purchase program is expected to be maintained. when it comes to fx, we are watching the risk currencies, the aussie and the kiwi seeing a downside. the bond yield for three years in austria is seeing a hold. it is really this concern about whether there will be a policy, staff and what that means for the economic outlook. shery: we have to see the markets, to really feel the pessimism that is felt across. we have deutsche bank now seeing the fed funds target rate at 5% to 6%. really calling for a deep recession to come by next year. and we already saw u.s. treasuries rallying, the 2-year yield plunging 50 basis point, despite the fact that we have strong demand from the action of the note. we are now seeing this pessimism with potentially more aggressive monetary tightening, the west since the 1980's or so, deutsche bank saying that price psychology will not h

we might see those boj operations. shery: we did of course see a reasonable amount of selling for u.s. stocks in the monthly session. the dow off by more than 1%. the nasdaq off by 2.1%. futures indicate that perhaps a modest turnaround when trading resumes on tuesday. nasdaq futures pointing higher by .1% so a modest snapback perhaps in the offering after the heavy selling we saw today. in this part of the world, we had the one market trading at the moment. the nzx off by a fifth of 1%. also futures pointing to a slightly weaker open when we get going about one hours time, off by .25% there. we will be keeping an eye on pandle when trading does begin in australia. we got some more news from the company, now going to offer a share buyback of 100 million australian dollars to be funded by cash reserves and financial assets. earlier, pandal said it would knock back and indicative takeover proposal from perpetual. perpetual valued pandal at six dollars 23 -- six dollars when a three cents australian. now on -- six dollars

boj conducting a bond buying operation after reaching the upper level of tolerance. treasury yields are falling but jgb yields also falling. we are watching korea with the kospi gaining 4/10 of 1%. this as we continue seeing the korean won week against the u.s. dollar, and the three year yield hovering around the decade hyatt reached last week. less pressure when it comes to korean bond yields given that treasury yields are down. watching export and import numbers for the first 20 days of the month. year on year exports running 16.9%. imports, 25.5% risk -- rising. the deficit for the first 20 days of the month coming in at more than $5 billion. expert -- exports from the u.s. rising. china exports rising less than 2%. we will have more on south korea with martin kaufman giving his outlook for the country after leadership change. we will have a new president in south korea and we will discuss this shortly. haidi: a lot to talk about including global inflation concerns, one thing we are seeing in this part of the world's wealth. australia is just coming online. sidney

shery: are we going to see more verbal intervention coming from japanese government and boj itself? ruth: definitely that is the view of the market. we saw bank of japan wanting for that yen -- every minute you are seeing a bank of japan official coming out to voice their concern about the effect on the yen, saying it can be negative. but markets are willing to really test their resolve here and try to see some of the intervention purely because of the divergence play. the market versus the central bank here. shery: so much has been priced in and the market around the fed tightening and also inflation that our next guest says it could lead to the dollar stumbling. that's the view from an emerging market strategist who joins us now. always great to have you with us . when it comes to the rate sensitivity we are seeing around the dollar-yen come what are your views given that a lot of it could have already been priced in? >> that's right. we do think a lot is in the price but that said, each day, we seem to be seeing more aggressive fed comments and the latest overnight was from the f

then you have the boj doesn't want any part of this timing effort. how sustainable do you think that is? >> the bank of japan, in china they have low inflation and a growth picture that they want to boost if anything. the bank of japan is fighting to maintain 25 basis point ceiling and they are looking like they have a hard time tapping the yield at 25 basis points. i'm not sure how that is going to play out, but i would think the odds are in their favor. in europe, it's going to depend on whether the energy supplies get cut off or not or if they shut off the purchases of gas from russia. that happens during stagflation immediately in europe and that is going to change their calculus. if energy keeps coming into europe, they may have a good ongoing growth and they may be in a situation that is not that different from the fed in the sense that inflation is well over target. the growth pictures may end up moving. jonathan: coming up, the auction block up next the big banks driving issuance. that conversation up next. ♪ jonathan: it's time for the auc

now, what that all means is that boj governor will inevitably come under the spotlight. >>> now, in the u.s., the same day we'll see apple announce its financial results for the january to march period. it booked a record net profit in the last three months of 2021. up 20% from a year earlier. withchina's so-called zero-covid policy putting the supply chain at risk, how that affects apple's sales is sure to attract user attention. >>> now, the world's number one currency block will report on their economic growth later in the week. officials of the u.s. commerce department will release on thursday an advanced estimate of gdp growth. 2021 exceeded economists' expectations, but the u.s. economy is experiencing record inflation due to supply chain disruption and labor shortages. it's expected to slow this year as monetary policy continues to tighten. the next day, the european's office will also release an estimate for the january to march quarter. in the final three months of 2021, it grew 0.3% compared to the previous quarter. it returned to the previous level. output contractions in ger

boj officials expect inflationary pressure to persist longer than previously thought. they also announced they were tightening policy. the m.a.s. manages policy through exchange rate settings rather than interest rates. officials decided to allow the singapore dollar to strengthen to curb price hikes of imported goods. the central bank in canadas are announced a rate hike on wednesday. its key rate was increased by half a percentage point, the biggest single move in more than two decades. >>> more than 20 auto makers from around the world are about to hoe ca to showcase their latest models. the spotlight for many is on new electric vehicles. the show opens on trioffriday, skipping two years because of the pandemic. u.s. auto makers and ford will display their new pickups. >> everything has really evolved in a, amazingly. so, in two years, the amount of model vehicles that are for sale in dealerships by manufacturers is really a marvel to see. >> the new york office of the japan external trade organization says the three months through march saw new car sales in the u.s

the boj i had to help the economy out of a deflationary trend. deflationary psychology as he calls it and move it onto a growth path. so they started that, they bought etf's. a lot of people were wondering. i think everybody would agree it helped the topics. as a matter of fact, the topics and in 2013, it had about a 51% gain and the nikkei has had the best year since 1972. beyond that though, the economy continued to struggle. the boj struggle to get toward the 2% inflation target that they have never met definitively. and so, in 2016, a doubled etf purchases and for february to march of 2020, in the pandemic, they boosted purchases by 165%. so they are doing everything they can, but they still cannot beat the 2% target. haidi: stimulus policy there in focus. this is of course as we continue with that policy divergence. bloomberg's global economics and policy editor kathleen hays there. let's take a look at some of the stuff we are watching as trade gets underway in sydney. asia in focus. after the eu halts imports from russia. this is a move ta

it's been pretty range bound since the boj's aggressive monetary easing. we are watching jgb yields because they are now rising without broader treasury route that we saw on the new yield session. getting close to that level .226%. we saw the boj's aggressive monetary easing in order to cap yields just last week that led to more weakness for the japanese yen. right now we are seeing it above that .2% level again. take a look at the korean markets because the kospi in the cause? losing ground after rising for two consecutive sessions is really -- this week. the korean won continues to see weakness against the u.s. dollar after rising for a second session. we have seen inflation pressures accelerating and south korea and the bank of korea, warning that inflation is likely to stay and therefore percent range, which would be the highest in more than a decade. that be ok rate decision coming up next week. haidi: we are seeing downside when it comes to trading. so much of the markets have been a cloud of the central bank. hawkish and us with a pivot towards hawk