>> welcome to daybreak australia. annabelle: i am annabelle droulers in hong kong. we are counting down to asia's major trading opens. the top stories, bond traders cautiously reload wages on rate cuts with the fed and global peers looking set to begin reducing borrowing costs as soon june. the chinese premier downplaying concerns about debt and property risks as officials front lawn positive economic news to support markets. plus we assess the impact on the financial sector of the boj's first rate hike in 17 years amid questions about leaks under governor ueda. paul: all right. we have just opened for trade in australia so let's take a look at how we are doing. modestly positive at the moment but of course we have the staggered it is hard to get a beat on how we are going.

new zealand has been trading for a little while. currently a little softer to the tune of about .1%. suggesting we are setting up for a softer open. in australia we will get cpi numbers for the month of february. consumer confidence and retail sales as well. it will be a holiday shortened week. let's look at some movers on the asx at the moment. -- asx at the moment. performing reasonably well. materials up by about .10%. we are seeing the yields on the 10 year nudging back a little bit, holding above the 4% level. not a great deal of change for the aussie dollar. annabelle: we actually have u.s. futures opening here today fairly flat so far to start the week. thinking about the moves we had friday in the session, that

rally in stocks lost a little bit of traction. it was still the best week we have seen for u.s. equities over the course of 2024 and it comes down to the speculation we are continuing to see the fed will be cutting rates as soon as june. treasury yields slipped again back down to the 4.2% mark. the dollar we saw more strength coming into approaching its highest level this year. certainly that is something weighing on the commodities complex overall. dollar strength. but we see brent crude coming online this morning, just a little higher so far. what sets us out for the week ahead, we have the inflation gauge for the fed and you have japan releasing a slew of economic data. investors are really trying to figure out the boj's next move. central bank raised rates for the first time in 17 years. bloomberg economics think the tokyo core cpi reading probably eased this month but it could

still be above the 2% target set by the boj. over in china we also have industrial profits numbers that are due. a bounce in the first two months of 2024 following it a client we saw in 2023. in the u.s., the fed's preferred inflation gauge could edge higher on volatile transportation categories. very much the focus on the fed and what it means for market direction overall. paul: going to be a big week in china as well, particularly where earnings are concerned. we have major lenders include in the bank of china and icbc reporting results after maintaining their benchmark lending rates last week. and embattled property event developers -- property developers will also release earnings. the reports are going to shed light on the extent of china's property woes and its impact on the economy. let's discuss what catalysts there could be for markets after

a big week of central bank rate decisions. joining us now in sydney, henrietta, thank you so much for joining us, senior portfolio head at global investments. i want to start with all the central-bank action we had last week. it is all out of the way now. what is the catalyst going forward? henrietta: it was a big week last week in terms of central banks and it has been interesting to hear the comments. or just to see continuity as well in some cases. the surprise came from the swiss central bank. they were the first of the developed markets to go. so that was an interesting one and maybe explains some of the moves we got later in the week. so what are we going to be looking for going forward? we are going to be looking at what the central banks are looking at. continuation of the trends from an inflation perspective. i think that will be a really important one.

it has been a little bumpy particularly in the u.s., so we need to make sure the disinflation trend continues. they will be looking at the labor market as well and any data coming out of that. so far it has been strong, even in geographies were growth prospects are may be less exciting than what we are seeing in the u.s. and obviously growth is another aspect and any information we can gain there is going to be helpful. paul: how are you diversifying across these different interest rate environments? henrietta: that is the keyword, diversification. what we're seeing from a growth perspective is different outcomes shaping up in different geographies. u.s. being the standout, surprising everybody really, over the last few months. and we will have to cf -- to see if some of the more lackluster data coming out of europe changes, and keeping out on china.

slightly more complicated story there. if you look at the official numbers, they don't look particularly ambitious. but as you were just talking about, they are dealing with the property fallout and we need to see how that works out. so i think in that kind of context it helps to have diversification. because yes, we are expecting more from the central banks towards the summer. but there may be a bit of a timing difference there. annabelle: which part of the curve are you investing in? if you have global central banks it seems it they are sort of nsync, but they are not really nsync at the same time as well. we could see them cutting at different points this year. henrietta: yeah. i think the area would prefer is a shorter to more intermediate part of the curve. a couple reasons for that. it will be the area that is a bit more sensitive to rates cuts

a going forward. that is what we would like to have. also we are benefiting from higher yields in certain areas as well. so as we look toward steepening and rate cuts, we think that is an interesting part of the curve. if you look at the treasury curve, for instance, you have some money supply questions that come into play on the longer end. hence a bit more cautious there. annabelle: what about from a spread perspective given pricing at this point? how are you selecting different securities and what are the metrics you are following there? henrietta: you have had a very supportive environment for risk assets. just look at the stock markets year to date to get a feel for that. and we have seen something similar on the spread side. we have seen some spread tightening's at the beginning of the year. pretty much across the boards. we think it is fair given it is

reflecting quite a benign economic environment. that is something we take into account. and at this point security selection is key. and we are tending to have -- as we get a little less dispersion across the credit markets. paul: i just want to return to an observation you made about the u.s., being a little bit surprising. you said just now the environment is a little benign. in the u.s. we have growth looking strong, inflation still above what the fed would like but it is trending down. does the u.s. actually look like a market that needs stimulation and using? could we see more repricing? henrietta: it is absolutely improving from a growth perspective. but we are at levels on the short end that are pretty restrictive.

it really handles inflation coming down. you could have this growth environment that continues, but the rates environment needs to reflect what is going on from inflation perspective and you need to keep and i out on real yields. real yields are positive on the rates side. paul: i want to wrap up on what we heard from the boj last week. it was a momentous move. but slow seems to be the watch word for the bank of japan at the moment. what do you see as being the next move and when will it happen in terms of the next change to rates and the unwinding of that enormous balance sheet? henrietta: absolutely, it has taken seven years to get to last week. that is a big deal. and they are the last ones to move in that sense. and they are moving when other central banks are shifting to cuts. so they are on the other side of the spectrum.

i think the question for the bank of japan is really, have they started to -- they are in a different situation than other central banks because of their size and balance sheet. those are two considerations when looking at their next actions. i think they have to be slow. given the structure there. it's going to be a bit of a race against the data, particularly if you get a continuation of the disinflation trend going forward. probably on balance rate hikes are easier to do than the quantitative tightening piece. and so we will have to see how that plays out. but those are things we are looking at in the moment in the context of the boj. annabelle: that was henrietta pacqeument, senior portfolio manager and head of global fixed income at all spring global investments.

as we have been speaking this meeting with henrietta, we have those lines coming out from the japan currency chief. saying he is really watching the moves we are seeing a japanese yen. you are trading about the 151 mark. we have seen a lot of verbal intervention over the course of last week. does seem to be appearing so far in the early trading this morning on monday. some lines coming out of him, he is saying clearly we are seeing speculative moves in the currencies markets. yes, the boj made a milestone decision, but the rapid fx moves we are seeing up the back of that is having a negative impact on the economy. he is saying excessive moves we are seeing in the market, these are things that are good. and a weak yean can have a significant impact on individuals and generally speaking, a weaker yen as having less of a benefit than it did in the past. so we are seeing just a little bit of move coming back into the

japanese yen. a tiny bit of strength versus the dollar. but you are talking about .1%. you can see on a two day chart it is a story of not only a weaker yen, but dollar strength, it is very hard to compete against king dollar given you have the positioning around the fed to start cutting rates as well. paul: yep. sure is. we are going to be talking about the future of the digitalization of financial in japan with the jfsa, vice minister for international affairs. he's going to be joining us later on this hour. but first, why china sees plenty of space for macroeconomic policies to be extended. details on that story next. this is bloomberg. ♪

annabelle: chinese premier league li qiang is downplaying concerns of challenges facing the economy. he says beijing is stepping up policy support to spur growth. our greater china editor john liu joins us from beijing. this is from a speech he gave at the china development forum. a lot of different government officials and executives attending that. what else did we get out of that speech and what were some of the key takeaways?

john: i think the main argument the premier was making is that, one, china does not have an issue with inflation. there is not pressure from prices rising on policymakers. the other point the premier made is that there was still a lot of room on the central government's books. there is not a lot of debt when it comes to the central government. so if you add those two things together it seems the premier is signaling there is going to be more fiscal stimulus, more done in terms of government spending. over the last couple of weeks we have heard the government is planning things such as government money to encourage households to replace old cars, old appliances, to encourage factories to replace their old equipment. so the expectation is that there will be more done from a fiscal standpoint and the government is going to pull out the checkbook to get it done. paul: how is this message likely to land with the foreign investors that were present, and

the ones who were listening in? john: i would expect that this is exactly the sort of message that these executives wanted to hear. i don't think it answers all of the questions that foreign businesses have about the environment you're in china. first -- here in china. first and foremost is the issue of, is china prioritizing growth or national security? if the answer is it is prioritizing national security, that would cause some concern when it comes to foreign investment. that is why we have seen the dip. some measures of foreign investment down the most in 20-plus years. annabelle: before li gave that speech over the weekend he had a meeting friday with regard to the property sector. what were the key takeaways, and is there any signal we are going to see further support coming through? john: the premier did have a meeting on friday with the state council of the chinese cabinet. and what we got out of that, the

readout was there was an emphasis that the government would do more systematically to address the issue of demand. that has been the big question here in china. property sales are at a multiyear low. property investment as a result is down more than 9% from a year ago in the first two months of the year. so the premier is saying the government is going to do more to stimulate demand. have exactly that is going to be done, we don't have the details yet. but we have markets expecting more to come as a result of that meeting on friday. paul: we also have data coming out of china this week. industrial profits for february. manufacturing pmi's as well. are we anticipating that is finally going to get out of contraction? john: what we got earlier in the month was, for the first two months of 2024, investment was actually better than expected. industrial production was good as well. and so we could see that reflected in a better

manufacturing pmi number. still, with property as it is, with property contributing so much to growth in the past, it is still so hard to say whether we will exit contraction. paul: all right. bloomberg's senior executive editor john liu. the latest geopolitical stories we're tracking, u.s. vice president kamala harris has declined to rule out consequences for israel if it invades the crowded southern gaza city of rafah. she told abc news, washington has been clear in multiple conversations with israel that a major military operation in the city would be a huge mistake. but prime minister benjamin netanyahu has rejected to rule out an attack in rafah, where more than one million palestinians have sought shelter. russia has held a national day of mourning for the 137 vehicle -- people killed friday. people gathered across the country in memory of the victims amid heightened security at major airports and railway

stations. russian officials are continuing to suggest a ukrainian role in the massacre, even after the so-called islamic state claimed responsibility for the attack. ukraine's says russian forces launched an aerial barrage sunday, including a missile that briefly crossed into polish airspace, while kyiv's forces struck off the crimean peninsula. ukraine shutdown 18 of 29 missiles and most of 28 drones launched by russia. poland says it notified nato allies about the russian missile that entered polish airspace for about 39 seconds. and you can get a roundup of the stories you need to know to get your day going in today's edition of daybreak. terminal subscribers go to dayb . this is also available on mobile in the bloomberg anywhere app. you can customize your settings so you are only getting news on the industries and assets that you care about. this is bloomberg. ♪

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annabelle: bloomberg opinion column must says it is still too early for investors to pivot away from u.s. markets given the country's exceptional economy. he also told miss about what he has seen in the fed's latest decision and jay powell's comments. >> eventually we had bottom up drivers. circular themes that were very powerful. but that valley was narrowing. now suddenly have a very powerful top-down factor that is coming in. central banks are clearly going to do what they want to do regardless of selective data progress. so these two things coming together is really powerful. >> were you surprised by what came out of the news conference from chairman powell? >> i was surprised to the extent

by which he expressed patience. patience with inflation running higher. he basically dismissed that we had some surprising harder than expected inflation prints. and the second patients with the balance shape saying we might get there slower than we would have otherwise which means monetary policy is going to be more expansionary. i was struck that on the balance sheet, he took a big step forward when he could have waited to the next meeting to do that. >> we keep wondering what she was going to drop. we keep hearing everything is bullish and then more bullish. so when does something break? and at some point this is going to be a higher, more inflationary environment with a fed that is less willing to fight it, and yet i am not seeing breakeven rates. i am not seeing it in other places you normally what. why do you think that is? >> you are seeing it in gold.

record highs in gold. you have all said it really well. we are having the everything rally. going everywhere. what is interesting now is this notion of market enthusiasm -- not -- that is quite a controversial statement. if that occurs, then the u.s. relative strength is going to be somewhat diminished. i think it is too early to pivot. to use your phrase, u.s. exceptionalism, economic exceptionalism is not going to expand to the rest of the world. the u.s. really is exceptional when it comes to the economy. others are not doing what the u.s. is doing.they don't have entrepreneurial society we have. the u.s. is truly exceptional. >> do you think it is rational for people to stay in the united states and to keep adding more,

even if valuations are at such high relative -- to continue to bet on this ship? >> i have been asked that every year for the last five years. and every single year, the u.s. premium has increased. and every single year i said don't fade the u.s. too early. purely on enthusiasm and on relative valuation. it's not being supported by fundamentals. this is more betting on the momentum. and i understand that. the momentum factor is very strong right now. paul: let's take a look at how u.s. futures are shaping up. looking kind of flat, picking up the new week where the last one left off, a little bit mixed to a little bit meh. but we have an interesting call from goldman sachs. the s&p will end the year at

5200, less than what it is now. but they have a scenario on which megacap tech leads the index up another 15%. goldman seeing the gauge could go to 600 by ytear-end, reaching a ratio of 23. that's the bull case. the main scenario is we go backwards from here because the fed funds rate has already been fully priced by the markets. we have plenty more to come on daybreak australian. stay with us. this is bloomberg. ♪

>> you are watching daybreak

australia. some corporate stories we are tracking out of china. apple ceo tim cook has revealed plans to invest further in supply chains, stores and research in the country. state media said he made the promise in a meeting with the commerce minister. at the annual china development forum, he said ai will be essential for reducing carbon footprints. >> we would not be able to recover the level of material that we do today for recycling without ai. it's already fundamental in our calculation, and i think it provides an enormous tool and a toolkit for every company that is wishing to be carbon neutral or to lower their emissions by substantial amounts. annmarie: sinopec's annual profit declines 13% as oil prices fell and chinese refiners posted a record year for processing and imports.

china's largest fuel processor reported $8 billion in net income from last year, compared with $72 billion in 2022. global oil prices were 17% lower in 2023, reducing the value of their drilling output. didi's fourth-quarter revenue jumped almost $7 billion. it shows a gradual recovery for the chinese ride-hailing leader ahead of a planned listing in hong kong this year. they have been losing market share since 2021 when regulators launched an investigation into its data handling and forced to delist in new york. >> the chinese yuan is in focus after crossing the 7.20 two the dollar line. traders are looking to monday's reference rate after the pboc set a weaker than expected daily fixing on friday. our lives asia team joins us now.

what's the resistance level for the yuan and can policymakers really fight the u.s. dollar? >> they've been fighting the u.s. dollar for quite some time. the question is, are they running out of ammunition so to speak? or perhaps a better way of putting it is to they have the will for the fight, as china's economy continues to struggle, and official start to talk about more stimulus? one way of adding stimulus is to let the you -- you want decline towards levels of fundamentals. 7.25 is on the menu. it would be a real shock to go further than that, but friday's move was a big surprise where suddenly they stopped fighting at the 7.20 level. there have been a lot of talk about state owned banks coming into hold it there.

i think you could see a bit more weakness. the pattern has been usually that when they let one of these dams break so to speak, they let things run for a while and then come back and hard to restore so-called two-way trade in the yuan. there will be a level that becomes the next line in the sand. 7.2 five looks like at least one potential one right now. annmarie: what is the line in the sand for the bank of japan? this was really being marked by more warning against speculative moves in the japanese company, this time from japan's currency chief? >> a little bit of a surprise because they were relatively quiet last week when the yen did weekend quite noticeably, despite the boj actually hiking rates. but doing so in a dovish

fashion. even then when the fed stuck with the rate cuts forecast for this year, the yen still stayed weak. i think coming out of that and with the yuan slump on friday, that's got japanese officials worried. i don't think they want to see it go much further than it did if it got to 159.9 or so against the dollar or went to 152. there is some speculation it could go significantly further. while the bank of japan and some extent the government are happy to avoid massive yen strength, because that can hurt the stock market, that can hurt companies, they are also cognizant of the idea that the public doesn't feel particularly comfortable even with the yen at the current levels.

a significantly weaker yen from here would put that very much back on the political agenda. it looks like 152 is about as far as they would like to see it go from here and they might well be thinking about that as the kind of level that could spark intervention, which they had last time. probably the hope is that jawboning will be enough again to push back hard. if you remember, there was an incident at one stage last year when the young got to these levels and then came back down rapidly enough, but there was speculation that the japanese government had intervened by telling the bank of japan to buy the yen when the figures come out that would have shown such intervention, there was none. obviously, they had convinced the market that they either had or they were willing to intervene, and that was enough. that's the playbook again here. they want to talk a good game, a

good enough game to get the yen back stronger, without setting off a major move significantly stronger that could bring an unfortunate effects are mentioned before. annabelle: that was our markets live asia team leader orfield reynolds. we want -- garfield reynolds. we want to talk about the week yen and the impact on japanese equities. one of the lines that stood out from canada japan's finance chief saying that the week yen is having less benefits from before. let's bring in our senior asia stock reporter. we have seen the weak yen boosting exporters in japan traditionally. is that still the case? why do you think you are hearing that the weak yen is not having a positive influence in the longer? >> yes, i think there is a broad perception that the japanese

stock rally has been held by a weaker yen, which was true until early this month, but things have changed substantially after that and domestic demand oriented companies are doing quite well so far this month. if you look at the year-to-date performance, now they have caught up with exporters. the main driver or the strength in the domestic oriented companies have been strong wage growth and japan's labor unions have more of a substantial wage increase so far. so we can point out the fact that the boj's with rate hike fairly smoothly. it has just been one basis point rate hike so it wasn't a big deal to begin with. because the boj's tightening,

people feel more confident about domestic oriented shares. about the comment, i think it reflects concern that further weakening in the yen could harm consumers and the government is worried about consumers revolt ahead of the election this year. >> so the weak yen doing the nikkei a lot of favors at the moment. this rally we are seeing, how much of it -- how much does it o2 the weakness of the yen and cheap valuations compared to the u.s.? >> if we think that the government is not happy with the yen's weakness, you could say the yen might be limited down the road. of course, the government cannot always control the market, but

still if we think the government is not comfortable with the yen going to 100 60, probably exporters are not the best place . in terms of valuation, japanese stocks are still cheap. this is probably also worth highlighting the valuation of japanese stocks have risen considerably. the msci japan was below 15 times earnings at the start of the year and now it's about 17 times. so the gain is actually bigger, slightly bigger than the u.s. so the japanese stock is still cheaper but they are becoming less attractive than before. paul: bloomberg's senior asia stock reporter there. still to come, we discussed the

japanese government's efforts to attract more fintech companies. this is bloomberg. ♪

paul: time for japan ahead. a lot of investors will be

watching this monday. the minutes of japan will be due in a few minutes. the central bank kept negative rates unchanged back then before ending the ultra-easy policy last week. shareholders from sumi to life insurance have held -- helping acquisition of singapore life the financial times is reporting president biden and the you japan prime minister will announce plans to restructure the u.s. military command in japan and the plan will reportedly be unveiled when biden hosts kishida in april the white house. annabelle: perhaps more of the snooze the meetings of the year so far but we are watching the japanese yen, around the 151 mark. we have were further

intervention coming through from japan currency chief masato kendall and he says -- masato kanda. there is the risk rising of intervention. we have not heard from him since february, so it is a bit of time between comments and a longest -- longer salvo we've had for him in months. in terms of equities, we are setting up for weakness in the session and it follows through from the wall street day on friday because we had some weakness at the end of the week. but still, very much the watch on the market reaction to the boj decision. paul: it was very well signaled and played out very much as expected. let's talk about the changes to japan's monetary policy. but it can mean for financial regulation and the implications for the future of fintech as well, the financial services

agency of japan is a government regulator overseeing the banking securities and exchange and insurance sector as well. shigeru ariizumi is vice minister for international affairs at the jfsa and joins us from tokyo. thank you for joining us. i do want to start on that decision to end japan's negative rates policy. the first interest rate hike in 17 years. how do you think this change is going to impact the private sector? >> thank you. i am delighted to be with the program. i think the bank of japan's decision to depart from monetary policy and shifting to a new stage reflects the current developments in the macroeconomic situation, domestic and abroad. the bank has also stated that it anticipates the accommodative monetary conditions will

continue. the government welcomes this to ensure we consolidate the positive signs and momentum currently seen in the japanese a company -- economy. the government and the company will work closely moving forward. your question on the impact of the private sector, this should be taken in in the course of the overall economic transformation, rather than looking at them by themselves. the kishida administration is looking to completely break out of inflation and move into a growth led economy with increased wages and to enable firms to generate more profit moving forward. i think this is a very positive development. of course the bank of japan's governor, wade us on --

ueda-san, as mentioned this will continue for the time being and he said x acting not a significant increase in loans or deposit rates after the monetary policy committee decision. having said that, we don't want to be complacent, so we will obviously monitor the developments at home and abroad carefully on the macroeconomic front and look carefully to the overall risk management of financial institutions here in japan. paul: i was interesting in the lead up to the decision, we had some fairly clear signals from the boj that this was all going to happen, but while the meeting was taking place, we were getting updates and of elements from what was going on around the table. a little bit concerned -- are you a little concerned that maybe the bank of japan leaks a

little too much information while these meetings are in progress? >> thank you for your question, but i think i should refrain from making any comments on the reports that came out ahead of the meeting. for us, what is on the table, what came out of the boj in its statement is all we have and the governor's press conference and his comments is what we should rely on. annabelle: i'm interested, because the conviction the boj has in pushing ahead with further rate hikes could come down to what we see in wage gains and with a receipt the salary hikes that came out of the negotiations down to smaller businesses and various industries.

are you seeing wage negotiations? >> i think the wage negotiation so far have been positive with the increase of 5.28 percent in this initial collection of data. we've seen nominal capital investment hit a record high exceeding over ¥100 trillion. i think these are developments or the bank will not only look at these aspects because there's an overall macroeconomic with monetary policy in japan so they will look at all aspects including the one you just mentioned. annabelle: a reaction after the boj decision has come down partially to the weaker yen. we've also heard from japan's currency chief saying a week yen is no longer having such a positive impact than before. again in the area you work in,

is there a negative impact of the weaker local currency? >> i think i will leave the currency, i know masato has made comments today, and i will defer the currency policy to him. he's responsible for the currency exchange strategy. on the impact of the weaker yen, this is actually the same answer i just gave because we not only look in terms of the impact of the weaker yen, in terms of how it affects our domestic inflation, but we should take this in context. it is difficult to ascertain what the exact impact will be. from a currency exchange point of view, the ministry of finance

has its own views on how to think about the current developments in the currency market. paul: we want to talk about the digitizing of fintech services in japan as well. how has the use of some of these services and ai in particular compare in japan to some other developed economies? >> thank you very much, paul. i think we should take reference to what is happening in the u.s. and europe in the digital front. let me highlight a couple points that i see as a strength of the japanese fintech firms. first on the payment front, you may be surprised, but for example, many of the japanese nationals currently use assertive a qr code service provided by major fintech firms.

more than half of the population uses this. it's becoming more of a public infrastructure in a sense. i want to mention that in terms of payments, particularly cross-border payments, we do see a move towards addressing social issues, for example in terms of financial inclusions where we see a lot of remittances to home countries right now. we have also introduced a new type of large-scale money transmit system where overseas firms will be able to operate in this space. for example, we've seen u.k. wise come into the japanese market. also, we see partnerships with tradfi, with fintech

friends -- phones, using partial payments on insurance and asset management. we've seen the rise of embedded finance also in japan. one thing to note is that japan lacks the presence of a unicorn in the sense compared to the u.s. and europe. i think the japan fintech, which we just hosted from march 4 through the eighth this year, provided an excellent opportunity for overseas fintech firms to look at the opportunities that exist in japan and seize this opportunity. in turn, this will, i believe, elevate japan's fintech industry to be able to provide a more sophisticated user oriented service. annabelle: shigeru ariizumi, thank you very much for joining

us. the vice minister for international affairs at the jfsa, a big focus on the bank of japan this morning. we just had the meeting minutes for january being announced. the key takeaway is that the likelihood of hitting christ's -- the price goal and inflation target of 2% is gradually rising. of course the january policy meeting, so ahead of the real rate change that came through in the march meeting. you can catch japan ahead every monday at 8:40 a.m. if you are watching and tokyo and 8:40 p.m. sunday in new york. watch us on the terminal using the tv function. more ahead. this is bloomberg. ♪

annabelle:annabelle: a few minutes out from the open of markets in japan and korea, but watching the meeting minutes we just had for january, that was the january policy meeting, but at that point in time boj members were saying the likelihood of hitting the price goal was gradually raising. more ahead. this is bloomberg. ♪

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annabelle: this is daybreak asia. we are counting down to asia's major market opens. at the start of the week, maybe a little flat so far, but the moves coming through in the japanese yen. a push back again from japanese government officials saying if you are betting on the dollar yen as a one-way bet, think again. paul: we have been hearing from masato kanda today. some pretty strong words. we also heard from the boj, but not all that exciting. annabelle: that's right, the january policy meetings coming through but at that point, they were saying the inflation goal was coming into site and the condition to start hiking rates, and the