because markets expect that governor -- governor kuroda will go along. just last week a survey of economists saw 44 out of 45 saying no change. governor kuroda speaking department saying he still thinks the economy is good. it is a post-pandemic recovery. what will they do? there are market signs they could do something. beyond that, what you have to realize is the -- what the bank of japan does will be very influenced by conversations that may be happening behind the scenes in the government. now, no matter how much governor kuroda is protesting now and know how -- no matter how many bonds the bank of japan is buying in july of 2018 they were buying lots of bonds and that was the meeting the bank of japan it doubled the range for yield curve control. it is also true that every four months, every four meetings, excuse me, there are eight meetings every year and only four contained a monetary policy report and they can change their forecast. listen to the press conference. this is where we will get the guidance to see if governor kuroda is in anyway softe

you expect governor kuroda will deliver a surprise? >> i would be extremely surprised if the bank of japan moves today. i wholeheartedly endorse the view that policy is increasingly untenable where you have yields rising. what that policy is doing particularly to the yen and the volatility you talk about, if you go back 10 days to a speech governor kuroda gave he was so emphatic about the need to persist with existing policy until we see things like wage growth that will generate sustainably higher inflation around 2%. we are not there yet despite headline inflation. so, i think anything that does happen will be trying to create less volatility in the country. i don't think the levels are particularly troublesome here. we had consolidation given a high volatility environment. we have been saying since the beginning of the year we thought it would be the second half of the year. despite the last week or so, we have not changed that view. >> if they do brace themselves to write it out and hope it is on the supply side, what happens to th

this is one thing that is hitting kuroda hard. because his popularity in a recent poll fell pretty sharply. his unpopularity rose. he had to go to parliament twice for saying the japanese were more tolerant of the increasing prices. he had to apologize for that. you put it altogether, the weaker the yen gets, the more inflation rises, the more import cost rises to the japanese. that is one part of it. the other part, is the big diversions, getting even bigger. certainly with the federal reserve and other central banks hiking. they do not seem ready to move. if you look at this chart, when you look at the y cc yield, you look at the range, they changed it in 2018, it was the same situation in many ways where bond traders were selling bonds like crazy and ultimately the boj realize they did not need to keep it where it was. they basically doubled the range at that point. there was a big step. that is one reason traders are expecting it. the other thing is, a very specific one, because the fed is making this big rate hike does the un

kuroda addressing parliament after the yen hit that level this morning. there is sensitivity around the long-term deflationary atmosphere, but they do not like the inflation they are seeing right now and it is a sensitive time to be asking consumers and businesses to understand having to pay higher costs. very tricky conundrum the bank of japan is facing. dani: thank you so much, gearing us up for the fireworks that will be this week. michelle jamrisko. china is starting to reimpose curbs with concerns the country may employ strict lockdowns to control its covid outbreak. for more we are joined by michelle cortez. is that a fair way to view this, that this is a back step for china? >> it is absolutely a back step of what we are looking at right now. but it is not really a step into significantly higher curbs on covid. it is really sort of awaiting stage. we are in a plateau trying to figure out how hard china is going to go to get back down to zero cases. what we have seen at this point is once you get anyone out in the community that had an active infect

kuroda made the original remarks in a speech on monday. opposition lawmakers and social media posts called it out of touch. they say that kuroda was unaware of the impact of higher prices. >>> a company was launched to develop a digital platform in so-called smart cities. they are targeting cities. the companies say it can be used to operate self-driving buses and optimize customer track. the project offers tremendous growth potential that can be used anywhere in the world. >> any major city could be a candidate. we expect a very large market once the technology is developed. >> smart cities utilize cutting edge technology to make communities more energy efficient and improve quality of life. mistui and kddi have already worked together to predict the movement of people using data and ai technology. >>> inflation in russia remained high last month due to tough international sanctions imposed in response to the country's invasion of ukraine. on wednesday, the consumer price index in may rose 17.1% from a year earlier. food prices surged 20%

will governor kuroda be able to calm the market down. his conference after the boj's meetingill be infocus. i am yanaka marie, repting from the tokyo stock exchange. >>> boj officials started their two-day meeting on thursday, they continue to monitor easing has been in stark contrast. kuroda repeated that he'll stay in the course to boost japan's economy. >>> the rise in shipment and steels and semiconductor. energy prices are stuck at a high level due to russia's inflation. >>> tokyo is that appears on the tail of the a airlin airliner, zipair, it will replace the design from saturday. company officials say they took into the account that the letter z appears on the russian military vehicle used in the ukraine conflict. japan airline established zipair four years ago. it flies five routes. the rest to the united states. carriers scheduled to launch the service to san jose in the u.s. and california in december. ♪ >>> nearly 20,000 children throughout children are in need of regular medical care due to intractible diseases and other c

shery: and pressure on kuroda regarding the yen slight. u.s. futures rebounding at the opening of the asian session. up zero point 3% after the s&p 500 already fell 22% plunging into the bear market. the nasdaq 100 falling more than 4.5% and we have the vix fear index about that. the curve in birding signaling the traders are concerned about the uncertainty more than they were. we had the safe haven trade pushing the dollar higher. it is all about what is happening in the treasuries space because the yields continue to climb. we are talking about two-year yields. you can see what is happening. you see the two days selloff on the two-year similar to what we saw in the collapse of lehman brothers. watching that closely. the 10 year yield also watching that. we are close to the curve in birding again. -- inverting again. and we are seeing the cost of hedging. investment grade debt surging to a high. there is a lot of anxiety in the markets. >> you just said it. recession warnings setting as out for the trading session in asia. new zealand coming o

governor kuroda has testified to parliament around this. but the bottom-line for the boj appointed to people who are familiar with the way they are thinking right now is they do not want to see the yen dropped to quickly but they are maintaining very weaker yen is going to help manufacturers, it will help exports out of the country because it makes them cheaper. when it comes to raising inflation, governor kuroda spurred a backlash recently when he said japanese consumers are getting more used cities price increases. on social media, people exploded they didn't like him characterizing it that way. the boj continues to believe the economy will get stronger and prices are going to raise more, maybe even wages in the second half of the year especially as they reopen up to tourists. but haslinda, we will hear more from governor kuroda and i am sure we will get questions in parliament when he testifies again later in tokyo. haslinda:. haslinda: is a big week for central banks across the world. kathleen hays in new york, thank you. it is a risk-o

we got a warning from the boj yesterday with governor kuroda saying a week yen is a negative for the economy. we saw a pullback from the 135 level and we are still watching it to hit 135 15. the weakness has been a weakness -- a boost. japan nikkei futures in chicago coining fractionally higher. you have to look at the last close. that was pointing to a selloff of 3.4%. in that context, not looking that great. new zealand and australia taking their cues from the moves we saw on wall street. shery: looking at u.s. futures, some positivity returning to the future space. after the s&p 500 fell 22% from the record high and trying bear market territory. nasdaq futures in ground but after the nasdaq 100 slumped 4.5% and the new york session. the vix trading above the 30 level. signaling perhaps -- right now, we are watching the judiciary yields closely. this is leading to the global bond selloff. we sought the 10-year gilts at the highest since 2011. relay the rest session signals continue to spread -- really, the recession signals continue to spread. they asian session under pressure but

if they were, they did not draw in kuroda, clearly. francine: that was an idea at the imf that we got together and need to present a clear message. kuroda is not playing ball if that was the case. tom: that seems like a plausible setup. five straight hikes from the boe. the market is wrestling with all of that currently. equities across the european space -- and in the u.s. we saw heavy losses yesterday particularly on the nasdaq. francine: coming up, we will talk more about the bank of england. he is the first official to talk after that monetary decision yesterday. he will join us at 10:30 a.m. london time to talk about the decision. tom: now, to travel chaos. gatwick airport has said it was scrap hundreds of flights over the peak summer period. as the aviation industry staffing crisis deepens. joining us now is sid philip. what do we know about the clear causes for the travel chaos we are seeing? how much of this is about the inability they have to get the staff they need? and why are they not better prepared? >> for the past two ye

we have heard from kuroda when the yen has fallen to a 24 year low. the 10 year getting to 25 basis points, will we see capitulation in the boj? >> we already seeing some kind of capitulation from the boj. just a few days ago, kuroda said -- this morning, the yen is dropping and having an adverse effect on the economy, he is calibrating his stance. knowing that the yen is falling at a greater velocity each time. in the fixed income markets we have seen that the 10 year jj be yield has gone past 25 basis points. that is the line in the sand for the boj. if it goes past that, the boj has a massive problem. they want to stampede the market with more bond purchases tomorrow. we've got a very interesting development in the case of japan. if the bank of japan doesn't come out and raise its rhetoric and show the markets that it means business on the yen, they will see it tank even more. tom: the challenges for the boj. ven ram walking us through the repricing in the fixed income market on this fight inflation print. coming up, crypto takes a beating as the l

tom: the two decimal points on yen, where does kuroda break? geoffrey: i will be cautious in my language by saying, we are 500 yen -- with eight 500 yen coin -- with a 500 yen coin, you can barely buy a bowl of ramen. tom: you are skirting general counsel debate. lisa, this is a huge deal. when you go out there as an investment house, particularly the japanese investment houses, and start pontificating about yen 140 or yen 150, there are internal pressures on that. lisa: especially at a time where they have to import so many goods. this is not the japanese economy they saw 20 years ago. what are they going to do in terms of allowing this to happen without giving traders a payday? without saying, you were right. how do they say face because they want to do it on their own terms? tom: it goes back to rationalizing banking japan, it took forever to get to that rationalization. off the top of my head, it took 12 years. it was difficult, to say the least. we have worked into a spacious market, 20 minutes away from claims. lisa: 20 minutes away from

kuroda. let's look at the broader markets, japanese assets also trading. >> those inflation numbers really set the stage for further easing from the bl j -- boj. looking at how that influences foreign investors in the market, there is concern that the difference between the boj and the fed could hurt corporate earnings. because of that, foreign investors moving away from japanese stocks, nearly $7 billion sold this month. that is the most since march 2020. some say the focus is on whether the u.s. economy can withstand outside rate hikes. let's pull up the other chart and look at which other markets in the region are feeling the pinch from this. south korea and taiwan could be the first victims of a u.s. recession scare. the reason is this index that they share in common that is highly correlated with moves we have seen in the u.s. market, also very tech heavy. in korea, similar to japan, a lot of foreign selling in the market. very happy today. justin 2022, we are looking at $11 billion leav

we are seeing kuroda talk about the yen, the weekends impact on households in japan, so you have investors in tokyo for example, others are saying 140, tank of america is one of them. it depends on who you talk to but intervention should not be taken off the table. david: what should i believe? >> the multimillion dollar question. how you trade, how do you make money? until there is a firm tone taken by the boj, how they are looking at the monetary policy. you can can send you to see pressure on the yen. david: euro-yen. 141. >> speaking with the head of trading earlier this morning who basically said the first thing i look at is cell yen orders whether is the aussie, euro or emerging markets. david: ruth carson. yvonne: pouring fuel. let's recap what we are hearing from hong kong. talking about the government, having internal meetings, we have seen cases rise to six-week cause, the line we continue to see is hong kong is going to be keeping covid measures unchanged until the end of june. rishaad: india is eager to take on discounted crude from russia. these are on top of existing shipment

beware the kuroda press conference. people seem to think there is always a chance they will change their policy. he keeps pushing back. all i said was we are keeping our altar easy monetary policy. we can have low rates and it can be altar easy. tom: daniel on the boj, looking ahead at the importance of that conference ahead of the boj. the latest moves, david, what are you looking at across all of the moves and which currencies are looking most honorable? >> everyone is vulnerable. it left every central bank open to sudden moves. the yen has definitely been a volatile one when you look at implied volatility. it has come off slightly after the boj risks being priced out. it remains elevated. you look at the one week level, markets are priced in, moving three points either way. even after that is priced out. moving forward to next week, we have jerome powell speaking. it will be a big driver for dollar-yen in the near term. dani: thank you very much. our fx and rates strategist in singapore. it's been a crazy week for ma

kuroda's comments that the boj is still looking at the reflationary pressures and especially when it has depreciated. they say it's not the target, but they are also too worried about the pressures on the wages and also the economic activities so they wouldn't change their minds. but i think it was good in 2013 and after the global financial crisis. but continuing that many elements, but i don't know what to do. never the elements of depreciation, and also the government bond is easy to issue and easy to finance too much debt with the government, and they are being lost and also the spread is smaller, so it is difficult. also, the market functions of long-term interest rates. so there are many, but i think it's good for the boj to change her. rishaad: there are many reforms in the japanese economy over the years, and we've got the prime minister out with a new capitalism and economic and financial management reforms. what do you think needs to be done? what would -- what would be on your agenda, top of your list? >> the japanese economy should take a vantage of income or profit. ther

there was a very defiant and governor kuroda saying that he is not going to cave into what is going on globally with central banks raising interest rates. so there is a lot of uncertainty there. that is a space that needs to be watched. shery: take a listen to what nouriel roubini had to say. more and more analysts and economists are seeing 144 a trigger in any change in boj policy. >> if you go well above 140, the boj will have to change the yield control curve. shery: the flipside is also where the dollar is headed. one analysts say we could see a 5% appreciation in the u.s. dollar if we continue to see financial conditions tightening because of the fed. andreea: we do. and i think what is happening with the u.s. dollar and currency markets, it is definitely providing some headwind for equities, and investors are watching that space very closely. certainly with asian markets as well, what is going on with the u.s. dollar always has a lot of impact on asian equities. so the foreign-exchange space is very important. and again, like with everything else, there is a lot of uncertainty st

may finally hit that 2% target again for inflation, and that would be music to the ears of governor kuroda. david: if you were long exporters, you have done very, very well. if look at the survey of large corporate's, and the assumption they are making is a nice, juicy, sort of one-off fx game -- again -- again -- gain. yvonne: you are starting to see a string of these companies pulling out of these planned bond sales. take a look at one that just joined recently because we have seen borrowing costs up. there is a sense that maybe that the boj may not be able to hold off on this kind of easing for longer and they are starting to pull back in the face of that. they have become a little more skeptical of that policy stance. you take a look and compare where japan is with the u.s. and europe, we are far short of what the rest of the world is looking at right now. rishaad: let's have a look now at some of the stories making first word headlines. the world bank cutting its global growth outlook due to surging prices and supply restrictions being triggered by the war in eastern europe. now expec

kuroda and the japanese financial system. maybe picking off dollar-yen, but the rate of change is enough to get laurence boone going. jonathan: what do you think they do in response? do they let go of a cap on a jgb? tom: i will defer to the late and fabulous martin feldstein, who was dismayed at the cultural slow-motion exercise when they cleared the banking system. why would this be any different? they have to clear out the zombies, they have to be efficient. i'm going to say this until i am blue in the face. this is not your father's yen a story. they have a trade deficit. they are getting crushed by import dynamics. jonathan: as lisa has said, i don't think we can even call some of the same market. dollar-yen right now, 1.93. jonathan: she is chief economist at oecd, laurence boone joins us now on a trip around the world. i'm going to be selfish and go to the growth recession you called for in the united states, where you have an ugly statistic, then the next year it gets uglier for the united states. take that out to a g

bank of japan kuroda is holding firm. the central bank kept its policy -- in a rare move, the bank added a reference to foreign exchange rates to its reference list following the yen beginning to a 20 year low earlier this week. global news 24 hours a day on air and at bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i'm ritika gupta. this is bloomberg. ♪ zero-commission trades for online u.s. stocks and etfs. and a commitment to get you the best price on every trade, which saved investors over $1.5 billion last year. that's decision tech. only from fidelity. >> i think the fed needs an exit ramp from this, because if they are going to hitch their wagon to energy prices, funds will go meaningfully higher, and we will push ourselves into sharper slowing then we need to have. jonathan: that is the fear. i think mike mckee got into it. that was tom porcelli from rbc capital markets. on the nasdaq 100, up a little more than 1%. yield higher by a couple basis points. energy

it is starting to become politically unpopular but for kuroda, that is in line with his goals. he wants this inflation to push wages higher. whether or not that pans out according to his goals remains to be seen but at the -- but it seems like things are going according to what he set out when he started this program. yvonne: is the bond market in japan still functional? >> there is a lot of volatility between the futures market and the bases you see. it seems the boj is unconcerned about being able to maintain this yield target for a 10 year jgb. as long as the boj things it continues doing the -- it seems like things will be ok for the bonds themselves. the futures market with the boj is not a factor, you will continue to see some volatility there. rishaad: i just want to get your thoughts on the euro, which took a bit of a beating given this election in france where we saw emmanuel macron a his majority. where does the euro go next and why? >> we think the euro could go a little bit weaker against the dollar. it is mostly a function of the fed. the ecb is talking about a pos

the senior portfolio manager is talking about the pressure growing on governor kuroda in the central bank to capitulate at some point. >> we still have duration markets in the short time. and i think it's important to fix this. i think the physical work price into the u.s. is approaching fair value, not asymmetric anymore, and we think the same thing in europe. we think yields move higher in the u.k. and in japan. we do think that they would be forced to capitulate at some point. we think that the second quarter would be a key determinant of that, and we would see inflationary expectations rising by the beginning of july. we are really more focused on the points at which the boj does that. depending on how hard it goes on wednesday, depending on what happens with the bank of england, the pressure is growing on corroded. i think he is facing political pressure. we sought over the weekend and last week that it's becoming a more concerned and more rhetoric around what has to be done to contain the session and what's happening with the yen. we think that point made will be coming forward