haidi: good morning and welcome to "daybreak: australia." i am haidi stroud-watts in sydney. >> i am annabelle droulers in hong kong. >> from bloomberg world headquarters in new york, i am shery ahn. the ecb is becoming the latest central banker signal restrictive policies to combating inflation. haidi: alibaba's adrs fall after china's regulator denies a report that it started discussions to revive ant's initial public offering. shery: the hearing on the generate six capital attack begins soon -- on the january 6 attack on the capitol begins soon. we had the s&p 500 in the new york session following. we had the lead trading session,

that selloff accelerating leading to perhaps some signs that there could be some algorithmic activity ahead of the cpi numbers tomorrow. of course, investors are attracted to digest the you see the's latest hawkish stance. we had treasuries slumping, the 10-year yield above the 3% level , sort of in solidarity with european yields. german bund yields also jumped after the you see the decision. crude prices continue to lose ground, below the 122 but dollars a barrel level but after hours there are a couple of stocks we are following, including tesla as well as alibaba. not a lot of movement in the early session in the after-hours market, this after tesla had already spiked in the u.s. session. we heard from the company that their output in china tripled,

but we also heard that authorities were extending their probe into their auto system so some of their gains were pared back during the session. authorities refuted a report on ant's initial public offering. annabelle: in the u.s., we are watching the open. the other headwind facing investors is there renewed lockdown fears in china. beijing and shanghai both receiving mass testing. in addition we have inflation fears, oil price rises, setting the risk-of trading across the region. in the fx race, still all about the yen, nearing that 135 level, not helped by the strength in the bloomberg darla index, now at a three week high. the euro is another focus. we are seeing a surprise pullback.

but today it is a little bit weaker, perhaps a sign that investors are starting to struggle to ingest that message from the you see the. haidi: and what a message it was, it was largely expected by the markets. it was one of the most highly anticipated you see the meetings in memory. it is extraordinary seeing hawkish officials taking the ranks at the you see the for the first time in a generation, bringing down the curtain on years of alternatives monetary policy that have committed to a quarter-point increase in rates . you can see, they are pricing in that 50 basis point hike in september. 50 is the new 25, and it looks like stan lagarde is on board as well. shery: inflation is a key issue. we heard cpi numbers coming out on friday. the anticipation is that there will be another gain of more than 8%.

that is pretty much expected. but we are talking two straight months where groceries, gas and electricity all went up double digits, for the first time since the 1980's. you may think those are volatile numbers, but they affect everyday americans. so with price pressures being felt across the world, it is giving central-bank hawks stronger hand. the you see the may join the 50 basis point hike club let's get more from our global policy editor, kathleen hays. kathleen: i think they won this battle in the war to push the you see the towards a more hawkish position. but let's look at a couple of things. the dutch central-bank chief, you see the board member, three weeks ago he started arguing about, we can't be so soft. inflation is that 8.1%. the austrians central-bank chief and the latvian chief getting on

board. so the you see the said the rate hike will be appropriate in september if high inflation persists. . but they will not bring their rate out of negative until positive territory, until the end of the third quarter. they will not start hiking rates until their july meeting. the september rate hike of 50 basis is not guaranteed. so yes, the hogs have pushed. have they want -- the hawks have pushed. have they won? it remains to be seen. deteriorated output, outside risks to growth from the war in ukraine and then there is the question of pushing peripheral bond yields up. it creates instability financially in the e.u. that is something they are concerned about as well. so there is caution in the you see the. haidi: a lot of caution. we are hearing from the sites of mohammed -- the likes of mohamed el-erian saying it inflation is

not going any worsening. if we get another supersized inflation, does that change how hawkish the fed really is? kathleen: we had already been promised 250 basis point hikes in the rope. governor bullard from the st. louis fed things the 50 basis point hikes could continue through the end of the year -- he thinks they could continue through the end of the year. so what online, the fed once clear and convincing signs that inflation is slowing -- the fed wants clear and convincing signs that inflation is slowing. we may see that core inflation has come down a bit, but the headline is still saying high. those are important numbers to consumers and businesses. the fed has got the door wide open to the 250 basis point rate hikes. importantly too, next week they will update the summary of economic projections.

we will get the view of just how aggressive in terms the consensus is. shery: kathleen hays, our global economics and policy editor, thank you. let's turn to politics. the house committee in the u.s. is investigating the attack on the capitol last year. this is now starting with a public hearing in a few hours, promised to review new evidence on the assault and its place in a coordinated effort to overturn the presidential election results. jodi schneider joins us from washington. what should we be watching out for in this first televised hearing out of at least six hearings to come? jodi: this will be the big review, it is executed to be a big reveal tonight. we are anticipating that there will be new evidence, we have been told that i the committee. even the president in some remarks at the summit of the americas said "the public will

now see what happened on that day." they have talked to more than 1000 people, they have had more than 1000 interviews, more than 140,000 documents have been collected, and now they're going to have a hearing and basically show some evidence of what happened. we will hear from the committee chairman, denny thompson, and from the vice chairwoman, liz cheney, then will hear from a british documentarian who was embedded with the proud boys on that day as they broke into the capitol. so there is expected to be a lot of drama in this first hearing. haidi: what are we expected to learn about the role of former president donald trump in this? jodi: that is really the open question, will we see evidence that he knew what was happening? that he provoked this?

there have been all kinds of talks, certainly by democrats, that he was behind this. and president biden in his remarks today said it will show that he was partly behind this, but we will have to see what that evidence is. that is the part of this primetime hearing drama, will we see that, and we we hear some of the testimony -- will be hear some of the testimony from people like ivanka trump and her husband, jared kushner, who were interviewed by the committee? will that come up? that is really the question. the other hearings after this are not expected to be traumatic. they will start soon, i am thinking next week. we will have the next one on monday. haidi: jodi schneider there with a look ahead good that's good to with our first word headlines. su: chinese president xi jinping

is calling on his government to balance the covidi zero policy with the economy. he is urging all regions to be resolute in maintain social stability. china's economy is widely expected to miss is five price -- it's 5.5% target this year because of covid virus carbs. cases topped 600 on thursday for the first time in seven weeks in hong kong. 674 cases is the highest since mid april. officials are warning that some variants continue to spread. the raising cases add to uncertainty for hong kong residents, will face mandatory quarantine if they test positive for a subvariant. the president of should likea has issued a decree, making electricity and essential public service, after workers at a state owned utility threatened to strike.

unannounced power cuts were being reported across the island nation. lack of vital supplies has mired sri lanka in the worst economic crisis in its modern history. bloomberg has learned that the sec is investigating the marketing of the there usd stablecoin and whether it innovated investor protection regulations before last months crash. sources say sec attorneys are looking at whether the firm behind the coin terraform labs broke rules. the explosion of the coin in early may sent shockwaves across crypto markets. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: al-shabab as u.s. listed shares tumbled into new york after china's regulator denied a report that it had

restarted negotiations of reviving ant group. my jaw dropped when i saw that initial headline across bloomberg what toledo? >> keep in mind shares went up on the news, sources saying that regulators in china were in early stages of talks to possibly revive this massive ipo. i don't have information on this, but i doubt it would be as large as that 5 billion-dollar global ipo were going to see in shanghai and hong kong back in november of 2020. of course that triggered this massive tax selloff that spread beyond alibaba and ant into other tech companies, wiping off more than one trillion dollars in market values and sending shockwaves to the billionaire class across

china. so when this news broke that this is happening, it is babies, but you are right, things pulled back would brick and that is put out a statement. the securities regulator in china in a statement last night, denied it is conducting work on reviving the ipo, although it supports eligible companies going public in china and overseas. if this plays out the way bloomberg news has reported, it is the clearest signal, i can't put it any clearer, the clearest signal yet that that the attack crackdown perhaps is over keep in mind this week we had the news that the probe on didi global was coming to an end. ant-alibaba, and didi global. if these two crackdowns are coming to an end, that would be

a positive sign, the most tangible sign that the text crackdown is coming to an end. shery: stephen engle, when chief north asia correspondent. coming up, of the u.s. ambassador to china says tides are in their worst state since official relations were established in 1972. we will discuss with him ahead of a key meeting with officials in washington and beijing. but first, our guest says the decline in u.s. markets is not over yet, and she remains heavily cautious about equities. haidi: w will be speaking to the u.s. finance minister, grant roberson. prime minister jacinda ardern is visiting austria with him and meeting the new government. this is bloomberg. ♪

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>> what worries me, and you are not going to like this because it is looking forward, the june month-on-month print will be worse than you may's. those who think inflation is coming down we have to change their minds. >> a review is that you are in the midst of forming a non-recessionary bear market bottom. that is the base view. that we haven't seen the phenomenal catalyst. we all know the biggest fundamental catalyst is falling energy prices. we look for it everyday it is not happening. shery: the evercore strategist julian emanuel, and bloomberg

u columnist mohamed el-erian there. s&p futures slightly higher. we had nobody selloff picking us in the last -- low-volume selloff in the last hours of trading. some signs of algorithmic trading activity ahead of the cpi numbers, the market straighter digest the ecb's hawkish next. -- markets trying to digest the ecb's hawkishness. let's bring in our next guest, who says today's decline in wall street confirms this years's selloff is not over yet. with us now is erin gibbs, cio at mainstreet asset management. good to have you with us on a day when markets were trying to digest all the hawkishness from central banks around the world this week. and we have the u.s. cpi to look forward to.

what will be the next catalyst for markets? erin: i don't think anyone could miss the cpi report coming out tomorrow morning. obviously we had that deceleration in april versus march, so this is going to be the mother that says, is that a trend, or just -- this is great to be the month that says is that a trend, or is it just a one-off? it is a highly followed indicator for inflation. certainly i think it is also important to note that for the past couple of weeks when you are just looking at the chart, even if there was slightly negative news, the markets will be able to shrug it off. today has officially been a big down day. it says that we haven't fleshed out the fears in those who want to sell a lot of these markets.

shery: so much so that even energy stocks were down one sector you are still optimistic about. erin: yes. it has been the winner. on days where it has been so negative that even energy doesn't hold up, those are great days to get into the energy sector. it has been doing well and it is up year to date for the month. if you see those opportunities, i don't see a break in the trend, i don't see energy prices or stocks coming down just yet and that has been one safe haven. use these moments to get it while you can. haidi: you talk about referencing cash and having a degree of caution as well -- preferenceing cash and having a degree of caution as well. how much drive out or are you keeping around? erin: the overwhelming majority,

about 70% in cash right now. i am looking for any sign of turnarounds. one of the things we have looked at is not just across different equity asset classes, but as bonds as well. we don't see the stabilization of prices yet. may was sort of favorable, we have and saw a decline in rates, and obviously increasing prices. but that was short-lived, you would have to be trading constantly, even in an intraday basis. until we see a reversal of the trend, and i would say that equities have definitely priced in a recession more so than a lot of the bond markets. a lot more negative sentiment is already built into the equity markets and that will be the area that recovers first. now, i am not sure when that will happen just yet, i was

hopeful may would be that turnaround. we shall see what we see the cpi report as well as the fed comments last week -- the fed's comments next week. but the first sign of a comeback will definitely be on the equity side versus the markets. haidi: that is staggering. 70% is nowhere near fully invested, obviously. what about fixed income opportunities? you are getting more encouraging signs that this is becoming a relevant side of the portfolio now. erin: yes, so 70% cash is still pretty out of the market. so i think we are looking about recession risk as well. obviously it will be a few more weeks before we get a better sense of where the u.s. is going to end up.

another big part of it is just flushing out the fears, using technical indicators, being able to close up towards the top versus the bottom. obviously a lot of uncertainty. markets not being able to handle some slightly hawkish news from the ecb is one of the signs that there is still a lot of fear out there. shery: great to have you with us as always erin gibbs, mainstreet asset management cio. you can catch up on the stories you need to know to get your day going, terminal subscribers can go to dayb . this is bloomberg. ♪

haidi: a quick check of the

latest business flash headlines, state street says it is not pursuing any combination of business with credit suisse, a day after credit suisse reported on a possible deal for the bank. state street says there is no basis for the humors. the bank is sector be delaying its expansion and postponing its biggest mainland projects. shery: sources tell us credit suisse has pushed back the targeted launch of its local inc. bank to 2024. it is understood executives are worried about the impact of covid lockdown said regulatory crackdowns. covid has also been slowing hiring on the mainland. take a look at the data had fostered and new zealand. haidi: following the consecutive rate hikes from the rba, commonwealth bank says the bank cut interest rates in the second half of 2023. the country has also downgraded

its growth forecast. they expect the company to grow to 3.5%. and the government will make its biggest investment in renewable energy infrastructure, $1.2 billion to fast-track transmission projects to deliver cheaper and more reliable our. and the prime minister of new zealand and her australian counterpart will hold a news conference in sydney after bilateral talks. in a few hours time, we will be talking to new zealand's finance minister who is on the road on this trip with jacinda ardern. make sure two interview at 9:00 a.m. if you're watching in hong kong, 11:00 a.m. in sydney.

>> we expect to raise the key ecb interest rate second in september. the calibration at this rate increase will depend on the updated medium-term inflation outlook. if the medium-term inflation outlook persists or deteriorates, larger increment will be appropriate at our september meeting. haidi: christine lagarde speaking after the ecb decision. mohamed el-erian is warning that inflation is yet to peak as a driver's including the high energy prices persist. it bloomberg opinion contributor told us that the cpi out on thursday could top 8.5%. mohammed: i have no reason to have a different forecast from the consensus of .5% or .7% month-to-month, but what worries me, and you will not like this,

june month-on-month print will be worse than the may month-on-month print. those who boldly said inflation has leaked and it is coming down me afte -- may have to change their minds. i would not be surprised if we see a headline print that is much higher than 8.5%. >> next month? why? mohammed: because the drivers ultimately should our bargaining and that is due to affect a policy mistake. secondly, at the headline level, energy prices are going up month-on-month quite dramatically. thirdly, p.r.c. pressure on shelter and food. if you look at all the components, it is way too early unfortunately to say that inflation has peaked. i hope it has, but it would not surprise me if we go up 8.5% on a yearly basis. >> i remember when you came in last year and you said, i don't

think this is transitory, this is important, i am pushing back. he went out in force and that force that more powerful as you progressed. get the feeling this year that we have not totally relinquished the idea that this is temporary. a lot of guests think that we have seen the peak, for good reason. are you stressing that this is going to persist through the whole of this year, that we are not going to get that drop that so many people are hoping for an looking for? mohammed: jon, if we get a drop-off, we get it because of demand destruction. and that would be tragic. the last thing we need is for information to completely undermine the demand-side, because then we have not only a price issue, but we have an income issue. and once again, it will be the most vulnerable segments of the population that got hit the hardest. so in a way, be careful what you wish for. if you believe that labor

markets stay strong, wages start catching up to inflation, then it is very hard to see inflation coming down. if, however, you think we will have a recession sure, inflation will have down, but that is not type of transitory inflation anybody wants. haidi: bloomberg opinion columnist mohamed el-erian, speaking with bloomberg's jonathan ferro. four morning because i had of the asia trading bell, it seems like everyday we are either talking about inflation or recession or inflation again. investors are saying we have a problem. >> that's right, this is david einhorn from green lake capital, echoing some of the news we heard there from mohamed el-erian. he says inflation will persist and there is not much of the fed can brothers. the reason is saying this is that price pressures or efforts to rein in price pressures have

to come in from the demand-side. the focus on inflation has been on the price again in the food and energy sectors, but david einhorn says we need to focus on other areas, specifically the underinvestment areas like cement, housing and paper. haidi: we are seeing some of the calls that the yen could hit 150 against the dollar. there is a strong warning about the potential consequences of that. annabelle: how about the asian financial crisis 2.0? that is what the famed economist jim o'neillm is saying could happen if the yen reaches that point. he says it could force china to intervene to prop up its own currency. we are actually watching for that at the moment, the yuan is trading at 20 against the yen, a level in the past where china has intervened to devalue its currency against the greenback to make exports more attractive.

good news is jim o'neill says we are unlikely to see it reached 150, the yen, so maybe you know 97 crisis for now. shery: oh my goodness, are we going to be starting to talk about currency wars again? [laughter] annabelle droulers with that morning call. weakness continuing at the moment. 134 is the level. su: the ecb is ending years of loose monetary policy and committing to a quarter-point rate increase next month, signaling a bigger hike leader in the year. the central bank will hike borrowing costs for the first time in more than a decade, to tackle inflation the. ecb will also seize the net asset purchases for the first time. meanwhile the house committee investigating the january 6 attack on the u.s. capitol will host its first prime television

securing shortly. it will provide new evidence on the -- it's first primetime televised hearing shortly. republican lawmakers have announced plans to release their own report on the right. >> i think there were clear, flagrant violations of that constitution. i think these guys and broke the law tried to turn around the results of an election. there are a lot of questions of who is responsible, who is involved. i think a lot of americans will see for the first time some of the detail that occurred. su: the chinese defense ministry says the military will take powerful measures against what it calls a taiwan independence

plot. the minister made the statement in response to the u.s. state department's approval of a possible sale of military equipment to taiwan. he called the move a gross interference in china's internal affairs. switzerland has gained enough votes for a nonpermanent seat on the u.n. security council, winning its first two year mandate on the body since joining the organization 20 years ago. switzerland is a neutral status remains unaffected by its participation. japan was also among the countries chosen for a rotating seat from 2023 to 2024. global news, 24 hours a day, on air and on bloomberg quicktake, powered by more than 2700 journalists and analysts in more than 120 countries. i am su keenan. this is bloomberg. haidi: the australian prime minister anthony albanese will host his first meeting with a foreign leader today. new zealand's prime minister jacinda ardern and is in sydney for talks. how permanently will china's -- how permanently will china's

ties in the area feature vstoxx question mark paul: china and australia -- how prominently will china's ties in the region feature in these talks? paula: china and australia have a history of making connections. new zealand has so far been much more diplomatic in its dealings with beijing and managed to avoid that, however, prime minister jacinda ardern issued a joint statement with u.s. president joe biden earlier this month expressing concern about how it chinese military base in the pacific could upset the strategic balance. that led to a thinly veiled threat from china's ambassador in washington about new zealand squandering its repetition in beijing. . so there is plenty of common ground there.

shery: despite the long history of common ground that you mentioned, any points of friction between australia and new zealand at this point? paul: there are very real areas of disagreement, particularly around deportations . this has been going on since 2050, australia has been deporting new zealanders with criminal records. thousands of them have lived in austria without getting citizenship and have or know family connection back home. this has led to an absolute in the criminal violence. new zealand police association says that the gang seen in an easy has changed, there have 23 drive-by shootings in auckland in the past two weeks. so this is a growing issue. the two countries to describe themselves as family quite often, but this is a serious family disagreement, and one in which australia has little motivation to fix. shery: what is the desert in

contention? paula: that would be the pa -- [laughter] shery: good to know. chevrolet dialogue begins in singapore -- the shangri-la diet begins in singapore. an analyst will join us with the discussion of the latest developments. this is bloomberg. ♪ but from working

>> asia's annual security summit, the shangri-la dialogue, begins in singapore later, and all ears will be under payer of dueling speeches from the u.s. secretary of defense thursday, and china's minister of defense on sunday. let's discuss this with our next guest, victor abramovitz. will this be the area of focus for both sides as well as for countries the lights of new zealand and australia, given this new government defending australia's influence in this area? victor: absolutely. the competition between china

and the united states, they are the most powerful countries in the region and they are outlining what is the future as they see it. you will have the united states articulating the vision that the biden administration has put forward which is largely keeping things as they are. keeping the area a free and open area, growing multilateral cooperation between the u.s. and organizations such as the ford and asean. or you could have the chinese version which is, we want the u.s. out, we want a free and open area with china at the center and with china's interests at the fore. an acceptance of all countries in the region of its claims in the south china sea. haidi: what do you cs the most effective approach here from countries like australia and

other u.s. allies in terms of countering the risk from china? i thought it was interesting that with the visit from the chinese prime minister, we saw specific island nations showing some doubt and reluctance as to what beijing was proposing. victor: absolutely. the key approach that a lot of like-minded nations will be taking is to be reinforcing the military and diplomatic links between each other and also a focus on foreign aid. very much, china takes a trade first approach. it has an enormous checkbook. it is wonderful that countries like australia have good relations with other states in the region, but money talks, and

we nations also have to be able to have that checkbook to be able to counter that influence. so you will see a focus on forming military links with the u.s. and each other, but also a focus on producing financial support the way a prosperous region does in that way, to help keep china out. shery: you mentioned the status quo that the u.s. wants to keep in the region, but i wonder how willing are the nations to accept that? when it comes to the trade and economic side of things, the u.s. has been lagging, especially after drawing out of the tpp? victor: almost everyone recognizes withdrawing from the tpp was a huge mistake. it not only forces that biden administration to fix some of those issues, but you have these diplomatic push occurring,

efforts to control the south china sea and build military bases in the chinese, and more aggressive behavior. only a few days ago we had a chinese jet flight in front of australian aircraft. that's stuff caused a crash -- it could have caused a crash and that could have happened to any aircraft in the region. even if countries want to realign with china, they are more concerned by that aggressive behavior. especially with the news that china wants to build a military base in cambodia. these military affairs will be heavily on the minds of that region's countries. so i think it will be appetite continue cooperating with the u.s.. shery: is that appetite going to get stronger? we have seen what happens when countries like ukraine, with the russian invasion there. victor: while some opinions

differ, i absolutely think so, ukraine has brought to light the fact that the centrality of military power particularly with territorial disputes, and as i mentioned, the south china sea is full of them, there are several countries that disputed that region. russia is showing countries that it will use force. what will be thinking, how close is beijing to that? it will definitely be leading to concerns and i think it will encourage people to have arrangements and relationships with the united states. haidi: on ukraine, this has really turned into this grinding, brutal war. how has the nature of the war changed and how has the russian leadership changed its narratives? time is the factor here. doesn't favor either side --

that's it favor either side? victor: it absolutely has turned into a grind and it will stay that way for a long time. you are seeing some different signaling from the russian leadership. putin spoke to a group of students about russian history and peter the great, one of the most famous russian rulers, about he returned territory that was ancestral he rushes, back to russia. he is aligning himself with the supervision. it is no longer about ukraine and nazis and bio weapons, it is about returning ancestral land to russia. when putin said one of russia's greatest leaders took 20 years to win the war, he is saying, i will take however long it takes. so this could be a long and grinding war.

in terms of who that favors, it will come down to western stamina. how long does the west continue to support ukraine customer, are they willing to go to at last putin? that will be an interesting question to see. shery: it was really good to have you on, victor abramowicz. coming up next, is betting away question about whether the bank is a takeover target. we will discuss the lender's outlook next. this is bloomberg. ♪

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this is the planning effect. haidi: a quick check of the latest headlines. alibaba u.s. distant shares fell it percent after chinese regulators denied a report that they have decided to discussions to revive the ipo of jack ma's ant group. also earlier, bloomberg reported that authorities were said to clear a path for ant to go public, sending alibaba's shares higher. tesla tripled its production in may from the month before, producing more than 30 3000 cars at its shanghai plant.

tesla has gone to great lengths to keep its chinese factory running amid lockdowns, with staff working around-the-clock in a so-called closed-loop system. wells fargo shares have fallen under reports that it is the target of the investigation. it is being investigated over whether it conducted fake job interviews with female and minority candidates to satisfy diversity guidelines. it is the latest scandal to hit wells fargo, which is already operating under a federal reserve growth cap. >> credit suisse ceo thomas gottstein dismissed what he called a stupid question, over whether the bank is the target of a takeover bid from state street. this is the bank posted its latest profit warning. for more, let's welcome our next guest. the ceo is still holding out hope for a profitable second quarter, what did he have to say? >> that was today's headline after they delivered yet another profit warning yesterday. they are saying that the losses

have piled up this quarter. so it sounds like the ceo is still holding out hope. based on the information they gave us yesterday, it seems pretty grim over there. haidi: what are they focused on strategy-wise on the ipo? jennifer: we had a bloomberg news exclusive of them putting their brakes on plans to expand in china. they are going to focus on getting costs under control. there was a story earlier this week that they were thinking about layoffs again. this is just showing things up and taking the focus back to turning a profit. it is hard to do when two of your biggest businesses are so reliant on the markets. so i think you are seeing them trying to scramble and look for ways to grow from here.

shery: what about its regional performance, specifically in china? jennifer they had a very ambitious plan there and part of what is causing them to tap the brakes is not just the internal turmoil or the fact that they will be pouring resources to a place that is still largely under lockdown and has faced so much of its own economic troubles the last few quarters. that will be a big question that executives have to decide, is now the time to do this burger week without a -- do this, or do we wait and see if it gets better? i think a lot of this is just wait and see. haidi: our financial analyst jennifer sarandon with the latest on that story. a pretty dead and to the trading week, -- a pretty torrid end to the trading week.

the ecb going into a hawkish stance for the first time in a generation and that is also weighing on inflation expectations ahead of the u.s. cpi print. the nasdaq golden dragon china index fell 7%. watch for big reaction when it comes to alibaba after the ant ipo story was refuted. the currency reflecting the pullback of risk. coming up ecb is set to announce an end to large-scale asset purchases. nomura tells us how that could affect fx markets. and we will be talking with human rights watch. this is bloomberg.

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