vonnie: welcome to "bloomberg daybreak: asia." haidi: the top stories this hour, the boj reportedly planning to review policies from the past decade as officials meet this week under new governor ueda. europe subs beijing after the chinese investor to france questions the sovereignty of exit soviet states. the u.s. has reportedly asked south korea to urgent chip makes not to fill any market cap in china if beijing bans micron from selling their. let's look at the start of trading. there will be a holiday disruptions given that it will be a public holiday on tuesday in the australian market. this is what we are seeing as we set up to the cash trading options. futures are edging lower, dollar traders are looking mixed as well as we see potential movements when it comes to the key risk trade of the aussie dollar versus haven yen.

we have traders facing wages that potentially we do see a change governor ueda even though he has signaled consistency and coming in slow. when it comes to japan inflation as well as illiquidity of japan's bond market not helping. this is the picture as we get to the start of trading in the start of asia. we are seeing tepidness when it comes to risk appetite even though arts of the market are starting to see evaluations of the extreme as investors continue to bank on a slowdown from global central banks and their tightening moves. u.s. equity moves edging lower, the dollar trading mixed against most of his asian peers early. vonnie: it will be a huge week for anybody looking at japan, speculators getting ready to

take on the bank of japan as the new governor gears up for his first policy meeting this week. let's bring in kathleen hays joining us now from tokyo. broadly speaking, consensus wide, no policy change of any kind expected from ueda even as inflation numbers be forecast. there might possibly be an announcement of a review. tell us more. kathleen: the announcement review is interesting, because if you may recall fumio kishida said he thought it was time to review the boj policy coordinated with the government. when he took office, he was seen as an official opening the door to perhaps looking at where policy is going. once ueda and his name was brought up, the next thing we

heard from the government was along the lines of maybe we do not need to do a policy review just yet. the fact that now we are hearing a newspaper saying this is what they're going to be doing. they're not doing a review, table talk about it. moving very carefully, very slowly, not wanting to break too quickly from the path that governor kuroda was left saying, inflation may be above target but we do not think it will stay there. inflation has to stay sustainably above 2%. 10 months of looking at the headline or the court, which is headline minus fresh food, you are still above 2%, but the boj does not think it is sustainable because they see it driven by supply that is pushing up cost of imported goods, commodities, not demand.

not yet, even though waste negotiations came out with a good 3% plus average for larger companies in japan. the other issue is that tweaking yield curve control soon after the banking crisis, i think they are afraid there could be instability. it was a fed rate moves too aggressive too fast that help spur the svb crisis and spread into credit suisse and brought credit suisse down. keeping bond yields low for so long, cannot start reverberations that you cannot tell what they would be. what we will be looking for at the end of the week, at the end of the press conference questions that get to the issue of, well, it may be you are not living yet, but when are you going to move? bets are on that they can do something in june.

communication may very well be the most important part of this meeting that we get this week. haidi: exciting the boj meeting. kathleen hays there. turning to geopolitics, french president emmanuel macron's efforts to enlist china's efforts in brokering peace in ukraine it be unraveling after comments to the -- comments from the chinese ambassador in rage -- enraged others. this is an ambassador known for a strike in comments. i do we know whether these are his views or whether they are tacitly approved by beijing? >> that is the question. aca broke ambassador from the ministry of foreign affairs or is he parroting on those former soviet bloc

nations. latvia, lithuania, estonia, and to a certain degree at ukraine. when he essentially told a french television network that these exit soviet states do not have sovereign status as independent nations. that is an inflammatory comment coming from a country -- let's face it, china takes sovereign claims quite seriously. i am making a loose reference to taiwan. it has raised lots of concerns in these former soviet countries and also unravels not only macron's unilateral attempt to try to form a framework for peace talks between russia and ukraine that enraged fellow allies like the united states, at a time when, of course, beijing has this no limits partnership with moscow. so it is a convoluted and

complicated situation right now, and it goes back to your question. is this a rogue comment or is this a new position from beijing. let's face it, beijing back in 1991 recognize these former soviet blocs as nations, as independent. this would mark a new patient and beijing's viewing of these baltic states. let's bring up the fact macron's own foreign ministry said it read those comments from the chinese ambassador with dismay at that they are seeking clarification whether this is a new position from beijing toward those former soviet countries. vonnie: it is hard to do support the strengths of rhetoric and there was her story the biden administration is getting ready to prohibit american company's investment in chinese advanced technology. that has china talking of self-reliance and specifically xi jinping. >> they have been talking about

self-reliance for quite some time right now. they need to engage the private sector, a sector let's -- xi jinping as impressed with antimonopoly and regulatory action. he is talking up the private sector and state back to technology companies in light of the latest from washington. the biden administration preparing to have an executive order that would essentially ban american investment in core technology's intranet that have american managers in place and artificial intelligence, semiconductors, wanton computing. the biden working toward that order ahead of the g7 summit that will be held in japan. behind the scenes they are working to get support for that. this would have been xi jinping's first public

acknowledgment of that pressure being amped up from washington. he told a meeting to communist party officials that they do need to support the government, china needs to work to support the private sector to work with the economy to build out those court technologies and cracked the code was the terminology they said. stay tuned to this page. we will be watching this as china and the united states get bifurcated. vonnie: we certainly are, thank you. let's get to first word headlines. the philippine president says manila and beijing have agreed to establish more lines of communication to resolve conflict in the west philippine sea. his remark comes after held talks with the chinese foreign minister. chin said the two countries should work together to promote peace and asia. it is a sign beijing is looking

to chip away at watching to the much bigger sway. speaker kevin mccarthy says the house will pass is $1.5 trillion debt ceiling plan this week but refuses to say if he is already secure the 218 republican votes he needs. sources say mccarthy has not lined up enough votes but the effort is making progress. his proposal will stave off a debt default until march of next year and cream four point $5 trillion in spending over a decade. so nations have ramped up efforts to evacuate consular workers and expatriates from war-torn sudan. at the ok and u.s. militaries have managed to airlift their diplomats to safety, while other countries started to gain access to the airport. the world health organization says more than or 20 people have died and 3700 others have been hurt amidst intense fighting between sudan's army and a militia. nhk reports prime minister fumio kishida's party eked out winds

of four out of five elections on sunday. the democratic party cap to the three seats previously held of the five but also picked up a fourth. the victories will further fuse speculation kishida may opt for a national election after hosting the g7 summit. haidi: the new boj chief ueda will eat his first policy meeting later this week. we will be discussing the outlook with the former chief economist at the boj. bed, bath & beyond searches for a buyer after filing for bankruptcy with plans to shut down. we will get details ahead. this is bloomberg. ♪

vonnie: you were watching "bloomberg daybreak: asia." we had the look out for cpi bring threat asia on the industry rba expects a 1.8% quarter on quarter rise in cpi. a weaker reading could push the bank to keep its rates unchanged again. we will also get inflation data from tokyo and singapore.

on thursday, gdp figures are expected to confirm the u.s. economy is showing resilience at least in the first quarter of the year, even in the face of rate hikes and bank shots. we get first quarter growth figures from south korea. on friday, new boj governor ueda will deliver his first policy meeting as investors watch for any signs of tweaking or scrapping of the bank's yield control stimulus. other economic data to note our ppi numbers from japan, china was industrial profits and industrial production numbers from japan and south korea. haidi: our next guest expects asian central banks to respond to their own economic cycles and not have to follow the fed. joining us now is a senior economist for emerging asia. let me start up with japan, because that is a big focus when it comes to investors, and it is best intimate we see some speculators placing bets we will see adweek a policy from the new governor. does the fact we have seen elevated inflation readings, the

situation when it comes to the bond market really support that possibility? >> certainly, but it is too early. he just started the job. the government is doing what they came through fiscal policies to keep the lid on inflation. the pressure cooker is there. one of the silver linings we would say since the crisis in europe and the u.s. regarding banks and liquidity challenges is the fact that central banks and asia have a little more time. if they were under pressure before, he has a little more time now. that can be sent across asia, buying time to respond to their own economic cycle. the violent reaction we have had so far that required interventions from the central bank tells us he will use this time. haidi: let's take a look at south korea. there is a lot of downside

pressure particularly when it comes to the developing geopolitical story as well as the cyclical story when it comes to semi conductors. >> absolutely, i think korea has a lot of pressure cyclically and structurally. across asia traders are facing problems. south korea as in the first quarter of a double-digit decline in exports, and it is not the only one. it is exposed to the semi conductor cycle, and it is not just because prices have fallen due to the blood but also because of the fact that it is facing geopolitical pressures between the u.s. and china, rising protectionist policies, ambition to vertically integrate into china. if you look at the trade deficit in china, it is quite worrying. we should expect gdp to take a hit from weakening exports even though imports declined to bit less because the energy crisis is abating. it is leading to a trade

deficit. we have investment as a challenge. corporates are cutting capex, which is a silver lining. a supply and demand dynamics will recover, and we do not expect that until the second half. that is the case across asia and that you have the cyclical downturn of exports, and we are now building the stage, but the recovery is far away. we really need central banks to start focusing on growth rather than inflation. south korea is not only keeping rates on hold, very similar to the rest of the asian central banks after hiking 300 basis points. it also is focusing on support to strategic sectors, looking at longer-term challenges beyond the cyclical slowdown. prices are expected to recover toward the end of the year, but the challenge is still there,

which means it is doing everything it can through tax cuts, through building larger manufacturing and other subsidies responding to industrial policies from the u.s., the china ambition and ira. vonnie: how do you think about currency fluctuations in emerging asia given the possibility for so much volatility when it comes to central bank such as the one in japan or the united states making things more difficult for emerging asia? >> headline inflation has accelerated. core remained sticky. given that headline is driven by food prices, there is a lot of uncertainty in this area. china normalization story is about yield and seasonality. as a result of that, the consensus is that the dollar has peaked, the fed is likely to hike the last hike, 25 basis points in may. that gives a lot of room for

asian fx to do well. we still have a lot of uncertainty on inflation, which means people are still not clear on the path forward for the fed, whether or not it has any room to cut and whether or not and asia even when we are comfortable at no longer hiking rates, being able to have more room to hold, creating space to focus on economic conditions, inflation. we are not comfortable enough to start to have rate cuts. there is a lot of short-term volatility, but the longer term is clear that the dollar has peaked and we should expect the recovery particularly for fx that is taking a beating. reticular the korean won because of deterioration of trade, etc., and also its exposure to the dollar. vonnie: now you have some

concerns about china. obviously there is so much to be concerned about regarding china, but in a nutshell what takes priority for 2023 at least? >> for china what is very clear is a service sector recovery is very strong, particularly in the luxury sector, and you have this pent up demand. the supply side remains weak, and that is in line with the global trade cycle. the global trade cycle is on the downturn, so what is clear for the rest of asia is we would hope for the china recovery to go beyond services and beyond just domestic services into consumption that would help the rest of the region, would lift imports, not just fruits but durables. for services now, normalization of domestic tourism is very strong, but external tourism is very weak because of flight

capacity, backlogs of visas and passports and so on. the normalization will accelerate likely in q3, q4, but we are still in the stage of building up a wrench in recovery , and i think that will lift the rest of asia, particularly countries very exposed like thailand much more in the second half than the first half, because it has been rather underwhelming. vonnie: we will definitely be speaking with you before then. plenty more to come on "bloomberg daybreak: asia." this is bloomberg. ♪

vonnie: vonnie: turning now to the latest on bed, bath & beyond , the struggling retailer as filed for chapter 11 bankruptcy clearing the way for her to shut

down hundreds of stores and lay off thousands of staff. su keenan joins us with more. the company is still searching for a buyer. su: it's as it may pivot away from closures if a buyer emerges, but after months of struggling to review options to restructure debt and expressing doubts about its ability to keep operating, it pulled the trigger, filed for chapter 11 bankruptcy. this allows it to liquidate hundreds of locations, 120 buy buy baby locations. at the company employs 13,000 and among its initial request it once debate $76 million in wages and benefits. the signs are already out in stores. or document say the timing of the wind out is going to be swift.

all sales of remaining brick-and-mortar are said to be complete, and properties vacated by the end of june. customers have been told in email coupons will not be accepted after this week, and for decades this was a big box retailer that was the place to go to buy baby gives, a wedding gift or an outfit. unless a buyer emerges, and it has pulled off a few longshots, it all comes to an end june 30. haidi: there has been a series of come back at times. what went wrong? su: it failed to adjust to changing customer habits, it took on an enormous amount of debt and blew a couple of turnarounds and lifelines. hudson bay through it a last-minute lifeline, a deal that could have given it $1 billion under certain conditions, it failed to meet

stock-price minimums. that put the stock in a downward spiral. shares lost 86% from early february when hudson first discussed a deal. bed, bath & beyond was founded in the early 1970's, it grew into the biggest chains nationwide, and many believe this is not a case of the demised in the face of the internet, but there were a series of very bad managerial decisions decade after decade. haidi: su keenan there. one trader is not convinced the current period of market calm will last. we will be analyzing those concerns next.

we might have dollar loosening

status but if we do, it will be the least of our problems. if the dollar loses its status, it is because the united states is no longer strong in the world. >> that was the former treasury, secretary lauren. let's look at how we are trending across the fx world here. the key gauge of haven demand being the end. i would say it has been fairly well flagged. we are not expecting any change or tweak.

the aussie is a little bit low. the trading range is holding pretty fast. leverage traders have been upping the net shortage of the aussie. we will be watching for inflation. we get these geopolitical tensions continuing to complicate the outlook. what are you washing? >> the rcn is a key one. you mentioned the cpi. what is going on with china. the real impact is the aussie is sensitive to growth.

also very sensitive to that risk sentiment. it has regained his role as a haven mid risk. traders are getting very nervous. we are going in here. that is what a lot of the focus will be. we have the complicate a factor of what is going on with the doj. that could mean they're going to

take a very long time. it could signal they're looking to go beyond corona. maybe they will look at it and say it is appropriate now. a lot to go into the mix. the simplest way to get a read on how all of these things are going to feed into the broader space, is it up? it could be time to pull your head in. >> the index is backed onto levels we have seen most of last year. is that to stay nor is that more

volatility? >> this week, we are likely to continue to ease down on that volatility front. there is not too much that can come into the space. the big test will be next week, not just the fed meeting but also the end of the jobs data. you will either reinforce whatever the fed is signaling or it could lead to a shift in how people are expecting the fed to go. in many ways, it is a logical time for them to ease down. we have either that final hike or just one more. also looking at how strong the pushback from the fed is.

that is the battle that is really living large now. they are getting close to at least being able to pause and consider what the long-term impact is. even as markets keep on positioning for them. not just to cut prices here but to cut them back down to below where they are now. that will be attesting narrative. this is mostly around the edges here. >> lots of action this week. let's get you the first would headlines this hour we are watching. european nations have reacted with fury. china's ambassador to france says some next -- x soviet

countries don't have this here. they can summon their top chinese diplomats to explain. the comments affect emmanuel macron's push. she jinping has reportedly encouraged companies to break technological barriers as they try to mobilize the sector. they declared that innovation led by companies is key to realizing high-level technology self-reliance. the key lies in removing institutional barriers. the u.s. supreme court blocked restrictions on a widely used abortion pill from taking effect, keeping the drug fully available while a legal fight pushes forward. they were sent to take effect at the end of friday. they make it impossible to

legally sell the pill across state lines in the near term. barry humphries's internationally renowned and has died at the age of 89. humphries had been suffering from complications following a hip replacement surgery. he said he was completely himself. those were your first word headlines. course we're looking ahead to a busy week. they will help investors gain a better outlook on chemicals industries and how these sectors are impacted by the recent u.s. climate legislation. analysts expect the biggest drop since 2009.

european bank earnings will be another highlight, they will look at how it affected the region's banking center. regional banks in the u.s. remained at key risk to investors. we spoke to huntington banks who said there be more judicious with their own portfolio. >> we think there has been a bit of a divergence across the group. by and large, we saw original bank deposits. what are you going to have to do to keep customers and attract more? >> they are really loyal and sticky relationships that are founded at fairplay. we have been growing our primary

bank household for the last several quarters. it all comes back in the end. >> i am sure they would have said the same thing. they were sorely disappointed. how fast can you do that? >> we will increase deposits over time. one of the key statistics for huntington as a differentiator is the insured deposits. i understand that was less than 10%. that is the fundamental driver of stability. >> are you being more conservative with your portfolio?

we grew in the first quarter just around 8%. >> that was that. coming up, japan's ruling party largely prevails in the recently concluded by elections. this is bloomberg. he's

class politics and focus after the ruling party held on sunday. japanese markets will open at the top of the next hour. let's look at where things stand

right now. the yen at 133 .97. nikkei futures are pointing to the u.s. future. let's get more on the japan by election results here. it was actually a little bit of a surprise. >> we were not really sure how they would take you three they already had before the election. this is the speculation we have been saying for months now.

in japan, it is a very important event for domestic politics. that could offer him another boost. >> how does it play into central banking and market moves? >> it does not make a big difference. the support is relatively strong. that could put pressure on the central bank to not do anything right now. it would not be good for them to cause any kind of pain in the markets. >> thank you so much.

the bank of japan -- with inflation continuing to outpace expectations, extras will be added. let's cross over to tokyo now where kathleen hayes is standing by with kathleen. what a perfect time to have you here with us. this is kind of an historic doj meeting. what do you expect him to do or not do? what is important for you about this meeting? >> i expected to be relax.

it is now evident that the world will throw down significantly. this is a good chance for the doj to take the first step in policy change. i think the timing could be here. i think it is more likely the change will come in a june meeting or later. >> i think it is interesting you have the door open. they are saying they are going to start talking about some kind of policy review.

why would they start a policy review now? does that help open the door to getting rid of this at the next meeting? >> the new governor hinted that for the policy review. he said that kind of review should look back not only after these 10 years but 25 years. not only monetary policy with structural matters. what is the fundamental problem?

japan is suffering from low inflation and logos. this could take more time to finish. it is not directly related to that announcement. i think this is the best opportunity for the new governor to establish close communications with the market and the public. this is the first contact officially with the market. i think the governor does not need a stunning debut. >> we love a stunning debut.

i am keen to get your views on this level of inflation. are you comfortable with the idea that even underlying inflation is adding to arise now? >> it has been lowered because of government policy. they are excluding energy prices. there is so much cost pushing behavior.

the inflation rates will go down below 2% toward the end of this year. piaget expects inflation will come back in 2025. here is the next report. >> let's say we had a new target of grading the end to his most preferred list. how would that complicate things for the doj? -- boj?

what is your view as to where the yen will go? >> i think the doj does not directly respond to the market there. i think it really doesn't fundamentally matter. there is no rush.

this area is a good place for the doj to change. >> why get rid of why cc? -- ycc? >> the inflation will go back again in 2025. it will be by accelerating the wage growth. >> thank you, we hope you come back with us again. sending it back to you, i think that is very fascinating. he says he thinks there is a chance for a meeting on yield curve control. >> kathleen hayes in tokyo. we have much more to come on

daybreak: asia. this is bloomberg. his ignorant -- this is bloomberg. ♪

>> look at some of the stocks we are watching. we are about five minutes away from the start of trading.

also seeing iron or down by just about 20%. some bearishness over that market. also watching shares of cosmetics after proctor and gamble's has its skincare business is traveling here. coming up in the next hour of daybreak, -- we will speak about their decision to raise the gdp forecast. the market open is next. this is bloomberg. ♪

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>> this is daybreak: asia.

we are counting down to the major market opens. it will be a big week in terms of economic data here in the u.s., also across asia. a lot of data coming from industrial production numbers. all sorts of everything and then we get the doj meeting at the end of the meeting before the epilepsy next week. >> a big couple of weeks. the signaling has been steady as she goes for the first policy decision. we are watching some of these risk gauges like the aussie dollar as haven demand continues to flow back in. what's a quick look at where we are standing in the market open wise as we open across asia, japan down about a third of 1%. futures have been pointing to a higher open.

we got there a little bit ahead of the open. about .2%. also, the elections that took place with an extra seat and back. the bonds, not too much movement. in terms of south korea, down about a quarter of a percent. no huge moves on the indices yet. the korean one is actually weaker by about .3%. >> look at what we are watching in australia and new zealand. the range of the past couple of months had been holding. we see them at internet shorts to the aussie.

this could have been at the start of this year. washing the aussie dollar trade. it gives the be is a bit of a downside. about a quarter of 1%. i am watching for this in particular, the iron were minors. we see iron ore down. there is a potential oversupply from the major producers globally added to that outlook. it is said to be a pretty volatile week when it comes to these markets as well. we have a plethora of data. switching out the board. take a look at treasuries. when it comes to expectations,

it is still that tug-of-war. we had a slew of fed speak going into next week. we are waiting for that column after the next big thing out of the fed. >> we have some interesting weeks ahead of us. let's bring in our next guest. he reduced his position on china as the reopening trade has come through. there is obviously some reasons why we are skeptical about the continued strength out of china. we keep getting data points that suggest optimism. the latest thing are the travel numbers, that they are not as bad as we might have heard. why reduce this? >> good morning.

we fully participated in trade that started from hollowing out last year. i think we are definitely into the second stage. if you compare it to other reopening stories around the world, they deafly started to pick up in the second stage. that is to be expected. one part of the reopening of china we are concerned with his geopolitical risk. there are issues around semiconductors. we think issues like this will find this much -- it will make it much harder to be overrated on china. >> all these comments we are hearing that are prickly on both sides from america or china's ambassadors, that that will

spill over into something real? >> that is definitely the risk. you have to expect there is some bad general communication going on. we don't just take what is in the public at face value. there are some very real issues. this is the acceptable part of the resolution. these are very big issues for us. we think it is a reason not to be overweight. >> tell us about some of those interesting stories. you can't get away from that either. >> a few things, we like europe better than the u.s.. we think it has become more likely that europe -- they will

have some attractively valued markets. within the u.s., there was obviously lots of interesting stories there. the most important thing is the end of rate hikes. we are very close to that. we don't expect we are anywhere near cuts. we think this is mostly rate cuts out of the u.s.. inflation is proving to be very sticky. even what you mentioned around oil demand from china, this is a great driver. we think there are no rate cuts this year. we think at this time in the rate hike cycle, you would see growth underperform and value styles outperform. we are getting the opposite of that with tech being strong so far.

we are very interested in what is happening over the course of this week. >> what will you want to see to justify? do you think it is overdone or do you think there is still room in a balanced portfolio if you look beyond some of these big tech earnings? quick some of these big tech names are going to be core holdings but we think there's a lot built into the price. you have seen them cutting headcount dramatically. that'll have a short-term positive impact. it really is the medium-term demand story. we are looking for leads this week. within the cloud has been a big driver. there is a potential weakness in demand as the economy slows

down, that is what the fed is trying to do. we are a little worried around valuations. >> if you take a look at earnings, about 20% may have reported this better than estimates. >> is this because of pricing when it comes to expectations? >> if you look at this report, the large portion is the banks. some things happen with banks. expectations were reduced. there is a bifurcation between the large banks, more highly regulated, larger deposit base, growing share deposits were already happening and it has accelerated. some of the smaller names failed. get in context of your question,

it is a special situation around financials. we don't think we would take that as any sort of indicator of what is about to happen. >> great context as always. always great to chat with you karen. let's get you caught up with some of the first word headlines we are fumbling with this hour. the house passes a one $.5 trillion debt sources tell us they have not lined up enough votes. they are making progress. his proposal was dave off until march of next year. the philippine president says manila and beijing have agreed to establish more lines of communication in the west philippine sea. this remark comes after china's

foreign minister said the two countries should work together at least in asia. european nations have reacted with fury to the chinese questioning the independence of former soviet states. china's ambassador to france said some companies don't have affected status under international law. they will summoned top chinese diplomats to explain emmanuel macron's push to get chinese help on ending the war. several nations have wrapped up to wrap up ex-pats. they have managed to airlift diplomats to safety while other countries started to gain access to the airport. more than 420 people have died and at least 3700 others have

been hurt. intense fighting between sedans army and the support forces militia. those are your first word headlines. kueng still had, raising the forecast for chinese economic growth. and up next, the doj reportedly taking over the last decade. this is bloomberg. ♪ and it's easier than ever to■ get your projects done right. inside, outside, big or small, angi helps you find the right so for whatever you need done. with angi, you can connect with and see ratings and reviews. just search or scroll to see upf on hundreds of projects. and when you book and pay throug you're covered by our happiness

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>> it is more evident that the economy will slow down significantly. right now, there is this pressure for interest rates to rise. this is a good chance for it bearded to take the first step of its policy change. it could be this april. i think it is more likely that change will come in a june meeting related. like the farm bureau j chief economist speaking to us earlier. speculators are not getting me to take on the bank of japan.

let's bring in kathleen hayes who is joining us from tokyo ahead of that meeting. it has been pretty well signaled it will be steady as she goes. a lot of inflation numbers -- you can't really blame part of the market for helping. even our previous guests hope that the policy tweaking is sooner than we thought. >> they said it is a chance that we -- there is a chance you could come today. we are overseeing the first meeting, they are less likely -- maybe he doesn't want to come in with a big surprise like maybe governor corroded did 10 years ago when he first took over at the b a j but he says this is his opportunity to talk to the market and talk to the public for the first time. i think that is a very important part for what is or is going to

happen. -- is or isn't going to happen. yes, it is high. it is not going to stay there right away. that is also what they told us. he does think that it is going up but it is not demand driven yet. it is supply driven. between 25 it will be higher. he says tweaking it and maybe even getting rid of it could happen long before the beer j gets to 2% inflation. this is raising the negative rate of zero, doing something for policy change. as governor corroded may have said himself. when he does do yield curve control change, this is about

yields, this is not necessarily about change in monetary policy. let's look at what inflation is doing. well above 2%, that is what we are seeing. the headline, you are over here to 3.2%. the core cpi takes out fresh food prices and rose it down to 3.1. it looks like you to stay pretty high. the forecast is the bank of japan want do anything. but we are going to hear is that they have started a long-term look at the forces driving the japanese economy, driving inflation. the structural issues still down a bit. they are looking at 20 or 30 years to see what has been done.

a very interesting conversation today. we will have more coming later in the show. they are building up to decision. there could be some very strong communication. we are looking at what this could mean for that april and june meeting. >> thank you, kathleen. that was kathleen hayes in tokyo. this may prove crucial for the aussie dollar as investors watch the beer j meeting and inflation numbers. let's bring in our strategist, david finnerty. it's going how investors are positioned in this trade that does describe sentiment more volatility -- volatility --

>> at the moment, the markets are thinking risk sentiment will deteriorate. they are turning very bearish on the aussie. the idea that the rba has changed its rates. that does signaled that inflation is out of control. that commits the aussie to the upside. whether or not they do it this week, if they are just signaling the expectations down the line that the policy would be amended , the risks are traders are saying they are basically selling into 89-87. >> is it hard to see the upside argument at the moment?

>> at the moment, the aussie gets the u.s. dollar. commodity prices are going higher. you would want the rba to sound more hawkish. maybe a chance of a little rate hike. they are a lot stronger-than-expected. i think the fed will come out and say we are raising rates. that will push back against market expectations. that will help push this slightly higher in the near term. >> fx and rate strategists. a look at that.

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turning to the latest, the struggling retailer is filed for chapter 11 bankruptcy. su keenan joins us now. >> they say they may pivot away. if a buyer should suddenly emerge. this is after months, this is while signaling it wasn't quiet

sure it would be able to continue operating. on sunday in new jersey, it pulled the trigger. we are talking 300 60 bed, bath & beyond stores. 120 buy buy baby stores and that puts thousands of people out of work. the timing of the wind will be swift. you can already see the signs. these are said to be complete and properties vacant by the end of june. they are closing up really quick. customers were told that coupons will not be accepted after this week. for decades, this was a big box retailer, setting up the college

door. outfitting a new home unless a buyer emerges and this is a company that is pulled off -- has pulled off a few longshots in the past. it all comes to an end on june 30. >> there were a series of comeback attempt. >> slowly and then all at once as they say. they failed to pick up on changes in customer habits. they had a few last-minute lifelines and turnarounds that fell out of their hands. they failed to meet stock-price minimums. that fell apart. shares last about 86%.

bed, bath & beyond was founded in early 1970's. it has been around for a while. many believe this is not a case of a big brick-and-mortar losing out to the internet but they say over the decades, they have 50,000 creditors. a total debt of more than 5 million last november. bny mellon looks like it is on the hook for 1.1 a billion. stay tuned. we might be able to find a buyer. not looking good.

>> nbc universal is -- it mutually agreed they would part effective neatly. he has been the coo of nbc universal since 2020. he works for comcast almost two decades. the new owner of silicon valley bank has told financial times that customers are still withdrawing deposits. the citizens agreed to by the collapsed lender. he also attributed the withdrawals to pent up demand -- the bank reported a 30% rise. they narrowly beat out analyst

estimates. they rose about 23 from over a year ago. this is bloomberg. ♪ as a business owner, your bottom line is always top of mind. so start saving by switching to the mobile service designed for small business: comcast business mobile. flexible data plans mean you can get unlimited data or pay by the gig. all on the most reliable 5g network,

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that means there are better yields to be had for safety. is it because people are coming back to u.s. treasuries the difference? >> the strong dollar makes a difference for emerging markets. >> i don't believe the dollar can we can significantly. i think we are in for a rocky ride. >> some of our guest sharing their views on the dollar there. investors see the dollar sliding even further.

more than half of those polled also site underpricing the fed is the factor that would matter the most. it will most likely deliver is first rate cut since 2024. >> so much of this will play out in the fx markets. in the direction of the dollar as well. what we are seeing is an increase into the japanese yen. this is the first decision under the new beer j governor. there is still an outsized possibility. we are seeing some of those

markets to that. the aussie dollar is seeing a little bit of a downside at the moment. certainly when it comes to the growth outlook, we are seeing a downside of almost 20% there. the dollar yen holding pretty steady, just shy of about the 134 level. we are seeing increasing geopolitical concerns and we still see unevenness when it comes to this. and of course, earnings are top of mind. age is earnings season underway. there is a downward trend in revisions. sluggish demand could weigh on some tech earnings. let's start off with tech. one of the expectations in this part of the world?

they will be reporting on thursday. they seem to have a slight uptick as well. this is the takeaway we're looking for. they are looking for a pretty major loss. there will be an analyst call at that time as well. we will see what they think about this. >> what about china?

the preliminary net income has already beaten expectations. in china this week, be id is reporting on thursday. sales are about 80% of year-over-year. we will be watching to see any comments about how the tesla price war is going to affect this. >> a big week for japan. >> that is right. here from tokyo, we are excited to kickoff the season this

afternoon. for the fourth quarter, there has been a restructuring. analyst saying a charge in the fourth quarter belongs here. they could split them into a quarterly loss. there is a new year, starting the fiscal year. we will see analysts have been saying that. this will be reflecting how far they are going. there was this ongoing saga of who will be the successor as five evp's are putting into place. that process will supposedly finish next may. we will see who will be a front runner.

also, oak ridges, we have japan reporting on thursday. job cuts were coming to an end. that report after the bell, 3:00 p.m.. this as the cfo tells us how things are going. >> that was garrett allen with a look at some of the earnings expected out of japan. results so far are strong enough that they wonder about corporate america's performance. some of this was a bit skewed by the banks. it there pricing going on? >> that is a big point to bring up. if you look at the bags for example, let's read it in terms of what is prized to the upside

or downside. i think they have not been encouraging enough. i am looking at other sectors here as well. i hundred percent of those companies when you look at the bank, that is closer. it is also important that we are only about 20% into the earnings season so far. the sample size is still very small. that begs the question about whether or not the bar has been set too low. the timing of when the earnings recession is happening -- is it too high? they think the earnings recession might have been taken

silently if you strip out energy. it might have been taking place over the last few quarters. analysts ponder the question if we have fallen enough. j.p. morgan will give you a sense of $200 a pop. has that already been priced? this is where we landed 12 months from now. by the end of the week, we will have a better indication of this. we have about 180 companies. that takes us about 50% of the way by friday. price hasn't really gone anywhere. hedging that shorts on the s&p, the highest level going back. about 12 years when you look at futures.

>> we need firm answers on many of those questions. thank you for that. that was david in glass. let's get to your first word headlines now. they eat that wins in four or five japanese by elections. they picked up a fourth. the victories will further fuel x -- expectations that they make up for a national election of twisting the g7 summit in may. the u.s. supreme court blocked a texas judge's restrictions on why -- a widely used abortion pill from taking effect. keeping the drug fully available as the legal fight goes forward. they argued the restrictions would have created regulatory chaos and they would have made it possible over the near term.

americans are salivating over the prospect of a rematch -- they are sour on biden trump rematch. there are some that say biden should not seek reelection and 60% say trump should bow out of the race. barry humphries internationally renowned for his stage persona has died at the age of 89 after a career spending -- spanning seven decades. he had been suffering from complications following a hip replacement surgery. his family said he was completely himself to the very end. never losing his valiant mind, unique wit and generosity. >> turned to geopolitics now. suffering a blow after former

soviet bloc nations. this is an ambassador we know is well known for making strident remarks. this is of you being held by beijing. >> that is exactly right. commas that suggested there was a question about the independence of those soviet block states that have been formally recognized by china for multiple decades have really set off a list of questions i think that beijing will be looking to answer very quickly and there may be some opportunities starting today about whether or not those clamp -- those comments were one person's misguided remarks or if it represents some form of policy shift in some way but the biggest questions here are abouy

brokering some sort of ukraine deal. pain has been trying to put forward himself as a broker for that. macron has sought this very heavily. neck road somebody who has been big on trying to to keep diplomacy even as people believe diplomacy is over. he was unsuccessful and has been trying to get china more involved. over the objections of some of his allies. this has been a setback there as well. this will be a pretty big setback for china on the european relations front. it was stiff blowback including the baltic states trying to get

them to explain the remarks about what was going on there. there was already layered on top of some deep suspicion about exactly who's side china's on. if they are firmly on russia's side or if they are a neutral arbiter. there have been questions about where china lands on that space. i think there is a lot of questions right now and a lot of blowback about the french broadcaster that may be starting to get cleared up this week. i certainly think comments like that do not go quietly into that good night. there may be some reverberations hanging around for quiet while across all those fronts. >> does china want to rule? >> you have certainly see -- seen china try to increase its diplomatic presence outside of its own shores. you see them getting very involved between iran and saudi

arabia, hoping to broker some easing there and she's in pain has had those outreaches to moscow there have been increasing ideas that china is going to be able to possibly play some form of a role here and i think you see an increase by china at least an african and other places of trying to be a bigger presence on the world stage in terms of some of these ongoing issues. this is going to be a apposite point. some of this on the european side, it could be a setback, a large setback. i think a lot of that is how aging goes and addresses the situation right now in this week and how it goes and cleaned that up. no one actor on the world stage

at that level walks through in some sort of blameless kind of condition. there are always situations where if they are going to act in that sort of capacity on a major global level, somebody says something they shouldn't say, whatever it might be, part of how you get to that level and stay at that level is how you come back from that. this will be a test for beijing right now. >> thank you for that breaking news, derek will back in singapore. next we are joined by aurora. this is bloomberg. ♪

reason the forecast for china's economic growth this year. stronger than recovery -- stronger recovery than expected. expanding it at 5.9% up from early estimates. you can take a look at the wide range we have had a number of upside revised forecast including the likes of j.p. morgan and ups. they are on the higher end at 6.4%. hbc on the lower end.

expect the gdp growth to come in at 5.6%. the chief china economist sitting in the middle of the path there. so much of this enthusiasm has been based on the recovery, the reopening followed by the rebound. if you're looking at revenge consumption, isn't the problem that a national reopening bob tends to fade? >> yes. so far, it has been quiet decent, quiet strong. for the second quarter, we expect strong, pent-up demand. we believe part of the consumption demand may not be

sustainable. >> it -- it really is a consumption story. if you look at indicators looking at industrial production and investment efforts, what does that tell you about the underlying weakness and structural weakness in the economy? >> that is true. we are being quiet cautious about gross recovery this year. as i mentioned it before, we have had a sweet spot for consumption demand while the majority of the economy consumption is something else, we are especially cautious about property markets in the service sector links to the markets. we have seen some in february

and march. maybe they will further moderate in the coming months. >> with the chinese government have to do something to continue to do boost -- to continue to boost consumption further out the year? >> i believe there is not much they can do to directly stimulate consumption. they had done cried a lot over the past couple of months. going forward, i think we will have to address some other issues. more important, it is about confidence. confidence about the own private sector. they need to convince

international companies not to leave china. in this regard i believe they can help support china's consumption. it is yet to be fully restored after covid zero. i wanted to get more detail when it comes to the recovery. does the bottoming out of prices suggest they are on the way to recovery? >> i don't think so. this is only part of the necessary conditions and we have to recognize we have some pent-up demand for markets over those second-tier cities. this is not easy for china's people to just buy homes in the lockdown.

we need to see that china's population is declining. the declining population -- we have also had a lot of this demand in 2018 and 2019 because of the massive stimulus. while i have seen people's expectation about home price has also been shared, for the first time, they have seen that home price could decline. it is not necessary -- necessarily a good way to make an investment. there is a bit more of a reason over the past two years. this as property developers have been in financial distress and i think it takes more time for them and they may not recover at all. this puts a lot of this at the supply side.

>> thank you so much. tim lou, the chief china economist, plenty more to come on daybreak: asia. this is bloomberg.

>> we are hearing from the japanese prime minister, they are speaking after those election results that show his party actually taking an extra seat. he says he is not thinking of

calling an early election. so far he says he will not do that. >> it is a big week when it comes to japan with that first bank of japan policy meeting. there is a political element of that as well. also, a big theme for markets at the moment is how quantities are performing. we are seeing part of it of downside trading as well. some pretty steep losses when it comes to all of this. this is bloomberg. ♪

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